Q&A Hero

Q: A work system has five stations that have process times of 5, 9, 4, 9, and 8. What is the process time of the system? A) 4 B) 9 C) 18 D) 35 E) none of the above

Q: A work system has five stations that have process times of 5, 9, 4, 9, and 8. What is the process cycle time of the system? A) 4 B) 9 C) 18 D) 35 E) none of the above

Q: A tortilla chip workstation produces 1,000 chips in 20 seconds. Its process time is A) .02 seconds per chip B) 50 chips per second C) 20 seconds D) 6000 chips per minute E) none of the above

Q: Which of the following is false regarding capacity expansion? A) "Average" capacity sometimes leads demand, sometimes lags it. B) If "lagging" capacity is chosen, excess demand can be met with overtime or subcontracting. C) Total cost comparisons are a rather direct method of comparing capacity alternatives. D) Capacity may only be added in large chunks. E) All of the above are true.

Q: Consider a production line with five stations. Station 1 can produce a unit in 9 minutes. Station 2 can produce a unit in 10 minutes. Station three has two identical machines, each of which can process a unit in 12 minutes (each unit only needs to be processed on one of the two machines). Station 4 can produce a unit in 5 minutes. Station 5 can produce a unit in 8 minutes. Which station is the bottleneck station? A) station 1 B) station 2 C) station 3 D) station 4 E) station 5

Q: Of the three approaches to capacity expansion, the approach that "straddles" demand A) uses incremental expansion B) uses one-step expansion C) at some times leads demand, and at other times lags D) works best when demand is not growing but is stable E) Choices A and C are both correct.

Q: An organization whose capacity is on that portion of the average unit cost curve that falls as output rises A) has a facility that is below optimum operating level and should build a larger facility B) has a facility that is above optimum operating level and should build a smaller facility C) is suffering from diseconomies of scale D) has utilization higher than efficiency E) has efficiency higher than utilization

Q: Adding a complementary product to what is currently being produced is a demand management strategy used when A) demand exceeds capacity B) capacity exceeds demand for a product which has stable demand C) the existing product has seasonal or cyclical demand D) price increases have failed to bring about demand management E) efficiency exceeds 100 percent

Q: If demand exceeds capacity at a new facility, an organization can use which of the following to move demand to an existing facility? A) aggressive marketing B) lower prices at all facilities C) build a facility of the correct size D) add a complementary product E) reduce lead times

Q: Which of the following represents a common way to manage capacity in the service sector? A) appointments B) reservations C) changes in staffing levels D) first-come, first served service rule E) "early bird" specials in restaurants

Q: The staff training center at a large regional hospital provides training sessions in CPR to all employees. Assume that the capacity of this training system was designed to be 1200 employees per year. Since the training center was first put in use, the program has become more complex, so that 1050 now represents the most employees that can be trained per year. In the past year, 950 employees were trained. The efficiency of this system is approximately __________ and its utilization is approximately __________. A) 79.2 percent; 90.5 percent B) 90.5 percent; 79.2 percent C) 87.5 percent; 950 employees D) 950 employees; 1050 employees E) 110.5 percent; 114.3 percent

Q: Christopher's Cranks uses a machine that can produce 100 cranks per hour. The firm operates 12 hours per day, five days per week. Due to regularly scheduled preventive maintenance, the firm expects the machine to be running during approximately 95% of the available time. Based on experience with other products, the firm expects to achieve an efficiency level for the cranks of 85%. What is the expected weekly output of cranks for this company? A) 5100 B) 5700 C) 4845 D) 969 E) 6783

Q: The AcademicComputingCenter has five trainers available in its computer labs to provide training sessions to students. Assume that the design capacity of the system is 1900 students per semester and that effective capacity equals 90% of design capacity. If the number of students who actually got their orientation session is 1500, what is the efficiency of the system? A) 1350 students B) 1710 students C) 78.9% D) 87.7% E) 90%

Q: Utilization will always be lower than efficiency because A) Effective capacity is less than design capacity. B) Effective capacity is greater than design capacity. C) Effective capacity equals design capacity. D) False, Utilization and efficiency are equal in value. E) False, Utilization is normally greater than efficiency.

