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Operations Management 2nd International Edition Gerard Cachon, Christian Terwiesch - Solutions
If two firms have the same annual inventory turns, they also have the same days-of-supply. True or false? a. True b. False
A grocery chain recently reported annual sales of $89 billion, inventory of $5.8 billion, and annual cost of goods sold of $64 billion. What are the firm’s annual inventory turns?
Suppose that a local hardware store turns over its inventory of power tools 7.3 times per year. If the hardware store has an average inventory of 130 power tools, what is its average daily sales rate for power tools?
Suppose that a movie theater snack bar turns over its inventory of candy 3.2 times per month. If the snack bar has an average of 350 boxes of candy in inventory, what is its average daily sales rate for candy?
Which reason for holding inventory guards against a reduction in the flow rate when one assembly station is disrupted in a production line? a. Seasonality b. Uncertain demand c. Buffers d. Batching
An electronics manufacturer has 25 days-of-supply of inventory for a particular cell phone model. Assuming 365 days per year, what are the annual inventory turns of this cell phone model?
Which reason for holding inventory enables a firm to reduce the impact of large fixed costs that the firm incurs whenever it places an order to a supplier? a. Seasonality b. Uncertain demand c. Buffers d. Batching
Apple’s days-of-supply of inventory are 10.5. What are its annual inventory turns?
Tablets and laptops would be categorized as which type of inventory by an electronics retailer? a. Raw materials inventory b. Work-in-process inventory c. Finished goods inventory d. Seasonal inventory
Suppose a retailer’s annual inventory turns are 7.5. What are its days-of-supply of inventory?
A delivery truck from a food wholesaler has just delivered fresh meat and produce to a local restaurant. This meat and produce would be categorized as which type of inventory by the restaurant? a. Raw materials inventory b. Work-in-process inventory c. Finished goods
In a p-chart, the upper control limit is how many estimated standard deviations above the average p-bar? a. 1 b. 2 c. 3 d. 6
Suppose a retailer turns its inventory of soda 50 times per year. On average, it has 400 bottles of soda on its shelves. What is the retailer’s average daily sales rate?
You look at a process that has three activities; each one can potentially go wrong. How many leaves does the event tree of this process have? a. 2 b. 3 c. 6 d. 8 e. 24
What is the relationship between the number of kanban cards in a process and the inventory level? a. There is no relationship between the two. b. There never can be more inventory in the process than what was authorized via kanban cards. c. The inventory of the process grows with the
Suppose a resource has setup times and a setup time must be incurred each time the resource switches production to a different product. Requiring the resource to make a new product (that requires its own setup) is likely to have what effect on the process? a. Inventory for existing products
In a process for which we have to use discrete probabilities to describe whether an activity was carried out correctly or not, which of the following statements determines the defect probability of the entire process? a. The product of the individual defect probabilities b. The highest
Which of the following definitions describes a robust process? a. A process is robust if it can tolerate variation in input and environmental variables without producing a defect. b. A process is robust if it has a lot of automation built in. c. A process is robust if it uses control
Which of the following statements about Pareto diagrams is correct? a. The Pareto diagram shows the possible root causes of a problem along with the number of defect occurrences. b. The Pareto diagram shows the process capability index over time. c. The Pareto diagram shows the mean
You are working in a small, student-run company that sends out merchandise with university branding to alumni around the world. Every day, you take a sample of 50 shipments that are ready to be shipped to the alumni and inspect them for correctness. Across all days, the average percentage of
What is the difference between a fishbone diagram and an Ishikawa diagram? a. The Ishikawa diagram has more arrows. b. The Ishikawa diagram is based on empirical data; the fishbone diagram is not. c. The Ishikawa diagram is an operations management tool; the fishbone diagram is just
For 40 days in the summer, you are working in a small, student-run company that sends out merchandise with university branding to alumni around the world. Every day, you take a sample of 50 shipments that are ready to be shipped to the alumni and inspect them for correctness. Across all days, the
How many standard deviations is the upper control limit, UCL, abovethe long-run center line, X-bar-bar?a. 1b. 2c. 3d. 6e. 12
You are thinking about the things that can go wrong on your trip home over the Thanksgiving break. You have booked a flight with USScareways. You know that in 30 percent of the cases the company has canceled the flight you were on. Should such a thing occur, there would be no other air travel
Which of the following elements is not part of an X-bar control chart? a. The long-run center line, X-bar-bar b. The control limits, LCL and UCLc. The specification limits, LSLand USL d. X-bar values from each sample
A baking operation reduces the amount of variation in the oven temperature. This is an example of robust process design. True or false? a. True b. False
