Tuesday, June 27, 2017

Liberty University BUSI 411 Exam 3 solutions answers right

Liberty University BUSI 411 Exam 3 solutions answers right
How many versions: 12 different versions

Question 1 The quality control improvement tool that resembles a "fishbone" is:
Question 2 ISO certification is similar to the Baldrige Award in its emphasis on:
Question 3 A tool that depicts process variation graphically is a(n):
Question 4 Managers have obligations to a wide variety of stakeholders such as shareholders, employees, and customers. When considering outsourcing production to offshore suppliers, managers have to weigh: (I) cost benefits that might make shareholders wealthier. (II) quality issues that might make firms less productive and/or products riskier. (III) the investments already tied up in relationships with existing suppliers.
Question 5 Giving workers responsibility for quality improvements and authority to make changes is known as:
Question 6 Consider the following information: The number of runs up and down for the preceding data is:
Question 7 The chair of the operations management department at Quality University wants to construct a p­chart for determining whether the four faculty teaching the basic P/OM course are under control with regard to the number of students who fail the course. Accordingly, he sampled 100 final grades from last year for each instructor, with the following results: What are the .95 (5 percent risk of Type I error) upper and lower control limits for the pchart?
Question 8 Which of the following is associated with consumer's risk?
Question 9 A control chart used to monitor the fraction of defectives generated by a process is the:
Question 10 Which of the following is not a step in the quality control process?
Question 11 Inventory information for firm ABC: What is the expected inventory at the end of April 2008?
Question 12 Essentially, the output of aggregate planning is the:
Question 13 Which of the following is an input to aggregate planning?
Question 14 Moving from the aggregate plan to a master production schedule requires:
Question 15 Aggregate planning in the case of a high­volume product output business such as a restaurant is directed toward:
Question 16 The MRP input stating which end items are to be produced, when they are needed, and what quantities are needed, is the:
Question 17 Refer to this product tree: If 17 Ps are needed, and no on­hand inventory exists for any items, how many Cs will be needed?
Question 18 Which one of the following most closely describes net material requirements?
Question 19 The MRP input storing information on the status of each item by time period (e.g., scheduled receipts, lead time, lot size) is the:
Question 20 Under lot­for­lot, order sizes for component parts are essentially determined directly from which one of the following?
Question 21 Because courtesy is subjective, it cannot be considered a factor in service quality.
Question 22 Flexible acceptance sampling revises the sampling plan in response to actual results.
Question 23 In the master production schedule, production is planned for the next period whenever the available­to­promise quantity becomes negative.
Question 24 A bill of materials contains a listing of all the assemblies, parts, and materials needed to produce one unit of an end item.
Question 25 MRP, considering inventory position, bills of material, open purchase orders, and lead times guarantees a feasible production plan if the inputs to MRP are accurate.

64. A tool that is not used for quality management is ________.
65. The four dimensions of quality that are sometimes used to determine fitness for use of a product are ______.
66. A tool that depicts process variation graphically is a(n) _________.
67. Which isn't a cost of quality?
68. The Deming Prize was established by the _________.
69. Lost production time, scrap, and rework are examples of ________.
70. Warranty service, processing of complaints, and costs of litigation are examples of ________.
71. Costs of inspectors, testing, test equipment, and labs are examples of ________.
72. Loss of business, liability, productivity and costs are consequences of _______.
73. Quality planning and administration, quality training, and quality control procedures are examples of _______.
74. The purpose of the Malcolm Baldrige National Quality Award is to _______.
75. Fixing a problem will often cost money; to minimize these costs it is best to find and fix the problem _______.
76. Deciding how much to invest in the prevention of defects can be analyzed using ________.
77. The Baldrige award is based on seven categories. Which is not one of those?
78. ISO 9000 standards do not have a requirement for ________.
79. A quality circle is ________.
80. ISO 9000 currently requires _____ of a certified organization.
81. The quality control improvement tool which distinguishes between the "important few" and the "trivial many" is __________.
82. The quality control improvement tool that resembles a "fishbone" is ________.
83. TQM stands for:
84. Which of the following is an element of TQM?
85. Management behaviors supporting an organizational culture that encourages continuous improvement include which of the following?
(I) develop a vision statement for the organization
(II) develop a reward system that promotes the philosophy
(III) institute continuous training programs
(IV) make decisions that adhere to the philosophy
86. The tool that is useful in documenting the current process is:
87. The tool that is useful in the collection and organization of data is:
88. A quality improvement technique that involves the sharing of thoughts and ideas in a way that encourages unrestrained collective thinking is:
89. In order for TQM to be successful, it is essential that most of the organization be _________.
90. Which of the following raises quality risks?
91. Focusing attention on the most important problem areas is referred to as:
92. A chart showing the number of occurrences by category would be used in:
A. Pareto analysis
93. Cause-and-effect diagrams are sometimes called:
94. The process of identifying other organizations that are best at some facet of your operations, and then modeling your organization after them is known as:
95. Giving workers responsibility for quality improvements and authority to make changes is known as:
96. The typical difference between "quality circles" and "continuous improvement teams" is ________.
97. Which of the following is not a goal of process improvement?
98. Managers have obligations to a wide variety of stakeholders such as shareholders, employees and customers. When considering outsourcing production to offshore suppliers, managers have to weigh __.
I) Cost benefits that might make shareholders wealthier
II) Quality issues that might make firms less productive and/or products riskier
III) The investments already tied up in relationships with existing suppliers
99. Focusing a supply chain on ________________ is a modern way of ensuring high quality inputs and a ready supply of process-improvement ideas.
100. As regards quality risks, which of the following would be least likely to involve outsourcing to less-developed countries?
101. If customer satisfaction doesn't always lead to customer loyalty, firms may need to focus additional effort on __________ strategies.
102. Before a dimension of quality can be made operationally useful, it must be restated in some ___________ form.

