CPIM.eco Questions&Answers

Question Number: 910 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work Backlogs should be held: A) on the shop floor. B) at the customer. C) in production control. D) in the warehouse. The correct answer is: C

By keeping the backlogs in production control, the floor will not be overloaded with work which cannot be completed, thereby rendering due dates invalid on the floor. When the shop is overloaded, product gets moved more frequently and changeovers become more frequent, reducing the available capacity.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 911 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work A "healthy" work-in-process inventory can be generally defined by which of the following statements? I. Three days II. Twenty five percent of finished goods III. The minimum amount needed to smooth fluctuations in input

A) I B) II C) III D) I and III The correct answer is: C

Work-in-process is intended to allow work centers to operate even with fluctuations in input to the work center.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 912 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work The time period which exists between the completion of one operation and the start of the next operation is: A) wait time. B) setup time. C) interoperation time. D) preoperation time. The correct answer is: C

Interoperation time includes move time, queue time, and wait time.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 913 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work Which of the following is associated with backward scheduling? A) Finite loading B) Infinite loading C) Interoperation sequencing D) Dispatch lists The correct answer is: B

With infinite loading, the load on the plant is determined by the customer due date, scheduled backward without regard to standard capacity available to perform the work. Capacity is then reviewed for potential improvements through overtime, subcontracting, etc.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 914 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work Which of the following is/are needed in order to calculate manufacturing lead-times? I. Routing s II. Interoperation times III. Component purchase lead time

A) I and II B) I and III C) II and III D) I, II, and III The correct answer is: A

Component purchase lead time is not included in the manufacturing lead time. Manufacturing lead time would include order preparation time, queue time, setup time, run time, etc.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 915 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work Which of the following are true regarding operations scheduling? A) It is a short-range scheduling technique B) It is a medium-range scheduling technique C) It is a long-range scheduling technique D) None of the above The correct answer is: A

It is a short-range scheduling technique. The routing file contains the operation sequencing.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 916 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work Given the following information for a work center:

Machines = 3 Operations per shift = 2 Shifts per day = 1 Days worked per week = 5 Hours worked per shift = 8 Machine utilization = 80%

Operator efficiency = 90% If the hours worked were increased to a 10 hour shift from an 8 hour shift, what would the available capacity be for the week?

A) 100 B) 108 C) 120 D) 150 The correct answer is: B

Available weekly capacity would be: 3 machines * 50 hours per week * .80 machine utilization * .90 operator efficiency = 108.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 917 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work Given the following information for a work center:

Machines = 3 Operations per shift = 2 Shifts per day = 1 Days worked per week = 5 Hours worked per shift = 8 Machine utilization = 80% Operator efficiency = 90% If changing the hours per shift to 10 from 8 creates 108 standard hours, which of the following actions would have the same effect?

A) Increase machine utilization to 90% B) Increase operator efficiency to 100% C) Change to 6 days per week D) None of the above The correct answer is: D

None of the answers give the available capacity of 108 which changing to a 10 hour shift does. This is calculated by multiplying 3 machines * 50 hours * .80 machine utilization * .90 operator efficiency. Answer A = 97.2 hours Answer B = 96 hours Answer C = 103.7 hours.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 918 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work Which of the following is affected when input does not match output?

I. Lot sizes II. Lead times III. Queue sizes

A) I and II B) I and III C) II and III D) I, II, and III The correct answer is: C

If input is greater than output, queues and lead times will increase; if output is greater than input, they will decrease.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 919 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work Which of the following best describes back scheduling? A) Start with the current date and calculate the order due date by the time of each operation B) Rescheduling jobs where the input is greater than output C) Starting with the order due date, calculate the start date of the order by going back through each operation D) Eliminating capacity availability by working back through the operations The correct answer is: C

