OPMA

A reason for studying operations management is which of the following?
A. OSM is essential for understanding organizational behavior.
B. Most business graduates do OSM work regardless of their job title.
C. All managers should understand the basic principles that guide the design of transformation processes.
D. OSM is a required course in all business degree programs.
E. OSM is the most rigorous business discipline.
C. All managers should understand the basic principles that guide the design of transformation processes.
The Goods-Services Continuum consists of which set of the following categories?
A. No goods, some goods, even mix, some service, no service
B. Pure goods, core goods, core services, pure services
C. No service, some service, good service, excellent service
D. Self-service, help desk service, face-to-face service, service-with-a-smile
E. None of the above
B. Pure goods, core goods, core services, pure services
Which of the following are defined as core goods?
A. Chemicals
B. Airlines
C. Data storage systems
D. Hotels
E. None of the above
C. Data storage systems
Current issues in OSM do not include:
A. Coordinating relationships between organizations.
B. Making senior management aware that OSM can be a competitive weapon.
C. The triple bottom line.
D. Managing customer touch points.
E. Increasing global servitization networks.
E. Increasing global servitization networks.
Which of the following are not listed in the text as jobs in OSM?
A. Department store manager
B. Project manager
C. Hospital administrator
D. Chief Information Officer
E. Call center manager
C. Hospital administrator
56. Which of the following is not a characteristic that distinguishes services from goods?
A. Service jobs are unskilled.
B. A service is intangible.
C. Services are perishable.
D. Services are heterogeneous.
E. None of the above.
A. Service jobs are unskilled.
Which of the following is not a way that operations and supply processes are categorized?
A. Planning
B. Return
C. Delivery
D. Selecting
E. Making
D. Selecting
One of the package of features that make up a service are:
A. Appearance
B. Facilitating goods
C. Packaging
D. Cost
E. Implied use
B. Facilitating goods
The philosophical leaders of the quality movement, Philip Crosby, W. Edwards Deming, and Joseph M. Juran had the same general message about what it took to achieve outstanding quality. Which of the following was not part of that message?
A. Quality is free
B. Leadership from senior management
C. Customer focus
D. Total involvement of the workforce
E. Continuous improvement
A. Quality is free
The philosophical leaders of the quality movement, Philip Crosby, W. Edwards Deming, and Joseph M. Juran had the same general message about what it took to achieve outstanding quality. Which of the following was part of that message?
A. Fourteen steps for quality management
B. Quality is free
C. Customer focus
D. Zero defects
E. Six-sigma
C. Customer focus
An analytical tool used in six-sigma quality improvement programs is which of the following?
A. Leadership
B. Continuous improvement
C. Quick response
D. Partnership development
E. Checksheets
E. Checksheets
Which of the following is not an analytical tool used in six-sigma quality improvement programs?
A. Run charts
B. Pass charts
C. Cause-and-effect diagrams
D. Flowcharts
E. Pareto charts
B. Pass charts
A flow chart as part of a six-sigma quality improvement process might be found in which DMAIC category?
A. Define
B. Measure
C. Analyze
D. Improve
E. Control
A. Define
A fishbone diagram as part of a six-sigma quality improvement process might be found in which DMAIC category?
A. Define
B. Measure
C. Analyze
D. Improve
E. Control
C. Analyze
An opportunity flow diagram as part of a six-sigma quality improvement process might be found in which DMAIC category?
A. Define
B. Measure
C. Analyze
D. Improve
E. Control
D. Improve
A Pareto chart as part of a six-sigma quality improvement process might be found in which DMAIC category?
A. Define
B. Measure
C. Analyze
D. Improve
E. Control
B. Measure
Which of the following is an analytical tool used in six-sigma quality improvement programs?
A. Leadership
B. Pareto Charts
C. Management by fact
D. Continuous improvement
E. Kaizen
B. Pareto Charts
Which of the following is not an analytical tool used in six-sigma quality improvement programs?
A. Flowcharts
B. Run charts
C. Control charts
D. Pareto analysis
E. Tendency analysis
E. Tendency analysis
Failure mode and effect analysis is used in six-sigma projects. It involves which of the following?
A. Closely examining each rejected part to determine the cause
B. A careful sampling plan
C. Calculating a risk priority number for each possible failure
D. Reporting the effect each failure has had on a customer
E. Multivariate testing
C. Calculating a risk priority number for each possible failure
Design of experiments is a statistical methodology often used in six-sigma projects. It aims to accomplish which of the following?
A. Keep careful track of the occurrences of each possible defect
B. Determine the cause and effect relationships between process variables and output
C. Report defects to management on a Pareto chart
D. Carefully change each individual process variable until the cause of a defect is found
E. Eliminate defects by finding out who or what is causing them
B. Determine the cause and effect relationships between process variables and output
The Malcolm Baldrige award selection process helps improve quality and productivity by which of the following means?
A. Stimulating foreign based suppliers of American companies to improve quality
B. Reporting quality levels among American firms
C. Identifying American firms with the most difficult quality problems
D. Providing feedback to applicants by the examiners
