1.

Design can provide a competitive edge by

a. bringing products to market quickly.
b. doing an even better job of satisfying customers.
c. being easier to manufacture, use and repair.
d. All these answer choices are correct.

d. All these answer choices are correct.

2. Which of the following is not a characteristic of an effective product design process?

a. matches product characteristics with customer requirements
b. maximizes the revisions necessary to make a design workable
c. ensures that customer requirements are met in the least costly and simplest manner
d. reduces the time required to design a new product or service

b. maximizes the revisions necessary to make a design workable

3. All of the following are characteristics of an effective design process except

a. increasing the design time for new products and services.
b. meeting customer requirements in the least costly manner.
c. matching product or service characteristics with customer requirements.
d. minimizing the number of revisions needed to make the design workable. a.
increasing the design time for new products and services.
4. Product design begins with
a. a feasibility study.
b. a form design.
c. understanding the customer and identifying customer needs.
d. pilot runs and final tests. c. understanding the customer and identifying customer needs.
5. If a firm's design process is too lengthy
a. a competitor may capture market share by being first to market.
b. a competitor may lose market share by being first to market.
c. a competitor may decide not to enter the market.
d. None of these answers is correct. a. a competitor may capture market share by being first
to market.
6. Carefully dismantling and inspecting a competitor's product to look for design features that
can be incorporated into your own product is known as
a. concurrent design.
b. design for manufacturability.
c. benchmarking.
d. reverse engineering. d. reverse engineering.
7. A feasibility study consists of all the following except
a. a market analysis.
b. an economic analysis.
c. a technical and strategic analysis.
d. a concurrent analysis. d. a concurrent analysis.
8. ____________________ describe(s) what the product should do to satisfy customer needs.
a. Performance specifications
b. Benchmarks
c. Perceptual maps
d. Reverse engineering a. Performance specifications
9. Creating a preliminary design that can be quickly tested and then either discarded or
further refined is referred to as
a. Benchmarking.
b. rapid prototyping.
c. concurrent design.
d. perceptual mapping. b. rapid prototyping.
10. The probability that a product will perform its intended function for a specified length of
time under normal conditions is called
a. benchmarking.
b. perceptual mapping.
c. Maintainability.
d. Reliability. d. Reliability.
11. Which of the following is a quantitative measure of reliability?
a. reliability bar
b. maintainability
c. mean time between failures (MTBF)
d. mean time to repair (MTTR) c. mean time between failures (MTBF)
12. All of the following can improve a product's reliability except
a. simplifying product design.
b. improving individual component reliability.
c. changing the product warranty.
d. adding redundant components.. c. changing the product warranty.
13. Combining standardized building blocks in different ways to create unique finished
products is known as
a. rapid prototyping.
b. robust design.
c. modular design.
d. concurrent design. c. modular design.
14. A company produces a product consisting of two components arranged as follows:
0.95 ------------ 0.93
If both components must function for the product to function, then the product's overall
reliability is
a. 0.950
b. 0.940
c. 0.930
d. 0.884 d. 0.884
15. A company produces a product consisting of two components arranged as follows:

Both components must function for the product to function. To achieve an overall reliability
of at least 0.95 without changing the reliability of the first component, the reliability of the
second component would need to be
0.97 ---------------------- 0.90
a. at least 0.925 .
b. at least 0.95.
c. at least 0.97.
d. at least 0.98. d. at least 0.98.
16. A company produces a product consisting of two components arranged as follows:
R1 ----------- R2

If both components must function for the product to function, then the two components
would need individual reliabilities of _______ to achieve an overall reliability of 0.90.
a. R1 = 0.90 and R2 = 0.90
b. R1 = 0.95 and R2 = 0.95
c. R1 = 0.80 and R2 = 0.80
d. R1 = 0.85 and R2 = 0.85 b. R1 = 0.95 and R2 = 0.95
17. A product consists of three components arranged as follows:

R1= 0.95 ------- R2 = 0.90 -------- R3 = 0.95

If all three components must function for the product to function, then the product's overall
reliability is approximately
a. 0.812.
b. 0.90.
c. 0.933.
d. 0.95. a. 0.812.
18. The overall reliability of the following system is

0.90
|
0.95 - 0.95 - 0.95

a. greater than 1.00.

b. 0.95.
c. 0.90.
d. 0.898. d. 0.898.

20. The overall reliability of the following system is

0.85 0.89
||
0.90 - 0.94 - 0.93

a. 0.787.
b. 0.85.
c. 0.89.
d. 0.919.
Ans: D d. 0.919.
22. If a product fails 10 times in 500 hours of operation, then its mean time between failures
(MTBF) is
a. 0.02 hour.
b. 0.10 hour.
c. 20 hours.
d. 50 hours. d. 50 hours.
23. If a piece of equipment has a mean time between failures (MTBF) of 500 hours with a
mean time to repair (MTTR) of 10 hours, then its uptime or average availability would be
a. 0.020 or 2.00%
b. 0.980 or 98.00%
c. 0.500 or 50.00%
d. 1.000 or 100.00% b. 0.980 or 98.00%
24. The system availability for a system with a mean time between failures (MTBF) of 1000
hours and a mean time to repair (MTTR) of 50 hours would be
a. 100.00%
b. 97.50%
c. 95.24%
d. 4.76% c. 95.24%
25. Which of the following will not improve design for manufacture and assembly?
a. minimizing the number of parts and subassemblies
b. using standard parts when possible
c. designing parts for limited, unique uses
d. designing parts for many, varied uses c. designing parts for limited, unique uses
26. _____________________ involves taking into account the capabilities at each level of
the supply chain when designing a product.
a. Design for supplier
b. Design for manufacturer
c. Design for supply chain
d. Design for competitor c. Design for supply chain
27. Functional design includes all the following except
a. reliability.
b. usability.
c. form design.
d. maintainability. c. form design.
28. Simultaneously designing new products and the processes to produce them is known as
a. concurrent design.
b. functional design.
c. modular design.
d. standard design. a. concurrent design.
29. ____________________ is a software system that facilitates collaborative design and
development among trading partners.
a. Computer aided design
b. Collaborative product design
c. Computer aided engineering
d. None of these answer choices is correct. b. Collaborative product design
30. ____________________ is a software system that assists in the creation, modification
and analysis of design.
a. Computer aided design
b. Collaborative product design
c. Computer aided engineering
d. None of these answer choices is correct. a. Computer aided design
31. ____________________ is a software system that retrieves the description and geometry
of a design from a database, and tests and analyzes that design on a computer screen.
a. Computer aided design
b. Collaborative product design
c. Computer aided engineering
d. None of these answer choices is correct. c. Computer aided engineering
32. ____________________ is a software system that stores, retrieves and updates design
data through the lifecycle of a product.
a. Computer aided design
b. Collaborative product design
c. Computer aided engineering
d. None of these answer choices is correct. d. None of these answer choices is correct.
33. Product lifecycle management is a software system that
a. facilitates collaborative design and development among trading partners.
b. stores, retrieves and updates design data through the lifecycle of a product.
c. retrieves the description and geometry of a design from a database, and tests and analyzes
that design on a computer screen.
d. assists in the creation, modification and analysis of design. b. stores, retrieves and
updates design data through the lifecycle of a product.
34. Failure mode and effects analysis (FMEA) is
a. a software systems that uses computer graphics to assist in designing products.
b. a systematic approach to analyzing the causes and effects of product failures.
c. a visual method for analyzing the interrelationships among failures.
d. a structured process that translates the voice of the customer into technical design
requirements. b. a systematic approach to analyzing the causes and effects of product
failures.
35. Fault tree analysis (FTA) is
a. a software systems that uses computer graphics to assist in designing products.
b. a systematic approach to analyzing the causes and effects of product failures.
c. a visual method for analyzing the interrelationships among failures.
d. a structured process that translates the voice of the customer into technical design
requirements. c. a visual method for analyzing the interrelationships among failures.
36. __________________________is a procedure, used by multifunction design teams, to
eliminate unnecessary features and functions from a product design.
a. Failure mode and effects analysis
b. Value analysis
c. Fault tree analysis
d. All of these answer choices is correct. b. Value analysis
37. Which of the following techniques would most likely be used to systematically analyze
product failures?
a. concurrent design
b. quality function deployment
c. failure mode and effects analysis
d. value analysis c. failure mode and effects analysis
38. The ability to meet present needs without compromising those of future generations is a
concept in product design known as
a. reusability.
b. maintainability.
c. reliability.
d. sustainability. d. sustainability.
39. All of the following are principles of green product design except
a) use new materials.
b) use less materials.
c) involve the entire supply chain.
d) change the paradigm of design. a) use new materials.
40. ___________________ is a concept where companies are held responsible for their
product even after its useful life.
a. Design for disposal or reuse
b. Sustainability
c. Extended producer responsibility
d. Environmentally safe people c. Extended producer responsibility
41. With ___________________, consumers are encouraged to use the product efficiently,
repair it when possible and dispose of it responsibly.
a. green sourcing
b. green manufacture
c. recycling and reuse
d. green consumption d. green consumption
42. With ___________________, suppliers are encouraged to suggest more environmentally
friendly materials, methods and processes.
a. green sourcing
b. green manufacture
c. recycling and reuse
d. green consumption a. green sourcing
43. Design for the environment includes all the following concepts except
a. design for disposal or reuse.
b. sustainability.
c. extended producer responsibility.
d. environmentally safe people. d. environmentally safe people.
44. Quality function deployment (QFD) is
a. a software systems that uses computer graphics to assist in designing products.
b. a systematic approach to analyzing the causes and effects of product failures.
c. a visual method for analyzing the interrelationships among failures.
d. a structured process that translates the voice of the customer into technical design
requirements. d. a structured process that translates the voice of the customer into technical
design requirements.
45. A structured process that translates the voice of the customer into technical design
requirements is known as
a. quality function deployment (QFD).
b. failure mode and effects analysis (FMEA).
c. concurrent design.
d. robust product design. a. quality function deployment (QFD).
46. Which of the following is a quantitative measure of maintainability?
a. design for manufacture (DFM)
b. mean time to repair (MTTR)
c. mean time between failures (MTBF)
d. quality function deployment (QFD) b. mean time to repair (MTTR)
47. When a product is designed to withstand variations in environmental and operating
conditions, it is known as
a) robust design.
b) design for change.
c) design for modification.
d) design for tolerance. a) robust design.
48. The Taguchi Quality Loss Function implies that a
a. customer's dissatisfaction increases geometrically as the actual value deviates from the
target value.
b. customer's satisfaction increases geometrically as the actual value deviates from the target
value.
c. customer's dissatisfaction decreases geometrically as the actual value deviates from the
target value.
d. customer's preferences are strongly oriented towards conforming to specifications. a.
customer's dissatisfaction increases geometrically as the actual value deviates from the target
value.
49. As a part of design for robustness, Taguchi believes that
a. consistent errors can be more easily corrected than random errors.
b. parts within tolerance limits may produce assemblies that are not within limits.
c. consumers have a strong preference for product characteristics near their ideal value.
d. All of these answer choices are correct. d. All of these answer choices are correct.

