BUS 515 FINAL EXAM PART 1 (FOUR VERSIONS POSTED 100 QUESTIONS)

 

In what area does General Motors earn its highest return on capital?

 
selling cars
 
selling logo merchandise
 
financing
 
selling racing
post-sales parts and service   

 

A key feature of scientific management is that workers are limited only by __________________.

 
machinery
 
co-workers
 
their job description
 
their tools
 
their physical ability

 

Decisions regarding which of the following are not part of the production process structure?

 
management policies
 
facilities
 
robots
 
flow of goods and services through the facility
 
flexible manufacturing system (FMS) machines

 

Suppose that a plant has a daily productivity of 0.85 parts per employee? What can we conclude?

 
the plant must be very labor-intensive
 
the plant is not earning profits
 
the plant must be highly automated
 
the plant should lay off workers
 
nothing

 

Highly labor intensive services are called _____________ .

 
pure services
 
mixed services
 
mixed manufacturing
 
quasi-manufacturing
 
quasi-services

 

What is a type of automation system that provides the flexibility of intermittent operations with the efficiency of repetitive operations?

 
CAD
 
AGV
 
AS/RS
 
FMS
 
CAM

 

Which of the following is not an argument in favor of having multiple suppliers?

 
The Just-in-time philosophy can be better utilized.
 
Supplier capacity is less important.
 
Volume flexibility is obtained.
 
Risks may be spread.
 
New suppliers may more easily be tested.

 

A constant concern within purchasing departments is the issue of ethics in managing _______________.

 
customers
 
web sites
 
inventory
 
suppliers
 
entry-level employees

 

Increases in international trade during the 1980s created a need for the development of ____________ standards of quality.

 
universal
 
country-specific
 
lower
 
metric
 
bilingual

 

For a cause-and-effect diagram, causes could be related to all of the following except

 
Analysis
 
Materials
 
Measurements
 
Machines
 
Workers

 

What are preset ranges of acceptable quality characteristics?

 
Control limits.
 
Product specifications.
 
Six-sigma limits.
 
AQC limits.
 
R-chart limits.

 

What measures the central tendency of a set of data?

 
Coefficient of variation
 
Variance
 
Standard deviation
 
Mean
 
Range

 

Causes of variation that can be identified and eliminated are called what?

 
Random
 
Assignable
 
Identifiable
 
Stochastic
 
Common

 

What are the two types of control charts for attributes?

 
p and c
 
x-bar and p
 
x-bar and R
 
R and c
 
p and R

 

The Six Sigma approach is organized around a _______ plan known as ________.

 
four step, PDAC
 
four step, DMAC
 
five step PDACR
 
five step DMAIC
 
five step, DMCRA

 

With JIT a company’s relationship with its suppliers includes

 
Competitive bidding
 
Being in partnership with them
 
Buying parts from the cheapest supplier
 
Short-term relationships
 
Having as many suppliers as possible

 

Quality in just-in-time is centered on building quality into the

 
Product
 
Maintenance of equipment
 
Process
 
Distribution system
 
Workforce

 

What is the term for an adjustment of a machine after making one product type so that production can begin for another product type?

 
Level assembly schedule
 
Group technology
 
Setup
 
Cycle time
 
Automation

 

One of the greatest benefits of JIT would be

 
increasing waste and improving responsiveness
 
longer lead times and increased productivity
 
decreased machine utilization and improved quality
 
competing based on schedules
 
eliminating waste, improving responsiveness and competing based on time

 

The role of production employees in JIT includes all of the following except

 
Be actively engaged in improving the production process
 
Monitor quality
 
Record data
 
Follow clearly defined and limiting work rules
 
Act on the information they have

 

The OM supervisor informs you, the researcher, that the data has a large standard deviation. What data pattern would you expect to observe once you generated a time series trend?

 
horizontal
 
seasonal
 
positive/negative trend
 
cycle
 
insufficient information to derive a valid response

 

Which of the following is a causal forecasting method?

 
Naïve
 
Moving average
 
Weighted moving average
 
Trend adjusted exponential smoothing
 
Linear regression

 

What does the linear regression line do?

 
Minimizes sum of errors
 
Minimizes product of squared errors
 
Minimizes sum of squared errors
 
Minimizes product of errors
 
Minimizes sum of absolute value of errors

 

Qualitative forecasting methods

 
are made objectively by the forecaster
 
are made subjectively by the forecaster
 
are made using existing data sources
 
are based on mathematical models
 
are only used in parallel with quantitative models

 

Suppose that you are using the four-period simple moving average method to forecast sales, and sales have been decreasing by 10% every period. How will your forecasts perform?

