Comprehensive Supply Chain and Operations Management Key Concepts

The list of 5S's, although it looks like a housekeeping directive, supports lean production by

identifying non-value items and removing them, in the sort/segregate item.

The three components that can lead to competitive advantage through effective scheduling are

lower costs, faster delivery, and dependable delivery.

Slotting fees

are paid by manufacturers to retailers.

In a PERT network, non-critical activities that have little slack need to be monitored closely

because near-critical paths could become critical paths with small delays in these activities.

The philosophy of zero defects is

consistent with the commitment to continuous improvement.

Activity D on a CPM network has predecessors B and C, and has successor F. D has duration 6. B's earliest finish is 18, while C's is 20. F's late start is 26. Which of the following is definitely true?

D is critical and has zero slack.

Effective capacity is the

capacity a firm expects to achieve given the current operating constraints.

A location decision for an appliance manufacturer would tend to have a(n)

cost focus.

Traffic counts and demographic analysis of drawing areas are associated with

service location decisions.

The project organization works best when which of the following conditions are satisfied?

Work can be defined with a specific goal and deadline.

Which of the following statements is true about the MRP plan when using lot-for-lot ordering?

The quantity of gross requirements for a child item is equal to the quantity of planned order release(s) multiplied by the number of child items used in the parent assembly.

Because problems with fixed-position layouts are so difficult to solve well onsite, operations managers

often complete as much of the project as possible off-site.

The crossover point is that production quantity where

total costs for one process equal total costs for another process.

Which of the following statements regarding PERT analysis is true?

Only critical activities contribute to the project variance.

When a set of jobs must pass through two workstations whose sequence is fixed, ________ is the sequencing rule most commonly applied.

Johnson's rule

Computer-integrated manufacturing (CIM) includes manufacturing systems that have

computer-aided design, a flexible manufacturing system, inventory control, warehousing and shipping integrated.

Which one of the following scenarios represents the use of a kanban to reduce inventories?

A customer work centre signals to the supplier workstation that more parts are needed.

Balancing a work cell is done

as part of the process of building an efficient work cell.

A bill of material lists the

components, ingredients, and materials required to produce an item.

This focus drives out waste because waste both is expensive and has an adverse effect on the environment.

lean sustainability

Which of the following lot-sizing techniques results in the lowest holding costs?

lot-for-lot

One of the similarities between process focus and mass-customization is

the variety of outputs.

he most appropriate sequencing rule to use if the goal is to dynamically track the progress of jobs and establish relative priority on a common basis is

critical ratio.

In MRP record calculations, the appearance of a negative value for the gross requirements of an end item in a specific time bucket

is considered to be equal to zero.

Which of the following is an illustration of employee empowerment?

No one knows the job better than those who do it.

Advances in technology

have had dramatic impact on customer interaction with services and with products.

Harley Davidson

uses work cells to feed its assembly line.

Members of quality circles are

trained in group planning, problem solving, and statistical process control.

The transportation method, when applied to location analysis

minimizes total transportation costs.

Which file contains important information regarding an item's flow through the shop?

routing file

On the crossover chart where the costs of two or more location alternatives have been plotted, the quantity at which two cost curves cross is the quantity at which

total costs are equal for two alternative locations.

Which one of the following is a characteristic of a JIT partnership?

removal of incoming inspection

Material requirements plans specify

the quantity and timing of planned order releases.

A quality circle holds a brainstorming session and attempts to identify the factors responsible for flaws in a product. Which tool do you suggest they use to organize their findings?

Ishikawa diagram

Employees cannot produce goods that on average exceed the quality of what the process is capable of producing expresses a basic element in the writings of

W. Edwards Deming.

Which of the following best differentiates material requirements planning (MRP) from finite capacity scheduling (FCS)?

FCS recognizes the finite nature of capacity while MRP does not.

Community attitudes, zoning restrictions, and quality of labour force are likely to be considered in which of the following location decision methods?

factor-rating method

Which of the following is a location analysis technique typically employed by a service organization?

purchasing power analysis

The goal of inspection is to

detect a bad process immediately.

The process improvement technique that sorts the vital few from the trivial many is

Pareto analysis.

Which of the following is the best example of the proximity rule that, for service firms, proximity to market is the most important location factor?

Few people will travel out of state for a haircut.

A master production schedule contains information about

quantities and required delivery dates of final products.

Flexible equipment with rapid changeovers is most closely associated with which approach?

mass customization

Enterprise resource planning (ERP)

automates and integrates the majority of business processes.

The Theory of Constraints strives to reduce the effect of constraints by

offloading work from constrained workstations, increasing constrained workstation capability, and changing workstation order to reduce process cycle time.

In most banks, customers need to go to different service areas for opening accounts, applying for loans, and making deposits. This service strategy is an example of

separation.