E. Helping Baldrige award winners increase their sales
D. Providing feedback to applicants by the examiners
Which of the following are eligible companies to be considered for the Baldrige award?
A. Auditing firms
B. Offshore suppliers to U. S. companies
C. Firms operating only outside the U. S.
D. State Government agencies
E. None of the above
A. Auditing firms
Which of the following are not eligible to be considered for the Baldrige Award?
A. Small businesses
B. Health care organizations
C. Educational institutions
D. State highway patrol organizations
E. Nuclear power plants
D. State highway patrol organizations
The primary purpose of the Malcolm Baldrige National Quality Award is which of the following?
A. To encourage the spread of statistical quality control
B. To improve human resource development and management in manufacturing
C. To improve competitiveness of American firms
D. To prove that American firms were competitive in quality
E. To emphasize the use of quantitative methods in process management
C. To improve competitiveness of American firms
The Grading Criteria of the Baldrige Award for total quality management includes which of the following?
A. Future plans
B. Information and analysis
C. Standardization
D. Control
E. None of the above
B. Information and analysis
The Malcolm Baldrige National Quality Award is given to organizations that have done which of the following?
A. Instituted a six-sigma approach to total quality control
B. Demonstrated a high level of product quality
C. Demonstrated outstanding quality in their products and processes
D. Have a world-class quality control function
E. Most significantly improved their product quality levels
C. Demonstrated outstanding quality in their products and processes
Which of the following is not a category reported in applying for the Baldrige Award?
A. Corporate leadership
B. Use of statistical quality control tools
C. Business results
D. Consumer and market focus
E. Strategic planning
B. Use of statistical quality control tools
The dimension of design quality that concerns the sensory characteristics of the product is which of the following?
A. Features
B. Serviceability
C. Perceived quality
D. Reputation
E. Aesthetics
E. Aesthetics
The dimension of design quality that concerns the consistency of performance over time or the probability of failing is which of the following?
A. Response
B. Serviceability
C. Reliability
D. Reputation
E. Perceived quality
C. Reliability
The dimension of design quality that concerns secondary characteristics is which of the following?
A. Features
B. Serviceability
C. Reliability
D. Reputation
E. Perceived quality
A. Features
Which of the following is a dimension of design quality?
A. Price
B. Features
C. Color
D. Weight
E. Quality at the source
B. Features
Which of the following is a dimension of design quality?
A. Aesthetics
B. Price
C. Quality at the source
D. Distribution
E. Leadership
A. Aesthetics
Which of the following is a basic assumptions that justify an analysis of the costs of quality?
A. Failures are caused
B. Prevention is more expensive
C. Performance can be learned
D. Rules of thumb don’t always work
E. Appraisal costs are less than prevention costs
A. Failures are caused
A cost of quality classification is which of the following?
A. Material costs
B. Prevention costs
C. Variable overhead
D. Direct labor
E. Inventory costs
B. Prevention costs
Which of the following is the cost of quality classification for costs such as scrap, rework, or repair?
A. Appraisal costs
B. Prevention costs
C. External failure costs
D. Internal failure costs
E. Rework and wastage
D. Internal failure costs
Which of the following is the cost of quality classification for costs such as inspection, testing, and other tasks to ensure that the product or process is acceptable?
A. Appraisal costs
B. Prevention costs
C. External failure costs
D. Internal failure costs
E. Checking costs
A. Appraisal costs
Which of the following is the cost of quality classification for costs such as defects that pass through the system, such as customer warranty replacements, loss of customer or goodwill, handling complaints, and product repair?
A. Appraisal costs
B. Prevention costs
C. External failure costs
D. Customer return cost
E. Workmanship costs
C. External failure costs
Which of the following tools uses a graphical representation of the production process to suggest potential sources of process variation?
A. Process flow diagram
B. Check sheet
C. Pareto chart
D. Histogram
E. Run chart
A. Process flow diagram
In monitoring process quality we might use which of the following statistics?
A. Absolute values
B. Percentage deviation from tolerance centers
C. “k” values for the sample mean
D. Logarithmic control intervals
E. Difference between the highest and lowest value in a sample
E. Difference between the highest and lowest value in a sample
You have just used the capability index (Cpk) formulas to compute the two values “min [2, 2.5].” Which of the following is the proper interpretation of these numbers?
A. The true capability index value is 2.5
B. The mean of the production process has shifted to the left of the design limits
C. The mean of the production process has shifted to the right of the design limits
D. The mean has not shifted at all
E. The true capability index value is between 2 and 2.5
B. The mean of the production process has shifted to the left of the design limits
You have just used the capability index (Cpk) formulas to compute the two values “min [1, 1].” Which of the following is the proper interpretation of these numbers?
A. The true capability index value is exactly 1
B. The mean of the production process has shifted to the left of the design limits
C. The mean of the production process has shifted to the right of the design limits
