Productions and Operations MGT Exam 2

False

A program is an interrelated set of activities that has a definite starting and ending point

False

In a matrix organization structure for a project, all team members working on the project exclusively report to the project manager

True

Project managers should be able to organize a set of disparate activities

True

Scope creep is one of the primary causes of project failure

scope, time frame, and allocated resources

The project’s objective statement should contain:

False

The work breakdown structure is a listing of all resources that are under breakdown and unavailable, thus affecting the on-time completion of the project

True

The network diagram is a planning method that is designed to depict the relationships between activities

True

A relationship that determines the sequence for undertaking activities is a precedence relationship

Is the smallest unit of work effort consuming both time and resources that a project manager can schedule and control

In a network diagram, an activity:

The use of dowsing rods

Activity times for a project are estimated by all except which of the following methods?

False

A critical path is any sequence of activities between a project’s start and finish

True

For activities having no slack, the earliest start time is always the same as the latest start time

True

To obtain the latest start and latest finish time in a network diagram, we must work backward from the finish node of the network diagram

True

A Gantt chart is a project schedule that superimposes project activities on a time line

Activity B takes 6 days to complete

Assume that activity B has the following times:

Early start time = 9 days

Early finish time = 15 days

Late start time = 15 days

Late finish time = 21 days

Latest start time minus earliest start time

Activity slack is defined as:

True

The normal time is the time necessary to complete an activity under normal conditions

False

a project manager should continue crashing a project as long as there are activities available that can be crashed

25 weeks

Using Table 8.4, what is the earliest completion time for this project?

False

Project characteristics that are best suited for the Scrum approach are projects that are large and complex with many work teams

False

The most likely time for a project activity is the longest estimated time to perform an activity

True

The optimistic time for a project activity is the shortest time in which an activity can be completed

A prediction of the impact of each risk on the project

A good risk management plan will contain which of these elements?

cost/benefit

Which of these is not one of the four categories of project risk?

Operations risk of a project

Information accuracy relative to the completeness of the work breakdown structure and communication of timely information affect the:

False

The phase of project management that takes the most resources is the planning phase

False

Resource allocation involves reducing the peaks and valleys in resources needs for a project by shifting te schedules of conflicting activities

definition and organization

Which of these steps comes first in the project life cycle?

resource acquisition

A project manager hires a few new coders to help speed up the new software project and deliver the package on time to an important client. The manager has engaged in:

resource leveling

The savvy project manager knew there would be a high demand for finish carpenters in late October, so she started a crew early on one section of the house so they would be available to help elsewhere later on. This project manager is engaging in:

True

The repeated observations of demand for a product or service in their order of occurrence form a pattern known as a time series

True

A water ski manufacturer believes they can double their sales by producing snow skis during the other half of the year. This approach to demand management is an example of complementary products.

cyclical

Which one of the following basic patterns of demand is difficult to predict because it is affected by national or international events or because of a lack of demand history reflecting the stages of demand from product development to decline?

trend demand pattern

The Universal Computer company saw a systematic increase in demand for their newly introduced tablet computer. This is an example of a:

seasonal

Professor Willis noted that the popularity of his office hours mysteriously rose in the middle and the end of each semester, falling off to virtually no visitors throughout the rest of the year. The demand pattern at work is:

cyclical pattern

There are historically three 32-month periods of generally rising prices in the stock market for every one 9-month period of falling prices. This observation leads you to conclude that the stock market exhibits a:

random pattern

Polly Prognosticator was the greatest quantitative forecaster in recorded history. A skillful user of all techniques in your chapter on forecasting, she knew better than to try and develop a forecast for data that exhibited a:

random variation

One aspect of demand that makes every forecast inaccurate is:

The term reservation is issued when the customer occupies the facility to receive service

What is the difference between a reservation and an appointment?

False

Aggregation is the act of clustering several similar products or services so that forecasts and plans can be made at the individual product level

False

Aggregating products or services together generally decreases the forecast accuracy

Time series express the relationship between the factor to be forecast and related factors such as promotional campaigns, economic conditions, and competitor actions

Which one of the following statements about forecasting is false?

Use historical demand on independent variables to predict demand

Casual forecasting methods:

Judgement methods are particularly appropriate for situations in which historical data are lacking

Which one of the following statements about forecasting is true?

False

Random forecast errors result from predictable factors that cause the forecast to deviate from the actual demand

True

Forecast error is found by subtracting the forecast from the actual demand for a given period

True

The mean squared error (MSE) is a measurement of the dispersion of forecast errors

cumulative sum of forecast errors

Which one of the following is most useful for measuring the bias in a forecast?

