following BSAD 311 M2BL (CH: 8, 10, 11, 12, 15, 16, & 17)) DIRECTIONS: Listed be
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Question
following BSAD 311 M2BL (CH: 8, 10, 11, 12, 15, 16, & 17))
DIRECTIONS: Listed below are 50 multiple-choice questions totaling 50-points. (Each question is worth 1.000 points.) These questions cover the information contained in Chapters 8, 10, 11, 12, 15, 16 & 17. For the multiple-choice questions, there is only ONE correct response. As such, you will need to analyze the question and corresponding responses and pick the one BEST response. Remember, since this is an upper division course, neither the question nor the “answer” has to be perfect! At this level, knowledge, analysis, and decision-making are critical to the process.
Multiple Choice Questions
1. Which of the following is not a common reason for facility layout studies?
a. There is significant change in demand or throughput volume.
b. A new good or service is introduced to the customer benefit package.
c. A new material supplier is used.
d. Different process, equipment and/or technology are installed.
2. One of the differences between product layouts and process layouts is that unlike product layouts, process layouts:
a. require highly specialized equipment.
b. provide more flexibility.
c. have higher automation potential.
d. have less materials-handling costs.
e. have more materials-handling and inventory costs.
3. Megan plans the facility layout of her new shop that would sell a variety of healthcare industry machines. She arranges the machines in a way that the machines are grouped according to their functions. Which of the following types of facility layouts has Megan used in her shop?
a. A process layout
b. A product layout
c. A cellular layout
d. A fixed-position layout
e. A dynamic process layout
4. A ____ layout is an arrangement based on the sequence of operations that are performed during the manufacturing of a good or the delivery of a service.
a. Product
b. Process
c. Cellular
d. Fixed position
5. Which of the following is true of fixed-position layouts?
a. The changeover requirements are low at best.
b. The automation potential is moderate.
c. The volume of product demand is high in most instances.
d. The equipment utilization is high, except when using cellular manufacturing.
e. The balance of equipment utilization versus automation potential is low.
6. By definition, assembly line balancing:
a. Is a one-time activity only, as this technique helps manufacturing managers and planners solve an immediate bottleneck in operations
b. Attempts to help manufacturing managers and planners to maximize the production rate for a given number of workstations.
c. Attempts to help manufacturing managers and planners minimize the number of workstations for a given production rate.
d. Attempts to help manufacturing managers and planners load work into early workstations instead of suffering imbalances and lost productivity.
e. None of the above are attributable to assembly line balancing situations.
7. Fancy Trends Inc., a handbag manufacturing company, assembles handbags in an assembly line using 10 workstations. The target output for an 8-hour workday is 120 bags. The sum of the task times is 30 minutes/bag. The cycle time is 4 minutes/bag. The assembly-line efficiency is _____.
a. 65%
b. 70%
c. 75%
d. 80%
e. 85%
8. According to your textbook, the determination of specific job tasks and responsibilities is/are called ____.
a. Job design
b. Ergonomics
c. Job enlargement
d. Job enrichment
e. Job-knowledge gap analysis
9. Based upon your reading of the textbook, which of the following is not a disadvantage of virtual teams?
a. Security
b. Equipment changeover and sharing
c. Synchronizing calendars
d. Socialization e. Working hours
10. As best as you can determine, when planning or analyzing capacity planning systems, safety capacity is intended for all of the following except:
a. power outages
b. equipment breakdowns
c. diseconomies of scale
d. material shortages
e. seasonal demand
11. Unlike a focused factory, an unfocused factory is best characterized by:
a. a few key products.
b. particular market segments.
c. identical people skills.
d. dissimilar product lines.
e. precise resource utilization over time.
