Test 2

Question 1

1) Which of the following statements regarding Arnold Palmer Hospital is FALSE?
A) The hospital uses a wide range of quality management techniques.
B) The culture of quality at the hospital includes employees at all levels.
C) The hospital scores very highly in national studies of patient satisfaction.
D) The hospital’s high quality is measured by low readmission rates, not patient satisfaction.
E) The design of patient rooms, even wall colors, reflects the hospital’s culture of quality.

Answer 1

D) The hospital’s high quality is measured by low readmission rates, not patient satisfaction.

Question 2

2) Arnold Palmer Hospital uses which of the following quality management techniques?
A) Pareto charts
B) flowcharts
C) benchmarking
D) just-in-time
E) The hospital uses all of the above techniques.

Answer 2

E) The hospital uses all of the above techniques.

Question 3

3) Companies with the highest levels of quality are how many times more productive than their competitors with the lowest quality levels?
A) 2
B) 3
C) 4
D) 5
E) None of the above because quality has no impact on productivity (units/labor hr.).

Answer 3

D) 5

Question 4

4) A successful quality strategy features which of the following elements?
A) an organizational culture that fosters quality
B) an understanding of the principles of quality
C) engaging employees in the necessary activities to implement quality
D) A and C
E) A, B, and C

Answer 4

E) A, B, and C

Question 5

5) Quality can improve profitability by reducing costs. Which of the following is not an aspect of reduced costs by quality improvements?
A) flexible pricing
B) increased productivity
C) lower rework and scrap costs
D) lower warranty costs
E) All of the above are aspects of reduced costs by quality improvements.

Answer 5

A) flexible pricing

Question 6

6) “Quality lies in the eyes of the beholder” is:
A) an unrealistic definition of quality.
B) a user-based definition of quality.
C) a manufacturing-based definition of quality.
D) a product-based definition of quality.
E) the definition of quality proposed by the American Society for Quality.

Answer 6

B) a user-based definition of quality.

Question 7

7) “Making it right the first time” is:
A) an unrealistic definition of quality.
B) a user-based definition of quality.
C) a manufacturing-based definition of quality.
D) a product-based definition of quality.
E) the definition of quality proposed by the American Society for Quality

Answer 7

C) a manufacturing-based definition of quality.

Question 8

8) Three broad categories of definitions of quality are:
A) product quality, service quality, and organizational quality.
B) user based, manufacturing based, and product based.
C) internal, external, and prevention.
D) low-cost, response, and

Answer 8

B) user based, manufacturing based, and product based.

Question 9

9) Which of the following is NOT one of the major categories of costs associated with quality?
A) prevention costs
B) appraisal costs
C) internal failure costs
D) external failure costs
E) None of the above; they are all major categories of costs associated with quality.

Answer 9

E) None of the above; they are all major categories of costs associated with quality.

Question 10

10) All of the following costs are likely to decrease as a result of better quality EXCEPT:
A) customer dissatisfaction costs.
B) inspection costs.
C) scrap costs.
D) warranty and service costs.
E) maintenance costs.

Answer 10

E) maintenance costs.

Question 11

11) "The employee cannot produce products that on average exceed the quality of what the process is capable of producing" expresses a basic philosophy in the writings of:
A) Vilfredo Pareto.
B) Armand Feigenbaum.
C) Joseph M. Juran.
D) W. Edwards Deming.
E) Philip B. Crosby.

Answer 11

D) W. Edwards Deming.

Question 12

12) Stakeholders who are affected by the production and marketing of poor quality products include:
A) stockholders, employees, and customers.
B) suppliers and creditors, but not distributors.
C) only stockholders, creditors, and owners.
D) suppliers and distributors, but not customers.
E) only stockholders and organizational executives and managers.

Answer 12

A) stockholders, employees, and customers.

Question 13

13) To become ISO 9000 certified, organizations must:
A) document quality procedures.
B) have an onsite assessment.
C) have an ongoing series of audits of their products or service.
D) all of the above
E) none of the above

Answer 13

D) all of the above

Question 14

14) Quality is mostly the business of the quality control staff, not ordinary employees.

Answer 14

True

Question 15

15) TQM is important because each of the ten decisions made by operations managers deals with some aspect of identifying and meeting customer expectations.

Answer 15

True

Question 16

16) The phrase Six Sigma has two meanings. One is statistical, referring to an extremely high process, product, or service capability; the other is a comprehensive system for achieving and sustaining business success

Answer 16

True

Question 17

17) The philosophy of zero defects is:
A) the result of Deming’s research.
B) unrealistic.
C) prohibitively costly.
D) an ultimate goal; in practice, 1 to 2% defects is acceptable.
E) consistent with the commitment to continuous improvement.

