MgtOp 340 Online Sample Midterm Exam

1. Quality Is Free, meaning that the costs of poor quality have been understated, is the work of a. W. Edwards Deming b. Joseph M. Juran c. Philip B. Crosby d. Crosby, Stills, and Nash e. Armand Feigenbaum What refers to training and empowering frontline workers to solve a problem immediately? a. just-in-time b. poka-yoke c. benchmarking d. kaizen e. service recovery The Father of Scientific Management is a. Henry Ford b. Frederick W. Taylor c. W. Edwards Deming d. Frank Gilbreth e. just a figure of speech, not a reference to a person The Dulac Box plant produces 500 cypress packing boxes in two 10-hour shifts. What is the productivity of the plant? a. 25 boxes/hr b. 50 boxes/hr c. 5000 boxes/hr d. none of the above e. not enough data to determine productivity An activity on a PERT network has these time estimates: optimistic = 2, most likely = 5, and pessimistic = 10. Its expected time is a. 5 b. 5.33 c. 5.67 d. 17 e. none of these Experience Differentiation a. isolates the consumer from the delivery of a service b. is an extension of product differentiation in the service sector c. uses only the consumer's senses of vision and sound d. keeps consumers from becoming active participants in the service e. is the same as product differentiation, but applied in the service sector

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Given the position of a product in the growth stage of its life cycle, which of the following OM Strategy/Issues should the makers of the product be least concerned with at the current time? a. forecasting b. cost cutting c. increasing capacity d. product and process reliability e. enhancing distribution Which of the following is not a type of qualitative forecasting? a. executive opinions b. sales force composites c. consumer surveys d. the Delphi method e. moving average Which of the following statements comparing the weighted moving average technique and exponential smoothing is true? a. Exponential smoothing is more easily used in combination with the Delphi method. b. More emphasis can be placed on recent values using the weighted moving average. c. Exponential smoothing is considerably more difficult to implement on a computer. d. Exponential smoothing typically requires less record keeping of past data. e. Exponential smoothing allows one to develop forecasts for multiple periods, whereas weighted moving averages does not. For an x-bar chart where the standard deviation is known, the Upper Control Limit a. is 3 W below the mean of sample means for a 3W control chart b. is 3 W above the mean of sample means for a 3W control chart c. is 3 W d. is 3 W

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n below the mean of sample means for a 3W control chart n above the mean of sample means for a 3W control chart

e. cannot be calculated unless the average range is known 11. Jars of pickles are sampled and weighed. Sample measures are plotted on control charts. The ideal weight should be precisely 11 oz. Which type of chart(s) would you recommend? a. p-charts b. c-charts c. x - and R-charts d. x -, but not R-charts e. both p- and c-charts

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East Texas Seasonings is preparing to build one processing center to serve its four sources of seasonings. The four source locations are at coordinates shown below. Also, the volume from each source is provided. What is the center of gravity? X-coordinate 30 20 10 50 Y-coordinate 30 10 70 50 Volume 150 350 100 200

Athens, Texas Beaumont, Texas Carthage, Texas Denton, Texas a. b. c. d. e. 13. X = 28.125; Y = 31.25 X = 22000; Y = 24000 X = 27.5; Y = 40 center of gravity = 28 none of the above

The reason fast food restaurants often are found in close proximity to each other is a. they enjoy competition b. location clustering near high traffic flows c. low cost d. availability of skilled labor e. all of the above Which of the following is most likely to affect the location strategy of a manufacturing firm? a. appearance/image of the area b. utility costs c. purchasing power of drawing area d. competition in the area

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e. parking availability
15. 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 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

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TOC was popularized by a. Goldratt and Cox b. Ford c. Taguchi d. Deming e. Motorola and GE Goods made to order are typical of __________ and __________ approaches while goods made to forecast are typical of __________ and __________ approaches. a. process, mass customization; repetitive, product b. product, mass customization; repetitive, process c. product, process; repetitive, mass customization d. repetitive, product; mass customization, process e. repetitive, process; mass customization, product Service blueprinting a. provides the basis to negotiate prices with suppliers b. mimics the way people communicate c. determines the best time for each step in the process d. focuses on the provider's interaction with the customer e. shows how Ishikawa techniques can be added to improve quality A simple CPM network has three activities, A, B, and C. A is an immediate predecessor of B and of C. B is an immediate predecessor of C. The activity durations are A=4, B=3, C=8. a. The critical path is A-B-C, duration 15. b. The critical path is A-C, duration 12. c. The critical path is A-B-C, duration 13.5 d. The critical path cannot be determined without knowing PERT expected activity times. e. The network has no critical path. Activity R on a CPM network has predecessors M and N, and has successor S. R has duration 5. N's late finish is 18, while M's is 20. S's late start is 14. Which of the following is definitely true? a. R is critical and has zero slack. b. R has no slack but is not critical. c. The set of given times cannot all be possible. d. N is a critical activity. e. S is a critical activity. Given an actual demand of 61, a previous forecast of 58, and an alpha of .3, what would the forecast for the next period be using simple exponential smoothing? a. 45.5 b. 57.1 c. 58.9 d. 61.0 e. 65.5

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The primary purpose of the mean absolute deviation (MAD) in forecasting is to a. estimate the trend line b. eliminate forecast errors c. measure forecast accuracy d. seasonally adjust the forecast e. all of the above 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. .081 c. 8.1 d. .0273 e. .0863 If a. b. c. d. e.

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x = 23 ounces, = 0.4 ounces, and n = 16, the 3 control limits will be

21.8 to 24.2 ounces 23 ounces 22.70 to 23.30 ounces 22.25 to 23.75 ounces none of the above