True/False
Operations Management is only concerned with the day-to-day operations of a firm's
productive systems. False
The four primary functional areas of a firm are marketing, finance, operations, and legal.
False (Human relations)
Lean production refers to high-volume production of a standardized product. False
(Correct term is Mass Production)

Lean Production: An integrated management system that emphasizes the elimination of waste
and the continuous improvement of operations.
The most current era in the evolution of operations and supply chain management is
sustainability. True
Firms compete in the marketplace based on cost, speed, quality, and flexibility. True
The fundamental objective of Six Sigma is to focus on improvement by reducing process
variation. True
The Deming Wheel is also known as the plan-do-act (PDCA) cycle. True
The probability that a product will operate properly within an expected time frame is known
as quality of performance. False (Correct term is reliability)
The cost of measuring, testing, and analyzing are collectively known as appraisal costs.
True
One principle of total quality management (TQM) is that upper management is solely
responsible for providing the leadership of quality. False
Two team approaches to quality improvement are quality circles and process improvement
teams. True
Comparing a product or process against the best-in-class is known as reverse engineering.
False (correct term is benchmarking)
A product's reliability is a function of the reliabilities of its component parts, but not a
function of how those parts are arranged. False
Concurrent design may involve simultaneously designing products and their production
processes. True
Quality function deployment (QFD) consists of a series of matrix diagrams that define
product design changes and the ramifications of implementing those changes. True
Test Two T/F
Producing a high volume of a single product is a characteristic of batch production.
False
Companies that control the production of virtually all of the parts that go into a product are
said to be horizontally integrated. False (Vertical Integration)
Outsourcing occurs when a company cannot or will not make all the parts that go into a
product. True
One-of-a-kind production of a product based on a customer's unique specifications is a called
a project. True
Mass production is characterized by high volumes of a customized product for mass market
False (Standardized product)
Breakeven analysis examines the cost tradeoffs associated with demand volume when
selecting a process. True
(volume, cost, revenue, profit)
Profit sharing involves the distribution of a task's time equally to all workers. False
A process layout groups similar activities together according to the functions they perform.
True
Ergonomics as applied to the workplace is fitting the task to the person. True
Cycle time refers to the maximum amount of time a product is allowed to spend at each
workstation. True
Line balancing is constrained by precedence requirements and cycle time restrictions.
True
The center of gravity technique outlines a method for identifying and weighing important
location factors. False (Load distance)
Job rotation often requires cross training of employees True
Empowerment involves giving employees the authority and responsibility to innovate and act
on their own. True
While still an important issue, diversity issues in US companies is on the decline. False
Multiple Choice (Test 1)
Operations management is concerned with the__________of a firm's productive systems.
A) Design
B) Operation
C) Improvement
D) All of these answer choices are correct D) all of the above
Which of the following is not an event or concept associated with the quality revolution?
A) TQM (total quality management)
B) Internet
C) Six Sigma
D) JIT B) Internet (Look Up)
Dividing a job into a series of small tasks, each performed by a different worker, is known as:
A) Craft production
B) Scientific management
C) Division of labor
D) Interchangeable parts C) Division of labor
Mass production is well suited to all of the following except:
A) producing large volumes of goods quickly.
B) adapting quickly to changes in market demand.
C) producing standardized products for a large scale market.
D) All of these answers are correct. B) Adapting quickly to changes in market demand
Companies go global to:
A) take advantage of favorable costs
B) to keep abreast of trends and access new technologies
C) to build reliable sources of supply
D) all the above D) all the above
Companies that compete on________are able to produce a wide variety of products in
response to customer needs.
A) cost
B) speed
C) flexibility
D) quality C) flexibility
The balanced scorecard examines a firm's performance in all the following critical areas
except:
A) finances
B) customers
C) processes
D) all the above D) all the above
All of the following are parts of DMAIC except:
A) define
B) measure
C) analyze
D) improvise D) improvise
W. Edwards Deming's overall philosophy for achieving quality is embodied in:
A) his 14 points
B) his statement of purpose
C) his use of statistical control
D) none of these answer choices A) his 14 points
________failure costs include scrap, rework, and downtime.
A) external
B) internal
C) process
D) system B) internal
Which of the following quality tools display major causes of poor quality on a graph?
A) process flow chart
B) fishbone diagram
C) histogram
D) scatter diagram D) scatter diagram (Look Up)
The six sigma quality goal is 3.4 defects per___________opportunities
A) hundred
B) thousand
C) million
D) billion C) million
The Baldridge Award was created in 1987 to________in the US
A) stimulate growth of quality management
B) stimulate economic growth
C) recognize the best quality gurus
D) None of these are correct A) stimulate growth of quality management
Carefully dismantling and inspecting a competitor's product to look for design features that
can be incorperated into your own product is known as:
A) concurrent design
B) design for manufacturability
C) benchmarking
D) reverse enineering D) reverse engineering
Creating a preliminary design that can be quickly tested and then either discarded or further
refined is referred to as:
A) benchmarking
B) rapid prototyping
C) concurrent design
D) Perceptual mapping B) rapid prototyping
M/C Problems Test 1
Telco Inc, A manufacturing firm, is calculating its monthly productivity report.
Labor Rate: $20
Machine Rate: $15
Units produced: 50,000
Labor Hours: 4,000
Machine Hours: 2,000
Cost of materials: $20,000
Cost of energy $5,000

From the following data above, calculate the multifactor productivity:

A) 0.370
B) 0.625
C) 1.500
D) 1.667 A) 0.370

(50,000) / (4,000*(20)+ 15*(2,000)+ 20,000+5,000)

Kallie Inc., a small parts manufacturer, has just engineered a new product for the automotive
industry. In order to produce the part the company can expand existing facilities, acquire a
competitor, or subcontract production. The company believes the product will either
experience high market demand or low market demand, with probabilities of 0.6 and 0.4
respectively. The following payoff table describes the company's decision situation.

High Demand (0.6)

Expand: $2,000,000
Acquire: $750,000
Subcontract: $250,000

Low Demand (0.4)

Expand: $-1,250,000
Acquire: $-500,000
Subcontract: $25,000

The expected value for the subcontract production decision is:

A) $250,000
B) $160,000
C) $700,000
D) $1,200,000 B) $160,000
A production process consists of the following four stages with the average percentage of
good quality at each stage as shown.

Stage 1: 0.95
Stage 2: 0.95
Stage 3: 0.93
Stage 4: 0.97

How many units must the company put into production each day to achieve a daily yield of
350 good units?

A) approx 430 units

B) approx 415 units
C) approx 468 units
D) approx 361 units A) 430 Units
A company produces a product consisting of two components arranged as follows:
R1--> R2
If both components must function for the product to function, then the two components
would need individual reliabilities of________to achieve an overall reliability of 0.90.
A) R1 = 0.90 and R2 = 0.90
B) R1 = 0.95 and R2 = 0.95
C) R1 = 0.80 and R2 = 0.80
D) R1 = 0.85 and R2 = 0.85 B) R1 = 0.95 and R2 = 0.95
For the overall reliability of the following system to be 0.975 or greater the reliability of the
backup component, Rb, must be
Rb = ?
0.99--> 0.95--> 0.99

A) at least 1.00
B) at least 0.896
C) at least 0.736
D) at least 0.534 B) 0.896
M/C test two
Variable demand and small-to-moderate quantities produced to-order are characteristic
usually associated with which of the following:
A) mass production
B) continuous production
C) projects
D) batch production D) batch production
Process flowcharts document:
A) productive activities.
B) non-productive activities
C) both productive and nonproductive activities
D) none of these answers is correct C) both productive and nonproductive activities
Which type of facility is large and expensive?
A) light-industry facilities
B) retail and service facilities
C) heavy-manufacturing facilities
D) medium-site facilities C) heavy-manufacturing facilities
A graph that reflects the fact that repetition of tasks improves worker performance is referred
to as a:
A) process flow chart
B) a learning curve
C) man-machine chart
D) value chain flowchart B) a learning curve
Motion study, the study of the individual human motions used in a task, was developed by:
A) Henry Ford
B) F.W. Taylor
C) Frank and Lillian Gilbreth
D) Fredrick Herzberg C) Frank and Lillian Gilbreth
M/C Problems Test Two
A company is considering producing a product for a new market. The fixed cost required for
manufacturing and delivering the product is $50,000. Labor and material costs are estimated
to be approx $25 per product. If the product is sold for $35.00 each, the firm's breakeven
volume would be:
A) 50,000 units
B) 5,000 units
C) 2,500 units
D) 500 units

(50,000) / (35-25) = 5,000 B) 5,000 units

A company is evaluating which of two alternatives should be used to produce a product that
will sell for $35.00 per unit. The following cost information describes the two alternatives:

Process A:
Fixed Cost: $500,000
Variable Cost per unit: $25.00

Process B:
Fixed Cost: $750,000
Variable Cost per Unit: $23.00

For what level of volume (output) would the firm prefer Process A to Process B?
A) for all volume levels greater than 75,000
B) for all volume levels greater than 97,500
C) for all volume levels greater than 117,500
D) for all volume levels greater than 125,000 D) for all volume levels greater than
125,000
A company has a target output rate of 40 units every five (5) hours when its line is fully
operational. To achieve this target the firm must have a cycle time of:
A) more than 12.50 minutes
B) more than 10.00 minutes
C) 7.5 minutes or less
D) 8 minutes or less C) 7.5 minutes or less
An assembly line consists of three workstations (WS) with each station's activity time as
shown.

(WS 1, 5 min)--> (WS 2, 3 min)--> (WS 3, 4 min)

The flow time for items on this line would be:
A) 5 minutes
B) 3 minutes
C) 4 minutes
D) 12 minutes D) 12 minutes
A company is deciding where to locate a new warehouse that will receive shipments from
three suppliers: 1, 2, and 3. The locations of the suppliers (Xi, Yi) and the annual number of
shipments from supplier i (Wi) are provided below
1:
X1=250
Y1=250
W1=240

2:
X2=100
Y2=400
W2=205

3:
X3=500
Y3=300
W3=300

The coordinates for the new warehouse suggested by the center-of-gravity method are:
A) x=311.4 and y=309.4
B) x=309.4 and y=311.4
C) x=291.2 and y=198.9
D) x=193.2 and y=219.4 B) x=309.4 and y=311.4
A prospective equipment investment in your plant has a purchase cost of $50,000 and it will
produce $15,000 in annual savings. The yearly operating & maintenance costs are estimated
to be $7,000. After 5 years the project will end and the equipment sold for 10% of purchase
cost. If interest is 10% and using the net present worth method, which of the following is
correct:

A) PW = $-19,672; thus do not invest

B) PW = $-16,568; thus do not invest
C) PW = $-11,617, thus do not invest
D) PW = $+2,265; thus invest
E) PW = $+1,945; thus invest
F) My calculate net present worth in not one of those choices here B) PW = $-16,568; thus
do not invest

(50,000+18,000)*(3.791)+5,000(0.6209) = -16,567.5
A cellular manufacturing layout is being proposed for a textile plant that incorporates non-
wovens, and machines for tufting, knitting, and weaving. In-all the equipment cost is
estimated to be $1.5 million. If the cell is invested in it is anticipated that there will be
reduced quality costs, improved manufacturing efficiencies, labor cost savings, and increased
profitability. Together these effects will result in an annual positive cash flow of $300,000 the
first year, and then will increase by $200,000 each year thereafter. If the firm uses a Payback
Period guideline of 5 years for such technology investments, what is the payback for the cell
investment; and should you invest?

A) payback = 5 years; do not invest

B) payback = 2 years; do not invest
C) payback = 7.5 years; invest
D) payback = 5 years; indifferent
E) payback = 3 years; do not invest
F) payback = 3 years; invest
G) none of the above F) 3 years; thus do invest

A warehouse operation is an example of a physical transformation process. False

A supply chain is a series of activities from supplier to customer that adds value to a product
or service. True
Human resources management provides product demand estimates that are used in
production decisions. False
Lean production refers to high-volume production of a standardized product. False
The most current era in the evolution of operations and supply chain management is
sustainability. True
Increases in productivity enable a nation to raise its standard of living. True
Snacknow, a food service firm, is calculating its monthly productivity report. From the
following raw data calculate the labor productivity.