Answer 17

E) consistent with the commitment to continuous improvement.

Question 18

18) PDCA, developed by Shewhart, stands for which of the following?
A) Plan-Do-Check-Act
B) Plan-Develop-Check-Accept
C) Problem-Develop Solution-Check-Act
D) Problem-Do-Continue-Act
E) Prepare-Develop-Create-Assess

Answer 18

A) Plan-Do-Check-Act

Question 19

19) Total quality management emphasizes:
A) the responsibility of the quality control staff to identify and solve all quality-related problems.
B) a commitment to quality that goes beyond internal company issues to suppliers and customers.
C) a system where strong managers are the only decision makers.
D) a process where mostly statisticians get involved.
E) ISO 14000 certification.

Answer 19

B) a commitment to quality that goes beyond internal company issues to suppliers and customers.

Question 20

20) Techniques for building employee empowerment include:
A) building communication networks that include employees.
B) developing open, supportive supervisors.
C) moving responsibility from both managers and staff to production employees.
D) building high-morale organizations.
E) All of the above are techniques for employee empowerment.

Answer 20

E) All of the above are techniques for employee empowerment.

Question 21

21) 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.

Answer 21

C) benchmarking

Question 22

22) Pareto charts are a graphical way of identifying the few critical items from the many less important ones.

Answer 22

True

Question 23

23) The “four Ms” of cause-and-effect diagrams are:
A) material, machinery/equipment, manpower, and methods.
B) material, methods, men, and mental attitude.
C) named after four quality experts.
D) material, management, manpower, and motivation.
E) mentality, motivation, management, and manpower

Answer 23

A) material, machinery/equipment, manpower, and methods

Question 24

24) Among the tools of TQM, the tool ordinarily used to aid in understanding the sequence of events through which a product travels is a:
A) Pareto chart.
B) flowchart.
C) check sheet.
D) Taguchi map.
E) poka-yoke.

Answer 24

B) flowchart.

Question 25

25) A fishbone chart is also known as a:
A) cause-and-effect diagram.
B) poka-yoke diagram.
C) Kaizen diagram.
D) Kanban diagram.
E) Taguchi diagram

Answer 25

A) cause-and-effect diagram.

Question 26

26) The goal of inspection is to:
A) detect a bad process immediately.
B) add value to a product or service.
C) correct deficiencies in products.
D) correct system deficiencies.
E) all of the above

Answer 26

A) detect a bad process immediately.

Question 27

27) A good description of source inspection is inspecting:
A) materials upon delivery by the supplier.
B) the goods at the production facility before they reach the customer.
C) the design specifications.
D) goods at the supplier’s plant.
E) one’s own work.

Answer 27

E) one’s own work.

Question 28

28) A recent consumer survey conducted for a car dealership indicates that, when buying a car, customers are primarily concerned with the salesperson’s ability to explain the car’s features, the salesperson’s friendliness, and the dealer’s honesty. The dealership should be ESPECIALLY concerned with which determinants of service quality?
A) communication, courtesy, and credibility
B) competence, courtesy, and security
C) competence, responsiveness, and reliability
D) communication, responsiveness, and reliability
E) understanding/knowing customer, responsiveness, and reliability

Answer 28

A) communication, courtesy, and credibility

Question 29

29) Which of the determinants of service quality involves having the customer's best interests at heart?
A) access
B) courtesy
C) credibility
D) responsiveness
E) tangibles

Answer 29

C) credibility

Question 30

30) Which of the determinants of service quality involves performing the service right the first time?
A) access
B) courtesy
C) credibility
D) reliability
E) responsiveness

Answer 30

D) reliability

Question 31

31) If a sample of items is taken and the mean of the sample is outside the control limits, the process is:
A) likely out of control and the cause should be investigated.
B) in control, but not capable of producing within the established control limits.
C) within the established control limits with only natural causes of variation.
D) monitored closely to see if the next sample mean will also fall outside the control limits.
E) producing high quality products.

Answer 31

A) likely out of control and the cause should be investigated

Question 32

32) The purpose of an x-bar chart is to determine whether there has been a:
A) change in the dispersion of the process output.
B) change in the percent defective in a sample.
C) change in the central tendency of the process output.
D) change in the number of defects in a sample.
E) change in the AOQ.

Answer 32

C) change in the central tendency of the process output.