D. The mean has not shifted at all
E. None of the above
D. The mean has not shifted at all
You have just used the capability index (Cpk) formulas to compute the two values “min [1.5, 1].” Which of the following is the interpretation of these numbers?
A. The true capability index value is 1
B. The mean of the production process has shifted to the left of the design limits
C. The mean of the production process has shifted to the right of the design limits
D. The mean has not shifted at all
E. The true capability index value is between 1.5 and 1
C. The mean of the production process has shifted to the right of the design limits
Quality control charts usually have a central line and upper and lower control limit lines. Which of the following is not a reason that the process being monitored with the chart should be investigated?
A. A large number of plots are close to the upper or lower control lines
B. Erratic behavior of the plots
C. A single plot falls above or below the control limits
D. A change in raw materials or operators
E. A run of five above the central line
D. A change in raw materials or operators
Quality control charts usually have a central line and upper and lower control limit lines. Which of the following is a reason that the process being monitored with the chart should be investigated?
A. A single plot falls above or below the control limits
B. Normal behavior
C. A large number of plots are on or near the central line
D. No real trend in any direction
E. A change in raw materials or operators
A. A single plot falls above or below the control limits
If there are 120 total defects from 10 samples, each sample consisting of 10 individual items in a production process, which of the following is the fraction defective that can be used in a “p” chart for quality control purposes?
A. 120
B. 10
C. 8
D. 1.2
E. 0.8
D. 1.2
If there are 400 total defects from 8 samples, each sample consisting of 20 individual items in a production process, which of the following is the fraction defective that can be used in a “p” chart for quality control purposes?
A. 400
B. 160
C. 2.5
D. 1.0
E. 0.4
C. 2.5
You want to determine the upper control line for a “p” chart for quality control purposes. You take several samples of a size of 100 items in your production process. From the samples you determine the fraction defective is 0.05 and the standard deviation is 0.01. If the desired confidence level is 99.7 percent, which of the following is the resulting UCL value for the line?
A. 0.39
B. 0.08
C. 0.06
D. 0.05
E. None of the above
B. 0.08
You want to determine the lower control line for a “p” chart for quality control purposes. You take several samples of a size of 50 items in your production process. From the samples you determine the fraction defective is 0.006 and the standard deviation is 0.001. If the desired confidence level is 99.7 percent, which of the following is the resulting LCL value for the line?
A. 0.0
B. 0.002
C. 0.003
D. 0.004
E. None of the above
C. 0.003
You want to determine the control lines for a “p” chart for quality control purposes. If the desired confidence level is 99 percent, which of the following values for “z” would you use in computing the UCL and LCL?
A. 0.99
B. 2
C. 2.58
D. 3
E. None of the above
C. 2.58
You want to determine the control lines for a “p” chart for quality control purposes. If the total number of defects from all samples is 2,500, the number of samples is 100, and the sample size is 50, which of the following would be the standard deviation used in developing the control lines?
A. 0.4900
B. 0.2499
C. 0.1556
D. 0.0707
E. 0.02499
D. 0.0707
You want to determine the control lines for a “p” chart for quality control purposes. If the total number of defects from all samples is 560, the number of samples is 70, and the sample size is 80, which of the following would be the standard deviation used in developing the control lines?
A. 0.9000
B. 0.4556
C. 0.0335
D. 0.0011
E. 0.0112
C. 0.0335
For which of the following should we use a “p” chart to monitor process quality?
A. Defective electrical switches
B. Errors in the length of a pencil
C. Weight errors in cans of soup
D. Temperature of entrees in a restaurant
E. Letter grades on a final examination
A. Defective electrical switches
For which of the following should we use a “p” chart to monitor process quality?
A. The dimensions of brick entering a kiln
B. Lengths of boards cut in a mill
C. The weight of fluid in a container
D. Grades in a freshman “pass/fail” course
E. Temperatures in a classroom
D. Grades in a freshman “pass/fail” course
With which of the following should we use an “X-bar” chart based on sample means to monitor process quality?
A. Grades in a freshman “pass/fail” course
B. Tire pressures in an auto assembly plant
C. Vehicles passing emissions inspection
D. Computer software errors
E. Number of units with missing operations
B. Tire pressures in an auto assembly plant
Which of the following should we use an “R” chart to monitor process quality?
A. Grades in a freshman “pass/fail” course
B. Tire pressures in an auto assembly plant
C. Vehicles passing emissions inspection
D. Computer software errors
E. Number of units with missing operations
B. Tire pressures in an auto assembly plant
Which of the following should we use an “R” chart to monitor process quality?
A. Weighing trucks at a highway inspection station to determine if they are overloaded
B. Deciding whether an airliner has sufficient fuel for its trip
C. Student grades measured from 1 to 100
D. Determining whether vehicles from a motor pool will run
E. Determining the accuracy of a forecast of “snow”
C. Student grades measured from 1 to 100
You are developing an “X-bar” chart based on sample means. You know the standard deviation of the sample means is 4, the desired confidence level is 99.7 percent, and the average of the sample means is 24. Which of the following is your UCL?