 
Forecasts will be lower than actual.
 
Forecasts will be higher than actual.
 
Forecasts will equal actual.
 
Forecasts will be increasing.
 
Forecasts will be decreasing by 2.5% every period.

VERSION 2
Question 1
 
Operations management personnel perform a variety of functions, including all of the following except ___________________.

 
analyzing production problems
 
analyzing potential mergers
 
developing forecasts
 
developing employee schedules
 
monitoring inventory
Question 2
 
Which of the following concepts is linked the least with Henry Ford?

 
scientific management
 
mass production
 
mass customization
 
technology
 
interchangeable parts
Question 3
 
What are the two key components of the operations strategy of Federal Express?

 
they own their own fleet of tractor trailers, and they use a sophisticated bar code technology
 
they own their own fleet of tractor trailers, and they have a large warehouse in every state
 
they own their own fleet of airplanes, and they have a large warehouse in every state
 
they use a sophisticated bar code technology, and they have a large warehouse in every state
 
they own their own fleet of airplanes, and they use a sophisticated bar code technology
Question 4
 
A manager has just replaced three workers with a machine that is cheaper to operate than the cost of the three replaced workers. Output is expected to remain the same. Which of the following is true?

 
labor productivity will decrease
 
machine productivity will increase
 
multifactor productivity will decrease
 
multifactor productivity will increase
 
the value of output will decrease
Question 5
 
Which type of operational function represents an Assemble-to-Order?

 
wedding invitations
 
corporate training
 
vacation packages
 
airline flights
 
legal services
Question 6
 
Vertical integration is a good strategic option for a manufacturing company when

 
it uses distributed processing
 
it needs one input material in large volumes
 
its facilities are obsolete
 
it needs several different parts and subassemblies
 
it makes many different products
Question 7
 
Which of the following is least likely to be a benefit of implementing barcode scanners at retail store checkout registers?

 
Improved forecasting
 
More efficient packaging of customer orders
 
Improved inventory control
 
Faster checkout for customers
 
More accurate checkout for customers
Question 8
 
Which type of technology provides “point-of-sale information?”

 
Automatic guided vehicles (AGV)
 
Automatic storage and retrieval systems (ASRS)
 
Barcode scanners
 
Flexible manufacturing systems (FMS)
 
Computer aided design/computer aided manufacturing (CAD/CAM)
Question 9
 
Which of the following is not attributed to Philip Crosby?

 
The concept of the quality trilogy
 
The phrase “Do it right the first time.”
 
Stressed the idea of prevention of defects
 
The notion of zero defects
 
The phrase “Quality is free.”
Question 10
 
The Japanese term for continuous improvement is

 
Poka-yoke
 
Kaizen
 
Kanban
 
Muda
 
Automation
Question 11
 
P-charts are used to measure:

 
continuous variation
 
intermittent random variation
 
proportion of items in a sample that is defective
 
the count of defective parts
 
proportion of items in a sample that are good
Question 12
 
What is a graph that shows the probability or chance of accepting a lot given various proportions of defects in the lot?

 
S curve
 
Z-chart
 
OC curve
 
p-chart
 
R-chart
Question 13
 
Six-sigma quality implies how many average defects per million?

 
3.4
 
6
 
2600
 
3σ
 
6σ
Question 14
 
The range is an example of what?

 
Traditional statistical tools
 
Fishbone diagramming
 
Acceptance sampling
 
Experimental design
 
Statistical process control
Question 15
 
Single sampling plan is when

 
a non-random sample is drawn from every lot.
 
a random sample is drawn from every lot.
 
a second lot is sampled due to the first sample inconclusive results.
 
only one time is tested.
 
a sample plan used once and discarded
Question 16
 
The ultimate goal of JIT is to produce products in a lot size of

 
100 or fewer
 
N = (DT(1+X))/C
 
The inverse of the carrying cost
 
One
 
The capacity of the factory
Question 17
 
JIT is often mistakenly assumed to

 
refer to the final assembly schedule only
 
dictate the product standards specification
 
refer to only just-in-time manufacturing
 
be a core element of ISO 9000 requirements
 
be driven by the finance department long range spending plan
Question 18
 
The manufacturing process in JIT starts with the

 
final assembly schedule
 
schedules for individual machines
 
vendor deliveries
 
prioritization of lots
 
forward scheduling
Question 19
 
JIT is a __________ system.

