Production and Quality Tools

1. Which of these approaches allows firms to increase productivity by making operations larger?
a. Economies of scale
b. Technology innovation
c. usiness process redesign
d. !utomation
". Which of these is #$T an input in operations?
a. %oods b. People c. &aterial d. 'apital
(. What do you call the process of designing) planning) and managing of the daily activities of a business?
a. *inancial management
b. $perations management
c. &arketing management
d. Production management
+. These are special types of data,collection forms in which the results may be interpreted on the form directly
without additional processing.
a. *ish one -iagrams
b. .un 'harts
c. *lowcharts
d. 'heck /heets
0. Which pertains to the capability to rapidly increase or decrease production levels?
a. 'apacity *ocus
b. 'apacity 1imit
c. 'apacity *le2ibility
d. 'apacity $perations
3. Which refers to the amount of output that a system is capable of achieving over a specific period?
a. 'apacity b. $perations c. Process d. -evelopment

4. What is the range of capacity planning that takes more than a year?
a. 1ong .ange
b. &id,.ange
c. 5ntermediate .ange
d. /hort .ange
6. What do you call the line displaying the relationship between unit production and the cumulative number of units
produced?
a. 1earning 1ine
b. 1earning 7yperbole
c. 1earning 'urve
d. 1earning !rea
8. 7ow do we compute for the capacity utili9ation rate?
a. 'apacity :sed 2 est $perating 1evel
b. 'apacity :sed ; est $perating 1evel < 1==>
c. 'apacity :sed < est $peration
d. 'apacity :sed < est $perating 1evel
1=. Which time duration of capacity planning may be varied by alternatives like hiring) layoffs and subcontracting?
a. 1ong .ange
b. &id,.ange
c. 5ntermediate .ange
d. /hort .ange
11. Which time duration of capacity planning is tied to daily or weekly scheduling process?
a. 1ong .ange
b. &id,.ange
c. 5ntermediate .ange
d. /hort .ange
1". This type of manufacturing structure must always remain in a fi2ed location.
a. Pro?ect
b. Workstation
c. &anufacturing 'ell
d. !ssembly 1ine
1(. This is the development and management of supplier relationships to ac@uire goods and services.
a. /upplier /ourcing
b. $utsourcing
c. /trategic /ourcing
d. &anagement /ourcing
1+. This inventory control model is used when the item should be in,stock and delivered at a certain interval of time.
a. /ingle period model
b. *i2ed order model
c. *i2ed time period model
d. 5n,stock model
10. This rule is used to minimi9e total processing time for the group of ?obs in a schedule.
a. AohnstonBs .ule
b. AonsonBs .ule
c. AohnsonBs .ule
d. AonBs .ule
13. This term describes how the product is made.
a. Process technology
b. Product design
c. Process design
d. Technology
14. What is the application of knowledge) usually in the form of recently developed tools) processes) and procedures
to solve a problem?
a. $perations
b. Product design
c. Production
d. Technology
16. To determine labor productivity) the simplest way would be to measure labor hours per output. &anufacturing
firms use more labor costs than pure service firms.
a. /tatements 1 and " are correct.
b. /tatement 1 is correct and /tatement " is incorrect
c. /tatement 1 is incorrect and /tatement " is correct.
d. /tatements 1 and " are both incorrect.
18. What is defined as the ratio of the outputs achieved from an activity to the inputs consumed to make those
outputs?
a. Effectivity b. Productivity c. $perations d. Efficiency
"=. Which is the general term that refers to the sensory characteristics of products?
a. !esthetics b. *eatures c. Performance d. Perceived @uality
"1. Which cost pertains to the ones used for inspection and testing to ensure that the product or process is
acceptable?
a. 5nternal failure cost
b. Prevention cost
c. E2ternal failure cost
d. !ppraisal cost
"". What is the statistical methodology used for determining the cause,and,effect relationship between process
variables and the output variable?
a. *ailure mode and effect analysis
b. 'ause,and,effect diagrams
c. -esign of e2periments
d. .un charts
"(. Which of these show hypothesi9ed relationships between potential causes and the problems under study?
a. 'ause,and,effect diagrams
b. .un charts
c. *ailure mode and effect analysis
d. -esign of e2periments
"+. Which is used to separate value,added from non,value added steps in a process?