Question 33

33) An x-bar control chart was examined and no data points fell outside of the limits. Can this process be considered in control?
A) Not yet, there could be a pattern to the points.
B) Not yet, the R-chart must be checked.
C) Not yet, the number of samples must be known.
D) Yes.
E) Both A and B

Answer 33

E) Both A and B

Question 34

34) What is the statistical process chart used to control the number of defects per unit of output?
A) x-bar chart
B) R-chart
C) p-chart
D) AOQ chart
E) c-chart

Answer 34

E) c-chart

Question 35

35) A firm’s process strategy is its approach to transforming resources into goods and services.

Answer 35

True

Question 36

36) The assembly line is a classic example of a repetitive process.

Answer 36

True

Question 37

37) Three of the four types of processes are:
A) goods, services, and hybrids.
B) manual, automated, and service.
C) process focus, repetitive focus, and product focus.
D) modular, continuous, and technological.
E) input, transformation, and output.

Answer 37

C) process focus, repetitive focus, and product focus.

Question 38

38) Which of the following industries is most likely to have low equipment utilization?
A) auto manufacturing
B) commercial baking
C) television manufacturing
D) steel manufacturing
E) restaurants

Answer 38

E) restaurants

Question 39

39) A product-focused process is commonly used to produce:
A) high-volume, high-variety products.
B) low-volume, high-variety products.
C) high-volume, low-variety products.
D) low-variety products at either high- or low-volume.
E) high-volume products of either high- or low-variety

Answer 39

C) high-volume, low-variety products.

Question 40

40) An assembly line is an example of a:
A) product-focused process.
B) process-focused process.
C) repetitive process.
D) line process.
E) specialized process.

Answer 40

C) repetitive process.

Question 41

41) Which of the following phrases best describes product focus?
A) low volume, high variety
B) Finished goods are usually made to order.
C) Processes are designed to perform a wide variety of activities.
D) high fixed costs, low variable costs
E) high inventory

Answer 41

D) high fixed costs, low variable costs

Question 42

42) Which of the following phrases best describes process focus?
A) low volume, high variety
B) Finished goods are usually made to a forecast and stored.
C) Operators are less broadly skilled.
D) high fixed costs, low variable costs
E) low inventory

Answer 42

A) low volume, high variety

Question 43

43) Which of the following characteristics best describes repetitive focus?
A) It uses sophisticated scheduling to accommodate custom orders.
B) Its output is a standardized product produced from modules.
C) Operators are broadly skilled.
D) It is widely used for the manufacture of steel.
E) low volume, high variety

Answer 43

B) Its output is a standardized product produced from modules.

Question 44

44) Which of the following is true regarding the concept of flexibility?
A) It is the ability to respond with little penalty in time, cost, or customer value.
B) It may be accomplished with digitally controlled equipment.
C) It may involve modular or movable equipment.
D) All of the above are true.
E) None of the above is true.

Answer 44

D) All of the above are true.

Question 45

45) Service blueprinting is a process analysis technique that focuses on the customer and the provider’s interaction with the customer.

Answer 45

True

Question 46

46) One fundamental difference between a process chart and a flowchart is that:
A) the process chart adds a time dimension to the horizontal axis, while a flowchart is not time-oriented.
B) the process chart includes the supply chain, while the flowchart stays within an organization.
C) the process chart is more like a table, while the flowchart is more like a schematic diagram.
D) the process chart focuses on the customer and on the provider’s interaction with the customer, while the flowchart does not deal directly with the customer.
E) None of these is true, because a process chart and a flowchart are the same thing.

Answer 46

C) the process chart is more like a table, while the flowchart is more like a schematic diagram.

Question 47

47) What is a drawing of the movement of material, product, or people?
A) flowchart
B) process chart
C) service blueprint
D) process map
E) vision system

Answer 47

A) flowchart

Question 48

48) Professional services typically require low levels of labor intensity.

Answer 48

False

Question 49

49) The use of information technology to monitor and control a physical process is known as:
A) process control.
B) computer-aided design.
C) information numeric control.
D) numeric control.
E) IT oversight.

Answer 49

A) process control.

Question 50

50) Advances in technology:
A) have impacted the manufacturing sector only.
B) have had only a limited impact on services.
C) have failed to change the level of customer interaction with an organization.
D) have had a dramatic impact on customer interaction with services and with products.
E) have dramatically changed health care, but have not changed retailing.

Answer 50

D) have had a dramatic impact on customer interaction with services and with products.

Question 51

51) Process redesign:
A) is the fundamental rethinking of business processes.
B) is sometimes called process reengineering.
C) tries to bring about dramatic improvements in performance.
D) often focuses on activities that cross functional lines.
E) all of the above

Answer 51

E) all of the above

Question 52

52) Design capacity is the theoretical maximum output of a system in a given period under ideal conditions.