12. By definition, when the average unit cost of a good or service decreases as the capacity and/or volume of throughput increases, it is called ____.
a. Economies of scale
b. Diseconomies of scale
c. The Principle of Cost Cushioning
d. A nonphysical constraint
e. None of the above
13. Blyrie Inc., a sports goods manufacturing company, follows a policy that involves manufacturing only when the demand exceeds the amount of goods already manufactured. Given this information, Blyrie Inc. most likely uses a _____ to expand its capacity.
a. capacity lead strategy
b. capacity lag strategy
c. capacity straddle strategy
d. capacity reduction strategy
e. capacity increase strategy
14. Let’s consider this situation; a firm will encounter short periods of over- and underutilization with primarily, which of the following capacity expansion approaches?
a. One large capacity increase
b. Small capacity increases that match and then immediately lags demand
c. Small capacity increases that lead demand
d. Small capacity increases that lag demand in some cases
e. Small capacity increases that match demand
15. Consider this from a capacity planning and management perspective: a doctor's office will charge no-show patients $30 if they did not cancel their appointment 24 hours ahead of the appointment primarily because:
a. insurance will pay the no-show fee anyway unless the patient did not have a viable excuse.
b. the appointment time and associated revenue is perishable, and the doctor may lose revenue.
c. the doctor's office does a poor job of forecasting demand but has to make up the cost in some manner; insurance notwithstanding.
d. the no-show price of $30 can be added to medical fees for reimbursement.
16. In service industries, capacity is often viewed as the _____.
a. minimum rate of output per unit time
b. amount of setup time
c. units of resource availability
d. amount of overtime scheduled
17. Based upon your readings in the textbook, consider the following scenario: Marina Hotels is a leading chain of hotels. Its managers reserve 30% of the rooms available only to the members of its club. They also provide the rooms at subsidized prices to these members. In this scenario, which of the following components of revenue management system is most likely used by Marina Hotels?
a. Investment
b. Allocation
c. Capacity expansion
d. Capacity sharing
18. Customers entering a queue (waiting line) at a cafeteria on a first come, first served basis. The arrival rate follows a Poisson distribution, and the maximum length is unlimited. If the average number of arrivals is 6 customers per minute and the average service rate per minute of a single server is 10 per minute, what is the average number of customers in the system? Assume Model 1.
a. 0.6
b. 0.9
c. 1.50
d. 0.25
e. none of the above
19. Thinking in terms of the Theory of Constraints, Lumeris Inc., an automobile manufacturer, has an inflexible work schedule and requires its workers to work nine hours a day and six days a week. Its laborers do not have adequate skills to perform their job efficiently. The inflexible work schedule and inadequate labor skills are examples of _____.
a. physical constraints
b. nonphysical constraints
c. bottleneck activities
d. work orders
e. idle time
20. Under the Theory of Constraints, nonbottleneck management principles differ from bottleneck management principles because according to nonbottleneck management principles, _____.
a. idle time is acceptable if there is no work to do
b. an hour lost at a nonbottleneck resource is an hour lost for the entire process or factory output
c. the input should always exceed the capacity
d. An hour lost at a nonbottleneck resource is an hour gained at another nonbottleneck point in the factory output
e. large order sizes should be used to minimize setup time and maximize resource utilization
21. Inventory that represents partially completed products waiting further processing is called ____ inventory.
a. Raw materials
b. Work-in-process
c. Cycle
d. Safety stock
e. Perishable stocks in use
22. Additional inventory kept over and above the average amount required to meet demand is called ____ inventory.
a. Seasonal
b. Work-in-process
c. Finished goods
d. Safety stock
23. Based upon your readings of your textbook, backorders ____.
a. result from lost sales b. have little financial impact
c. always creates new setup and holding costs
d. force a customer to purchase elsewhere
e. may occur as a result of an inventory stockout action
24. Based on the information in your textbook, which one of the following statements is the most correct?
a. The level of safety stock maintained decreases when the desired cycle-service level increases.
b. The level of safety stock maintained decreases when the standard deviation of demand during lead time increases.
c. In a fixed period, inventory system, the value of Q is kept the same from one cycle to another.
d. When demand is uncertain and no safety stock is maintained, stock outs will occur during approximately 50 percent of the cycles.
e. None of the above are possible.