a. Process,control chart
b. Process map
c. $pportunity flow diagram
d. 'heck sheet
"0. This manufacturing structure groups together similar e@uipment or functions.
a. Pro?ect
b. Workstation
c. &anufacturing 'ell
d. !ssembly 1ine
"3. Which of the following is #$T a task of the operations manager?
a. 5mprove operations fle2ibility
b. 5ncrease costs
c. Enhance product @uality
d. 5ncrease productivity
"4. Which of these depicts the relationship between layout structures ?
a. reak,even analysis
b. Product,process matri2
c. !ssembly line design
d. !ssembly line balancing
"6. Which of these is #$T an activity that will help improve cycle time?
a. :sing parallel workstations
b. :sing more skilled workers
c. Working undertime
d. .edesigning
"8. Which method of reducing cycle times aims to meet the demand for a variety of products?
a. &i2ed &odel 1ine alancing
b. *le2ible 1ine 1ayouts
c. :,/haped 1ine 1ayouts
d. !ssembly 1ine alancing
(=. Which statement best describes process selection?
a. ! process in which work are arranged according to progressive steps.
b. The relationship between layout structures.
c. The strategic decision of selecting the kind of production processes to use to produce a product.
d. The interaction of process and output
(1. /ervice systems with a high degree of customer contact are easier to control. !dditionally) customers can affect
time of demand and nature of service.
a. /tatements 1 and " are both correct.
b. /tatement 1 is correct and /tatement " is incorrect.
c. /tatement 1 is incorrect and /tatement " is correct.
d. /tatements 1 and " are both incorrect.
(". What is the ideal line structure for a checkout counter of a high,volume appliance store?
a. &ultiple 'hannel) /ingle Phase
b. /ingle 'hannel) &ultiphase
c. &ultichannel) &ultiphase
d. &i2ed
((. Which factor of the @ueuing system refers to the priority rule for determining the order of service to customers
waiting in a line?
a. Queuing *actor
b. Queuing discipline
c. Queuing criteria
d. Queuing se@uence
(+. Which of the following are the important tools for coping with demand and supply uncertainty?
a. $utsourcing) .isk &anagement) &ass 'ommunication) /ocial &edia
b. $utsourcing) %lobali9ation) Postponement) &ass 'ustomi9ation
c. $utsourcing) %lobal /ourcing) Postponement) &ass 'ommunication
d. $utsourcing) %lobal sourcing) &ass 'ustomi9ation) Postponement
(0. What is the formula for labor productivity?
a. 'ost of goods sold<labor hours
b. :nits produced<labor hours
c. 1abor hours<cost of goods sold
d. 1abor hours<units produced
(3. This is a retailer practice which involves stocking up on a manufacturerBs supply in response to price cuts.
a. /upply integration
b. *orward buying
c. Certical networks
d. 5nventory bulk
(4. Which type of supply chain strategy is common in retailing where dealerships share inventory?
a. .isk 7edging
b. Efficient supply chains
c. .esponsive supply chains
d. !gile supply chain
(6. What plant location method is used by broadcasting companies when choosing the new site for their
communications towers?
a. 'entroid method
b. Transportation of linear programming
c. .egression model
d. *actor,rating system
(8. This is the art and science of obtaining) producing) and distributing material and product in the proper places and
@uantities?
a. /upplies management
b. 1ogistics
c. 5nventory control
d. *acilities management
+=. 5n this transportation method) only warehouses can sort the goods before shipping the products to consolidated
areas.
a. .ail
b. 7ub,and,spoke systems
c. Pipelines
d. 'ross,docking
+1. This plant location techni@ue utili9es cost estimation by using a network of plants and warehouses.
a. Transportation of linear programming
b. .egression model
c. 'entroid method
d. *actor,rating system
+". This plant location techni@ue uses points to estimate different types of criteria.
a. Plant 1ocation &ethod
b. *actor,rating /ystem
c. Transportation &ethod
d. 'entroid &ethod
+(. What transportation method is used in consolidation warehouses) where large shipments are broken down into
small shipments for local delivery in an area?
a. 7ub,and,spoke systems
b. 7ighway
c. 'ross,docking
d. Pipelines
++. Which of these is #$T a method used to transport materials?
a. 7ighway b. Water c. 5nternet d. .ail
+0. igger facilities will result in higher productivity and lower costs. The e@uipment used in the operations process
do not affect productivity.
a. /tatements 1 and " are correct.
b. /tatement 1 is correct and /tatement " is incorrect
c. /tatement 1 is incorrect and /tatement " is correct.
d. /tatements 1 and " are both incorrect.