Backward scheduling starts with the order due date and schedules back through each operations' due date to arrive at a start date for the order.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 920 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work When orders are assigned to the factory without any restrictions on capacity, this is known as: A) smoothed capacity load. B) overloade d. C) unsmoothed load. D) lumpy capacity load. The correct answer is: C

When orders are placed on the factory without restriction, the load will be very inconsistent until the load is leveled (smoothed). In cases where orders exceed capacity, capacity must be found or the orders must be moved.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 921 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work A capacity simulation allows a planner to: A) simulate additional work centers in the factory. B) simulate new designs into the factory. C) do rough cut planning with a simulated master production schedule. D) change capacity within the production environment. The correct answer is: C

With capacity simulation, a planner can simulate a master production schedule into existing capacity to test the viability of achieving the plan.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 922

EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work Product A can be produced at the rate of 60 per hour or one each minute. This time is known as the: A) standard rate. B) cycle time. C) capacity rate. D) setup time. The correct answer is: B

The cycle time is the time between the completion of two units of production.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 923 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work

Which of the following is synonymous with detailed scheduling? A) Infinite loading B) Operations scheduling C) GANTT charts D) Pert charts The correct answer is: B

Detailed operations scheduling places start and completion dates on each manufacturing operation to ensure the customer due date will be met.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 924 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work The primary purpose of a dispatch list is to display the:

A) overloaded work centers. B) priority sequence of manufacturing overload. C) outbound trucking schedule. D) inventory amounts by location. The correct answer is: B

Dispatch lists display the priority sequences of the manufacturing order. The "list" is printed in hard copy or displayed on a terminal and contains information regarding the priority, location, and operation required. It is generally produced daily in work center sequence.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 925 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work Job ABC will take 100 standard hours to produce. Using the following information, how many equivalent days will it take to complete the job? (Round to the nearest whole day) Machines

=2 Number of operations =2 Shifts per day = 1 Hours per shift =8 Machine utilization = 90% Operator efficiency = 90%

A) 6 B) 7 C) 8 D) 9 The correct answer is: C

There are 12.96 available hours per day (2 machines * 8 hours per day * .90 utilization * .90 efficiency). 100 hours needed/12.96 hours available = 7.72 or 8 days

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 926 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work An order for 1000 parts is due 2 weeks from now. The historical scrap factor for this part is 5%. Based on this, the expected completion quantity will be: A) 950. B) 10 00 . C) 10 50 . D) 11 00 . The correct answer is: A The expected completion quantity is the planned quantity expected, less the expected scrap. In this question, the answer would be: 1000 (1000 * .05) = 950

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 927 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work Which of the following best describes a focused factory? A) A plant where all personnel understand the mission and objectives B) A plant which is established to produce a limited mix of items C) A plant which has embraced a zero-defect program D) A plant which concentrates on one job at a time The correct answer is: B

A focused factory has been set up to run a limited number of processes or products to allow for an efficient flow of materials. This can be focused within a larger physical factory.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 928 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work Which of the following best describes the forward scheduling technique? I. Begins with a known start date and calculates a completion date for an order II. Dates generated are earliest start dates for each operation III. Orders are loaded for each operation, first to last

A) I and II B) I and III C)

II and III D) I, II, and III The correct answer is: D

Forward scheduling begins with a start date and applies the order to each operation to calculate the completion date. If this date is beyond the customer's need date, then some action must be taken. Forward scheduling accounts for capacity load at the time of the order.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 929 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work Which of the following best defines a gateway work center? A) The work center which is the bottleneck B) The work center with the first operation C) The work center just before the final assembly

D) The work center which is last The correct answer is: B

The gateway work center is the starting work center.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 930 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work In the XYZ widget company, every piece of a given lot must be finished before any piece of the lot is processed at the following work center. This company is running a(an): A) gapped schedule. B) finite schedule. C) detailed operation schedule. D) infinite schedule.

