Operations Management 9Th Edition By Heizer Render Test Bank

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Operations Management 9Th Edition By Heizer Render Test Bank

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WITH ANSWERS
Operations Management 9Th Edition By Heizer Render Test Bank

CHAPTER 5: DESIGN OF GOODS AND SERVICES
TRUE/FALSE
1. Regal Marines attempts to keep in touch with customers and respond to the marketplace are made
impossible because consumer tastes change and maritime engineering improves.
False (Introduction, easy)
2. A product strategy may focus on differentiation, low-cost, or rapid response.
True (Introduction, easy)
3. The goal of the product decision is to develop and implement a product strategy that meets the
needs of the marketplace with a competitive advantage.
True (Introduction, moderate)
4. Political/legal change and economic change are both factors influencing market opportunities for
new products.
True (Goods and services selection, easy)
5. The four phases of the product life cycle are incubation, introduction, growth, and decline.
False (Goods and services selection, moderate)
6. In the maturity stage of the product life cycle, operations managers will be concerned with keeping
sufficient capacity available for the product.
False (Goods and services selection, moderate)
7. Relatively few new product ideas, perhaps only 1 in 250, become successfully marketed products.
True (Goods and services selection, moderate)
8. 3Ms goal is to produce 30% of its profit from products introduced in the last 4 years.
True (Introduction, difficult)
9. Computer-aided design (CAD) refers to the use of specialized computer programs to direct and
control manufacturing equipment.
False (Generating new products, moderate) {AACSB: Use of IT}
10. Virtual reality technology can improve designs less expensively than the use of physical models or
prototypes.
True (Generating new products, moderate) {AACSB: Use of IT}
11. Quality function deployment refers to first, determining what will satisfy the customer, and second,
translating the customers desires into a target design.
True (Product development, moderate)
12. Robust design is a method that ensures that small variation in production or assembly does not
adversely affect the product.
True (Issues for product design, moderate)
88
13. Modular design exists only in tangible products; it makes no sense in services.
False (Issues for product design, moderate)
14. One environmentally friendly approach to product design is to use lighter components.
True (Issues for product design, moderate) {AACSB: Ethical Reasoning}
15. An operations managers most ethical activity is to enhance productivity while delivering desired
goods and services. Unfortunately, this activity is not environmentally sound.
False (Issues for product design, moderate) {AACSB: Ethical Reasoning}
16. Two issuesviewing a product in terms of its impact on the entire economy and considering the
life cycle of a productcombine to increase the likelihood of ethical decisions by managers.
True (Issues for product design, moderate) {AACSB: Ethical Reasoning}
17. Rapidly developing products and moving them to the market is part of time-based competition.
True (Time-based competition, moderate)
18. The enhancement of existing products is an external product development strategy.
False (Time-based competition, easy)
19. The make-or-buy decision distinguishes between what an organization chooses to produce and
what it chooses to purchase from suppliers.
True (Defining the product, moderate)
20. Group technology enables the grouping of parts into families based on similar processing
requirements.
True (Defining the product, easy)
21. A work order is a listing of the components, their description, and the quantity of each required to
make one unit of the product.
False (Documents for production, moderate)
22. An assembly drawing lists the operations necessary to produce the component.
False (Documents for production, moderate)
23. An assembly chart shows an exploded view of the product, usually via a three-dimensional or
isometric drawing.
False (Documents for production, moderate)
24. The customer may participate in the design of, and in the delivery of, services.
True (Service design, moderate)
25. The moment-of-truth is the crucial moment between the service provider and the customer that
exemplifies, enhances, or detracts from the customers expectation.
True (Service design, moderate)
26. The expected value of each course of action in a decision tree is determined by starting at the
beginning of the tree (the left-hand side) and working toward the end of the tree (the right).
False (Application of decision trees to product design, moderate)
89
MULTIPLE CHOICE
27. Which of these statements regarding Regal Marine is true?
a. Product design is a critical decision for the firm.
b. Regal uses a three-dimensional CAD system to shorten product development time.
c. Regal still uses some wooden parts and hand-produces some components.
d. Regals use of CAD has resulted in a superior product.
e. All of the above are true.
e (Global company profile, moderate)
28. Regal Marine
a. no longer builds boats with any wooden parts
b. designs and builds boat hulls by hand
c. treats the product design decision as critical to its success
d. gets its competitive advantage by being the low-cost producer of boats designed by others
e. designs several new boats each year, but contracts other firms for their manufacture
c (Global company profile, moderate)
29. The three major subdivisions of the product decision are
a. selection, definition, and design
b. goods, services, and hybrids
c. strategy, tactics, and operations
d. cost, differentiation, and speed of response
e. legislative, judicial, and executive
a (Goods and services selection, moderate)
30. Which of the following statements is not true?
a. Virtually all of Hondas sales (autos, motorcycles, generators, lawn mowers) are based on its
outstanding engine technology.
b. Intel focuses on microprocessors and chips.
c. Microsoft focuses on PC software.
d. Firms such as 3M establish goals for profitability from new products.
e. Dell Computers provides fast delivery to customers, but, in return, customers may only select
from a limited choice of hardware configurations.
e (Introduction, moderate)
31. Operations managers must be able to anticipate changes in which of the following?
a. product mix
b. product opportunities
c. the products themselves
d. product volume
e. all of the above
e (Goods and services selection, moderate)
90
32. In which stage of the product life cycle should product strategy focus on process modifications?
a. introduction
b. growth
c. maturity
d. decline
e. none of the above
a (Goods and services selection, moderate)
33. Which of the following would likely cause a change in market opportunities based upon levels of
income and wealth?
a. economic change
b. sociological and demographic change
c. technological change
d. political change
e. legal change
a (Goods and services selection, moderate)
34. A products life cycle is divided into four stages, which are
a. introduction, growth, saturation, and maturity
b. introduction, growth, stability, and decline
c. introduction, maturity, saturation, and decline
d. introduction, growth, maturity, and decline
e. none of the above
d (Goods and services selection, easy)
35. When should product strategy focus on forecasting capacity requirements?
a. at the introduction stage of the product life cycle
b. at the growth stage of the product life cycle
c. at the maturity stage of the product life cycle
d. at the decline stage of the product life cycle
e. none of the above
b (Goods and services selection, easy)
36. Which of the following statements regarding product life cycle and profitability is true?
a. Profit is highest in the growth life cycle phase because the product is new and unique.