 
Pull
 
Push
 
Lead time
 
Preventive maintenance
 
Closed
Question 20
 
__________ are groups of workers who are responsible for every aspect of their business.

 
Focus teams
 
Staff departments
 
Partnerships
 
Self-managed teams
 
Negotiators
Question 21
 
Which of the following is not a step in Forecasting Seasonality?

 
Calculate a seasonal index for each season of each year
 
Divide this year’s average seasonal demand by each average seasonal index
 
Average the indexes by season
 
Forecast demand for the next year and divide by the number of seasons
 
Calculate the average demand per season
Question 22
 
A causal research model is based on the assumption that

 
the independent variable is related to the dependent variable
 
there is a relationship between the time series and the dependent variable
 
the variable being forecast is related to other variables in the environment
 
there is a relationship between the time series and the independent variable
 
the information is contained in a time series of data
Question 23
 
Which of the following is a causal forecasting method?

 
Naïve
 
Moving average
 
Weighted moving average
 
Trend adjusted exponential smoothing
 
Linear regression
Question 24
 
One quantitative forecasting models limitation is

 
it is objective
 
they are consistent
 
they are based on mathematical formulas
 
they are limited on the quality of available data
 
they can work around bad data
Question 25
 
What is a tracking signal used for?

 
To identify trends in actual data
 
To identify seasonality in actual data
 
To identify the effect of business cycles on actual data
 
To compute the value of the smoothing constant, α, for exponential smoothing
 
To identify forecast bias

Version 3
Chapter 6

Multiple Choice Question 19
What measures the central tendency of a set of data?

 
 
Coefficient of variation

 
Variance

 
Standard deviation

 
Mean

 
Range

Multiple Choice Question 39
Consider a p-chart measuring the percentage of defective light bulbs. If the LCL is .04 and a sample has 1% defects, what is the implication?

 
 
The process is in a state of control.

 
The process is out of control even though the variation is “good.”

 
The value of sigma must be increased.

 
The process has too many errors.

 
A calculation error must have occurred.

Multiple Choice Question 16
An OC curve is an example of what?

 
 
Traditional statistical tools

 
Fishbone diagramming

 
Acceptance sampling

 
Experimental design

 
Statistical process control

Multiple Choice Question 25
On a control chart, what separates common from assignable causes of variation?

 
 
x-bar lines

 
Control limits

 
Specification limits

 
Production limits

 
Mean divided by standard deviation

Multiple Choice Question 41
What are preset ranges of acceptable quality characteristics?

 
 
Control limits.

 
Product specifications.

 
Six-sigma limits.

 
AQC limits.

 
R-chart limits.

Chapter 7
Multiple Choice Question 26
According to JIT, __________ is carried to cover up a wide variety of problems, such as poor quality, demand uncertainty, and slow delivery.

 
 
Inventory

 
Excess capacity

 
A group of back-up workers

 
Spare equipment

 
Insurance

Multiple Choice Question 65
Which of the following is not a role of JIT management?

 
 
creating a JIT culture

 
cost and information sharing

 
serving as coaches and facilitators

 
developing an incentive system

 
ensuring multifunctional training occurs

Multiple Choice Question 36
JIT uses a pull system where communication starts with either the customer or with the _________ work station in the production line.

 
 
First

 
Bottleneck

 
Dominant

 
Most expensive

 
Last

Multiple Choice Question 61
JIT production workers are expected to

 
 
Cover up quality problems

 
Ignore data

 
Take responsibility in getting to the root cause of quality problems

 
Blame problems on someone else

 
Have a poor attitude about quality

Multiple Choice Question 70
The benefits of long-term relationships with a small number of suppliers include all of the following except

 
 
Always getting the lowest price

 
Focus on improving process controls

 
Greater accountability

 
Develop stable delivery schedules

 
Eliminate paperwork

Chapter 8
Multiple Choice Question 1
Forecasting is not a function which contributes to:

 
 
deciding which business market to pursue

 
deciding which product to produce

 
deciding how bonuses should be allocated

 
deciding how much inventory to carry

 
deciding how many people to hire

Multiple Choice Question 10
Which forecasting method is particularly good for predicting technological changes and scientific advances?

 
 
Market research

 
Executive opinion

 
Delphi method

 
Naïve method

 
Gamma method

Multiple Choice Question 30
What are the most frequently used forecasting techniques?

 
 
Linear regression

 
Simple mean

 
Exponential smoothing

 
Weighted moving average

 
Econometric models

Multiple Choice Question 17
Which of the following is a causal forecasting method?