Answer 52

True

Question 53

53) Effective capacity is the:
A) maximum output of a system in a given period.
B) capacity a firm expects to achieve given the current operating constraints.
C) average output that can be achieved under ideal conditions.
D) minimum usable capacity of a particular facility.
E) sum of all of the organization’s inputs.

Answer 53

B) capacity a firm expects to achieve given the current operating constraints.

Question 54

54) The theory of constraints is a body of knowledge that deals with anything that limits an organization’s ability to achieve its goals.

Answer 54

False

Question 55

55) Which of the following techniques is NOT a technique for dealing with a bottleneck?
A) Schedule throughput to match the capacity of the bottleneck.
B) Increase the capacity of the constraint.
C) Have cross-trained employees available to keep the constraint at full operation.
D) Develop alternate routings.
E) All are techniques for dealing with bottlenecks

Answer 55

E) All are techniques for dealing with bottlenecks

Question 56

56) Fixed costs are those costs that continue even if no units are produced.

Answer 56

True

Question 57

57) Break-even is the number of units at which:
A) total revenue equals price times quantity.
B) total revenue equals total variable cost.
C) total revenue equals total fixed cost.
D) total profit equals total cost.
E) total revenue equals total cost.

Answer 57

E) total revenue equals total cost.

Question 58

58) Lag and straddle strategies for increasing capacity have what main advantage over a leading strategy?
A) They are cheaper.
B) They are more accurate.
C) They delay capital expenditure.
D) They increase demand.
E) All of the above are advantages.

Answer 58

C) They delay capital expenditure.

Question 59

59) What is a common method used to increase capacity with a lag strategy?
A) overtime
B) subcontracting
C) new facilities
D) new machinery
E) A and B

Answer 59

E) A and B

Question 60

60) The net present value of $10,000 to be received in exactly three years is considerably greater than $10,000.

Answer 60

False

Question 61

61) FedEx chose Memphis, Tennessee, as its U.S. hub because:
A) the city is in the center of the United States, geographically.
B) the airport has relatively few hours of bad weather closures.
C) it needed a means to reach cities to which it did not have direct flights.
D) the firm believed that a hub system was superior to traditional city-to-city flight scheduling.
E) All of the above are true.

Answer 61

E) All of the above are true.

Question 62

62) Industrial location analysis typically attempts to:
A) minimize costs.
B) maximize sales.
C) focus more on human resources.
D) avoid countries with strict environmental regulations.
E) ignore exchange rates and currency risks

Answer 62

A) minimize costs.

Question 63

63) A location decision for a traditional department store (e.g., Macy's) would tend to have what type of focus?
A) cost focus
B) labor focus
C) revenue focus
D) environmental focus
E) education focus

Answer 63

C) revenue focus

Question 64

64) Lists have been developed that rank countries on issues such as “competitiveness” and “corruption.”

Answer 64

True

Question 65

65) An example of an intangible cost, as it relates to location decisions, is the quality of education.

Answer 65

True

Question 66

66) Why is Northern Mexico used as a cluster for electronics firms?
A) high traffic flows
B) venture capitalists located nearby
C) natural resources of land and climate
D) NAFTA
E) high per capita GDP

Answer 66

D) NAFTA

Question 67

67) Among the following choices, an operations manager might best evaluate political risk of a country by looking at which type of country ranking?
A) based on competitiveness
B) based on cost of doing business
C) based on corruption
D) based on magnitude of government social programs
E) based on average duration between presidential/prime minister elections

Answer 67

C) based on corruption

Question 68

68) Which of the following workers is the most productive?
A) $50 wages, 10 parts produced
B) $10 wages, 1 part produced
C) $30 wages, 5 parts produced
D) $100 wages, 21 parts produced
E) $500 wages, 100 parts produced

Answer 68

D) $100 wages, 21 parts produced

Question 69

69) The reason fast food restaurants often are found in close proximity to each other is:
A) they enjoy competition.
B) location clustering near high traffic flows.
C) low cost.
D) availability of skilled labor.
E) all of the above.

Answer 69

B) location clustering near high traffic flows.

