1. 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
2. Which of the following is one of Dr. Eli Goldratt’s rules of production
scheduling for optimized production technology?
• An hour saved at a bottleneck operation does not increase the process flow.
• If you lose an hour at a bottleneck it is better than making scrap.
• Do not allow bottlenecks to govern the flow of the line.
• Utilization and activation of a resource are not the same.
3. Which is the one correct value stream principle?
• Look for efficiencies in the factory, office, physical, procedural, and
• Eliminate waste that stops, slows down, or diverts the value stream.
• Concentrate on speeding up value-adding operations rather than removing
• Keep the value stream moving at minimum velocity.
4. Which production process term best describes the situation when activities
in a stage of production must stop because there is no work?
5. Which of the following is an element that addresses elimination of waste
under lean production?
• Kanban production control system
• Production ahead of demand
• Minimized run times
• Group plant loading technology
6. Which of the following is an analytical tool used in Six-Sigma quality
• Gantt charts
• Pareto charts
• Tree charts
• Pedigree charts
7. Which of the following is usually included as an inventory holding cost?
• Order placing
• Quantity discounts
• Typing up an order
8. Which of the following is a characteristic that can be used to guide the
design of service systems?
• Services are all similar.
• Services businesses are inherently entrepreneurial.
• Quality work means quality service.
• Services cannot be inventoried.
9. Which of the following is considered an organizational blueprint, which
prescribes the quantity and time frame for when each end product will be
• MRP (Material Requirements Plan)
• ERP (Enterprise Resource Planning)
• MPS (Master Production Schedule)
• WBS (Work Breakdown Structure)
10. 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?
11. The ability to rapidly and inexpensively switch production from one product
to another enables which of the following:
• Economies of shape
• Economies of size
• Economies of scale
• Economies of scope
12. Which of the following is a cost impact and payoff analysis tool from the
operations consulting tool kit?
• Statistical tools
• Decision trees
• Work sampling
• Gap analysis
13. Which of the following is a major factor that distinguishes service design
and development from manufacturing design and development?
• The service package has the same legal protection available to manufactured
• Manufacturing is far more capital intensive than services.
• The service process and service product can be developed independently.
• The service package is the major output of the development process.
14. In a Gantt chart the vertical axis represents which of the following?
15. A project can be segmented into which of the following?
• Work packages
• Success markers
16. Which of the following is considered a major process flow structure?
• Lead Time
• Lean Manufacturing
17. 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
• Certification is sought by any firm assuming they pay annual dues.
• 2nd Party – where a customer audits its supplier
• 3rd Party – where a qualified national or international standards/certifying
agency serves as an auditor
• 1st Party – where a firm audits itself against ISO standards
18. Which of the following is ISO 14000 primarily concerned with?
• Quality management
• Time management
• Continuous improvement management
• Environmental management
19. What is the starting point in developing a capacity plan for a health care
• Determining the effective capacity over time
• Estimating design capacity
• Forecasting patient demand for a reasonable length of time
• Discovery of the bottleneck operation
20. In most cases, demand for products or services can be broken into several
components. Which of the following is considered a component of demand?
• Level elements
• Future elements
• Past elements
• Cyclical elements
21. Design for manufacturing and assembly delivers product improvements by
emphasizing which of the following:
• Reducing product quality during the assembly process
• Designing products so they can be manufactured by a virtual factory
• Reducing equipment in the production process
• Simplification of the product by reducing the number of separate parts
22. Which of the following is one of the principles of reengineering?
• Quality at the source
• Do not select suppliers on the basis of price alone.
• Have those who use the output of a process perform the process.
• Leverage high cost employees with lower cost employees.
23. 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?
• Risk hedging
• Forward looking
24. According to the theory of constraints, which of the following can be a
capacity-constrained resource (CCR)?
• Product design
• Inoperable equipment
• An employee
• A customer
25. According to the theory of constraints, which of the following financial
measurements can be used to measure the firm’s ability to make money?
• Operating expenses
• Return on investment
26. Deming’s PDCA (plan, do, check, and act) cycle underlies what inherent Six
• Continuous improvement
• Control charting
• Standard deviation
• Project management
27. 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:
• Redesign the process in order to mitigate the bottlenecks.
• Utilize SQC (statistical quality control).
• Introduce controls within the process.
• Slow down production rates until the process is in control.
28. 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
29. During the implementation of a project, which of the following should be
the primary focus of a consulting firm?
• The correct project software
• Application of the learning curve theory
• Tools and materials availability
• People management skills
30. 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
• Inventory levels and economic conditions
• Market demand and subcontractor capacity
• Current physical capacity and current workforce
• Competitor behavior and current workforce