Labor rate $10

Units produced 10,000
Labor hours 1,000
Cost of materials $2000
Cost of energy $500
Snacknow, a food service firm, is calculating its monthly productivity report. From the
following data calculate the energy productivity.

Labor rate $10

Units produced 10,000
Labor hours 1,000
Cost of materials $2000
Cost of energy $500 20
Snacknow, a food service firm, is calculating its monthly productivity report. From the
following data calculate the multifactor productivity.

Labor rate $20

Units produced 10,000
Labor hours 1,000
Cost of materials $2000
Cost of energy $500 0.800
_____________ represents what the firm is in the business of doing. Primary Task
Companies that compete on _________________ establish a corporate culture that
encourages risk. Innovation
Supply chain management is aimed at managing the flow of __________. a. Information
b. Products
c. Services

d. All of these are correct

Globalization has__________ the risk of disruptions in operations and supply chain
activities; it has also provided __________ flexibility in responding to disruptions.
If the units produced by a factory decreased by 10% and the labor productivity increased by
25%, then the labor hours __________. decreased by 28%
If the units produced by a factory decreased by 4% and the labor productivity decreased by
10%, then the labor hours __________.
______ is used to compare customer perceptions of different products on two different
dimensions. A perceptual map
Carefully dismantling and inspecting a competitor's product to look for design features that
can be incorporated into your own product is known as: Reverse Engineering
A product consists of three serial components with reliabilities of 0.70, 0.80, and 0.90. If all
of the components must work for the product to work, the product reliability is: 0.50
Good design practices include: simplifying the design
Holding a company responsible for its product even after its useful life is known as:
Extended Producer Responsibility
Creating preliminary design models that are quickly tested and either discarded or further
refined is known as rapid prototyping. True
Form design refers to the physical appearance of a product. True
A product's reliability is a function of the reliabilities of its component parts, but not a
function of how those parts are arranged. False
Design can provide a competitive edge by: a. bringing products to market quickly.
b. doing an even better job of satisfying customers.
c. being easier to manufacture, use and repair.

d.All these answer choices are correct.

Product design begins with: understanding the customer and identifying customer needs
A company produces a product consisting of two components arranged as follows:

0.95-0.93

If both components must function for the product to function, then the product's overall
reliability is:
A company produces a product consisting of two components arranged as follows:

R1-R2

If both components must function for the product to function, then the two components
would need individual reliabilities of _______ to achieve an overall reliability of 0.90. R1
= 0.95 and R2 = 0.95
The overall reliability of the following system is

0.85 0.89
0.90 0.94 0.93 0.919
A product consists of three components arranged as follows:
R1= ? R2= 0.94 R3=0.98

If all three components must function for the product to function, and the product's overall
reliability must be at least 0.92, then the reliability of the first component, R1, must be: at
least 0.999
The LawnPlus Fertilizer Company distributes fertilizer to various lawn and garden shops.
The company must base its quarterly production schedule on a forecast of how many tons of
fertilizer will be demanded from it. The company has gathered the following data for the past
three years from its sales records.

Year Quarter Demand for Fertilizer (ton)

1 1 105
2 150
3 93
4 121
2 5 140
6 170
7 105
8 150
3 9 150
10 170
11 110
12 130

Select the correct graph for the above provided demand data.
An up and down movement in demand that repeats itself over a lengthy time span is a:
Cycle
If a company's product demand is 100 units in month 1, 75 units in month 2, 110 units in
month 3 and 50 units in month 4, its 4-month moving average for month 5 is: 83.75

If a company's product demand is 100 units in month 1, 75 units in month 2, 110 units in
month 3 and 50 units in month 4, and it weights the month 1 demand 0.10, month 2 demand
0.20, month 3 demand 0.30, and month 4 demand 0.40, its 4-month weighted moving average
for month 5 is:

Forecasting customer demand is often a key to providing good quality service. True

Qualitative forecasts use mathematical techniques and statistical formulas. False

The type of forecasting method selected depends on time frame, demand behavior and causes
of behavior. True

Given the following demand data for the past five months, the four-period moving average
forecast for June is

Period Demand
January 120
February 90
March 100
April 75
May 110 93.75
Given the demand and forecast values below, the naïve forecast for September is

Period Demand Forecast

April 100 97
May 105 103
June 97 98
July 102 105
August 99 102
September

Two things that contribute to a firm's becoming leaner are __________ and __________.
A) automation; push systems
B) modular design; standard parts
C) pull systems; automation
D) large supplier base; push systems

B) modular design; standard parts

Suppose a firm gets one-fourth of its sales from product A, one-fourth from product B, and
the rest from product C. Rather than producing to this schedule - ABCC - a lean firm might
produce in this schedule - ACBC. This is an example of:
A) lean leveling
B) loaded sequencing
C) level loading
D) sequenced leveling

C) level loading

Which one is not a building block of lean production?

A) large lot sizes
B) personnel/organizational issues
C) product design
D) process design B) personnel/organizational issues

The term that relates to matching the output rate with customer demand in a lean system is:
A) fill rate.
B) takt time.
C) closed-loop JIT.
D) single-minute exchange of die. B) takt time.

The ultimate goal in a lean system is:

A) maintaining low inventory.
B) producing high quality.
C) eliminating waste.
D) a balanced, rapid flow. D) a balanced, rapid flow.

Which term connotes waste and inefficiency?

A) muda
B) kaizen
C) poka-yoke
D) Kanban A) muda

Which term refers to a signaling device?

A) muda
B) kaizen
C) poka-yoke
D) Kanban D) Kanban

Which term connotes fail-safe design?

A) muda
B) kaizen
C) poka-yoke
D) kanban C) poka-yoke

Which one is not included in the list of seven wastes?

A) overproduction
B) inefficient work methods
C) product defects
D) poor product design
E) processing wastes D) poor product design

Which one of these is a system for reducing changeover time?

A) VMI
B) JIT II
C) takt time
D) SMED
E) JIT D) SMED

A kanban card is used to signal that:

A) a machine has broken down.
B) a worker is falling behind and needs help.
C) a defect has occurred.
D) parts are needed. A) a machine has broken down.

Which one of these is a system of lights used to signal problems in a lean production system?
A) SMED
B) andon
C) kanban
D) jidoka
E) muda D) jidoka

Process design supporting lean production would include:

A) backup equipment to guard against equipment failure.
B) multiple suppliers to assure parts availability.
C) maintain backlogs to assure workers have enough work to keep them busy.
D) cross-trained workers to enhance system flexibility. B) multiple suppliers to assure
parts availability.

Which of the following would you not expect to see in a lean production system?
A) a flexible system
B) frequent schedule changes
C) little waste
D) low setup times
E) low inventory B) frequent schedule changes

Lean systems typically use __________ layouts.

A) job shop
B) process-based
C) continuous flow
D) cellular D) cellular

assembly line
a product layout where a sequence of operations and tasks is performed on the end item at
workstations strategically located at points along the length of the line.

automation
machinery that has sensing and control devices that enable it to operate automatically.
balance delay the percentage of idle time of a line.

batch processing
layouts for the production of a moderate variety of end items in batches.

cellular production
layouts in which machines are grouped into a cell that can process items that have
similar processing requirements.

computer-aided manufacturing (CAM)

the use of computers in process control.
computer-integrated manufacturing a system for linking a broad range of manufacturing
systems through an integrating computer system.

cycle time
the maximum time allowed at each workstation to complete its set of tasks on a unit.

desired output rate

the effective demand for units of a product, translated into a daily rate of output.

fixed-position layout
layout in which the product or project remains stationary and workers, materials and
equipment are moved about as needed.

flexible manufacturing system (FMS)

a group of machines designed to handle intermittent processing requirements and produce a
variety of similar products.

group technology
grouping items that have similar design or processing characteristics into part families.
job shop
layouts for the production of a low volume of each of a large variety of goods (or services).

line balancing
the process of assigning tasks to workstations in such a way that the workstations have
approximately equal time requirements.

manufacturing cell
a group of workstations dedicated to production of a limited number of similar parts.

maximum cycle time

the sum of the task times.

minimum cycle time

the time required by the longest task.

Muther grid
a chart that displays an index of closeness ratings for every pair of departments or work
centers. It is used to assign work centers to positions in a process layout.

numerically controlled (NC) machines

cutting machines that are directed by a tape produced by a digital computer.

operating time
clock time available in a day of production, after subtracting scheduled stops and breaks.

outsource
obtaining goods or services from an external provider.

precedence diagram
a diagram that shows the sequence of tasks to be performed on a unit of product in an

assembly line.
process layout a layout that can handle varied processing requirements.

production line (or assembly line)

a standardized layout arranged according to a fixed sequence of production tasks.

product layout
a layout that uses standardized processing operations to achieve smooth, rapid, high-volume
flow.

product profiling
Linking key product or service requirements to process capabilities.

project
non-routine production or developmental planning and construction with relatively long task
times for a network of tasks requiring specialized skills and services.

robot
a machine consisting of a mechanical arm, a power supply, and a controller.
task time
the time required to perform a given task on a unit of product.

technology
the application of scientific discoveries to the development and improvement of products and
services and operations processes.

technological innovation
the discovery and development of new or improved products, services, or processes
for producing or providing them.

workstation
a location on an assembly line where a series of tasks is performed on units of a product.

work center a location in a process layout where a specified group of tasks is performed on
a unit or batch of material.

T or F: At an 80% learning rate, if the first unit requires 100 labor hours, the 8th unit will
require 64 hours. False
T or F: Predetermined time standards are advantageous since they avoid needing multiple
performance ratings. True
The outputs from a work measurement study leads to developing of labor and equipment
standards that are used for all of the following except:

A) Determining the cost of new work procedures.

B) Estimating workforce capacity.

C) Fatigue and personal needs allowances.

D) Providing accurate information for scheduling and sequencing C) Fatigue and personal
needs allowances
Allowances include time for all of the following except:

A) Poor scheduling

B) Fatigue

C) Rest periods

D) Equipment breakdowns A) Poor scheduling

T or F: After developing per-determined standards, stop-watch or work sampling time studies
need not be performed. False
T or F: A Performance Rating Factor (PRF) of 130% means a worker is slow and needs 30%
more time. False
A Performance Rating Factor (PRF) of 1.15 means:

A) The worker is working at a pace that is 15% faster than standard time.
B) The worker is working at a pace at a is 15% slower than normal.

C) The worker is working at a pace that is 15% faster than normal.

D) The worker needs to add 15% to the standard time. C) The worker is working at a
pace that is 15% faster than normal.
T or F: The learning curve does not apply to supervisory personnel, some skilled craftspeople
or jobs that have non-repetitive job tasks. True
The _____ states that the cost of doing any repetitive task, work activity or project decreases
as the accumulated experience of doing the job increases.

A) Deming philosophy

B)Experience curve

C)Regression method

D)Learning curve B) Experience curve

Personal fatigue and delay allowances are added to ____ to arrive at ____.

A) Standard time; normal time.

B) Normal time; standard time.

C) Standard time; desired time.

D) Normal time; desired time B) Normal time; standard time.

T or F: For a time study, it is assumed the distribution of task times follow a Poisson
distribution. False
T or F: The Performance Rating Factor (PRF) and allowances are based upon human
judgement. True
T or F: Normal time needs to be adjusted for personal time and avoidable delays. False
T or F: Job and process analysis should follow work measurement. False
Work samplings:

A) Are used for repetitive work activities.

B) Determine the allowance factor.

C) require a systematic (non-random) sample.

D) Are based on normal distribution. B) determine the allowance factor.

Which is not a practical issue when using learning cures?

A) Keeping groups of employees together reaps productivity benefits.

B) Complex intellectual learning will end quicker than learning simple tasks.