b. Profit is lowest in the growth stage of the life cycle because costs are so high.
c. Profit is at its greatest in the decline stage of the product life cycle.
d. Breakeven is attained in the growth stage of the product life cycle.
e. Cash flow turns positive in the maturity phase.
c (Goods and services selection, moderate)
37. The analysis tool that helps determine what products to develop, and by what strategy, by listing
products in descending order of their individual dollar contribution to the firm is
a. decision tree analysis
b. Pareto analysis
c. breakeven analysis
d. product-by-value analysis
e. product life cycle analysis
d (Goods and services selection, moderate)
91
38. In which stage of the product life cycle should product strategy focus on improved cost control?
a. introduction
b. growth
c. maturity
d. decline
e. none of the above
c (Goods and services selection, moderate)
39. ______________ is used to rank a companys products to determine which products represent the
best use of the firms resources, or, perhaps, to determine which products are to be eliminated.
a. Value analysis
b. Value engineering
c. Financial analysis
d. Product-by-value analysis
e. Product cost justification
d (Goods and services selection, easy)
40. Which of the following represent an opportunity for generating a new product?
a. understanding the customer
b. demographic change, such as decreasing family size
c. changes in professional standards
d. economic change, such as rising household incomes
e. All of the above are such opportunities.
e (Generating new products, moderate)
41. Which of the following is true regarding value engineering?
a. Value engineering occurs only after the product is selected and designed.
b. Value engineering is the same as value analysis.
c. Value engineering is oriented toward improvement of design.
d. Value engineering occurs during production when it is clear the product is a success.
e. Value engineering can save substantial amounts of product cost, but quality suffers.
c (Product development, moderate)
42. Reducing the complexity of a product and improving a products maintainability for use are
activities of
a. Product Lifecycle Management (PLM)
b. product-by-value-analysis
c. manufacturability and value engineering
d. organizing for product development
e. design for destruction (DFD)
c (Product development, moderate)
92
43. Quality function deployment (QFD)
a. determines what will satisfy the customer
b. translates customer desires into the target design
c. is used early in the design process
d. is used to determine where to deploy quality efforts
e. all of the above
e (Product development, moderate)
44. A graphic technique for defining the relationship between customer desires and product/service is
a. Product Lifecycle Management
b. the House of Quality
c. the moment of truth
d. the assembly drawing
e. the product development team
b (Product development, moderate)
45. Which of the following is true regarding computer-aided design?
a. It is too expensive to use in most manufacturing and design settings.
b. It is an old technology, no longer in significant use.
c. It results in longer development cycles for virtually all products.
d. It is the use of computers to interactively design products and prepare engineering
documentation.
e. All of the above are true.
d (Issues for product design, moderate) {AACSB: Use of IT}
46. Which of the following is true concerning CAD?
a. Accurate information flows to other departments.
b. Most product costs are determined at the design stage.
c. Design options are easier to review before final commitments are made.
d. Virtually all products have their development cycle shortened.
e. All of the above are true.
e (Issues for product design, moderate) {AACSB: Use of IT}
47. What country has become a popular destination for the disposal of electronic waste?
a. Japan
b. Hungary
c. Vietnam
d. China
e. New Zealand
d (Issues for product design, moderate)
48. Black & Deckers hand-powered tools and Hewlett-Packards printer business are examples of
using enhancements and migrations of existing products to build on a what?
a. product template
b. product pulpit
c. product platform
d. product dais
e. product foundation
c (Time-based competition, moderate)
93
49. An operations managers most ethical activity is
a. to enhance productivity while delivering desired goods and services
b. to use less energy
c. to use more recycled ingredients
d. to use less harmful ingredients
e. to follow appropriate OSHA and EPA regulations
a (Issues for product design, moderate) {AACSB: Ethical Reasoning}
50. Value analysis takes place
a. when the product is selected and designed
b. during the initial stages of production when something needs to be done to assure product
success
c. when the product is first conceived
d. during the production process when it is clear the new product is a success
e. when the product cost is very low
d (Issues for product design, moderate)
51. Which of the following makes products that are friendlier to the environment?
a. using less materials
b. more recycled materials
c. using less energy
d. using less harmful ingredients
e. all of the above
e (Issues for product design, moderate) {AACSB: Ethical Reasoning}
52. Products are more environmentally friendly when they are made
a. using cheaper materials
b. using less energy
c. according to OSHA standards
d. where environmental regulations are lax
e. more difficult to disassemble
b (Issues for product design, easy) {AACSB: Ethical Reasoning}
53. An operations managers ethical responsibilities
a. are limited to the production phase of product life cycle
b. are limited to following published laws and regulations
c. extend from design, to production, to final destruction/disposition of a product
d. do not include being efficient with the firms resources
e. need not consider a product designs impact on the entire economy
c (Issues for product design, moderate) {AACSB: Ethical Reasoning}
54. Which of the following is an example of an external product development strategy?
a. new internally developed products
b. enhancements to existing products
c. alliances
d. migrations of existing products
e. All of the above are examples of internal product development strategy.
c (Time-based competition, moderate)
94
55. Which of the following product development strategies has the highest risk?
a. acquiring the developer
b. alliances
c. joint ventures
d. new internally developed products
e. purchasing technology
d (Time-based competition, moderate)
56. An engineering drawing shows the
a. dimensions, tolerances, materials, and finishes of a component
b. dimensions, tolerances, cost, and sales or use volume of a component
c. materials, finishes, machining operations, and dimensions of a component
d. cost, materials, tolerances, and lead-time for a component
e. cost, dimensions, and machining operations for a component
a (Defining the product, moderate)
57. The dimensions, tolerances, materials, and finishes of a component are typically shown on a(n)
a. assembly chart
b. engineering drawing
c. bill of material
d. assembly drawing
e. route sheet
b (Defining the product, moderate)
58. Which of the following does not result from the effective use of group technology?
a. reduced tooling setup time
b. simplified training
c. reduced raw materials and purchases
d. simplified production planning and control
e. improved layout, routing, and machine loading
b (Defining the product, moderate)
59. Which of the following typically shows the components, their description, and the quantity of each
required to make one unit of a product?
