25. What is the purpose of a buffer on a flowchart? o To develop a need for a non-inventory bottleneck o To create a process in the beginning stages o To creale a dvider in the varous stages of product developrent o To create a worki-progress within a process Match each definition with the measure it defines.

Answer options may be used more than once or not at all. The proportion of time a resource is actually used process velocity A measure of wasted time in the system productivity A measure of how well a company uses its resources utilization

Which process performance metrics formula measures how well a company uses its resources? o Time a resource is used/time a resource is available o Output/input o Actual output /standard output o Throughput time / value-added time

In which facility layout would one expect resources to be specialized and facilities specifically designed for one use? o Product o Hybrid o Process o Fixed

Which two statements are true regarding a product layout that produces just a few items in high volume? Choose 2 answers o *Space requirements are higher because of a great demand for inventory storage. o *Space requirements are lower because of the specialized nature of the product line. o *Processing rates are faster because all resources needed for the item are arranged in sequence.

o *Processing rates are slower because all available resources depend on the market demand.

Which two tools appropriately identify the proximity measure of two departments in an industry scenario? Choose 2 answers o *Relationship chart (RELI o *From-to matrix o *Rectilinear distance o *Block plan

What is the first step a company should take when developing a job design in a methods analysis? o Talk with employees for data gathering o ldentify the operation to be analyzed o Compare a new job to an existing job o Consider the added value of the job

What is the frst step a company should take when developing a job design in a methods analysis? o *Talk with employees for data gathering o *ldentify the operation to be analyzed o *Compare a new co to an eristing joo o *Consider the added value of the job

Which two results are attributed to accepted procedures in a documentation of methods analysis in a restaurant? Choose 2 answers o Enhancement of staff morale and minimization of employee conflicts o Creation of a standard operating procedure for wait staff training o Encouragement of staff to observe each other and correct any errors o Alowance for performance evaluations of existing employees

Which work measurement process would be applied when determining the completion of a unit? o Cost o Performance

o Standard time o Planning

34. Which design work system allows employees to add value to their work position? o Behavioral feasibility o Technical feasibility o Economic feasibility o Financial feasibility

What is one objective of material requirements planning (MRP)? o To provide timely and accurate designs o To minimize labor hours used in production o To maximize labor used in production o To reduce cost

What are two considerations in favor of people as opposed to machines in job design? Choose 2 answers o People are better at working with customers. o People develop capacity for judgement and compassion. o People prefer working repetitive jobs for stability reasons. o People are trained to operate all technical equipment.

Which term is used when operations are scheduled without taking into account capacity? o Finite loading o Backward planning o Fonward scheduling o Infinite loading

What is just-in-time (JIT) based on? o Value-added manufacturing o Equipment maintenance plans o Strategic mission planning o High inventory levels

Which two statements are true about the term "kaizen" and its relative correlation to continuous improvement? Choose 2 answers o Kaizen means getting rid of inventory. o Kaizen is applicable to both justin-time (JIT) and lean systems. o Kaizen is primarily used in financial services. o Kaizen works exclusively in Japan. o Kaizen can be applied to reducing costs to improve quality.

40. Which two atributes are part of a just-in-time (JIT) system that has been implemented at an organization? Choose 2 answers o Batch sizes of one o Lean manufacturing o High inventory production o Slow-throughout manufacturing

Classily each description as being part of a "push" or a "pull" system. Answer options may be used more than once or not at all. o Due-date driven system o Control work-in-process (WIP) o Schedule production o Authorize production

How is the number of kanbans needed at a workstation determined when controlling production of a particular product? Choose 2 answers o lt is based on the size of the container and lead time. o It depends on the disciplinary behavior of the team. o It depends on the demand rate and the safety stock level. o lt depends on how well the push system works. o lt will increase as production slows down.

How does accounting function in a just-in-time (JIT) organization?

o JIT accounting reles on actity-based accounting to allocate overhead for spectic costs and activities. o JIT accounting is usualy outscored for convenience and Securities Exchange Commission (SEC) requirements. o JIT accounting is known to have a disproportionate share of the overhead. o JIT accounting systems focus on determining product costs for inventory evaluation.

What is the first step required by an organization according to the theories of constraint management? o Exploit constraints o Support constraints o Elevate constraints o ldentify constraints

What function does information systems (IS) play in a just-in-time (JIT) organization? o IS seves as a help desk for technical issues that is stalted 24 hours a day. o lS provides an ongoing scanning of the processing floor for monitoring of waste. o lS keeps up-to-date, relevant data for all areas within the organization. o IS orders supplies for the processing area by printing kanban cards.

