C720 Pre Assessment PDF

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Operation and supply chain management Pre-assessment study guide with answers...

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1. A company that produces motors uses the following check sheet: Z

Which two tools should be used to measure installer performance?

Why would the company use this check sheet?

Choose 2 Answers Your Answer

Correct Answer

To develop a Pareto chart identifying the root causes of engine defects 2. Which aspect of quality is demonstrated by a vehicle that has a useful life of 165,000 miles? Your Correct Answer Answer Durability 3. A quality improvement team is trying to illustrate to upper management how a process is varying over time as measurements are collected. Which two statistical process control (SPC) tools should the team use? Choose 2 Answers Your Answer

Correct Answer

Run charts Control charts 4. The CEO of a service company wants to change the strategy of the company from volume sales to high-quality products. Which philosophy should the CEO implement to emphasize quality over volume? Your Correct Answer Answer Deming’s 14 points 5. A company sells garage doors through a national retailer and contracts with local installers to complete the installations. The operations manager is responsible for completing the installations in a 14-day period after the sale. The company will be penalized financially if it fails to achieve these objectives. The operations manager’s daily responsibilities include contacting installers to expedite orders and ensure deadlines are met.

Your Answer

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Control charts to measure the time elapsed to completion Run charts to chart output around the 14-day central tendency 6. Which quality tool examines patterns, flow, and causes of variation of data points over time? Your Correct Answer Answer Statistical process control 7. A vice president of a major retailer is trying to reduce the wait time for customers in the checkout line by appropriately opening checkout lines. To do this, the VP needs to know the relationship and degree of correlation between monthly customer visits and area population. Which tool should be used in this situation? Your Answer

Correct Answer

Scatter plot 8. Which two company practices reflect the guiding principles of Six Sigma? Choose 2 Answers Your Answer

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A company tries to reduce variation in the quality of products it offers. A company emphasizes the quality of suppliers because the quality of outputs are determined by the quality of inputs. 9. Six Sigma is adopted by a manufacturing company. How can the company use Six Sigma to establish quality improvement? Your Correct

Answer

Answer

There should be no more than 3.4 defects per million products from a manufacturing company statistically.

The factories can deliver to two different distribution centers. Every day each distribution center must receive 9 appliances each.

10. A company makes rulers that are designed to be 20 cm in length with allowance ±0.1 cm.

The cost to deliver appliances from each factory to each distribution center is listed in the table below:

If the actual length of a ruler is 20.2 cm, which factor will the company use to judge the quality of the length of the rulers? Your Correct Answer Answer Conformance 11. Which quality management philosophy uses cause-and-effect fishbone diagrams for root-cause analysis, emphasizes a bottom-up approach to quality, and considers standardization and quality control to move together in improvement? Your Correct Answer Answer Ishikawa’s quality circle 12. Which quality management philosophy assigns cost to quality, defines quality by how well a product can be used for its intended purpose, and uses Pareto charts? Your Correct Answer Answer Juran Institute’s management theory 13. A clothing retailer sends out evaluations to customers to rate quality as “outstanding,” “good,” “average,” and “bad.” If the retailer wants to know the annual frequency of each evaluation category, which tool should the retailer use? Your Correct Answer Answer Histogram 14. An appliance manufacturer has two factories located around the world, each with its own capacity: • F1 can make 8 appliances per day. • F2 can make 10 per day.

F 1 F 2

Distribution Center 1 $4

Distribution Center 2 $3

$8

$3

Using the factory production constraints and the delivery costs in the above matrix, what is the lowest cost to deliver all 18 appliances to the distribution centers? Your Answer

Correct Answer

$67 15. A children’s clothing retailer is looking to build a store in a city that happens to be close to one of the company’s distribution centers. The retailer opens a retail store on this city’s busiest street, which also has other clothing retailers and a department store. Which two factors were influential in opening this store at this location? Choose 2 Answers Your Answer

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Proximity to customers Proximity to competitors (clustering) 16. A manager is planning staffing needs for a seasonal ice cream stand. The manager expects to have the following number of customers per day each month: January: 20 February: 23 March: 30 April: 60

May: 90 Jun: 120 July: 130 August: 150 September: 100 October: 80 November: 60 December: 30

19. A company makes garage door tracks for residential and commercial customers. The production manager prefers to run all the footage for residential requirements first each day and then change over for the commercial size after the residential orders are completed. The tooling is changed back to the residential size before the end of business each day.