The correct answer is: A

A gapped schedule is run when every piece in a lot is finished before being processed into the next operation. This causes gaps in time between the end of one operation and the beginning of the next operation.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 931 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work Which of the following statements are true regarding infinite loading? I. The technique is valid although the name is misleading II. The technique is now known as capacity requirements planning III. It is also known as operations scheduling

A)

I and II B) I and III C) II and III D) I, II, and III The correct answer is: A

Capacity requirements planning or infinite loading is based on the customer due date. Operations scheduling plans each operation to arrive at a completion date based on a finite capacity.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 932 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work Which of the following statements are true regarding lead time? I. An overloaded factory floor increases lead time.

II. Lead time will decrease when input equals output. III. Lead time will decrease if output exceeds input.

A) I and II B) I and III C) II and III D) I, II, and III The correct answer is: B

An overloaded factory will increase lead time while output exceeding input will decrease the lead time. However, lead time will remain constant if input = output.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 933

EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work The process of spreading orders or rescheduling operations so the work is distributed evenly is known as: A) operations scheduling. B) infinite loading. C) load leveling. D) backward scheduling. The correct answer is: C

Load leveling involves spreading orders or re-scheduling operations so the work is distributed evenly and can be achieved. This ensures the factory is not overloaded for two weeks and idle the next two, for example.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 934

EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work In a sequence of operations without alternate routings, capacity and the whole sequence of operations can be scheduled by the operation with the least capacity. This operation is known as the: A) gateway operation. B) limiting operation. C) downstream operation. D) sequencing operation. The correct answer is: B

The limiting operation, also known as the bottleneck operation, can be used to schedule the whole sequence of operations since work can only proceed as fast as the slowest point.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 935 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work

In a manual rescheduling process, which of the following are true? I. MRP provides information regarding which order to reschedule. II. Planners or other personnel make the changes necessary. III. Scheduled receipts are manually changed.

A) I and II B) I and III C) II and III D) I, II, and III The correct answer is: D

Manually rescheduling is the usual method for rescheduling scheduled receipts based on information MRP has provided.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 936 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work Which of the following best describes move time? A) Time expended when a job is in transit between operations B) Time actually spent by a job in transit between operations including waiting for the operation to begin C) Interoperation time D) Material handling time in the warehouse The correct answer is: A

The time a job spends in transit between operations, excluding wait time, is the move time.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 937 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work In order to determine the operation duration, which of the following would be included? I. Setup time II. Wait time III. Run time

A) I and II B) I and III C) II and III D) I, II, and III The correct answer is: B

Wait time would not be included as part of the operation duration, but setup time and run time would be.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 938 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work In a job shop environment, which of the following are true? I. Less work in process inventory increases lead times II. Longer queues increase lead times III. More work-in-process means increased lead times

A) I and II B) I and III C) II and III D) I, II, and III

The correct answer is: C

The more work held on the production floor, the longer the lead time will be. This happens because jobs begin to get moved to meet customer demands. The result is that parts get moved and shuffled, reducing capacity.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 939 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work Using the critical ratio, jobs which are ahead of schedule carry a ratio of: A) greater than 1.0. B) less than 1.0. C) equal to 1.0. D) None of the above The correct answer is: A

In the critical ratio, the date required minus the current date is divided by the time required to complete the job. Therefore, if the demand time is greater than time required to complete, the job would be ahead. For example: CR = (Date required -Current date)/(Days required to complete a job) CR = 40/30 CR = 1.3 The ratio of 1.3 represents a job which is ahead of schedule, as there are 40 days left until the due date but only 30 days are required to complete the job.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 940 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work Using critical ratio, jobs which are behind schedule carry a ratio of: A) greater than 1.0. B) less than 1.0.

C) equal to 1.0. D) None of the above The correct answer is: B

CR = (Date required -Current date)/(Days required to complete a job) For example, if the date required is 30 days from now and it takes 40 days to complete the job, the ratio would be 30/40 = .75 (or less than one).

