QUESTION PAPER ARE EXPLAINED AT BOTTOM OF THIS FILE.

ANSWER

1. E
2. a. 38.6
b. 38
c. September-39.552 & October-40.428
d. Simple exponential smoothing will be more responsive
Explanation: Also see the attached excel file for solution.
a. Forecast for September= w1 (August) + w2 (July) + w3 (June) + w4 (May)
= 0.4 (40) + 0.4 (36) + 0.1 (38) + 0.1 (44) = 38.6
b. Forecast for September= (40+36+38) /3 = 38
c. Forecast for September=
F t =αY t−1 +(1−α )F t−1
We have given forecasted value of June so further we calculate forecasting
value for July, August and September by using above equation as shown in excel. Now for forecasting
the sales of October we don’t have the Actual sale of September (previous month) so we have to use 4-
month moving average method for it. In that method we take the average of last 4 month. It is shown in
excel file
Computational solution is shown in excel file.
d. Smoothening constant lies between 0 and 1. As value of smoothening
constant is 0.3(close to zero) slower the forecast (lesser the responsiveness) as compared to part b will
be to adjust to forecast errors (i.e. greater the smoothening)

3. C
Explanation: N = 67/6 = 11.16 round up to 12 stations, and TE = 67/ (12 x 6) = 67/72 = .93056
or 93.1% TE.
Computational solution is shown in excel file.
4. True
5. False
6. C
Explanation: Low rates of capacity utilization are most appropriate when the degree of
uncertainty (in terms of when service is needed) and the importance of being able to provide
services when needed are both high. Emergency services (a hospital E.R., a fire department, a
Coast Guard search and rescue helicopter, etc.) are examples of situations when low utilization is
desirable.
7. a. A
b. A
Explanation:
a.
The expected value of decision option A = 45 * 0.25 + 40 * 0.75. The
expected value of decision option A = $ 41.25
The expected value of decision option B = 10 * 0.25 + 50 * 0.75. The
expected value of decision option B = $ 40
The expected value of decision option B = 20 * 0.25 + 10 * 0.75. The
expected value of decision option C = $ 12.5
The expected value of decision option B = 60 * 0.25 + 30 * 0.75. The
expected value of decision option D = $ 37.5
So we select A for better profit
b.
If the probabilities of each demand situation were not known then according to
maximin decision criterion we choose minimum from all the column so we
select 40, 10, 10, 30 and now we select maximum of that so we also select A
for better profit.
Computational solution is shown in excel file.
8. B
Explanation:
Computational solution is shown in excel file.
Loan applications screened per worker for each month are as per below:
April: 500/5 = 100
May: 525/5 = 105
June: 552/6 = 92
July: 570/6 = 95
So, for May labor productivity the highest.
9. True
10. D
11. C
12. True
13. True
14. True
15. D
16. a.
b.
c.
d.
Explanation:
Computational solution is shown in excel file.
λ =5/hr µ=8/hr
a. W=1/ (µ - λ) = 0.3333 hr = 20 minutes
b. Lq = λ2/ µ (µ - λ) = 1.042 customer
c. Mean utilization percentage = λ / µ = 5/8 = 0.625 *100 = 62.5 %
d. After adding another station customer have to wait for 0.014 hr = 0.812 minutes
17. True
18. E
19. C
Explanation: Computational solution is shown in excel file.
Select that period as answer where TS is more than the specified limit.

