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Course # 371014
Applied Operations Mgmt: Manufacturing & Services
based on the electronic .pdf file(s):

Applied Operations Management: Manufacturing and Services
by: Dr. Jae K. Shim, Ph.D., 2009, 279 pages

16 CPE Credit Hours
Technology & Operations

A P E X C P E . C O M  . . . . .  1.877.317.9047  . . . . .  support@apexcpe.com

Chapter 1 - What Is Production /Operations Management?

1.    ____________________________ is not a system of Operation management (OM)   2
Planning systems.
Operating and controlling systems.
Parallel systems.
Designing systems.
2.    The new models and trends in OM do not include   15
Make and sell
Sense and respond
3.    Which of the following statement is not true regarding the need for continuous improvement within companies?   12
Global development and more open trade have resulted in more companies with which each company must compete.
Currency differentials among countries have increased.
The companies with which a company has competed have become better.
Customer expectations have increased.
4.    The tool that is most useful in brainstorming to the root cause of a problem is the   13
Location plot.
Fishbone diagram.
X chart.
5.    Business Process Reengineering (BPR) means that a company   14
Uses a systematic process to design its product in accordance with customer needs.
Has an objective to automate all of its work.
Makes a new beginning at evaluating and designing the work processes.
Has the need for quality improvement at all levels.
6.    The performance characteristic of flexibility means   6
High quality.
Lower than industry average costs.
A quick response to changing markets and demand.
Delivery of goods or services on schedule.
7.    The performance characteristic of cost efficiency means   5
High quality.
Lower than industry average costs.
A quick response to changing markets and demand.
Delivery of goods or services on schedule.
8.    Which of the following is not a challenge of supply chain management?   15
Lead time compression.
Decreased outsourcing.
Shortened product development time.
9.    ISO 9000 is the general name used through the European Economic Community for   13
Statistical variation measurement system.
Accepted quality standards.
Setting upper and lower control limits.
10.    _______________ examining excellent performers outside the industry and seeing how you can use their best practices.   13
Pareto analysis.
Multiple activity charting.
11.    Using the 80/20 rule for analysis involves the   13
Cause-and-effect diagram.
Pareto analysis.
12.    Modeling types do not include   24
Narrative models.
Physical models.
Mathematical models.
Contentious models.
13.    What is a decision matrix?   20
An approach to decision making under risk.
Value of an imperfect estimate.
Value of an elastic decision.
Value of a designed quadrant.
14.    Decision-making under certainty and conflict involves three major elements: decision strategy, states of nature and:   20
Level scheduling.
Aggregate planning.

Chapter 2 - Tools for Decision Making

15.    One weakness of simulation is:   25
No automatic searching or optimization done.
Replicate the characteristics of a real system.
Limit risk and time consumption.
Allows for time compression scenarios.
16.    Of the following, the most suitable short range forecast would be   40
Exponential smoothing.
17.    Subjective forecasting methods include   36
Adaptive smoothing.
Tracking signal.
Double exponential smoothing.
18.    Which of the following is not true about the mean standard error (MSE)?   42
It is a measure of forecasting performance.
It is similar to the coefficient of variation.
It can be used in selecting the smoothing constant.
It provides a substitute for the standard deviation.
19.    When using a simple moving average to forecast demand, one   40
Gives equal weight to all demand figures.
Assigns more weight to the more current data.
Includes new data in the average without discarding earlier data.
Uses an alpha of between 0 and 1.
20.    Which of the pairs is most closely related?   46
Coefficient of linear correlation and coefficient of determination.
Coefficient of determination and standard error of the estimate.
Running sum of the forecast error and coefficient of linear correlation.
Mean absolute deviation and technological forecasting.
21.    Flexible Manufacturing System (FMS) is most suited for   67
Job shop.
22.    The goal of computer-integrated manufacturing (CIM) does not include   67
Reduced direct labor.
Minimum cycle time.
Minimum cost.
Information from marketing.
23.    Effective utilization is a ratio between expected capacity of a firm and   77
Manufacturing capacity.
Limited capacity.
Production capacity.
Design capacity.
24.    Location decisions   94
Are easy to optimize.
Are one-time decisions.
Need to be reviewed occasionally.
Start with a site selection.
25.    An example of a subjective location factor is   87
Energy availability and costs.
Water availability and costs.
26.    When utilizing a point rating scheme for arriving at a location decision   90
The objectives being considered must be equally important.
Intangible factors cannot be assigned points.
Weights may total 1.00.
The need for judgment is removed.