25. The demand for bread in Ahoma City ranges from 100 to 120 tons per day, every day of the year. The demand is easily satisfied on a daily basis. This demand for bread can be categorized as _____.
a. static demand
b. overfull demand
c. unwholesome demand
d. dynamic demand
26. Which of the following is not a basic function of the Supply Chain Operations Reference (SCOR) model?
a. source
b. make
c. deliver
d. objectify
e. control
27. According to your textbook, which one of the following statements best reflects about conditions associated with vendor-managed inventory (VMI)?
a. VMI is a form of outsourcing.
b. VMI often increases the bullwhip effect.
c. VMI is used only in responsive supply chains.
d. VMI is identical to contract manufacturing.
e. VMI is used to manage WIP inventories under special conditions.
28. Based upon your textbook’s discussion as well as your accounting and finance course work you should have completed to date, when it comes to cash-to-cash conversion cycle, if an online retail store has cost of goods sold equal to $2 million, has 200 operating days in a year, and has a total average on-hand inventory of $500,000, the cost of goods sold per day is _____.
a. $2,500
b. $15,000
c. $7,500
d. $10,000
e. $5,000
29. Based upon your textbook’s discussion as well as your accounting and finance course work you should have completed to date, TekSupply Inc., an automobile parts supplier, held an average automobile parts inventory of $4 million last year. Its cost of goods sold was $25 million. Therefore, the automobile parts experienced an inventory turnover of _____ turns last year.
a. 2.51
b. 4.25
c. 6.25
d. 9.50
e. 12.25
30. 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 consider primarily a ____.
a. responsive supply chain
b. contract manufacturer
c. distribution center
d. vendor-managed inventory supplier
e. back-hold entrepreneurial supply chain vendor
31. 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
32. 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
33. Based upon your readings of the textbook and the two articles posted in Week Seven, which of the following is basically true regarding the history of quality management?
a. During the Industrial Revolution, workers on the shop floor began to take on increased responsibility for quality.
b. Six Sigma was developed in Japan as a cost reduction approach during the 1970s.
c. Deming's diagram of a value chain emphasized the importance of consumers and suppliers in supporting continuous quality improvement.
d. Beginning around 1948, Deming and Juran began educating top U.S. managers, which lead to the growth and development of quality management in the U.S.
e. Quality engineers in the Soviet Union developed their own version of quality management, which has been universally adopted in most countries in the world.
34. Dr. W. Edwards Deming defined quality as "fitness for use" and sought to improve quality by working within the system familiar to managers.
a. True
b. False
35. According to what you read in your textbook, all of the following are components of the GAP model except:
a. The discrepancy between delighting or pleasing customers and total customer service and satisfaction.
b. The discrepancy between management's perceptions of what features constitute a target level of quality and the task of translating these perceptions into executable specifications.
c. The discrepancy between quality specifications documented in operating and training manuals and plans and their implementation.
d. The difference between the customer's ideas, expectations, and perceptions.
36. At a gas station, a diesel pump nozzle that will not fit into a non-diesel automobile is an example of ____?
a. Kaizen blitz
b. dpmo
c. Poka-yoke
d. External failure device
e. All of the above
37. At Scorla Automobiles, a few machines in the assembly section were faulty and had to be shut down till they were repaired. This reduced the output of automobiles for the quarter. In this case, the costs incurred by Scorla Automobiles for repairing the machines are an example of _____.
a. prevention costs
b. appraisal costs
c. internal failure costs
d. external failure costs
e. none of the above
38. Which of the following is not a part of Philip Crosby's philosophy of quality?
a. Quality means conformance to requirements but not elegance.
b. The only performance standard is Six Sigma.
c. There is no such thing as a quality problem.
d. The only performance measurement is the cost of quality, which is the expense of non-conformance.
39. Alex, the manager at Rues and West Inc., wants to know the sequence of the production process in the company to determine if any process can be combined or eliminated. In this case, a _____ will suit Alex's requirement.
a. run chart
b. scattergram
c. check sheet
d. histogram
e. flow chart
40. As we discussed in class, common cause variation is best considered:
a. Controllable at the source of the variation.
b. Called assignable cause as it is something that is periodic, yet common.
c. Can be reduced by statistical process control methods
d. The responsibility of the operator in charge on the production line. e. The responsibility of management overseeing the production line.