+3. ! customer drops by your store and tells you that the laptop he bought recently got its keyboard broken. 7e
wishes to avail a parts replacement and check,up since it is still within the laptopBs warranty. What cost of @uality is
being described here?
a. !ppraisal cost
b. Prevention cost
c. 5nternal failure cost
d. E2ternal failure cost
+4. ! machine inspector has presented you with a report about the machines he inspected and recommendations to
increase the @uality of outputs. Dou gave the report to the operations supervisor to allocate funds to enact the
recommendations. What cost of @uality is being e2emplified here?
a. !ppraisal cost
b. Prevention cost
c. 5nternal failure cost
d. E2ternal failure cost
+6. This is the sum of all costs to prevent defects.
a. !ppraisal cost
b. Prevention cost
c. 5nternal failure cost
d. E2ternal failure cost
+8. Which of these refers to time,se@uenced charts showing plotted values of a statistic?
a. 'ontrol chart
b. Process,control chart
c. .un chart
d. Process map
0=. This is an integrated set of activities to achieve production using minimal inventories of raw materials) work,in
process and finished goods.
a. Eanban s@uares
b. Eai9en approach
c. 1ean production
d. /i2 /igma
01. What do you call the practice of building @uality into the process rather than waiting for inspection?
a. /i2 /igma
b. 1ean production
c. Eanban s@uares
d. Eai9en approach
0". This design principle philosophy arranges similar parts in a speciali9ed work cell.
a. *ocused *actory #etworks
b. %roup Technology
c. Quality at the /ource
d. :niform Plant 1oading
0(. What do you call the time when the lean production is fi2ed and the process itself cannot be modified?
a. ackflush
b. *ree9e window
c. 1evel schedule
d. 'ycle time
0+. 5n a lean layout) which type of maintenance ensures that design flows are not interrupted by down time or
malfunctioning e@uipment?
a. .epair and maintenance
b. Preventive maintenance
c. 'urative maintenance
d. :tility maintenance
00. This is the difference in the production time of two identical units on the line.
a. 'ycle time
b. 1evel schedule
c. 1ead time
d. Waiting time
03. This occurs when a mistake is consistently made.
a. Cariance errors
b. ias errors
c. /tandard errors
d. .andom errors
04. Which type of forecasting assumes that demand is related to some underlying factor<s in the environment?
a. /imulation models
b. 'ausal relationships
c. Time series analysis
d. Qualitative techni@ues
06. Which of these allows the forecaster to run through a range of assumptions about the condition of the forecast?
a. 'ausal relationships
b. Qualitative techni@ues
c. /imulation models
d. Time series analysis
08. These errors cannot be e2plained by the forecast model being used.
a. /tandard errors
b. 'ontinuous errors
c. .andom errors
d. ias errors
3=. 5f the rate is at 3=>) and the capacity used is at 6"=) what is the best operating level?
a. +8" b. +6" c. 8+" d. "+=
31. Dou are the cafeteria manager of the school. The school caferia prides itself in offering multiple viands that the
students can choose from. Which of the following line structure will give you optimum service results during the
heavy @ueuing of students during lunch hour?
a. /ingle 'hannel) /ingle Phase
b. /ingle 'hannel) &ultiphase
c. &ultichannel) &ultiphase
d. &ultiple 'hannel) /ingle Phase
3". Dou head a team of medical professional that will conduct the annual physical e2amination of a multinational
company. Which line structure will suit the situation?
a. &ultiple 'hannel) /ingle Phase
b. /ingle 'hannel) &ultiphase
c. &ultichannel) &ultiphase
d. &i2ed
3(. Dou are a '$&E1E' volunteer tasked to head a team that will assist a precinct for their new voters registration.
