1 Deming's PDCA (plan, do, check, and act) cycle underlies what inherent Six Sigma principle?

Standard deviation
Continuous improvement
Project management
Control charting

2 In a Gantt chart the vertical axis represents which of the following?

Tasks
Time
Cost
Revenue

3 The ability to rapidly and inexpensively switch production from one product to another enables which of the following:

Economies of scope
Economies of scale
Economies of shape
Economies of size

4 Which of the following is a major factor that distinguishes service design and development from manufacturing design and development?

The service process and service product can be developed independently.
The service package has the same legal protection available to manufactured goods.
Manufacturing is far more capital intensive than services.
The service package is the major output of the development process.

5 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?

1st Party - where a firm audits itself against ISO standards
3rd Party - where a qualified national or international standards/certifying agency serves as an auditor
2nd Party - where a customer audits its supplier
Certification is sought by any firm assuming they pay annual dues.

6 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

7 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

8 A project can be segmented into which of the following?

Events
Work packages
Sub-jobs
Success markers

9 According to the theory of constraints, which of the following can be a capacity-constrained resource (CCR)?

An employee
Product design
A customer
Inoperable equipment

10 Which of the following is one of Dr. Eli Goldratt's rules of production scheduling for optimized production technology?

Do not allow bottlenecks to govern the flow of the line.
If you lose an hour at a bottleneck it is better than making scrap.
Utilization and activation of a resource are not the same.
An hour saved at a bottleneck operation does not increase the process flow.

11 What is the starting point in developing a capacity plan for a health care operation?

Estimating design capacity
Determining the effective capacity over time
Discovery of the bottleneck operation
Forecasting patient demand for a reasonable length of time

12 Design for manufacturing and assembly delivers product improvements by emphasizing which of the following:

Designing products so they can be manufactured by a virtual factory
Simplification of the product by reducing the number of separate parts
Reducing product quality during the assembly process
Reducing equipment in the production process

13 Which of the following is ISO 14000 primarily concerned with?

Time management
Continuous improvement management
Environmental management
Quality management

14 Which of the following is usually included as an inventory holding cost?

Typing up an order
Breakage
Quantity discounts
Order placing

15 Which of the following is an element that addresses elimination of waste under lean production?

Kanban production control system
Group plant loading technology
Minimized run times
Production ahead of demand

16 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
Current physical capacity and current workforce
Market demand and subcontractor capacity
Competitor behavior and current workforce

17 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?

4,000
6,000
10,000
14,000

18 Which of the following is considered a major process flow structure?

Lead Time
Fabrication
Project
Lean Manufacturing

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?

Sales
Operating expenses
Return on investment
Dividends

20 Which of the following is one of the principles of reengineering?

Do not select suppliers on the basis of price alone.
Leverage high cost employees with lower cost employees.
Quality at the source
Have those who use the output of a process perform the process.

21 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:

Utilize SQC (statistical quality control).
Redesign the process in order to mitigate the bottlenecks.
Introduce controls within the process.
Slow down production rates until the process is in control.

22 Which of the following is a characteristic that can be used to guide the design of service systems?

Services cannot be inventoried.
Services are all similar.
Services businesses are inherently entrepreneurial.
Quality work means quality service.

23 During the implementation of a project, which of the following should be the primary focus of a consulting firm?

Tools and materials availability
Application of the learning curve theory
The correct project software
People management skills

24 Which of the following is a cost impact and payoff analysis tool from the operations consulting tool kit?

Work sampling
Statistical tools
Gap analysis
Decision trees

25 Which production process term best describes the situation when activities in a stage of production must stop because there is no work?

Blocking
Buffering
Staging
Starving

26 Which of the following is an analytical tool used in Six-Sigma quality improvement programs?

Tree charts
Pedigree charts
Pareto charts
Gantt charts

27 In most cases, demand for products or services can be broken into several components. Which of the following is considered a component of demand?

Future elements
Level elements
Past elements
Cyclical elements

28 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.
Keep the value stream moving at minimum velocity.
Concentrate on speeding up value-adding operations rather than removing waste.

29 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?

Efficient
Agile
Forward looking
Risk hedging

30 Which of the following is considered an organizational blueprint, which prescribes the quantity and time frame for when each end product will be assembled?

WBS (Work Breakdown Structure)
MRP (Material Requirements Plan)
MPS (Master Production Schedule)
ERP (Enterprise Resource Planning)