1. Approving the effort that occurs during the production process is known as acceptance sampling.
True    False
 2. Statistical Process Control is the measurement of rejects in the final product.
True    False
 3. The optimum level of inspection occurs when we catch at least 98.6 percent of the defects.
True    False
 4. The optimum level of inspection minimizes the sum of inspection costs and the cost of passing defectives.
True    False
 5. Processes that are in control eliminate variations.
True    False
 6. High-cost, low-volume items often require careful inspection since we make them so infrequently.
True    False
 7. Low-cost, high-volume items often require more intensive inspection.
True    False
8. A lower control limit must by definition be a value less than an upper control limit.
True    False
 9. Attributes need to be measured, variable data can be counted.
True    False
 10. The amount of inspection we choose can range from no inspection at all to inspecting each item numerous times.
True    False
 11. The amount of inspection needed is governed by the costs of inspection and the expected costs of passing defective items.
True    False
 12. The purpose of statistical process control is to ensure that historical output is random.
True    False
 13. A process that exhibits random variability would be judged to be out of control.
True    False
 14. If a point on a control chart falls outside one of the control limits, this suggests that the process output is non-random and should be investigated.
True    False
 15. An x-bar control chart can only be valid if the underlying population it measures is a normal distribution.
True    False
 16. Concluding a process is out of control when it is not is known as a Type I error.
True    False
 17. An R value of zero (on a range chart) means that the process must be in control since all sample values are equal.
True    False
 18. Range charts are used mainly with attribute data.
True    False
 19. Range charts and p-charts are both used for variable data.
True    False
 20. A p-chart is used to monitor the fraction of defectives in the output of a process.
True    False
 21. A c-chart is used to monitor the total number of defectives in the output of a process.
True    False
 22. A c-chart is used to monitor the number of defects per unit for process output.
True    False
 23. Tolerances represent the control limits we use on the charts.
True    False
 24. "Process capability" compares "process variability" to the "tolerances."
True    False
 25. Control limits used on process control charts are specifications established by design or customers.
True    False
 26. Control limits tend to be wider for more variable processes.
True    False
 27. Patterns of data on a control chart suggest that the process may have non-random variation.
True    False
 28. The output of a process may not conform to specifications even though the process may be statistically "in control."
True    False
 29. Run tests are useful in helping to identify nonrandom variations in a process.
True    False
 30. Run tests give managers an alternative to control charts; they are quicker and cost less.
True    False
 31. Statistical process control focuses on the acceptability of process output.
True    False
 32. A run test checks a sequence of observations for randomness.
True    False
 33. Even if the process is not centered, the process capability index (indicated by Cpk) is very useful.
True    False
 34. The process capability index (indicated by Cpk) can be used only when the process is centered.
True    False
 35. Quality control is assuring that processes are performing in an acceptable manner.
True    False
 36. The primary purpose of statistical process control is to detect a defective product before it is shipped to a customer.
True    False
 37. The Taguchi Cost Function suggests that the capability ratio can be improved by extending the spread between LCL and UCL.
True    False
 38. The variation of a sampling distribution is tighter than the variation of the underlying process distribution.
True    False
 39. The sampling distribution can be assumed to be approximately normal even when the underlying process distribution is not normally distributed.
True    False
 40. Approximately 99.7% of sample means will fall within ± two standard deviations of the process mean if the process is under control.
True    False
 41. The best way to assure quality is to use extensive inspection and control charts.
True    False
 42. Control limits are based on multiples of the process standard deviation.
True    False
 43. Attribute data are counted, variable data are measured.
True    False
 44. The number of defective parts in a sample is an example of variable data because it will "vary" from one sample to another.
True    False
 45. Larger samples will require wider x-bar control limits because there is more data.
True    False
 46. When a process is not centered, its capability is measured in a slightly different way. The symbol for this case is Cpk.
True    False
 47. Range control charts are used to monitor process central tendency.
True    False
 48. An "up and down" run test uses the median as a reference point and measures the percentage above and below the median.
True    False
 49. "Assignable variation" is variation due to a specific cause, such as tool wear.