Chapter 3 - Demand Management and Forecasting

27.    The ____________________ can be used to distribute capacity to demand centers.   92
Center-of-Gravity Method.
Quadratic programming.
Factor ratings.
Transportation method.
28.    Which firm would benefit most by using the transportation method of linear programming?   92
A retail firm.
Multiple supply, multiple warehouses.
Multiple supply, single warehouse.
Single supply, multiple warehouses.
29.    Location break-even analysis is an economic comparison of locational options based on   89
Work-force composition.
Demand forecasts and orders.
Variable and fixed cost breakdown.
Inventory control.
30.    The factors that need to be addressed in job design do not include   113
Design of work methods
Work scheduling
Work measurement
Design of physical workplace
31.    A method of increasing job variety by horizontally loading jobs is   99
Autonomous work.
Job enlargement.
Job enrichment.
Quality circles.
32.    A(n) __________ curve is a graph or equation that expresses the expected rate of improvement in productivity as more units are produced.   109
Incremental cost.
33.    The learning curve theory has found useful applications in many areas, excluding:   111
Budgeting, purchasing, and inventory planning.
Setting fixed overhead standards..
Setting production standards.
Pricing new products
34.    Work sampling is a work measurement methodology that estimates the portion of time and employee utilized in   106
Performing maintenance tasks.
Performing assigned job tasks.
Performing pre-job planning.
Performing pure strategy
35.    Systematic layout planning is a generalized approach to layout that indicates nearness priorities other than transportation costs.   121
36.    The construction of a highway would best be accomplished by use of a   120
Fixed position layout.
Product layout.
Process layout.
Plant layout.

Chapter 4 - Process Selection and Capacity Planning

37.    Characteristics of process or functional layouts are   119
Few tasks.
Inflexible equipment.
Low employee cost.
Smaller investment.
38.    Hospitals are generally an example of   119
Flow-line layout.
Dominated flow.
Process (functional) layout.
Cycle time.

Chapter 5 - Facility Location Planning

39.    Characteristics of layout by product include   118
Low production cost.
Increased process flexibility.
Smaller investment.
Alert staff.
40.    Line balancing   123
Seeks to select the combination of work elements to be performed that would minimize setup costs.
Obtain the desired level of output with the minimum input of labor and other resources.
Tries to maximize cycle time, and thus output.
Is key to the success of JIT.
41.    For manufacturing operations, which is not part of a traditional aggregate planning analysis?   135
Work force size.
Inventory level.
Economies of scale.
Production rate.
42.    The _______________ would be classed as a quadratic programming approach to the aggregate planning problem.   135
Linear decision rule.
Search decision rule.

Chapter 6 - Design of Work Systems

43.    Which aggregate planning method does not generate an optimal solution?   144
Transportation method.
Linear decision rule.
Trial and error
Linear programming..
44.    Determining resource requirements through the use of a rough cut approach   144
Results in an optimal solution.
Constrains the mathematical form of the problems.
Is too time-consuming even with a computer.
Relies on judgment to determine the most desirable master production schedule.

Chapter 7 - Facilities Positioning

45.    Management coefficients capacity planning relies on   144
A pseudoproduct.
A restricted product mix.
Bills of labor.
Multiple regression.
46.    The two stages of scheduling, in order, are   146
Dispatching and estimating.
Requisitioning and loading.
Loading and forecasting.
Loading and sequencing.

Chapter 8 - Production Planning Systems: Aggregate Planning and Master Production Scheduling

47.    Johnson's rule for job sequencing is used if   150
The objective is to minimize the completion time for a group of jobs that are to be processed on two machines or at two successive work centers.
The objective is to maximize idle time.
In-process inventory and setup costs are dependent on sequence.
Non-optimal but quick solutions are desired.
48.    Which of the following statement is false regarding the master production schedule (MPS)?   134
The MPS must be desegregated into time-phased requirements for individual products.
The MPS usually states weekly product requirements over a 6- to 12-month time horizon.
The MPS is a forecast.
The MPS is a schedule of when production should be completed.
49.    Which of the following statement is false regarding the master production schedule (MPS)?   145
The MPS must be desegregated into time-phased requirements for individual products.
The MPS usually states weekly product requirements over a 6- to 12-month time horizon.
The MPS is a forecast.
The MPS is a schedule of when production should be completed.
50.    Which aggregate planning method is most widely used?   135
Linear decision rule.
Search decision rule.

Chapter 9 - Independent Demand Inventory Systems

51.    ___________________________ is not an aggregate planning method.   135
Transportation method.
Management coefficients model.
Search decision rule (sdr)
52.    The purpose of scheduling is to:   146
Desegregate the general production plan into time-phased weekly, daily, or hourly activities.
Neutralize the average lateness.
Keep labor and facilities idle.
Maximize setup costs.
53.    The allocation of workloads to specific work is   146
Dispatching and estimating.
54.    Sequencing is a process that determines the priorities job orders should have in the manufacturing process. Sequencing results in priority rules for job orders. T F   148
55.    Which of the following statement is not true regarding the difference between independent demand and dependent demand?   159
Independent demand systems supply demand outside the organization, dependent-demand systems supply demand inside.
The need for independent demand items must be estimated while dependent can be calculated.
Dependent demand requires EOQ.
Most dependent demand items are used to produce the independent demand items.
56.    ABC analysis   171
Determines the relative price per unit of all products.
Requires an accurate physical inventory.
Establishes the relative expenditures for all inventory items.
Is part of Kanban.
57.    Service level   167
Relates to the percentage of demand not supplied from inventory.
Can be defined as the percentage of lead times when demand was met from inventory.
Can be defined as the percentage of lead times when a stockout occurred.
Cannot be measured accurately.