What does X-bar stand for? a. The average of a sample b. The unknown standard deviation in a process that we have to solve for c. A shady bar in West Philadelphia d. The maximum observed value in a sample
Which of the following statements about Pareto diagrams is correct? a. The Pareto diagram shows the possible root causes of a problem but does not show the frequency of defect occurrences. b. The Pareto diagram shows the defects in order from most commonly occurring to least commonly
For one and the same process, what scenario corresponds to a higher variation? a. A six-sigma process b. A three-sigma process c. Cannot be determined from the given information
If a process has a six-sigma capability, what is the process capability index? a. 1 b. 2c. 6 d. 12
John is a newly minted quality engineer at MakeStuff Inc. His boss tells him to increase the process capability index of their main product. John is somewhat lazy and does not want to tackle the variation in the process, so he decides to simply increase the upper specification limit and reduce the
For 120 consecutive days, a process engineer has measured the temperature of champagne bottles as they are made ready for serving. Each day, she took a sample of 8 bottles. The average across all 960 bottles (120 days, 8 bottles per day) was 46 degrees Fahrenheit. The standard deviation across all
Consider again that the company making tires for bikes is concerned about the exact width of its cyclocross tires. The company has a lower specification limit of 22.8 mm and an upper specification limit of 23.2 mm. The standard deviation is 0.15 mm and the mean is 23 mm. The company now wants to
You measure the exact size of 100 ping pong balls from manufacturer A and then another 100 balls from manufacturer B. The balls of manufacturer B have a much larger variation. Means and specification limits for the two manufacturers are identical. Which of the two manufacturers has a higher process
Consider again that the company making tires for bikes is concerned about the exact width of its cyclocross tires. The company has a lower specification limit of 22.8 mm and an upper specification limit of 23.2 mm. The standard deviation is 0.15 mm and the mean is 23 mm. What is the
You harvest 50 tomatoes. You notice that the tomatoes vary in size and weight. If some of the tomatoes were exposed to extra sunshine or irrigation, this would be a common cause variation. True or false? a. True b. False
A company making tires for bikes is concerned about the exact width of its cyclocross tires. The company has a lower specification limit of 22.8 mm and an upper specification limit of 23.2 mm. The standard deviation is 0.15 mm and the mean is 23 mm. What is the process capability index for the
Following the announcement of a major quality problem, the share price of a company falls substantially. This decrease is a result of assignable causevariation. True or false? a. True b. False
You start a summer job serving ice cream at the shore. The manager notices that since you started the job, the average portion size given to customers has gone up substantially. This is a result of assignable cause variation. True or false? a. True b. False
Mary and Tom operate a lemonade stand. They are concerned that the lemonade does not taste fresh at the end of the day. Which of the following variables is an environmental variable in their operation? a. The temperature of the lemonade when they take it out of their refrigerator in the
It is costly to hold inventory, but inventory can also be useful in a process because a. Adding inventory to a process will shorten the average time a unit spends in a process.b. Adding inventory to a process can help reduce situations in which sales are lost due to uncertain demand. c.
Assuming a lower specification limit of 47 grams and an upper specification limit of 53 grams, what is the process capability of this process? How many defects would you expect in one million bags? And, finally, which M&M product in your view has the highest standard deviation?The chocolate
Yi is fixing up his road bike to prepare for a triathlon. He looks at his tires and wonders how much he should inflate them. Which of the following variables is an outcome variable? a. The outside temperature b. The rolling resistance c. The number of times he presses the
In the production of pizza, which of the following four variables is not an input variable? a. The amount of dough prepared for the pizza b. The temperature of the oven c. The type of cheese on the pizza d. The time that the customer leaves the pizza in the refrigerator
Genchi genbutsu requires the implementation of a pull system. True or false? a. True b. False
Which of the following terms is not part of the Toyota Production System (TPS)? a. Ikko-nagashib. Kanban c. Jidoka d. Yakimono e. Genchi genbutsu
Kaizen favors automation and investment in technology. True or false?a. True b. False
A single inspection system with experts testing the output of the process will help reduce the information turnaround time. True or false? a. True b. False
Pulling the Andon cord can cause a loss of output. In TPS, an employee should pull the Andon cord a. Whenever a problem occurs. b. Whenever the employee sees the cost of stopping the line as lower than the costs of not stopping it. c. Wwhenever he or she needs to go on a
The information turnaround time is driven primarily bya. The number of workers. b. The IT system. c. The inventory in the process. d. The amount of waste in the process.
