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Question 1

Value Analysis is carried out at:

 a. the conceptual stage

 b. production stage

 c. product maturity stage

 d. product decline stage

    Question 2

Required capacity is a function of technology.

 True

 False

    Question 3

The Quality Function Deployment (QFD) methodology is used for:

 a. distributing a product

 b. monitoring a project's schedule

 c. determining a customer's needs and wants

 d. monitoring technological changes

    Question 4

A disadvantage of Flexible Manufacturing Systems (FMs) is that it requires substantial pre-planning.

 True

 False

    Question 5

Research indicates that 85% of quality problems are due to worker errors.

 True

 False

    Question 6

Virtual reality allows a designer to "move" though a 3-dimensional object such as a digital prototype car and to inspect physical relationships more accurately.

 True

 False

    Question 7

A benefit of mass customization is that it allows for:

 a. high variety and high volume simultaneously

 b. high variety and low volume simultaneously

 c. low variety and low volume simultaneously

 d. low variety and high volume

    Question 8

Dealing with customer complaints properly is part of the quality process.

 True

 False

    Question 9

Level strategy in aggregate planning involves:

 a. varying the number of employees needed for each production cycle

 b. changing capacity and demand constantly to keep production equal to demand

 c. producing the same amount for each production cycle

 d. high production cots

    Question 10

Kanban is:

 a. a symbol used to authorize production at "downstream" operations from "upstream" operations

 b. a flag for authorizing production at "upstream" operations from "downstream" operations

 c. a tool for computing economic order quantities

 d. a tool for computing production order quantities

    Question 11

Poka yoke in Japanese means foolproof design of products and processes.

 True

 False

    Question 12

A cybernetic view of productivity is that productivity is a measure of the relationship between:

 a. inputs and outputs

 b. inputs, outputs and the environment

 c. inputs, outputs and discontinuous technologies

 d. inputs, outputs and the Internet

    Question 13

Expert systems are a subset of the field of artificial intelligence.

 True

 False

    Question 14

The ABC analysis tool is a tool that:

 a. allows managers to focus on efficiency and other issues associated with the most important inventory items

 b. ensures more frequent counting of all inventory items

 c. is used for computing economic order quantities

 d. is used for computing quantity discounts

    Question 15

The term House of Quality is associated with:

 a. the headquarters of ISO 9000

 b. Analytical Hierarchy Process (AHP)

 c. Quality Function Deployment

 d. The headquarters of the Baldridge Award

    Question 16

Which of the following enables an organization to customize and integrate its business processes?

 a. DSS

 b. MIS

 c. ERP

 d. TPS

    Question 17

Spot the wrong answer. Supply chain encompasses:

 a. flows of materials

 b. flows of finance

 c. flows of information

 d. flows of manpower within the organization

    Question 18

When a product reaches the growth stage in its life cycle, corporate strategy should focus on:

 a. strengthening product differentiation

 b. beta testing

 c. product and production design

 d. standardization of product and processes

    Question 19

Check sheets are a convenient way of recording data to enhance better detection of patterns, such a s product failures.

 True

 False

    Question 20

Which of the following is not a location method?

 a. Taguchi method

 b. Center of gravity method

 c. Factor rating method

 d. Transportation method

    Question 21

In OM, value is a function of costs and quality.

 True

 False

    Question 22

All business, small and big, should forecast demand, competition and technology. The most important factor in forecasting demand is anticipating:

 a. technology

 b. competition

 c. inflation rates

 d. customer predilections

    Question 23

Computer Aided Manufacturing (CAM) uses computers to:

 a. compute optimal production runs

 b. control manufacturing equipment

 c. prepare production documents

 d. create digital objects

    Question 24

Which of the following is true of Flexible Manufacturing Systems (FMS)?

 a. They are automated warehouses

 b. Thy are the means for achieving human intelligence in machines

 c. They do not require substantial pre-planning

 d. They are integrated machine tools and robots designed to optimize the flow of materials and finished goods

    Question 25

When we design a product such that small changes in critical variables (features) will not cause the product to fail, we are said to be engaged in:

 a. Configuration management

 b. Concurrent engineering

 c. Modular designing

 d. Robust designing

    Question 26

Which of the following is a qualitative forecasting method?

 a. consumer survey

 b. exponential smoothing method

 c. trend projections method

 d. weighted moving averages method

    Question 27

JIT has an inherent capability for tolerating problems.