Which style of management involves consensus by committees or teams and decisions that are made at all levels of the organization? o Directive management o Management by objectives o Bottom-round management o o Authoritative management

47. Which tier level supplier directly supplies materials or services to a tier one supplier in a supply chain? o Tier one suppliers o Tier two suppliers o Tier three suppliers o Tier four suppliers o Ter five suppliers

Which description of a supply chain is accurate? o A supply chain is a sequence of processes that leads to production and distribution to the customer. o A supply chain functions independently, causing internal production to be delayed by external distributors. o A supply chain that goes ofshore is hard to control when it comes to structure and planning. o A supply chain will show a marked increase in cycle times because of the Internet.

A company wants to reduce overhead spending to stay cost-competitive.

What is the most logical way to achieve this goal? o Outsource noncore job functions o Insource noncore job functions o Insource raw materials o Outsource core job functions

50. A company leverages original equipment manufacturers (OEMs) and their relative distribution channels to take products to market. Why is this type of integration considered an example of horizontal integration? o The company now owns a portion of every step in the supply chain. o The company's leverage reduces the cost of goods sold. o The company dictates the direction and growth of each of the OEMs. o The company's products are components in multiple similar end products.

Which responsibly allows a company to assess the effectiveness of their supply chain through their continuous improvementrequirements? o Track performance o Revise budgets o Replace underperforming employees o Implement larger compensation incentives

Which proity will supply chains for distributors and retailers typically focus on?

o Inventory and production processes o Time and costs of sourcing o Transportation management o Manufacturing processes

Which two supply chain performance metrics can a university use to determine purchases? Choose 2 answers o Curriculum metric o Contracting metric o Customer metric o Compliance metric

Why must companies measure performance of the supply chain? o To determine how to increase efficiency and reduce cost o To measure company financial performance o To create a basis for new product development o To respond to market demand for new products

55. What is absolutely required to ensure a successful enterprise resource planning (ERP) implementation? o An ERP system identical in function to the systems it replaces o Supply vendor agreement and commitment o Organizational leadership and support o A workforce with limited ERP experience

What is a measure of inventory management policy effectiveness? o Inventory costs o Cycle counting o Days' supply o Inventory turnover

How does an organization determine its inventory turnover? o By influencing employees to provide better customer service o By having employees become more aware of customers

o By monitoring the current level of customer demand satisfied by the supply on hand By regulating the objectives of management controls

What inventory management concept is generally utilized in service industries? o Anticipation inventory o Relevant costs o Fluctuation inventory o Setup costs

Which inventory system keeps track of inventory 24/7? o Continuous review system o two-bin system o Periodic review system o Single-process system

60 . What are two main purposes of a marketing plan? Choose 2 answers o To determine revenue goals to achieve profitability level o To maintain the compettive focus o To aggregate the production plan o To determine optimum distribution channels

Which two alternatives to layoffs can a company engage to avoid the negative effects of termination? Choose 2 answers o increasing inventory levels o Opening a new business to provide temporary employment o Ceasing production until demand returns to previous levels o implementing voluntary undertime

A company offers promotional discounts when an anticipated seasonal demand declines to maintain annual production levels.

Which type of aggregate planning strategy should the company use?

o Proactive capacity-based o Proactive demand-based o Reactive capacity-based o Reactive demand-based

What are two reasons a company would choose capacity-based aggregate planning? Choose 2 answers o Because of inventory management o Because of overtime/undertime o Because of hiring and firing o Because of backorders

What are two elements of an engineering plan? Choose 2 answers: o Process design o Product design o Production plan o Finance plan

Which constraint results when the demand is less than production capacity? o Market constraint o Bottleneck Constraint o Policy constraint o Internal resource constraint

What is the primary role of the aggregate plan? o To develop the individual product mix o To identity target markets and competitive focus oTo support the marketing plan for the next 6 to 18 months o To develop the strategic plan

A company is operating at 120% of normal capacity using overtime. Which option is available to increase cost effectiveness?

o Decreasing inventory levels o Utilizing subcontractors o lmplementing undertime o Increasing overtime

How does a level aggregate plan differ from a chase aggregate plan? o The level aggregate plan manages inventory buildup and overtime to meet demand. o The level agregate plan maintains a constant workforce and production level during each period. o The level aggregate plan minimizes holding costs for finished goods. o The level aggregate plan produces exactly what is needed to satisfy demand during each period.