A. 36
B. 24
C. 12
D. 4
E. None of the above
A. 36
You are developing an “X-bar” chart based on sample means. You know the standard deviation of the sample means is 4, the desired confidence level is 99 percent, and the average of the sample means is 20. Which of the following is your LCL?
A. 36
B. 24
C. 9.68
D. 16.79
E. 30.32
C. 9.68
You want to develop a three-sigma “R” chart. You know the average range is 5 based on several samples of size 10. Which of the following is the resulting UCL?
A. 20.9
B. 8.9
C. 7.02
D. 5
E. 3.1
B. 8.9
You want to develop a three-sigma “R” chart. You know the average range is 12 based on several samples of size 6. Which of the following is the resulting LCL?
A. 20.0
B. 18.3
C. 7.02
D. 5.6
E. 0.0
E. 0.0
If you are going to develop an “X-bar” chart based on range statistics and you are using a sample size of 12 for your charting purposes. Which of the following is the A2 factor for the “X-bar” chart?
A. 0.37
B. 0.31
C. 0.27
D. 0.22
E. .18
C. 0.27
If you are going to develop an “R” chart based on range statistics and you are using a sample size of 9 for your charting purposes. Which of the following is the lower control limit D3 factor for the chart?
A. 0.08
B. 0.14
C. 0.18
D. 0.22
E. 0.29
C. 0.18
If you are going to develop an “R” chart based on range statistics and you are using a sample size of 15 for your charting purposes. Which of the following is the upper control limit D4 factor for the chart?
A. 1.65
B. 1.70
C. 1.76
D. 1.87
E. 1.92
A. 1.65
A project can be subdivided into which of the following?
A. Job orders
B. Subjobs
C. Work Package
D. Sub-paths
E. Events and decisions
C. Work Package
A project starts out as which of the following?
A. A Statement of Work
B. Critical Path Method (CPM)
C. A series of milestones
D. A Gantt chart
E. A latest-start-time estimate
A. A Statement of Work
. What is a work breakdown structure?
A. A list of the activities making up the higher levels of the project
B. A definition of the hierarchy of project tasks, subtasks, and work packages
C. A depiction of the activities making up a project
D. A Gantt chart
E. A structure that is incompatible with the Critical Path Method
B. A definition of the hierarchy of project tasks, subtasks, and work packages
Which of the following is a reason that project management is important?
A. Organizations do not allow hastily planned projects
B. Organizational hierarchies are becoming more robust
C. The firm’s reputation is not a concern since projects are invisible to the outside world
D. Projects are a way to promote effective leadership
E. It is usually more important to complete a project on time than to complete it correctly
D. Projects are a way to promote effective leadership
In a Gantt chart the horizontal axis is usually which of the following?
A. Activities
B. Cost
C. Profit
D. Time
E. Milestones
D. Time
Which of the following is a graphic project report used in project management?
A. Project proposal
B. Approved project plan
C. Humphrey chart
D. Equipment and supplies chart
E. Cost and performance tracking schedule
E. Cost and performance tracking schedule
An advantage of a pure project where self-contained teams work full time on a project is which of the following?
A. Team members can work on several projects
B. Functional area is a “home” after the project is completed
C. There are duplicated resources
D. Lines of communication are shortened
E. Overall organizational policies and goals can be ignored
D. Lines of communication are shortened
Some of the advantages of a functional project where the project is housed in a functional division include which of the following?
A. The project manager has full authority over the project
B. Team pride, motivation, and commitment are high
C. A team member can work on several projects
D. Needs of the client are secondary
E. None of the above
C. A team member can work on several projects
A series of projects that are organized in such a way that each project utilizes people from different functional areas is using which of the following organizational structures?
A. Matrix project
B. Integrated Task Force
C. Functional project
D. Pure project
E. Cross-functional flexible team
A. Matrix project
You are looking at a chart that has the terms BCWS, BCWP and AC indicating lines on the chart. What kind of chart are you looking at?
A. Gantt Chart
B. PERT Chart
C. Bar/Milestone Chart
D. Total Program Cost Breakdown
E. EVM Chart
E. EVM Chart
PERT is an abbreviation for which of the following methodologies?
A. Product Evaluation Result and Treatment
B. Programming and Evaluation Realization Technology
C. Program Evaluation and Review Technique
D. Process Evaluation and Review Technology
E. It is a name, not an abbreviation for anything
C. Program Evaluation and Review Technique
You have just been assigned to oversee a series of projects. Functional areas will loan you personnel for each project and separate project managers will be responsible for separate projects. These project managers will report to you. Which project management structure is being used?
A. Pure Project
B. Task force
C. Matrix Project
D. Functional Project
E. PERT
E. PERT
You have been placed in charge of a large project. Shortened communication lines are required to insure quick resolution of problems as they arise. You recognize that the project is going to take a lot of time and require a lot of team pride, motivation, and commitment by all members. Which project management strucTURE should you use in this situation?
A. Pure Project
B. Task force
C. Matrix Project
D. Functional Project
E. PERT
A. Pure Project
A simple project listing of five activities and their respective time estimates are presented below:

