BUS 515 Rev 12

In what area does General Motors earn its highest return on capital?
selling cars
selling logo merchandise
financing
selling racing
post-sales parts and
service
A key feature of scientific management is that workers are limited only by
______.
machiner
y
co-workers
their job description
their tools
their physical
ability
Decisions regarding which of the following are not part of the production
process structure?
management
policies
facilitie
s
robots
flow of goods and services through the facility
flexible manufacturing system (FMS) machines
Suppose that a plant has a daily productivity of 0.85 parts per employee?
What can we conclude?
the plant must be very labor-intensive
the plant is not earning profits
the plant must be highly automated
the plant should lay off workers
nothin
g
Highly labor intensive services are called _ .
pure
services
mixed
services
mixed
manufacturing
quasimanufacturing
quasiservices
What is a type of automation system that provides the
flexibility of intermittent operations with the efficiency of repetitive
operations?
CA
D
AG
V
AS/RS
FM
S
CA
M
Which of the following is not an argument in favor of having multiple
suppliers?
The Just-in-time philosophy can be better
utilized.
Supplier capacity is less important.
Volume flexibility is obtained.
Risks may be spread.
New suppliers may more easily be tested.
A constant concern within purchasing departments is the issue of ethics in
managing ___.
customer
s
web
sites
inventor
y
supplier
s
entry-level
employees
Increases in international trade during the 1980s created a need for the
development of __ standards of quality.
universa
l
countryspecific
lowe
r
metri
c
bilingua
l
For a cause-and-effect diagram, causes could be related to all of the
following except
Analysi
s
Material
s
Measurement
s
Machine
s
Workers
What are preset ranges of acceptable quality characteristics?
Control limits.
Product
specifications.
Six-sigma limits.
AQC limits.
R-chart limits.
What measures the central tendency of a set of data?
Coefficient of
variation
Variance
Standard deviation
Mea
n
Rang
e
Causes of variation that can be identified and eliminated are called what?
Rando
m
Assignabl
e
Identifiable
Stochasti
c
Commo
n
What are the two types of control charts for attributes?
p and
c
x-bar and p
x-bar and R
R and c
p and R
The Six Sigma approach is organized around a plan known as
_.
four step, PDAC
four step, DMAC
five step PDACR
five step DMAIC
five step, DMCRA
With JIT a company’s relationship with its suppliers includes
Competitive
bidding
Being in partnership with
them
Buying parts from the cheapest supplier
Short-term relationships
Having as many suppliers as possible
Quality in just-in-time is centered on building quality into the
Product
Maintenance of
equipment
Proces
s
Distribution system
Workforce
What is the term for an adjustment of a machine after making one product
type so that production can begin for another product type?
Level assembly
schedule
Group
technology
Setu
p
Cycle
time
Automatio
n
One of the greatest benefits of JIT would be
increasing waste and improving
responsiveness
longer lead times and increased
productivity
decreased machine utilization and improved
quality
competing based on
schedules
eliminating waste, improving responsiveness and competing based on
time
The role of production employees in JIT includes all of the following except
Be actively engaged in improving the production
process
Monitor
quality
Record data
Follow clearly defined and limiting work
rules
Act on the information they have
The OM supervisor informs you, the researcher, that the data has a large
standard deviation. What data pattern would you expect to observe once you generated a
time series trend?
horizonta
l
seasona
l
positive/negative trend
cycl
e
insufficient information to derive a valid
response
Which of the following is a causal forecasting method?
Naïv
e
Moving
average
Weighted moving
average
Trend adjusted exponential smoothing
Linear
regression
What does the linear regression line do?
Minimizes sum of errors
Minimizes product of squared errors
Minimizes sum of squared
errors
Minimizes product of errors
Minimizes sum of absolute value of errors
Qualitative forecasting methods
are made objectively by the forecaster
are made subjectively by the
forecaster
are made using existing data sources
are based on mathematical
models
are only used in parallel with quantitative models
Suppose that you are using the four-period simple moving average method
to forecast sales, and sales have been decreasing by 10% every period. How will your
forecasts perform?
Forecasts will be lower than actual.
Forecasts will be higher than
actual.
Forecasts will equal actual.
Forecasts will be increasing.
Forecasts will be decreasing by 2.5% every period.

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