Chapter 10 - Material Requirement Planning and Just-In-Time Systems

58.    The economic order quantity (EOQ) model does not take into account   163
Quantity discounts.
Ordering costs.
Carrying costs.
Lead time.
59.    The cycle time   163
Is the time between orders or between the beginnings of runs.
Is the rate of finished goods inventory build up.
Is the rate of work in process completion.
Is the transfer rate between successive work stations.
60.    When lead time and demand are not certain, the firm must carry extra units of inventory, called safety stock size. T F   167
61.    Which of the following is most related to dependent demand?   179
Distribution by value.
Critical probability.
62.    Which of the following is not related to Just-in-Time production?   192
Lumpy demand.
Insignificant inventory.
Pull system.
Total quality.

Chapter 11 - Planning and Controlling Projects

63.    Dependent demand   179
Should be forecast.
Should be calculated.
Was developed by the Japanese.
Is best applied to finished goods inventory.
64.    Manufacturing resources planning (MRPII) does not integrate such information as   187
Work force levels.
Just-in-time (JIT) information.
Inventory investment.
"What if" analyses.
65.    The information requirements for the technique MRP do not include   182
Master production schedule.
BOM file.
Inventory status file.
Production activity control.
66.    Which one of the following functional business systems supports the production/operations business function?   194
Compensation analysis.
Agile technology.
Cash management.
Sales force automation.
67.    _______________ support all managerial functions in terms of planning, control, and decision making.   194
Marketing information systems.
Management information systems.
Manufacturing information systems.
Finance information systems.
68.    A variety of manufacturing information systems are used to support computer-integrated manufacturing (CIM). CIM is an overall concept that stresses that the objectives of computer-based systems to manufacturing must be to accomplish which of the following?   194
Simplifying or reengineering production processes but not product designs or factory organization.
Automating production processes but not the business functions that support them.
Integrating all production and support processes using computer networks, cross-functional business software and other information technologies.
Integrating the collaboration and communication within the organization.
69.    ________________ is an overall concept that stresses that the goals of computer use in factory automation must be to: simplify, automate, and I integrate all production and support processes   194
Computer-integrated manufacturing (CIM)
Manufacturing execution.
Computer-aided manufacturing.
Process control.
70.    ________________ are performance monitoring information systems for factory floor operations. The systems include shop floor scheduling and control, machine control, robotics control and process control systems.   195
Computer-aided manufacturing (CIM) systems.
Manufacturing execution systems (MESs).
Process control systems.
Machine control systems.
71.    ________________ are those systems that automate the production process. For example, this could be accomplished by monitoring and controlling the production process in a factory or by directly controlling a physical process, a machine tool, or machines with some humanlike work capabilities.   194
Computer-aided manufacturing systems.
Manufacturing execution systems.
Process control systems.
Machine control systems.
72.    In a network, total slack refers to   209
The amount of time an activity can be delayed without interrupting the critical path.
The amount of time an activity can be delayed without delaying the early start of a successor activity.
The amount of time an activity can be delayed without delaying the project completion.
Tf = es – ls.
73.    PERT is combined with cost data to produce the Critical Path Method (CPM) to   210
Calculate the total project cost inclusive of the additional slack time.
Solve (1) which jobs to crash and (2) by how much..
Implement computer-integrated manufacturing concepts.
Calculate expected activity times.

Chapter 12 - Analysis of Waiting Lines and Queuing

74.    The ____________ is the time required when extra resources are added to complete the project in the minimum possible time.   212
Crash time..
Normal time.
CPA time.
Slack time.
75.    PERT is used for   201
Determining the optimal product mix.
Determining product costs.
Project management.
Determining the number of servers needed in a fast food restaurant.
76.    In PERT, the uncertain activity times are best described by a   205
Poisson probability distribution
Exponential probability distribution.
Beta probability distribution.
Normal probability distribution.
77.    The reciprocal of the mean interarrival time is known as   225
Service rate.
Utilization rate.
Utilization factor.
Mean arrival rate.

Chapter 13 - Quality Control and Continuous Improvement

78.    If the arrival rate is greater than the service rate   226
The system will never reach steady state.
The system is in steady state.
The situation will require changing the discipline.
A truncated queuing model needs to be considered.
79.    For a single-channel system with Poisson arrivals and a constant service time, what can be said of the mean queue length and the mean waiting time compared to when both arrival rates and service rate are Poisson-distributed?   229
Both will increase slightly.
One will increase and one will decrease.
They will both decrease.
They will not change.
80.    _____________________ is a probability distribution for service time.   224
Negative exponential.