Given an actual demand this period of 103, a forecast value for this period of 99, and an alpha of .

6,
what is the exponential smoothing forecast for next period?

A.96.6

B.97.4

C.101.4

D.100.6

E.−105.4

Cost minimization is an appropriate strategy in which stage of the product life cycle?
A. decline
B. growth
C. adolescence
D. introduction
E. retirement

A result of concurrent engineering in product design is:

A. less customer demand.
B. higher costs.
C. lower quality.
D. speedier product development.
E. All of the above.

What refers to training and empowering frontline workers to solve a problem immediately?
A. benchmarking
B. poka-yoke
C. service recovery
D. just-in-time
E. kaizen

Stakeholders who are affected by the production and marketing of poor quality products include:
A. customers and distributors.
B. suppliers and creditors.
C. stockholders and employees.
D. All of the above.
E. None of the above.

The role of decision trees in product design is to:

A. better understand the customers' wants.
B. calculate the value of quality function deployment.
C. calculate the expected value of each course of action.
D. calculate the value of the moment of truth.
E. rank products in descending order of their dollar contribution to the firm.
Which of the following statements is true?
A. External conditions are shaped by corporate mission.
B. Functional area missions are merged to become the organizational mission.
C. Corporate mission is shaped by functional strategies.
D. Corporate strategy is shaped by functional strategies.
E. Functional strategies are shaped by corporate strategy.

Boeing's 737 airplane and Hewlett−Packard's printer business are examples of using enhancements and
migrations of existing products to build on a ________.
A. product foundation
B. product platform
C. product dais
D. product template
E. product pulpit

Who was the person most responsible for popularizing interchangeable parts in manufacturing?
A. Eli Whitney
B. Henry Ford
C. Frederick W. Taylor
D. Lillian Gilbreth
E. Whitney Houston

Reasons to study operations management include learning about:

A. a costly part of the enterprise.

B. how people organize themselves for productive enterprise.

C. what operations managers do.

D. how goods and services are produced.

E. All of the above.

Which of the following is NOT a typical service attribute?

A. difficult to resell
B. simultaneous production and consumption
C. easy to store
D. customer interaction is high
E. intangible product

Which of the following techniques uses variables such as price and promotional expenditures, which are
related to product demand, to predict demand?
A. moving average
B. trend projection
C. weighted moving average
D. associative models
E. exponential smoothing
In time series, which of the following cannot be predicted?
A. cycles
B. large increases in demand
C. large decreases in demand
D. seasonal fluctuations
E. random variations

Which of the following documents lists the operations necessary to produce the component with the
material specified in the bill of material?
A. an engineering drawing
B. a route sheet
C. an assembly drawing
D. an operations chart
E. an assembly chart

At which stage of the product life cycle is product strategy likely to focus on improved cost control?
A. maturity
B. saturation
C. introduction
D. inflation
E. growth

The degree or strength of a relationship between two variables is shown by the:

A.mean absolute deviation.
B. alpha.
C. mean.
D. coefficient of correlation.
E. cumulative error.

An engineering drawing shows the:

A. materials, finishes, machining operations, and dimensions of a component.
B. cost, materials, tolerances, and lead−time for a component.
C. dimensions, tolerances, cost, and sales or use volume of a component.
D. dimensions, tolerances, materials, and finishes of a component.
E. cost, dimensions, and machining operations for a component.

A business's stakeholders, whose conflicting perspectives cause ethical and social dilemmas, include:
A. employees.
B. owners.
C. suppliers.
D. lenders.
E. All of the above.

The fundamental purpose of an organization's mission statement is to:

A. define the operational structure of the organization.
B. generate good public relations for the organization.
C. define the organization's purpose in society.
D. define the functional areas required by the organization.
E. create a good human relations climate in the organization.
Kaizen is a Japanese term meaning:
A. continuous improvement.
B. a foolproof mechanism.
C. a fishbone diagram.
D. just-in-time (JIT).
E. setting standards.