C) incentive systems and bonus plans my increase learning.

D) A contract phase-out may result in a lengthening of process times. B) Complex
intellectual learning will end quicker than learning simple tasks.
T or F: For work sampling, p will never be known exactly since it is the population parameter
that is being estimated. True
T or F: Regression analysis is used to predict times based on different attributes of work.
True
T or F: A 90% learning curve implies faster learning than an 80% learning curve. False
All of the following are true regarding learning curves except:

A) 80% learning curves exhibit a step initial decline and then level off.

B) Used in defense industries.

C) Not used for a pricing strategy.

D) Are affected by a ratio of manual to machine work. C) Not used for a pricing
strategy.
Work standards:

A) Increase variability if set by workers.

B) Works best when designed by workers.

C)Are best set informally.

D)Improve motivation if set by managers B) Works best when designed by workers

Output to obtain a distribution of the activities that an individual or a group of employees
performs is called:

A) A time study.

B) Learning curve analysis.

C) Work Sampling.

D)Work Measurement. C) Work sampling

Computer software would be an example of

a.
an intangible good
b.
a nondurable good
c.
a service
d.
a value creation process b. a nondurable good
Which one of the following has the lowest goods content?
a.
automobile muffler replacement
b.
computer diagnosis and repair
c.
movie presentation
d.
fast food restaurant c.movie presentation
Which one of the following has the highest goods content?
a.
medicine prescription
b.
computer repair
c.
automobile loan
d.
symphony performance a.
medicine prescription
Service organizations generally
a.
are in close proximity to the customer
b.
rely on physical inventory
c.
take advantage of patents
d.
can delegate human behavior and marketing skills a.
are in close proximity to the customer
A customer benefit package (CBP) includes
a.
only core offerings
b.
only peripheral offerings
c.
either core or peripheral offerings but not both
d.
both core offerings as well as peripheral offerings d.
both core offerings as well as peripheral offerings. like Mcdonalds
Support processes would typically include all of the following except
a.
inventory management
b.
customer help desk operations
c.
research and development
d.
manufacturing and assembly d.
manufacturing and assembly
Which is generally related to service operations?
a.
tangible product
b.
need for flexible capacity
c.
separation of production from consumption
d.
large amount of inventory b.
need for flexible capacity
A support process could be any of the following except
a.
assembling automobiles
b.
purchasing materials and supplies
c.
managing inventory
d.
installing a product a.
assembling automobiles
Service management skills would include all of the following except
a.
accounting and finance
b.
knowledge and technical expertise about operations
c.
marketing and cross-selling
d.
human interaction a.
accounting and finance
Which one of the following is not an example of biztainment?
a.
iPhone applications
b.
automobile leasing
c.
product demonstrations
d.
virtual factory tours b.
automobile leasing
Which one of the following statements about the structure of the U.S. economy is true?
a.
About 91 percent of all U.S. jobs are in service-providing processes.
b.
All goods-producing jobs account for 25 percent of total U.S. jobs.
c.
All service-providing jobs account for 65 percent of total U.S. jobs.
d.
The largest U.S. industry with respect to U.S. jobs is manufacturing. a.
About 91 percent of all U.S. jobs are in service-providing processes.
The three issues that are at the core of operations management include all of the following
except
a.
cost
b.
quality
c.
utilization
d.
efficiency c.
utilization
Which of the following is false? To increase value, an organization must
a.
decrease price or cost while holding perceived benefits constant.
b.
change both perceived benefits and price in the same proportion.
c.
increase perceived benefits while holding price or cost constant.
d.
increase perceived benefits while reducing price or cost. b.
change both perceived benefits and price in the same proportion.
The first, second, and third waves of outsourcing experienced by the U.S. are
a.
goods-producing jobs, simple service work, skilled knowledge work
b.
simple service work, goods-producing jobs, skilled knowledge work
c.
simple service work, skilled knowledge work, goods-producing jobs
d.
skilled knowledge work, simple service work, goods-producing jobs a.
goods-producing jobs, simple service work, skilled knowledge work
A company has two alternatives for meeting a customer requirement for 9,000 units of a
specialty molding. If done in-house, fixed cost would be $350,000, with variable cost at $30
per unit. If outsourced, the cost is $80 per unit. Determine the breakeven point and determine
if they should make the item in-house or outsource it.
a.
breakeven point = 7,000 units; outsource
b.
breakeven point = 7,000 units; make in-house
c.
breakeven point = 11,667 units; outsource
d.
breakeven point = 11,667 units; make in-house b.
breakeven point = 7,000 units; make in-house
From the pre- and post-service view, transportation service, training service and consulting
and technical services would be considered
a.
pre-production services
b.
a production processes
c.
post-production services
d.
value creation c.
post-production services
____ is the process of managing information, services and physical goods to insure their
availability at the right place, at the right time, at the right cost and at the right quantity, with
the highest attention given to quality.
a.
Preproduction service
b.
Value proposition
c.
Operational structure
d.
Value chain integration d.
Value chain integration
"The perception of the benefits associated with a good, service, or bundle of goods and
services in relation to what buyers are willing to pay for them" is the definition of
a.
proportionality
b.
competitiveness
c.
value
d.
equity c.
value
Outsourcing is
a.
the same as offshoring
b.
the opposite of vertical integration
c.
the opposite of backward integration
d.
the same as diversifying b.
the opposite of vertical integration
Operational structure of the value chain deals with
a.
management hierarchy
b.
vertical integration
c.
configuration of resources
d.
culture c.
configuration of resources
The control of Wal-Mart's value chain is ____, while the control of General Electric's is ____.
a.
post-production focused; preproduction focused
b.
horizontal; vertical
c.
centralized; decentralized
d.
backward integrated; forward integrated c.
centralized; decentralized
A competitively dominant customer experience is often called a
a.
perceived benefit
b.
preemptive strike
c.
moment of truth
d.
value proposition d.
value proposition
Appliances and iPods are examples of ____ goods.
a.
Custom
b.
Option
c.
Standard
d.
Assemble to order c.
Standard
The terms, "general purpose equipment," "flexible and capable of customizing work" and
"wide variety of goods or services" best relate to
a.
Projects
b.
Job shops
c.
Flow shop processes
d.
Continuous flow processes b.
Job shops
Automobile factories and hospital laboratory work are examples of
a.
Projects
b.
Job shop
c.
Flow shop processes
d.
Continuous flow processes c.
Flow shop processes
Using the Service Positioning Matrix, a limited number of customer pathways and highly
repeatable service encounter activity sequences would best relate to
a.
Being below the diagonal
b.
Continuous flow
c.
Customer routed
d.
Provider routed d.
Provider routed
Which of the following is not a major activity in designing a goods-producing or service-
providing process?
a.
Utilize reengineering
b.
Flowchart the current process
c.
Flowchart future state
d.
Define appropriate performance measures a.
Utilize reengineering
A process map (flowchart)
a.
Is boundary-less
b.
Does not include information flow
c.
Is often used as a baseline to describe how a process is performed
d.
Must include a line of customer visibility c.
Is often used as a baseline to describe how a process is performed
A(n) ____ is a group of ____ needed to create and deliver an intermediate or final output.
a.
Process; value chains
b.
Activity; tasks
c.
Task; activities
d.
Activity; processes b.
Activity; tasks
Which is the correct order of hierarchy?
a.
Activity, task, process, value chain
b.
Value chain, process, task, activity
c.
Process, value chain, activity, task
d.
Value chain, process, activity, task d.
Value chain, process, activity, task
Which of the following is least related to Value Stream Mapping?
a.
Non-value activity
b.
Time
c.
Cost
d.
Reengineering d.
Reengineering
Which of the following is not a common process design improvement strategy?
a.
Increasing revenue
b.
Decreasing agility
c.
Decreasing cost
d.
Decreasing flow time b.
Decreasing agility
The lowest resource utilization is usually found in
a.
A job shop
b.
A flow shop
c.
A continuous flow
d.
An assembly line a.
A job shop
Little's Law
a.
Removes process bottlenecks
b.
Is a form of simulation
c.
Focuses on finished goods inventory
d.
Evaluates average process performance d.
Evaluates average process performance
Which one of the following statements is false?
a.
Historically, General Motors used to push system to get vehicles to their dealers.
b.
Wal-Mart is a good example of a highly efficient supply chain.
c.
Sony is a good example of a global contract manufacturer.
d.
Postponement is the process of delaying product customization until the product is closer to
the customer at the end of the supply chain. c.
Sony is a good example of a global contract manufacturer.
Which one of the following statements is false?
a.
Boeing's new 787 Dreamliner airplane has encountered many startup and supply chain
coordination problems.
b.
At Dell, Inc. customer financing of purchases is a post-production service in their value
chain.
c.
At Dell, Inc. installation, warranty, and field repair services are normally done on a prepaid
contract basis with customers.
d.
Federal Express has over one million pickup and delivery sites and therefore, is a good
example of multisite management. b.
At Dell, Inc. customer financing of purchases is a post-production service in their value
chain.
The point in the supply chain that separates the push system from the pull system is called the
a.
Reversal point
b.
Push-pull boundary
c.
Postponement site
d.
Center of gravity b.
Push-pull boundary
The Supply Chain Operations Reference (SCOR) Model function that entails all order
management activities from processing customer orders to routing shipments, managing
goods at distribution centers and invoicing the customer is called ____.
a.
Return
b.
Source
c.
Make
d.
Deliverd.
Deliver
The Supply Chain Operations Reference (SCOR) Model function that entails procuring goods
and services to meet planned or actual demand is called ____.
a.
Plan
b.
Source
c.
Make
d.
Deliverb.
Source
A firm that specializes in certain types of goods-producing activities, such as customized
design, manufacturing, assembly, and packaging, and works for end users is called a ____.
a.
Responsive supply chain
b.
Contract manufacturer
c.
Distribution center
d.
Vendor-managed inventory supplier b.
Contract manufacturer
A(n) ____ produces goods in advance of customer demand using a forecast of sales and
moves them to points of sale where they are stored as finished goods inventory.
a.
Responsive supply chain
b.
Efficient supply chain
c.
Push system
d.
Pull system c.
Push system
A(n) ____ produces only what is needed at upstream stages in the supply chain in response to
customer demand signals.
a.
Responsive supply chain
b.
Efficient supply chain
c.
Push system
d.
Pull system d.
Pull system
A(n) ____ seeks to balance capacity and demand, might use only a few large distribution
centers, and minimize costs of routing products from factories to retail stores and customers.
a.
Responsive supply chain
b.
Efficient supply chain
c.
Push system
d.
Pull system b.
Efficient supply chain
Which is true regarding a responsive supply chain?
a.
Demand is stable and predictable.
b.
Product life cycles are short and change often because of innovation.
c.
Customers require standardization.
d.
Contribution margins are low. b.
Product life cycles are short and change often because of innovation.
____ is the process of delaying product customization until the product is closer to the
customer at the end of a supply chain.
a.
Postponement
b.
Sourcing
c.
Deferral
d.
Multisite management a.
Postponement
Which of the following is true regarding order amplification?
a.
The fluctuation of orders is larger than the fluctuation in sales.
b.
The amplitude of order quantity over time is smaller than the variation of sales.
c.
The less the uncertainty, the greater the amplification in orders.
d.
The amplification is greatest near the customer. a.
The fluctuation of orders is larger than the fluctuation in sales.
The weights typically used in the center-of-gravity method are
a.
Transportation costs
b.
Distances
c.
Volumes of goods
d.
Times c.
Volumes of goods

