1. What measures the central tendency of a set of data?

Coefficient of variation
Variance
Standard deviation
Mean
Range

2. Consider a p-chart measuring the percentage of defective light bulbs. If the LCL is .04 and a sample has 1% defects, what is the implication?

The process is in a state of control.
The process is out of control even though the variation is "good."
The value of sigma must be increased.
The process has too many errors.
A calculation error must have occurred

3. An OC curve is an example of what?

Traditional statistical tools
Fishbone diagramming

Acceptance sampling
Experimental design
Statistical process control

4. On a control chart, what separates common from assignable causes of variation?

x-bar lines
Control limits
Specification limits
Production limits
Mean divided by standard deviation

5. What are preset ranges of acceptable quality characteristics?

Control limits
Product specifications
Six-sigma limits
AQC limits
R-chart limits

6. According to JIT, __________ is carried to cover up a wide variety of problems, such as poor quality, demand uncertainty, and slow

delivery.
Inventory
Excess capacity
A group of back-up workers
Spare equipment
Insurance

7. Which of the following is not a role of JIT management?

creating a JIT culture

cost and information sharing
serving as coaches and facilitators
developing an incentive system
ensuring multifunctional training occurs

8. JIT uses a pull system where communication starts with either the customer or with the _________ work station in the production line.

First
Bottleneck
Dominant
Most expensive
Last

9. JIT production workers are expected to

Cover up quality problems
Ignore data
Take responsibility in getting to the root cause of quality problems
Blame problems on someone else

Have a poor attitude about quality

10. The benefits of long-term relationships with a small number of suppliers include all of the following except

Always getting the lowest price
Focus on improving process controls
Greater accountability
Develop stable delivery schedules
Eliminate paperwork

11. Forecasting is not a function which contributes to:

deciding which business market to pursue
deciding which product to produce
deciding how bonuses should be allocated
deciding how much inventory to carry
deciding how many people to hire

12. Which forecasting method is particularly good for predicting technological changes and scientific advances?

Market research
Executive opinion
Delphi method
Naïve method
Gamma method

13. What are the most frequently used forecasting techniques?

Linear regression
Simple mean

Exponential smoothing
Weighted moving average
Econometric models

14. Which of the following is a causal forecasting method?

Naïve
Moving average
Weighted moving average
Trend adjusted exponential smoothing
Linear regression

15. "Inside information" is most likely garnered through which of the following forecasting methods?

exponential smoothing
seasonal indexes
naïve
Delphi
multiple regression

16. The least likely reason for a U.S. firm to choose to locate a factory in a foreign country is _____________.

climate
Natural resources
markets
cheaper suppliers
low labor costs

17. Issues that need to be considered in location globally include all of the following except______________.

different cultures
FEC accounting requirements
language barriers
different laws

different business practices

18. Capacity planning is complicated by the fact that ___________________.
capital markets are complex
existing facilities may become obsolete
capacity is difficult to define
capacity is usually purchased in chunks, rather than smooth increments
depreciation must be calculated

19. Service organizations such as restaurants, movie theaters, and banks focus on locating near ____________.

suppliers
roads
intersections
their customers
potential workers

20. Management has decided to add capacity incrementally in smaller chunks as needed, rather than purchasing one large facility. This decision ____________________.

is very risky
will result in low initial costs
will ultimately result in lower costs per unit if demand increases rapidly

positions the company to be well prepared for high demand in the future
can lead to a large amount of excess capacity

21. The first step in designing a layout is

identifying the facility
gathering information
selecting the correct layout software package
developing a REL chart
developing a from-to matrix

22. What is the term for a system in which the product being worked on is physically attached to the line and automatically moved to the next station when the cycle time has elapsed?

cyclical line
paced line
autoline
continuous line
constrained line

23. Which of the following is not one of the four basic layout types?

product
hybrid
process
fixed position
inverted

24. Which company is widely considered to be the leader of just-in-time production?

Ford
Timex
Gateway
Toyota
Sony

25. A high-volume paper mill is an example of which layout type?

inverted
circular
process
fixed position
product