False

Contextual knowledge is knowledge gained through rigorous quantitative analysis of time series data

True

Technological forecasting is an application of executive opinion to keep abreast of the latest advances in technology

True

Market research is a systematic approach to determine external consumer interest in a service or product through data-gathering surveys

False

Judgment methods of forecasting should never be used with quantitative forecasting methods

True

The Delphi method is a process of gaining consensus from a group of experts while maintaining their anonymity

making adjustments to quantitative forecasts due to unusual circumstances

The judgment methods of forecasting are to be used for purposes of:

judgement and opinion are the only bases for making informed projections

The Delphi method of forecasting is useful when:

False

The casual method of forecasting translates the opinions of managers and expert opinions into quantitative estimates

the independent variable is the money spent on advertising

The level of product sales appears to be highly correlated with the money spent on advertising to promote the product, The marketing team wants to create a linear regression model to assist them in forecasting the product demand. In this scenario:

False

Time-series forecasting takes into consideration historical data and the influence of other internal and external factors likes sales promotions and economic indicators to compute a future forecast

False

The naive forecast may be adapted to take into account a demand trend

False

An exponential smoothing model with an alpha equal to 0.5 is the same as naive forecasting model

seasonal factors are multiplied by an estimate of average demand to arrive at a seasonal forecast

With the multiplicative seasonal method of forecasting:

False

Big data refers to data sets that are so large and complex where traditional data processing applications are adequately able to deal with them

False

A major subfield of artificial intelligence is the Internet of Things (IoT), which is the field of study that gives computers the ability to learn without explicitly being programmed

True

Supervised learning involves training the machine learning model with labeled data sets, which allows the model to learn and grow accurate over time

True

Linear regression is an example of prescriptive machine learning algorithm based on supervised learning

True

Combination forecasts are produced by averaging independent forecasts based on different methods, different sources or different data

True

Focus forecasting selects the best forecast from a group of forecasts generated by individual techniques

False

Once a decision maker has checked on forecast for accuracy and found that it performance excellently, they should finalize and communicate it to important stakeholders

supervised learning

The machine learning model with labeled data sets, which allows the model to learn and grow accurate over time is known as:

Unsupervised learning

The machine learning model that looks for patterns or trends using mainly unlabeled data that people are not explicitly looking for on their own is known as:

False

Inventory includes any stock of finished goods used to satisfy customer demand, but does not include any raw materials used to support the products of good or services

True

When looking at inventory management, the term “lot size” refers to the quantity of an inventory item management either buys from a supplier or manufacturers using internal processes

False

One of the primary reasons for holding inventories is that it is safer and more convenient way to invest money, rather than holding liquid cash

True

One component of the holding cost of inventory is interest

False

One component of the ordering cost of inventory is the storage costs

True

Setup cost is independent of order size

ordering costs

Which of the following generates pressure to increase inventories?

ordering costs

Which of the following does not generate pressure to decrease inventories?

inventory shrinkage costs

Which of the following does not generate pressure to increase inventories?

False

An experienced operations manager can tell at a glance whether an item should be classified as safety stock, anticipation inventory, or cycle stock

True

Independent-demand items are those items for which demand is influenced by market conditions and is not related to inventory decisions for any other items held in stock

raw materials

Inventories needed for the production of services and goods (inputs to a firm’s transformation processes) are called:

work-in-process

Items, such as components or assemblies, needed to manufacture a final product are called:

finished goods

Items sold to a firm’s customers are called:

True

Eliminating the need for changeovers through increased repeatability of the work being done is one of the levers to reduce cycle inventory

anticipation inventory

The manager at Crystal Mountain Ski Resort lowers the price of lift tickets to $2 during July and August, a traditionally slow period for skiing. This secondary lever impacts:

customization

Which of the following does not increase repeatability?

True

A stock-keeping unit (SKU) is an individual item or product that has an identifying code and is held in inventory somewhere along the supply chain

True

Class B items typically represent about 30% of SKUs, but only 15% of the dollar usage

True

When using ABC analysis, class A SKUs should be reviewed frequently

20 percent of all SKUs

What is generally true about class A SKUs in ABC analysis? They represent about:

80 percent of the dollar usage

What is generally true about class A SKUs in ABC analysis? They represent about:

Pareto analysis

ABC analysis is closely related to:

False

EOQ should be used if you use a make-to-order strategy and the customer specifies that the entire order be delivered in one shipment

True

EOQ should be used if you follow a make-to-stock strategy and the item has relatively stable demand

Quantity discounts can be taken advantage of for large lot sizes

Which one of the following is not an assumption of the EOQ model?

If an order quantity is larger than the EOQ, the annual holding cost for cycle inventory exceeds the annual ordering cost

Which one of the following statements regarding the economic order quantity (EOQ) is true?

An increase in demand will increase the EOQ

Which one the of the following statements concerning the economic order quantity (EOQ) is true?

True

A continuous review system is sometimes called a reorder point system

True

The two-bin inventory system is a type of visual system