Which is generally related to service operations? need for flexible capacity

Which one of the following has the lowest foods content? movie presentation
Which of the following would be the lowest in goods content and highest in service content?
attending a theater production
A golf simulator in a retail sports store is an example of biztainment
A value creation process could be any of the following except purchasing production
material
Service management skills would include all of the following except accounting and
finance
Where in its supply chain does Dell Inc begin to use a pull system? supplier
Factors such as managers' preferences, services and taxes, available transportation systems,
banking services and environmental impacts would be most closely related to which level of
the facility location hierarchy? District or community location
Managing the flow of goods and materials from the customer backward through the supply
chain is called Reverse logistics
The Supply Chain Operations Reference (SCOR) Model function that entails procuring goods
and services to meet planned or actual demand is called ____. source
For General Motors' supply chain, the ______ is the push-pull boundary. dealer
A(n) ____ produces only what is needed at upstream stages in the supply chain in response to
customer demand signals. pull system
The Supply Chain Operations Reference (SCOR) Model function that entails all order
management activities from processing customer orders to routing shipments, managing
goods at distribution centers and invoicing the customer is called ____ deliver
For a non-bottleneck activity An hour lost has no effect on total process or factory output
Which of the following is not correct relating to bottleneck resources? Should plan safety
capacity
Safety capacity is most closely related to unanticipated events
Computer integrated manufacturing systems result in all of the following EXCEPT:
decreased equipment utilization
Which of the following enables engineers to design, analyze, test, simulate and
"manufacture" products before they physically exist? CAD/CAE
Infinite scalability is most closely related to high scalability
All of the following are benefits of adopting technology except easier to protect
employees' and customers' privacy
Which one of the following statements is FALSE?
a. service encounters can be between a customer and a building.
b. high customer contact systems always have high process efficiency.
c. a hotel room is a perishable asset (service).
d. normally off shoring facilities are not in the host (original) country. b. high customer
contact systems always have high process efficiency.
Which one of the following statements is FALSE?
a. service processes are the dominant type of process in the U.S. economy.
b. a telephone customer service representative needs service management skills.
c. a variant is a CBP attribute that departs from the standard CBP and is normally location or
firm-specific.
d. value is a measure of the quantity of the outputs to inputs. d. value is a measure of
the quantity of the outputs to inputs.
Which one of the following statements is TRUE?
a. a variant is always a durable good with new features.
b. buying a Mercedes automobile is a nondurable good.
c. Demand for goods is more difficult to predict than demand for services.
d. normally patents do not protect services. d. normally patents do not protect services.
Which one of the following statements is FALSE?
a. service encounters can be between a customer and a building.
b. services can be stored as inventory for future sale.
c. a hotel room is a perishable asset (service).
d. in the Tuneman case study, the traditional value chain allows for more control by value
chain managers than the Internet-based music downloading value chain.
e. normally patents do not protect services. b. services can be stored as inventory for future
sale.
Which of the following is not true regarding the differences between goods and services?
a. Demand for services is easier to forecast
b. Customers participate in many services
c. Services cannot be stored as physical inventory
d. Patents do not protect services a. Demand for services is easier to forecast
Which of the following is not a key activity of an operations manager?
a. Translating market knowledge into goods, services, and processes
b. Continually learning and adapting to global and environmental changes
c. Managing cash flows and strategic investments
d. Exploiting technology to improve productivity c. Managing cash flows and strategic
investments
Which one of the following best represents a pure service?
a. Bank loans
b. Computer diagnosis and repair
c. Attending a play
d. Fast food restaurant c. Attending a play
Regarding service encounters, which is not true?
a. May involve more than one moment of truth
b. Should be avoided
c. May involve a company store or building
d. Involve customer perceptions b. Should be avoided
Service organizations generally
a. Are in close proximity to the customer
b. Rely on physical inventory
c. Take advantage of patents
d. Can delegate human behavior and marketing skills a. Are in close proximity to the
customer
Support processes would typically include all but which of the following:
a. Managing inventory
b. Customer help desk operations
c. Research and development
d. Manufacturing and assembly d. Manufacturing and assembly
Which of the following is the correct sequence describing the evolution of OM?
a. Efficiency, customization, quality, service, time-based competition
b. Quality, efficiency, time-based competition, customization, service
c. Efficiency, quality, customization, time-based competition, service
d. Quality, service, customization, time-based competition, efficiency c. Efficiency,
quality, customization, time-based competition, service
The following terms –
, division of labor, highly repetitive tasks -- best relate to focus on ____.
a. Quality
b. Efficiency
c. Quality
d. Time b. Efficiency
The quality revolution is most related to...
a. Continuous improvement
b. Mass production
c. Time-based competition
d. Service a. Continuous improvement
Which of the following is not a current challenge to OM?
a. Globalization
b. Technology
c. The workforce
d. Mass production d. Mass production
The OM perspective of a value creation process applies most to
a. Universities
b. Hospitals
c. Manufacturers of dishwashers
d. All the answers are correct d. All the answers are correct
Which is generally related to service operations?
a. Tangible product
b. Need for flexible capacity
c. Separation of production from consumption
d. Large amount of inventory b. Need for flexible capacity
A support process could be all of the following except
a. Assembling automobiles
b. Purchasing materials and supplies
c. Managing inventory
d. Installation a. Assembling automobiles
An example of a moment of truth for a college visit would not be
a. Receiving an email from an admissions officer
b. Finding a building using a campus map
c. Meeting with an academic counselor
d. Asking a parking attendant for directions to the highway b. Finding a building using a
campus map
From the pre- and post-service view of a value chain, goods and services design, contract
negotiation and consulting services would be considered: pre-production services
For a restaurant, order-taking, bill payment, and home delivery would be considered:
processes
Which of the following is not normally considered a variable cost? equipment lease
Which of the following is not a component of a value chain? sources of labor
Outsourcing is the opposite of vertical integration
A competitively dominant customer experience is often called a value proposition
In regard to the value chain model, efficiency, cost and cycle time would be most related to
value creation processes
Of the four models of organizational performance, which two focus on the "big picture" of
organizational performance rather than on operational-level framework? Malcolm Baldrige
National Quality Award Framework and the Balanced Scorecard
Regarding the service-profit chain model, which of the following is not viewed as internal
performance? customer satisfaction
In choosing performance measures, an organization might consider all of the following
criteria except Is the measure based on behavioral performance?
Which of the following would be an example of an innovation and learning performance
measure? employee satisfaction
The triple bottom line (TBL or 3BL) refers to the measurement of sustainability in all of the
following areas except technological
Customer satisfaction rating increases as time-on-hold waiting decreases is an
interlinking
Of the four performance perspectives of the balanced scorecard model, which is most
relevant to operations managers? internal
Which of the following is not a key dimension of service quality? conformance
Which of the following would be a typical operational-level quality performance measure?
service representative courtesy
With regard to the three types of customer attributes in evaluating the quality of goods and
services, those associated with the features of a new laptop computer such as processor speed
and hard disk capacity would best be classified as search attributes
With regard to the three types of attributes customers use in evaluating the quality of goods
and services, a vacation would best be classified as high in experience attributes
In time sequence, which of the following needs to be accomplished first? understand
customer wants and needs
Which of the following is not a major characteristic of a customer relationship management
system (CRM)? monitoring the quality levels of products
Regarding industrial robots, which choice is not correct? ability to test manufacturing
products before they physically exist
During which stage of technology development and adoption is design and demand flexibility
most critical? birth
Which of the following would not be included in a typical Customer Relationship
Management System (CRM)?supply chain management inventory
Quality function deployment (QDF) starts with the voice of the customer
___ offer customers broad freedom to select the pathways that are best suited for their
immediate needs and wants from many possible pathways through the service delivery
system. customer-routed pathways
Ships, weddings and estate plannings are examples of __________ goods and services.
make-to-order
Considering the work force component of infrastructure, which term does not fit with the
others in a service environment? task oriented
Goods and service features that differentiate one customer benefit package from another are
called order winners
The United States has experienced three waves of outsourcing. Which of the following is not
one of the waves? mass customization
In the value chain model for a hospital, patients, drugs and staff would be considered
inputs
Which of the following is not true. To increase value, an organization must: hold
perceived benefits constant while increasing price or cost

1. Operations management is concerned with the _________ of a firm's productive systems.

a. design

b. operation

c. improvement

d. All of these answer choices are correct. d. all of these answer choices are correct
2. The transformation process associated with health care is best described as

a. locational

b. exchange
c. physiological

d. informational c. physiological
3. All of the following are transformation processes discussed in the text except

a. physiological.

b. locational.

c. exchange.

d. spiritual. d. spiritual
4. Which of the following is not one of the four primary functional areas of a firm?

a. human resources

b. legal

c. marketing

d. operations b. legal
5. All of the following are responsibilities of operations managers except

a. acquiring financial resources

b. managing inventories

c. planning production

d. scheduling production a. acquiring financial resources

6. Which of the following is not an event or concept associated with the quality revolution?

a. TQM (total quality management)

b. Internet

c. Six Sigma

d. JIT b. internet
7. Linear programming, waiting line, simulation, and PERT/CPM are all elements of which
era of operations and supply chain management?

a) Quality Research

b) Operations Research

c) Internet Revolution

d) Globalization b. operations research

8. Dividing a job into a series of small tasks, each performed by a different worker, is known
as

a. craft production

b. scientific management

c. division of labor

d. interchangeable parts c. division of labor (Ford)

9. The most recent era in the evolution of operations and supply chain management is
a. Internet Revolution
b. Sustainability
c. Globalization
d. Quality Revolution d. sustainability
10. Sustainability, in it's broadest sense, include(s)
a. using resources wisely.
b. treating workers with respect.
c. establishing a business model of shared values.
d. All of these answer choices are correct. d. all of these answer choices are correct
11. Mass production is well suited to all of the following except

a. producing large volumes of goods quickly.

b. adapting quickly to changes in market demand.

c. producing standardized products for a large market.

d. All of these answer choices are correct. b. adapting quickly to changes in the market
demand
12. The major factors impacting globalization of the supply chain include all the following
except

a. falling trade barriers.

b. the Internet.

c. declining union membership.

d. All these answer choices are correct. c. declining union membership

13. Companies go global to

a. take advantage of favorable costs.

b. to keep abreast of trends and access new technologies.

c. to build reliable sources of supply.

d. All of these answer choices are correct. d. all of these answer choices are correct
14. A manager of a global supply chain is concerned with all the following except
a. timeliness.

b. quality.

c. social issues.

d. All of these answer choices are correct. c. social issues

15. The ratio of a firm's monthly output to the number of labor hours used in the same month
would be a measure of

a. labor productivity.

b. capital productivity.

c. machine productivity.

d. multifactor productivity. a. labor productivity

16. The production system that prizes flexibility and quality over efficiency and quantity is
known as

a. mass production.

b. craft production.

c. lean production.

d. electronic commerce. c. lean production (Porsche, Toyota)

17. Telco Inc., a manufacturing firm, is calculating its monthly productivity report. From the
following data calculate the labor productivity.

Labor rate $20

Machine rate $15

Units produced 50,000

Labor hours 4,000

Machine hours 2,000

Cost of materials $20,000

Cost of energy $5,000

a. 0.370

b. 0.625

c. 1.500
d. 1.667 b. 0.625
18. Telco Inc., a manufacturing firm, is calculating its monthly productivity report. From the
following data calculate the machine productivity.

Labor rate $20

Machine rate $15

Units produced 50,000

Labor hours 4,000

Machine hours 2,000

Cost of materials $20,000

Cost of energy $5,000

a. 0..370

b. 0.625

c. 1.500

d. 1.667 d. 1.667
19. Telco Inc., a manufacturing firm, is calculating its monthly productivity report. From the
following raw data calculate the multifactor productivity.

