# Fau man3506 first exam (chapters 1 – 5)

machines is available for 40 hours a week and there is no setup time required when shifting from the production of one product to any other. The processing requirements to make one unit of each product are shown in the table. Weekly product demand for the next planning period has been forecasted as follows: 80
E-1000s; 65 S-2000s; 35 P-2000s; and 20 N-1000s.

Processing Time (Minutes Per Printer)
Model Machine
1 Machine 2 Machine 3 Machine 4
E-1000 (E) 10 15 15 5
S-2000 (S) 10 10 10 10
P-2000 (P) 5 10 15 10
N-1000 (N) 5 5 5 10
In the questions  that follow, the traditional method refers to maximizing  the contribution margin per unit for each product, and the bottleneck method refers to maximizing  the contribution  margin per minute at the bottleneck  for each product.

Use  the  information  in  Table  7.6.  Using  the  traditional  method,  in  what sequence should products be scheduled for production?

a. N, S, E, P b. N, E, P, S c. P, E, N, S d. E, S, P, N

Question 3
In Statistical Process Control,      are used to detect defects and determine if the process has deviated from design specifications.

a.    Flowcharts
b.    Cause-and-Effect Diagrams
c.    Process Capability Charts
d.    Control Charts

Question 4
The   process   that   facilitates   the  placement   of  orders   and  identifies,   attracts,   and  builds relationships with external customers is called the:

a. customer relationship process.
b. new service development process.
c. order fulfillment process.
d. supplier relationship process.

Question 5
Scenario 1.1
A job consists of three elements. Twenty observations for each element were timed, and the resulting data are shown in the following table. A performance rating has also been assigned for each element, as shown in the table. The job has an allowance of 20% of normal time.

Element
Performance
Rating (%)
Average Element
Time (in minutes)

# 1
80
3.6

# 2
100
2.5

# 3
110
3.1
Use the information in Scenario 1.1. What is the normal time for the entire job?

a.           Greater than or equal to 10.0 minutes
b.           Less than 10.0 minutes but greater than or equal to 8.5 minutes
c.           Less than 8.5 minutes but greater than or equal to 7.0 minutes
d.           Less than 7.0 minutes

Question 6
Table 1.3

Act. I.P N. Time C. Time N. COST (\$000s) C. COST (\$000s) Av. Crash wks C. Cost
/wk
A – 4 2 8 14
B A 3 2 9 11
C A 4 4 10 10
D B,C 5 3 10 15
E C 4 1 11 14
F D,E 1 1 6 6
* Act.: Activity
I.P. : Immediate Predecessor

N. Time : Normal Time
C. Time: Crash Time
N. Cost: Normal Cost (\$000s) C. Cost: Crash Cost (\$000s)
Av. Crash wks: Available Weeks of Crashing

C. Cost/wk: Crashing cost per week
Which activity should be crashed first for the project shown in Table 1.3?

a.  A b. B c.  C d. D

Question 7
You  are  interested  in  buying  a  laptop  computer.  Your  list  of  considerations  include  the computer’s  speed  in  processing  data,  its  weight,  screen  size,  and  price.  You  consider  a number of different models, and narrow your list based on speed and monitor screen size, then finally select a model to buy based on its weight and price. In this decision, weight and price are examples of:

a. order qualifiers.
b. the voice of the supplier.
c. order winners.
d. the voice of the customer.

Question 8
Input measures to planning long-term capacity include such metrics as:
a. the number of customers served per hour.
b. the number of trucks produced per day. c. the number of machine hours available. d. the number of bills processed in a week.

Question 9
Regardless of how departments like Accounting, Engineering, Finance, and Marketing function in an organization, they are all linked together through:

a. management.
b. processes.
c. customers.
d. stakeholders.