a. an engineering drawing
b. an assembly drawing
c. a bill of material
d. an assembly chart
e. a route sheet
c (Documents for production, moderate)
60. Which of the following shows in schematic form how a product is assembled?
a. an engineering drawing
b. an assembly routing
c. an assembly chart
d. a route sheet
e. a process sheet
c (Documents for production, moderate)
95
61. The components, their description, and the quantity of each required to make one unit of a product
are documented on
a. a group technology listing
b. a route sheet
c. a bill of materials
d. an engineering drawing
e. none of the above
c (Documents for production, moderate)
62. A route sheet provides a(n)
a. exploded view of the product
b. instruction to make a given quantity of a particular item
c. schematic showing how the product is assembled
d. sequence of operations necessary to produce the component
e. set of detailed instructions about how to perform a task
d (Documents for production, moderate)
63. Group technology requires that
a. each component be identified by a coding scheme that specifies the type of processing and the
parameters of the processing
b. a specific series of engineering drawings be prepared
c. all bills of material be prepared using the same format
d. engineering change notices be linked to each of the bills of material and engineering notices
e. the final products be standardized
a (Defining the product, moderate)
64. An assembly drawing
a. shows, in schematic form, how the product is assembled
b. shows an exploded view of the product
c. lists the operations, including assembly and inspection, necessary to produce the component
with the material specified in the bill of material
d. provides detailed instructions on how to perform a given task
e. describes the dimensions and finish of each component
b (Documents for production, easy)
65. An assembly chart
a. shows graphically how the product is assembled
b. shows an exploded view of the product
c. lists the operations, including assembly and inspection, necessary to produce the component
with the material specified in the bill of material
d. provides detailed instructions on how to perform a given task
e. describes the dimensions and finish of each component
a (Documents for production, easy)
96
66. A process sheet is a type of
a. assembly drawing
b. assembly chart
c. route sheet
d. work order
e. bill of materials
c (Documents for production, moderate)
67. Which of the following documents lists the operations (including assembly and inspection)
necessary to produce the component with the material specified in the bill of material?
a. an engineering drawing
b. an assembly drawing
c. a route sheet
d. an assembly chart
e. an operations chart
c (Documents for production, moderate)
68. A restaurant kitchen contains a wall poster that shows, for each sandwich on the menu, a sketch of
the ingredients and how they are arranged to make the sandwich. This is an example of a(n)
a. assembly drawing
b. route sheet
c. bill of materials
d. work order
e. virtual technology
a (Documents for production, moderate)
69. The document for production that gives the instruction to make a given quantity of a particular
item, usually to a given schedule, is
a. the work order
b. the route sheet
c. the bill of information
d. the assembly chart
e. the value analysis
a (Documents for production, moderate)
70. Which of the following is not a service design technique used to reduce cost?
a. increasing customer interaction
b. delaying customization
c. automation
d. modularizing the product
e. reducing customer interaction
a (Service design, moderate)
97
71. Which of the following examples involves customer participation in the design of the service?
a. investing in a mutual fund
b. buying a life insurance policy
c. providing the stockbroker with the desired distribution of the portfolio
d. seeing a movie at the theater
e. eating at a fast-food restaurant
c (Service design, moderate) {AACSB: Communication}
72. Modern ATM machines are an automated example of a service design that
a. reduces customer interaction
b. modularizes the service
c. delays service customization
d. has no moment of truth
e. has insufficient quality function deployment
a (Service design, moderate)
73. For a full-time college student, which of the following moments of truth exemplifies the customers
standard expectations?
a. Your advisor made you wait, even though you had an appointment.
b. You had to visit more than once to reach your academic advisor.
c. Your advisor was competent, helpful, and understanding.
d. Your advisor failed to keep her appointment with you.
e. Your advisor offered to work with you after regular work hours.
c (Service design, difficult)
74. Which service design technique(s) would ordinarily not be appropriate for full-service restaurant
meals?
a. modularizing the product
b. customization as late in the process as possible
c. reducing customer interaction
d. the moment of truth
e. All of the above are appropriate.
c (Service design, moderate)
75. Which of the following scenarios illustrates a moment that exceeds the customers expectations?
a. an express mail service that guarantees overnight delivery
b. a flight attendant that responds shortly after being called
c. a hairdresser that cuts your hair at the right length
d. a professor that contacts people in several companies to find you a job
e. a bank that sends you monthly account statements
d (Service design, difficult)
98
76. Which of the following scenarios illustrates a moment that meets the customers expectations?
a. a sales clerk that called you by your name on your second visit to the store
b. an express mail service that guarantees same day delivery
c. a flight attendant that responds shortly after being called
d. a professor that contacts people in several companies to find you a job
e. a sales clerk at the clothing store that asked you to wait for a minute as soon as a wealthylooking
customer entered the store
c (Service design, difficult)
77. The role of decision trees in product design is
a. to rank products in descending order of their dollar contribution to the firm
b. to better understand the customers wants
c. to calculate the expected value of each course of action
d. to calculate the value of quality function deployment
e. to calculate the value of the moment of truth
c (Application of decision trees to product design, easy)
78. Payoffs, alternatives, and expected monetary values are terms associated with
a. virtual reality
b. Product Lifecycle Management
c. Quality Function Deployment
d. decision trees
e. make-or-buy analysis
d (Application of decision trees to product design, easy)
FILL-IN-THE-BLANK
79. Regal Marines use of ___________ has reduced product development time and reduced problems
with tooling and production.
CAD or Computer-aided Design (Global company profile, moderate) {AACSB: Use of IT}
80. In the ______ phase of the product life cycle, the product design has begun to stabilize.
growth (Goods and services selection, moderate)
81. ___________ lists products in descending order of the individual dollar contribution to the firm.
Product-by-value analysis (Goods and service selection, moderate)
82. _____________ is a process for determining customer requirements and translating them into
attributes that each functional area can understand and act upon.
Quality Function Deployment or QFD (Goods and service selection, moderate)
83. The __________ is a part of the quality function deployment process that utilizes a planning matrix
to relate customer wants to how the firm is going to meet those wants.
House of Quality (Goods and service selection, moderate)
84. __________ provides a format allowing the electronic transmittal of three-dimensional data.
Standard for the exchange of product data or STEP (Generating new products, moderate)
{AACSB: Use of IT}
99
85. The use of information technology to control machinery is called _____________.
computer-aided manufacturing or CAM (Generating new products, moderate) {AACSB: Use
of IT}
86. If a design can be produced to requirements even when the production process has unfavorable
conditions, the design is said to be _________.
robust (Issues for product design, moderate)
87. Products or services designed in easily segmented components are known as ___________.
modular designs (Issues for product design, moderate)
88. _____________ reviews successful products for improvement during the production process.