Question 70

70) Governmental attitudes toward issues such as private property, intellectual property, zoning, pollution, and employment stability may change over time. What is the term associated with this phenomenon?
A) bureaucratic risk
B) political risk
C) legislative risk
D) judicial risk
E) democratic risk

Answer 70

B) political risk

Question 71

71) Globalization of the location decision is the result of all EXCEPT which of the following?
A) market economics
B) higher quality of labor overseas
C) ease of capital flow between countries
D) high differences in labor costs
E) more rapid, reliable travel and shipping

Answer 71

B) higher quality of labor overseas

Question 72

74) Intangible costs include which of the following?
A) quality of prospective employees
B) quality of education
C) availability of public transportation
D) all of the above
E) none of the above

Answer 72

D) all of the above

Question 73

75) The graphic approach to locational cost-volume analysis displays the range of volume over which each location is preferable

Answer 73

True

Question 74

76) The factor-rating method can consider both tangible and intangible costs.

Answer 74

True

Question 75

77) The center-of-gravity method is used primarily to determine what type of locations?
A) service locations
B) manufacturing locations
C) distribution center locations
D) supplier locations
E) call center locations

Answer 75

C) distribution center locations

Question 76

78) Production and transportation costs are always considered in which of the following location decision methods?
A) traffic counts
B) transportation model
C) purchasing power
D) proximity of markets
E) clustering

Answer 76

B) transportation model

Question 77

79) Service firms choose locations based, in part, on the revenue potential of a site.

Answer 77

True

Question 78

80) Which of the following is NOT among the eight determinants of revenue and volume for a service firm?
A) quality of management
B) shipment cost of finished goods
C) purchasing power of the customer-drawing area
D) uniqueness of the firm’s and the competitors’ locations
E) competition in the area

Answer 78

B) shipment cost of finished goods

Question 79

81) Which of the following is among the eight determinants of revenue and volume for a service firm?
A) uniqueness of the firm’s and the competitors’ locations
B) quality of the competition
C) quality of management
D) purchasing power of the customer-drawing area
E) all of the above

Answer 79

E) all of the above

Question 80

82) Which of the following is most likely to affect the location decision of a service firm rather than a manufacturing firm?
A) energy and utility costs
B) attitude toward unions
C) parking and access
D) cost of shipping finished goods
E) labor costs

Answer 80

C) parking and access

Question 81

83) A jewelry store is more likely than a jewelry manufacturer to consider \_\_\_\_\_\_\_\_ in making a location decision.
A) transportation costs
B) cost of raw materials
C) appearance/image of the location
D) quality of life
E) taxes

Answer 81

C) appearance/image of the location

Question 82

84) Which of the following is most likely to affect the location strategy of a manufacturing firm?
A) appearance/image of the area
B) utility costs
C) purchasing power of drawing area
D) competition in the area
E) parking availability

Answer 82

B) utility costs

Question 83

85) What describes a system that stores and displays information that can be linked to a geographic location?
A) AIS
B) LOC
C) GLOC
D) LIS
E) GIS

Answer 83

E) GIS

Question 84

86) The objective of layout strategy is to develop an effective and efficient layout that will meet the firm’s competitive requirements.

Answer 84

True

Question 85

87) The objective of layout strategy is to:
A) minimize cost.
B) develop an effective and efficient layout that will meet the firm’s competitive requirements.
C) maximize flexibility.
D) minimize space used.
E) maximize worker satisfaction.

Answer 85

B) develop an effective and efficient layout that will meet the firm’s competitive requirements.

Question 86

88) A hospital's layout most closely resembles which of the following?
A) product oriented
B) work cell
C) job shop
D) project
E) retail

Answer 86

C) job shop

Question 87

89) What layout strategy deals with low-volume, high-variety production?
A) fixed-position layout
B) retail layout
C) warehouse layout
D) office layout
E) process-oriented layout

Answer 87

E) process-oriented layout

Question 88

90) "A special arrangement of machinery and equipment to focus on production of a single product or group of related products" describes what layout type?
A) fixed-position layout
B) intermittent production
C) job shop
D) work cell
E) warehouse layout

Answer 88

D) work cell

Question 89

91) A good layout requires determining:
A) material handling equipment.
B) capacity and space requirements.
C) environment and aesthetics.
D) cost of moving between various work areas.
E) all of the above

Answer 89

E) all of the above

Question 90

92) Which of the following constitutes a major trend influencing office layouts?
A) downsizing
B) globalization
C) environmental issues
D) off-site employees
E) health issues

Answer 90

D) off-site employees

Question 91

93) Workspace can inspire informal and productive encounters if it balances what three physical and social aspects?
A) proximity, privacy, and persuasion
B) privacy, persuasion, and permission
C) proximity, privacy, and permission
D) proximity, persuasion, and permission
E) proximity, persuasion, and passion

Answer 91

C) proximity, privacy, and permission

Question 92

94) The main goal of retail layout is:
A) minimizing material handling cost.
B) minimizing customer confusion regarding location of items.
C) minimizing storage costs.
D) minimizing space required.
E) maximizing profitability per square foot of floor space.

