Final Revision

Final Revision (true & false)& MCQ

Operation management

Chapter 01 - Introduction to Operations Management

True / False Questions 1. Operations managers are responsible for assessing consumer wants and needs and selling and promoting the organization's goods or services. FALSE

2. Often, the collective success or failure of companies' operations functions will impact the ability of a nation to compete with other nations. TRUE

3. The greater the degree of customer involvement, the more challenging the design and management of operations. TRUE

4. Goods producing organizations are not involved in service activities FALSE

5. The value of outputs is measured by the prices customers are willing to pay for goods or services. TRUE

6. People who work in the field of operations should have skillsthat include both knowledge and people skills. TRUE

7. The operations manager has primary responsibility for making operations system design decisions, such as system capacity and location of facilities. FALSE

8. The word "technology" is used only to refer to 'information technology'. FALSE

9. Service often requires greater labor content, whereas manufacturing is more capital intensive. TRUE

10. One method of classifying production systems is the degree ofstandardization. TRUE

Multiple Choice Questions 1 Operations management involves continuous decision-making; hopefully most decisions made will be: A. redundantB. minor in natureC. informedD. quantitativeE. none of the above

2. A 'product package' consists of: A. the exterior wrappingB. the shipping containerC. a combination of goods and services

D. goods if a manufacturing organizationE. customer relations if a service organization

3. Business organizations consist of three major functions which,ideally: A. support one anotherB. are mutually exclusiveC. exist independently of each otherD. function independently of each otherE. do not interface with each other

4. Technology choices seldom affect: A. Costs.B. Productivity.C. Union activity.D. Quality.E. Flexibility.

5. Budgeting, analysis of investment proposals, and provision offunds are activities associated with the _______ function. A. operationB. marketingC. purchasingD. financeE. internal audit

6. Which one of the following would not generally be classified under the heading of transformation? A. assemblingB. teachingC. staffingD. farmingE. consulting

7. The responsibilities of the operations manager are: A. planning, organizing, staffing, procuring, and reviewingB. planning, organizing, staffing, directing, and controllingC. forecasting, designing, planning, organizing, and controllingD. forecasting, designing, operating, procuring, and reviewingE. designing and operating

8. Knowledge skills usually don't include: A. process knowledgeB. accounting skillsC. communication skillsD. global knowledgeE. all of the above

9. Which of the following is not true about systems approach? A. A systems viewpoint is almost always beneficial in decision making.B. A systems approach emphasizes interrelationships among subsystems.C. A systems approach concentrates on efficiency within subsystems.D. A systems approach is essential whenever something is being redesigned or improved.E. All of the above are true.

10. What is credited with gains in industrial productivity, increased standards of living and affordable products? A. personal computersB. the internetC. mass transportationD. assembly linesE. multi-level marketing

Chapter 02 - Competitiveness, Strategy, and Productivity

True / False Questions

1. An example of a strategic operations management decision is the choice of where to locate. TRUE

2. An example of an operational operations management decision isinventory level management. TRUE

3. An example of a tactical operations management decision is determining employment levels. TRUE

4. Productivity is defined as the ratio of output to input. TRUE

6. Competitiveness relates to the profitability of an organization in the marketplace. FALSE

7. Tracking productivity measures over time enables managers to judge organizational performance and decide where improvements are needed. TRUE

8. Productivity is directly related to the ability of an organization to compete. TRUE

9. A characteristic that was once an order winner may become an order qualifier, and vice versa. TRUE

10. Productivity tends to be only a very minor factor in an organizations ability to compete. FALSE

11. An organization that is twice as productive as its competitor will be twice as profitable. FALSE

12. Wage and salary increases that are not accompanied by productivity increases tend to exert inflationary pressures on a nation's economy. TRUE

13. Global competition really only applies to multi-national organizations. FALSE

14. A business that is rated highly by their customers for service quality will tend to be more profitable than a business that is rated poorly. TRUE

15. Services often don't fit simple yield measurements. TRUE

16. A mission statement should provide a guide for the formulation of strategies for the organization. TRUE

17. The hierarchy and sequence of planning and decision-making is: mission, organizational strategy, tactics, and operational decisions. TRUE

18. Strategy includes both organizational and functional strategies. TRUE

19. As long as we match a competitor on quality and price we willgain market share. FALSE

20. Environmental scanning is a search for events or trends that present either threats or opportunities to the organization. TRUE

21. Standardization has the advantage of reducing variability. TRUE

22. Traditional strategies of business organizations have tendedto emphasize cost minimization or product differentiation. TRUE

23. The majority of our textbook deals with tactical operations that support established functional strategies. TRUE

24. Time-based strategies focus on reducing the time required to accomplish certain activities, such as new product development ordelivery to the customer. TRUE

25. Companies are required to use environmental scanning becauseof both federal and state regulations regarding environmental pollution control. FALSE

26. One major shortcoming of the Balanced Scorecard is that it doesn't take into account sustainability issues. TRUE

Multiple Choice Questions

27. Competitiveness doesn't include: A. ProductivityB. EffectivenessC. ProfitabilityD. Operations StrategyE. Operations Management

28. Product design and choice of location are examples of _______decisions.

A. strategicB. tacticalC. operationalD. customer focusedE. design

29. Scheduling personnel is an example of an operations management: A. mission implementationB. operational decisionC. organizational strategyD. functional strategyE. tactical decision

30. Productivity is expressed as: A. output plus inputB. output minus inputC. output times inputD. output divided by inputE. input divided by output

31. In the 1970's and 1980's in the USA, organizations concentrated on: A. operations strategiesB. improving qualityC. marketing and financial strategiesD. revising mission statementsE. environmental issues

32. A significant reason why U.S. productivity is the highest inthe world is high: A. agricultural productivityB. manufacturing productivityC. labor productivityD. savings productivityE. governmental productivity

33. Which of the following is not a factor that affects productivity?

A. computer virusesB. design of the workspaceC. use of the InternetD. standardizing processE. wireless cellular phones

34. Which of these factors affects productivity? A. methods and technologyB. workersC. managementD. a and b onlyE. all of the above

35. Which of the following is not a key step toward improving productivity? A. developing productivity measures for all operationsB. improving the bottleneck operationsC. establishing reasonable goals for improvementD. considering incentives to reward workersE. converting bond debt to stock ownership

36. For an organization to grow its market share, it must: A. advertise using multi-mediaB. lower pricesC. meet minimum standards of acceptability for its products or servicesD. establish an internet websiteE. broaden its mission statement

37. The ratio of good output to quantity of raw material input iscalled A. non-defective productivityB. process yieldC. worker quality measurementD. total quality productivityE. quantity/quality ratio

38. The fundamental purpose for the existence of any organization is described by its: A. policies

B. proceduresC. corporate charterD. mission statementE. bylaws

39. A productivity increase in one operation that doesn't improveoverall productivity of the business isn't A. worthwhileB. trivialC. competence-destroyingD. an order winnerE. an order qualifier

40. Value added can be calculated by: A. average productivity gains over timeB. inputs divided by the outputsC. outputs divided by the inputsD. input plus output divided by twoE. outputs minus inputs

41. Which of the following is true? A. Corporate strategy is shaped by functional strategies.B. Corporate mission is shaped by corporate strategy.C. Functional strategies are shaped by corporate strategy.D. External conditions are shaped by corporate mission.E. Corporate mission is shaped by functional strategies.