Franz Colruyt has achieved low-cost leadership through:

A. plastic, not paper, shopping bags.
B. background music that subtly encourages shoppers to buy more.
C. effective use of voice mail.
D. converting factories, garages, and theaters into retail outlets.
E. exclusive use of the Euro.

Which of the following is TRUE of maquiladoras?

A. They originated in China.
B. They discourage foreign businesses from outsourcing.
C. They assess tariffs only on the value-added work done.
D. All of the above.
E. None of the above.

Three commonly used productivity variables are:

A. technology, raw materials, and labor.
B. labor, capital, and management.
C. education, diet, and social overhead.
D. quality, efficiency, and low cost.
E. quality, external elements, and precise units of measure.

Computer monitoring of tracking signals and self-adjustment if a signal passes a preset limit is
characteristic of:
A. multiple regression analysis.
B. exponential smoothing including trend.
C. adaptive smoothing.
D. trend projection.
E. focus forecasting.

What two numbers are contained in the daily report to the CEO of Walt Disney Parks & Resorts regarding
the six Orlando parks?
A. yesterday's forecasted attendance and yesterday's actual attendance
B. yesterday's forecasted attendance and the year-to-date average daily forecast error
C. yesterday's actual attendance and last year's actual attendance
D. yesterday's actual attendance and today's forecasted attendance
E. yesterday's forecasted attendance and today's forecasted attendance
Three broad categories of definitions of quality are:

A. product quality, service quality, and organizational quality.

B. Pareto, Shewhart, and Deming.

C. internal, external, and prevention.

D. user based, manufacturing based, and product based.

E. low-cost, response, and differentiation.

Demand for a certain product is forecast to be 800 units per month, averaged over all 12 months of the
year. The product follows a seasonal pattern, for which the January monthly index is 0.8.
What is the seasonally-adjusted sales forecast for January?
A.798.75 units
B.801.25 units
C.640 units
D.83.33 units

The three major elements of the product decision are:

A. cost, differentiation, and speed of response.

B. strategy, tactics, and operations.

C. legislative, judicial, and executive.

D. selection, definition, and design.

E. goods, services, and hybrids.

Costs of dissatisfaction, repair costs, and decreased future demand are elements of cost in the:
A. quality loss function.
B. Pareto chart.
C. ISO 9000 quality cost calculator.
D. process chart.
E. Ishikawa diagram.

The three major types of forecasts used by organizations in planning future operations are:
A.
strategic, tactical, and operational.
B.
economic, technological, and demand.
C.
departmental, organizational, and territorial.
D.
exponential smoothing, Delphi, and regression.
E.
causal, time-series, and seasonal.

Which of the following statements is TRUE?

Part 2
A.
The person most responsible for initiating the use of interchangeable parts in manufacturing was Walter
Shewhart.
B.
The origins of the scientific management movement are generally credited to Henry Ford.
C.
The origins of management by exception are generally credited to Frederick W. Taylor.
D.
The person most responsible for initiating the use of interchangeable parts in manufacturing was
Eli Whitney.
E.
The person most responsible for initiating the use of interchangeable parts in manufacturing was Henry
Ford.

Internet of Things is associated with which operations management time period?

Part 2
A.
Cost Focus.
B.
Quality Focus
C.
Globalization Focus
D.
Just-In-Time Focus
E.
Customization Focus

Among the tools of TQM, the tool ordinarily used to aid in understanding the sequence of events through
which a product travels is a:
Part 2
A.
flowchart.
B.
poka-yoke.
C.
Taguchi map.
D.
Pareto chart.
E.
check sheet.

An operations manager is NOT likely to be involved in:

Part 2
A.
the quality of goods and services to satisfy customers' wants and needs.
B.
work scheduling to meet the due dates promised to customers.
C.
maintenance schedules.
D.
the design of goods and services to satisfy customers' wants and needs.
E.
the identification of customers' wants and needs.