Value analysis (Issues for product design, moderate)
89. Sensitivity to a wide variety of environmental issues in production processes is referred to as
______________.
green manufacturing (Issues for product design, moderate) {AACSB: Ethical Reasoning}
90. To view product design from a systems perspective, managers must view a product in terms of its
impact on ______________.
the entire economy (Issues for product design, easy)
91. Boeings use of epoxy composites and titanium graphite laminate represent the ethical and
environmentally friendly concept of ______________.
use lighter components (Issues for product design, easy) {AACSB: Ethical Reasoning}
92. Rapidly developing products and moving them to the market is referred to as ____________.
time-based competition (Time-based competition, easy)
93. A drawing that shows the dimensions, tolerances, materials, and finishes of a component is a(n)
____________.
engineering drawing (Documents for production, easy)
94. A listing of the components, their description, and the quantity of each required to make one unit of
product is the __________________.
bill of materials (Documents for production, moderate)
95. Black & Deckers hand-powered tools and Hewlett-Packards printer business are examples of
using enhancements and migrations of existing products to build on _______________.
product platforms (Time-based competition, moderate)
96. An exploded view of the product is a(n) ____________.
assembly drawing (Documents for production, moderate)
97. The ________________ is the crucial moment between the service provider and the customer that
exemplifies, enhances, or detracts from the customers expectations.
moment-of-truth (Service design, moderate)
100
98. In analyzing product design decisions, decision trees determine the ___________ of each course of
action.
expected value or EMV (Application of decision trees to product design, moderate)
SHORT ANSWER
99. What is the objective of the product decision?
Develop and implement a product strategy that meets the demands of the marketplace with a
competitive advantage. (Goods and services selection, moderate)
100. What is a product-by-value analysis, and what type of decision does it help managers make?
A product-by-value analysis lists products in descending order of their individual dollar
contribution to the firm, as well as the total annual dollar contribution of the product. It
helps managers evaluate possible strategies for each product. The product-by-value report
focuses managements attention on the strategic direction for each product. (Goods and
services selection, moderate)
101. Identify the factors that influence new product opportunities.
Factors that influence new product opportunities include economic change, sociological and
demographic change, technological change, political change, and other changes brought
about through market practice, professional standards, suppliers, and distributors. (Goods
and services selection, moderate)
102. With respect to the product decision, managers must be able to accept risk and tolerate failure.
Comment on why this is a necessary hazard in making new product decisions, given all the
powerful tools and carefully built systems that support that decision.
The vast majority of new product ideas do not become marketable products, and most
marketable products are failures. Perhaps 500 designs accompany each success. (Goods and
services selection, moderate)
103. Identify the general benefits derived from CAD.
Product quality (better adherence to standards); shorter design time; production cost
reductions (from better design); database availability (for new products); and new range of
capabilities (ease programming of CNC machines). (Generating new products, moderate)
{AACSB: Use of IT}
104. Is it possible for a products life cycle stage to affect its product strategy? In particular, describe
how one product in growth and another in maturity might have different product strategies.
There is no reason for the strategy to be static through the life cycle stages. Organizations
often treat new products differently than older ones, in terms of support for changes,
aggressiveness in pursuit of market, etc. In particular, growth is associated with stabilization
of design, and with ensuring that sufficient capacity exists. Maturity is a time for high-volume
operations and cost control. (Goods and services selection, moderate)
105. Desribe the benefits associated with value engineering.
Benefits include immediate cost reductions; reduced product complexity; additional
standardization of components; improvement of functional aspects of the products; improved
job design and job safety; improved maintainability (serviceability) of the product; and
robust design. (Product development, moderate)
101
106. Provide some examples of recent product changes, i.e. new products that are replacing older ones.
Answers will vary. The list in the text includes: TV to HDTV, radio to satellite radio, coffee
shops to Starbucks lifestyle coffee, traveling circuses to Cirque du Soleil, land lines to cell
phones, cell phone to Blackberry, Walkman to iPod, and mops to Swiffers. (Generating new
products, moderate) {AACSB: Reflective Thinking}
107. What is quality function deployment (QFD)?
QFD refers to determining what will satisfy the customer and translating those customer
desires into the target design. (Product development, easy)
108. Identify the steps involved in building the House of Quality.
Identify customers wants, identify product/service attributes, relate the customers wants to
the product/service hows, conduct an evaluation of competing products, develop
performance specifications for product or service hows, and assign hows to the appropriate
place in the transformation process. (Product development, moderate)
109. Explain the difference between value analysis and value engineering.
Value engineering is concerned with reducing cost and improving function in a
preproduction setting; value analysis, with similar aims, takes place during production, when
the product has shown that it will succeed. Techniques are similar. (Product development and
Issues for product design, moderate)
110. Aggressive new product development requires that organizations build structures internally that
contain what features?
They should have open communication with customers, innovative organizational cultures,
aggressive R&D, strong leadership, formal incentives, and training. (Generating new
products, difficult) {AACSB: Communication}
111. What two issues should be considered in combination in order to enhance the likelihood of ethical
decision in the realm of product design? Why is each important?
The two issues are (1) view product design from a systems perspective, and (2) consider the
life cycle of the product. The first issue causes managers to go beyond what is best or
cheapest for the firm? The second causes managers to address environmental concerns over
the life of the product, not just at time of manufacture. (Issues for product design, moderate)
{AACSB: Ethical Reasoning}
112. Identify the specific guidelines that can help an operations manager achieve environmentally
friendly designs.
Specifically, the following ideas are presented in the text: make products recyclable, use
recycled material, use less harmful ingredients, use lighter components, use less energy, and
use less material. (Issues for product design, moderate) {AACSB: Ethical Reasoning}
113. What are some of the benefits from using environmental teams for product design?
Environmental teams help develop safe and more environmentally sound products, minimize
the waste of raw materials and energy, differentiate products from competition, reduce
environmental liabilities, increase cost-effectiveness of complying with environmental
regulations, and help the organization be recognized as a good corporate citizen. (Issues for
product design, moderate) {AACSB: Ethical Reasoning}
102
114. Discuss the advisability of using modular assemblies in manufacturing. (What are the advantages
and disadvantages?) To what extent can these arguments be utilized in service products?