A company makes two models, A and B. Which of the following production schedules is more level? a. ABABABABAB b. AAAAABBBBB
Because of long setup times, a company chooses to run big production batches. Which of the following actions will level the production schedule? a. Using overtime b. Mixing the models on the final line c. Making sure that rework is kept low d. Reducing the waste of the process
What happens to the number of kanban cards in the process if the replenishment time goes up? a. The number of kanban cards increases. b. The number of kanban cards stays the same. c. The number of kanban cards decreases. d. Cannot determine from the given information
Which of the following objectives is more important in a pull system? a. Producing at the rate of demand b. Keeping the equipment utilization
If the takt time increases, the operation requires a. More workers. b. Fewer workers
If the demand rate increases, the takt time a. Increases. b. Decreases.
If customers want to have 1000 units over 10 days, one should aim at producing 100 units per day instead of doing 111 units per day in the beginning and then having a little safety buffer at the end. True or false? a. True b. False
Taichi Ohno built the Toyota Production System with the metaphor of a tiger in mind. Rapid and decisive movements were, in his view, the best way to match supply with demand. True or false? a. True b. False
What is the roof in the “house-shaped” representation of the Toyota Production System? a. Just-in-time b. Waste reduction c. Built-in quality d. Process improvement
Which other Japanese term is most closely related to jidoka? a. Andon b. Ikko-nagashi c. Heijunka d. Kanban
What are the two pillars of the Toyota Production System?a. Just-in-time and waste reduction b. Waste reduction and built-in quality c. Built-in quality and just-in-time d. Process improvement and waste reduction
As you think about your experience at the last airport security screening, you wonder which of the tasks that you saw the officers do at the security check were waste, which were non-value-added work, and which were value-added work. The tasks that you observed included officers doing the
The primary purpose of the “Single-Minute Exchange of Die” philosophy is to a. reduce the setup time for a resource. b. increase the flow rate of a process. c. decrease the utilization of a process. d. eliminate resources that have setup times
A printed circuit board (PCB) machine installs integrated circuits onto a board. Before starting to produce a board, the PCB machine requires a 20-minute setup. Once in production, the PCB machine requires only 0.15 minute per board. a. Currently, the PCB machine produces 500 boards between
A stepper is a piece of equipment in semiconductor manufacturing. Each wafer’s initial pass through the stepper requires 15 minutes. For 40 percent of wafers, they make only a single pass through the stepper. But 60 percent of wafers need to make a second pass through the stepper. The processing
Aquatica makes underwater camera housings for divers. The process begins with a solid rectangular block of aluminum that is used to make a single housing. A computer numerically controlled (CNC) machine drills into the block to make the metal “frame” of the housing. Each block requires 15
Henry Ford proclaimed about the Model T, “You can have any color you want, as long as it is black.” Which of the following best reflects his motivation for this position? a. He believed that customers didn’t actually like other colors, so why go through the hassle of making different
An orthopedic surgeon has read an article about the Toyota Production System and now wants to organize her surgery operation based on lean principles. To eliminate all idle time in the operating room, she decides to call in patients six hours before the scheduled surgery time. Is this a lean
You arrive at the airport and wonder to what extent the security checkpoint is a lean operation. Among other things, you observe that it takes about 30 seconds to check an ID, scan a passenger for weapons, and X-ray their luggage. However, the average customer spends about 20 minutes in the
Which car company is most often associated with the term lean operations? a. General Motors b. Fordc. Toyotad. Honda
A worker in charge of assembling a bicycle finds a faster way to mount the pedals. He turns to his supervisor. The supervisor explains that the process had been optimized by the engineering department and so the worker should make sure to stick with the existing procedures. Which management
A copy machine is available 24 hours a day. On a typical day, the machine produces 100 jobs. Each job takes about 3 minutes on the machine, 2 minutes of which is processing time and 1 minute is setup time (logging in, defining the job). About 20 percent of the jobs need to be reworked, in which
In the welding operations of a bicycle manufacturer, a bike frame has a flow time of about 11.5 hours. The time in the welding operation is spent as follows: 2 hours waiting in front of the cutting machine for the batch to start, 2 hours waiting for the setup of the machine, 1 hour waiting for the
Students have to change buildings between classes, which often involves walks of 5 minutes or more. Walking from one building to another is a. Waste. b. Non-value-added time. c. Value-added time.d. Cannot determine from the given infomation
Which of the following strategies or techniques would reduce inventory in the operation? a. Control charts b. Jidoka c. Poka-yoke d. Heijunka
