Quiz-CH-1 OPERATION AND

PRODUCTIVITY
LO 1.1 Productivity increases when:

a) inputs increase while outputs remain the same.

b) inputs decrease while outputs remain the same.

c) outputs decrease while inputs remain the same.

d) inputs and outputs increase proportionately.

e) inputs increase at the same rate as outputs.

LO 1.2 Services often:

a) are tangible.

b) are standardized.

c) are knowledge based.

d) are low in customer interaction.

e) have consistent product definition.

LO 1.3 Productivity:

a) can use many factors as the numerator.

b) is the same thing as production.

c) increases at about 0.5% per year.

d) is dependent upon labor, management, and capital.

e) is the same thing as effectiveness.

LO 1.4 Single-factor productivity:

a) remains constant.

b) is never constant.

c) usually uses labor as a factor.

d) seldom uses labor as a factor.

e) uses management as a factor.

LO 1.5 Multifactor productivity:

a) remains constant.

b) is never constant.

c) usually uses substitutes as common variables for the factors of production.

d) seldom uses labor as a factor.

e) always uses management as a factor.

LO 1.6 Productivity increases each year in the U.S. are a result of three
factors:

a) labor, capital, management

b) engineering, labor, capital

c) engineering, capital, quality control

d) engineering, labor, data processing

e) engineering, capital, data processing

Quiz- Ch-2 OPERATIONS STRATEGY IN A

GLOBAL ENVIRONMENT
LO 2.1 A mission statement is beneficial to an organization because it:

a) is a statement of the organization’s purpose.

b) provides a basis for the organization’s culture.

c) identifies important constituencies.

d) details specific income goals.

e) ensures profitability.

LO 2.2 The three strategic approaches to competitive advantage are ____,

____, and _____.

Ans: differentiation, cost leadership, response;

LO 2.3 Core competencies are those strengths in a firm that include:

a) specialized skills.

b) unique production methods.

c) proprietary information/knowledge.

d) things a company does better than others.

e) all of the above.

LO 2.4 Evaluating outsourcing providers by comparing their weighted average

scores involves:

a) factor-rating analysis.

b) cost-volume analysis.

c) transportation model analysis.

d) linear regression analysis.

e) crossover analysis.
LO 2.5 A company that is organized across international boundaries, with
decentralized authority and substantial autonomy at each business via
subsidiaries, franchises, or joint ventures, has:

a) a global strategy.

b) a transnational strategy.

c) an international strategy.

d) a multidomestic strategy.

Quiz-CH-3: PROJECT MANAGEMENT

LO 3.1 Which of the following statements regarding Gantt charts is true?

a) Gantt charts give a timeline and precedence relationships for each activity of
a project.

b) Gantt charts use the four standard spines: Methods, Materials, Manpower,
and Machinery.

c) Gantt charts are visual devices that show the duration of activities in a
project.

d) Gantt charts are expensive.

e) All of the above are true.

LO 3.2 Which of the following is true about AOA and AON networks?

a) In AOA, arrows represent activities.

b) In AON, nodes represent activities.

c) Activities consume time and resources.

d) Nodes are also called events in AOA.

e) All of the above.

LO 3.3 Slack time equals:

a) ES +t .

b) LS − ES.

c) z e r o .

d) EF − ES.

LO 3.4 The critical path of a network is the:

a) shortest-time path through the network.

b) path with the fewest activities.

c) path with the most activities.

d) longest-time path through the network.

LO 3.5 PERT analysis computes the variance of the total project completion
time as:

a) the sum of the variances of all activities in the project.

b) the sum of the variances of all activities on the critical path.

c) the sum of the variances of all activities not on the critical path.

d) the variance of the final activity of the project.

LO 3.6 The crash cost per period:

a) is the difference in costs divided by the difference in times (crash and

normal).

b) is considered to be linear in the range between normal and crash.

c) needs to be determined so that the smallest cost values on the critical path
can be considered for time reduction first.

d) all of the above.

Quiz-CH-4 FORECASTING
LO 4.1 Forecasting time horizons include:

a) long range.

b) medium range.

c) short range.

d) all of the above.