Modules are easily segmented components; they add flexibility to production and marketing;
allows mix-and-match of components (customization at point of customer contact). Use of
modules usually means fewer parts, less design and tooling expense. Disadvantages include
using a module in a product for which a more specific component would have been better.
Modules exist in services, as in fast-food meals built to customer specification. (Issues for
product design, difficult)
115. What is time-based competition?
Time-based competition is competition that is based on time. It involves rapid development
of products, fast introduction to the marketplace. Often, the first company into production
may have its product adopted as the standard. (Time-based competition, moderate)
116. State the benefits of implementing group technology.
Benefits include improved design; reduced raw materials and purchases; simplified
production planning and control; improved routing and machine loading; reduced tooling
setup time, work-in-process, and production time; and development of work cells. (Defining
the product, moderate)
117. Identify the external product development strategies; describe each in a sentence or two.
The external product development strategies include alliances, joint ventures, and purchase
of technology or expertise by acquiring the developer. Alliances are cooperative agreements
that allow firms to remain independent, but use complementing strengths to pursue strategies
consistent with their individual missions. Joint ventures are combined ownership to pursue
new products or markets. Purchasing technology or expertise is usually accomplished by
acquiring entrepreneurial firms that have already developed the technology that fits the
mission. The issue then becomes fitting the purchased organization, its technology, and its
product line into the buying firm, rather than a product development issue. (Time-based
competition, moderate)
118. How does configuration management manifest itself when you ask for service on your automobile?
Configuration management is used by every automobile manufacturer to track all of the
changes between and during a model year. To be specific about the part that is needed, the
VIN (vehicle identification number) is often used. (Documents for production, moderate)
119. Briefly explain how Product Lifecycle Management (PLM) impacts product design.
PLM is an umbrella of software programs that attempts to bring together many phases of
product design and manufacture. PLM products often start with product design
(CAD/CAM); move on to design for manufacture and assembly (DFMA); and then into
product routing, materials, layout, assembly, maintenance and even environmental issues.
(Documents for production, moderate)
120. Identify the four methods of service design that can reduce costs and enhance the product.
Customizing as late in the process as possible; modularizing the product; identifying the
service parts that lend themselves to automation or reduced customer interaction; and
focusing design on the moment of truth. (Service design, moderate)
103
PROBLEMS
121. JDI, Inc. is trying to decide whether to make-or-buy a part (#J-45FPT). Purchasing the part would
cost them $1.50 each. If they design and produce it themselves, it will result in a per unit cost of
$0.75. However, the design investment would be $50,000. Further, they realize that for this type
of part, there is a 30% chance that the part will need to be redesigned at an additional cost of
$50,000. Regardless of whether they make-or-buy the part, JDI will need 100,000 of these parts.
Using decision trees analysis and EMV, what should JDI do? Show the decision tree.
Since the expected values represent costs, JDI should select the lowest expected value, and
make the part. Its expected monetary value (cost) is $140,000 versus $150,000 for the buy
decision.
(Application of decision trees to product design, moderate) {AACSB: Analytic Skills}
EMV =
.70($125,000)
+ .30($175,000)
= $140,000
EMV =
$150,000
Make
Buy
Success
.70
Failure,
redesign
.30
100,000($1.50) =
$150,000
100,000($0.75) +
$100,000 = $175,000
100,000($0.75) +
$50,000 = $125,000
104
122. Tri-products is trying to decide whether to make-or-buy an accessory item for one of their
products. It is projected that this item will sell for $10 each. If the item is outsourced, there is
virtually no cost other than the $6 per unit that they would pay their supplier. Internally, they have
two choices. Process A requires an investment of $120,000 for design and equipment, but results
in a $4 per unit cost. Process B requires only a $100,000 investment, but its per unit cost is $5.
Regardless of whether the item is subcontracted or produced internally, there is a 50% chance that
they will sell 50,000 units, and a 50% chance that they will sell 100,000 units. Draw the decision
tree appropriate to the alternatives and outcomes stated. Using decision trees and EMV, what is
their best choice?
Process A promises the highest profit with an EMV of $330,000.
(Application of decision trees to product design, moderate) {AACSB: Analytic Skills}
EMV =
.50($480,000)
+ .50($180,000)
= $330,000
Process
A
Process
B
50,000($10-$4)
$120,000 = $180,000
100,000($10-$4)
$120,000 = $480,000
Buy
EMV =
.50($400,000)
+ .50($150,000)
= $275,000
EMV =
.50($400,000)
+ .50($200,000)
= $300,000
Highdemand
.50
Highdemand
.50
Highdemand
.50
Lowdemand
.50
Lowdemand
.50
Lowdemand
.50
100,000($10-$5)
$100,000 = $400,000
50,000($10-$5)
$100,000 = $150,000
100,000($10-$6)
= $400,000
50,000($10-$6)
= $200,000
105
123. A company manufactures specialty pollution-sensing devices for the offshore oil industry. One
particular device has reached maturity, and the company is considering whether to replace it with a
newer model. Technologies have not changed dramatically, so the new device would have similar
functionality to the existing one, but would be smaller and lighter in weight. The firms three
choices are: keep the old model; design a replacement device with internal resources; and purchase
a new design from a firm that is one of its suppliers. The market for these devices will be either
receptive or neutral of the replacement model. The financial estimates are as follows: Keeping
the old design will yield a profit of $6 million dollars. Designing the replacement internally will
yield $10 million if the market is receptive, but a $3 million loss if the market is neutral.
Acquiring the new design from the supplier will profit $4 million under receptive, $1 million
under neutral. The company feels that the market has a 70 percent chance of being receptive
and a 30 percent chance of being neutral. Draw the appropriate decision tree. Calculate expected
value for all courses of action. What action yields the highest expected value?
Stay with current design
Purchase new design
Develop replacement internally
profit $6 million
Profit $10 million
Lose $3 million
Profit $4 milliion
Profit $1 million
Market is receptive
p = 0.70
Market is receptive
p =.0.70
Market is neutral
p = 0.30
Market is neutral
p = 0.30
The three expected monetary values are:
Develop replacement internally: $10,000,000 x .7 -$3,000,000 x .3 = $6.1 million
Purchase new design: $4,000,000 x .7 + $1,000,000 x .3 = $3.1 million
Stay with current design: $6 million
The company should choose the highest value, and develop a replacement product design
with internal resources. (Application of decision trees to product design, moderate) {AACSB:
Analytic Skills}

CHAPTER 15: SHORT-TERM SCHEDULING
TRUE/FALSE
1. Delta uses mathematical short-term scheduling techniques and a high-tech nerve center to manage
the rapid rescheduling necessary to cope with weather delays and similar disruptions.