True    False
 50. Variation in a sample statistic collected from a process may be either random variation or assignable variation - or both.
True    False
 51. "Quality of conformance" is concerned with whether a product or service conforms to its specifications.
True    False
 52. The larger the process variation, the tighter the specifications should be.
True    False
 53. Type I and Type II errors refer to the magnitude of variation from the standard.
True    False
 54. The greater the capability ratio, the higher the rejects.
True    False
 55. Non-random variation is likely whenever all observations are between the LCL and UCL.
True    False
 56. Which of the following quality control sample statistics indicates a quality characteristic that is an attribute?
A. mean
B. variance
C. standard deviation
D. range
E. proportion
 57. A time-ordered plot of representative sample statistics is called a:
A. Gantt chart
B. SIMO-chart
C. Control Chart
D. Up-Down Matrix
E. Standard deviation table
 58. A control chart used to monitor the process mean is the:
A. p-chart
B. R-chart
C. x-bar chart
D. c-chart
E. Gantt chart
 59. A control chart used to monitor the fraction of defectives generated by a process is the:
A. p-chart
B. R-chart
C. x-bar chart
D. c-chart
E. Gantt chart
 60. A p-chart would be used to monitor _______.
A. average shrinkage
B. dispersion in sample data
C. the fraction defective
D. the number of defects per unit
E. the range of values
 61. A c-chart is used for:
A. means
B. ranges
C. percent defective
D. fraction defective per unit
E. number of defects per unit
 62. A control chart used to monitor the number of defects per unit is the:
A. p-chart
B. R-chart
C. x-bar chart
D. c-chart
E. Gantt chart
 63. A point which is outside of the lower control limit on an R-chart:
A. is an indication that no cause of variation is present
B. should be ignored because it signifies better than average quality
C. should be investigated because an assignable cause of variation might be present
D. should be ignored unless another point is outside that limit
E. is impossible since the lower limit is always zero
 64. If a process is performing as it should, it is still possible to obtain observations which are outside of which limits?
(I) tolerances
(II) control limits
(III) process variability
A. I
B. II
C. I and II
D. II and III
E. I, II, and III
 65. Which of the following relationships must always be incorrect?
A. Tolerances > process variability > control limits
B. Process variability > tolerances > control limits
C. Tolerances > control limits > process variability
D. Process variability > control limits > tolerances
E. Process variability <Tolerances<control limits
 66. Which of the following is not a step in the quality control process?
A. define what is to be controlled
B. compare measurements to a standard
C. eliminate each of the defects as they are identified
D. take corrective action if necessary
E. evaluate corrective action
 67. The probability of concluding that assignable variation exists when only random variation is present is:
(I) the probability of a Type I error
(II) known as the alpha risk
(III) highly unlikely
(IV) the sum of probabilities in the two tails of the normal distribution
A. I and II
B. I and IV
C. II and III
D. I, II, and IV
E. I, III, and IV
 68. _______ variation is a variation whose cause can be identified.
A. Assignable
B. Controllable
C. Random
D. Statistical
E. Theoretical
 69. A plot below the lower control limit on the range chart:
(I) should be ignored since lower variation is desirable
(II) may be an indication that process variation has decreased
(III) should be investigated for assignable cause
A. I and II
B. I and III
C. II and III
D. II only
E. I, II, and III
 70. A shift in the process mean for a measured characteristic would most likely be detected by a:
A. p-chart
B. x-bar chart
C. c-chart
D. R-chart
E. s-chart
 71. The range chart (R-chart) is most likely to detect a change in:
A. proportion
B. mean
C. number defective
D. variability
E. sample size
 72. The optimum level of inspection is where the:
A. cost of inspection is minimum
B. cost of passing defectives is minimum
C. total cost of inspection and defectives is maximum
D. total cost of inspection and defectives is minimum
E. difference between inspection and defectives costs is minimum
 73. The purpose of control charts is to:
A. estimate the proportion of output that is acceptable
B. weed out defective items
C. determine if the output is within tolerances/specifications
D. distinguish between random variation and assignable variation in the process
E. provide meaningful work for quality inspectors
 74. The process capability index (Cpk) may mislead if:
(I) the process is not stable.
(II) the process output is not normally distributed.
(III) the process is not centered.
A. I and II
B. I and III
C. II and III
D. II only
E. I, II and III
 75. A time-ordered plot of sample statistics is called a(n) ______ chart.
A. Statistical
B. Inspection
C. Control
D. SIMO
E. Limit
  86. The number of runs up and down for the data above is:
A. 3
B. 4
C. 5
D. 6
E. none of these
 87. The number of runs with respect to the sample median is:
A. 3
B. 4
C. 5
D. 6
E. none of these
  The following data occurs chronologically from left to right:
  
