5. The Plan-Do-Check-Act (PDCA) cycle refers to a process used for: A. ISO certi
ID: 368424 • Letter: 5
Question
5. The Plan-Do-Check-Act (PDCA) cycle refers to a process used for:
A. ISO certification
B. Continuous improvement
C. New product design
D. Business process reengineering
E. None of the above.
6. Which of the following statement(s) correctly describes aggregate planning?
A. Aggregate planning seeks to meet short-term customer demand by hiring and
firing workers as needed.
B. Aggregate planning seeks to meet required demand for the intermediate period at
Minimum possible cost.
C. The aim of aggregate planning is to set overall output levels in the long-term future in the face
of fluctuating or uncertain demand.
D. (A), (B) and (C) above
7. Under a level strategy of aggregate planning, variations in demand are met by:
A. Varying regular production level
B. Using overtime
C. Using existing inventory or adding to inventory as needed
D. Only (B) and (C) above
E. (A), (B) and (C) above
8. Based on the data below, determine whether Product X or Product Y is of better quality in terms of availability.
MTBF MTTR
Product X 30,000 hrs. 300 hrs.
Product Y 65,000 hrs. 1,000 hrs.
A. Product X
B. Product Y
C. They have the same availability.
D. Cannot be determined.
9. Which phrase most closely describes the Delphi forecasting technique? Delphi uses:
A. one-time customer survey
B. focus groups in a face-to-face discussion to gather important data
C. Several rounds of anonymous data collection process
D. Historic data
10. Under exponential smoothing, if we want the forecast for the next period to be closer to current period actual demand, the value of alpha (a) should be:
A. Large
B. Small
C. Moderate
D. Zero
E. The value of alpha does not matter.
11. Facilities decisions:
A. Are medium-range capacity decisions
B. Have no impact on other capacity decisions
C. Are long-term in nature.
D. Require planning for one year or less
12. Which of the following departments is NOT affected directly by the facilities decision?
A. Operations
B. Marketing
C. Finance
D. All of the above are affected.
13. Which of the following statements regarding capacity is NOT correct?
A. Capacity can be measured in several units such as hours of output, number of units produced, number of customers served, etc.
B. Effective capacity (i.e., actual capacity) is generally less than the maximum capacity.
C. Capacity is the maximum output that could be produced over a given period of time.
D. All of the above are correct.
14. Aggregate planning:
A. is concerned with planning for the intermediate period
B. Always uses minimum capacity
C. is also called production planning.
D. Does not consider overtime, hiring, firing, subcontracting, and inventory levels
E. Only A and C above.
15. Which of the following is/are used to influence demand in aggregate production planning? (Select the best answer.)
A. Pricing, inventory, and advertising
B. Reservations, pricing, and advertising
C. Subcontracting, advertising, and pricing
D. Inventory, reservations, and pricing
16. Subcontracting and hiring are approaches used to influence _____ in developing aggregate production plans.
A. demand
B. supply
C. supply chain
D. None of the above.
17. A major difference between facilities planning and scheduling is that:
A. The former refers to the long-range capacity and the latter refers to the short-range
capacity.
B. The former is concerned with allocating available resources and the latter with the
acquisition of resources.
C. The former refers to the long-range and the latter refers to the medium-range.
D. None of the above.
18. Suppose the cost of not having adequate capacity to absorb demand is very high. What type of capacity cushion strategy is a company likely to use in this situation?
A. Small cushion
B. Large cushion
C. Moderate cushion
D. None of the above
19. Given the demand data below, what is the forecast for Quarter 4 of Year 2 if Naïve II method is used?
Year 1 Year 2
Quarter 1 5400 6500
Quarter 2 6900 7500
Quarter 3 9000 8500
Quarter 4 9800 ?
A. 7500
B. 9800
C. 8500
D. None of the above
20. Which of the following statements is true?
I.When measurement for quality control is discrete such as Accept/Reject, or Yes/NO, the appropriate statistical control chart to use is the p-chart.
II.The statistical quality control chart is based on 3-standard deviations which gives 99.7% confidence that the process is in control.
A. Only statement I is correct.
B. Only statement II is correct.
C. Both statements are correct.
D. Both statements are incorrect.
21. In using the exponential forecasting method, different values of alpha (a) may be used. Which of the following values of alpha (a) should not be used in exponential forecasting?
A. 0.3
B. 0.4
C. -0.2
D. 0.7
22. The purpose of performing a forward pass is to:
A. Identify the critical path and project completion time
B. Determine the early start and the early finish times
C. Determine the late start and the late finish times
D. Determine the slack available in the process
E. All of the following except (C) above.
23. In contrast to the CPM method, the PERT method:
A. Assumes that activity times are not constant.
B. Uses three time estimates for each activity instead of just one estimate.
C. Both (A) and (B) above
D. None of the above.
24. Project management requires:
A. Scheduling, planning, and controlling
B. Quantitative skills
C. Behavioral skills
D. All of the above
25. Gantt charts are effective for project scheduling if:
A. Activities are highly interconnected
B. Activity times are random
C. The project contains simple activity sequences
D. All of the above
26. Which of the following statements is true about a critical path?
A. It consists of activities for which early start time equals late start time.
B. The activities on the path take the longest time to complete.
C. There is no slack in the activities along the critical path.
D. All of the above
27. "Slack" is calculated as the difference between:
A. Late Start time and Early Start time
B. Late Finish time and Early Finish time
C. Observed and predicted times
D. Optimistic and pessimistic times
E. Both (A) and (B) above.
28. Which of the following statements is true?
I. A network-based project scheduling method that requires three time estimates for each activity is called PERT.
II. In project scheduling, performing the forward pass requires computing the early start and late finish times for each activity.
A. Only statement I is true.
B. Only statement II is true.
C. Both statements are true.
D. Both statements are not true.
29. Which of the following statements is true?
I. The activities on the critical path have zero slack time.
II. The zero slack time of the critical activities indicates that any delay of the critical activities (i.e., those activities that fall on the critical path) will result in delaying the completion time of the project.
A. Only statement I is true.
B. Only statement II is true.
C. Both statements are true.
D. Both statements are false.
30. Which of the following statements is true?
I. The time-cost tradeoff in project scheduling indicates that reducing the normal project completion time often involves incurring more costs.
II. To complete a project sooner than its normal completion time, non-critical activities are reduced based on cost, i.e., activities that cost the least are reduced first.
A. Only statement I is true.
B. Only statement II is true.
C. Both statements are true.
D. Both statements are not true.
31. Which of the following statements regarding capacity is correct?
A. Capacity is often measured for three time horizons--long-term, intermediate period, and short-term.
B. Capacity is the maximum output that could be produced per time period.
C. The capacity of the system is determined as the average capacity of all the workstations.
D. Only (A) and (B) above
E. Only (B) and (C) above.
Explanation / Answer
5. The correct answer is option B.
PDCA (plan-do-check-act or plan-do-check-adjust) is nothing but the method that is used in continuous improvement of processes and products. Managers should focus on designing the team, organization and its culture considering the future. They generally focus on being adaptive, creative and innovative. In this successful world, making the organization gain competitive advantage depends on innovation and continuous improvement.
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