OPS571 FREE Final Exam

1. OPS 571 Final Exam SG 2014
1.Which of the following is considered a major process flow structure?
 Lead Time
 Fabrication
 [Lean Manufacturing]
 Project
2.ISO audits result in certifications that are done by first, second, or third parties. Which of the following
result in the best certification of a firm?
 Certification is sought by any firm assuming they pay annual dues.
 2nd Party – where a customer audits its supplier
 [3rd Party – where a qualified national or international standards/certifying agency serves
as an auditor ]
 1st Party – where a firm audits itself against ISO standards
3.Which of the following is ISO 14000 primarily concerned with?
 Quality management
 Time management
 Continuous improvement management
 [Environmental management]
4. Which is the one correct value stream principle?
 Look for efficiencies in the factory, office, physical, procedural, and technical operations.
 [Eliminate waste that stops, slows down, or diverts the value stream].
 Concentrate on speeding up value-adding operations rather than removing waste.
 Keep the value stream moving at minimum velocity.
5. What is the starting point in developing a capacity plan for a health care operation?
 [Determining the effective capacity over time]
 Estimating design capacity
 Forecasting patient demand for a reasonable length of time
 Discovery of the bottleneck operation
6. Which of the following is considered an organizational blueprint, which prescribes the quantity and time
frame for when each end product will be assembled?
 MRP (Material Requirements Plan)
 ERP (Enterprise Resource Planning)
 [MPS (Master Production Schedule)]
 WBS (Work Breakdown Structure)

2. 7. Which of the following is an element that addresses elimination of waste under lean production?
 [Kanban production control system]
 Production ahead of demand
 Minimized run times
 Group plant loading technology
8. In most cases, demand for products or services can be broken into several components. Which of the
following is considered a component of demand?
 Level elements
 Future elements
 Past elements
 [Cyclical elements]
9. Design for manufacturing and assembly delivers product improvements by emphasizing which of the
following:
 Reducing product quality during the assembly process
 Designing products so they can be manufactured by a virtual factory
 Reducing equipment in the production process
 [Simplification of the product by reducing the number of separate parts]
10. Which of the following is one of the principles of reengineering?
 Quality at the source
 Do not select suppliers on the basis of price alone.
 [Have those who use the output of a process perform the process.]
 Leverage high cost employees with lower cost employees.
11. Which of the following is a characteristic that can be used to guide the design of service systems?
 Services are all similar.
 Services businesses are inherently entrepreneurial.
 Quality work means quality service.
 [Services cannot be inventoried.]
12. Considering Hau Lee’s uncertainty framework for classifying supply chains, which of the following is
given to a supply chain which has an evolving supply process based on functional products?
 [Risk hedging]
 Forward looking
 Efficient
 Agile

3. 13. There are many applications of poka-yokes in service organizations. Which of the following is one of
the three-T's used to classify poka-yokes?
 Trust
 Teamwork
 [Task]
 Time
14. Which of the following is a major factor that distinguishes service design and development from
manufacturing design and development?
 The service package has the same legal protection available to manufactured goods.
 Manufacturing is far more capital intensive than services.
 The service process and service product can be developed independently.
 [The service package is the major output of the development process].
15. A project can be segmented into which of the following?
 Events
 Sub-jobs
 [Work packages]
 Success markers
16. Which of the following is a cost impact and payoff analysis tool from the operations consulting tool kit?
 Statistical tools
 [Decision trees]
 Work sampling
 Gap analysis
17. According to the theory of constraints, which of the following can be a capacity-constrained resource
(CCR)?
 Product design
 Inoperable equipment
 [An employee]
 A customer
18. The ability to rapidly and inexpensively switch production from one product to another enables which
of the following:
 Economies of shape
 Economies of size
 Economies of scale
 [Economies of scope]
19. According to the theory of constraints, which of the following financial measurements can be used to
measure the firm's ability to make money?
 Operating expenses
 Dividends
 Sales
 [ Return on investment ]

4. 20. Deming’s PDCA (plan, do, check, and act) cycle underlies what inherent Six Sigma principle?
 [Continuous improvement ]
 Control charting
 Standard deviation
 Project management
21. Which of the following is usually included as an inventory holding cost?
 Order placing
 Quantity discounts
 [Breakage ]
 Typing up an order
22. Which production process term best describes the situation when activities in a stage of production
must stop because there is no work?
 Blocking
 [Starving ]
 Staging
 Buffering
23. In a Gantt chart the vertical axis represents which of the following?
 Time
 Revenue
 [Tasks ]
 Cost
24. The Shingo system states that the way to prevent defects from coming out at the end of a process
is to do which of the following:
• Redesign the process in order to mitigate the bottlenecks.
• Utilize SQC (statistical quality control).
[• Introduce controls within the process. ]
• Slow down production rates until the process is in control.
25. Which of the following terms describes the time a unit spends actually being worked on together
with the time spent waiting in a queue?
[ Flow time ]
Build time
Cycle time
Run time

5. 26. Which of the following is one of Dr. Eli Goldratt's rules of production scheduling for optimized
production technology?
An hour saved at a bottleneck operation does not increase the process flow.
If you lose an hour at a bottleneck it is better than making scrap.
Do not allow bottlenecks to govern the flow of the line.
[Utilization and activation of a resource are not the same].
27. During the implementation of a project, which of the following should be the primary focus of a
consulting firm?
• The correct project software
• Application of the learning curve theory
[ • Tools and materials availability]
• People management skills
28. Which of the following is an analytical tool used in Six-Sigma quality improvement programs?
• Gantt charts
[• Pareto charts]
• Tree charts
• Pedigree charts
29. A project manager must consider several components when overseeing the planning process of
aggregate operations; specifically, whether such components are factors that are internal or external
to the organization. Which of the following factors would be classified as an internal component for
an organization?
• Inventory levels and economic conditions
• Market demand and subcontractor capacity
[• Current physical capacity and current workforce]
• Competitor behavior and current workforce
30. Which of the following is the net requirement using an MRP program if the gross requirement is
10,000 and the inventory on hand is 4,000?
• 10,000
• 14,000
[• 6,000 ]
• 4,000