Answer 92

E) maximizing profitability per square foot of floor space.

Question 93

95) Retail layouts are based on the notion that:
A) handling costs should be minimized.
B) storage costs should be minimized.
C) average customer visit duration should be maximized.
D) space used should be minimized.
E) maximizing customer exposure rate maximizes sales and profit.

Answer 93

E) maximizing customer exposure rate maximizes sales and profit.

Question 94

96) Slotting fees:
A) are charged by retailers to stock a product.
B) can amount to as much as $25,000.
C) are not a part of Walmart’s business practices.
D) can reduce the ability of small businesses to introduce new products.
E) all of the above

Answer 94

E) all of the above

Question 95

97) Which of the following is NOT a retail layout practice?
A) Locate the high-draw items around the periphery of the store.
B) Distribute power items throughout the store.
C) Use end-aisle locations to maximize product exposure.
D) Use prominent locations for high-impulse and high-margin items.
E) All of the above are retail layout practices.

Answer 95

E) All of the above are retail layout practices.

Question 96

98) What is the primary reason why retailers tend to locate high-draw items around the periphery of the store?
A) More shelf space for those popular items is available around the periphery.
B) There will be less congestion of customers than there would be in the middle.
C) This arrangement will help to maximize customer exposure to other items in the store.
D) It is easier to put large advertisement signs on the outside walls right next to the items.
E) This arrangement allows customers to travel through the store as quickly as possible.

Answer 96

C) This arrangement will help to maximize customer exposure to other items in the store.

Question 97

99) Ambient conditions; spatial layout and functionality; and signs, symbols, and artifacts are all:
A) indicators of imbalance on an assembly line.
B) indicators that cross-docking has been successful.
C) elements of customization in a warehouse layout.
D) elements of servicescapes.
E) elements of successful office layouts.

Answer 97

D) elements of servicescapes.

Question 98

100) Balancing low-cost storage with low-cost material handling is important in which of the following?
A) fixed-position layout
B) process-oriented layout
C) office layout
D) repetitive and product-oriented layout
E) warehouse layout

Answer 98

E) warehouse layout

Question 99

101) Which of the following reduces product handling, inventory, and facility costs, but requires both (1) tight scheduling and (2) accurate inbound product information?
A) phantom-docking
B) random stocking
C) ASRS
D) customizing
E) cross-docking

Answer 99

E) cross-docking

Question 100

102) The major problem addressed by the warehouse layout strategy is:
A) minimizing difficulties caused by material flow varying with each product.
B) requiring frequent close contact between forklift drivers and item pickers.
C) addressing trade-offs between space and material handling.
D) balancing product flow from one work station to the next.
E) locating the docks near a convenient access point to the closest highway.

Answer 100

C) addressing trade-offs between space and material handling.

Question 101

103) ASRS stands for which of the following?
A) automated storage and retrieval system
B) automated storage and recovery system
C) automated scan and recognize system
D) automated scan and retail system
E) automated scan and retrieval system

Answer 101

A) automated storage and retrieval system

Question 102

104) For which of the following operations would a fixed-position layout be MOST appropriate?
A) assembling automobiles
B) producing TV sets
C) constructing a highway tunnel
D) refining of crude oil
E) running an insurance agency

Answer 102

C) constructing a highway tunnel

Question 103

105) Because problems with fixed-position layouts are so difficult to solve well onsite, operations managers:
A) virtually never employ this layout strategy.
B) utilize this approach only for construction projects such as bridges and office towers.
C) increase the size of the site.
D) often complete as much of the project as possible offsite.
E) utilize this layout only for defense contractors.

Answer 103

D) often complete as much of the project as possible offsite.

Question 104

106) Which type of layout features departments or other functional groupings in which similar activities are performed?
A) process-oriented
B) product-oriented
C) fixed-position
D) mass production
E) unit production

Answer 104

A) process-oriented

Question 105

107) One of the major advantages of process-oriented layouts is:
A) high equipment utilization.
B) large work-in-process inventories.
C) flexibility in equipment and labor assignment.
D) smooth and continuous flow of work.
E) small work-in-process inventories.

Answer 105

C) flexibility in equipment and labor assignment.

Question 106

108) 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) how to design a continuous flow process.
C) the provision of low-cost storage with low-cost material handling.
D) minimizing difficulties caused by material flow varying with each product.
E) balancing product flow from one work station to the next.