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 941 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work Which of the following will be true if the cumulative lead time of a product is longer than the MPS planning horizon? A) Orders for long lead time components will be released late. B) Orders for long lead time components will be released early.

C) Order point can be used for the longest lead time items without affecting priorities. D) There is no impact. The correct answer is: A

The orders for the long lead time components will be released late as visibility will not be far enough into the future.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 942 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work All of the following are true regarding a daily dispatch list EXCEPT: A) Due dates are taken from MPS B) Due dates from MRP may be modified C) It allows the centralization of shop floor control

D) It is generated in priority sequence The correct answer is: A

Due dates are provided by MRP which maintains the priority, not MPS.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 943 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work When the Master Production Schedule is overstated, priorities may become unclear because: I. Valid due dates will not be listed on the dispatch lists II. Quantities needed will not be valid III. Dispatch lists will have split routings

A) I and II B) I and III C) II and III D) I, II, and III The correct answer is: A

When the Master Production Schedule is overstated, due dates will become invalid and dates will be missed. Also, the quantities needed will not be valid as partial orders will be completed to partially satisfy customer demands.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 944 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work In a job shop environment, which of the following elements of lead-time is generally the greatest?

A) Queue time B) Run time C) Setup time D) Move time The correct answer is: A

Queue time is the time a job waits at a work center before work on setups are performed on the job. By reducing queue time, manufacturing lead time can be shortened. This is quite often the longest portion of the lead time in a factory.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 945 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work The plant manager is responsible for: I. Manufacturing to meet a schedule

II. Changing the schedule III. Ensuring raw materials arrive in time

A ) I B) I and III C) I and II D) II and III The correct answer is: A

The plant manager is responsible for ensuring products are produced to meet the schedule in the priority assigned with the best quality possible at the least cost possible.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 946 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work Which of the following statements are generally included in a routing? I. Operations to be performed and their sequence II. Work centers involved in manufacturing III. The raw materials needed to produce

A) I and II B) I and III C) II and III D) I, II, and III The correct answer is: A

Routings include statement I and II as well as setup and run time. They often include inspection operations, testing, and tooling information. Statement III would be included in the bill of materials although most existing software combines the bill of materials and the routing.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 947 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work Generally speaking, which of the following would represent the largest portion of lead time? A) Run time B) Move time C) Queue time D) Setup time The correct answer is: C

Queue time is generally the largest portion of lead time. If this can be reduced, lead time can be reduced.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 948 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work Which of the following could be done to reduce manufacturing lead times? I. Add a shift to the operation II. Improve setup times III. Reduce queues in front of work centers

A) I and II B) I and III C) II and III D) I, II, and III The correct answer is: D

All of the answers, if implemented, would reduce lead times, some more quickly than others.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 949 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work Which of the following are generally in the shop packet? I. Operation sheets II. Pick lists III. Move tickets

A) I and II B) I and III C) II and III

D) I, II, and III The correct answer is: D

The shop packet generally contains all of the above items plus others, such as engineering drawings, manufacturing orders, and labor tickets.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 950 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work A job status report would show: A) costs accumulated for the job. B) the input and output of every work center. C) the plan for completing a job and the progress versus the plan. D) the job priority at each work center.

The correct answer is: C

A job status report shows the actual progress of a job versus the completion date.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 951 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work Which of the following would be included in the Just-in-Time philosophy? I. If it doesn't add value, it's waste; eliminate it II. Single minute exchange of die (SMED) III. Zero inventories

A) I and II

B) I and III C) II and III D) I, II, and III The correct answer is: D

All of the answers fit into a Just-in-Time process. Setup reduction, reducing inventories until they are gone, and waste elimination are all goals.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 952 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work Which of the following terms or philosophies are synonymous with zero inventories? I. Just-inTime II. Stockless production

III. Zero defects

A) I and II B) I and III C) II and III D) I, II, and III The correct answer is: A

Just-in-Time, stockless production, and zero inventories try to achieve excellence in manufacturing through the elimination of waste, zero defect quality programs, and inventories only as needed. Zero defects is a component of zero inventories.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 953 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work A job is due 7 work days from today with 7 hours per day available to work on the job. The amount of work left to complete the job requires 18 hours. Using the slack time rule, what is the priority on this job?