Chapter 03 :-ForecastingTrue / False Questions 1. Forecasting techniques generally assume an existing causal system that will continue to exist in the future. TRUE

2. For new products in a strong growth mode, a low alpha will minimize forecast errors when using exponential smoothing techniques. FALSE

3. Once accepted by managers, forecasts should be held firm regardless of new input since many plans have been made using theoriginal forecast. FALSE

4. Forecasts for groups of items tend to be less accurate than forecasts for individual items because forecasts for individual items don't include as many influencing factors. FALSE

5. Forecasts help managers plan both the system itself and provide valuable information for using the system. TRUE

6. Organizations that are capable of responding quickly to changing requirements can use a shorter forecast horizon and therefore benefit from more accurate forecasts. TRUE

7. When new products or services are introduced, focus forecasting models are an attractive option. FALSE

8. The purpose of the forecast should be established first so that the level of detail, amount of resources, and accuracy levelcan be understood. TRUE

9. Forecasts based on time series (historical) data are referred to as associative forecasts. TRUE

10. Time series techniques involve identification of explanatory variables that can be used to predict future demand. FALSE


52. Forecasts based on judgment and opinion don't include A. executive opinionB. salesperson opinion

C. second opinionsD. customer surveysE. Delphi methods

53. In business, forecasts are the basis for: A. capacity planningB. budgetingC. sales planningD. production planningE. all of the above

54. Which of the following features would not generally be considered common to all forecasts? A. Assumption of a stable underlying causal systemB. Actual results will differ somewhat from predicted values.C. Historical data is available on which to base the forecast.D. Forecasts for groups of items tend to be more accurate than forecasts for individual items.E. Accuracy decreases as the time horizon increases.

55. Which of the following is not a step in the forecasting process? A. determine the purpose and level of detail requiredB. eliminate all assumptionsC. establish a time horizonD. select a forecasting modelE. monitor the forecast

56. Minimizing the sum of the squared deviations around the line is called: A. mean squared error techniqueB. mean absolute deviationC. double smoothingD. least squares lineE. predictor regression

57. The two general approaches to forecasting are: A. mathematical and statisticalB. qualitative and quantitative

C. judgmental and qualitativeD. historical and associativeE. precise and approximation

58. Which of the following is not a type of judgmental forecasting? A. executive opinionsB. sales force opinionsC. consumer surveysD. the Delphi methodE. time series analysis

59. Accuracy in forecasting can be measured by: A. MSEB. MRPC. MAPED. MTME. A& C

60. Which of the following would be an advantage of using a salesforce composite to develop a demand forecast? A. The sales staff is least affected by changing customer needs.B. The sales force can easily distinguish between customer desires and probable actions.C. The sales staff is often aware of customers' future plans.D. Salespeople are least likely to be influenced by recent events.E. Salespeople are least likely to be biased by sales quotas.

61. Which phrase most closely describes the Delphi technique? A. associative forecastB. consumer surveyC. series of questionnairesD. developed in IndiaE. historical data

Chapter 04 :-Product and Service Design


1. Global teams provide diversity while eliminating conflicts andmiscommunication. FALSE

2. A ‘House of Quality' is achieved when no department in a single location has more than 15% rejects. FALSE

3. Concurrent Engineering is another term for sequential development. FALSE

4. One of the main advantages of standardization is that it increases the potential variety of products. FALSE

5. A disadvantage of standardization is the possibility of standardizing designs too early, which may make it difficult to modify in the future. TRUE

6. Reducing consumer choices makes service more efficient. TRUE

7. Modular design increases costs of purchasing and controlling inventory compared to non-modular. FALSE

8. Product failures can be easier to remedy with modular design. TRUE 9. One motivation for an organization to redesign its product orservice is to avoid the alternative of downsizing the organization. TRUE10. A major benefit of Computer Aided Design (CAD) is the increased productivity of designers. TRUE


46. The goal of value analysis is to find ways of _________. A. I. Reducing the cost of parts and materialsB. II. Improving the performance of the product or serviceC. III. Incorporating multiple cultural values in global system designD. Both I and IIIE. Both I and II

47. When considering re-use issues for a given product, an important factor to take into account is that product's _________. A. Ethical impactB. ReliabilityC. DurabilityD. Design for assemblyE. None of the above

48. Incorporating design for disassembly (DFD) principles in product design helps firms with ___________ design issues. A. LegalB. SocialC. Re-useD. Reverse engineeringE. Re-engineering

49. Designing for recycling helps facilitate ________. A. Reduced legal liabilityB. Compliance with regulatory environmentsC. Increased product reliabilityD. Reduced standardization costsE. None of the above

50. One way to increase reliability is to: A. improve component designB. increase the number of service stationsC. increase mean repair timeD. increase the number of dependent componentsE. none of the above

51. One way to increase reliability is to: A. eliminate backup componentB. improve preventive maintenance proceduresC. increase mean repair timeD. increase the number of independent componentsE. none of the above

52. Which of the following is not a reason for redesigning a product or service? A. to reduce labor or material costB. to increase the level of employee satisfactionC. to increase the level of customer satisfactionD. to attract and increase customer demandE. to increase quality

53. A disadvantage of global teams for product design is that: A. Customers may have different needs in different countriesB. The product designed may have increased marketability and utilityC. The diversity of an international team may be a detrimentD. Ease of face to face meetings is absent since members are located everywhereE. Technology allows constant contact with team members

54. The stage in a product or service life cycle where some firmsadopt a defensive research posture is: A. incubationB. growthC. maturityD. saturationE. decline

55. One step that isn't part of service blueprinting is: A. Eliminate boundaries for the service and decide on the level of interaction neededB. Identify and determine the sequence of customer and service actions and interactionsC. Develop time estimates for each phase of the processD. Understand the time variability involvedE. Identify potential failure points and develop a plan to minimize them

Chapter 06:-Process Selection and Facilities Layout


1. Continuous processing is the best way to produce customized output. FALSE

2. As a general rule, continuous processing systems produce products for inventory rather than for customer order. TRUE

3. A Job-Shop processing system generally requires less skilled workers than a continuous processing system. FALSE

4. Avoiding bottlenecks is the primary goal of product design. FALSE

5. In general, Job-Shop systems have a lower unit cost than continuous systems do because continuous systems use costly specialized equipment. FALSE

6. A robot consists of three parts: a power supply, a controller,and a mechanical arm. TRUE

7. Continuous production has been a significant factor underpinning the U.S. standard of living over the last century. TRUE