 88. The number of runs with respect to the sample median is:
A. 2
B. 3
C. 4
D. 5
E. none of these
 89. The number of runs up and down is:
A. 2
B. 3
C. 4
D. 5
E. none of these
  A design engineer wants to construct a sample mean chart for controlling the service life of a halogen headlamp his company produces. He knows from numerous previous samples that this service life is normally distributed with a mean of 500 hours and a standard deviation of 20 hours. On three recent production batches, he tested service life on random samples of four headlamps, with these results:
  
 90. What is the sample mean service life for sample 2?
A. 460 hours
B. 495 hours
C. 500 hours
D. 515 hours
E. 525 hours
 91. What is the mean of the sampling distribution of sample means when service life is in control?
A. 250 hours
B. 470 hours
C. 495 hours
D. 500 hours
E. 515 hours
 92. What is the standard deviation of the sampling distribution of sample means for whenever service life is in control?
A. 5 hours
B. 6.67 hours
C. 10 hours
D. 11.55 hours
E. 20 hours
 93. If he uses upper and lower control limits of 520 and 480 hours, what is his risk (alpha) of concluding service life is out of control when it is actually under control (Type I error)?
A. 0.0026
B. 0.0456
C. 0.3174
D. 0.6826
E. 0.9544
 94. If he uses upper and lower control limits of 520 and 480 hours, on what sample(s) (if any) does service life appear to be out of control?
A. sample 1
B. sample 2
C. sample 3
D. both samples 2 and 3
E. all samples are in control
  A Quality Analyst wants to construct a sample mean chart for controlling a packaging process. He knows from past experience that whenever this process is under control, package weight is normally distributed with a mean of twenty ounces and a standard deviation of two ounces. Each day last week, he randomly selected four packages and weighed each:
  
 95. What is the sample mean package weight for Thursday?
A. 19 ounces
B. 20 ounces
C. 20.6 ounces
D. 21 ounces
E. 23 ounces
 96. What is the mean of the sampling distribution of sample means when this process is under control?
A. 18 ounces
B. 19 ounces
C. 20 ounces
D. 21 ounces
E. 22 ounces
 97. What is the standard deviation of the sampling distribution of sample means for whenever this process is under control?
A. 0.1 ounces
B. 0.4 ounces
C. 0.5 ounces
D. 1 ounce
E. 2 ounces
 98. If he uses upper and lower control limits of 22 and 18 ounces, what is his risk (alpha) of concluding this process is out of control when it is actually in control (Type I error)?
A. 0.0026
B. 0.0456
C. 0.3174
D. 0.6826
E. 0.9544
 99. If he uses upper and lower control limits of 22 and 18 ounces, on what day(s), if any, does this process appear to be out of control?
A. Monday
B. Tuesday
C. Monday and Tuesday
D. Monday, Tuesday, and Thursday
E. none
  A Quality Analyst wants to construct a control chart for determining whether three machines, all producing the same product, are under control with regard to a particular quality variable. Accordingly, he sampled four units of output from each machine, with the following results:
  