Labor rate $20

Machine rate $15

Units produced 50,000

Labor hours 4,000

Machine hours 2,000

Cost of materials $20,000

Cost of energy $5,000

a. 0.370

b. 0.625

c. 1.500

d. 1.667 a. 0.370
20. Snacknow, a food service firm, is calculating its monthly productivity report. From the
following raw data calculate the labor productivity.

Labor rate $10

Units produced 10,000

Labor hours 1,000

Cost of materials $2000

Cost of energy $500

a. 0.220

b. 0.476

c. 0.800

d. 1.000 d. 1.000
21. Snacknow, a food service firm, is calculating its monthly productivity report. From the
following data calculate the energy productivity.

Labor rate $10

Units produced 10,000

Labor hours 1,000

Cost of materials $2000

Cost of energy $500

a. 0.220

b. 2

c. 10

d. 20 d. 20
22. Snacknow, a food service firm, is calculating its monthly productivity report. From the
following data calculate the multifactor productivity.

Labor rate $20

Units produced 10,000

Labor hours 1,000

Cost of materials $2000

Cost of energy $500

a. 0.220

b. 0.476

c. 0.800

d. 1.000 c. 0.800
23. _____________ is how the mission of a firm is accomplished.

68. Strategy

69. Design

70. An operational decision

71. None of these answer choices is correct. a. strategy

24. _____________ represents what the firm is in the business of doing.

68. Primary task

69. Core competency

70. Positioning

71. Deploying a. primary task

25. _____________ is what the firm does better than anyone else.

68. Primary task

69. Core competency

70. Positioning

71. Deployin b. core competancy

26. _____________ are the characteristics of a product that qualify it to be considered for
purchase by a customer.

68. Order winners

69. Order qualifiers

70. Core competency

71. Positioning b. order qualifiers

27. _____________ is the characteristic of a product that wins the order in the marketplace.

68. Order winners

69. Order qualifiers

70. Core competency

71. Positioning a. order winners

28. _________________is what the firm does better than anyone else.

68. Order qualifiers

69. Core competency

70. Positioning

71. Deploying b. core competency

29. ______________ focus(es) the organization on common goals that can be translated into
measurable objectives.

68. Order winners

69. Core competency

70. Positioning

71. Deploying the strategy d. deploying the strategy

30. Companies that compete on ______________ are able to produce a wide variety of
products in response to customer needs.

68. cost

69. speed

70. flexibility

71. quality c. flexibility

31. Companies that compete on ______________ pursue the elimination of all waste.

68. cost

69. speed

70. flexibility

71. quality a. cost

32. Companies that compete on ______________ recognize the advantages of time-based
competition.

68. cost

69. speed
70. flexibility

71. quality b. speed

33. Companies that compete on ______________ focus on pleasing customers and satisfying
their expectations.

68. cost

69. speed

70. flexibility

71. quality d. quality

34. The balanced scorecard examines a firm's performance in all the following critical areas
except

68. finances

69. customers

70. processes

71. All of these answer choices are correct. d. all of these answer choices are correct
35. The ____________ function helps strategy evolve by creating new ways of delivering a
firm's competitive priorities.

68. finance

69. marketing

70. operations

71. None of the answer choices is correct. c. operations

36. Companies that compete on _________________ establish a corporate culture that
encourages risk.
a. Innovation
b. Quality
c. Flexibility
d. Cost a. innovation
37. A(n) ____________ strategy involves a series of integrated decisions on processes,
facilities, technology, quality, capacity, etc.

68. finance

69. marketing

70. operations

71. None of these answer choices is correct. c. operations

1. All of the following are parts of DMAIC except

a) define.

b) measure.

c) analyze.

d) improvise. d. improvise
2. Which of the following is not a dimension of quality for a manufactured good?

a. performance

b. reliability

c. courtesy

d. durability c. courtesy
3. All of the following are dimensions of quality for manufactured products, except

a. conformance.

b. reliability.

c. durability.

d. feasibility. d. feasibility
4. The probability that a product will operate properly within an expected timeframe is the
dimension of quality known as

a. durability.

b. reliability.

c. performance.

d. serviceability. b. reliability
5. The degree to which a product meets pre-established standards is known as

a. conformance.

b. performance.

c. reliability.

d. None of these answer choices is correct a. conformance

6. Making sure that the product meets the design specifications during production is referred
to as

a. quality of design.
b. process capability.

c. fitness for use.

d. quality of conformance. d. quality of conformance

7. W. Edwards Deming believed that primary responsibility for quality improvement rested
with

a. the firm's employees only.

b. the fIrm's management only.

c. research engineers and consulting statisticians only.

d. both the employees and management of the firm. d. both the employees and management
of the firm
8. W. Edwards Deming's overall philosophy for achieving quality is embodied in

a. his 14 points.

b. his statement of purpose.

c. his use of statistical control.

d. None of these answer choices is correct. a. his 14 points

9. A relationship between a firm and its supplier where the supplier agrees to meet the firms'
quality standards and the firm enters into a long-term purchasing agreement with the supplier
is known as

a. Outsourcing.

b. vertical integration.

c. partnering.

d. conformance. c. partnering
10. Directly involving employees in the quality management process is referred to as

a. partnering.

b. a quality circle.

c. Six Sigma.

d. participative problem solving. d. participative problem solving

11. The costs associated with developing a quality management system are known as

a) training costs.
b) design costs.

c) quality planning costs.

d) information costs. c. quality planning costs

12. ______ failure costs include scrap, rework, and downtime.

a) External

b) Internal

c) Process

d) System b. internal
13. Which of the following quality tools display major causes of poor quality on a graph?

a. Process flow chart

b. Fishbone diagram

c. Histogram

d. Scatter diagram b. fishbone diagram

14. Which of the following quality tools displays the frequency of data related to a quality
problem?

a. Fishbone diagram

b. Histogram

c. Scatter diagram

d. Process flow chart b. histogram

15. Which of the following quality tools displays the relationship between two variables on a
graph

a. Process flow chart

b. Fishbone diagram

c. Histogram

d. Scatter diagram d. scatter diagram

16. Which of the following quality tools displays the steps in a process on a graph

a. Process flow chart

b. Fishbone diagram

c. Histogram
d. Scatter diagram a. process flow chart
17. Total quality management (TQM) was originated in the 1980s as a _____________
management approach to improve quality.
a. Korean
b. American
c. Japanese
d. European c. Japanese
Which of the following is not a basic principle of total quality management (TQM)?
a. Quality must be measured.
b. The quality standard is no defects.
c. Quality can and must be managed.
d. The producer defines quality. d. The producer defines quality
18. A ____________________ is a system that achieves customer satisfaction and
complements other company systems.
a. quality management system
b. total quality system
c. quality productivity system
d. None of these answer choices is correct. a. quality management system
19. Research has shown that companies achieving high customer satisfaction ratings
a. attract new suppliers.
b. retain existing customers.
c. attract new employees.
d. None of these answer choices is correct. b. retain existing customers
20. A relationship between a company and a supplier based on mutual quality standards is
called
a. sourcing.
b. partnering.
c. sourcing and partnering
d. None of these answer choices is correct b. partnering
21. The primary means for gathering information from customers and measuring customer
satisfaction is
a. a sampling program.
b. a phone interview.
c. feedback from competitors.
d. a survey. d. a survey
22. A(n) ____________ is the best level of quality achievement in one company that others
seek to match or exceed.
a. attribute
b. target value
c. benchmark
d. variable c. benchmark
23. _____________________ is an important measure of service quality that is not difficult
to measure.
a. Timeliness
b. Benchmarking
c. Kaizen
d. Participative problem solving a. timeliness
24. The Six Sigma quality goal is 3.4 defects per ___________________ opportunities.
a. hundred
b. thousand
c. million
d. billion c. million
25. At the heart of Six Sigma is the ____________________ strategy, a five-step process
applied to improvement projects.
a. continuous improvement
b. breakthrough
c. champion
d. None of these answer choices is correct. b. breakthrough
26. Quality costs include the cost of _____________________.
a. achieving good quality
b. poor quality
c. both achieving good quality and generating poor quality
d. None of these answer choices is correct. c. both achieving good quality and generating
poor quality
27. The cost of achieving good quality includes
a. prevention costs.
b. internal failure costs.
c. external failure costs.
d. None of these answer choices is correct. a. prevention costs
28. The cost of achieving poor quality includes
a. prevention costs.
b. appraisal costs.
c. internal failure costs.
d. All of these answer choices are correct. b. appraisal costs
1. Design can provide a competitive edge by

a. bringing products to market quickly.

b. doing an even better job of satisfying customers.

c. being easier to manufacture, use and repair.

d. All these answer choices are correct. d. all these answer choices are correct
2. Which of the following is not a characteristic of an effective product design process?

a. matches product characteristics with customer requirements

b. maximizes the revisions necessary to make a design workable

c. ensures that customer requirements are met in the least costly and simplest manner

d. reduces the time required to design a new product or service b. maximizes the
revisions necessary to make a design workable
3. All of the following are characteristics of an effective design process except

a. increasing the design time for new products and services.

b. meeting customer requirements in the least costly manner.

c. matching product or service characteristics with customer requirements.

d. minimizing the number of revisions needed to make the design workable. a.

increasing the design time for new products and services
4. Product design begins with

a. a feasibility study.

b. a form design.

c. understanding the customer and identifying customer needs.

d. pilot runs and final tests. c. understanding the customer and identifying customer needs
5. If a firm's design process is too lengthy

a. a competitor may capture market share by being first to market.

b. a competitor may lose market share by being first to market.

c. a competitor may decide not to enter the market.

d. None of these answers is correct. a. a competitor may capture market share by being first
to market
6. Carefully dismantling and inspecting a competitor's product to look for design features that
can be incorporated into your own product is known as

a. concurrent design.

b. design for manufacturability.

c. benchmarking.

d. reverse engineering. d. reverse engineering

7. A feasibility study consists of all the following except

a. a market analysis.

b. an economic analysis.

c. a technical and strategic analysis.

d. a concurrent analysis. d. a concurrent analysis

8. ____________________ describe(s) what the product should do to satisfy customer needs.

a. Performance specifications

b. Benchmarks

c. Perceptual maps
d. Reverse engineering a. performance specifications
9. Creating a preliminary design that can be quickly tested and then either discarded or
further refined is referred to as

a. Benchmarking.

b. rapid prototyping.

c. concurrent design.

d. perceptual mapping. b. rapid prototyping

10. The probability that a product will perform its intended function for a specified length of
time under normal conditions is called

a. benchmarking.

b. perceptual mapping.

c. Maintainability.

d. Reliability. d. reliability
11. All of the following can improve a product's reliability except

a. simplifying product design.

b. improving individual component reliability.

c. changing the product warranty.

d. adding redundant components. c. changing the product warranty

12. Combining standardized building blocks in different ways to create unique finished
products is known as

a. rapid prototyping.

b. robust design.

c. modular design.

d. concurrent design. c. modular design

13. Functional design includes all the following except

a. reliability.

b. usability.

c. form design.

d. maintainability. c. form design

14. ____________________ is a software system that facilitates collaborative design and
development among trading partners.

a. Computer aided design

b. Collaborative product design

c. Computer aided engineering

d. None of these answer choices is correct. b. collaborative product design

15. ____________________ is a software system that assists in the creation, modification
and analysis of design.

a. Computer aided design

b. Collaborative product design

c. Computer aided engineering

d. None of these answer choices is correct. a. computer aided design

16. ____________________ is a software system that retrieves the description and geometry
of a design from a database, and tests and analyzes that design on a computer screen.

a. Computer aided design

b. Collaborative product design

c. Computer aided engineering

d. None of these answer choices is correct. c. computer aided engineering

17. ____________________ is a software system that stores, retrieves and updates design
data through the lifecycle of a product.

