OPS 571 Final Exam 2017 | Answers free | Operating Management

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1. Which of the following is considered a major process flow structure?
Lead Time
Fabrication
Lean Manufacturing
Project
2. ISO audits result in certifications that are done by first, second, or third parties.
Which of the following result in the best certification of a firm?
Certification is sought by any firm assuming they pay annual dues.
2nd Party – where a customer audits its supplier
3rd Party – where a qualified national or international standards/certifying agency
serves as an auditor
1st Party – where a firm audits itself against ISO standards
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3. Which of the following is ISO 14000 primarily concerned with?
Quality management
Time management
Continuous improvement management
Environmental management
4. Which is the one correct value stream principle?
Look for efficiencies in the factory, office, physical, procedural, and technical operations.
Eliminate waste that stops, slows down, or diverts the value stream.
Concentrate on speeding up value-adding operations rather than removing waste.
Keep the value stream moving at minimum velocity.
5. What is the starting point in developing a capacity plan for a health care operation?
Determining the effective capacity over time
Estimating design capacity
Forecasting patient demand for a reasonable length of time
Discovery of the bottleneck operation
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6. Which of the following is considered an organizational blueprint, which prescribes the quantity
and time frame for when each end product will be assembled?
MRP (Material Requirements Plan)
ERP (Enterprise Resource Planning)
MPS (Master Production Schedule)
WBS (Work Breakdown Structure)
7. Which of the following is an element that addresses elimination of waste under lean
production?
Kanban production control system
Production ahead of demand
Minimized run times
Group plant loading technology
8. In most cases, demand for products or services can be broken into several components. Which
of the following is considered a component of demand?
Level elements
Future elements
Past elements
Cyclical elements
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9. Design for manufacturing and assembly delivers product improvements by
emphasizing which of the following:
Reducing product quality during the assembly process
Designing products so they can be manufactured by a virtual factory
Reducing equipment in the production process
Simplification of the product by reducing the number of separate parts
10. Which of the following is one of the principles of reengineering?
Quality at the source
Do not select suppliers on the basis of price alone.
Have those who use the output of a process perform the process.
Leverage high cost employees with lower cost employees.
11. Which of the following is a characteristic that can be used to guide the design of
service systems?
Services are all similar.
Services businesses are inherently entrepreneurial.
Quality work means quality service.
Services cannot be inventoried.
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12. Considering Hau Lee’s uncertainty framework for classifying supply chains, which of
the following is given to a supply chain which has an evolving supply process based on
functional products?
Risk hedging
Forward looking
Efficient
Agile
13. There are many applications of poka-yokes in service organizations. Which of the
following is one of the three-T's used to classify poka-yokes?
Trust
Teamwork
Task
Time
14. Which of the following is a major factor that distinguishes service design and
development from manufacturing design and development?
The service package has the same legal protection available to manufactured goods.
Manufacturing is far more capital intensive than services.
The service process and service product can be developed independently.
The service package is the major output of the development process.
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15. A project can be segmented into which of the following?
Events
Sub-jobs
Work packages
Success markers
16. Which of the following is a cost impact and payoff analysis tool from the
operations consulting tool kit?
Statistical tools
Decision trees
Work sampling
Gap analysis
17. According to the theory of constraints, which of the following can be a capacityconstrained
resource (CCR)?
Product design
Inoperable equipment
An employee
A customer
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18. The ability to rapidly and inexpensively switch production from one product to
another enables which of the following:
Economies of shape
Economies of size
Economies of scale
Economies of scope
19. According to the theory of constraints, which of the following financial measurements
can be used to measure the firm's ability to make money?
Operating expenses
Dividends
Sales
Return on investment
20. Deming’s PDCA (plan, do, check, and act) cycle underlies what inherent Six Sigma
principle?
Continuous improvement
Control charting
Standard deviation
Project management
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21. Which of the following is usually included as an inventory holding cost?
Order placing
Quantity discounts
Breakage
Typing up an order
22. Which production process term best describes the situation when activities in a stage of
production must stop because there is no work?
Blocking
Starving
Staging
Buffering
23. In a Gantt chart the vertical axis represents which of the following?
Time
Revenue
Tasks
Cost
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24. The Shingo system states that the way to prevent defects from coming out at the end of a
process is to do which of the following:
Redesign the process in order to mitigate the bottlenecks.
Utilize SQC (statistical quality control).
Introduce controls within the process.
Slow down production rates until the process is in control.
25. Which of the following terms describes the time a unit spends actually being worked on
together with the time spent waiting in a queue?
Flow time
Build time
Cycle time
Run time
26. Which of the following is one of Dr. Eli Goldratt's rules of production scheduling for
optimized production technology?
An hour saved at a bottleneck operation does not increase the process flow.
If you lose an hour at a bottleneck it is better than making scrap.
Do not allow bottlenecks to govern the flow of the line.
Utilization and activation of a resource are not the same.
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27. During the implementation of a project, which of the following
should be the primary focus of a consulting firm?
The correct project software
Application of the learning curve theory
Tools and materials availability
People management skills
28. Which of the following is an analytical tool used in Six-Sigma
quality improvement programs?
Gantt charts
Pareto charts
Tree charts
Pedigree charts
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29. A project manager must consider several components when overseeing
the planning process of aggregate operations; specifically, whether such
components are factors that are internal or external to the organization.
Which of the following factors would be classified as an internal component
for an organization?
Inventory levels and economic conditions
Market demand and subcontractor capacity
Current physical capacity and current workforce
Competitor behavior and current workforce
30. Which of the following is the net requirement using an MRP program if the
gross requirement is 10,000 and the inventory on hand is 4,000?
10,000
14,000
6,000
4,000
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