 
 
Naïve

 
Moving average

 
Weighted moving average

 
Trend adjusted exponential smoothing

 
Linear regression

Multiple Choice Question 74
“Inside information” is most likely garnered through which of the following forecasting methods?

 
 
exponential smoothing

 
seasonal indexes

 
naïve

 
Delphi

 
multiple regression

Chapter 9
Multiple Choice Question 56
The least likely reason for a U.S. firm to choose to locate a factory in a foreign country is _____________.

 
 
climate

 
natural resources

 
markets

 
cheaper suppliers

 
lower labor costs

Multiple Choice Question 55
Issues that need to be considered in location globally include all of the following except______________.

 
 
different cultures

 
FEC accounting requirements

 
language barriers

 
different laws

 
different business practices

Multiple Choice Question 6
Capacity planning is complicated by the fact that ___________________.

 
 
capital markets are complex

 
existing facilities may become obsolete

 
capacity is difficult to define

 
capacity is usually purchased in chunks, rather than smooth increments

 
depreciation must be calculated

Multiple Choice Question 44
Service organizations such as restaurants, movie theaters, and banks focus on locating near ____________.

 
 
suppliers

 
roads

 
intersections

 
their customers

 
potential workers

Multiple Choice Question 25
Management has decided to add capacity incrementally in smaller chunks as needed, rather than purchasing one large facility. This decision ____________________.

 
 
is very risky

 
will result in low initial costs

 
will ultimately result in lower costs per unit if demand increases rapidly

 
positions the company to be well prepared for high demand in the future

 
can lead to a large amount of excess capacity

Chapter 10
Multiple Choice Question 34
The first step in designing a layout is

 
 
identifying the facility

 
gathering information

 
selecting the correct layout software package

 
developing a REL chart

 
developing a from-to matrix

Multiple Choice Question 65
What is the term for a system in which the product being worked on is physically attached to the line and automatically moved to the next station when the cycle time has elapsed?

 
 
cyclical line

 
paced line

 
autoline

 
continuous line

 
constrained line

Multiple Choice Question 4
Which of the following is not one of the four basic layout types?

 
 
product

 
hybrid

 
process

 
fixed position

 
inverted

Multiple Choice Question 27
Which company is widely considered to be the leader of just-in-time production?

 
 
Ford

 
Timex

 
Gateway

 
Toyota

 
Sony

Multiple Choice Question 24
A high-volume paper mill is an example of which layout type?

 
 
inverted

 
circular

 
process

 
fixed position

 
product

VERSION 4
Multiple Choice Question 53
In six-sigma programs, individuals who have extensive training in the use of technical tools and are responsible for carrying out the implementation of Six Sigma are __________________.

 
 
black belts

 
green belts

 
blue belts

 
red belts

 
white belts
Multiple Choice Question 63
Suppose that you want to measure the percentage of candles that are cut longer than 9 inches. Which control chart would be appropriate?

 
 
x-bar chart
 
c-chart
 
OC chart
 
p-chart
 
R-chart
Multiple Choice Question 9
A process chart is a

 
 
graph that shows how the population was evaluated

 
graph of the population failures

 
graph that shows whether a sample of data falls within assignable causes

 
graph that show whether a sample falls within the common or normal range

 
table showing final inspection results
Multiple Choice Question 15
A c-chart is an example of what?

 
 
Traditional statistical tools

 
Fishbone diagramming

 
Acceptance sampling

 
Experimental design

 
Statistical process control
Multiple Choice Question 39
Consider a p-chart measuring the percentage of defective light bulbs. If the LCL is .04 and a sample has 1% defects, what is the implication?

 
 
The process is in a state of control.

 
The process is out of control even though the variation is “good.”

 
The value of sigma must be increased.

 
The process has too many errors.

 
A calculation error must have occurred.
Multiple Choice Question 71
Which of the following is not a good approach for suppliers who are providing JIT services to manufacturers?

 
 
Use the “push system” for deliveries

 
Locate near their customers

 
Have small warehouses near the manufacturing plant

 
Use standardized containers

 
Join together with other suppliers to help each other make small deliveries
Multiple Choice Question 18
By focusing on __________ processes, JIT is able to achieve high-volume production of high-quality, low-cost products.

 
 
downstream

 
upstream

 
change-over

 
gateway

 
value-added
Multiple Choice Question 36
JIT uses a pull system where communication starts with either the customer or with the _________ work station in the production line.

