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80 Cards in this Set
- Front
- Back
It is usually a good idea to keep capacity planning separate from product and service design so that the issues in each area don't become intertwined.
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False
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Effective capacity can be defined as design capacity minus personal and other allowances.
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True
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Design capacity is the maximum output rate or service rate an operation is designed for.
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True
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Increasing the capacity of a bottleneck operation by 10% will always increase the capacity of the system by 10%.
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False
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Increasing quality will cause an increase in productivity, and hence, an increase in capacity.
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True
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Increasing the capacity of operations that follow a bottleneck operation will improve productivity because it will help the operation to overcome the bottleneck effect.
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False
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If capacity increases require a long time, a following strategy may be the best option.
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False
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Efficiency can be defined as the ratio of actual output to effective capacity.
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True
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Utilization can be defined as the ratio of design capacity to actual output.
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False
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A capacity cushion is sometimes used to soften the blow of having to make capacity changes.
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False
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The term economies of scale is used to describe the phenomenon whereby increases in the output rate result in a decrease in unit costs.
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True
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Concepts such as cash flow and present value are important financial measures for analyzing capacity alternatives.
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True
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The breakeven point occurs at an output where total cost and total profit are equal.
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False
It occurs where total cost and total revenue are equal. |
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Capacity decisions affect operations.
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True
They affect operating costs, space availability, ability to meet changes in demand, etc. |
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Capacity planners must keep a narrow focus in order to stay on track.
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False
Ignoring the "big picture" can have serious consequences |
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Which one of these is not a determinant of effective capacity, or are they all determinants? Facilities, Quality capabilities, Job Design, Supply chain, or All are factors
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All are factors
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Which one of these does not enhance developing capacity alternatives? Designing flexibility into the system, Taking a "big picture" approach, Staying focused on quantitative factors, or Staying focused on quantitative factors.
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Staying focused on quantitative factors. Qualitative factors are typically important as well.
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Which one of these is the primary input in capacity planning?
A) Overall cost estimates. B) Supply chain capabilities. C) Competitors' strengths. D) Past successes or failures. E) Demand forecasts |
Demand forecasts
Plans for future capacity relate directly to forecasts of future demand |
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Which one of these is not always an important factor in planning service capacity?
A) The inability to store services. B) The need to be near customers. C) Demand forecasts. D) Demand volatility. |
The need to be near customers.
Some services can be handled from a distance (e.g., tax preparation, prescription refills). |
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Which one of these is not a reason for diseconomies of scale?
A) Fixed costs are spread over more units. B) Distribution costs increase. C) Complexity increases costs. D) Inflexibility may be an issue. |
Fixed costs are spread over more units.
That is a reason for economies of scale. |
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Standard yellow pencils are produced using a product layout.
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True
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Two benefits of cellular manufacturing are low cost and flexibility.
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True
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Process layouts are common in non-manufacturing environments.
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True
Departments are commonly found in service and retail environments. |
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Departments are typical in product layouts.
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False
Departments are typical in process (intermittent) layouts |
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Intermittent processing systems generally tend to have special purpose equipment.
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False
Continuous systems tend to have special-purpose equipment. |
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For repetitive processing, machines of the same type are grouped into departments.
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False
For repetitive processing, machines are typically arranged in work stations along a production or assembly line. |
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A service process matrix is a tool that can be useful for organizations contemplating strategic changes in service operations.
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True
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Service systems do not lend themselves to automation. That is why you do encounter automated services.
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False
Examples include ATM machines, electronic ticket sales, electronic fund transfer, electronic travel reservations, etc. |
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The degree of customer contact and the degree of customization are two key factors in service layout design
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True
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Product layouts usually require less-skilled workers than process layouts.
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True
Product layouts benefit from division of labor, so workers have very narrow tasks. |
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Process layouts tend to have lower equipment utilization than product layouts.
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true
Greater variety results lower utilization rates for some equipment |
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The term balance delay refers to the percentage of idle time for a line.
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True
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The minimum cycle time of a line is equal to the time of the shortest task.
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False
It is equal to the time of the longest task. |
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Cycle time is the time allowed at each work station to complete a set of tasks.
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True
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A DVD player would most likely be repaired in this type of layout:
A) fixed position B) hybrid C) product D) process |
Process
A job shop. |
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Which system has the least flexibility?
A) job shop B) batch C) assembly D) continuous |
Continuous
There is little need for flexibility in a continuous system |
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Which type of operation would be most closely associated with division of labor?
A) job shop B) batch C) assembly D) continuous |
Assembly
Division of labor is the basis for an assembly line operation |
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The type of layout that would be used to build a submarine is:
A) fixed-position B) product C) process D) aquatic |
Fixed Position
Workers, materials, and equipment come to the location of the product. |
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Which processing system would be the least likely choice for producing a pair of shoes?
A) assembly B) batch C) continuous D) job shop |
Continuous
Continuous involves a flow (e.g., refining, water treatment). Shoes would typically be produced on an assembly line or in batches. However, a specialty shoe would be crafted in a job shop. |
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Which two types of processing systems would most likely be used to produce iPods?
A) continuous or assembly B) assembly or batch C) batch or job shop |
continuous or assembly
Continuous (flow) and job shop (small volume, high variety) rule out choices A and C. |
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A) market conditions
B) pricing strategies C) process capabilities D) schedule changes E) order sizes |
process capabilities
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Which one does not relate to designing process layouts?