a. Computer aided design

b. Collaborative product design

c. Computer aided engineering

d. None of these answer choices is correct. d. none of these answer choices is correct
18. Product lifecycle management is a software system that

a. facilitates collaborative design and development among trading partners.

b. stores, retrieves and updates design data through the lifecycle of a product.

c. retrieves the description and geometry of a design from a database, and tests and analyzes
that design on a computer screen.
d. assists in the creation, modification and analysis of design. b. stores, retrieves and
updates design data through the lifecycle of a product
1. Which of the following is not a characteristic of a service?

a. Intangible

b. Variable output

c. Difficult to emulate

d. Perishable c. difficult to emulate

2. Which of the following is not a characteristic of a service?

a. Tangible

b. Variable output

c. Difficult to emulate

d. Perishable a. tangible
3. A grocery store is an example of a

a. service factory.

b. mass service.

c. service shop.

d. professional service. b. mass service

4. A teacher is an example of a

a. service factory.

b. mass service.

c. service shop.

d. professional service. c. service shop

1. Achieving a company's strategic goals for quality and customer satisfaction require
a. team work.

b. group participation.

c. both team work and group participation.

d. None of these answer choices is correct. c. both team work and group participation
2. Which of the following is not a serious disadvantage of scientific management?
a. workers become bored
b. opportunities to acquire new skills sets is limited
c. workers are required to perform repetitive motions
d. worker output is increased d. worker output is increased
3. Motivation is a willingness to work hard because doing so
a. satisfies employer needs.
b. satisfies employee needs.
c. satisfies both employee and employer needs.
d. None of these answer choices is correct. b. satisfies employee needs
4. Which of the following elements has not been shown to improve motivation?
a. fair treatment of workers
b. negative feedback and punishment
c. empowerment
d. restructuring of jobs b. negative feedback and punishment
5.All of the following are advantages of task specialization except

a. increased output.

b.lower labor costs.

c. reduced boredom.

d.minimal training. c. reduced boredom

6. The development of the assembly line by Henry Ford is based on the principles of
a. scientific management.
b. mass production.
c. both scientific management and mass production.
d. None of these answer choices is correct. c. both scientific management and mass
production
7. Which of the following is not a contemporary trend in human resource management?
a. cross training
b. flexible work schedules
c. telecommuting
d. reduced work week for full time employees b. flexible work schedules
8.Assigning a worker a complete unit of work with clearly defined start and end points is
referred to as

a. vertical job enlargement.

b.job rotation.

c. horizontal job enlargement.

d.empowerment. c. horizontal job enlargement

9.Allowing employees more control over their own work and some of the supervisory
responsibilities is known as

a. vertical job enlargement.

b.empowerment.

c. horizontal job enlargement.

d.cross training. a. vertical job enlargement
10. ______________ gives employees the responsibility and authority to make decisions.

a. Cross training

b.Empowerment

c. Job rotation

d.Horizontal job enlargement b. empowerment

11. Advantages of empowerment include all of the following except

a. more attention to product quality.

b.higher productivity.

c. abuse of power.

d.more satisfying work. c. abuse of power

12. Empowerment involves giving employees _________________ to make decisions.

a. responsibility
b. authority
c. both responsibility and authority
d. None of these answer choices is correct. c. both responsibility and authority
13. Advantages of telecommuting include all of the following except

a. reduced turnover.

b.decreased absenteeism and leave usage.

c. flexible work schedules.

d.direct visual surveillance of employees. d. direct visual surveillance of employees

14. A trend among service companies, in particular, is the use of
a. temporary and part-time employees.
b. telecommuting.
c. flexible work schedules.
d. teamwork. c. flexible work schedules
15. Which of the following developments has resulted in global diversity issues?
a. globalization of companies
b. global teams
c. global outsourcing
d. All of these answer choices are correct. d. all of these answer choices are correct
16. The process of creating a work environment where employees can contribute to their full
potential is
a. diversity.
b. equal opportunity.
c. affirmative action.
d. None of these answer choices is correct. b. equal opportunity
17. Setting goals and timetables to increase the level of participation by women and
minorities to attain parity levels in a company's workforce is called
a. diversity.
b. equal opportunity.
c. affirmative action.
d. None of these answer choices is correct c. affirmative action
18. Managing ___________________ includes education, awareness, communication,
fairness and commitment.
a. diversity
b. equal opportunity
c. affirmative action
d. None of these answer choices is correct. a. diversity
19. The elements of job design include

a. task analysis.

b.worker analysis.

c. environmental analysis.

d.All of these answer choices are correct. d. all of these answer choices are correct
20. Determining how tasks fit together to form a job is referred to as

a. worker analysis.

b.task analysis.

c. environmental analysis.

d.ergonomics. b. task analysis

21. _________________ refers to the physical location of a job and the requisite
surroundings.

a. Task analysis

b. Worker analysis

c. Methods analysis

d. Environmental analysis d. environmental analysis

22. ______________ involves the horizontal movement of a worker between two or more
jobs.

a. Cross training

b.Empowerment

c. Alternative workplace

d. Job rotation d. job rotation

23. The amount of time a worker and a machine are working or idle on a job is illustrated by
a

a. process flowchart.

b.worker analysis.

c. task analysis.

d.worker-machine chart. d. worker-machine chart

24. The gradual shift from treating employees as a replaceable part to embracing them as a
valuable resource was primarily brought about by the trend toward

a. globalization.

b.quality management.

c. scientific management.

d.customization. b. quality management

106. An incentive plan that encourages employees to achieve a company's goals and
objectives is referred to as

a. a piece-rate wage plan.

b.gainsharing.

c. profit sharing.

d.overtime. b. gainsharing
107. The two traditional forms of employee compensation include
a. hourly wage and individual incentive.
b. hourly wage and profit sharing.
c. salary and individual incentive.
d. hourly wage and gainsharing. a. hourly wage and individual incentive
108. In a piece-rate wage system a worker's pay is based on

a. total output.

b. job rating.

c. job classification.

d.total time. a. total output

109. __________________ is an incentive plan that joins employees in common to achieve
company objectives in which they share in the gains.
a. Profit sharing
b. Gainsharing
c. Performance pay
d. None of these answer choices is correct. b. gainsharing
116. Fitting the task to the employee in a work environment is known as

a. motivation.

b.worker analysis.

c. ergonomics.

d.task analysis. c. ergonomics

118. Which of the following would most likely be used to redesign or improve existing jobs?

a. methods analysis

b technology analysis

c environmental analysis

d task analysis a. method analysis

121. Motion study, the study of the individual human motions used in a task, was developed
by

a. Henry Ford.

b.F. W. Taylor.

c. Frank and Lillian Gilbreth.

d.Frederick Herzberg. c. Frank and Lillian Gilbreth

124. ___________ illustrate the improvement rate of workers as a job is repeated.

