Final exam M.C. review questions from semester exams Exam 1 1.

. Measurements taken at various points in the transformation process for control purposes are called: A. plans B. directions C. controls D. feedback E. budgets 2. Production systems with customized outputs typically have relatively: A. high volumes of output B. low unit costs C. high amount of specialized equipment D. fast work movement E. skilled workers 3. The fact that a few improvements in a few key areas of operations will have more impact than many improvements in many other areas is consistent with the: A. Irwin phenomenon B. Pareto phenomenon C. Stevenson phenomenon D. Tellier phenomenon E. Adam Smith phenomenon 4. Modern firms increasingly rely on other firms to supply goods and services instead of doing these tasks themselves. This increased level of _____________ is leading to increased emphasis on ____________ management. A. outsourcing; supply chain B. offshoring; lean C. downsizing; total quality D. optimizing; inventory E. internationalization; intercultural 5. Productivity is expressed as: A. output plus input B. output minus input C. output times input D. output divided by input E. input divided by output

6. The fundamental purpose for the existence of any organization is described by its: A. policies B. procedures C. corporate charter D. mission statement E. bylaws 7. The external elements of SWOT analysis are: A. strengths and weaknesses B. strengths and threats C. opportunities and threats D. weaknesses and opportunities E. strengths and opportunities 8. Unique attributes of firms that give them a competitive edge are called ________________. A. Functional strategies B. Balanced scorecards C. Supply chains D. Core competencies E. Sustainable initiatives 9. Averaging techniques are useful for: A. distinguishing between random and non-random variations B. smoothing out fluctuations in time series C. eliminating historical data D. providing accuracy in forecasts E. average people 10. In order to increase the responsiveness of a forecast made using the moving average technique, the number of data points in the average should be: A. decreased B. increased C. multiplied by a larger alpha D. multiplied by a smaller alpha E. eliminated if the MAD is greater than the MSE

11. A forecast based on the previous forecast plus a percentage of the forecast error is: A. a naive forecast B. a simple moving average forecast C. a centered moving average forecast D. an exponentially smoothed forecast E. an associative forecast 12. Which of the following possible values of alpha would cause exponential smoothing to respond the most quickly to forecast errors? A. 0 B. .01 C. .05 D. .10 E. .15 13. In trend-adjusted exponential smoothing, the trend adjusted forecast (TAF) consists of: A. an exponentially smoothed forecast and a smoothed trend factor B. an exponentially smoothed forecast and an estimated trend value C. the old forecast adjusted by a trend factor D. the old forecast and a smoothed trend factor E. a moving average and a trend factor 14. The two most important factors in choosing a forecasting technique are: A. cost and time horizon B. accuracy and time horizon C. cost and accuracy D. quantity and quality E. objective and subjective components 15. Customer service levels can be improved by better: A. mission statements B. control charting C. short term forecast accuracy D. exponential smoothing E. customer selection

16. Maximum capacity refers to the upper limit of: A. inventories B. demand C. supplies D. rate of output E. finances 17. Which of the following is not a strategy to manage service capacity? A. hiring extra workers B. backordering C. pricing and promotion D. part time workers E. subcontracting 18. When the output is less than the optimal rate of output, the unit cost will be: A. lower B. the same C. higher D. could be either higher or lower E. could be either higher, lower or the same 19. If the output rate is increased but the average unit costs also increase we are experiencing: A. market share erosion. B. economies of scale. C. diseconomies of scale. D. value added accounting. E. step-function scale up. 20. Seasonal variations are often easier to deal with in capacity planning than random variations because seasonal variations tend to be: A. smaller B. larger C. predictable D. controllable E. less frequent

Exam 2

1. A behavioral approach to job design which increases responsibility for planning and coordinating tasks is job: A. enlargement B. rotation C. enrichment D. involvement E. enhancement 2. Which of the following concerns is not one that job designers focus on? A. what will be done in a job B. who will do the job C. how the job will be done D. when should the job be completed E. where the job will be done 3. In a stopwatch time study, the average time it takes a given worker to perform a task a certain number of times is the: A. observed time B. normal time C. standard time D. allowance time E. performance rating time 4. Allowance percentages normally would not include: A. noise levels B. monotony C. personal phone calls D. weight lifted E. rest room allowances 5. A major advantage of job specialization in business is increased __________. A. motivation B. opportunity for advancement C. opportunity for self-fulfillment D. productivity E. job enrichment
6. Standard Allowed Minutes (SAMs) are converted to Standard Allowed Hours (SAHs) by A) Multiplying SAMs by 60 B) Dividing SAMs by 60

C) Moving the SAMs decimal one place to the left D) Moving the SAMs decimal one place to the right E) None of the above Ans. B

7. The jobs standard time is expressed in SAMs. How would you calculate the number of units needed to reach 100% of hourly output? A) Multiply SAMs by 60 B) Divide SAMs by 60 C) Divide 60 by SAMs D) Multiply SAMS by 60 then divide by SAH E) One cannot calculate this using SAMs Ans. C

A Methods and Measurements Analyst for Timepiece, Inc. needs to develop a time standard for the task of attaching a watch to a wristband. In a preliminary study, he observed one of his workers perform this task five times, with the following results:

Observation Time (seconds)

1 27

2 19

3 20

4 21

5 13

8. What is the observed time (OT) for this task? A. 20 seconds B. 27 seconds C. 46 seconds D. 66 seconds E. 100 seconds

9. What is the normal time (NT) for this task if the employee worked at a twenty- two percent faster pace than is average? A. 16.7 seconds B. 20.3 seconds C. 24.4 seconds D. 25.7 seconds E. 28.9 seconds 10. What is the standard time (ST) for this task if the job allowance is twenty percent? A. 28.8 seconds B. 12.2 seconds C. 24.36 seconds D. 29.28 seconds E. 34.68 seconds

11. Convert the standard time in question 10 to SAMS: A. B. C. D. E. .488 minutes .203 minutes .578 minutes .417 minutes .406 minutes

Answer: a 12. How many units must this worker produce per hour to achieve 100% efficiency (round to the 3rd decimal)?

