**Question:**The radical change paradigm, introduced by Michael Hammer and major consulting firms, is referred to as:

Total quality management

Synchronous manufacturing

Electronic enterprise

Manufacturing strategy paradigm

Business process reengineering

**Show or Reveal the Answer**

Business process reengineering

**Question:**The measures of the firm's ability to make money according to Goldratt include:

Net profit

Return on assets

Cash flow

A and C

A and B

A, B, and C

**Show or Reveal the Answer**

A and C

Key Points: The three measures of the firm's ability to make money include: net profit, return on investment ( and not return on assets) and cash flow.

Key Points: The three measures of the firm's ability to make money include: net profit, return on investment ( and not return on assets) and cash flow.

**Question:**If the system contains a bottleneck, the _______ is the best place for control. If there is no bottleneck, the __________ is the best place for control.

Bottleneck, capacity-constrained resource

Capacity-constrained resource, bottleneck

Capacity-constrained resource, drum

None of the above

**Show or Reveal the Answer**

Bottleneck, capacity-constrained resource

Key Points: If the system contains a bottleneck, the bottleneck (called the drum) is the best place for control. If there is no bottleneck, the capacity-constrained resource is the best place for control.

Key Points: If the system contains a bottleneck, the bottleneck (called the drum) is the best place for control. If there is no bottleneck, the capacity-constrained resource is the best place for control.

**Question:**Which of the following approaches can be used to overcome the bias due to initial starting values?

I. Discarding data generated during the early parts of the run

II. Selecting starting conditions that reduce the duration of the warm-up period

III. Selecting starting conditions that eliminate bias

I only

II only

III only

I and II

II and III

I, II, and III

**Show or Reveal the Answer**

I, II, and III

Key Points: All of the above are approaches that can be used to overcome the bias due to initial starting values.

Key Points: All of the above are approaches that can be used to overcome the bias due to initial starting values.

**Question:**JIT requires work-in-process when used with kanban so there is inventory to pull. When compared to synchronous manufacturing, this is viewed as a negative aspect of JIT.

TRUE

FALSE

**Show or Reveal the Answer**

TRUE

**Question:**JIT requires vendors to be located nearby. When compared to synchronous manufacturing, this is viewed as an advantage of JIT.

TRUE

FALSE

**Show or Reveal the Answer**

FALSE

**Question:**JIT requires a stable production level. When compared to synchronous manufacturing, this is viewed as a negative aspect of JIT.

TRUE

FALSE

**Show or Reveal the Answer**

TRUE

**Question:**Which of the following is a negative aspect of JIT compared to synchronous manufacturing?

TJIT cannot deal with outside vendors.

TJIT needs broadly fluctuating production levels.

TJIT does not allow very much flexibility in the products produced.

TJIT requires a great deal of workforce computational skills.

TJIT does not deal well with bottlenecks.

**Show or Reveal the Answer**

JIT does not allow very much flexibility in the products produced

Comparing JIT to synchronous manufacturing, JIT does an excellent job in reducing lead times and work-in-process, but it has several drawbacks:

1. JIT is limited to repetitive manufacturing.

2. JIT requires a stable production level (usually about a month long).

3. JIT does not allow very much flexibility in the products produced.

4. JIT still requires work-in-process when used with kanban so that there is "something to pull."

5. Vendors need to be located nearby because the system depends on smaller, more frequent deliveries.

Comparing JIT to synchronous manufacturing, JIT does an excellent job in reducing lead times and work-in-process, but it has several drawbacks:

1. JIT is limited to repetitive manufacturing.

2. JIT requires a stable production level (usually about a month long).

3. JIT does not allow very much flexibility in the products produced.

4. JIT still requires work-in-process when used with kanban so that there is "something to pull."

5. Vendors need to be located nearby because the system depends on smaller, more frequent deliveries.

**Question:**An MRP system can allow for product rejects by building a larger batch than is demanded, but a JIT system cannot tolerate poor quality.

TRUE

FALSE

**Show or Reveal the Answer**

TRUE

**Question:**If there is no bottleneck, then excess capacity exists and the system should be changed to create a bottleneck.

TRUE

FALSE

**Show or Reveal the Answer**

TRUE

**Question:**The drawbacks of JIT in relation to synchronous manufacturing include all but:

JIT does not allow very much flexibility in the products produced

JIT requires a stable production level

JIT uses a schedule to assign work to each workstation

JIT is limited to repetitive manufacturing

All of the above are drawbacks of JIT

**Show or Reveal the Answer**

JIT uses a schedule to assign work to each workstation

Key Points: JIT still requires work-in-process when used with kanban. Synchronous manufacturing uses a schedule to assign work to each workstation. Thus, there is no need for more work in process other than that being worked on.