Question 10
When considering the plan-do-study-act  cycle for problem solving, data are collected to measure process improvements in the       step.
a.    plan
b.    do
c.    study
d.    act

Question 11
The upper and lower specifications  for a service are 10 min. and 8 min., respectively.  The
process average is 9 min. and the process capability  ratio is 1.33. What is the process standard deviation?

a.    0.1
b.    0.15
c.    0.20
d.   0.25

Question 12                                                                                                          2.5 out of 2.5 points
Activity slack is defined as:
a. latest start time minus earliest start time.
b. earliest start time minus latest start time.
c. earliest finish time minus latest finish time.
d. latest finish time minus earliest start time.

Question 13                                                                                                          2.5 out of 2.5 points
A company  desires to set up a line to produce  60 units per hour. The work elements and their precedence relationships are shown in Table 7.12.

Use the information  in Table 7.12. What is the highest efficiency line balance possible?
a. Less than 93%
b. More than 93% but less than or equal to 95% c. More than 95% but less than or equal to 97% d. More than 97%
Table 7.12
Work Time Immediate
Page 6 of 17

Element  (sec)  Predecessor(s)

Question 16
The   second   step   in   Theory   of   Constraints    application,    “exploit    the bottleneck(s),” means that:

a. the analyst should create a schedule that maximizes the throughput of the bottlenecks.
b. the  analyst  should  repeat  the  analysis  process  to  look  for  other bottlenecks.
c. the analyst should consider increasing capacity of the bottleneck.
d. the analyst should schedule non-bottleneck  resources to support the bottleneck.

Question 17
In an assembly  operation  at a furniture  factory,  six employees  assembled  an average  of 450 custom cabinet drawers per 5-day week. What is the labor productivity of this operation?
a.    90 chairs per worker per day
b.   20 chairs per worker per day
c.    15 chairs per worker per day
d.   75 chairs per worker per day

Question 18
Front offices typically emphasize:

a. low cost operations and on-time delivery.
b. top quality and customization.
c. on-time delivery and standardization.
d. top quality and low cost operations

Question 19

Manufacturing processes usually have:

a. physical, durable output.
b. high levels of customer contact.
c. output that cannot be inventoried.
d. low levels of capital intensity.

Question 20
Regarding control charts, a type I error refers to concluding that the process is:

a.    in control when it is not in control. b.    incapable when it is capable.
c.    out of control when it is in control. d.    capable when it is not capable.

Question 21
Table 7.6

Burdell  Industries  makes  four  different  models  of computer  printers:  the  E-1000, the S-2000, the P-2000 and the N-1000. The E-1000 sells for \$200 and
has \$40 in parts and \$40 in labor; the S-2000 sells for \$150 and requires \$30 in parts and \$30 in labor; the P-2000 sells for \$100 and has \$20 in parts and \$20 in labor; and the N-1000 sells for \$75 but requires only \$10 of parts and \$10 of labor. Fixed overhead is estimated at \$5,000 per week. The manufacture of each printer requires four machines,  Machines #1, 2, 3 and 4. Each of the machines is available for 40 hours a week and there is no setup time required when shifting from the production of one product to any other. The processing requirements to make one unit of each product are shown in the table. Weekly product demand for the next planning period has been forecasted as follows: 80 E-1000s; 65 S-2000s; 35 P-2000s; and 20 N-1000s.

Processing Time (Minutes Per Printer)
Model Machine
1 Machine 2 Machine 3 Machine 4
E-1000 (E) 10 15 15 5
S-2000 (S) 10 10 10 10
P-2000 (P) 5 10 15 10
N-1000 (N) 5 5 5 10

In the questions  that follow, the traditional method refers to maximizing  the contribution margin per unit for each product, and the bottleneck method refers to maximizing  the contribution  margin per minute at the bottleneck  for each product.Use  the  information  in  Table  7.6.  Using  the  bottleneck  method,  in  what sequence should products be scheduled for production?
a. N, S, E, P b. N, E, P, S c. P, E, N, S d. E, S, P, N

Question 22
A manufacturer that produces standard products in large volumes is likely to be using a(n):

a. make-to-stock strategy. b. make-to-order strategy.
c. assemble-to-order strategy. d. engineer-to-order strategy.