An executive declares that his company has achieved an OEE of 115 percent. Is this possible? a. Yes b. No c. Sometimes
Which of the following strategies or techniques would use the principle of jidoka to increase quality? a. Reducing changeover time b. Ikko-nagashi c. Andon d. Kanban
Which of the following does not belong to the seven sources of waste? a. Rework b. Overtimec. Transportation d. Inventory
The welding department supplies parts to the final assembly line. Management decides to implement a kanban system and has collected the following data: a. The daily demand is 2000 units. b. The production lead time is 4 days (this includes processing time, transport time, and waiting
In a service operation, we can compute the value-added time by simply looking at the labor content. True or false? a. True b. False
Consider the assembly line of a laptop computer. The line consists of 10 stations and operates at a cycle time of 2 minutes/unit. Their most error-prone operation is step 2. There is no inventory between the stations because this is a machine-paced line. Final inspection happens at station 10. What
A process makes two products, A and B, and operates 5 days per week, 8 hours per day. Demand for the two products for the next week is as follows: Day 1: A: 20; B: 26 Day 2: A: 10; B: 15 Day 3: A: 20; B: 19 Day 4: A: 18; B: 20 Day 5: A: 12; B: 20 What is the takt time
If the batch size is increased, inventory increases, which implies that flow units are likely to spend more time in the process. True or False? a. True b. False
In their Portland, Oregon, facility, Wavy Wood Works makes several types of wood bowls from coastal driftwood. To make a bowl, the first step is to clean the driftwood. Each piece of driftwood makes a single bowl. There is one cleaning machine. It takes 40 seconds to load each piece of wood, and
Which of the following is most likely to be a concern if batches are very large? a. The flow rate will be too high. b. Utilization will be too high. c. Inventory will be too high. d. Too much time will be spent on product changeovers.
A manager is concerned that there isn’t enough time spent on production and too much time spent on setups. The manager decides to double all production batch sizes. This change has no impact on demand. What impact will this likely have on the average inventory in the process? a. Average
Which of the following is likely to increase the utilization of a resource with a setup time? a. Increase the flow rate b. Decrease the processing time c. Decrease the batch size d. Increase the setup time
If the flow rate of a process increases, then the utilization of a resource with a setup time must also increase. True or False? a. True b. False
Sarah’s Organic Soap Company makes four kinds of organic liquid soap: “regular,” “lavender,” “citrus,” and “tea tree.” Demands for the four scents are 150, 120, 75, and 50 kgs per hour, respectively. Sarah’s production process can produce any soap at the rate of 450 kgs per
The batch size is tripled on a resource that has a setup time. What is the likely impact on the resource’s capacity? a. Decrease by 1/3b. Decrease by less than 1/3 c. Increase by less than 300 percent d. Increase by 300 percent
Keuka Studies does custom metal sculptures of horses and other animals. A horse sculpture is composed of numerous parts. They use a lathe to construct two types of parts. The “Body” part is used to support the torso of the horse and the “Leg” part is used to support the legs. Each horse
Increasing the batch size on a resource with setups always increases the capacity of the process. True or false? a. True b. False
Increasing the batch size on a resource with setups always increases the capacity of the resource. True or false? a. True b. False
The Yum and Yee food truck near the business school serves customers during lunch hour by taking orders and making fresh batches of stir-fry. Customers have only one choice during the lunch hour so that Y&Y can maximize the number of customers served. Assume that each customer places just one
A product requires four parts that are made on the same lathe. Call the parts A, B, C, and D. The product requires 1 unit of A, 2 of B, 4 of C, and 8 of D. Which of the following production cycles is most appropriate? a. A: 100, B: 100, C: 100, D: 100 b. A: 101, B: 102, C: 104, D:
A machine makes two components; call them types A and B. It takes 250 seconds to switch production between the component types. During that time, no production occurs. When in production, each unit of A or B requires 0.5 second to be completed. The two components, A and B, are combined in an
A machine makes three different components used in a gyroscope. Call these components A, B, and C. The following repeating schedule is used to make components: make 100 units of A, make 50 units of B, and then make 200 units of C. How many components are made in the production cycle? a.
The batch size is cut in half on a resource that has a setup time. What is the likely impact on the resource’s capacity?a. Decrease by more than 50 percent. b. Decrease by 50 percent. c. Decrease by less than 50 percent. d. No impact.
A chemical process involves adding various agents to a vat and then waiting for the agents to react to make a final compound. The vat holds up to 1000 gallons. Chemical agents are added to the vat at a rate of 4.5 gallons per minute. Once the agents have been added to the vat, the reaction takes 85
Which of the following activities is not part of the Deming cycle? a. Plan b. Do c. Check d. Improve e. Act
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