A. 295.567 units B. 103.806 units C. 143.885 units D. 122.951 units E. 147.783 units Answer D 13. If the production manager wants this production line to be paced at 240 units per hour, how many people should be assigned to this operation? A. B. C. D. E. 1 2 3 4 5 Answer B

14. If the base rate of this job is $10.00 per hour, and a worker at this job produces 5,671 units in a 40 hour work week, what is this workers gross pay (before taxes, etc.)? A. B. C. D. E. $427.72 $454.32 $461.20 $477.89 $494.10

Answer C 15. When a location evaluation includes both quantitative and qualitative inputs, a technique that can be used is ___. A. Linear programming B. Consumer surveys C. Factor rating D. Transportation models E. Center of gravity methods

16. The center of gravity method is used to _______ travel time, distance and costs. A. Normalize B. Eliminate C. Average D. Minimize E. Document 17. Cultural differences, Customer preferences, Labor and Resources are factors relating to: A. Regional choices B. Site selection C. Zoning D. Product design E. Foreign locations 18. A location analysis has been narrowed down to two locations, Akron and Boston. The main factors in the decision will be the supply of raw materials, which has a weight of .50, transportation cost, which has a weight of .40, and labor cost, which has a weight of .10. The scores for raw materials, transportation, and labor are for Akron 60, 80, and 70, respectively; for Boston 70, 50, and 90, respectively. Given this information and a minimum acceptable composite score of 75, we can say that the manager should: A. be indifferent between these locations B. choose Akron C. choose Boston D. reject both locations E. build a plant in both cities 19. Lost production time, scrap, and rework are examples of ___. A. internal failure costs B. external failure costs C. appraisal costs D. prevention costs E. replacement costs 20. Loss of business, liability, productivity and costs are consequences of ___. A. Labor Unions B. Globalization C. Poor Quality D. Robotics E. Micro-factories

21. Fixing a problem will often cost money; to minimize these costs it is best to find and fix the problem ___. A. just before shipping our product to the customer B. immediately after we complete the last operation C. during the design phase D. just before we begin the first production operation E. regardless of when you fix the problem, costs are about the same 22. A quality circle is ___. A. responsible for quality B. total quality control C. an inspection stamp found on meat D. a voluntary group of employees E. none of the above 23. A p-chart would be used to monitor _. A. average shrinkage B. dispersion in sample data C. the fraction defective D. the number of defects per unit E. the range of values 24. A control chart used to monitor the number of defects per unit is the: A. p-chart B. R-chart C. x-bar chart D. c-chart E. Gantt chart 25. The range chart (R-chart) is most likely to detect a change in: A. proportion B. mean C. number defective D. variability E. sample size

26. A control chart used to monitor the process mean is the: A. p-chart B. R-chart C. x-bar chart D. c-chart E. Gantt chart Exam 3 1. When carrying costs are stated as a percentage of unit price, the minimum points on the total cost curves: A. Line up B. Equal zero C. Do not line up D. Cannot be calculated E. Depend on the percentage assigned 2. The purpose of "cycle counting" is to: A. count all the items in inventory B. count bicycles and motorcycles in inventory C. reduce discrepancies between inventory records and actual D. reduce theft E. count 10% of the items each month 3. The EOQ model is most relevant for which one of the following? A. ordering items with dependent demand B. determination of safety stock C. ordering perishable items D. determining fixed interval order quantities E. determining fixed order quantities 4. A cycle count program will usually require that A' items be counted: A. daily. B. once a week C. monthly D. quarterly E. more frequently than annually

5. A risk avoider would want ______ safety stock. A. Less B. More C. The same D. Zero E. 50% 6. In the basic EOQ model, if lead time increases from five to 10 days, the EOQ will: A. double B. increase, but not double C. decrease by a factor of two D. remain the same E. none of the above

7. In the quantity discount model, with carrying cost stated as a percentage of unit purchase price, in order for the EOQ of the lowest curve to be optimum, it must: A. have the lowest total cost B. be in the lowest cost per unit feasible range C. be to the left of the price break quantity for that price D. have the largest quantity compared to other EOQ's E. none of the above 8. If no variations in demand or lead time exist, the ROP will equal: A. the EOQ B. expected usage during lead time C. safety stock D. the service level E. the EOQ plus safety stock 9. If average demand for an inventory item is 200 units per day, lead time is three days, and safety stock is 100 units, the reorder point is: A. 100 units B. 200 units C. 300 units D. 600 units E. 700 units 10. Which one of these would not be a factor in determining the reorder point? A. the EOQ B. the lead time C. the variability of demand D. the demand or usage rate E. all are factors