 100. What is the sample mean for machine #1?
A. 15
B. 16
C. 17
D. 21
E. 23
 101. What is the estimate of the process mean for whenever it is under control?
A. 16
B. 19
C. 20
D. 21
E. 23
 102. What is the estimate of the sample average range based upon this limited sample?
A. 13.0
B. 4.33
C. 5.4
D. 4.2
E. 2.0
 103. What are the x-bar chart three sigma upper and lower control limits?
A. 22 and 18
B. 23.29 and 16.71
C. 23.5 and 16.5
D. 23.16 and 16.84
E. 24 and 16
 104. For upper and lower control limits of 23.29 and 16.71, which machine(s), if any, appear(s) to have an out-of-control process mean?
A. machine #1
B. machine #2
C. machine #3
D. all of the machines
E. none of the machines
  The Chair of the Operations Management Department at Quality University wants to construct a p-chart for determining whether the four faculty teaching the basic P/OM course are under control with regard to the number of students who fail the course. Accordingly, he sampled 100 final grades from last year for each instructor, with the following results:
  
 105. What is the sample proportion of failures (p) for Prof. D?
A. 0
B. .04
C. .11
D. .13
E. .16
 106. What is the estimate of the mean proportion of failures for these instructors?
A. .10
B. .11
C. .13
D. .16
E. .40
 107. What is the estimate of the standard deviation of the sampling distribution for an instructor's sample proportion of failures?
A. .0075
B. .03
C. .075
D. .3
E. .75
 108. What are the .95 (5% risk of Type I error) upper and lower control limits for the p-chart?
A. .95 and .05
B. .13 and .07
C. .1588 and .0412
D. .16 and .04
E. .1774 and .0226
 109. Using .95 control limits, (5% risk of Type I error), which instructor(s), if any, should he conclude is (are) out of control?
A. none
B. Prof. B
C. Prof. D
D. both Prof. B and Prof. D
E. all
  A Quality Analyst wants to construct a control chart for determining whether four machines, all producing the same product, are under control with regard to a particular quality attribute. Accordingly, she inspected 1,000 units of output from each machine in random samples, with the following results:
  