Which capacity planning strategy should the manager use to achieve this customer demand? Your Correct Answer Answer Match

Batch processing with some product variety on moderately flexible equipment

Which process strategy is this company using? Your Answer

17. The original capacity in each process for a computer manufacturer’s operations is as follows: Parts inventory: 500 units available per day Assembly: 300 units assembled per day Delivery: 450 units processed per day After the computer manufacturer upgrades the assembly system, it can assemble 550 units per day. According to this information, what is the throughput for this computer manufacturer? Your Correct Answer Answer 450 units/day 18. A rental company has a fleet of 50 cars that can be rented daily if all vehicles have been washed and inspected and are free of mechanical and electrical defects. Due to maintenance requirements and late returns by customers, the rental company is, in general, able to prepare 45 cars per day for rental. On average, 30 cars are rented daily. What is the efficiency rate for this company? Your Answer 67%

Correct Answer

Correct Answer

20. An auto service center that specializes in oil changes has two service bays that serve, on average, a total of 24 cars per eight-hour business day. On average, each bay can finish one oil change in 30 minutes. What is the design capacity? Your Answer

Correct Answer

32 oil changes 21. An oil refinery receives crude oil on a regular basis, which must be refined into five different octane-rated gasoline formulas and diesel. Demand for these fuels is easy to predict. The cost to refine the oil decreases rapidly depending on the size of the refinery that refines the oil. Based on this information, which process strategy should the oil refinery use in its refining process? Your Correct Answer Answer Continuous flow 22. A company wants to establish a new gas station in a location with heavy traffic. The company performs a traffic analysis for four locations during four different time periods. The table below depicts the number of cars that passed each location during the four time periods: Time Period Main Fell Veterans Market Street Avenue Parkway Street Midnight - 6:00 1,000 500 1,500 750 a.m. 6:00 a.m. - noon 4,500 6,000 5,500 4,000 Noon - 6:00 p.m. 6,000 4,500 6,000 5,000

6:00 p.m. midnight

2,500

1,500

3,000

6,000

Which location should the company choose for the new gas station? Your Answer

Correct Answer

Veterans Parkway 23. A hospital administrator needs to determine how many beds to make available for exam rooms, operating rooms, and in-patient care. The hospital board announces they will be getting more patient referrals from specialists at a newly opened clinic. What should the adminstrator use to forecast how many beds to make available, given the increased number of patients? Your Correct Answer Answer Weighted moving average using patient referral data 24. A furniture company receives an order for 100 dining tables with four legs each. The planner has determined that the projected number of legs on hand is 60 units. If there is no previously scheduled production for legs, what will be the planned production of legs? Your Correct Answer Answer 340 25. What is the time horizon for medium-range forecasting? Your Answer 6 to 18 months

Correct Answer

Planned order receipts Expedite notice 27. A bicycle company receives an order to deliver 200 bicycles by the end of the month. Which planning process will help this company to decide the required quantity of bicycle tires to meet the order? Your Correct Answer Answer MRP 28. A large retail chain is developing an aggregate plan for its “holiday tree” product line. It does not specify Douglas fir, pine, spruce tree, or artificial tree variations, just overall quantity of trees to be offered throughout the holiday season. What is the appropriate time fence for the aggregate plan? Your Answer 6 to 18 months before the holiday season begins

Correct Answer

29. The sales department for a company is having their sales representatives meet with customers to develop a sales plan for the coming year. The sales plan details prior year sales, current year sales, and year-to-year sales growth. Each customer can estimate how many products they plan to buy from the sales representatives the following year. Each customer signs the sales plan, and the sales representatives forward it to their sales managers. The sales managers then tally up the estimated sales and forward the totals on to the vice president of sales. The vice president then announces what the predicted sales for the company will be for the coming year. What was used to predict sales for the coming year? Your Answer

Correct Answer

26. A computer company receives an order for 100 computers from a customer inside of its lead time. The production planner agrees to support the order.

The buildup method

Which two outputs will the MRP system issue? Choose 2 Answers

30. A company has developed a new product that links a smartphone app to a doorbell and home security monitoring system. There is nothing else like it on the market and no prior sales history from which to develop a forecast. A sales manager is trying to determine the best price point for introduction,

Your Answer

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while also trying to estimate what first-year sales volumes might be. What are two possible means for determining the price point and first-year sales forecast?

35. Which equipment can be used in a just-in-time (JIT) environment to reduce setup time? Your Correct Answer Answer General-purpose machines

Choose 2 Answers Your Answer

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Panel of experts Test market 31. A computer company needs to order 50 computer screens from a vendor so they can assemble 100 computers by the end of the month. What does the computer company need to know to ensure the parts arrive when they are needed? Your Correct Answer Answer Lead time

36. A printing company prints a magazine dedicated to reporting on new scientific discoveries. The company has almost no paper inventory, but rather orders and then receives the paper a day before it prints an edition of the magazine. Which inventory control system is the printing company using? Your Answer Just-in-time inventory

Correct Answer

37. Strategic planning is based on a firm's strengths and weaknesses, as well as the threats and opportunities in the external environment. Regarding strategic planning, what is JIT?

32. In order to optimize a just-in-time production system, what should companies strive to do? Your Correct Answer Answer Reduce setup times of machinery. 33. A company has a repetitive manufacturing situation where the master schedule does not vary from day to day and is level loaded. Under these circumstances, which manufacturing system should be employed? Your Correct Answer Answer Just-in-time 34. What type of supply chain structure focuses on getting products quickly to market? Your Correct Answer Answer Agile supply chain structure

Your Answer

Correct Answer

A strength 38. What can be used in a company with a just-in-time (JIT) environment to reduce inventory? Your Correct Answer Answer A pull system 39. Products A and B for a manufacturing company are level scheduled. Daily requirements are 15 units for product A and 20 units for product B. If three units of product A and four units of product B are produced in each cycle, how many daily cycles should be scheduled? Your Correct Answer Answer 5

40. What helps to reduce setup time in a JIT system?

the asphalt trucks.