20. C.
Explanation: TS = RSFE/MAD, so in period 3, TS = 58/16 = 3.6 (which is < 4), while in period 4,
TS = 86/20 = 4.3, which is > 4 and thus indicates an out of control forecast.
21. True
22. True
23. A
Explanation: Average error = [(50-55) + (60-65)]/2 = [-5 + (-5)]/2 = -10/2 = -5,
and MAD = [|-5| + |-5|]/2 = [5 + 5]/2 = 10/2 = 5
Computational solution is shown in excel file.
24. B
25. False
26. E
Explanation: (144+140)/1.12/2 = 126.8 near by 133
27. True
28. a. 33 minutes b. $ 123.2
Explanation: Computational solution is shown in excel file.
29. True
30. True
31. E
32. C
Explanation: Computational solution is shown in excel file.
33. Explanation:
DFMA: It stands for Design for Manufacture and Assembly. DFMA is the combination of two
methodologies; Design for Manufacture, which means the design for ease of manufacture of the
parts that will form a product, and Design for Assembly, which means the design of the product
for ease of assembly.
Case of PUFF-SHOES:- Puff shoes is a small enterprise dealing with footwear production.
Main Products: Casual Shoes – Sports Shoes and Sneakers
Product is sold in wholesale market
Case Objective:-Profit maximization of the whole plant through the optimal machine utilization
and simultaneously meeting the demand every time.
Proposed Changes:-Entire data regarding costs involved (material cost, labour cost, electricity
costs etc) ,revenues and machine capacity was taken from company and analyzed. Proposed
changes in form as which shoes should be manufactured by which machine (change in assembly
line)in coming month based on forecasted demand.
Benefits:-Firm was able to meet all its demand on time using optimal labour and machines. It
increases labour and machine productivity .Firm receives good feedback from its customers.

34. True
35. Explanation:
Line of visibility:-It separates the onstage from the Backstage actions. Everything that appears
above the line of visibility can be seen by the customers, while everything under the line of
visibility is invisible for the customers. For e.g.: in a telephone call there is an action between an
employee and a customer, but they don’t see each other.
Poka Yoke:- A poka-yoke is any mechanism in a lean manufacturing process that helps an
equipment operator avoid (yokeru) mistakes (poka). Its purpose is to eliminate product defects
by preventing, correcting, or drawing attention to human errors as they occur
Poka-Yoke in Service Industry:- Some poka-yoke devices and procedures that warn and control
customer actions are chains to configure waiting lines, locks on airline lavatory doors that must
be turned to switch on lights (and, at the same time, activate the “occupied” sign), height bars at
amusement rides to ensure that riders do not exceed size limitations.
Real Life Example: - An example of a low-cost technology for fail-safing is the use of pagers at
the three-hundred-seat Cove Restaurant in Deerfield Beach, Florida. Since there is often a forty-
five-minute wait for a table, the mâitre d’ provides customers with small pagers that vibrate when
activated from the master seating control board at the host stand. This allows guests to roam
outside without missing their table call.

36. True
1. Which of the following statements does not characterize the quality function deployment (QFD) process?
A. QFD helps marketing and engineering work together on design decisions.

B. QFD helps identify the product characteristics that are important to the customer.

C. QFD uses a "house of quality" matrix to show how customer requirements relate to the technical
characteristics of a product.
D. QFD uses customer input to identify how a product performs relative to competitors' products.

E. Select this answer if you think that all of the above answers (A, B, C, D) correctly characterize the QFD
process.

1 points
QUESTION 2
1. The following gives the number of couches sold during each of the last four months by a
furniture store.
Month Couches Sold
May 44
June 38
July 36
August 40
a. Using a four-period weighted moving average, with weights w1 = .4, w2 = .4, w3 = .1 and
w4 = .1, forecast the number of couches to be sold in September.
b. Using a three-period simple moving average, forecast the number of couches to be sold in
September.
c. Using simple exponential smoothing with an initial forecast for June of 42 and smoothing
constant α = 0.3, forecast the number of couches to be sold in September. If you also had to
make a forecast for October (two months from now), what would it be?
d. Which of the forecasting methods used in part (b) and part (c) above will be more responsive
to changes in demand?
10 points
QUESTION 3
1. A product requires 32 distinct steps to manufacture, with a total work content of 67
minutes. Demand for the product requires that the single assembly line must produce
one unit every 6 minutes. If it is possible to balance the line using the theoretical
minimum number of workstations, what level of throughput efficiency (TE) will be
achieved?
A. 100% TE

B. between 94.6% TE and 99.9%

TE
C. between 92.1% TE and 94.5%
TE
D. between 90.0% TE and 92.0%
TE
 E. less than 90.0% TE

1 points

QUESTION 4
1. The primary purpose in building a house of quality matrix is to aid a cross-functional
team in making decisions related to marketing and engineering design decisions, with
the goal of creating a product that will satisfy customers.