True (Global company profile, moderate)
2. Short-term scheduling is important to efficiency and to cost reduction, but its impact is not of
strategic importance.
False (The strategic importance of short-term scheduling, moderate)
3. The benefits of effective scheduling include lower cost, faster delivery, and dependable delivery.
True (The strategic importance of short-term scheduling, moderate)
4. In forward scheduling, jobs are scheduled as late as possible within the time allowed by the
customer due dates.
False (Scheduling issues, moderate)
5. One criterion for developing effective schedules is minimizing completion time.
True (Scheduling issues, easy)
6. Scheduling optimization systems used in retail stores typically track customer traffic in 4-hour time
increments.
False (Scheduling services, difficult) {AACSB: Use of IT}
7. Process-focused facilities and repetitive facilities generate forward-looking schedules, but processfocused
facilities do this with JIT and kanban while repetitive facilities generally use MRP.
False (Scheduling issues, moderate)
8. The work center master file contains data such as capacity and efficiency.
True (Scheduling process-focused facilities, moderate)
9. The constant work-in-process (ConWIP) card aids input-output control by limiting the amount of
work in a work center.
True (Loading jobs, easy)
10. A Gantt load chart shows the loading and idle time of several departments, machines, or facilities.
True (Loading jobs, moderate)
11. Gantt charts are useful for scheduling jobs, but not for loading them.
False (Loading jobs, easy)
12. The assignment method provides an optimum, one-to-one assignment of jobs to resources.
True (Loading jobs, easy)
13. Earliest due date is a shop floor dispatching (sequencing) rule that relates the time available to
complete a job to the amount of work left to be completed.
False (Sequencing jobs, moderate)
408
14. The critical ratio sequencing rule prioritizes the jobs based on the importance or value of the
customers who have placed the orders.
False (Sequencing jobs, moderate)
15. Dispatching rules are typically judged by four effectiveness criteria: average completion time,
utilization, average number of jobs in the system, and average job lateness.
True (Sequencing jobs, moderate)
16. Johnsons rule (and its extensions) sequences a set of jobs through a set of operations where the
operations must be performed in a specific order.
True (Sequencing jobs, moderate)
17. Finite capacity scheduling allows virtually instantaneous changes by operators, which is the
techniques primary advantage over rule-based scheduling.
True (Finite capacity scheduling, moderate)
18. The word finite in finite capacity scheduling refers to the use of finite or limited capacity rather
than unlimited capacity.
True (Finite capacity scheduling, moderate)
19. The theory of constraints is fundamental to proper use of the assignment method of loading jobs.
False (Theory of constraints, moderate)
20. The theory of constraints is a body of knowledge that deals with anything that limits an
organizations ability to meet its goals.
True (Theory of constraints, easy)
21. Substantial research has proved that the only successful method of dealing with bottlenecks is to
increase the bottlenecks capacity.
False (Theory of constraints, moderate)
22. The first step in level material use is to combine orders into a few large batches in order to utilize
economies of scale.
False (Scheduling repetitive facilities, easy)
23. In services, the scheduling emphasis is usually on staffing levels, not materials.
True (Scheduling services, easy)
24. Because of the significance of labor in the scheduling of services, behavioral and social issues,
wage and hour law, and union contracts all complicate the scheduling process.
True (Scheduling services, moderate)
25. In manufacturing scheduling, physical inventories of goods can buffer variations in demand, but
service scheduling normally lacks that buffer because services are generally consumed at the same
time they are delivered.
True (Scheduling services, moderate)
409
26. Some firms have developed arrangements to literally swap employees with each other during
their respective peak demand times.
True (Scheduling services, moderate)
MULTIPLE CHOICE
27. Which of the following statements regarding scheduling at Delta Airlines is false?
a. About one flight in twenty is disrupted by weather events.
b. Schedule changes at one airport have a ripple effect that may have impacts in many others.
c. Deltas high-tech computer and communications system is located in Atlanta.
d. Deltas rapid rescheduling uses mathematical scheduling models.
e. Deltas rapid rescheduling promotes air safety and limits traveler inconvenience, but has not
resulted in money savings for Delta.
e (Global company profile, moderate)
28. Which of the following best describes the strategic importance of short-term scheduling?
a. Effective scheduling, through lower costs, faster delivery, and more dependable schedules, can
provide a competitive advantage.
b. Effective scheduling is a tactical tool for increasing demand to meet production.
c. Forward scheduling looks to future demand levels in order to increase customer satisfaction.
d. Aggregate planning is a tactical action, but short-term scheduling is strategic because of its
immense impact on costs.
e. Short-term scheduling matches capacity to demand during the short term, three to eighteen
months into the future.
a (The strategic importance of short-term scheduling, moderate)
29. The three components that can lead to competitive advantage through effective scheduling are
a. aggregate planning, intermediate scheduling, and medium-term planning
b. forward scheduling, real-time scheduling, and backward scheduling
c. the item master file, the routing file, and the work-center master file
d. lower costs, faster delivery, and more dependable schedules
e. Gantt charts, Johnsons rule and the Pareto principle
d (The strategic importance of short-term scheduling, moderate)
30. The sequence of decisions that affect scheduling is
a. short termintermediate termlong term
b. capacity planningaggregate planningmaster scheduleshort-term schedules
c. strategic decisionstactical decisionsoperational decisions
d. forward decisionscurrent decisionsbackward decisions
e. none of the above
b (Scheduling issues, moderate)
31. Forward scheduling is the scheduling of
a. the end items or finished products
b. jobs as soon as the requirements are known
c. the start items or component parts
d. the final operation first beginning with the due date
e. jobs according to their profit contributions
b (Scheduling issues, moderate)
410
32. Short-term schedules are prepared
a. directly from the aggregate plans
b. directly from the capacity plans
c. from inventory records for items that have been used up
d. from master schedules which are derived from aggregate plans
e. from the purchasing plans
d (Scheduling issues, moderate)
33. Which scheduling technique should be employed when due dates are important for a job order?
a. forward scheduling
b. loading
c. dispatching
d. backward scheduling
e. master scheduling
d (Scheduling issues, moderate)
34. Which of the following is not an effectiveness criterion for scheduling?
a. minimizing customer waiting time
b. minimizing completion time
c. minimizing WIP inventory
d. maximizing utilization
e. maximizing flow time
e (Scheduling issues, moderate)
35. The scheduling criterion minimize work-in-process inventory
a. results in the smallest flowtime of all scheduling criteria
b. is especially useful in problems solved with Johnsons rule
c. uses the average number of jobs in the system as the indicator of the level of inventory
d. is identical to the maximize utilization criterion
e. All of the above are true.