A ) 6 7 B ) 4 9 C ) 3 1 D ) 1 8

The correct answer is: C

The slack time rule establishes the priority on a job based on the "slack time" available. The lower the slack time, the more critical the job. The formula in this example: 7 days * 7 hrs/day = 49 49 -18 hours needed to complete the job = 31

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 954 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work

Using the shortest process time rule, which of the following will occur? I. The most jobs per time period will be processed II. Average lateness of job will be high III. Some jobs will be very late

A) I and II B) I and III C) II and III D) I, II, and III The correct answer is: B

The shortest process time rule (SPT) will sequence jobs in order from shortest to longest process time. The average lateness of the jobs will be minimized but some jobs (those with the largest process time) will be very late.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 955 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work A primary operation is best defined as: A) an alternate operation used to manufacture. B) a manufacturing operation normally used as part of a routing to produce a part. C) the first operation in a sequence. D) the first work center to consume a part. The correct answer is: B

A primary operation is any operation normally used as part of the routing. It is not an alternate and may be the first operation, but not always.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 956 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work Lot traceability of a product from raw component to the customer would be worth maintaining in which of the following industries? I. Toy industry II. Food manufacturing/distribution III. Pharmaceutical manufacturing

A) I and II B) I and III C) II and III D) I, II, and III The correct answer is: D

Most industries can benefit from lot tracing to reduce the cost of recall and negative publicity. The transaction costs of maintaining the system can be expensive, however.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 957 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work The capacity required to produce a product can be calculated by which of the following? A) Required quantity * actual hours B) Required quantity * standard hours C) Required quantity * machine available D) Required quantity * machine efficiency The correct answer is: B

Capacity required = required quantity * standard hours to produce the product.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 958 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work The line should be balanced in an assembly operation in order to: A) allow operators to change assembly lines. B) maximize line output. C) develop labor standards for costing parts. D) minimize the necessary parts stored on the line. The correct answer is: B

Line balancing in an assembly operation distributes the work in order to maximize the lines' output. Each operation in the line would take approximately the same amount of time to complete. This would minimize the work in process and create no bottlenecks in the line.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 959 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work A critical ratio of 0.75 means: A) a job is ahead of schedule by 25%. B) a job is ahead of schedule by 75%. C) a job is behind schedule by 25%. D) a job is behind schedule by 75%. The correct answer is: C

Critical ratio is a measure of whether a job is on schedule with the value of 1.00 being on schedule. To calculate the critical ratio, the following formula is used: (Due date -Current date)/(Lead time remaining to complete job) If the time remaining until the due date is less than the lead time remaining to produce the part, then the job is behind.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 960 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work There are three jobs to be completed on the schedule with the following critical ratios associated with the jobs as follows:

Job 123 0.75 Job 456 0.95 Job 789 1.10 Which job should be processed first?

A) Job 123 B) Job 456 C)

Job 789 D) Not enough information to decide The correct answer is: A

The job with the smallest critical ratio should be worked on first as it is the furthest behind schedule. While some extenuating circumstances may force you to run another job first, the furthest behind would generally have priority.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 961 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work Which of the following elements of manufacturing lead time is generally the longest? A) Move time B) Setup time C) Run time

D) Queue time The correct answer is: D

Generally, only 10 to 20 percent of manufacturing lead time is actual operation time. The rest of the time is caused by work in process time when the part is not being worked on. Of this stagnant time, queue time accounts for the longest time.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 962 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work Which of the following are requirements for a shop order release? I. Parts availability II. Order due date III. Tooling availability

A) I and II B) I and III C) II and III D) I, II, and III The correct answer is: D

Prior to releasing an order to the shop floor, components must be available, the required due date should be known, and the tooling must be available. If these requirements are not ready, then the order should not be released. Only jobs which can be worked on should be released to the floor.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 963 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work All of the following affect the queue time of a job at a work center. However, which one of the following is the most important factor affecting the queue time?