True

False

1 points
QUESTION 5
1. The sharing of information between customers and suppliers in a supply chain will de crease both variability and
uncertainty, enabling companies in the supply chain to reduce their inventories and shorten delivery lead times.

True

False

1 points
QUESTION 6
1. Although some sources say that the best operating point for a service facility is at approximately 70% of the
maximum capacity, the optimal utilization rate depends on the context. In which of the following situations would it
be most appropriate to operate at a relatively low percent of maximum capacity?
A A dry cleaning (laundry) operation.
.
B. Processing membership applications submitted by mail.
C. The Ashland fire department.
D The Columbus Crew stadium (seating for home games.)
.
E. A flight on United Airlines.

1 points
QUESTION 7
1.
The following table lists the anticipated profits associated with four alternate product innovations using two possible
scenarios: low demand (25% probability) and high demand (75% probability.)

Product Innovation A B C D
Profits with Low Demand (p = .25) 45 10 20 60
Profits with High Demand (p = .75) 40 50 10 30
 a. Calculate the expected value for each of the four decision options (A, B, C and D). Based on the
expected value criterion, which product innovation (decision option) should be
selected?A
b. If the probabilities of each demand situation were not known in this case, which
option should be selected if the decision maker applies the maximin decision criterion?
A

10 points

QUESTION 8
1. The following table gives the number of applications processed during the past four
months. In which of the four months is labor productivity the highest?
Month April May June July
Loan
Applications 500 525 552 570
Screened
Number
5 5 6 6
of Workers
2.
A April
.
B. May

C. June

D July
.
E. Labor productivity is identical in each of the four months.

1 points
QUESTION 9
1. Although many consumers receive a large quantity of sales material through the mail,
the service-system design matrix indicates that some form of face-to-face contact
provides a lower sales opportunity than does mail contact.

True

False

1 points
QUESTION 10
1. Consider two firms that provide the same product to customers. Company A uses a make-to-order (MTO) process,
while Company B uses a make-to-stock (MTS) process. Which of the following statements about the way each firm
meets customer demand is not true?
A. Company A (MTO)will have a longer delivery lead time than will Company B
(MTS)in most cases.
B. Company A (MTO)will be better able to provide a customized product than will
 Company B (MTS).
C. While making the product, Company A (MTO)will have a greater need to keep
track of individual customer orders and requirements than will Company B (MTS).
D. When determining production schedules, Company A (MTO)will rely more heavily
on forecasts of customer demand than will Company B (MTS).
E. Both Company A and Company B may choose to sell only standard products to
their customers.
1 points
QUESTION 11
1. Delaying the process step that differentiates the product to a point late in the supply
chain is called
A. an efficient supply chain.

B. global positioning
sourcing.
C. process
postponement.
D. the bullwhip effect.

E. an outsourcing
strategy.

1 points
QUESTION 12
1. From the perspective of a company in the middle of a long supply chain, its customer relationship processes include
the interaction its sales force has with its customers.

True

False

1 points
QUESTION 13
1. When developing its operations strategy, a manufacturing or service organization should identify and leverage
its core capabilities, the set of skills that differentiate it from its competitors.

True

False

1 points
QUESTION 14
1. The value analysis and value engineering processes are intended to identify product changes that can reduce costs
through actions such as eliminating nonstandard components or unnecessary design features.