 110. What is the sample proportion of defectives for machine #1?
A. .023
B. .02
C. .0115
D. .0058
E. .005
 111. What is the estimate of the process proportion of defectives for whenever it is under control?
A. .08
B. .06
C. .04
D. .02
E. .01
 112. What is the estimate of the standard deviation of the sampling distribution of sample proportions for whenever this process is under control?
A. .016
B. .00016
C. .04
D. .0044
E. .00002
 113. What are the control chart upper and lower control limits for an alpha risk of .05?
A. .0272 and .0128
B. .0287 and .0113
C. .029 and .013
D. .0303 and .0097
E. .0332 and .0068
 114. For upper and lower control limits of .026 and .014, which machine(s), if any, appear(s) to be out-of-control for process proportion of defectives?
A. machine #3
B. machine #4
C. machines #3 and #4
D. machines #2 and #3
E. none of the machines
 133. Studies on a bottle-filling machine indicates it fills bottles to a mean of 16 ounces with a standard deviation of 0.10 ounces. What is the process specification, assuming the Cpk index of 1?
A. 0.10 ounces
B. 0.20 ounces
C. 0.30 ounces
D. 16.0 ounces plus or minus 0.30 ounces
E. none of the above
 134. Studies on a machine that molds plastic water pipe indicate that when it is injecting 1-inch diameter pipe, the process standard deviation is 0.05 inches. The one-inch pipe has a specification of 1-inch plus or minus 0.10 inch. What is the process capability index (Cpk) if the long-run process mean is 1 inch?
A. 0.50
B. 0.67
C. 1.00
D. 2.00
E. none of the above
 135. The specification limit for a product is 8 cm and 10 cm. A process that produces the product has a mean of 9.5 cm and a standard deviation of 0.2 cm. What is the process capability, Cpk?
A. 3.33
B. 1.67
C. 0.83
D. 2.50
E. none of the above
 136. The specifications for a product are 6 mm ± 0.1 mm. The process is known to operate at a mean of 6.05 with a standard deviation of 0.01 mm. What is the Cpk for this process?
A. 3.33
B. 1.67
C. 5.00
D. 2.50
E. none of the above
 137. Organizations should work to improve process capability so that quality control efforts can become more ________.
A. effective
B. efficient
C. necessary
D. unnecessary
E. widespread
 138. A process results in a few defects occurring in each unit of output. Long-run, these defects should be monitored with ___________.
A. p-charts
B. c-charts
C. x-bar charts
D. r-charts
E. o-charts
 139. When a process is in control, it results in there being, on average, 16 defects per unit of output. C-chart limits of 8 and 24 would lead to a _______ chance of a Type I error.
A. 67%
B. 92%
C. 33%
D. .03%
E. 5%
 140. When a process is in control, it results in there being, on average, 16 defects per unit of output. C-chart limits of 4 and 28 would lead to a _______ chance of a Type I error.
A. 67%
B. 92%
C. 33%
D. 0.3%
E. 5%
 141. The basis for a statistical process control chart is a(the) __________.
A. process capability
B. sampling distribution
C. control limit
D. sample range
E. sample mean
 1. MRP works best if the inventory items have dependent demand. 
2. Low level coding represents items less than $18 per unit.
3. Independent demand tends to be more 'lumpy' than dependent demand meaning that we need large quantities followed by periods of no demand.
4. Lumpy demand for components results primarily from the periodic scheduling of batch production.
5. MRP is used within most MRP II and ERP systems.
6. The master production schedule states which end items are to be produced, in addition to when and how many.
7. Net requirements equal gross requirements minus safety stock.
8. The master schedule needs to be for a period long enough to cover the stacked or cumulative lead time necessary to produce the end items.
9. Initially, a master production schedule - the output from MRP - may not represent a feasible schedule.
10. MRP, considering inventory position, bills of material, open purchase orders and lead times guarantees a feasible production plan if the inputs to MRP are accurate.
11. The bill of materials indicates how much material will be needed to produce the quantities on a given master production schedule.
12. A bill of materials contains a listing of all the assemblies, parts, and materials needed to produce one unit of an end item.
13. The bill of materials contains information on lead times and current inventory position on every component required to produce the end item.
14. The inventory records contain information on the status of each item by time period.
15. An assembly-time chart indicates gross and net requirements taking into account the current available inventory.
16. MRP II did not replace or improve the basic MRP.
17. The gross requirements at one level of an MRP plan determine the gross requirements at the next lower level continuing on down to the lowest levels shown on the bill of material.
18. The gross requirements value for any given component is equal to the net requirements of that component's immediate parent multiplied by the quantity per parent.
19. The term pegging refers to identifying the parent items that have generated a given set of material requirements for a part or subassembly.
20. A net-change MRP system is one that is updated periodically but not less frequently than once a week.
21. One reason that accurate bills of material are important is that errors at one level become magnified at lower levels because of the multiplication process used by MRP.
22. A regenerative MRP system is one that is updated continuously - every time there is a schedule change.
23. One of the primary output reports of MRP concerns changes to planned orders.
24. Safety time is sometimes used in MRP rather than safety stock quantities.
25. Lot-for-lot ordering in MRP provides coverage for some predetermined number of periods using forecasted demand to extend beyond the orders already received for those periods.
26. MRP output reports are divided into two main groups - daily and weekly.
27. In MRP, EOQ models tend to be less useful for materials at the lowest levels than for upper level assemblies of the bill of materials since higher-level assemblies have larger dollar investments.
28. Load reports show capacity requirements for departments or work centers which may be more or less than the capacity available in that work center.
29. ERP began in manufacturing organizations but has spread into service organizations.
30. MRP II is simply an improved version of MRP that processes faster and can plan for a larger number of end items.
31. Lot-for-lot ordering in MRP eliminates the holding costs for parts that are carried over to other periods.
32. Capacity requirements planning (CRP) is an important feature in MRP+.
33. Project Management approaches can help in a conversion to an ERP system.
34. As long as a forecast is plus or minus 10%, MRP works well.
35. ERP represents an expanded effort to integrate standardized record-keeping that shares information among different areas of an organization.
36. Back flushing takes place after the production has been completed.
37. Before a schedule receipt can take place, and order must be placed with a vendor.
38. MRP really doesn't apply to services since raw material isn't required.
39. ERP implementation requires support and a direct mandate from the CEO because it impacts so many different functional areas.