Which of the following will give your team optimum results during the registration?
a. &ultiple 'hannel) /ingle Phase
b. /ingle 'hannel) &ultiphase
c. &ultichannel) &ultiphase
d. /ingle 'hannel) /ingle Phase
3+. Which of the following best illustrates the line structure at one,person barbershop?
a. /ingle 'hannel) /ingle Phase
b. /ingle 'hannel) &ultiphase
c. &ultichannel) &ultiphase
d. &i2ed
30. Which of these is #$T included in the average aggregate inventory value?
a. .aw material
b. 'ost of goods sold
c. Work,in,process
d. -istribution inventory
33. Which @ualitative forecasting techni@ue is done through open meetings with all levels of management and
individuals?
a. 7istorical analogy
b. &arket research
c. -elphi method
d. Panel consensus
34. What component of demand is the starting point in developing a forecast?
a. 'yclical elements
b. Trend line
c. .andom variation
d. !utocorrelation
36. This process helps firms balance the demand and supply.
a. /ales Planning
b. Production 1ine Planning
c. /ales and $perations Planning
d. 1ogistics &anagement Planning
38. What section of the company is usually in charge of developing a sales plan?
a. &arketing
b. /ales
c. 1ogistics
d. !uditing
4=. What is the usual time period covered by the aggregate operations plan?
a. 1," months
b. (,3 months
c. (,16 months
d. 1","+ months
41. What do you call the number of units completed per unit of time?
a. Production rate
b. Workforce rate
c. 5nventory rate
d. -elivery rate
4". 5n this production planning strategy) production rate is matched to the order rate by hiring and laying off
employees according to order variability.
a. 'hase strategy
b. /table Workforce strategy
c. 1evel strategy
d. Pure strategy
4(. This production planning strategy provides workforce continuity and avoids many of the tangible costs of hiring
and firing.
a. /ubcontracting
b. /table Workforce
c. 1evel
d. &i2ed
4+. These are the fi2ed and variable costs incurred in producing a given product type in a given time period.
a. asic Production 'osts
b. 5nventory 7olding 'osts
c. ackordering 'osts
d. 'osts !ssociated with 'hanges in the Production .ate
40. These are costs of e2pediting goods and loss of customer goodwill.
a. asic Production 'osts
b. 5nventory 7olding 'osts
c. ackordering 'osts
d. 'osts !ssociated with 'hanges in the Production .ate
43. Which of these is #$T re@uired when using the level scheduling techni@ue of production?
a. /mooth relationship among purchasing) marketing) and production
b. 5nput of the system must be fi2ed for a period of time
c. Production should be repetitive
d. /ystem must contain e2cess capacity
44. ! level schedule keeps the production varied over a period of time. 5t also focuses on keeping low amounts of
inventories.
a. /tatements 1 and " are correct.
b. /tatement 1 is correct and /tatement " is incorrect
c. /tatement 1 is incorrect and /tatement " is correct.
d. /tatements 1 and " are both incorrect.
FFFF 46. This is the process of allocating the right type of capacity to the right type of customer at the proper time
and
place to ma2imi9e revenue.
a. Dield management
b. 5nventory management
c. $perations management
d. 1ogistics management
48. Which of these is #$T a category in manufacturing inventory?
a. .aw materials
b. *inished products
c. 7uman resource
d. Work,in,process
6=. *irms keep a supply of inventory to monitor defects in a product line. 5nventory supplies also serve to meet
variation in product demand.
a. /tatements 1 and " are correct.
b. /tatement 1 is correct and /tatement " is incorrect
c. /tatement 1 is incorrect and /tatement " is correct.
d. /tatements 1 and " are both incorrect.
61. Who among these argued that there are adversarial relations between supply chain partners?
a. &arshall *isher
b. 7au 1ee
c. /haron $ster
d. Aane 1inder
6". Which type of forecasting assumes that demand is related to some underlying factor<s in the environment?
a. /imulation models
b. 'ausal relationships
c. Time series analysis
d. Qualitative techni@ues
6(. These costs include insurance) depreciation and opportunity costs of capital.
a. /etup costs
b. 'arrying costs
c. /hortage costs
d. $rdering costs
6+. This system shows the operating policies for maintaining and controlling goods.
a. Warehousing system
b. 5nventory system
c. Production system
d. /cheduling system
60. The fi2ed,time period model has a larger average inventory than the fi2ed,order @uantity model. The fi2ed
order,@uantity model favors less e2pensive items than the fi2ed,time period model.
a. /tatements 1 and " are correct.
b. /tatement 1 is correct and /tatement " is incorrect
c. /tatement 1 is incorrect and /tatement " is correct.
d. /tatements 1 and " are both incorrect.
