OPERATIONS MANAGEMENT FINAL EXAM WITH VERIFIED
SOLUTIONS #15
In a chase demand strategy... - correct answer Inventories are reduced
With aggregate planning, which of the following costs are an implication of allowing
stockouts?
A) Separation costs
B) Inventory-carrying costs
C) Lost sales and customer loyalty costs
D) High labor costs and premiums - correct answer C. Lost sales and customer loyalty
costs
____________ references scheduling for individual subassemblies by week and day.
A) Aggregate planning
B) Disaggregation
C) Execution
D) Demand forecasting - correct answer B. Disaggregation
Which of the following is true of a level production strategy?
A) Labor schedules are dynamic
B) Equipment schedules are stable
C) There are no capacity restrictions
D) The production rate keeps changing - correct answer B. Equipment schedules are
stable
In the context of sequencing, the shortest processing time (SPT) rule tends to:
A) Minimize work-in-process inventory
B) Maximize the number of jobs in the system
C) Maximize average flow time
D) Minimize resource utilization - correct answer A. Minimize work-in-process inventory
Staff scheduling problems are prevalent in service organizations because:
A) of high variability in customer demand
B) complexities arise when Web-based tools are used
C) managers remain unavailable for daily updates
D) determining the order of task processing is difficult - correct answer A. Of high
variability in customer demand
Scheduling references the start and completion times to particular jobs, people, or
equipment.
True or False? - correct answer True
Tardiness is the difference between the completion time and the due date of a job.
True or False? - correct answer False
, Which of the following is a core philosophy of Six Sigma?
A) Achieving cycle time reduction
B) Increasing non-value-added activities
C) Avoiding errors per million opportunities as a standard
D) Increasing variation in cash flow - correct answer A. Achieving cycle time reduction
Identify a true statement about the GAP model.
A) Defines quality based on idea of standardization.
B) Minimizing gap 4 will result in low customer satisfaction
C) Understand gaps to prevent losing customer loyalty.
D) Focuses on outputs that are critical to customers. - correct answer C. Understand
gaps to prevent losing customer loyalty
_____ is a tool that shows the number of observations of a particular value.
A) flowchart
B) histogram
C) cause-and-effect diagram
D) scatter diagram - correct answer B. Histogram
In terms of SERVQUAL, _____ is a firm's ability to provide what was promised.
A) responsiveness
B) reliability
C) competence
D) assurance - correct answer B. Reliability
Which of the following statements is true of Joseph M. Juran?
A) He proposed a major cultural change in the organization.
B) He never defined or described quality precisely.
C) He stated that workers speak in the language of money.
D) He said to get top management's attention money matters. - correct answer D. He
said to get top management's attention money matters.
Which of the following is a prevention cost?
A) Product-liability costs
B) Scrap and rework costs
C) Process-control costs
D) Downgrading costs - correct answer C. Process-control costs
Which of the following statements is true of the poka-yoke concept?
A) Many applications of poka-yoke are expensive to implement
B) It uses automatic devices to avoid simple human error.
C) Many applications of poka-yoke are complex.
D) It focuses on the mistakes pointed out by customers - correct answer B. It uses
automatic devices to avoid simple human error.
In General Electric's Six Sigma problem-solving approach, the define phase involves:
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