8. Right-sized equipment tends to be larger than equipment used in traditional process layout. FALSE

9. Intermittent processing can take the form of batch processingor a job shop. TRUE

10. The term computer aided manufacturing (CAM) refers primarily to the use of robotics in a manufacturing process. FALSE


49. Which of the following is not a process commonly considered in making products or delivering services? A. continuousB. batchC. repetitive

D. job shopE. subcontracting

50. The type of processing system which is used for highly standardized products is: A. continuousB. intermittentC. projectD. batchE. unit

51. Cellular layout is a term associated with: A. wireless telecommunicationB. part familiesC. functional (or process) layoutsD. assembly linesE. job shops

52. The substitution of machinery that has sensing and control devices for human labor is best described by the term: A. automationB. feedback controlC. computer-aided manufacturingD. computer-integrated manufacturingE. flexible manufacturing system

53. Computer-aided manufacturing (CAM) refers to the use of computers in: A. product designB. decision makingC. data analysisD. quality controlE. process control

54. A group of machines including supervisory computer control, automatic material handling, and possibly robots is called: A. computer aided designB. a manufacturing cellC. computer-aided manufacturing

D. computer-integrated manufacturingE. a flexible manufacturing system

55. In which type of operations are you likely to see, at most, only minor variations in the product or service being produced using the same process and the same equipment? A. a projectB. a job shopC. repetitive productionD. batch processingE. continuous production

56. The process of assigning tasks to workstations in such a way that the workstations have approximately equal time requirements is called: A. fair employment practicesB. idle time analysisC. line balancingD. cycle time optimizationE. none of the above

57. An operations strategy for process selection should recognizethat: A. process selection seldom requires technical expertiseB. engineering "white elephants" are uncommonC. there is little need to manage technologyD. flexibility is not always the best choiceE. most technical skills can be contracted out to consultants

58. Layout planning is required because of: (I) Efficient operations(II) Accidents or safety hazards(III) New products or services(IV) Morale problems A. I and IIB. II and IVC. I and IIID. II, III, and IVE. I, II, III, and IV

Chapter 08:-Location Planning and AnalysisTrue / False Questions 1. Location decisions are basically one-time decisions usually made by new organizations. FALSE

2. The fact that most types of firms are located in every sectionof the country suggests that in many cases, location decisions are not overly important; one location typically is as good as another. FALSE

3. You can't make a mistake by locating where labor costs are low. FALSE

4. Advanced communications has aided globalization. TRUE

5. The first step in developing location alternatives is identifying important factors. FALSE

6. An example of a regional factor in location planning is the location of our markets (either existing or potential). TRUE

7. A strategy that emphasizes convenience for the customers wouldprobably select a single very large facility. FALSE

8. For service organizations, the dominant factors in location analysis usually are market-related. TRUE9. Global Positioning Systems (GPS) use the Center of Gravity method to establish starting grid co-ordinates FALSE

10. Labor laws are an important site-related factor. FALSE


24. Nearness to raw materials would be most important to a A. grocery storeB. tax preparation serviceC. manufacturing companyD. post officeE. hospital

25. A one-hour photo processing machine in a Wal-Mart store is anexample of a ___. A. micro-factoryB. downsize strategyC. diversified strategyD. lean production systemE. falling price strategy

26. Which statement best characterizes a typical search for location alternatives? A. identify the best location choiceB. minimize cost consequencesC. maximize associated profitsD. locate near marketsE. identify acceptable location

27. Which of the following is not a location option that management can consider in location planning? A. expand an existing facilityB. add a new locationC. relocate from one location to anotherD. do nothingE. All are possible options.

28. Which of the following is the last step in the procedure for making location decisions? A. determine the evaluation criteriaB. identify important factorsC. develop location alternativesD. evaluate alternatives and make a selectionE. request input regarding alternatives

29. When a location evaluation includes both quantitative and qualitative inputs, a technique that can be used is ___. A. Linear programmingB. Consumer surveysC. Factor ratingD. Transportation modelsE. Center of gravity method

30. The center of gravity method is used to _______ travel time, distance and costs. A. NormalizeB. EliminateC. AverageD. MinimizeE. Document

31. In location planning, the location of raw materials, the location of markets, and labor factors are: A. regional factorsB. community factorsC. site-related factorsD. national factorsE. minor considerations

32. Software systems known as GIS help in location analysis. The initials GIS stand for __. A. Graphic Interface SystemsB. Global Integrated SoftwareC. Graded Information SystemsD. Geo Intensive SoftwareE. Geographical Information System

Chapter 02 - Competitiveness, Strategy, and Productivity

Chapter 02

Competitiveness, Strategy, and Productivity

True / False Questions 1. An example of a strategic operations management decision is the choice of where to locate. TRUE

2. An example of an operational operations management decision is inventory level management. TRUE

3. An example of a tactical operations management decision is whether to build a new facility or to expand an existing one. FALSE

4. An example of a tactical operations management decision is determining employment levels. TRUE

5. Productivity is defined as the ratio of output to input. TRUE

6. Productivity is defined as the ratio of input to output. FALSE

7. Competitiveness relates to the profitability of an organization in the marketplace. FALSE

8. If people would only work harder, productivity would increase. FALSE

9. Tracking productivity measures over time enables managers to judge organizational performance and decide where improvements are needed. TRUE

10. Productivity is directly related to the ability of an organization to compete. TRUE

11. A characteristic that was once an order winner may become an order qualifier, and vice versa. TRUE

12. Outsourcing tends to improve quality but at the cost of lowered productivity. FALSE

13. Productivity tends to be only a very minor factor in an organizations ability to compete. FALSE

14. An organization that is twice as productive as its competitor will be twice as profitable. FALSE15. National productivity is determined by averaging the productivity measures of various companies or industries. FALSE

16. Wage and salary increases that are not accompanied by productivity increases tend to exert inflationary pressures on a nation's economy. TRUE 17. Global competition really only applies to multi-national organizations. FALSE

18. A business that is rated highly by their customers for service quality will tend to be more profitable than a business that is rated poorly. TRUE

19. Services often don't fit simple yield measurements. TRUE

20. A mission statement should provide a guide for the formulation of strategies for the organization. TRUE

21. The hierarchy and sequence of planning and decision-making is: mission, organizational strategy, tactics, and operational decisions. TRUE

22. Strategy includes both organizational and functional strategies. TRUE

23. Organizational strategy should be determined without considering the realities of functional area strengths and weaknesses since they can be changed to meet our strategy. FALSE

24. Mission statements should be as specific as possible regarding exactly how they will be accomplished. FALSE

25. Improving efficiency will guarantee a similar improvement inproductivity FALSE

26. As long as we match a competitor on quality and price we willgain market share. FALSE27. Environmental scanning is a search for events or trends that present either threats or opportunities to the organization. TRUE

28. Standardization has the advantage of reducing variability. TRUE

29. Traditional strategies of business organizations have tended to emphasize cost minimization or product differentiation. TRUE