Using CPM, which activities make up the critical path?
A. A, C, D, E
B. A, B, D, E
C. A, C, B, D, E
D. A, D, E
E. None of the above

B. A, B, D, E
A simple project listing of five activities, their predecessors and their respective time estimates are presented below:

Using CPM, what is the Latest Finish Time for the last activity in this project (i.e., the total time to complete the project)?
A. 10 days
B. 7 days
C. 8 days
D. 12 days
E. 9 days

D. 12 days
A simple project listing of five activities, their predecessors and their respective time estimates are presented below:

Using the CPM, which activities have slack in this project?
A. A
B. B
C. C
D. D
E. C and E

C. C
A company must perform a maintenance project consisting of seven activities. The activities, their predecessors, and their respective time estimates are presented below:

Using CPM, which activities make up the critical path?
A. A, B, D, F, G
B. A, C, E, F, G
C. A, C, B, F, E
D. A, D, E
E. None of the above

A. A, B, D, F, G
A company must perform a maintenance project consisting of seven activities. The activities, their predecessors, and their respective time estimates are presented below:

Using CPM, what is the Latest Finish Time for the last activity in this project (i.e., the total time to complete the project)?
A. 9 days
B. 10 days
C. 11 days
D. 12 days
E. 13 days

C. 11 days
A company must perform a maintenance project consisting of seven activities. The activities, their predecessors, and their respective time estimates are presented below:

Using CPM, which activities have slack in this project?
A. A, B, C
B. B, D
C. Only C
D. C, E
E. F, G