41. Testing whether a cellphone boots up the first time 100% correctly is an example of:
a. Supplier certification and management.
b. In-process control.
c. Finished goods control.
d. Statistical process control.
e. None of the above.
42. Which of the following is not related to a continuous metric?
a. Measured as the degree of conformance to a specification
b. x-bar and R-charts
c. p-chart d. Time
e. n-charts
43. Honda wants to monitor the number of blemishes (scratches, blisters, etc.) on the fenders of its cars using a statistical process control chart. The most appropriate type of SPC chart is:
a. X-bar.
b. R-bar chart.
c. CpK chart.
d. C-chart.
e. Q-chart
44. In the context of designing control charts, which of the following is true of a sample size?
a. A large sample allows small changes in process characteristics to be detected with higher probability than a small sample size.
b. A small sample is used to detect process shifts of two standard deviations or smaller.
c. A large sample size is desirable to keep the cost associated with sampling low.
d. A small sample size provides greater degrees of statistical accuracy in estimating the true state of control than a large sample size.
e. A small sample allows for medium-sized changes in process characteristics to be detected with a stationary probability than a small sample size.
45. Which of the following is true of special cause variation?
a. It cannot be explained or understood
. b. It occurs sporadically and can be prevented.
c. It cannot be detected using statistical methods.
d. It accounts for about 80 to 95 percent of the observed variation in a process.
46. Drive-in-Style Motors follows a traditional manufacturing system. It produces a fixed number of cars every month. It is now planning to switch to a system of manufacturing where workers go to the source of required parts and withdraw them based on requirements. In this scenario, which of the following is most likely to occur if Drive in-Style Motors implements this plan?
a. Its inventory levels will increase significantly when the demand is low.
b. Its component parts and subassemblies will be replenished only when needed.
c. Its finished goods inventory will decrease, but raw materials and work-in-process inventories will increase.
d. Its workers, at any given process, will produce units before they are needed.
47. Which of the following is a similarity between lean production and Six Sigma?
a. Both solely address visible problems in processes.
b. Both focus on efficiency by reducing waste and improving process flow.
c. Both are driven by supply chain limitations.
d. Both focus on problems related to variation in performance.
e. Both are driven by customer requirements
48. Ford Motor Company has decided to switch to a pull system of manufacturing and distribution for its vehicles. Under a Lean philosophy, which one of the is most likely to occur?
a. Inventory levels will increase.
b. Component parts and subassemblies will be replenished only when needed.
c. Dealer parking lot space will need to be increased.
d. Finished goods inventory will decrease, but raw materials and work-in-process inventories will increase; economies of scale might not be affected.
49. According to the Toyota Motor Company, which of the following is not one of the seven major waste categories?
a. Overproduction
b. Transportation
c. Motion
d. Single-piece flow
50. Total productive maintenance (TPM) seeks to do all of the following except ____.
a. Maximize equipment effectiveness. b. Create worker ownership throughout the production process. c. Foster continuous improvement efforts throughout the production process.
d. Enable multiple products in small batches to be run on the same equipment.
e. All of the above.
Explanation / Answer
1. c. A new material supplier is used.
New material supplier does not necessitate facility layout studies, instead construction of a new facility is a common reason, in addition to the other reasons listed.
2. e. have more materials-handling and inventory costs.
b. provide more flexibility.
There are two correct options of those listed. Process layouts, parts have to travel longer paths in search of machines, leading to higher material handling, WIP, waiting time and inventory costs.
Process layouts do not have specialised equipment and the machines are arranged according to their functions, rather than as per sequence of operations, therefore process layouts provide more flexibility as compared to product layouts.
3. a. A process layout
Process layout has machines group together according to the functions performed by them.
4. a. Product
A product layout has machines arranged according to the sequence of operations to be performed for a product. This leads to high potential for automation and faster production rate.
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