True

False
 1 points
QUESTION 15
1. An operation (routing) sheet does which of the following?
A. It shows how parts go together and the order of assembly.
B. It shows an "exploded" view of the product and its components.
C. It defines symbolically, and in great detail, the operations performed.
D. It specifies the sequence of machines or workcenters used to assemble the
product.
E. It shows the route taken from the supplier to the warehouse.

1 points

QUESTION 16
1. NOTE: IF DESIRED, YOU CAN USE THE MATH EDITOR (the fx button, next to the
"Mashups" button) TO WRITE FORMULAS OR USE GREEK SYMBOLS IN YOUR
ANSWER.
An airport concourse has a shoe shine station. During a typical weekday morning, customers
arrive at a rate of 5 per hour (approximately one new customer arrives every 12 minutes), and the
arrivals follow a Poisson distribution. The mean service rate for shining shoes follows an
Exponential distribution, and is 8 customers per hour (it takes approximately 7.5 minutes to
complete a shoe shine.)
a. What is the mean (average) time in minutes (note that there are 60 minutes in an hour) that a
customer spends in the system (waiting in line at the shoe shine station, and then getting their
shoes shined)?
b. The airport wants to know how crowded the area around the shoe shine station will be during
a typical day. What is the mean number of customers that are in line, waiting to get their shoes
shined?
c. What is the mean utilization percentage of the shoe shine station (the server in this system)?
d. Knowing that passengers in an airport are often impatient, the airport decides to add a second
shoe shine station at the same location (there are now two “servers” in this expanded system). As
a result, the waiting time should be shorter. On average, how long will a customer now have to
wait in line to get their shoes shined?

15 points
QUESTION 17
1. The quality of a product is considered to be an order winner if quality is the deciding factor in the customer's
decision to purchase the product.

True

False
 1 points
QUESTION 18
1. Which of the following answers characterizes a continuous flow process most
accurately?
A. high volume production, limited variety of products, and high labor cost per unit

B. high volume production, large variety of products, and low labor cost per unit

C. low volume production, limited variety of products, and low labor cost per unit

D. low volume production, large variety of products, and high

labor cost per unit
E. high volume production, limited variety of products, and low
labor cost per unit

1 points

QUESTION 19
1. Given the following information (RSFE and MAD) on the quality of a forecast, and using the tracking signal (TS)
range presented in class, in which period would the tracking signal first classify the forecast as being "out of
control"?
Period RSFE MAD
3 58 16
4 78 19
5 84 18
6 74 18
2.
A. in period 3.

B. in period 4.

C. in period 5.

D. in period 6.

E. This forecast would not be classified as being out of control.

1 points
QUESTION 20
1. A copy center served 1,841 customers last week. The center was open 7 days per
week, 8 hours per day, and runs 1 shift per day. There are 4 employees each working
an 8-hour shift per day. What was the labor productivity at the copy center last week?
A. 2.1 customers per labor hour.
B. 4.1 customers per labor hour.
C. 8.2 customers per labor hour.
D. 16.4 customers per labor hour.
 E. 57.5 customers per labor hour.

1 points
QUESTION 21
1. When evaluating the quality of a forecast, it is possible to have Bias < 0 and MAD > 0 at
the same time.

True

False

1 points
QUESTION 22
1. When a company uses a make-to-stock production approach, the scheduled production
levels are based on a forecast of demand.

True

False

1 points
QUESTION 23
1. Actual sales in April and May were 50 and 60 units, respectively. Forecast sales for
those same two months were 55 and 65. Which of the following statements about the
two forecasts is true?
A. The average error is -5 and the MAD is 5.

B. The average error is 0 and the MAD is 5.

C. The average error is 0 and the MAD is 0.

D. The average error is 5 and the MAD is 5.

E. None of the above statements (a,b,c,d) is

true.