63. These costs refer to the managerial and clerical costs to prepare the purchase or production order.
a. 'arrying costs
b. /hortage costs
c. Production change costs
d. $rdering costs
64. What formula in E2cel should you use in a single period inventory model?
a. #$.& 2 C
b. #$.& 2 -5/T
c. #$.& 2 / 2 5#C
d. #$.& 2 / 2 -5/T
66. Which of these is #$T included in the inventory position?
a. Production costs
b. $n,hand inventory
c. $n,order inventory
d. ackordered @uantities
68. To solve the total annual cost) we use the formulaG -' ; H/ 2 -<QI ; H7 2 Q<"I) what does 7 represent in this
e@uation?
a. 1ead Time
b. /torage cost per unit of average inventory
c. 'ost of placing an order
d. 'ost per unit
8=. Which of these is #$T a component in the machine loading approach to scheduling?
a. &aintenance time
b. Wait time
c. &ove time
d. /et,up time
81. This scheduling strategy involves varying the workforce and using overtime.
a. /chedule for Peak -emand
b. 'hase -emand
c. .eservation
d. !d?ustable 'apacity
8". This scheduling strategy focuses on using only a part of the facilities or available employees at any given time.
a. 'ross,training
b. .eservation
c. /haring capacity
d. !d?ustable capacity
8(. 5n the 18th century) who among these found out that 6=> of wealth was controlled by only "=> of the
population?
a. Wilfredo Pareto
b. Cillefredo Pareto
c. Cillefredo Prado
d. Wilfredo Palatino
8+. Which of these is #$T considered as one of the criteria for evaluating different possible schedules?
a. &a2imi9e the amount of time that employees are idle
b. &inimi9e the amount of time the e@uipment is idle
c. &inimi9e the length of time it takes to produce goods or services
d. Providing the goods when the customers want them
80. This process determines how many workstations would be needed to achieve a desired cycle time.
a. !ssembly 1ine alancing
b. 'ontinuous *low Processes
c. atch Processes
d. Work,in,process
83. 5n this type of process) the same resources are used to produce several different products.
a. 1ine alancing
b. 'ontinuous *low Processes
c. atch Processes
d. Work,in,process
84. What is the formula for run,out time?
a. Production si9e < :sage rate
b. 'urrent inventory < :sage rate
c. 'urrent inventory < Production time
d. Production si9e < $rder time
86. This dispatch rule focuses on providing the product when the customer wants it.
a. /hortest Processing Time
b. Earliest -ue -ate
c. 1ongest Processing Time
d. *irst 'ome) *irst /erved
88. This machine,loading component refers to the period of time that materials are handled between work centers.
a. Wait Time
b. &ove Time
c. &aintenance time
d. /etup Time
1==. This machine,loading component is the time spent to get a machine ready to process that ?ob.
a. &aintenance time
b. &ove Time
c. Queue Time
d. /etup Time
I. MULTIPLE CHOICE (1 point each, a total of 20 points)
1. !
". !
(.
+. -
0. '
3. !
4. !
6. '
8. -
1=. '
11. -
1". !
1(. '
1+. '
10. '
13. '
14. -
16. '
18.
"=. !
"1. -
"". '
"(. !
"+. '
"0.
"3.
"4.
"6. '
"8. !
(=. '
(1. '
(". !
((.
(+. -
(0.
(3.
(4. !
(6. !
(8.
+=.
+1. !
+".
+(. '
++. '
+0. -
+3. -
+4. !
+6.
+8.
0=. '
01. !
0".
0(.
0+.
00. !
03.
04.
06. '
08. '
3=. !
31.
3". -
3(. '
3+. !
30.
33. -
34.
36. '
38. !
4=. '
41. !
4". !
4(.
4+. !
40. '
43.
44. '
46. !
48. '
6=. '
61. !
6".
6(.
6+.
60.
63. -
64. '
66. !
68.
8=. !
81.
8". -
8(.
8+. !
80. !
83. '
84.
86.
88.
1==. -