Q: A high value for which of the following signals that an operations manager is excelling? A) efficiency B) utilization C) effective capacity D) net present value E) none of the above

Q: Which of the following represents an aggressive approach to demand management in the service sector when demand and capacity are not particularly well matched? A) inexpensive rates for weekend phone calls B) appointments C) reservations D) first-come, first-served E) none of the above

Q: Effective capacity is the A) maximum output of a system in a given period B) capacity a firm expects to achieve given the current operating constraints C) average output that can be achieved under ideal conditions D) minimum usable capacity of a particular facility E) sum of all of the organization's inputs

Q: What is sometimes referred to as rated capacity? A) efficiency B) utilization C) effective capacity D) expected output E) design capacity

Q: Substantial research has proved that the only successful method of dealing with bottlenecks is to increase the bottleneck's capacity.

Q: The theory of constraints is a body of knowledge that deals with anything that limits an organization's ability to achieve its goals.

Q: To find the process cycle time with simultaneous processes, compute the time over all paths and choose the shortest path through the system.

Q: The net present value of $10,000 to be received in exactly three years is considerably greater than $10,000.

Q: One limitation of the net present value approach to investments is that investments with identical net present values may have very different cash flows.

Q: Possible decision alternatives found in capacity EMV problems are future demands or market favorability.

Q: Break-even analysis is a powerful analytical tool, but is useful only when the organization produces a single product.

Q: Break-even analysis identifies the volume at which fixed costs and revenue are equal.

Q: Fixed costs are those costs that continue even if no units are produced.

Q: The process time of a system is always at least a long as the process cycle time.

Q: Changes in capacity may lead, lag, or straddle the demand.

Q: A useful tactic for increasing capacity is to redesign a product in order to get more throughput.

Q: Price changes are useful for matching the level of demand to the capacity of a facility.

Q: Expected output is sometimes referred to as rated capacity.

Q: Capacity decisions are based on technological concerns, not demand forecasts.

Q: Design capacity is the theoretical maximum output of a system in a given period under ideal conditions.

Q: Utilization is the number of units a facility can hold, receive, store, or produce in a period of time.

Q: The Central Limit TheoremA) is the theoretical foundation of the c-chartB) states that the average of assignable variations is zeroC) allows managers to use the normal distribution as the basis for building some control chartsD) states that the average range can be used as a proxy for the standard deviationE) controls the steepness of an operating characteristic curve

Q: Consumers risk is the probability ofA) accepting a good lotB) rejecting a good lotC) rejecting a bad lotD) accepting a bad lotE) none of the above

Q: Statistical process control chartsA) display the measurements on every item being producedB) display upper and lower limits for process variables or attributes, and signal when a process is no longer in controlC) indicate to the process operator the average outgoing quality of each lotD) indicate to the operator the true quality of material leaving the processE) none of the above

Q: An x-bar control chart was examined and no data points fell outside of the limits. Can this process be considered in control?A) No, there could be a pattern to the points.B) No, the R-chart must be checked.C) No, the number of samples must be known.D) YesE) Both A and B

Q: Ten samples of a process measuring the number of returns per 100 receipts were taken for a local retail store. The number of returns were 10, 9, 11, 7, 3, 12, 8, 4, 6, 11. Find the standard deviation of the sampling distribution. (Hint- Use p-bar formula)A) There is not enough information.B) .081C) 8.1D) .0273E) .0863

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Q: A process that is assumed to be in control with limits of 89 +/- 2 had sample averages of the followingue004 87.1, 87, 87.2, 89, 90, 89.5, 88.5, and 88. Is the process in control?A) YesB) No, one or more averages exceeded the limits.C) Not enough information to tell.D) No, there is a distinguishable trend.E) No, two or more consecutive points are very near the lower (or upper) limit.