40. ERP automates the tasks involved in performing a business process, such as order fulfillment and financial reporting.
41. Which of the following most closely describes dependent demand?
A. demand generated by suppliers
B. estimates of demand using regression analysis of independent variables
C. derived demand
D. demands placed on suppliers by their customers
E. net material requirements
42. ERP implementation probably won't require:
A. cross functional teams
B. just a few weeks to install
C. intensive training
D. high funding for both initial cost and maintenance
E. frequent upgrades after installation
43. A computer-based information system designed to handle ordering and scheduling of dependent-demand inventories is:
A. computer aided manufacturing (CAM)
B. computer integrated manufacturing (CIM)
C. economic order quantity (EOQ)
D. material requirements planning (MRP)
E. economic run size (ERS)
44. The development and application of MRP depended upon two developments: (1) the recognition of the difference between independent and dependent demand, and (2):
A. computers
B. development of the EOQ model
C. inventory control systems
D. blanket purchase orders
E. the internet
45. The output of MRP is:
A. gross requirements
B. net requirements
C. a schedule of requirements for all parts and end items
D. inventory reorder points
E. economic order quantities and reorder points
46. Which one of the following is not an input in an MRP system?
A. planned-order schedules
B. bill of materials
C. master production schedule
D. inventory records
E. All are inputs.
47. The MRP input stating which end items are to be produced, when they are needed, and what quantities are needed, is the:
A. master schedule
B. bill-of-materials
C. inventory-records
D. assembly-time chart
E. net-requirements chart
48. In an MRP master schedule, the planning horizon is often separated into a series of times periods called:
A. pegging
B. lead times
C. stacked lead times
D. time buckets
E. firm, fixed and frozen
49. The MRP input listing the assemblies, subassemblies, parts, and raw materials needed to produce one unit of finished product is the:
A. master production schedule
B. bill-of-materials
C. inventory-records
D. assembly-time chart
E. net-requirements chart
50. A visual depiction of the subassemblies and components that are needed to produce and/or assemble a product is called a(n):
A. assembly time chart
B. product structure tree
C. MRP II
D. pegging
E. Gantt chart
51. The MRP input storing information on the status of each item by time period (e.g., scheduled receipts, lead time, lot size) is the:
A. master production schedule
B. bill-of-materials
C. inventory-records
D. assembly-time chart
E. net-requirements chart
52. Which one of the following most closely describes net material requirements?
A. gross requirements - amount on-hand - scheduled receipts
B. gross requirements - planned receipts
C. gross requirements - order releases + amount on-hand
D. gross requirements - planned order releases
E. gross requirements - amount on-hand + planned order releases
53. In MRP, "scheduled receipts" are:
A. identical to "planned-order receipts"
B. identical to "planned-order releases"
C. open orders (that is, ordered before the first time bucket, but not delivered yet)
D. "net requirements"
E. available to promise inventory
54. In MRP, under lot-for-lot ordering, "planned-order receipts" are:
A. identical to "scheduled receipts"
B. identical to "planned-order releases"
C. open orders (that is, ordered before the first time bucket, but not delivered yet)
D. "gross requirements"
E. available to promise inventory
55. Under lot-for-lot, order sizes for component parts are essentially determined directly from which one of the following?
A. gross requirements
B. net requirements
C. economic order quantity
D. gross requirements - net requirements
E. net requirements - amount on-hand
56. In MRP, the gross requirements of a given component part are calculated from:
A. net requirements + amount on-hand.
B. gross requirements of the immediate parent.
C. planned orders of the end item.
D. net requirements of end item.
E. planned orders of the immediate parent.
57. The identification of parent items is called:
A. Paternity
B. Pegging
C. Requirement I.D.
D. Relationship tracking
E. Master Scheduling
58. Periodic updating of an MRP system to account for all changes which have occurred within a given time interval is called:
A. pegging
B. planned order release
C. net change
D. regenerative
E. exception report
59. An MRP system whose records are updated continuously is referred to as a(n):
A. regenerative system
B. batch-type system
C. Plossl-Wright system
D. net-change system
E. gross-change system
60. Which is true of a net-change system?
A. It is a batch-type system which is updated periodically.
B. It is usually run at the beginning of each month.
C. The basic production plan is modified to reflect changes as they occur.
D. It is used to authorize the execution of planned orders.
E. It indicates the amount and timing of future changes.
61. Which one of the following most closely describes the MRP approach that is used for components or subassemblies to compensate for variations in lead time?
A. pegging
B. safety stock
C. increased order sizes
D. safety time
E. low-level coding
62. Which of the following lot sizing methods does not attempt to balance ordering (or setup) and holding costs?
A. economic order quantity
B. economic run size
C. lot-for-lot
D. part-period
E. all of the above
63. When MRP II systems include feedback, they are known as:
A. MRPIII
B. Enterprise resource planning
C. Circular MRP
D. Feasible MRP
E. Closed Loop MRP
64. The multiplication process used by MRP to determine lower level requirements is called:
A. time-phasing
B. pegging
C. netting
D. projecting
E. exploding
65. _______ is choosing how many to order or make.
A. Quantity determination
B. Package sizing
C. Lot sizing
D. Grouping
E. Aggregation
66. Which of the following is not usually necessary in order to have an effective MRP system?
A. a computer and software
B. an accurate bill of materials
C. lot-for-lot ordering
D. an up-to-date master schedule
E. integrity of file data
67. The _________ of ERP makes it valuable as a strategic planning tool.
A. Internet base
B. Rapid Batch capability
C. Employee focus
D. Real-time aspect
E. Database structure
68. A recent effort to expand the scope of production resource planning by involving other functional areas in the planning process has been:
A. material requirements planning
B. capacity requirements planning
C. manufacturing resources planning
D. Just-In-Time planning
E. multifunctional relationships planning
69. Which statement concerning MRP II is false?
A. It is basically a computerized system.
B. It can handle complex planning and scheduling quickly.
C. It involves other functional areas in the production planning process.
D. It involves capacity planning.
E. It produces a production plan which includes all resources required.
70. Which of these items would be most likely to have dependent demand?
A. Xbox batteries
B. toy trains
C. flowers
D. chocolate chip cookies
E. wrist watches
71. Which of these products would be most likely to have dependent demand?
A. refrigerators
B. automobile engines
C. televisions
D. brownies
E. automobiles