A) Minimizing transportation costs. B) Minimizing distance traveled. C) Focusing on closeness ratings. D) Equalizing times of work stations. |
Equalizing times of work stations
Equalizing times relates to product layouts and line balancing |
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In a Muther closeness grid, which symbol is used for a location if closeness isn't important?
A) A B) E C) I D) O E) U |
U
Unimportant |
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In a Muther closeness grid, which symbol reflects the greatest important for closeness?
A) A B) E C) I D) O E) U |
A
Absolutely necessary. |
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Which one of the following involves a group of machines that involve supervisory computer control and automatic material handling?
A) N/C machines B) Computer-aided manufacturing C) Cellular manufacturing D) Group technology E) Flexible manufacturing system |
Flexible manufacturing system
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Group technology is often related to which one of the following?
A) cellular manufacturing B) product layout C) combination layouts D) none of these |
cellular manufacturing
Cellular manufacturing often involves processing of part families (grouping). |
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The term specialization refers to work that have a narrow focus.
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True
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Job design is mainly concerned with worker efficiency.
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False
It also places emphasis on human factors. |
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Ergonomics is closely related to time study.
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False
Ergonomics (or human factors) is the scientific discipline concerned with the understanding of interactions among humans and other elements of a system. It is closely related to job design. |
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Job enrichment involves giving workers responsibilities for planning and coordinating tasks.
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True
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Gilbreth was a pioneer in time study.
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False
He is known as "The father of motion study." |
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Micromotion is used in a lab to break down the elements of a methods analysis into very fine details for further study.
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False
It involves the use of video to capture and study fine details of motions. |
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Job rotation and job enrichment both involve horizontal loading.
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False
Horizontal loading means increasing a worker's share of a total task; it is job enrichment. Job rotation is simple having workers periodically changing jobs. |
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Self-directed teams are allowed to make some changes in their work processes.
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True
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Methods analyses involve analyzing how a job is done.
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True
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One disadvantage of a profit-sharing plan is that it is based on a single objective.
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True
The single objective is annual profit. Other objectives that may be important such as quality, productivity, cost reduction, etc., aren't included. |
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A flow process chart is often used in conjunction with a motion study.
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False
It is used as part of methods analysis to examine the overall sequence of worker movements or the flow of materials. |
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A standard time pertains to specified set of working conditions, tools and materials, raw materials, and workplace arrangement.
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True
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In time study, the observed time (OT) is the average of recorded times.
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True
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In time study, a normal time (NT) can be more than the observed time (OT).
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True
NT = OT x Performance Rating. If the performance rating is greater than 1.00, the NT will be greater than the OT. |
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Knowledge-based pay systems are used to reward workers who increase their skills through training.
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True
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OSHA is concerned with
A) worker compensation B) worker safety C) union issues D) treating workers fairly |
Worker Safety
OSHA stands for Occupational Safety and Health Administration. |
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Job rotation and job enlargement are most likely to occur as a part of
A) process selection B) methods analysis C) job design D) motion study |
job design
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The technique most known for its use of a stop watch is:
A) work sampling B) time study C) methods analysis D) motion study |
time study
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The term "therblig" refers to
A) stopwatch reading B) process delay C) basic elemental motion D) fraction (.06) of a minute |
basic elemental motion
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Therbligs are most closely related to:
A) time study B) motion study C) methods analysis D) worker safety |
motion study
A therblig is a basic elemental motion |
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An analyst who wanted to estimate the percentage of time a machine is idle would use probably use this method:
A) work sampling B) time study C) predetermined time standards D) methods analysis |
work sampling
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An analyst who wanted to estimate the proportion of time a worker is involved in a certain activity would use probably use this method:
A) work sampling B) time study C) predetermined time standards D) methods analysis |
work sampling
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A standard time is equal to the normal time adjusted for the:
A) performance rating B) allowance factor C) the learning effect D) the cost of living index E) time in rank |
allowance factor
St = NT x AF |
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Which one is generally not true of work sampling?
A) There is little or no disruption of work. B) Workers tend to be resentful because it is less accurate than time study. C) It is not well suited for short tasks. D) There is less detail about the job than with time study. |
Workers tend to be resentful because it is less accurate than time study.
Workers are often more resentful about time study. |
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Which one is generally not true of time study?
A) A stopwatch is required. B) Only one or a few observations are needed. C) There is more detail about a job than with work sampling. D) It is more costly than work sampling. |
Only one or a few observations are needed.
More than a few observations are generally needed to obtain an accurate time estimate. |
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The location of many businesses is often a function of where the originator was located at the time the business was started.
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True
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Zoning and land costs can be key regional considerations in location analysis.
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False
these are site factors |
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Regional factors can include location of markets or location of raw materials.
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True
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Factors used in location analysis for services and manufacturing are often quite similar.
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False
The factors are usually quite different. |
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The benefits of having global locations generally outweigh the disadvantages:
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False
Each case is different and must be analyzed |
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Companies may seek global locations to overcome miscommunication and cultural differences.
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False
These are two risks that can be associated with global locations. |
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Factor rating includes both qualitative and quantitative inputs.
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True
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In the factor rating system, the most important factor is given a rating of 10, and less important factors are given lower ratings.
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False The sum of all weights is 1.00.
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The center of gravity method is used to minimize travel distances.
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True
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