D. C, E
For an activity in a CPM analysis, the Early Finish time is 8 and the Late Finish time is 10. Which of the following statements is true?
A. The Late Finish is 12
B. The Early Finish is 10
C. The slack for this activity is 2
D. The duration of this activity is 2
E. The activity is on the critical path
C. The slack for this activity is 2
For an activity in a CPM analysis the Early Finish time is 20 and the Late Finish time is 20. Which of the following statements is true?
A. The activity’s late start must happen before its early start
B. The activity is on the critical path
C. The slack for this activity is 20
D. The duration of this task is zero
E. The duration of this task is 20
B. The activity is on the critical path
A listing of immediate predecessor activities is important information in a CPM analysis for which of the following reasons?
A. It specifies the relationships in the CPM network of activities
B. It provides useful timing information
C. It includes cost information
D. It is the probability information required in the final step of CPM
E. None of the above
A. It specifies the relationships in the CPM network of activities
You have just performed a CPM analysis and have found that more than one path through the project network has zero slack values. What can you conclude?
A. You have incorrectly performed the analysis
B. You have multiple critical paths
C. Only one path is optimal
D. More than one path is optimal
E. The project will not be completed by the desired time
B. You have multiple critical paths
You have the following time and cost information below for use in a Time-Cost CPM Scheduling model.

What are the three costs per unit of time to expedite each activity?
A. A=$300, B=$200, C=$300
B. A=$100, B=$200, C=$400
C. A=$200, B=$200, C=$200
D. A=$100, B=$400, C=$300
E. A=$200, B=$300, C=$400

E. A=$200, B=$300, C=$400
Below are the data for a Time-Cost CPM Scheduling model analysis. The time is in days and the costs include both direct and indirect costs.

What are the total time of this project and total normal cost?
A. Total time is 13 days, total cost is $1200
B. Total time is 12 days, total cost is $1700
C. Total time is 11 days, total cost is $1600
D. Total time is 10 days, total cost is $1750
E. Total time is 9 days, total cost is $1700

B. Total time is 12 days, total cost is $1700
Below are the data for a Time-Cost CPM Scheduling model analysis. The time is in days and the costs include both direct and indirect costs.

If you crash this project to reduce the total time by one day what is the total time of the project and total cost?
A. Total time is 13 days, total cost is $1500
B. Total time is 12 days, total cost is $2000
C. Total time is 12 days, total cost is $2300
D. Total time is 11 days, total cost is $1850
E. Total time is 11 days, total cost is $2350

D. Total time is 11 days, total cost is $1850
Below are the data for a Time-Cost CPM Scheduling analysis. The time is in days and the costs include both direct and indirect costs.

If you crash this project to reduce the total time by four days, what is the total time of the project and total cost?
A. Total time is 10 days, total cost is $2500
B. Total time is 9 days, total cost is $2300
C. Total time is 8 days, total cost is $2750
D. Total time is 8 days, total cost is $1850
E. Total time is 9 days, total cost is $2350

C. Total time is 8 days, total cost is $2750
You have collected the data for a Time-Cost CPM Scheduling model analysis. The time is in days and the project “direct costs” are given below.

The indirect costs for the project are determined on a daily duration basis. If the project lasts 16 days the total indirect costs are $400, 15 days they will be $250, 14 days they will be $200, and 13 days they will be $100. If you crash this project by one day what is the total (i.e., direct and indirect) project cost?
A. $2150
B. $2300
C. $2400
D. $2450
E. $2500

A. $2150
You have collected the data for a Time-Cost CPM Scheduling model analysis. The time is in days and the project “direct costs” are given below.

The indirect costs for the project are determined on a daily duration basis. If the project lasts 16 days the total indirect costs are $400, 15 days they will be $250, 14 days they will be $200, and 13 days they will be $100. At what day do we achieve the lowest total project cost (i.e., direct plus indirect costs)?
A. 16 days
B. 15 days
C. 14 days
D. 13 days
E. 12 days