Answer 106

D) minimizing difficulties caused by material flow varying with each product.

Question 107

109) 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 that can be performed by an individual machine.
D) minimize the level of operator skill necessary.
E) maximize job specialization.

Answer 107

B) minimize the material handling costs.

Question 108

110) The work cell improves layouts by reducing both floor space and direct labor cost.

Answer 108

True

Question 109

111) If the schedule calls for the production of 120 units per day and 480 minutes of production time are available per day, the cycle time would be 4 minutes.

Answer 109

True

Question 110

112) One drawback of a product-oriented layout is that work stoppage at any one point ties up the whole operation.

Answer 110

True

Question 111

113) Cycle time is the maximum time that the product is allowed at each workstation.

Answer 111

True

Question 112

114) A product-oriented layout would be MOST appropriate for which one of the following businesses?
A) fast food
B) steel making
C) insurance sales
D) clothing alterations
E) a grocery store

Answer 112

B) steel making

Question 113

115) 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 workloads among workstations.

Answer 113

E) minimizing the imbalance in the workloads among workstations.

Question 114

116) Which of the following is a disadvantage of product-oriented layout?
A) There is a lack of flexibility necessary for handling a variety of products.
B) High volume is required because of the large investment needed to establish the process.
C) Work stoppage at any one point can tie up the whole operation.
D) There is a lack of flexibility necessary for handling a variety of production rates.
E) All of the above are disadvantages of product-oriented layouts.

Answer 114

E) All of the above are disadvantages of product-oriented layouts.

Question 115

117) In a product-oriented layout, what is the process of deciding how to assign tasks to workstations?
A) station balancing
B) process balancing
C) task allocation
D) assembly-line balancing
E) work allocation

Answer 115

D) assembly-line balancing

Question 116

118) If a layout problem is solved by use of heuristics, this means that:
A) there is no other way to solve the problem.
B) no computer software is available.
C) the problem has only a few alternatives to evaluate.
D) no optimum solution exists.
E) a satisfactory, but not necessarily optimal, solution is acceptable.

Answer 116

E) a satisfactory, but not necessarily optimal, solution is acceptable.

Question 117

119) The objective of a human resource strategy is to manage labor and design jobs so people are effectively and efficiently utilized.

Answer 117

True

Question 118

120) Technology, location, and layout decisions are all possible constraints on human resource strategy.

Answer 118

True

Question 119

121) Most pit crew members have background experience in what area?
A) mechanical engineering
B) athletics
C) car mechanics
D) automobile race driving
E) No specific area—crew members come from all sorts of backgrounds

Answer 119

B) athletics

Question 120

122) Which of the following best describes mutual commitment in an organization?
A) an instance in which management is committed to the employees and the employees are committed to management
B) both management and the employees are committed to the same objective
C) both management and the employees are committed, but to different objectives
D) management obtains the commitment of the employees to a stated objective
E) both management and the employees can rely on each other

Answer 120

B) both management and the employees are committed to the same objective

Question 121

123) Mutual trust is:
A) when employees have gained the trust of management.
B) reflected in reasonable, documented employment policies that are honestly and equitably implemented to the satisfaction of both management and employee.
C) when management has gained the trust of the employees.
D) when management recognizes that the employees are competent, motivated people both able and willing to perform at the level required to produce a quality product.
E) when management and the employees both agree on common objectives.

Answer 121

B) reflected in reasonable, documented employment policies that are honestly and equitably implemented to the satisfaction of both management and employee.

Question 122

124) Labor planning determines employment stability.

Answer 122

True

Question 123

125) Maintaining a stable workforce generally results in the firm paying higher wages than a firm that varies workforce level with demand.

Answer 123

False

Question 124

126) Flextime is a system that allows employees, within limits, to determine their own work schedules

Answer 124

True

Question 125

127) The two most basic policies associated with employment stability are:
A) job enrichment and job enlargement.
B) employment for life and guaranteed minimum wage.
C) follow demand exactly and hold employment constant.
D) incentive plans and piece-rate plans.
E) full-time and part-time.

Answer 125

C) follow demand exactly and hold employment constant.

Question 126

128) A manufacturing plant allows its engineers to come in at 7 A.M. plus or minus an hour but still requires them to work 8-hour days. Which of the following scheduling techniques is the firm employing?
A) flextime
B) constant employment
C) part-time status
D) flexible workweek
E) compressed workweek

Answer 126

A) flextime

Question 127

129) Hackman and Oldham’s five desirable characteristics of job design include job significance and autonomy.