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Placing the needed tools and equipment in predetermined locations Shortening the downtime of equipment

45. A semiconductor manufacturer recently purchased a copper ore mine to ensure access to a copper supply for a long period of time. Which supply chain integration strategy did this manufacturer use? Your Correct Answer Answer Backward vertical integration

41. Which competitive advantage would a company gain from having suppliers managing inventory within the company’s facilities? Your Correct Answer Answer A decrease in overhead costs 42. A company desires to increase the throughput of the products that it manufactures. The firm finds a bottleneck in the availability of its raw materials. What is the firm accomplishing? Your Answer

Correct Answer

Your Answer

Correct Answer

Identifying the system constraint 43. What are two steps in the theory of constraints?

46. A company manufactures ceramic coffee cups. The company employs automated pottery making machines in creating the ceramic coffee cups. Which one of the production steps is a bottleneck? Your Answer

Correct Answer

Firing the coffee cups in a kiln 47. A folding chair manufacturer continues to make the same five chairs it has made for the past 15 years. It has worked to minimize inventory throughout the supply chain by sharing information with component suppliers and continuous improvement. Which supply chain integration strategy is the chair manufacturer using? Your Correct Answer Answer Lean supply chain

Choose 2 Answers

Identifying the system constraint Elevating the system constraint 44. A road building crew is supplied with hot asphalt mix from a supplier that is located 30 miles from the worksite. As the road extends, the distance increases from the asphalt supplier. Currently, the bottleneck for the project has been the throughput rate of the paving equipment being used on the road. What will happen to the bottleneck as the project nears completion? Your Correct Answer Answer It will change to become the transportation time of

48. An electric company wants to increase service reliability by building new high-voltage wiring. Because service improves for other electric companies on the same grid, the company partners with other companies to plan routes and finance construction. Which supply chain integration strategy is the electric company using? Your Correct Answer Answer Strategic alliance 49. An aircraft manufacturer has many highly complex subassemblies such as seats, cockpit, engines, and landing gear. It works with other manufacturers to design and build these subassemblies while doing project management and final assembly themselves. Which supply chain integration strategy is the aircraft manufacturer using?

Your Answer

Correct Answer

Outsourcing

Forward vertical integration 54. What is a characteristic of an agile supply chain?

50. A cell phone manufacturer makes a new model every six months with the latest available technology. The demand for these high-end models is not easy to predict. The manufacturer needs to ensure it has the right components for the new phone model on time. Which supply chain integration strategy should the manufacturer use to get new components quickly? Your Correct Answer Answer Agile supply chain 51. What would be considered a bottleneck for the process of going through airport security? Your Correct Answer Answer The throughput rate of the full-body scanner 52. A lawn mowing service contracts with homeowners and businesses to cut grass during the growing season. There are several elements that affect a lawn mowing service, such as rainy weather, employee turnover, fuel prices, and maintenance repairs that can compress the amount of resources available on any given day.

Your Answer

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Suppliers help develop new products that can better meet individual customer needs. 55. Imelda Company wants to minimize the total of their ordering costs and holding costs. However, they also understand that ordered items usually cost less per unit when purchased by the case rather than individually. Which inventory management model should they use? Your Answer

Correct Answer

Quantity discount model 56. A company is experiencing rapid changes in the technology of one of its products. Which characteristic of a SWOT analysis will be of greatest benefit to this company? Your Correct Answer Answer Determining opportunities through the examination of previously under-served markets

Which two factors could create bottlenecks? Choose 2 Answers Your Answer

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Frequent rain and thundershowers High employee turnover 53. A mattress manufacturer holds many patents on their mattresses because they are specially constructed out of unique materials. This leads the manufacturer to open retail stores in high-traffic areas to increase visibility and brand recognition. Which supply chain integration strategy is the mattress manufacturer using? Your Correct Answer Answer

57. A hardware store in a small town cannot afford to invest in an automated inventory system. This means they will not generally know the inventory levels of the many sizes of nuts and bolts that they carry. In order to determine those inventory levels, they take a physical count of their fasteners every two weeks. Which inventory system is the hardware store using? Your Answer

Correct Answer

Periodic inventory system 58. A bank needs to know how much a customer has in their account at any particular time. This enables the bank to determine if the customer has available funds for a withdrawal from their account.

Which inventory system should the bank use? Your Answer

Correct Answer

Perpetual inventory system 59. The CEO of a large manufacturing company is aware of impending financial problems, but this has not been disclosed to the board of directors. What can Correctly be said of the CEO’s lack of disclosure? Your Answer It is an unethical decision.

Correct Answer

60. An employee for a manufacturing company is handing out literature...