30. The majority of our textbook deals with tactical operations that support established functional strategies. TRUE

31. Quality-based strategies focus on customer satisfaction by ensuring that each product is carefully and thoroughly inspected prior to delivery to prevent sending out bad product. FALSE

32. Time-based strategies focus on reducing the time required to accomplish certain activities, such as new product development ordelivery to the customer. TRUE

33. Functional strategies should be designed to directly supporta firm's mission. FALSE

34. Companies are required to use environmental scanning becauseof both federal and state regulations regarding environmental pollution control. FALSE

35. The Balanced Scorecard is an attractive tool to use in the formation of strategy. FALSE

\36. One major shortcoming of the Balanced Scorecard is that it doesn't take into account sustainability issues. TRUE

Multiple Choice Questions 37. Competitiveness doesn't include: A. ProductivityB. EffectivenessC. ProfitabilityD. Operations StrategyE. Operations Management

38. Product design and choice of location are examples of _______decisions. A. strategicB. tacticalC. operationalD. customer focusedE. design

39. Scheduling personnel is an example of an operations management: A. mission implementationB. operational decisionC. organizational strategyD. functional strategyE. tactical decision

40. Productivity is expressed as: A. output plus inputB. output minus input

C. output times inputD. output divided by inputE. input divided by output

41. In the 1970's and 1980's in the USA, organizations concentrated on: A. operations strategiesB. improving qualityC. marketing and financial strategiesD. revising mission statementsE. environmental issues

42. A significant reason why U.S. productivity is the highest inthe world is high: A. agricultural productivityB. manufacturing productivityC. labor productivityD. savings productivityE. governmental productivity

43. Which of the following is not a factor that affects productivity? A. computer virusesB. design of the workspaceC. use of the InternetD. standardizing processE. wireless cellular phones

44. Which of these factors affects productivity? A. methods and technologyB. workersC. managementD. a and b onlyE. all of the above

45. Which of the following is not a key step toward improving productivity? A. developing productivity measures for all operationsB. improving the bottleneck operationsC. establishing reasonable goals for improvementD. considering incentives to reward workersE. converting bond debt to stock ownership

46. For an organization to grow its market share, it must: A. advertise using multi-mediaB. lower pricesC. meet minimum standards of acceptability for its products or servicesD. establish an internet websiteE. broaden its mission statement

47. The ratio of good output to quantity of raw material input iscalled A. non-defective productivityB. process yieldC. worker quality measurementD. total quality productivityE. quantity/quality ratio

48. The fundamental purpose for the existence of any organization is described by its: A. policiesB. proceduresC. corporate charterD. mission statementE. bylaws

49. A productivity increase in one operation that doesn't improveoverall productivity of the business isn't A. worthwhileB. trivialC. competence-destroyingD. an order winner

E. an order qualifier0% (0 out of 45 correct)

1.

In an assembly operation at a furniture factory, six employees assembled an average of 450 standard dining chairs per 5-day week. What is the labor productivity ofthis operation? A

. 90 chairs/worker/day

B.

20 chairs/worker/day

C.


D.


E.

none of the above

2.

The manager of a carpet store is trying to determine thebest installation crew size. He has tried various crew sizes with the results shown below. Based on productivity, what crew size do you recommend?

A.

2

B.

3

C.

4

3.

Gourmet Pretzels bakes soft pretzels on an assembly line. It currently bakes 800 pretzels each 8-hour shift.If the production is increased to 1,200 pretzels each shift, the productivity increases by: A 50%

. B

. 33%

C.

25%

D.

67%

E.

cannot be determined from the information given

4.

The weekly output of a fabrication process is shown below together with data for labor and material inputs. Standard selling price is $125 per unit. Overhead is charged weekly at the rate of $1,500 plus .5 times direct labor cost. Assume a 40-hour week and an hourly wage of $16. Material cost is $10 per foot. What is the average multifactor productivity?

A.

1.463

B.

1.457

C.

1.431

D.

none of the above.

5.

For the data given below, what would the naive forecast be for the next period (period #5)?

A.

58

B.

62

C.

59.5

D.

61

E.

cannot tell from thedata given

6.

Given an actual demand of 59, a previous forecast of 64,and an alpha of .3, what would the forecast for the nextperiod be using simple exponential smoothing? A

. 36.9

B.

57.5

C.

60.5

D.

62.5

E.

65.5

7.

Given an actual demand of 105, a forecasted value of 97,and an alpha of .4, the simple exponential smoothing forecast for the next period would be: A

. 80.8

B.

93.8

C.

100.2

D.

101.8

E.

108.2

8 Simple exponential smoothing is being used to forecast

. demand. The previous forecast of 66 turned out to be four units less than actual demand. The next forecast is66.6, implying a smoothing constant, alpha, equal to: A

. .01

B.

.10

C.

.15

D.

.20

E.

.60

9.

A manager uses the following equation to predict monthlyreceipts: Yt = 40,000 + 150t. What is the forecast for July if t = 0 in April of this year? A

. 40,450

B.

40,600

C.

42,100

D.

42,250

E.

42,400

10.

Given forecast errors of 5, 0, -4, and 3, what is the mean absolute deviation? A

. 4

B.

3

C 2.

. 5 D

. 2

E.

1

11.

Given forecast errors of 4, 8, and -3, what is the mean absolute deviation? A

. 4

B.

3

C.

5

D.

6

E.

12

12.

Given forecast errors of 5, 0, -4, and 3, what is the bias? A

. -4

B.

4

C.

5

D.

12

E.

none of the above

13.

Given the following historical data, what is the simple

three-period moving average forecast for period 6?

A.

67

B.

115

C.

69

D.

68

E.

68.67

14.

Given the following historical data and weights of .5, .3, and .2, what is the three-period moving average forecast for period 5?

A.

144.20

B.

144.80

C.

144.67

D.

143.00

E.

144.00

15.

Given forecast errors of -5, -10, and +15, the MAD is: A

. 0

B.

10

C.

30

D.

175

E.

none of these

16.

The president of State University wants to forecast student enrollments for this academic year based on thefollowing historical data:

R-1 3-1

What is the forecast for this year using the naive approach? A

. 18,750

B.

19,500

C.

21,000

D.

22,000

E.

22,800

17.


R-1 3-1

What is the forecast for this year using a four-year simple moving average? A

. 18,750

B.

19,500

C.

21,000

D.

22,650

E.

22,800

18.


R-1 3-1

What is the forecast for this year using exponential smoothing with alpha = 0.5, if the forecast for two years ago was 16,000? A

. 18,750

B.

19,500

C.

21,000

D.

22,650

E.

22,800

19.


R-1 3-1

What is the forecast for this year using the least squares trend line for these data? A

. 18,750

B.

19,500

C.

21,000

D.

22,650

E.

22,800

20.


R-1 3-1

What is the forecast for this year using trend adjusted(double) smoothing with alpha(1) = .05 and alpha(2) = 0.3, if the forecast for last year was 21,000, the forecast for two years ago was 19,000, and the trend estimate for last year's forecast was 1,500? A

. 18,750

B.