Answer 127

True

Question 128

130) Which of the following terms implies an increase in responsibility and control in the vertical direction?
A) job rotation
B) job enrichment
C) job re-design
D) job enlargement
E) job satisfaction

Answer 128

B) job enrichment

Question 129

131) 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.

Answer 129

E) enriched jobs involve vertical expansion, while enlarged jobs involve horizontal expansion.

Question 130

132) When a worker obtains clear and timely information about his/her performance, his/her job includes which of the following characteristics?
A) feedback
B) skill variety
C) job identity
D) job significance
E) autonomy

Answer 130

A) feedback

Question 131

133) The physical environment in which employees work may affect the quality of work life, but it does not affect their performance and safety.

Answer 131

False

Question 132

134) One of the elements of ergonomics is
A) allocating work time based on economic studies.
B) the cost justification of technology.
C) designing tools and machines that facilitate human work.
D) assembly line balancing.
E) the establishment of time standards.

Answer 132

C) designing tools and machines that facilitate human work.

Question 133

135) Which of the following is not analyzed using methods techniques?
A) movement of capital
B) body movement
C) movement of individuals
D) movement of material
E) crew activity

Answer 133

A) movement of capital

Question 134

136) Flow diagrams are used to analyze:
A) movement of people or material.
B) utilization of an operator and machine.
C) body movements.
D) time taken by various activities.
E) unnecessary micro-motions.

Answer 134

A) movement of people or material.

Question 135

137) The visual workplace:
A) uses low-cost visual devices to share information.
B) is an effective means of rapid communication in a dynamic workplace.
C) replaces difficult-to-understand paperwork.
D) eliminates non-value-added activities by making problems and standards visual.
E) All of the above describe the visual workplace.

Answer 135

E) All of the above describe the visual workplace.

Question 136

138) Which of the following is a visual signal at a machine that notifies support personnel about the machine's status?
A) Andon
B) Endon
C) Indon
D) Ondon
E) Undon

Answer 136

A) Andon

Question 137

139) Two uses of labor standards are to determine the labor content of items produced and to determine staffing needs.

Answer 137

True

Question 138

140) One use of labor standards is to determine what constitutes a fair day’s work.

Answer 138

True

Question 139

141) A time-study procedure involves timing a sample of a worker’s performance and using it as a basis for setting a standard time.

Answer 139

True

Question 140

142) Labor standards are defined as the:
A) preset activities required to perform a job.
B) amount of space required by a specific 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.

Answer 140

E) amount of time required to perform a job or part of a job.

Question 141

143) Labor standards can help to determine which of the following?
A) labor content of a product
B) staffing needs
C) incentive plans
D) efficiency
E) all of the above

Answer 141

E) all of the above

Question 142

144) The smaller the percentage established for allowances:
A) the closer is normal time to standard time.
B) the closer is average observed time to normal time.
C) the larger is the performance rating factor.
D) the larger is the required sample size.
E) the larger is the number of observations in the work sampling

Answer 142

A) the closer is normal time to standard time.

Question 143

145) Therbligs are:
A) the smallest unit of time used in methods time measurement exercises.
B) the largest unit of time used in methods time measurement exercises.
C) basic physical elements of motion as used in methods time measurement exercises.
D) the full range of motions required to complete a job as used in methods time measurement exercises.
E) the smallest amount of time required to complete a job.

Answer 143

C) basic physical elements of motion as used in methods time measurement exercises.

Question 144

146) The tally sheet data from a work sampling study provides information regarding:
A) the number of wasted motions.
B) the level of difficulty in a motion.
C) the percent of time spent on various tasks.
D) the quality of the work environment.
E) the number of micro-motions involved

Answer 144

C) the percent of time spent on various tasks.

Question 145

147) An advantage of work sampling is that:
A) no observation is required.
B) it involves study of the equipment only.
C) a performance rating is necessary.
D) the time spent observing the employee is relatively short.
E) it is more effective than time studies when task times are short.

Answer 145

D) the time spent observing the employee is relatively short.

Question 146

148) A disadvantage of work sampling is that:
A) it tends to be less accurate, particularly when task times are short.
B) it observes several workers simultaneously.
C) it is more expensive than time-study methods.
D) it is more intrusive than time-study methods, and therefore generates more complaints.
E) All of the above are disadvantages of work sampling.

Answer 146

A) it tends to be less accurate, particularly when task times are short.

Question 147

149) Ethical work environment decisions by managers may be guided by which of the following?
A) state agencies
B) trade associations
C) insurers
D) employees
E) all of the above

Answer 147

E) all of the above