1.

Given the following historical data, what is the simple three-period moving average forecast for
period 6?

PERIOD VALUE
1 73
2 68
3 65
4 72
5 67

- 67
- 68.67
- 115
- 68
- 69

2. An alternative will have fixed costs of $10,000 per month, variable costs of $50 per unit, and
revenue of $70 per unit. The break-even point volume is:
- 1000
- 500
- None of these
- 100
- 2000

3. 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
- Copycatting
- Continuous improvement
- Employee empowerment
- Competitive benchmarking
- Industrial espionage

4. A single channel queuing system has an average service time of eight minutes and an average
time between arrivals of 10 minutes. The arrival rate is:
- 8 per hour
- 12.5 per hour
- 10 per hour
- 6 per hour
- 7.5 per hour

5. Given the following information, the utilization is:

 Effective capacity = 20 units per day
Design capacity = 60 units per day
Actual output = 15 units per day

- 3/4
- None of these
- 1/3
- 1/4
- 1/2

6. Given this information about an activity: ES = 10, EF = 20, LS = 29, LF = 38. The amount of slack
associated with the activity is
- 10
- 19
- 29
- 38
- 9

7. You may be able to speed up completion of a project by

- Redoing some of the activities
- Recalculating the critical path
- Reducing the standard deviation of activities
- Making additional resources available
- Adding slack to critical activities

8. What is the break-even quantity for the following situation?

FC = $1,200 per week
VC = $2 per unit
Rev = $6 per unit

- 1200
- 600
- 100
- 300
- 200

9. ISO 9000 standards do not have a requirement for

- Systems
- Remedial
- Resource
 - Management
- Training

10. If it is desired to reduce the amount of inventory in the system, the number of Kanban cards
should
- Be decreased
- Be increased
- Be calculated by formula
- Remain the same
- Remain the same, but container size should be increased

11. A scheduling technique used to achieve an optimum, one-to-one matching of tasks and
resources is
- Assignment method
- Optimum production technology method (OPT)
- Appointment method
- Reservation method
- Johnson’s rule

12. A major advantage of job specialization in business is increased

- Opportunity for self-fulfillment
- Productivity
- Job enrichment
- Opportunity for advancement
- Motivation

13. A job had an observed cycle time of 4 minutes, a performance rating of 80%, and an allowance
factor that was 20% of job time. Normal time for the job in minutes is
- 5.00
- 4.80
- 3.84
- 3.20
- 4.00

14. In monitoring the progress of a project, it is important to focus on

- Activities on the critical path
- Terminating events
- Initiating events
- Activities with large slacks
 - Activities with long completion times

15. A common goal in designing process layouts is

- Maximizing work-station productive time
- Minimizing idle time
- Minimizing transportation costs
- Minimizing the number of workers
- Maximizing transportation distances

16. When performing a time study, the analyst converts the observed time into the time an ‘average
worker would require working at an acceptable pace by using which of the following?
- Analysis of therbligs
- Allowance factors
- Performance rating
- MTM
- Methods analysis

17. What is a unique, one-time event that is intended to achieve an objective in a given time
period?
- A job
- An activity
- An event
- A project
- A task

18. Fixing a problem will often cost money; to minimize these costs it is best to find and fix the
problem
- Just before shipping our product to the customer
- Immediately after we complete the last operation
- During the design phase
- Regardless of when you fix the problem, costs are about the same
- Just before we begin the first production operation

19. A tool used to organize data into logical categories is called a/an
- Flow chart
- Relationship diagram
- Affinity diagram
- Control chart
- Check list
 20. Which phase in the project life cycle involves evaluating expected costs, benefits, and risks?
- Termination
- Feasibility analysis or study
- Execution
- Planning
- Conception

21. Eva, the owner of Eva’s Second-Time-Around Wedding Dresses, currently has five dresses to be
altered, shown in order in which they arrived:

JOB PROCESS TIME (HRS) DUE (HRS)

V 3 5
W 1 1
X 4 9
Y 2 3
Z 5 7

If Eva uses the earliest due date first (EDD) priority rule to schedule these jobs, what will be the average
job tardiness?