The philosophy of zero defects is:

Part 2
A.
prohibitively costly.
B.
consistent with the commitment to continuous improvement.
C.
the result of Deming's research.
D.
unrealistic.
E.
an ultimate goal; in practice, 1 to 2% defects is acceptable.

Question content area

Part 1
Productivity measurement is complicated by:

Part 2
A.

the workforce size.

B.

the competition's output.

C.

the type of equipment used.

D.

the fact that precise units of measure are often unavailable.

E.

stable quality.

Which of the international operations strategies involves high cost reductions and high local
responsiveness?
Part 2
A.
global strategy
B.
transnational strategy
C.
international strategy
D.
worldwide strategy
E.
multidomestic strategy

Given an actual demand this period of 67, a forecast for this period of 58, and an alpha of 0.3, what would
the forecast for the next period be using exponential smoothing?
Part 2
A.
61.0
B.
57.1
C.
55.3
D.
60.7
E.
58.9

Which of the following is one of the 10 strategic operations management decisions?

Part 2
A.
debt/equity ratio
B.
pricing
C.
depreciation policy for tax returns
D.
process and capacity strategies
E.
advertising

Standardization is an appropriate strategy in which stage of the product life cycle?

Part 2
A.
retirement
B.
decline
C.
growth
D.
introduction
E.
maturity

Outsourcing is the practice of transferring a firm's activities that have traditionally been internal to external
suppliers.
Part 2
True
False

Coca Cola and Nestlé are two firms that have benefited from the use of:
Part 2
A.
the international strategy option.
B.
the maquiladora system in Europe.
C.
the transnational strategy option.
D.
the multidomestic strategy option.
E.
the global strategy option.

Group technology requires that:

Part 2
A.
each component be identified by a coding scheme that specifies size, shape, and the type of
processing.
B.
a specific series of engineering drawings be prepared.
C.
engineering change notices be linked to each of the bills of material and engineering notices.
D.
all bills of material be prepared using the same format.
E.
the final products be standardized.

A foundry produces circular utility access hatches (manhole covers). Currently, 120 covers are produced
in a 10-hour shift. If labor productivity decreases by 20% due to a process change, it would then be:
Part 2
A.
96 covers/hr.
B.
9.6 covers/hr.
C.
144 covers/hr.
D.
11.8 covers/hr.
E.
14.4 covers/hr.

Manufacturability and value engineering has which of the following benefits?

I. Reduced complexity of the product
II. Reduction of environmental impact
III. Additional standardization of components
IV. Robust design
V. Improved job design and safety
Part 2
A.
I, III, V
B.
IV
C.
II, IV
D.
I, III, IV
E.
I, II, III, IV, V

What is the forecast for May using a four-month moving average?

Nov. Dec. Jan. Feb. Mar. April
39 36 40 42 40 46
Part 2
A.
47
B.
42
C.
38
D.
43
E.
44

"Quality lies in the eyes of the beholder" is:

Part 2
A.
a product-based definition of quality.
B.
the definition of quality proposed by the American Society for Quality.
C.
an unrealistic definition of quality.
D.
a user-based definition of quality.
E.
a manufacturing-based definition of quality.

The service sector has lower productivity improvements than the manufacturing sector because:
Part 2
A.
the service sector uses less skilled labor than manufacturing.
B.
the quality of output is lower in services than manufacturing.
C.
services usually are labor-intensive.
D.
the service sector is often easy to mechanize and automate.
E.
service sector productivity is hard to measure.

Which of the following statements best characterizes delivery reliability?

Part 2
A.
a company that has a computerized delivery scheduling system
B.
a company that delivers more frequently than its competitors
C.
a company that always delivers at the promised time
D.
a company that always delivers on the same day of the week
E.
a company that delivers faster than its competitors

A Three Sigma program has how many defects per thousand?

Part 2
A.
2.7
B.
3 times the standard deviation
C.
1,500
D.
34
E.
2,700