 True

 False

    Question 28

Which of the following is an example of the holding costs of inventory?

 a. re-tooling

 b. clerical support

 c. insurance

 d. maintenance

    Question 29

Which of the following is not a source of quality in production management?

 a. mission and vision statement

 b. JIT systems

 c. empowerment of employees

 d. a reduction in maintenance budget

    Question 30

Assignment is:

 a. an MRP method

 b. an aspect of the transportation model

 c. a JIT methodology

 d. a linear programming method

    Question 31

Full cost view of maintenance and the traditional OM view of maintenance are both products of classical economics. Therefore, both approaches consider opportunity costs from lost sales, lost market share and lost customers in their formulations.

 True

 False

    Question 32

In performing assessments of major new technologies, a Second Order Assessment covers:

 a. a decade or less

 b. many decades

 c. few decades

 d. a particular stage of the product's life cycle

    Question 33

The ideal inventory is no inventory.

 True

 False

    Question 34

An advantage of a repetitive-oriented production strategy is that:

 a. it offers flexibility in producing products

 b. it is a good compromise between process and product-oriented strategies

 c. the process (and the facility) is organized around the product

 d. the customer gets complete satisfaction of her needs and wants

    Question 35

New products need longer-term forecasts than mature products because current technologies are better able to capture information about new products than mature products.

 True

 False

    Question 36

To improve service processes, it is advisable to focus on the following EXCEPT:

 a. layout

 b. product

 c. human resources

 d. technology

    Question 37

Standard for the Exchange of Production (STEP) data allows for global design collaboration using common software protocols.

 True

 False

    Question 38

The Three Laws of real estate are:

 a. schedule, cost, quality

 b. quality, affordability, specification

 c. location, location, location

 d. location, cost, quality

    Question 39

Flow diagrams are like flow charts for computer programs.

 True

 False

    Question 40

Shrinking demand for old technology or products is an example of a cycle.

 True

 False

    Question 41

A company that does extensive international business is called:

 a. supranational

 b. multinational

 c. multidomestic

 d. global company

    Question 42

Short-term forecasts are better than long-term forecasts because:

 a. we have better technology for short-term forecasting than long-term

 b. it has been so proved by quantum physics

 c. it has been so proved by Newtonian physics

 d. the uncertainties associated with short-term are less than long-term

    Question 43

Forecasts are more accurate for individual products than for product aggregates.

 True

 False

    Question 44

Business Process Reengineering (BPR) is a routine re-thinking and redesigning of a business's processes.

 True

 False

    Question 45

Agile production is the opposite of mass customization.

 True

 False

    Question 46

A mass customization process strategy:

 a. is high-variety, high-volume

 b. is medium-variety, medium-volume

 c. is low-variety, medium-volume

 d. has standardized modules

    Question 47

The "Bathtub Curve" refers to:

 a. distribution of failure in machines and organizations

 b. a type of facilities lay out approach

 c. a type of capacity planning approach

 d. a tool used in aggregate planning

    Question 48

A process map:

 a. describes each step in the production process

 b. describes the time required to complete each step

 c. is a graph showing the production functions in the production process

 d. has arrows that connect boxes that show the sequence between steps in the production process

    Question 49

Possession of the latest technology ensures competitive advantage.

 True

 False

    Question 50

Another term for TQM is Six Sigma.

 True

 False

    Question 51

Research has established that hindsight is definitely better than forecast.

 True

 False

    Question 52

The "cost of quality" concept reflects the fact that the absence of quality processes can be very expensive.

 True

 False

    Question 53

Which of the following accounts for productivity lags in the services industry?

 a. uncontrollable information explosion

 b. services industry deals with intangibles that cannot be measured

 c. processes in the services industry are customized

 d. services industry is not interested in productivity measurement

    Question 54

The goal of a human resource strategy in operations management is to maximize productivity.

 True

 False

    Question 55

Cross docking means rapid transfer of goods directly from incoming trucks to outgoing trucks.

 True

 False