a) Learning curves

b) Process curves

c) Learning charts

d) Process charts a. learning curves

Operations Management is concerned with all of the above

The transformation process associated with health care is best described as physiological
Which of the following is not one of the four primary functional areas of a firm? Legal
The production system that prizes flexibility over efficiency and quality over quantity is
known as Lean production
Dividing a job into a series of small tasks each performed by a different worker is known as
Division of labor
Linear programming, simulation, and waiting line theory are most closely associated with
which era in the historical development of operations management? Operations
research
The ratio of a firm's monthly output to the number of labor hours used in the same month
would be a measure of Labor productivity
The degree of competitiveness in an industry can affect All of the above
Which of the following is not an event or concept associated with the quality revolution?
PERT/CPM
Japanese firms used the concept of __ to convert from mass production to lean production
Just-in-time
Mass production is well suited to all of the following except Adapting quickly to
changes in market demand
All of the following are characteristics of today's consumer market except Longer product
life cycles
All of the following are responsibilities of operations managers except Acquiring
financial resources
The work of W. Edwards Deming is most closely associated with TQM
All of the following are transformation processes except Optimal
fundamentally, operations are concerned with All of theses
A firm who is adept to recognizing global windows of opportunity, acting on those very
quickly, with tight linkages can be said to be competing on speed
The major factors impacting globalization of the supply chain include all of the following
except Fall of communism
Companies go global to All of the above
A manager of a global supply chain is concerned with all of the following except All of the
above are concerns
Which of the following is not a dimension of quality for a manufactured good? Courtesy
The probability that a product will operate properly within an expected time frame is the
dimension of quality known as reliability
The degree to which a product meets pre-established standards is known as
conformance
Making sure that the product meets the design specifications during production is referred to
as Quality of conformance
___ advocated continuous improvement to the production process to achieve conformance to
specifications and reduce variability W. Edwards Deming
W. Edwards Deming believed that primary responsibility for quality improvement rested with
Both the employees and management of the firm
W. Edwards Deming's overall philosophy for achieving quality is embodied in His 14
points
Directly involving employees in the quality-management process is referred to as
participative problem solving
All of the following are dimensions of quality for manufactured products, except feasibility
All of the following are parts of DMAIC, except improvise
The costs associated with developing a quality management system are known as Quality
planning costs
___ failure costs include scrap, rework, and downtime Internal
Which of the following quality tools display major causes of poor quality on a graph?
Fishbone diagram
Which of the following quality tools displays the frequency of data related to a quality
problem? histogram
Which of the following quality tools display the relationship between two variables on a
graph? Scatter diagram
Which of the following quality tools displays the steps in a process on a graph? Process
flow chart
If a sample of 40 units of output found 500 defects, then the center line for monitoring the
average number of defects per unit of output would be c- = 12.5
If a sample of 40 units of output found 500 defects, then the 3-sigma upper control limit for
the c-chart would be 23.11
If a sample of 40 units of output found 500 defects, then the 3-sigma lower control limit for
the c- would be 1.89
A company randomly selects 100 light bulbs every day for 40 days from its production
process. If 600 defective light bulbs are found in the sampled bulbs then the estimate for the
process average defective would be 0.150
Which of the following control charts is based on the number of defects within a sample? c
If the quality of a process's output is determined by the number of defects within a small
sample, use a(n) ___ control chart. c
Which of the following control charts is used to monitor the number of defective items within
a sample? p
If the quality of a process's output is determined by classifying the output as being defective
or not defective, use a(n) ___ control chart p
Which of the following control charts are based on sample size as small as one? c
Which of the following control charts are often based on sample sizes larger than one
hundred? p
Which of the following charts are frequently used together to monitor and control quality?
r/xbar
If the quality of a process's output is determined by the difference between the largest and
smallest values in a sample, use a(n) control chart R
If the quality of a process's output is determined by the average value of a sample, use a(n)
___ control chart x bar
Which of the following control charts is used to control the variation within samples? R
Which of the following is not a characteristic of an effective product design process?
Maximizes the revisions necessary to make a design workable
All of the following are characteristics of an effective design process except ___. Increasing
the design time for new products and services
The design process begins with ___ understanding the customer and identifying customer
needs
Carefully dismantling and inspecting a competitor's product to look for design features that
can be incorporated into your own product is known as ___ Reverse enginerring
Creating a preliminary design that can be quickly tested and then either discard or further
refined is referred to as ___ Rapid prototyping
The probability that a product will perform its intended function for a specified length of time
under normal conditions is called ___. Reliability
Which of the following is a quantitative measure of maintainability? Mean time to
repair (MTTR)
Which of the following is a quantitative measure of reliability? Mean time between
failures (MTBF)
All of the following can improve a product's reliability except ___. Changing the product
warranty
simultaneously designing new products and the process to produce them is known as ___.
Concurrent design
Combining standardized building blocks in different ways to create unique finished products
is known as ___. Modular design
Failure mode and effects analysis (FEMA) is ___. A systematic approach to analyzing the
causes and effects of product failures
Quality function deployment (QFD) is ___. A structured process that translates the voice of
the customer into technical design requirements
A structured process that translates the voice of the customer into technical design
requirements is known as ___. Quality function deployment (QFD)
Fault Tree analysis (FTA) is ____. A visual method for analyzing the interrelationships
among failures
A company produces a product consisting of two components arranged in series with
probabilities of .97 and .90. Both components must function for the product to function. To
achieve an overall reliability of at least 0.95 without changing the reliability of the 1st
component, the reliability of the 2nd component would need to be __. At least 0.98
A company produces a product consisting of two components arranged in series with
reliabilities of R1 and R2. If both components must function for the product to function, then
the two components would need R1=0.95 and R2 = 0.95
A product consists of three components arranged in series with reliabilities of .95, .90 and
.95. If all three components must function for the product to function then the product's
overall reliability is approximately __. 0.812
If a product fails 10 times in 500 hours of operation, then its mean time between failures
(MTBF) is ___. 50 hours
If a piece of equipment has a mean time between failures (MTBF) of 500 hours with a mean
time to repair (MTTR) of 10 hours, then its uptime or average availability would be __.
0.980 or 98%
The system availability for a system with a mean time between failures (MTBF) of 100 and a
mean time to repair (MTTR) of 50 hours would be ___. 95.24%
which of the following will not improve design for manufacture and assembly? Designing
parts for limited, unique uses
As a part of design for robustness Taguchi believes that ____. All of the above
The ability to meet present needs without compromising those of future generations is a
concept in product design known as: sustainability
All of the following are principles of green product dosing except Use new materials
which of the following is not a characteristic of a service? Difficult to emulate
which of the following is not a characteristic of a service also? tangible
A dentist office is an example of a ___ professional services
A airline is an example of a ____. service factory
A grocery store is an example of a ___. Mass service
A teacher is an example of a ____. Service shop
___ work formed the basis for the mathematical analysis of waiting lines. A. K. Erlang's
Which of the following is not a basic element of a waiting line? Cost of waiting
The ____ is the source of customers for a waiting line system. Calling population
The number of arrivals per unit of time at a service facility can frequently be described by a
___. Poisson distribution
The ___ refers to the order in which waiting customers are served. Queue discipline
The number of channels in a queuing process ____. Denotes the number of parallel servers
for servicing arriving customers
In general, as the number of servers in a waiting line system increases ____. Service
cost increases and waiting cost decreases
If the average time to serve a customer is 3 minutes, then the service rate is _____. 20
per hour
If, on average, it takes 90 seconds to serve a customer then the hourly service rate is ___. 40
per hour
In a waiting line system, the ___ reflects the probability that the server is busy and the
customer must wait. utilization factor
Consider an espresso stand with a single baristo. Customers arrive at the rate of 20 per hour
according to a Poisson distribution. Service times are exponentially distributed with a mean
service time of 2 minutes per customer. What is the service rate per hour for the espresso
stand? 30 customers
Consider an espresso stand with a single barista. Customers arrive to the stand at the rate of
28 per hour according to a Poisson distribution. Service times are exponentially distributed
with a service rate of 35 customers per hour. The probability that the server is busy is ___.
0.80
Consider an espresso stand with a single barista. Customers arrive to the stand at the rate of
28 per hour according to a passion distribution. Service times are exponentially distributed
with a service rate of 35 customers per hour. The probably the server is idle is __. .20
Consider an espresso stand with a single barista. Customers arrive to the stand at the rate of
28 per hour according to a Poisson distribution. Service times are exponentially distributed
with a service rate of 35 customers per hour. The average number of customers in the system
(i.e. waiting and being served) is ___. 4.0
Consider an espresso stand with a single barista. Customers arrive to the stand at the rate of
28 per hour according to a Poisson distribution. Service times are exponentially distributed
with a service rate of 35 customers per hour. The probability that there are exactly 3
customers in the system is ___. .1024
Consider an espresso stand with a single barista. Customers arrive to the stand at the rate of
28 per hour according to a Poisson distribution. Service times are exponentially distributed
with a service rate of 35 customers per hour. The average time in minutes a customer spends
waiting in line for service is ___. .114 minute
Consider an espresso stand with a single barista. Customers arrive to the stand at the rate of
28 per hour according to a Poisson distribution. Service times are exponentially distributed
with a service rate of 35 customers per hour. The average time in minutes a customer spends
in the system (i.e. waiting and being served) is ___. .143 minute
A firm's process strategy defines all of the following except its ___. Process selection
The extent to which the firm will produce the inputs and control the outputs of each stage of
the production process is known as ___. Vertical integration
The ease of adjusting resources in response to changes in demand defines firm's ____.
Process's flexibility
Which of the following is not a potential risk associated with a project? Extensive learning
curve benefits
variable demand and small to moderate quantities produce to order are characteristics usually
associate with ____. Batch production
Most of the operations in batch production involve ___. fabrication
A print shop is an example of which of the following process choices? Batch production
Which of the following is not an advantage of batch production Frequent changes in
product mix
disadvantages of batch production include all of the following except ___. flexibility
Complex scheduling problems are most likely to occur with which process type? Batch
production systems
Which of the following is not a characteristic of mass production? high product variety
Mass production systems tend to employ specialized equipment and limited labor skills
One disadvantage of mass production is its ___. Lack of repsonsivness
steel, paper, paints, and chemicals are examples of products that use ____ Continuous
production
As process selection moves up the diagonal from project t0 continuous production ____
Demand volume increases
A company is considering producing a product for a new market. The fixed costs required for
manufacturing and delivering the product is $50,000. Labor and material costs are estimated
to be approximately $25.00 per product. If the product is sold for $35.00 each, the firm's
break-even volume would be ____. 5,00 units
If a firm can sell a product for $40.00 each, then what is the volume needed to breakeven if
the fixed cost of production is $125,000.00 and labor and material costs are $30.00 per item?
12,500
A company is considering producing an time that can be sold for $37.50 per unit. If the fixed
costs for setting up production are $225,000 and the variable costs per unit for the item is
$35.00 and the break-even volume for this time is ____. 90,000 units
all of the following are factors influencing the outsourcing decision except ____. Product
variety.
The product-process matrix includes all of the following process types except ___ Stable
production
Which of the following is NOT associated with the sourcing continuum? In-house
production

Which of the following are characteristics of an effective product design? match product
characteristics with customer requirements, ensure requirements are met in a costly manner,
and reduce time required to design new product or service
All of the following are characteristics of an effective design process meeting customer
requirements in the least costly manner, matching product or service characteristics with
customer requirements, minimizing the number of revisions needed to make the design
workable
The design process begins with understanding the customer and identifying customer
needs
Carefully dismantling and inspecting a competitor's product to look for design features that
can be
incorporated into your own product is known as reverse engineering
Creating a preliminary design that can be quickly tested and then either discarded or further
refined is referred to as rapid prototyping
The probability that a product will perform its intended function for a specified length of time
under normal
conditions is called realiabiltiy
Which of the following is a quantitative measure of maintainability? Mean time to
repair
Which of the following is a quantitative measure of reliability? Mean time between
failures
All of the following can improve a product's reliability simplifying product design,
improving individual component reliability, and adding redundant components
Simultaneously designing new products and the processes to produce them is known as
concurrent design
Combining standardized building blocks in different ways to create unique finished products
is known
as modular design
Failure mode and effects analysis (FMEA) isa systematic approach to analyzing the causes
and effects of product failures
Quality function deployment(QFD) is structured process that translates the voice of the
customer into technical design requirements
A structured process that translates the voice of the customer into technical design
requirements is known
as quality function deployment (QFD)
Fault tree analysis (FTA) is a visual method for analyzing the interrelationships among
failures
Which of the following will improve design for manufacture and assembly?
minimizing the number of parts and subassemblies, using standard parts when
possible, and designing parts for many, varied uses
As a part of design for robustness Taguchi believes that consistent errors can be more
easily corrected than random errors, parts within tolerance limits may produce assemblies
that are not within limits, and consumers have a strong preference for product characteristics
near their ideal value
The ability to meet present needs without compromising those of future generations is a.
concept in product
design known as: sustiainability
All of the following are principles of green product design Use less materials, involve the
entire supply chain, and change the paradigm of design

MRP is used for independent demand items. False

Feedback: It is used for dependent demand items (i.e., assembled goods).

MRP applications are limited to manufacturing; services do not use it. False
Pegging can be used to identify the supplier that provided a specific component of an item.
False

Feedback: It is used to show what parent items have generated the demand for a component.
With lot-for-lot ordering, planned order releases equal net requirements. True
Planned order releases and planned order receipts must be equal. True
Planned order releases differ from planned order receipts in terms of timing, but not in terms
of quantity. True
A bill of materials contains a listing of all the materials needed to produce an item.
True
Capacity requirements planning involves determining short-range capacity requirements.
True
A regenerative system updates MRP records continuously. False

Feedback: Records are updated periodically.

MRP II is an expanded approach to production resource planning. True
Backflushing refers to cleaning out the system in preparation for the next job. False

Feedback: It refers to exploding an end items bill of materials to determine the quantities of
components that were used to assemble it.
The planned order releases at each level of MRP are one determinant of the gross
requirements at the next lower level. True
MRP is typically part of an ERP system. True
MRP is primarily used in this setting: batch
Which of these describes lot sizing? Determining how much to order
In MRP, planned order receipts must always equal planned order releases
Which is true about scheduled receipts? They are orders previously placed, and not yet
completed or received.
In MRP, the listing of all the subassemblies and components needed to produce a unit of an
end item is called the: bill of materials
Which one is not a primary report for MRP? Exceptions.

Feedback: Exception reports are secondary reports.

Low level coding refers to Structuring a bill of materials so that multiple occurrences of an
item coincide with the lowest level that the item occurs.
In MRP, which one of these could not generally be a factor in determining the net
requirements of a component? Planned Order Releases

Feedback: Net requirements are determined by the other three choices.

Closed loop MRP relates most closely to: Capacity planning
A key goal of MRP is to: Match supply and demand. (match what is on hand with what is
needed to be on hand.)
Which one is not included in a list of ERP hidden costs? High purchase costs.

Feedback: Purchase costs are not "hidden."

Which one would not be a reason for using ERP, or would all be reasons? all are reasons.
MRP is used for: dependent demand items.
If lot-for-lot ordering is used, then planned order releases will be equal to: net requirements.
Which of the following is not a direct input into MRP? the aggregate plan
Which of these describes lot sizing? Determining: how much to order
In MRP, planned order receipts must always equal: planned order releases.
Which one of these is a secondary, rather than a primary, report that will result from MRP?
exceptions
Low-level coding refers to: structuring a bill of materials so that multiple occurrences of an
item coincide with the lowest level at which the item occurs.
In MRP, which one of these would not generally be a factor in determining the net
requirements of a component? planned order releases
Closed-loop MRP relates most closely to: capacity planning.
Two units of subcomponent Z go into each unit of component Q, and Z doesn't go into
anything other than Q. Z's lead time is one week. Q's lead time is two weeks. Q has a planned
order release of 400 units in week 5. As regards Z, therefore, ____________ in week
__________ are 800. gross requirements; 5
Product Alpha consists of two units of component X and four units of component Y.
Component X consists of four units of component Y and two units of component Z.
Component Y's lead time is two weeks, there are no units of component Y on hand, and there
are no scheduled receipts for component Y. There are 400 units of component X on hand.
Neither X nor Y go into any other item or subcomponent. If 100 units of Alpha are to be
produced beginning in week 4, then __________ units of component Y will need to be begun
in week __________. 400; 2