c (Scheduling issues, moderate)
36. The four criteria for short-term scheduling
a. are of equal importance
b. include maximize completion time and minimize utilization
c. are applied simultaneously
d. may have different levels of importance, depending on circumstances
e. All of the above are true.
d (Scheduling issues, moderate)
37. Scheduling is rather straightforward in product-focused facilities because
a. kanban automates the scheduling of the assembly line
b. demand is reasonably stable, and capacities, set-up times, and run times are generally known
c. assembly line balancing assures the highest possible production efficiency
d. finite capacity scheduling has made MRP much more realistic
e. All of the above are true.
b (Scheduling issues, moderate)
411
38. Forward scheduling
a. begins with a delivery date, then offsets each operation one at a time, in reverse order
b. is well suited where the supplier is usually able to meet precise delivery dates
c. tends to minimize work-in-process inventory
d. assumes that procurement of material and operations start as soon as requirements are known
e. produces a schedule only if it meets the due date
d (Scheduling issues, moderate)
39. Which file contains important information regarding an items flow through the shop?
a. item master file
b. work center master file
c. control files
d. routing file
e. None of the above provides information regarding an items flow through the shop.
d (Scheduling process-focused facilities, moderate)
40. Which of these is not part of the planning files of a production planning and control system?
a. a progress file
b. a work center master file
c. an item master file
d. a routing file
e. They are all part of the planning files.
a (Scheduling process-focused facilities, moderate)
41. Which of the following files tracks work order progress?
a. work center master files
b. routing files
c. item master files
d. control files
e. None of the above tracks work order progress.
d (Scheduling process-focused facilities, moderate)
42. The production database containing information about each of the components that a firm produces
or purchases is the
a. routing file
b. work center master file
c. control file
d. item master file
e. none of the above
d (Scheduling process-focused facilities, moderate)
43. The short-term scheduling activity called loading
a. assigns dates to specific jobs or operations steps
b. specifies the order in which jobs should be done at each center
c. assigns jobs to work centers
d. assigns workers to jobs
e. assigns workers to machines
c (Loading jobs, easy)
412
44. The assignment method is
a. a method to highlight overloads in a given work center
b. a computerized method of determining appropriate tasks for an operation
c. a form of linear programming for optimally assigning tasks or jobs to resources
d. the same thing as the Gantt schedule chart
e. a method for achieving a balance between forward and backward scheduling
c (Loading jobs, moderate)
45. A scheduling technique used to achieve optimum, one-to-one matching of tasks and resources is
a. the assignment method
b. Johnsons rule
c. the CDS algorithm
d. the appointment method
e. the reservation method
a (Loading jobs, moderate)
46. Which of the following is an aid used to monitor jobs in process?
a. a Gantt load chart
b. the assignment method
c. a Gantt schedule chart
d. Johnsons rule
e. none of the above
c (Loading jobs, moderate)
47. A method of input-output control that uses a system of cards to limit the amount of work at a work
center and also to control lead time and monitor backlog is
a. the assignment method
b. backward scheduling
c. forward scheduling
d. constant work-in-process or ConWIP
e. level material use
d (Loading jobs, easy)
48. If an assignment problem consists of 6 workers and 7 projects,
a. one worker will not get a project assignment
b. one worker will be assigned two projects
c. each worker will contribute work toward the seventh project
d. one project will not get a worker assigned
e. The problem cannot be solved by assignment method.
d (Loading jobs, moderate)
49. If an assignment problem consists of 5 workers and 4 projects,
a. one worker will not get a project assignment
b. one project will be assigned two workers
c. the fifth worker will split time among the four projects
d. one project will not get a worker assigned
e. The problem cannot be solved by assignment method.
a (Loading jobs, moderate)
413
50. Three jobs are to be assigned to three machines. Cost for each job-machine combination appears in
the table below. Perform the first two steps of the assignment method (subtract the smallest number
in each row and subtract the smallest number in each column; then cover with straight lines). At
this point in the problem-solving process
Machine A Machine B Machine C
Job 1 11 14 6
Job 2 8 10 11
Job 3 9 12 7
a. the row for Job 1 contains the values 5, 6, and 0
b. calculations are complete, and the problem is ready for an optimal set of assignments
c. the column for Machine B indicates that it should be retired
d. Job 1 should be performed on Machine B
e. Job 1 should be performed on Machine A
a (Loading jobs, difficult) {AACSB: Analytic Skills}
51. Orders are processed in the sequence in which they arrive if (the) ______ rule sequences the jobs.
a. earliest due date
b. slack time remaining
c. first come, first served
d. critical ratio
e. Johnsons
c (Scheduling jobs, moderate)
52. Which of the following dispatching rules ordinarily gives the best results when the criterion is
lowest time for completion of the full sequence of jobs?
a. shortest processing time (SPT)
b. critical ratio (CR)
c. first in, first out (FIFO)
d. first come, first served (FCFS)
e. longest processing time
a (Scheduling jobs, moderate)
53. Five jobs are waiting to be processed. Their processing times and due dates are given below. Using
the shortest processing time dispatching rule, in which order should the jobs be processed?
Job Processing Time (days) Job due date (days)
A 4 7
B 7 4
C 8 11
D 3 5
E 5 8
a. A, B, C, D, E
b. C, E, A, D, B
c. B, D, A, E, C
d. D, A, E, B, C
e. C, E, A, D, B
d (Scheduling jobs, moderate) {AACSB: Analytic Skills}
414
54. Sequencing (or dispatching)
a. assigns dates to specific jobs or operations steps
b. assigns jobs to work centers
c. specifies the order in which jobs should be done at each center
d. assigns workers to jobs
e. assigns workers to machines
c (Scheduling jobs, moderate)
55. Five jobs are waiting to be processed. Their processing times and due dates are given below. Using
the earliest due date dispatching rule, in which order should the jobs be processed?