19,500

C.

21,000

D.

22,650

E.

22,800

21.

The business analyst for Video Sales, Inc. wants to forecast this year's demand for VCR's based on the following historical data:

R-2 3-2

What is the forecast for this year using the naive approach? A

. 163

B.

180

C.

300

D.

420

E.

510

22.


R-2 3-2

What is the forecast for this year using a three-year weighted moving average with weights of .5, .3, and .2?A

. 163

B.

180

C.

300

D.

420

E.

510

23.


R-2 3-2

What is the forecast for this year using exponential smoothing with alpha = .4, if the forecast for TWO years ago was 750? A

. 163

B.

180

C.

300

D.

420

E.

510

24.


R-2 3-2

What is the forecast for this year using the least squares trend line for these data? A 16

. 3 B

. 180

C.

300

D.

420

E.

510

25.


R-2 3-2

What is the forecast for this year using trend adjusted(double) smoothing with alpha(1) = 0.3 and alpha(2) = 0.2, if the forecast for last year was 31, the forecastfor two years ago was 43, and the trend estimate for last year's forecast was -15? A

. 16,300

B.

18,000

C.

30,000

D.

40,000

E.

51,000

26.

Professor Very Busy needs to allocate time next week toinclude time for office hours. He needs to forecast the

number of students who will seek appointments. He has gathered the following data:

R-3 3-3

What is this week's forecast using the naive approach? A

. 45

B.

50

C.

52

D.

65

E.

78

27.

Professor Very Busy needs to allocate time next week toinclude time for office hours. He needs to forecast thenumber of students who will seek appointments. He has gathered the following data:

R-3 3-3

What is this week's forecast using a three-week simple moving average? A

. 49

B.

50

C.

52

D.

65

E 7

. 8

28.


R-3 3-3

What is this week's forecast using exponential smoothing with alpha = .2, if the forecast for two weeks ago was 90? A

. 49

B.

50

C.

52

D.

65

E.

78

29.


R-3 3-3

What is this week's forecast using the least squares trend line for these data? A

. 49

B.

50

C.

52

D.

65

E.

78

30.


R-3 3-3

What is this week's forecast using trend adjusted (double) smoothing with alpha(1) = 0.5 and alpha(2) = 0.1, if the forecast for last week was 65, the forecastfor two weeks ago was 75, and the trend estimate for last week's forecast was -5? A

. 49

B.

50

C.

52

D.

65

E.

78

31.

A concert promoter is forecasting this year's attendance for one of his concerts based on the

following historical data:

R-4 3-4

What is this year's forecast using the naive approach? A

. 22,000

B.

20,000

C.

18,000

D.

15,000

E.

12,000

32.

A concert promoter is forecasting this year's attendance for one of his concerts based on the following historical data:

R-4 3-4

What is this year's forecast using a two-year weighted moving average with weights of .7 and .3? A

. 19,400

B.

18,600

C.

19,000

D.

11,400

E.

10,600

33.


R-4 3-4

What is this year's forecast using exponential smoothing with alpha = .2, if last year's smoothed forecast was 15,000? A

. 20,000

B.

19,000

C.

17,500

D.

16,000

E.

15,000

34.


R-4 3-4

What is this year's forecast using the least squares trend line for these data? A

. 20,000

B.

21,000

C.

22,000

D 23,0

. 00 E

. 24,000

35.


R-4 3-4

The previous trend line had predicted 18,500 for two years ago, and 19,700 for last year. What was the mean absolute deviation (MAD) for these forecasts? A

. 100

B.

200

C.

400

D.

500

E.

800

36.

The dean of a school of business is forecasting total student enrollment for this year's summer session classes based on the following historical data:

R-5 3-5

What is this year's forecast using the naive approach? A

. 2,000

B 2,20

. 0 C

. 2,800

D.

3,000

E.

none of the above

37.


R-5 3-5

What is this year's forecast using a three-year simple moving average? A

. 2,667

B.

2,600

C.

2,500

D.

2,400

E.

2,333

38.


R-5 3-5

What is this year's forecast using exponential

smoothing with alpha = .4, if last year's smoothed forecast was 2600? A

. 2,600

B.

2,760

C.

2,800

D.

3,840

E.

3,000

39.


R-5 3-5

What is the annual rate of change (slope) of the least squares trend line for these data? A

. 0

B.

200

C.

400

D.

180

E.

360

40.

The dean of a school of business is forecasting total student enrollment for this year's summer session

classes based on the following historical data:

R-5 3-5

What is this year's forecast using the least squares trend line for these data? A

. 3,600

B.

3,500

C.

3,400

D.

3,300

E.

3,200

41.

The owner of Darkest Tans Unlimited in a local mall is forecasting this month's (October's) demand for the onenew tanning booth based on the following historical data:

R-6 3-6

What is this month's forecast using the naive approach?A

. 100

B.

160

C.

130

D.

140

E.

120

42.


R-6 3-6

What is this month's forecast using a four-month weighted moving average with weights of .4, .3, .2, and.1? A

. 120

B.

129

C.

141

D.

135

E.

140

43.


R-6 3-6

What is this month's forecast using exponential smoothing with alpha = .2, if August's forecast was 145? A

. 144

B.

140

C.

142

D.

148

E.

163

44.


R-6 3-6

What is the monthly rate of change (slope) of the leastsquares trend line for these data? A

. 320

B.

102

C.

8

D.

-0.4

E.

-8

45.

The owner of Darkest Tans Unlimited in a local mall is forecasting this month's (October's) demand for the onenew tanning booth based on the following historical

data:

R-6 3-6

What is this month's forecast using the least squares trend line for these data? A

. 1,250

B.

128.6

C.

102

D.

158

E.

164

Retake Test

50. Value added can be calculated by: A. average productivity gains over timeB. inputs divided by the outputsC. outputs divided by the inputsD. input plus output divided by twoE. outputs minus inputs

51. Which of the following is true? A. Corporate strategy is shaped by functional strategies.B. Corporate mission is shaped by corporate strategy.C. Functional strategies are shaped by corporate strategy.D. External conditions are shaped by corporate mission.E. Corporate mission is shaped by functional strategies.