B. 15 days
You know when you have arrived at the optimal solution in using the Time-Cost CPM Scheduling model analysis when what happens?
A. You have found the critical path
B. You have run out of crash time
C. You no longer have a linear relationship with costs
D. You have reached the minimum total cost
E. You have run out of crash costs
D. You have reached the minimum total cost
In CPM analysis it is generally expected that the relationship between activity direct costs and project indirect costs will be which of the following?
A. Positively related
B. Optimally related
C. Negatively related
D. Not related
E. Fractionally related
C. Negatively related
Which of the following is an assumption made in using CPM analysis?
A. Project activities flow together without distinct boundaries
B. Activities’ sequential relationships can be specified and networked
C. Project management should focus on crashing activities
D. There is never a work stoppage in any activity until it is complete
E. There are no learning curve effects in setting activity time
B. Activities’ sequential relationships can be specified and networked
Which of the following is a criticism made about CPM analysis?
A. Project activity sequencing relationships can be specified and networked
B. Project control should focus on the critical path
C. Projects can change over time and networks can be inaccurate
D. CPM does not foresee changes while the project is under way
E. The pessimistic time estimate is usually closest to the actual time
C. Projects can change over time and networks can be inaccurate
An assumption of CPM analysis is that project activities can be identified and have a clear beginning and ending point. Which of the following is a valid criticism of this assumption?
A. Complex projects can change over time and networks become inaccurate
B. Project control cannot always focus on the critical path
C. The critical path through the network can change when activities are crashed
D. It is not necessarily true that the critical path is the longest path through the network
E. None of the above
A. Complex projects can change over time and networks become inaccurate
A BOM file is called which of the following?
A. Product structure tree
B. Stocking plan
C. Inventory usage record
D. Production parts plan
E. Time bucket schedule
A. Product structure tree
Which of the following industry types has high expected benefits from the application of MRP?
A. Fabricate-to-stock
B. Fabricate-to-order
C. Assemble-to-stock
D. Continuous process
E. Service and repair parts
C. Assemble-to-stock
Which of the following industry types has high expected benefits from the application of MRP?
A. Fabricate-to-order
B. Hospitals
C. Assemble-to-order
D. Aircraft manufacturers
E. Oil refineries
C. Assemble-to-order
Which of the following industry types will not benefit greatly from the application of MRP?
A. Fabricate-to-order
B. Assemble-to-stock
C. Assemble-to-order
D. Manufacture-to-order
E. None of the above
A. Fabricate-to-order
A product structure tree can do which of the following?
A. Help to compute component usage
B. Reduce product scrap
C. Reduce labor overtime
D. Reduce regular time labor
E. Locate raw material supplies
A. Help to compute component usage
Which of the following is an input to the master production schedule (MPS)?
A. Inventory records file
B. The aggregate plan
C. The bill of materials
D. The exception report
E. Planned order schedules
B. The aggregate plan
Which of the following is one of the main purposes of a MRP system?
A. Educate personnel in basic work rules.
B. To determine the amount of materials needed to produce each end item.
C. Stimulate the work force.
D. Decrease labor requirements.
E. Increase inventory accuracy.
B. To determine the amount of materials needed to produce each end item.
One of the main purposes of a MRP system is which of the following?
A. Track inventory levels.
B. Create productive capacity.
C. Decrease layers of management.
D. Develop schedules specifying when each component should be ordered or produced.
E. Upgrade manufacturing’s professionalism.
D. Develop schedules specifying when each component should be ordered or produced.
Which of the following is most closely related to the reason a firm might implement MRP?
A. So they can order the right parts
B. So they can order parts sufficient for immediate use
C. So they can insure that parts to arrive prior to when they are needed
D. To assure appropriate quality levels
E. To keep process costs between the LCL and the UCL
A. So they can order the right parts
MRP systems seek to achieve which of the following?
A. Minimize lot sizes
B. Determine the number of dependent demand items needed
C. Relieve capacity bottlenecks
D. Provide a yardstick for future improvements
E. Improve on JIT methods
B. Determine the number of dependent demand items needed
Which of the following is an input to the master production schedule?
A. Prototype products from product development
B. Aggregate component schedule
C. Peg reports
D. Exception reports
E. Forecasts of demand from random customers
E. Forecasts of demand from random customers
Which of the following is an input to the master production schedule?
A. Bill of materials (BOM) file
B. Inventory records file
C. Exception reports
D. Planned-order schedules