Job Processing Time (days) Job due date (days)
A 4 7
B 2 4
C 8 11
D 3 5
E 5 8
a. C, E, A, D, B
b. A, B, C, D, E
c. B, D, A, E, C
d. C, B, A, E, D
e. none of the above
c (Scheduling jobs, moderate) {AACSB: Analytic Skills}
56. Flow time represents the time
a. an order spends waiting for processing at a work center
b. an order spends being processed at a work center
c. an order spends moving from one work center to another
d. to complete an order, including time spent in processing and in waiting
e. none of the above
d (Scheduling jobs, moderate)
57. Which of the following dispatching rules tends to minimize job flow time?
a. FCFS: first come, first served
b. SPT: shortest processing time
c. EDD: earliest due date
d. LPT: longest processing time
e. FCLS: first come, last served
b (Scheduling jobs, moderate)
58. Average completion time for a schedule sequence at a work center is the ratio of
a. total processing time to the number of jobs
b. total flow time to total processing time
c. total flow time to the number of jobs
d. total processing time plus total late time to the number of jobs
e. total flow time plus total late time to the number of jobs
c (Scheduling jobs, moderate)
415
59. Eight jobs have been sequenced at a single work center. Total processing time for the eight jobs is
34 hours and total flow time for the sequence is 85 hours. For this schedule, utilization is ______
and average jobs in the system is ________.
a. 100 percent; 10.625
b. low; .0941
c. 0.400 or 40 percent; 2.5
d. 0.235 or 23.5 percent; 4.25
e. maximized; minimized
c (Sequencing jobs, moderate) {AACSB: Analytic Skills}
60. Five welding jobs are waiting to be processed. Their processing times and due dates are given
below. Using the critical ratio dispatching rule, in which order should the jobs be processed?
Job Processing Time (days) Job due date (days)
A 4 7
B 2 4
C 8 11
D 3 5
E 5 11
a. B, D, A, E, C
b. C, D, A, B, E
c. C, E, A, D, B
d. E, B, A, D, C
e. none of the above
b (Scheduling jobs, moderate) {AACSB: Analytic Skills}
61. Which critical ratio value implies that a job is already late?
a. more than 100
b. 1
c. less than 1
d. 10
e. none of the above
c (Scheduling jobs, moderate)
62. The priority rule which sequences jobs using the smallest ratio of due date to processing time is
a. critical ratio
b. earliest due date
c. first come, first served
d. longest processing time
e. shortest processing time
a (Scheduling jobs, moderate)
63. Which of the following is an advantage of the FCFS dispatching rule when used in services?
a. FCFS is easy to update.
b. FCFS minimizes the average number of jobs in the system.
c. FCFS minimizes the average lateness of all jobs.
d. FCFS maximizes the number of jobs completed on time.
e. FCFS seems fair to customers.
e (Scheduling jobs, moderate)
416
64. The most appropriate sequencing rule to use if the goal is to dynamically track the progress of jobs
and establish relative priority on a common basis is
a. shortest processing time
b. earliest due date
c. critical ratio
d. longest processing time
e. Johnsons rule
c (Scheduling jobs, moderate)
65. Use of the shortest processing time sequencing rule generally results in
a. maximum average lateness
b. maximum utilization
c. maximum effectiveness
d. minimum average flow time
e. none of the above
d (Scheduling jobs, moderate)
66. Which of the following dispatching rules is typically the best technique for taking first those jobs
with the most urgent needs?
a. shortest processing time
b. critical ratio
c. earliest due date
d. longest processing time
e. none of the above
e (Scheduling jobs, moderate)
67. When a set of jobs must pass through two workstations whose sequence is fixed, ______ is the rule
most commonly applied.
a. critical ratio
b. earliest due date
c. first come, first served
d. slack time remaining
e. Johnsons rule
e (Scheduling jobs, moderate)
68. A recent advance in short-term scheduling that makes use of expert systems and simulation in
solving dynamic scheduling problems is
a. forward scheduling
b. backward scheduling
c. infinite scheduling
d. finite capacity scheduling
e. progressive scheduling
d (Finite capacity scheduling (FCS), moderate)
417
69. Five jobs are waiting for processing through two work centers. Their processing time (in minutes)
at each work center is contained in the table below. Each job requires work center Alpha before
work center Beta. According to Johnsons rule, which job should be scheduled first?
Job Alpha Beta
R 20 10
S 25 35
T 50 20
U 15 35
V 55 75
a. R
b. S
c. T
d. U
e. V
d (Scheduling jobs, moderate) {AACSB: Analytic Skills}
70. Five jobs are waiting for processing through two work centers. Their processing time (in minutes)
at each work center is contained in the table below. Each job requires work center Sigma before
work center Delta. According to Johnsons rule, what sequence of jobs will minimize the
completion time for all jobs?
Job Sigma Delta
R 40 10
S 25 30
T 50 20
U 35 35
V 55 15
a. R-S-T-U-V
b. S-V-T-R-U
c. S-U-T-V-R
d. V-R-U-S-T
e. none of the above
c (Scheduling jobs, moderate) {AACSB: Analytic Skills}
71. Which of the following are limitations of rules-based dispatching systems?
a. Rules need to be revised to adjust to changes in orders, product mix, and so forth.
b. Rules may not recognize idle resources.
c. Rules may not recognize bottleneck resources
d. Rules may not be able to prioritize two jobs with identical due dates.
e. All of the above are limitations.
e (Scheduling jobs, moderate)
418
72. Five jobs are waiting for processing through two work centers. Their processing time (in minutes)
at each work center is contained in the table below. Each job requires work center Alpha before
work center Beta. According to Johnsons rule, what is the optimum sequence of jobs and the
minimum time for completion of all jobs?
Job Alpha Beta
R 20 10
S 25 35
T 50 20
U 15 35
V 55 75
a. V-T-S-U-R; 225
b. U-R-T-S-V; 175
c. R-S-T-U-V; 240
d. U-S-V-T-R; 200
e. none of the above
d (Scheduling jobs, moderate) {AACSB: Analytic Skills}
73. Conventional MRP uses time buckets that do not recognize capaci

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