Q: Red Top Cab Company receives multiple complaints per day about driver behavior. Over 9 days the owner recorded the number of calls to be 3, 0, 8, 9, 6, 7, 4, 9, 8. What is the upper control limit for the c-chart?A) 13.35B) 8.45C) 24.00D) 0.00E) 9.03

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Q: The number of late insurance claim payouts per 100 should be measured with aA) x-bar chartB) R-chartC) p-chartD) c-chartE) either a p or c chart

Q: The number of defects after a hotel room cleaning (sheets not straight, smears on mirror, missed debris on carpet, etc) should be measured using a(n)A) x-bar chartB) R-chartC) p-chartD) c-chartE) either x-bar or R chart

Q: The purpose of an x-bar chart is to determine whether there has been aA) change in the dispersion of the process outputB) change in the percent defective in a sampleC) change in the central tendency of the process outputD) change in the number of defects in a sampleE) change in the AOQ

Q: Control charts for variables are based on data that come fromA) acceptance samplingB) individual itemsC) averages of small samplesD) averages of large samplesE) the entire lot

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Q: Assignable variationA) is a sign that a process is under controlB) is to be identified and investigatedC) is the same as random variationD) is variation that cannot be traced to a specific causeE) leads to a steep OC curve

Q: Natural variationsA) are variations that are to be identified and investigatedB) are variations that can be traced to a specific causeC) are the same as assignable variationsD) lead to occasional false findings that processes are out of controlE) play no role in statistical process control

Q: Natural variationsA) affect almost every production processB) are the many sources of variation that occur when a process is under controlC) when grouped, form a pattern, or distributionD) are tolerated, within limits, when a process is under controlE) All of the above are true.

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Q: If a sample of items is taken and the mean of the sample is outside the control limits the process isA) out of control and the cause should be establishedB) in control, but not capable of producing within the established control limitsC) within the established control limits with only natural causes of variationD) monitored closely to see if the next sample mean will also fall outside the control limitsE) producing high quality products

Q: The steeper an OC curve, the better it discriminates between good and bad lots.

Q: The acceptable quality level (AQL) is the average level of quality we are willing to accept.

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Q: In acceptance sampling, a manager can reach the wrong conclusion if the sample is not representative of the population it was drawn from.

Q: The Cpk index measures the difference between desired and actual dimensions of goods or services produced.

Q: The higher the process capability ratio, the greater the likelihood that process will be within design specifications.

Q: A process that is in statistical control will always yield products that meet their design specifications.

Q: The x-bar chart, like the c-chart, is based on the exponential distribution.

Q: A c-chart is appropriate to plot the number of flaws in a bolt of fabric.

Q: A p-chart is appropriate to plot the number of typographic errors per page of text.

Q: To measure the voltage of batteries, one would sample by attributes.

Q: X-bar charts are used when we are sampling attributes.

Q: Mean charts and range charts complement one another, one detecting shifts in process average, the other detecting shifts in process dispersion.

Q: If the process average is in control, then the process range must also be in control.

Q: In statistical process control, the range often substitutes for the standard deviation.

Q: The Central Limit Theorem states that when the sample size increases, the distribution of the sample means will approach the normal distribution.

Q: The x-bar chart indicates that a gain or loss of uniformity has occurred in dispersion of a production process.

Q: Averages of small samples, not individual measurements, are generally used in statistical process control.

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Q: A process is said to be in statistical control when assignable causes are the only sources of variation.

Q: A normal distribution is generally described by its two parameters: the mean and the range.

Q: The purpose of process control is to detect when natural causes of variation are present.

Q: Some degree of variability is present in almost all processes.

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Q: At your first job out of college you have been assigned to the production of bottled 20 oz. soda.The process has upper and lower limits of 20.5 and 19.5 oz, respectively, with a mean of 19.8 oz and standard deviation of .3 oz. Your manager has requested the process produce no more than 3.4 defects per 1 million bottles produced. Calculate Cpk and then determine if the process is capable or if you should be looking for assignable variation.