E. None of the above
E. None of the above
Which of the following is an input file necessary to run an MRP system?
A. Bill of materials (BOM) file
B. Quality management report
C. Exception reports
D. Planned-order schedules
E. Purchasing contracts
A. Bill of materials (BOM) file
Which of the following is an input file necessary to run an MRP system?
A. Exception report
B. Computer-aided-design files
C. Inventory records file
D. Personnel files
E. Planned order schedule
C. Inventory records file
Which of the following is not a production activity report generated by MRP?
A. Exception report
B. Planning report
C. Performance control report
D. Planned-order schedules
E. Bill of materials report
E. Bill of materials report
In an MRP program, the program accesses the status of any file in specific periods called which of the following?
A. Cubed time units
B. Time buckets
C. BOM units
D. Time modules
E. Time lines
B. Time buckets
Which of the following files allows us to retrace a material requirement upward in the product structure through each level, identifying each parent item that created the demand?
A. Planning bill of materials file
B. Modular bill of materials file
C. Super bill of materials file
D. Exception report file
E. Peg record file
E. Peg record file
We would expect to see which of the following in an MRP system’s inventory transactions file?
A. End items produced
B. Late/early delivery records
C. Scrap parts
D. Labor efficiency
E. Computer errors
C. Scrap parts
In a typical inventory status record which of the following would you not expect to see?
A. Scrap allowance
B. Order quantity
C. Gross requirements
D. Planned-order releases
E. Lost items
E. Lost items
Which of the following is considered a primary report in an MRP system?
A. Planning reports
B. Performance reports
C. Exception reports
D. Planned order schedules
E. Cycle counting reports
D. Planned order schedules
Which of the following is considered a secondary report in an MRP system?
A. Planned order schedule
B. Performance reports
C. Inventory record
D. Firm orders from known customers
E. Engineering change reports
B. Performance reports
Which of the following is considered a primary report in an MRP system?
A. Planned order schedule
B. Peg report
C. Planning report
D. Inventory accuracy report
E. Aggregate production plan report
A. Planned order schedule
Which of the following is the net requirement using an MRP program if the gross requirement is 1,250 and the inventory on hand is 50?
A. 1,200
B. 1,300
C. 1,150
D. 2,450
E. None of the above
A. 1,200
Which of the following is the net requirement using an MRP program if the gross requirement is 1,000 and the inventory on hand is 500?
A. 1,000
B. 950
C. 500
D. 400
E. 350
C. 500
Which of the following is the planned-order release using an MRP program if the gross requirement is 5,000 and the inventory on hand is 1,200?
A. 5,000
B. 4,500
C. 3,800
D. 1,200
E. None of the above
C. 3,800
Which of the following is the planned-order release using an MRP program if the gross requirement is 670 and the inventory on hand is 600?
A. 670
B. 600
C. 530
D. 70
E. None of the above
D. 70
Which of the following can be used for lot sizing in an MRP system?
A. Low-level coding
B. Time bucket size
C. Least unit cost
D. Inventory record file
E. Peg inventory
C. Least unit cost
Which of the following is not a lot sizing technique used in MRP systems?
A. Lot-for-lot (L4L)
B. Economic order quantity (EOQ)
C. Least total cost (LTC)
D. Least unit cost (LUC)
E. Warehouse loading factor (WLF)
E. Warehouse loading factor (WLF)
Under the lot-for-lot (L4L) lot sizing technique as used in MRP, we would expect which of the following?
A. A consistent lag of supply behind demand
B. Minimized carrying costs
C. Minimized set-up costs
D. A just in time management philosophy
E. Minimized quality problems
B. Minimized carrying costs
If annual demand is 6,125 units, annual holding cost is $5 per unit, and setup cost per order is $50, which of the following is the EOQ lot size?
A. 350
B. 247
C. 230
D. 185
E. 78
A. 350
If annual demand is 12,000 units, annual holding cost is $15 per unit, and setup cost per order is $25, which of the following is the EOQ lot size?
A. 2,000
B. 1,200
C. 1,000
D. 300
E. 200
E. 200
Which of the following is a dynamic lot-sizing technique that calculates the order quantity by comparing the carrying cost and the setup (or ordering) costs for various lot sizes and then selects the lot in which these are most nearly equal?
A. Economic Order Quantity
B. Lot for lot
C. Least total cost
D. Least unit cost
E. ABC analysis
C. Least total cost
Which of the following is a dynamic lot-sizing technique that calculates the order quantity by comparing the carrying cost and the setup (or ordering) costs for various lot sizes and then selects the lot size in which these are most nearly equal?
A. Kanban
B. Just-in-time system
C. MRP
D. Least unit cost
E. Least total cost
E. Least total cost
Which of the following is a dynamic lot-sizing technique that adds ordering and inventory carrying cost for each trial lot size and divides by the number of units in each lot size, picking the lot size with the lowest unit cost?
A. Economic order quantity
B. Lot-for-lot
C. Least total cost
D. Least unit cost
E. Inventory item averaging
D. Least unit cost