Question 23
Which one of the following statements about flexible automation is best?
a.    Investment cost is lower when a transfer machine handles many operations.
b.    Chemical processing plants and oil refineries mainly utilize programmable automation.
c.    It is an automatic process that can be reprogrammed to handle various products.
d.    It achieves top efficiency; accommodating new products is difficult and costly.

Question 24

Which statement regarding learning rates is best?
a.A more complicated process offers more room for improvement.
b.A simpler process has a more pronounced learning rate.
c. Typically, the effect of each capital addition on the learning curve is significant.
d.Regardless of output volume, the estimate for the time required to produce the first unit is less important than the estimate of the learning rate.

Question 25
You are given the following information about an activity A:

i)    Normal time          = 9 weeks ii)    Crash time             = 7 weeks iii)  Normal cost           = \$20,000 iv)  Crash cost              = \$30,000
What will it cost to complete activity A in 8 weeks?
a. Less than or equal to \$24,000
b. Greater than \$24,000 but less than or equal to \$27,000 c. Greater than \$27,000 but less than or equal to \$30,000 d. Greater than \$30,000

Question 26
Which one of the following statements concerning capacity cushions is best?
a. Large capacity cushions are used more often when future demand is level and known.
b. Small capacity cushions are used extensively in capital intensive firms.
c. Capacity cushions are used primarily in manufacturing  organizations,  not in service organizations.
d. Small cushions are used in organizations where the products and services produced often change.

Question 27

Historically, the average diameter of the holes drilled has been 0.25 cm and the average range has been 0.1 cm. Determine the central line and upper and lower control limits for an x and an R-chart, assuming samples of size 8 will be taken. Use Table 5.1. what is the value of  UCL for x bar chart?
a.    Less than or equal to 0.100
b.   Greater than 0.100 but less than or equal to 0.200
c.    Greater than 0.200 but less than or equal to 0.300 d.   Greater than 0.300

Question 28                                                                                                          2.5 out of 2.5 points
Historically, the average proportion of defective bars has been 0.015. Samples will be of 100 bars each. Construct a p-chart using . Suppose a sample had 0.07 defectives. What would you do?

a.    Nothing; it is just random variation.                   b.    Look for assignable causes.
c.    Change z to 2 and take another sample. d.    Change z to 4 and continue sampling.

Question 29                                                                                                          2.5 out of 2.5 points
A welder can weld 2 angle irons together in 2 minutes. Over the course of an entire year she will
assemble  1,000 units, each of which  requires  3 such welds  (i.e., welding  two angle irons together is one step, and three such steps are needed per unit). If she is paid \$25 an hour, how much is her annual welding labor cost?
a.             \$1,000                b.           \$1,250
c.             \$2,500 d.           \$3,000

Question 30                                                                                                          2.5 out of 2.5 points
Table 6.3
The North Bend Manufacturing Company is producing two types of products, A and B. Demand forecasts for next year and other production-related information are provided in the following table:

Product A
Product B
Demand forecast (units/year) 4,000 12,000
Batch size (units/batch) 80 150

Standard processing time
(hr/unit)
Standard setup time
(hr/batch)
2.5                   2
18                 24

Both products A and B are produced at the same operation called MASAC27A.
Use the information  in Table 6.3 to help answer this question.  Currently,  the company has 12 MASAC27A machines, and financial constraints prevent any expansion  for the next  year.  Which  one  of the following  alternatives  will allow next year’s demand to be fully covered?

a. Do nothing.
b. Increase the capacity cushion to 30 percent.
c. Increase the batch size of product B to 300 units. d. Decrease the capacity cushion by 1 percent.

Question 31
A  company  is  interested  in  monitoring  the  number  of  scratches  on  Plexiglass  panels.  The appropriate control chart to use would be:

a.         an x chart. b.         a p-chart. c.         a c-chart.
d.         an R-chart.