LO 4.2 Qualitative methods of forecasting include:

a) sales force composite.

b) jury of executive opinion.

c) consumer market survey.

d) exponential smoothing.

e) all except (d).

LO 4.3 The difference between a moving-average model and an

exponential smoothing model is that .

Ans: exponential smoothing is a weighted moving-average model in which all

prior values are weighted with a set of exponentially declining weights

LO 4.4 Three popular measures of forecast accuracy are:

a) total error, average error, and mean error.

b) average error, median error, and maximum error.

c) median error, minimum error, and maximum absolute error.

d) mean absolute deviation, mean squared error, and mean absolute percent
error.
LO 4.5 Average demand for iPods in the Rome, Italy, Apple store is 800 units
per month. The May monthly index is 1.25. What is the seasonally adjusted
sales forecast for May?

a) 640 units

b) 798.75 units

c) 800 units

d) 1,000 units

e) cannot be calculated with the information given

LO 4.6 The main difference between simple and multiple regression is .

Ans: simple regression has only one independent variable

LO 4.7 The tracking signal is the:

a) standard error of the estimate.

b) cumulative error.

c) mean absolute deviation (MAD).

d) ratio of the cumulative error to MAD.

e) mean absolute percent error (MAPE).

QUIZ-CH-5 SUSTAINABILITY IN THE

SUPPLY CHAIN
LO 5.1 A product’s life cycle is divided into four stages, including:

a) introduction.

b) growth.
c) maturity.

d) all of the above.

LO 5.2 Product development systems include:

a) bills of material.

b) routing charts.

c) functional specifications.

d) product-by-values analysis.

e) configuration management.

LO 5.3 A house of quality is:

a) a matrix relating customer “wants” to the firm’s “hows.”

b) a schematic showing how a product is put together.

c) a list of the operations necessary to produce a component.

d) an instruction to make a given quantity of a particular item.

e) a set of detailed instructions about how to perform a task.

LO 5.4 Time-based competition focuses on:

a) moving new products to market more quickly.

b) reducing the life cycle of a product.

c) linking QFD to PLM.

d) design database availability.

e) value engineering.

LO 5.5 Products are defined by:

a) value analysis.
b) value engineering.

c) routing sheets.

d) assembly charts.

e) engineering drawings.

LO 5.6 A route sheet:

a) lists the operations necessary to produce a component.

b) is an instruction to make a given quantity of a particular item.

c) is a schematic showing how a product is assembled.

d) is a document showing the flow of product components.

e) all of the above.

LO 5.7 The three process regions in a process–chain–network diagram are:

a) manufacture, supplier, customer

b) direct and surrogate, customer, provider

c) independent, dependent, customer interaction

d) direct interaction, surrogate interaction, independent processing

LO 5.8 Decision trees use:

a) probabilities.

b) payoffs.

c) logic.

d) options.

e) all of the above.

QUIZ-CH-6 MANAGING QUALITY
LO 6.1 In this chapter, quality is defined as:

a) the degree of excellence at an acceptable price and the control of variability

at an acceptable cost.

b) how well a product fits patterns of consumer preferences.

c) the totality of features and characteristics of a product or service that bears

on its ability to satisfy stated or implied needs.

d) being impossible to define, but you know what it is.

LO 6.2 ISO 9000 is an international standard that addresses _____.

Ans: Quality Management System

LO 6.3 If 1 million passengers pass through the Jacksonville Airport with

checked baggage each year, a successful Six Sigma program for baggage
handling would result in how many passengers with misplaced luggage?

a) 3.4

b) 6.0

c) 34

d) 2,700

e) 6 times the monthly standard deviation of passengers

LO 6.4 The process of identifying other organizations that are best at some
facet of your operations and then modeling your organization after them is
known as:

a) continuous improvement.

b) employee empowerment.
c) benchmarking.

d) copycatting.

e) patent infringement.

LO 6.5 The Taguchi method includes all except which of the following major
concepts?

a) Employee involvement

b) Remove the effects of adverse conditions

c) Quality loss function

d) Target specifications

LO 6.6 The seven tools of total quality management are ______, ______,
______, ______, ______, ______, and ______.

Ans: check sheets, scatter diagrams, cause-and-effect diagrams, Pareto charts,

flowcharts, histograms, SPC charts.