Which one of the following performance measures is not true of a world class Örm?

Because the Öxed-position layout problem is so difÖcult to solve on-site, operations managers a. virtually never employ this layout strategy b. utilize this approach only for construction projects such as bridges and ofÖce towers c. increase the size of the site d. often complete as much of the project as possible off-site e. utilize this layout only for defense contractors Q2. The major problem addressed by the process-oriented layout strategy is a. the movement of material to the limited storage areas around the site b. requiring frequent contact close to one another c. the provision of low-cost storage with low-cost material handling d. minimizing difÖculties caused by material ×ow varying with each product e. balancing product ×ow from one work station to the next Q3. The main issue in designing process layouts concerns the relative positioning of a. safety devices b. departments c. raw materials d. entrances, loading docks, etc. e. manufacturing cells Q4. The typical goal used when developing a process-oriented layout strategy is to a. minimize the distance between adjacent departments b. minimize the material handling costs c. maximize the number of different tasks which can be performed by an individual machine d. minimize the level of operator skill necessary e. maximize job specialization Q5. The central problem in product-oriented layout planning is a. minimizing material handling within workstations b. minimizing labor movement between workstations c. equalizing the space allocated to the different workstations d. maximizing equipment utilization e. minimizing the imbalance in the work loads among workstations Q6. One factor impacting the Öxed-position layout strategy is a. minimizing difÖculties caused by material ×ow varying with each product b. requiring frequent contact close to one another c. the provision of low-cost storage with low-cost material handling d. the movement of material to the limited storage areas around the site e. balancing product ×ow from one work station to the next Q7. The biggest advantage of a product layout is its ×exibility to handle a varied product mix. a. true b. false Q8. Daily capacity of a product layout is determined by a. operating time divided by cycle time b. cycle time divided by operating time c. operating time divided by total task time d. total task time divided by cycle time e. cycle time divided by total task time Q9. Cycle time is computed as a. desired output divided by the daily operating time b. daily operating time divided by the product of desired output and the sum of job times c. the product of desired output and the sum of job times divided by daily operating time d. daily operating time divided by the scheduled output e. 1.00 minus station time Q10. The objective of layout strategy is to develop an economic layout that will meet the Örm’s competitive requirements. a. true b. false Q11. Four hundred and eighty minutes of production time are available per day. Scheduled production is 120 units per day. What is the cycle time? a. 4 minutes b. 5 minutes c. 6 minutes d. 7 minutes e. 8 minutes Q12. Product-oriented layouts tend to have high levels of work-in-process inventories. a. true b. false Q13. Fredrick W. Taylor is credited with introducing psychology into the workplace. a. true b. false Q14. An enlarged job has more responsibility than the same job enriched. a. true b. false Q15. Psychological factors have little relevance in the design of assembly line jobs since they involve physical products and production technology. a. true b. false Q16. Because various employment laws now require it, “equal pay for equal work” is no longer an ethical concern in the work environment. a. true b. false Q17. The difference between job enrichment and job enlargement is that a. enlarged jobs involve vertical expansion, while enriched jobs involve horizontal expansion b. enriched jobs enable an employee to do a number of boring jobs instead of just one c. job enlargement is more psychologically satisfying than job enrichment d. job enrichment is suitable for all employees, whereas job enlargement is not e. enriched jobs involve vertical expansion, while enlarged jobs involve horizontal expansion Q18. Job rotation is an example of job enlargement. a. true b. false Q19. Methods analysis employs which of the following charts in its analysis of the movement of workers and materials? a. micro-motion chart b. ×ow diagram c. activity chart d. man-machine chart e. movement chart Q20. A job characterized by ________ allows a worker to use his/her dexterity, physical strength, and skills to do his/her work. a. feedback b. skill variety c. job identity d. job signiÖcance e. autonomy Q21. “Labor standards” are deÖned as the a. preset activities required to perform a job b. amount of space required by a speciÖc crew to perform the job c. standard set of procedures to perform the job d. standard labor agreements e. amount of time required to perform a job or part of a job Q22. In a large aerospace company, it has been discovered that some insulators have been damaged. A methods specialist