52. Core competencies in organizations generally relate to: A. priceB. qualityC. timeD. flexibilityE. all of the above

53. Which of the following is considered to be a cause of poor U.S. global competitiveness? A. the tendency to view labor as a cost factor to be minimizedB. decision-making based on short-term horizonsC. weaknesses in technological practiceD. powerful trading partnersE. all of the above

54. Which of the following is not typically considered a cure for poor competitiveness? A. remove communications barriers within organizationsB. minimize attention to the operations functionC. put less emphasis on short-term financial resultsD. recognize labor as a valuable asset and act to develop itE. improve quality

55. Time-based approaches of business organizations focus on reducing the time to accomplish certain necessary activities. Time reductions seldom apply to: A. product/service design timeB. processing timeC. delivery timeD. response time for complaints E. internal audits

56. The external elements of SWOT analysis are: A. strengths and weaknessesB. strengths and threatsC. opportunities and threatsD. weaknesses and opportunitiesE. strengths and opportunities

57. In an assembly operation at a furniture factory, six employees assembled an average of 450 standard dining chairs per 5-day week. What is the labor productivity of this operation? A. 90 chairs/worker/dayB. 20 chairs/worker/dayC. 15 chairs/worker/dayD. 75 chairs/worker/dayE. none of the above

58. Which of the following is not a reason for poor performance of our organization in the marketplace? A. placing too much emphasis on product/service design and too little on process designB. failing to take into account customer wants and needsC. putting too much emphasis on short-term financial performanceD. taking advantage of strengths/opportunities, and recognizing competitive threatsE. none of the above

59. The manager of a carpet store is trying to determine the best installation crew size. He has tried various crew sizes withthe results shown below. Based on productivity, what crew size doyou recommend?

A. 2B. 3C. 4

60. Which of the following is not a key factor of competitiveness? A. priceB. product differentiationC. flexibilityD. after-sale serviceE. size of organization

61. Gourmet Pretzels bakes soft pretzels on an assembly line. It currently bakes 800 pretzels each 8-hour shift. If the productionis increased to 1,200 pretzels each shift, then productivity willhave increased by: A. 50%B. 33%C. 25%D. 67%

62. The weekly output of a fabrication process is shown below together with data for labor and material inputs. Standard selling price is $125 per unit. Overhead is charged weekly at therate of $1,500 plus .5 times direct labor cost. Assume a 40-hour week and an hourly wage of $16. Material cost is $10 per foot. What is the average multifactor productivity?

A. 1.463B. 1.457C. 1.431

63. The Balanced Scorecard is a useful tool for helping managers translate their strategy intoaction in the following areas:

A. Sustainability; Flexibility; Efficiency; Technology

B. Customers; Financial; Internal Business Processes; Learning and Growth

C. Customization; Standardization; Efficiency; Effectiveness

D. The Environment; The Community; Suppliers; Other Stakeholders

E. Strategy; Tactics; Productivity; Profitability

64. A firm pursuing a strategy based on customization and varietywill tend to structure and manager its supply chain to accommodate more _____________ than a firm pursuing a strategy based on low-cost and high-volume. A. VariationB. Streamlined flowC. QualityD. CapacityE. Productivity

65. Unique attributes of firms that give them a competitive edge are called ________________. A. Functional strategiesB. Balanced scorecardsC. Supply chainsD. Core competenciesE. Sustainable initiatives

66. Years ago in the overnight delivery business, providing package tracking capability gave some firms a competitive advantage. Now, all firms must offer this capability simply to bein this line of business. This is an example of ______________ becoming ____________ over time. A. Tactical implications; strategicB. Strategic implications; tacticalC. Order winners; order qualifiersD. Profitability factors; productivity factorsE. Order qualifiers; order winners

67. For firms competing in worldwide markets, conducting __________________ is more complex, since what works in one country or region might not work in another. A. Productivity analysisB. Environmental analysisC. Strategy implementation

D. Sustainability analysisE. Growth forecasting.

2-

The advantages of standardization include: I. early freezing of the design. II. Fewer parts to deal with in inventory. III. Reduced training cost and time. IV. More routinepurchasing.

A) I, II

B) I, IV

C) I, II, III

D) II, III, IV

E) I, II, III, IV

2 The term that pertains to incorporating customer ideas in product design is:

A) TQM

B) CAD

C) QFD

D) Robust design.

E) Reverse engineering

3 Product designs that use computers is referred to as:

A) QFD

B) CED

C) RFD

D) CAD

E) TQM

4 Taking apart a competitor's product to better understand how it operates is:

A) Remanufacturing

B) Concurrent engineering

C) Robust design

D) Illegal

E) None of the above.

5 Which of these is a stage in the life cycle of a product or service?

A) Incubation.

B) Growth.

C) Maturity.

D) Saturation.

E) All of the above are stages.

6 The Taguchi Approach is most closely associated with:

A) Total Quality Management

B) Standardization.

C) Quality function deployment.

D) Robust design.

E) Concurrent engineering.

7 Which one of these is not related to mass customization?

A) Standardization

B) Reverse engineering

C) Delayed differentiation

D) Modular design

E) Manufacturability

8 Remanufacturing means:

A) Reassembling a defective product.

B) Redesigning the layout of the factory.

C) Refurbishing used products.

D) Redesigning the product.

E) Retraining the workers.

9 Basic research, applied research and development are all part of the product life cycle.

A) True

B) False

10 The Uniform Commercial Code specified that a product must be suitable for its intended purpose.

A) True

B) False

11 The term robust design refers to a product that has exceptional strength.

A) True

B) False

12 The term concurrent engineering refers to bringing engineering and manufacturing personnel together early in the design phase.

A) True

B) False

13 Modular design is a form of standardization.

A) True

B) False

14 CAD uses computer graphics for product design.

A) True

B) False

15 Quality function deployment is a method of integrating the "voice of the customer" into the design process.

A) True

B) False

16 Equipment breakdowns is a frequent cause of delayed differentiation.

A) True

B) False

17 Standardized parts are interchangeable parts.

A) True

B) False

18 Designing for disassembly and designing for recycling are nearly synonymous terms.

A) True

B) False

19 The name Taguchi is associated with robust design.

A) True

B) False

20 Recycling is essentially remanufacturing.

A) True

B) False

21 A major consideration in product design is manufacturability.

A) True

B) False

22 Environmental scanning refers to checking environmental regulations before proceeding with product design.

A) True

B) False

23 The term concurrent engineering refers to bringing engineering and manufacturing personnel together early in the design phase.

A) True

B) False

24 Delayed differentiation and modular design are two tactics useful for mass customization.

A) True

B) False

25 Quality function deployment is a method of integrating the "voice of the customer" into the design process.

A) True

B) False

26 Product designs that use computers is referred to as:

A) QFD

B) CAM

C) RFD

D) CAD

E) TQM

27 Which of the following may be a dimension of quality?

A) Performance.

B) Conformance.

C) Reliability.

D) Durability.

E) All may be dimensions of quality.

28 Remanufacturing means:

A) Reassembling a defective product.

B) Redesigning the layout of the factory.

C) Replacing worn out components in products and reselling the products.

D) Redesigning the product.

E) Retraining the workers.

29 One possible disadvantage of modular design is that:

A) Replacement and repair is more difficult.

B) Failure diagnosis is more complex.

C) Number of configurations of modules decreases.

D) Individual parts lose their identities.

E) Inventory problems arise.

30 As part of a strategy for improving competitiveness, a manager may have to initially sacrifice:

A) Research and development

B) Short-term performance

C) Employee pay rises

D) Product or service quality

E) all of the above

31 Service design generally differs from product design in which of the following ways?

A) Service design tends to focus on tangible factors.