Question 32
Precedence Table to accompany Table 1:
Activity                      Immediate Predecessor
A                                            – B                                            A C                                            A D                                           B
E                                          B, C

F C
G D, E, F
Table 1.1

ACTIVITY      ACTIVITY      EARLIEST      EARLIEST      LATEST      LATEST      SLACK TIME              START            FINISH          START        FINISH

A                      2                       0                                              0                   2                  0

B                       1                       2                       3                     3                   4                  1

C                       3                       2                       5                     2                   5                  0

D                      7                       3                      10                    4                  11

E                       3                       5                       8                                         11                 3

F                                                5                      11                    5                  11                 0

G                      4                      11                     15                   11                 15                 0

Using the information in Table 1 and Table 1.1, which one of the following is the critical path?
a. a. ABDG b. b. ABEG c. c. ACEG d. d. ACFG

Question 33                                                                                                          2.5 out of 2.5 points
A  company  is  interested  in  monitoring  the  variability  in  the  weight  of  the  fertilizer  bags  it produces. An appropriate control chart would be:
a.   an  x chart.
b.   a p-chart.
c.   a c-chart.
d.   an R-chart.

Question 34
The earliest start time for an activity is equal to the:
a. smallest earliest finish time of all of its immediate predecessors.
b. largest earliest finish time of all of its immediate predecessors.
c. smallest late start time of any of its immediate predecessors.
d. largest late finish time of all of its immediate predecessors.

Question 35
The three sigma limits for a process  whose  distribution  conforms  to the normal  distribution include:

a.    about 50% of the observed values, in the long run.
b.    about 68% of the observed values, in the long run.
c.    about 95% of the observed values in the long run.
d.    about 99% of the observed values in the long run.

Question 36
A manufacturing plant is capable of producing 10 tons of product per day when run three shifts with no breakdowns and plenty of raw materials. Over the past week, the plant has produced an average of 7.3 tons per day since the third shift has devoted much of their time to preventive maintenance. What is the capacity of the plant?
a. 10 tons/day
b. 7.3 tons/day c. 73%
d. 137%

Question 37
A wait-and-see capacity strategy does all of the following EXCEPT:
a. lag behind demand.
b. minimize the chance of lost sales due to insufficient capacity.
c. meet capacity shortfalls with overtime, temporary workers, subcontracting, and stockouts.
d. reduce  the  risk  of  overexpansion  based  on  overly  optimistic  demand forecasts.

Question 38
A Kanban  system  is an  important  mechanism  for  lean  system  management.
Which  one  of  the  following  statements  regarding  the  operation  of  a
Kanban system is TRUE?
a. A typical Kanban used in the JIT system includes information such as item number, unit price, competitor’s product name, and its price.
b. A Kanban can be used to set the order quantity but not the inventory level.
c. A Kanban and a container move as a pair once production begins at the fabrication process.
d.  An  empty  container  can  be  exchanged  for  a  full  container  at  the storage location even though no Kanban is on the full container.

Question 39
The focus for a process improvement exercise should be on balancing:
a. flow.
b. capacity. c. workload. d. time.

Question 40
Table 1.2:
Activity
Immediate Predecessor (s)
Most Optimistic Time (Wks) Most Likely Time (Wks)
Most Pessimistic Time (Wks)
A — 1 2 3
B A 2 4 12

C A 1 2 3
D B 6 7 8
E B,C 10 12 14
F D 2 3 4
G E,F 1 5 15
H A 2 5 14

Using Table 1.2, if the expected times for activities A, G, and H increased by 2, 3, and 4 weeks, respectively, by how many weeks would the project’s earliest expected time of completion increase?
a.  Fewer than or equal to 2 weeks
b. Greater than 2 weeks but fewer than or equal to 4 weeks
c.  Greater than 4 weeks but fewer than or equal to 6 weeks
d. Greater than 6 weeks

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