 
 
First

 
Bottleneck

 
Dominant

 
Most expensive

 
Last
Multiple Choice Question 49
One aspect of flexible resources is

 
 
Use of multifunction workers

 
Relying on special equipment

 
Use of overtime

 
Leasing, rather than buying, equipment

 
Variable work schedules
Multiple Choice Question 4
The philosophy of JIT

 
 
Originated in Japan

 
Was operational at Henry Ford’s complex in 1920’s

 
Is a production planning system

 
Has received little attention in the US

 
Focuses on direct control of worker activities by management
Multiple Choice Question 3
Which of the following is not a feature common to all forecasting models?

 
 
This period’s forecast error is needed to compute next period’s forecast.

 
Forecasts are rarely perfect.

 
Forecasts are more accurate for groups of items rather than for individual items.

 
Forecasts are more accurate for shorter rather than for longer time horizons.

 
All of the answer choices are correct.
Multiple Choice Question 43
What is a tracking signal used for?

 
 
To identify trends in actual data

 
To identify seasonality in actual data

 
To identify the effect of business cycles on actual data

 
To compute the value of the smoothing constant, α, for exponential smoothing

 
To identify forecast bias
Multiple Choice Question 10
Which forecasting method is particularly good for predicting technological changes and scientific advances?

 
 
Market research

 
Executive opinion

 
Delphi method

 
Naïve method

 
Gamma method
Multiple Choice Question 73
____________________ is a collaborative process between two trading partners that establishes formal guidelines for joint forecasting and planning.

 
 
Collaborative Planning Forecasting and Replenishment (CPFR)

 
Supply Chain Planning Forecasting and Replenishment (SCPFR)

 
Supply Chain Optimization (SCO)

 
Collaborative Creation of Guidelines (CCG)

 
Joint Planning and Forecasting (JPP)
Multiple Choice Question 71
Combined forecasting involves a rule that

 
 
you must work with different vendors

 
you need different forecasters

 
you must always use a quantitative and qualitative method

 
the results are not comparable to a single forecast

 
the forecasting methods should be different
Multiple Choice Question 46
Which of the following is least likely to be a consideration in facility location?

 
 
the design of the production process

 
mistakes in choosing a location can be difficult to correct

 
often there are a number of acceptable locations

 
expanding capacity at a current location may be an option

 
location decisions can have a major impact on operating costs and revenues
Multiple Choice Question 34
_____________________ can perform a number of tasks to help a company focus on its core capabilities.

 
 
A plant within a plant

 
Agile manufacturing

 
Total Quality Management

 
Just-In-Time

 
Subcontractor networks
Multiple Choice Question 60
The first step in the factor rating method for evaluating location alternatives is what?

 
 
select a scale by which to evaluate each alternative relative to each factor

 
evaluate each alternative relative to each factor

 
select the alternative with the highest score

 
identify dominant factors

 
assign weights to factors reflecting the importance of each factor relative to the other factors
Multiple Choice Question 25
Management has decided to add capacity incrementally in smaller chunks as needed, rather than purchasing one large facility. This decision ____________________.

 
 
is very risky

 
will result in low initial costs

 
will ultimately result in lower costs per unit if demand increases rapidly

 
positions the company to be well prepared for high demand in the future

 
can lead to a large amount of excess capacity
Multiple Choice Question 45
Location decisions are particularly important because __________________________.

 
 
typically they are made rather frequently

 
they entail a high cost, short-term commitment

 
there are so many potential locations

 
they have a major impact on product design

 
they can have a large impact on operating costs and revenues
Multiple Choice Question 65
What is the term for a system in which the product being worked on is physically attached to the line and automatically moved to the next station when the cycle time has elapsed?

 
 
cyclical line

 
paced line

 
autoline

 
continuous line

 
constrained line
Multiple Choice Question 10
A grocery store is most like which of the following layout types?

 
 
inverted

 
circular

 
process

 
fixed position

 
product
Multiple Choice Question 48
Warehouse layouts have the key characteristics of process layouts except

 
 
number of loads is not a design consideration

 
location isn’t a major consideration

 
there is movement between the storage areas

 
from trips are the only consideration

 
there is no movement between the storage areas
Multiple Choice Question 6
A company with a pure continuous processing system is most likely to use which layout type?

 
 
inverted

 
product

 
process

 
fixed position

 
hybrid
Multiple Choice Question 73
Which of the following production line shapes is least likely to be found in a factory?

 
 
N

 
S

 
U

 
O

 
L