QuestionQuestion 1A process flowchart uses symbols to represent which of the foll

Question 1

A process flowchart uses symbols to represent which of the following?

		Factory location
		Warehouse space available
		Work force schedules
		Flows of material or customers
		Data analysis

Question 2

An activity-system map is which of the following?

		A network guide to route airlines
		A listing of activities that make up a project
		A diagram that shows how a company’s strategy is delivered to customers
		A facility layout schematic noting what is done where
		A timeline displaying major planned events

Question 3

When deciding to add capacity to a factory which of the following need not be considered?

		Maintaining system balance
		The frequency of capacity additions
		Use of external capacity
		Immediate product demand
		Availability of raw materials

Question 4

Which of the following is a basic type of process structure?

		Process flow diagram
		Product matrix
		Process matrix
		Workcenter
		Manual assembly

Question 5

If the actual output of a piece of equipment during an hour is 500 units and it’s best operating level is at a rate of 400 units per hour, which of the following is the capacity utilization rate?

		0.75
		1.00
		1.25
		1.33
		100

Question 6

In a workcenter, machine A has a ten minute set-up time per batch and a two minute per unit run time. Machine B performs the identical function but has a set-up time of thirty minutes and a one minute run time per unit. The workcenter makes products in batches ranging from one unit to one hundred units. Assuming capacity is not a limitation on either machine, on which batches should machine B be used?

		All batches should be run on machine B
		Batches of more than 20 units should be run on machine B
		Batches of fewer than 80 units should be run on machine B
		Batches with up to 50 units should be run on machine B
		No batches should be run on machine B

Question 7

If all you knew about a production system was that total daily output was 400 units and the total labor necessary to produce the 400 units was 350 hours, what kind of productivity measure could you use to compute productivity?

		Partial measure
		Multifactor measure
		Total measure
		Global measure
		All of the above

Question 8

Capacity planning involving acquisition or disposal of fixed assets such as buildings, equipment or facilities is considered as which one of the following planning horizons?

		Intermediate-range
		Long-range
		Short-range
		Current
		Upcoming

Question 9

Which following production process term best describes the situation when activities in a stage of production must stop because there is no work?

		Blocking
		Buffering
		Starving
		Buffer
		Setup time

Question 10

Which of the following is not considered a major process flow structure?

		Work Center
		Project
		Assembly line
		Fabrication
		Continuous Flow

Question 11

You are hired as a consultant to decide if your client should purchase a new, highly specialized, piece of equipment. The product to be produced by this equipment is forecast to have a total worldwide demand of 15,000 units over the entire product life. The initial investment to acquire and install the equipment is $256,000. The variable cost to produce each unit will be $15 and the selling price for the finished product will be $30. Which of the following best describes the situation the firm is facing?

		The company will recover its initial investment
		The company’s total margin will be less than its investment
		It’s a good investment
		The break-even is lower than the 15,000 units that are expected to sell
		All of the above

Question 12

An advantage of a make-to-stock process is which of the following?

		Rapid delivery of a standard product
		All units of output are unique
		It responds directly to customer orders
		It allows the firm to avoid inventory costs
		It combines the best features of other processes

Question 13

Which of the following is not a benefit of a manufacturing cell layout?

		Better human relations
		Improved operator expertise
		Less in-process inventory and material handling
		Faster production setup
		Reduced cost

Question 14

A process flowchart uses which of the following symbols to represent storage areas or queues in a flow diagram?

		Rectangle
		Arrow
		Inverted triangle
		Diamond
		A dashed line

Question 15

Which of the following basic types of production layout formats is one which has similar equipment or functions are grouped together?

		Production line layout
		Assembly line layout
		Workcenter layout
		Group technology layout
		Manufacturing cell layout

Question 16

A difference between project and continuous flow categories of process flow structures is which of the following?

		The size of the product
		Discrete parts moving from workstation to workstation
		Degree of equipment specialization
		Being a “Virtual Factory”
		Profit per unit

Question 17

To reduce process throughput time you might try which of the following actions?

		Outsource activities
		Change the sequence of activities
		Improve teamwork
		Reduce management interference
		Introduce incentive pay

Question 18

Which of the following is a partial measure of productivity?

		Output/Materials
		Output/(Labor + Capital + Energy)
		Output/All resources used
		Output/Inputs
		All of the above

Question 19

Which of the following terms describes the time a unit spends actually being worked on together with the time spent waiting in a queue?

		Cycle time
		Flow time
		Run time
		Setup time
		Efficiency

Question 20

Which of the following is not a basic type of process structure?

		Product-process matrix
		Workcenter
		Manufacturing cell
		Assembly line
		Continuous process

Question 21

According to Little’s law, which of the following can be used to estimate inventory?

		Process time/Cycle time
		Throughput rate times flow time
		Process velocity/flow time
		Set up time/Throughput rate
		Value added time/Process velocity

Question 22

Assume a fixed cost for a process of $15,000. The variable cost to produce each unit of product is $10 and the selling price for the finished product is $25. Which of the following is the number of units that has to be produced and sold to break-even?

		500 units
		667 units
		790 units
		900 units
		1,000 units

Question 23

Which of the following is a measure of operations and supply management efficiency used by Wall Street?

		Dividend payout ratio
		Current ratio
		Receivable turnover
		Earnings per share growth
		Financial leverage

Question 24

Which of the following basic types of process structures is one which equipment or work processes are arranged according to the progressive steps by which the product is made?

		Project
		Workcenter
		Manufacturing cell
		Assembly line
		Continuous process

Question 25

Which of the following best describes the term cycle time?

		Average time between completions of successive units
		Ratio of the time a resource is activated over its use
		Can be no more that 60 minutes
		The same as utilization
		The labor content of the item being measured

Question 26

A process flowchart uses which of the following symbols to represent a decision point in a flow diagram?

		Rectangle
		Arrow
		Inverted triangle
		Diamond
		A dashed line

Question 27

Using the assembly-line balancing procedure, which of the following is the theoretical minimum number of workstations if the task times for the six tasks that make up the job are 4, 6, 7, 2, 6, and 5 minutes, and the cycle time is 10 minutes?

		3
		5
		6
		8
		None of the above

Question 28

The ability to rapidly and inexpensively switch production from one product to another enables what are sometimes referred to as:

		Economies of scale
		Economies of size
		Economies of shape
		Economies of scope
		Economies of shipping

Question 29

According to Little’s Law, which of the following ratios is used to find flow time?

		Cycle time/Process time
		Throughput time/Process velocity
		Process velocity/Throughput time
		Inventory/Throughput rate
		Value added time/Process velocity

Question 30

Which of the following basic types of process structures is one which similar equipment or functions are grouped together?

		Project
		Workcenter
		Manufacturing cell
		Assembly line
		Continuous process

Question 31

To reduce process flow time you might try which of the following actions?

		Perform activities in parallel
		Change the sequence of activities
		Reduce interruptions
		Acquire additional

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