1 points
QUESTION 24
1. Which of the following is not one of the seven characteristics of a well-designed service system?
A. It is robust.
B. It ensures complete independence and separation between the "back office" and
the "front office."
C. It is cost-effective.
D. Itmanages the evidence of service quality so that customers see the value of the
service provided.
E. Select this answer if you think that all of the above (a,b,c,d) are characteristics of
a well-designed service system.
1 points
 QUESTION 25
1. Baggage handling, beginning with the point where the passenger's suitcase has been
labeled and placed on the conveyor belt, is considered a high contact operation at an
airline.

True

False

1 points
QUESTION 26
1. Using the data given in the previous problem (and reproduced in the table below), if the seasonal index for quarter 3
is 1.12, what forecast (rounded to the nearest integer) should be made for quarter 3 of 2016?
Quarter 2014 2015
Q1 120 113
Q2 135 132
Q3 144 140
Q4 115 118
A. 140

B. 143

C. 115

D. 118

E. 133

1 points
QUESTION 27
1. In a waiting line situation with multiple servers, Poisson arrivals, random service times
(approximated by the exponential distribution), a relatively large pool of potential
customers, and a first-come, first-served queue discipline, the problem is complex
enough that the best way to find the operating characteristics is to develop a simulation
model.

True

False

1 points
QUESTION 28
1. A time study analyst observes a worker over a period of time and calculates that the
worker required 30.0 minutes per unit produced. The worker was rated by the analyst at
a 120 percent performance rating, and an 10 percent allowance for personal time and fatigue
applies. (1) What is the standard time for this task? (2) If a worker managed to produce
 16 units in an eight-hour day, what would their day's pay be if the base rate is $14 per
hour, and the premium payment system paid on a 100 percent basis? 10 points

QUESTION 29
1. Total Factor Productivity (TFP) is calculated as:TFP = Input/(Labor + Capital + Materials
+ Energy)

True

False

1 points
QUESTION 30
1. In increase in input from one year to the next will always result in a decrease in productivity, regardless of
whether outputs increase as well.

True

False

1 points
QUESTION 31
1. Which of the following queuing (waiting line) applications would be classified as a finite population situation?
A. Customers waiting in line at Disneyworld to ride Space Mountain.
B. Drivers waiting in line at a toll plaza on the Ohio turnpike.

C. Dentists at a private practice waiting to use the X-ray machine to examine their patient.

D. Cars waiting in line at a McDonald's drive through.

E. Select this answer (E) if none of the above (A, B, C, or D) represent a finite population situation.

1 points
QUESTION 32
1. Given the following quarterly demand data for 2014 - 2015, what is the multiplicative seasonal index for quarter 4?
Quarter 2014 2015
Q1 120 113
Q2 135 132
Q3 144 140
Q4 115 118
2.
3.
A. less than 0.55

B. between 0.55 and 0.95

C. between 0.96 and 1.10

D. between 1.11 and 1.40

 E. greater than 1.40

1 points
QUESTION 33
1. Many manufacturing companies have applied the concept of DFMA (Design For Manufacturability and Assembly)
to improve the design of their products. Some have argued that redesigning a company's products using DFMA
would make it less likely that the company would seek to move its production process overseas to a low wage
country. Briefly discuss how a DFMA redesign might accomplish this. (Hint: what changes to the product would be
impacted by the relative wages of the workforce?) 10 points
QUESTION 34
1. A product that can be easily assembled from a set of independent components or modules is well suited for being
produced by a mass customizationapproach.

True

False

1 points
QUESTION 35
1. A flowchart used for service process design is often referred to as a service blueprint. First, describe what the line of
visibility on a service blueprint shows. Then, consider any service business that you are familiar with. Define what is
meant by a poka-yoke, and describe at least one element of the service system that is an example of a poka-yoke (if
the system does not have any examples of poka-yoke, suggest at least one that could be added.) Note: to earn full
credit for this problem you must use an example of a poka-yoke in a service system, not a manufacturing
system. 15 points

QUESTION 36
1. One strategic use of the service-system design matrix is to permit comparisons with
how other competitors deliver a specific service, and to determine where a competitive
advantage resulting from a different delivery method may be present.

True

False