is sent out to follow the insulators through the production and storage processes and to try to Önd out where in the process they are damaged. The specialist should use a. left- and right-hand charts b. program ×owcharts c. job analysis charts d. ×ow diagrams e. activity charts Q23. The Hawthorne studies, which showed that there is a dynamic social system in the workplace, took place in the 1960s. a. true b. false Q24. The two extremes of employment stability policy are “follow demand exactly” and “keep demand constant.” a. true b. false Q25. Improvements in security, especially regarding the millions of shipping containers that enter the U.S. each year, are being held back by the lack of technological advances. a. true b. false Q26. Outsourcing is a form of specialization that allows the outsourcing Örm to focus on its critical success factors. a. true b. false Q27. Which one of the following performance measures is not true of a world class Örm? a. low number of suppliers per purchasing agent b. low purchasing costs as percent of purchases c. large lead time d. high percentage of on-time deliveries e. low number of shortages per year Q28. When using the low-cost strategy for supply chain management, the Örm should invest aggressively to reduce production lead time. a. true b. false Q29. Blanket orders are a long-term purchase commitment to a supplier for items that are to be delivered against short-term releases to ship. a. true b. false Q30. Which distribution system is the fastest growing mode of shipping? a. railroads b. trucks c. airfreight d. waterways e. pipelines Q31. If the purchasing Örm and the supplying Örm have compatible corporate cultures, substantial efÖciencies related to the use of independent specialists, each with their objectives, will be lost. a. true b. false Q32. Vertical integration, whether forward or backward, requires the Örm to become more specialized. a. true b. false Q33. Vendor Managed Inventory is a form of outsourcing. a. true b. false Q34. Waterways are an attractive distribution system when speed is more important than shipping cost. a. true b. false Q35. With the growth of JIT, which of the following distribution systems has been the biggest loser? a. trucking b. railroads c. airfreight d. waterways e. pipelines Q36. A furniture maker has delivered a dining set directly to the end consumer rather than to the furniture store. The furniture maker is practicing a. postponement b. drop shipping c. channel assembly d. passing the buck e. ×oat reduction Q37. Which of the following is an opportunity for effective management in the supply chain? a. random “pull” data b. multistage control of replenishment c. the bullwhip effect d. customer managed inventory e. channel assembly Q38. The purpose of safety stock is to a. replace failed units with good ones b. eliminate the possibility of a stockout c. eliminate the likelihood of a stockout due to erroneous inventory tally d. control the likelihood of a stockout due to the variability of demand during lead time e. protect the Örm from a sudden decrease in demand Q39. A certain type of computer costs $1,000, and the annual holding cost is 25%. Annual demand is 10,000 units, and the order cost is $150 per order. What is the approximate economic order quantity? a. 16 b. 70 c. 110 d. 183 e. 600 Q40. One function of inventory is to take advantage of quantity discounts. a. true b. false Q41. According to the global company proÖle, Amazon.com’s advantage in inventory management comes from its almost fanatical use of economic order quantity and safety stock calculations. a. true b. false Q42. ABC analysis is based on the presumption that carefully controlling all items is necessary to produce important inventory savings. a. true b. false Q43. Retail inventory that is unaccounted for between receipt and time of sale is known as shrinkage. a. true b. false Q44. A product whose EOQ is 400 experiences a 50% increase in demand. The new EOQ is a. unchanged b. increased by less than 50% c. increased by 50% d. increased by more than 50% e. cannot be determined Q45. In ABC analysis, “A” Items are the most tightly controlled. a. true b. false Q46. Among the advantages of cycle counting is that it a. makes the annual physical inventory more acceptable to management b. does not require the detailed records necessary when annual physical inventory is used c. does not require highly trained people d. allows more rapid identiÖcation of errors and consequent remedial action than is possible with annual physical inventory e. does not need to be performed for less expensive items Q47. Work-in-process inventory is devoted to maintenance, repair, and operations. a. true b. false Q48. A speciÖc product has demand during lead time of 100 units, with a standard deviation of 25 units. What safety stock (approximately) provides a 95% service level? a. 41 b. 55 c. 133 d. 140 e. 165 Q49. At the economic order quantity, holding costs are equal to purchasing costs. a. true b. false Q50. ABC analysis classiÖes inventoried items into three groups, usually based on annual units or quantities used. a. true b. false

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