- 2 hours
- 2.4 hrs
- 3 hrs
- 2.33 hrs
- 2.2 hrs

22. What will be the effect on sample size in work sampling of increasing the permissible maximum
error?
- No effect on sample size
- Sometimes increase and sometimes decrease the sample size, depending on the analyst
- Increase the number of observations needed
- Impossible to say without additional information
- Decrease the number of observations needed

23. In the basic EOQ model, an annual demand of 40 units, an ordering cost of $5, and a holding
cost of $1/unit per year will result in an EOQ of
- 400
- None of these
- 20
- 200
 - Square root of 200

24. A group of machines including supervisory computer control, automatic material handling, and
possibly robots is called
- Computer aided design
- A manufacturing cell
- Computer-integrated manufacturing
- A flexible manufacturing system
- Computer-aided manufacturing

25. A control chart used to monitor the fraction of defective generated by a process is the
- C-chart
- P-chart
- Gantt chart
- R- chart
- X-bar chart

26. The two most important factors in choosing a forecasting technique are
- Cost and accuracy
- Cost and time horizon
- Quantity and quality
- Accuracy and time horizon
- Objective and time horizon

27. A basic difference between infinite source and finite source queuing models is
- The average waiting time
- Processing rate
- The arrival distribution
- The number of servers
- Size of potential calling population

28. The EOQ model is most relevant for which one of the following
- Determination of safety stock
- Determining fixed order quantities
- Determining fixed interval order quantities
- Ordering items with dependent demand
- Ordering perishable items
29. Which of the following is not a strategy to manage service capacity?
- Part time workers
 - Backordering
- Hiring extra workers
- Pricing and promotion
- Subcontracting

30. Which of the following quality control sample statistics indicates a quality characteristic that is
an attribute?
- Standard deviation
- Variance
- Range
- Proportion
- Mean

31. Which of the following is an element of TQM?

- Continual improvement
- Team approach
- Competitive benchmarking
- Operations manager empowerment
- All of the above

32. Lost production time, scrap and rework are examples of

- Prevention costs
- Internal failure costs
- Appraisal costs
- External failure costs
- Replacement costs

33. ORS Corp is designing a product layout for a new product. They plan to use this production line
ten hours a day in order to meet forecasted demand of 900 units per day. The following table
describes the tasks necessary to product this product:

TASK PREDECESSOR TIME (secs)

A - 34
B A 20
C B 10
D B 16
E C 10
F D,E 24
g F 38
 For output to equal forecasted demand, what should be the actual cycle time for this
production?

- 32 seconds
- 38 seconds
- 152 seconds
- 76 seconds
- 40 seconds

34. The project manager meets with the project team to review learned from previous projects. In
what activity is the team involved?
- Risk identification
- Performance management
- Project team status meeting
- Scope identification
35. Service design generally differs from product design in which of the following ways?
- There is no difference
- There is a lesser requirement to be aware of competitors’ offerings
- There is less latitude in detecting and correcting errors prior to delivery
- Service design tends to focus on tangible factors
- There is less visibility to customers
36. Which of the following is an issue that designers must take into account in product and service
design
- Standardization
- All of the above
- Reliability
- Legal, environment, and ethical issues
- Range of operating conditions
37. In a _________ system, customers enter the waiting line, receive service and leave.
- Simulated
- Random
- Queuing
- Fast-track
- Non-random
38. If no variations in demand or lead time exist, the ROP will equal
- Safety stock
- The EOQ
- Expected usage during lead time
- The EOQ plus safety stock
- The service level
39. Which of the following is not characteristic of a project
- Has life cycle
- Typically some activities may be done simultaneiously
- Consists of several tasks
 - Uses no resources
- Involves a unique, one-time event
40. The purpose of control charts is to
- Estimate the proportion of output that is acceptable
- Determine if the output is within tolerances/specifications
- Provide meaningful work for quality inspectors
- Distinguish between random variation and assignable variation in the process
- Weed out detective items
41. The term ‘degrees of newness’ is associated with
- Total years of business experience
- Average age of the capital equipment
- Average age of employees
- Degree of design change
- Average length of time on the job
42. JIT considers __________ to be a company’s most precious resource
- Vision
- Capital
- People
- Productive equipment
- Information
43. Activities on the critical path _____________
- Always are connected directly to dummy activities
- Have LS equal to LF
- Have no slack
- Are the ones with the longest activitiy times
- Have ES equal to EF
44. Production units have an optimal rate of output where
- Units cost are minimum
- Total revenue is maximum
- Rate of output is maximum
- Marginal costs are minimum
- Total costs are minimum
45. What is the optimum job sequence for the jobs listed below using Johnson’s rule
JOB CENTER 1 (HRS) CENTER 2 (HRS)
D 13 23
E 23 13
F 16 18
G 20 17