What is absolutely required to ensure a successful enterprise resource planning (ERP) implementation? o An ERP system identical in function to the systems it replaces o A workforce with limited ERP experience o A substantial financial investment by shareholders o Organizational leadership and commitment

Why is it important to develop an accurate time-phased schedule? o A time-phased schedule can stand apart from backward-schedule production. o A time-phased schedule can be used to estimate future production demand. o A time-phased schedule identifies when parts are needed in the production schedule. o A time-phased schedule ensures all materials are available at the beginning of production.

71. What is one objective of material requirements planning (MRP)? o To provide timely and accurate planning o To minimize labor hours used in production o To maximize production throughput planning o To reduce lead times

What are two outcomes that stem from the analysis of capacity requirements planning (CRP)? Choose 2 answers o Process time may be reduced. o Employee overtime may be utilized. o Production efficiency will be increased. o Extra capacity may need to be subcontracted.

What is one purpose of capacity requirements planning (CRP) for a company? o To assess the quality and continual improvement processes for a company's work centers o To enable a company to evaluate the feasibility of the material requirements planning (MRP) system o To display lead time for multiple production items and work centers o To analyze the company's enterprise resource planning (ERP) efficiency and performance with suppliers

Which project lite cycle phase includes the development of time estimates for the completion of activities? o Execution o Planning o Conception o Feasibility analysis

Which project life cycle phase includes carrying out the activities that make up the project? o Feasibility analysis o Conception o Execution o Planning

Which common quality definition in manufacturing is based on customer preferences? o Machinery replacement o Process completion o Automation o Conformance

Which quality control tool identifies quality problems based on the degree of importance? o Control chart o Histogram o Pareto analysis o Checklist

Which group of key words or phrases describes the critical role human resources plays in the total quality management (TQM) o Baseline for managing quality process; investment in preventative costs; budgeting o Reward and motivate; commitment to workforce; team cohesiveness o Enhance competition; ensure quality product; reduce operation costs o Monitor; purchase; comply with company budget

Which three descriptions apply to the role information systems play in the success of total quality management (TQM) within a Choose 3 answers o They are the single tool managers rely upon to provide supply chain training to employees. o They assist with purchase price negotiation. o They ensure precise and accurate information throughout the organization. o They identify what the customer wants. o They are flexible. o They can implement technological changes quickly.

Which example is an assignable cause of variation? o Specially trained quality engineers for a machine o A machine that is on a weekly maintenance plan

o Raw materials that are of high quality o An employee who needs more training

Which appropriate organizational action can provide insight and guidance to reduce variation and further convey management be responsible for quality? o Develop Taguchi's loss function of nonconformance o Introduce Feigenbaum's quality control charts o Apply Juran's 10 standards of product development o Implement Deming's 14 points to quality improvement

15. Which location is ideal for a fast-food restaurant? o Near a landill o Within an apartment complex o In the middle of a subdivision o Near other fast-food restaurants

Which two criteria should a service company consider when choosing a location? Choose 2 answers o Production costs o Closeness to skilled labor force o Sources of supply o Proximity to customers

A university builds a new business school and adds extra offices and classrooms to accommodate an expected increase in fa enrollment. Which type of planning is this an example of?

o Undercapacity planning o Capacity alternative planning o Overcapacity planning

Which measure of capacity indicates the maximum output rate is being achieved by a facility under ideal conditions? o Capacity focus o Design capacity o Capacity utilization o Effective capacity

Which capacity planning decision uses qualitative analyses such as executive opinion and the Delphi method? o Strategic capacity o Capacity cushions o Capacity alternatives o Forecasting capacity

How is capacity utilization rate computed? o Capacity used divided best operating level o Capacity used + best operating level o Capacity output x best operating level o Capacity output - best operating level o

What is the first step a person wanting to open a new restaurant should take? o Develop capacity alternatives o Determine capacity cushions o Evaluate capacity alternatives o Identify capacity requirements o

A cereal company plans to ship goods from a warehouse to a grocery store. Which method should be used to determine the feasibility of this decision? o Break-even analysis o Load-distance model o Factor rating o Center-of-gravity approach

What are two accurate descriptions of intermittent operations? Choose 2 answers o One or a few products are produced in small batches. o One or a few standardized products are produced in high volume. o Employs skilled and semiskilled workers. o Involves mass production where nonskilled labor is heavily used

Which type of operational process would be used at an oll refinery? o Project process o Line process o Continuous process o Batch process