B) There is less latitude in detecting and correcting errors prior to delivery.

C) There is a lesser requirement to be aware of competitors' offerings.

D) There is less visibility to customers.

E) None of the above

2.) What is the purpose of a value analysis?A. To cut down on production time

B. To reduce cost and/or improve product performanceC. To analyze the potential profitability of the product

D. To ensure customer satisfaction and profitsE. None of the above

Correct Answer - B) to reduce cost and/or improve product performance. (Page138)

3.) What are the four phases of the Product Life Cycle?A. Introduction, Growth, Maturity, Decline

B. Research, Design, Introduction, Maturity, DeclineC. Design, Introduction, Maturity, DeclineD. Growth, Maturity, Decline, Re-Design

E. Introduction, Maturity, Decline, Re-Design

Correct Answer - A) Introduction, Growth, Maturity, Decline (Page 143)

4.) Which of the following is an advantage of standardization?A. Design may be frozen with too many imperfections remaining.

B. High cost of design changes increases resistance to improvements.C. More routine purchasing, handling and inspection of procedures.

D. Decreased variety results in less consumer appeal.E. All of the above are disadvantages of standardization.

Correct Answer - C) More routine purchasing, handling and inspection ofprocedures. (Page 145)

5.) Which of the following is NOT a phase in the service design process?A. Conceptualize (idea generation, Asses customer needs and demand).

B. Identify service package and components needed.C. Determine performance specifications.

D. Only a & b are phases in the service design process.E. All of the following are phases in the service design process.

Correct Answer - E) All of the following are phases in the service designprocess. (Page 163)

6.) Which is an important factor that gives rise to market opportunities andthreats for product and service design?

A. EconomicB. Social and demographic

C. Political and CompetitiveD. A & B

E. All of the above

(Answer E) Page 132

7.) Which of the following is NOT a key question about product and servicedesign from an organization's standpoint?

A. Is there demand for it?B. Can we do it?

C. What level of management is appropriate?D. What level of quality is appropriate?

E. None of the above

(Answer C) Page 135

8.) The assessment of the environmental impact of a product or servicethroughout it's useful life is known as?

A. Product liabilityB. Uniform commercial codeC. Life cycle assessment

D. Value analysisE. Recycling

(Answer C) Page 137

9.) Which of the following is NOT a phase in the product and service lifecycle?

A. IntroductionB. Growth

C. ConclusionD. ResearchE. Re-Design

(Answer C) Page 143

10.) Which term refers to a design that results in products or services thatcan function over a broad range of conditions?

A. Robust Design

B. Global Product DesignC. Reverse Engineering

D. Concurrent EngineeringE. Research and Development

(Answer A) Page 148

11.) How many stages are there in the product or service useful life cycle?A. 2B. 3C. 4D. 5

E. Depends on the type of product/service

(Answer C) Page 143

13.) Which of these are sources used to generate new ideas?A. Supply chain,Competitor, ResearchB. Distributors, Suppliers, Employees

C. Supply ChainD. Maintenance Personnel, Surveys, Customers

E. All of the above

Answer: E Page 151

14.) The Kano Model is a theory of product and service that employs"Excitement, Performance, and what other type of quality"?

A. Long-TermB. BasicC. Design

D. VersatileE. Unique

Answer: B Page 159

15.) Which of these is NOT a potential way of improving reliability?A. Improve component design

B. Improve testingC. Improve production and/or assembly techniques

D. Use backupsE. These are all potential ways of improving reliability

Answer: E Page 147

16.) Which approach integrates the "voice of the customer" into both productand service development?A. Quality for development

B. Quality function designC. Quality function deploymentD. Quantity function deployment


Answer: C Page 156

17.) What concept refers to refurbishing used products by replacing worn-outor defective components?

A. ReduceB. Re-manufacturingC. Value Analysis

D. RecycleE. None of the above

Answer: B Page 138

18.) Which of the following is a reason why companies choose to recycle?A. Environmental concerns

B. Cost savingsC. Environmental Regulations

D. None of the aboveE. All of the above

Answer: E. Page 141

19.) Which of these is NOT involved in research and development?A. Functional research

B. Basic researchC. Applied research

D. DevelopmentE. None of the above

Answer: A. Page 152

20.) What is the term 'DFM' referred to as?A. Designing for marketabilityB. Diverse financial management

C. Design for materialsD. Design for manufacturing


Answer: D. Page 156

21.) Which of the following is NOT included in the overall service package:A. Explicit servicesB. Implicit services

C. Accompanying goods/services purchased or consumedD. Physical resources needed

E. All of the Above

Answer: E_Page 153

22.) Which of the following are NOT related to phases in Product Design andDevelopment

A. Process SpecificationsB. Prototype

C. Feasibility AnalysisD. Modular DesignE. Design Review

Answer : D_Page 139

23.) Which is a benefit of research and development:A. PatentsB. LicensingC. RoyaltiesD. both a & b

E. All of the above

Answer : E_Page 152

24.) To achieve a smoother transition from product design to production,companies are using simultaneous development and ?

A. Computer Aided Design (CAD)B. Design for Disassembly (DFD)

C. Component CommonalityD. Concurrent Engineering

E. Design for Assembly (DFA)

Answer : D_Page 154

25.) Idea Generation comes from which source/s?A. Competitor BasedB. Customer Based

C. Supply Chain BasedD. Research Based

E. A, C, & D

Answer : E_Page 139

26.) Which of the following are NOT benefits of Component Commonality Productsor Services?

A. High degree of similarity

B. High degree of componentsC. Reduce Inventory DealersD. Savings in Design timeE. Ensure Customer Quality

Answer : E_Page 141

28.) Factors that give rise to market opportunities and threats are:A. Competitive

B. Political, liability, or legalC. Social and demographic

D. EconomicE. All of the above

Answer: E_Page 132

Which of the following is not an example of of political, liability, or legalchange?

A.) Government changesB.) Excessive warranty claims

C.) Safety IssuesD.) New regulationsAnswer: B_page 132

30.) What is the purpose of Value Analysis?A. Find the value of every functional area in an organizationB. To determine the benefit of supplying a product or service

C. To decide if supplying a service or product will gain market shareD. To examine the design process and determine its value to the organizationE. To examine the function of parts and materials in an effort to reduce cost

and/or improve product performance

Answer: E_Page 138

31.) What is a key question of manufacturability and serviceability?A. Is there demand for it?

B. Can we do it?C. What level of quality is appropriate?

D. Does it make sense from an economic standpoint?E. All of the above

Answer: B_Page 135

32.) Which of the following is NOT a way to improve reliability?A. The use of backup components

B. Preventive maintenance proceduresC. Production or assembly techniques

D. Delayed differentiationE. User education

Answer: D Page 147

33.) Which is the optimal level of reliability?A. Point where the incremental benefit received equals the incremental cost of

obtaining it.B. Point where the incremental benefit received is higher than the incremental

cost of obtaining it.C. Point where the incremental benefit received is lower than the incremental

cost of obtaining it.D. Point where the incremental benefit received is half than the incremental

cost of obtaining it.E. Point where the incremental benefit received is double than the incremental

cost of obtaining it.