LaQuinta Motor Inns has a competitive edge over its rivals because it

picks better locations than its rivals.

Factory X is trying to use level use scheduling. If their first target were to cut the current lot size in half, by what proportion must setup cost change?

Setup cost must be cut to one fourth its current value.

Which of the following statements regarding CPM is true?

All activities on the critical path have their LS equal to the maximum EF of all immediate predecessors.

When making a location decision at the country level, which of these would be considered?

location of markets

A characteristic of JIT partnerships with respect to quality is to

help suppliers meet quality requirement

The main difference between PERT and CPM is that

PERT assumes that activity durations are known.

A Three Sigma program has how many defects per million?

2700

Which of these factors would be considered when making a location decision at the site level?

cost and availability of utilities

A regional bookstore chain is about to build a distribution centre that is centrally located for its eight retail outlets. It will most likely employ which of the following tools of analysis?

centre-of-gravity model

Geographic Information Systems can assist the location decision by

combining geography with demographic analysis

A work centre is interested in limiting work-in-process by not allowing production to start again until the current batch is finished. The best solution most likely involves

ConWIP cards

Which of these layouts is most suitable for processing sugar from sugar beets or sugar cane?

product-oriented layout

An organization whose capacity is on that portion of the average unit cost curve that falls as output rises

has a facility that is below optimum operating level and should build a larger facility.

What is the time required to move orders through the production process, from receipt to delivery?

manufacturing cycle time

Workspace can inspire informal and productive encounters if it balances what three physical and social aspects?

proximity, privacy, and permission

Goods made to order are typical of ________ and ________ approaches while goods made to forecast are typical of ________ and ________ approaches.

process; mass customization; repetitive; product

According to the manufacturing-based definition of quality

quality is the degree of excellence at an acceptable price and the control of variability at an acceptable cost.

A project organization

is effective for companies with multiple large projects

Mechanical devices that use electronic impulses to activate motors and switches are called

robots

Which of the following is TRUE regarding the POQ lot-sizing method?

The POQ interval and all order quantities remain fixed throughout the planning horizon.

Regarding the quality of design, production, and distribution of products, an ethical requirement for management is to

determine whether any of the organization's stakeholders are violated by poor quality products.

In the Office Relationship Chart, which rating reflects the highest importance for two departments' closeness to each other?

A

A recent consumer survey conducted for a car dealership indicates that, when buying a car, customers are primarily concerned with the salesperson's ability to explain the car's features, the salesperson's friendliness, and the dealer's honesty. The dealership should be especially concerned with which determinants of service quality?

communication, courtesy, and credibility

Which of the following is NOT one of the strategies for improving service productivity?

mass customization

One disadvantage of process-oriented layouts arises from

the use of the general purpose machines and equipment

Using LPT priority would result in what sequence for Jobs A, B, C, and D if their process times are 4, 6, 5, 2 respectively?

BCAE

A manager tells the production employees, It's no longer good enough that your work fall anywhere within the specification limits. I need your work to be as close to the target value as possible. The manager's thinking is reflective of

Taguchi concepts

Which of the following statements best compares modular bills and phantom bills?

Modular bills represent subassemblies that actually exist and are inventoried, while phantom bills represent subassemblies that exist only temporarily and are not inventoried.

Which of the following characteristics best describes repetitive focus?

Its output is a standardized product produced from modules

Four types of processes are

process focus, repetitive focus, product focus and mass customization

Short-term schedules are prepared

from master schedules which are derived from aggregate plans

Costs of dissatisfaction, repair costs, and warranty costs are elements of cost in the

Taguchi Loss Function.

Which of the statements below best describes retail layout?

allocates shelf space and responds to customer behavior

The main issue in designing process layouts concerns the relative positioning of

departments

Which of the following layouts generally has the best machine utilization?

repetitive and product-oriented layout

Which of the following is the author of the phrase Inventory is evil?

Shigeo Shingo

Which of the following statements best describes the relationship between quality management and product strategy?

Managing quality helps build successful product strategies.

Cross-docking is

seldom placing an item in storage, it is sent straight from incoming to outbound.

Which of the following is specifically characterized by the elimination of waste through a focus on exactly what the customer wants?

Lean operations

Giant fashion retailer Inditex SA can now design, prototype, approve, and manufacture thousands of coats in a matter of

weeks

The major problem addressed by the warehouse layout strategy is

addressing trade-offs between space and material handling.

A firm makes numerous models of mowers, garden tractors, and gasoline powered utility vehicles. Some assemblies and parts are common to many end items. To relieve the MPS of performing order releases on these common parts, the firm might choose to use the ________ technique.

modular bills

Which of the following methods best considers intangible costs related to a location decision?

factor-rating analysis

Techniques that load work without regard for the capacity of the process are

infinite loading