Key Points: JIT still requires work-in-process when used with kanban. Synchronous manufacturing uses a schedule to assign work to each workstation. Thus, there is no need for more work in process other than that being worked on.

**Question:**From an operations standpoint, the goal of the firm is to simultaneously increase throughput and inventory and reduce operating expenses.

TRUE

FALSE

**Show or Reveal the Answer**

FALSE

From and operations standpoint, the goal of the firm is to increase throughput while simultaneously reducing inventory and operating expenses.

From and operations standpoint, the goal of the firm is to increase throughput while simultaneously reducing inventory and operating expenses.

**Question:**According to Goldratt and Fox, a useful performance measure to treat inventory is ______.

Dollar days

Quick ratio

Current ratio

Inventory turnover

None of the above

**Show or Reveal the Answer**

Dollar days

Key Points: Inventory turnover is a traditional measure, whereas current ratio and quick ratio don't really measure inventory.

Key Points: Inventory turnover is a traditional measure, whereas current ratio and quick ratio don't really measure inventory.

**Question:**The category(ies) of distribution that can be used for simulation is(are):

Empirical frequency distributions

Standard mathematical distributions

Skewed distributions

A and B

B and C

A, B, and C

**Show or Reveal the Answer**

A and B

Key Points: The categories of distribution that can be used for simulation are empirical frequency distributions and standard mathematical distributions such as normal and Poisson.

Key Points: The categories of distribution that can be used for simulation are empirical frequency distributions and standard mathematical distributions such as normal and Poisson.

**Question:**Which of the following is not a job design principle that individuals or work groups require as a logical integration of work activities?

Feedback

Skill variety

Task variety

Task identity

Work Physiology

**Show or Reveal the Answer**

Work Physiology

Key Points: Work physiology is one approach to incorporating the physical costs of moderate to heavy work in job design.

Key Points: Work physiology is one approach to incorporating the physical costs of moderate to heavy work in job design.

**Question:**The reasons for work measurement standards include:

To provide a benchmark for improvement

To schedule work and allocate capacity

To provide a subjective basis for motivating the workforce and measuring their performance.

A and B

A and C

A, B, and C

**Show or Reveal the Answer**

A and B

Key Points: Work measurement standards provide an objective basis for motivating the workforce and measuring their performance.

Key Points: Work measurement standards provide an objective basis for motivating the workforce and measuring their performance.

**Question:**The throughput yields of 5 sub-processes in series to execute in order are: 80%, 82%, 80%, 80%, and 83%, respectively. What is the probability that the order executed through this 5 sub-processes in series is defect free?

45.15%

34.85%

25.15%

65.85%

**Show or Reveal the Answer**

34.85%

Explanation: The probability that the order executed through this 5 sub-processes in series is defect free is 34.85%.

To calculate the percent yield of these 5 sub-processes is: YRT = yt1 X yt2 X yt3 X yt4 X yt1. Thus, the calculation is as follows: YRT = 0.80 X 0.82 X 0.80 X 0.80 X 0.83 = 0.3485 = 34.85%.

Explanation: The probability that the order executed through this 5 sub-processes in series is defect free is 34.85%.

To calculate the percent yield of these 5 sub-processes is: YRT = yt1 X yt2 X yt3 X yt4 X yt1. Thus, the calculation is as follows: YRT = 0.80 X 0.82 X 0.80 X 0.80 X 0.83 = 0.3485 = 34.85%.

**Question:**"Or" gates and "And" gates are typically used in a:

Box and whisker plot

Radar chart

Fault tree diagram

Activity network diagram

**Show or Reveal the Answer**

Fault tree diagram

**Question:**The probability of it snowing or not snowing in New York City would not fit the criteria for a Binomial Distribution even though there are only 2 outcomes - it will snow or it will not snow. Why can't you use the binomial distribution for this problem?

The probability of success is not the same. The chance of snow on a winter day is much higher than on summer days.

Snowing and not snowing is not a two-state condition.

It would be impossible to define a fixed number of trials.

It is impossible to use binomial distributions for weather issues.

**Show or Reveal the Answer**

The probability of success is not the same. The chance of snow on a winter day is much higher than on summer days.

**Question:**Step two of the 5S process, store or set-in-place, tells you to store tools ____________.

based on size

based on customer

based on frequency of use

based on the number of people who use them

**Show or Reveal the Answer**

based on frequency of use

Explanation : 5S is the acronym for five Japanese words: Seiri (Sort), Seiton (store or Set in order/place), Seiso (Shine), Seiketsu (Standardize) and Shitsuke (Sustain) and they represent the five steps for a systematic technique for good housekeeping.

Explanation : 5S is the acronym for five Japanese words: Seiri (Sort), Seiton (store or Set in order/place), Seiso (Shine), Seiketsu (Standardize) and Shitsuke (Sustain) and they represent the five steps for a systematic technique for good housekeeping.