Refer to this product-tree:
  
 78. If 17 Ps are needed, and no on-hand inventory exists for any items, how many Cs will be needed?
A. 8
B. 16
C. 136
D. 204
E. 272
79. If 17 Ps are needed, and on-hand inventory consists of 10 As, 15 Bs, 20 Cs, 12 Ms, and 5 Ns, how many Cs are needed?
A. 48
B. 144
C. 192
D. 212
E. 272
80. If 40 Ps are needed, and on-hand inventory consists of 15 Ps and 10 each of all other components and subassemblies, how many Cs are needed?
A. 340
B. 350
C. 380
D. 400
E. 590
 81. What is the net requirement for Dark Chocolate Truffles to fill this order?
A. 100
B. 140
C. 150
D. 180
E. 200
82. When should an order for Carved Chocolate Eggs be released?
A. at the start of week 2
B. at the start of week 3
C. at the start of week 4
D. at the start of week 5
E. at the start of week 6
83. How many Dark Chocolate Eggs should be ordered?
A. 310
B. 450
C. 500
D. 550
E. 600
84. If the firm is using a fixed period lot size of two periods, what is the order size for the first order?
A. 120
B. 200
C. 280
D. 160
E. 150
85. Which of the following represents an attempt to balance the benefits of stability against the benefits of responding to new information?
A. safety stock
B. safety time
C. bills of material
D. time fences
E. fixed-period lot sizing
86. Comparing known and expected capacity requirements with projected capacity availability is the job of _______.
A. planned releases
B. load reports
C. lot sizing
D. work loading
E. time fencing
87. ERP's primary value comes from applications ________.
A. deployment
B. development
C. interfaces
D. integration
E. networking
88. Net requirements for component J are as follows: 60 units in week 2, 40 units in week 3, and 60 units in week 5. If a fixed-period, two-period lot-sizing method is used, what will be the quantity of the first planned receipt?
A. 60 units
B. 120 units
C. 180 units
D. Cannot be determined
E. None of the above

89. Net requirements for component J are as follows: 60 units in week 2, 40 units in week 3, and 60 units in week 5. If a fixed-period, three-period lot-sizing method is used, what will be the quantity of the first planned receipt?
A. 60
B. 100
C. 160
D. Cannot be determined
E. None of the above

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