Answer: A Page 148

34.) Which code addresses the issue of responsibility of a manufacturer forany injuries or damages caused by a faulty product because of poor workmanship

or design?A. Uniform Commercial CodeB. Design for disassembly

C. Product liabilityD. Robust design

E. Concurrent engineering

Answer: C Page 136

35.) The three R’s stand for which of the following?A. Render, Rebuilt, RearrangeB. Reduce, Renew, RecycleC. Reduce, Reuse, Rebuild

D. Recycle, Remanufacture, RebuildE. Reuse, Recycle, Reduce

Answer: E Page 138

36.) Which of the following is NOT a characteristic of a service?A. Services are generally intangible.B. Services cannot be inventoried

C. Some services have high barriers to entry and exitD. In many instances services are created and delivered at the same time

E. Services are highly visible to consumers

Answer: C Page 161

37.) Who is generally responsible for product liability for any injuries ordamages caused by a faulty product?

A. The Retail StoreB. The Consumer

C. The ManufacturerD. The Government


Answer: C Page 136

38.) What of the following products has a robust design?A. High heels

B. Leather sandalC. Rubber BootsD. Gym shoesE. Slippers

Answer: C Page 148

39.) Who regulates organizations concerning legal and ethical matters?A. CompetitorsB. Designers

C. Government agenciesD. LawsuitsE. Consumers

Answer: C Page 136

40.) Which of these statements is False in regards to service designs:A. Are generally intangible

B. Are not visible to consumersC. Cannot be inventories

D. Have low barriers to entry and exitE. All are correct

Answer: B Page 161

41.) A method for describing and analyzing a service process is:A. Service layout

B. Service blueprintC. Service designD. Product designE. Product process

Answer B Page 162

42.) Service refers to a/an:A. Act pg 153B. Design

C. Target marketD. Resource

E. Organization

43.) Service packages include(s):A. Physical resourceB. Accompanying goodC. Explicit servicesD. Implicit servicesE. ALL THE ABOVEAnswer: Page 153

44.) Which of the following statements is false:A. Services are highly visible to consumers

B. Some services have low barriers to entry and exitC. Service can be inventoried pg 154D. Services are generally intangible

E. Usually Services are created and delivered at the same timeAnswer: C pg. 154

46.) Guidelines for a successful service design include all except:A. Define service package in detail

B. Maximizing profits should be your main concern Page 156C. Focus on operation from the customer perspective

D. Make sure managers will support the design once it is implementedE. Define the quality of the intangibles and tangibles.

Answer: B pg.156

47.) The responsibility of a manufacturer for any injuries or damages causedby a faulty product is:A. Life cycle assessment

B. Value analysisC. Re-manufacturing

D. Design for dis-assemblyE. Product liability

Answer: E Page 136

48.) The extent to which a product, service, or process lacks variety is:A. Standardization

B. Reverse engineeringC. Reliability

D. All of the aboveE. serviceability

Answer: A Page 144

50.) Manufacturability is:A. The ease of fabrication and/or assemblyB. Product design using computer graphics

C. Product standardizationD. A characteristic of services

E. Manufacturer's capacityAnswer: A Page 156

51.) All are ways to improve reliability EXCEPT:A. Use backups

B. Improve visionC. Improve testingD. Improve systemE.none of the above

Answer: B Page 147

52.) Which is not a method of a product design?

A. Mass standardizationB. Mass customization

C. Delayed DifferentiationD. Robust DesignE. Modular design

Answer: E Page 146

53.) Which one is not part of idea generation?

A. Supply-chain basedB. Competitor basedC. Research based

D. All are part of idea generationE. None of the aboveAnswer: D Page 151

54.) Which of the following is an advantage of standardization?

A. Fewer parts to deal withB. Reduced training costs

C. Opportunities for automationD. More routine purchasing

E. All are advantagesAnswer: E Page 145

55.) What is meant by the term standardization?

A. Creating a product but not finishing it until customer preferences arerealized.

B. Absence of variety in a product, service or process.C. Variety in a product, service or process.

D. None of the above.E. All of the aboveAnswer: B Page 144

57.) Which term refers to a feature or attribute that was unexpected by thecustomer and causes excitement

A. Performance QualityB. Excitement quality

C. Basic QualityD. None of the aboveE. Awesome qualityAnswer: B Page 159

58.) What is NOT an advantage of standardization?

A. Fewer parts to deal with in inventory and managementB. More routine purchasing

C. Opportunities for long production runs and automationD. Decreased variety

E. Reduced training time.Answer: D Page 145

59.) The Kano Model was developed by

A. Dr. Noriaki KanoB. Scott AdamsC. Chris ChapmanD. Wayne Cascio

E. Robert L. EnglundAnswer: A Page 159

60.) Delayed differentiation is common in which of the following:A. Pens

B. Men's SuitsC. ScrewsD. Cement

E. Books

Answer: B Page 146

61.) What is NOT part of sustainability?A. Life Cycle Assessment

B. RemanufacturingC. RecyclingD. Polluting

E. Value Analysis

Answer: C Page 138

62.) Dismantling and inspecting a competitor's product to discover productimprovements (Hint: Ford Co. used this tactic) is

A. Research and DevelopmentB. Employee recommendationsC. Concurrent EngineeringD. Computer Aided DesignE. Reverse Engineering

Answer: E Page 152

63.) The Uniform Commercial Code states that products carry an implication of:A. Merchantability and fitnessB. Merchantability and finess

C. Cost and qualityD. Sustainability and reliability

E. None of the Above

ANSWER: A) Merchantability and fitness Page 136

64.) Organizations want designers to adhere to the following guidelinesexcept:

A. Produce designs that are consistent with goals of the organizationB. Give customers the value they expect

C. Make health a primary concernD. Make safety a primary concern

E. Reduce costs as much as possible

ANSWER: E Reduce costs as much as possible Page 137

65.) Which of the following is an advantage of Standardization?A. Reducing training costs and timeB. Orders fillable from inventory

C. Opportunities for long production runs and automationD. More routine purchasing, handling, and inspection procedures

E. All of the Above

ANSWER: All of the Above Page 145

67.) What are some reasons why companies choose to recycle? Pg 141A. Cost savings

B. Environment concernsC. Environmental regulations

D. All of the above E. None of the above

68.) Which best describes a disadvantage of standardization? Pg 145A. Fewer parts to deal with in inventory

B. Order fillable from inventoryC. High cost of design changes

D. Long production runs and automationE. Low cost of design changes decrease in resistance to improvements

70.) Ideas for products can come from which of the following sources?A. Supply-chain basedB. Competitor basedC. Research basedD. All of the aboveE. None of the Above

Final Revision

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