- E-D-F-G
- D-F-G-E
- D-G-F-E
- E-G-F-D
- F-E-D-G
46. Which phase in the project life cycle involves identifying the need for the project
 - Execution
- Conception
- Termination
- Planning
- Feasibility analysis or study
47. The priority rule which will sequence jobs in the order they are received is
- FCFS
- CR
- EDD
- FIFO
- SPT
48. Traditional manufacturing operations are based on the assumption that
- Overproduction is disastrous
- It is better to anticipate future requirements and plan for them
- Inventory has no value
- If you manufacture it, demand will increase
- Nice guys finish last
49. A chart showing the number of occurrences by category would be used in
- Pareto analysis
- Benchmarking
- Interviewing
- Cause-and-effect diagrams
- None of the above
50. ISO 9000 currently requires ______ of a certified organization
- A minimum of four supervisory levels
- Continuous improvement
- Annual audits
- Quarterly reporting
- Product diversity
51. The grouping of equipment by the operations needed to perform similar work for part families is
- Cellular manufacturing layout
- Process layout
- Fixed-position layout
- Product layout
- Functional layout
52. According to JIT _____________ is carried to cover up a wide variety of problems such as poor
quality, demand uncertainty and slow delivery
- Insurance
- A group of backup workers
- Spare equipment
- Excess capacity
- Inventory
53. ORS Corp. is designing a product layout for a new product. They plan to use this production line
ten hours a day in order to meet forecasted demand of 900 units per day. The following table
describes the tasks necessary to produce this product
 Task Predecessor Time (secs)
A - 34
B A 20
C B 10
D B 16
E C 10
F D, e 24
g F 38

For output to equal forecasted demand, what is the minimum order of workstations needed
- 1
- 3.75
- 3
- 4
- 5
54. Activities on the critical path
- Have no slack
- Are the ones with the longest activity times
- Have ES equal to EF
- Have LS equal to LF
- Always are connected directly to dummy activities
55. The purpose of control charts is to
- Distinguish between random variations and assignable variation in the process
- Provide meaningful work for quality inspectors
- Determine if the output is within tolerances/specifications
- Weed out defective items
- Estimate the proportion of output that is acceptable
56. A job has a normal time of 12 minutes, a performance rating of .80, and an allowance factor of
20 percent of job time. The standard time for this job in minutes is:
- 15
- Depends on the number of cycles observed
- 14.4
- 12
- 11.52
57. Which one of the following measures of system performance is a key measure with respect to
customer satisfaction
- Capacity costs per hour
- Probability of a server being busy
- Average number of customer in the calling population
- Average number of customers waiting in line
- System utilization
58. The manufacturing process in JIT starts with the
- Vendor deliveries
- Schedules for individual machines
- Forward scheduling
 - Final assembly schedule
- Prioritization of lots
59. Eva, the owner of Eva’s Second-Time-Around Wedding Dresses, currently have five dresses to be
altered, shown in order in which they arrived
Job Process Time (hrs) Due (hrs)
V 3 5
W 1 1
X 4 9
Y 2 3
Z 5 7

If Eva uses the first come, first served (FCFS) priority rule to schedule these jobs, what will be the
average completion time?

- 7.2 hours
- 5 hours
- 8 hours
- 3 hours
- 7 hours
60. The primary method for associative forecasting is
- Sensitivity analysis
- Centered moving averages
- Simple moving averages
- Regression analysis
- Exponential smoothing
61. The purpose of “cycle counting” is to:
- Count 10% of the items each month
- Reduce discrepancies between inventory records and actual
- Count bicycles and motorcycles in inventory
- Count all the items in inventory
- Reduce theft
62. A shift in the process mean for a measured characteristic would most likely be detected by a
- P-chart
- R-chart
- S-chart
- C-chart
- X-bar chart
63. If average demand for an inventory item is 200 units per day, lead time is three days and safety
stock is 100 units, the reorder point is
- 700 units
- 600 units
- 300 units
- 100 units
- 200 units
64. One of these is not a characteristic of a well-designed service system
- Distributed computer networks
- Easy to sustain user friendly
- Cost effective
- Robust
65. The tool that is useful in the collection and organization of data is:
- A flow chart
- A pareto chart
- A control chart
- A check sheet
- None of the above
66. Current information on _____ can have a significant impact on forecast accuracy
- Inventory
- All of the above
- Promotion
- Prices
- Competition
67. As part of a strategy for improving competitiveness, a manager may have to initially sacrifice
- Short-term performance
- Product or service quality
- Research and development
- Employee pay raises
- Personal incentive bonuses
68. Given an actual demand of 59, a previous forecast of 64, and an alpha of 3. What would the
forecast of the next period be using simple exponential smoothing
- 57.5
- 65.5
- 36.9
- 60/5
- 62.5
69. Deciding how much to invest in the prevention of defects can be analysed using
- EVPI
- Net present value
- Break even analysis
- Weighed factor analysis
- Return on quality
70. An alternative strategy to increase the capacity of a service system is
- Reducing the number of arrivals
- All of the above are viable options
- Increasing the processing rate
- Increasing variability
- Reducing the number of servers