A) The existing queue time at the work center B) The setup times on the various jobs C) The lot size of the job D) The priority of the job The correct answer is: D

The priority of the job is the most important factor affecting the queue time at a work center. The queue time will be eliminated if the priority of the job is high enough to bypass all the other jobs waiting for the work center. (e.g. President says to make the job next.)

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 964 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work A company makes bicycles for the consumer market. The demand for the bicycles is 1000 per week. The three operations to produce a bicycle is frame assembly, wheel assembly, and final assembly. Frame assembly can produce 1200 frames per week; wheel assembly can produce 950 wheel assemblies (1900 total wheels); and final assembly can produce 1500 per week. What is the capacity of the factory?

A ) 9 5 0 B) 10 00 C) 12 00 D) 15 00 The correct answer is: A

The factory can only produce as fast as the slowest operation or bottleneck. So, although the final assembly area can produce 1500 bicycles per week, the slowest supporting operation can only produce 950.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 965 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work Which of the following best describes the function of the dispatch list?

A) Determines the run time by job B) Calculates the capacity of the work center C) Lists the jobs to be run at a work center and the priority sequence D) Establishes the tooling needed by the work center so it is available before the job runs The correct answer is: C

The purpose of the dispatch list is to provide a list of jobs for each work center in the priority sequence by which they are to run.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 966 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work All of the following are job sequence rules for dispatching EXCEPT: A)

First come, first served B) Earliest job due date C) Shortest process time D) Highest machine utilization The correct answer is: D

There are many job sequencing rules which try to establish the importance of the job in relation to the other jobs to be worked on. The first three listed are common rules, as is earliest operation due date. The best rules will establish the priority based on the due date of the order.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 967 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work A supplier has just increased the lead time to the customer. The customer will respond by: A)

decreasing the capacity utilization factors. B) increasing the safety stock. C) changing the gross requirements in the system. D) delaying the scheduled receipts in the system. The correct answer is: B

The logical response to longer lead times from a supplier will be to increase the safety stock. This occurs because the longer lead time creates more uncertainty in the planning process.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 968 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work A company makes long runs of parts in a sequence of work centers. Because of this, they start the second operation before the job is completed at the first operation. This method of scheduling is called: A)

Lead-time offsetting B) Overlapped scheduling C) Capacity overlapping D) Work center utilization The correct answer is: B

Overlapped scheduling occurs when the parts begin running on subsequent operations before the job is completed on the previous operation. The more repetitive the job is and the longer the order quantity must run, the more often this would occur. In selecting software to do this, one must be careful, as not all software can do this.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 969 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work Which of the following best describes the term Just-in-Time? A) Deliveries which occur only when needed

B) If it doesn't add value, it's waste; eliminate it C) Setups below one minute D) Kanban used for priority control The correct answer is: B

The broadest concept of Just-in-Time is to eliminate waste wherever it is found. In this context, waste is defined as anything which does not add value to the customer.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 970 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work Which of the following are obstacles to the implementation of Just-in-Time? I. Management does not allow employees to be involved. II. The factory takes on too many projects rather than continuous improvement.

III. Spending on education and training is limited.

A) I and II B) I and III C) II and III D) I, II, and III The correct answer is: D

All of the above can be obstacles to Just-in-Time implementation, as well as others.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 971 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work

Which of the following best describes mixed model scheduling? A) A regression analysis to schedule finite capacity B) A master schedule approach in a make-to-order environment C) A schedule in which products and lot sizes vary so every model is made every day D) A database system in which access is user friendly The correct answer is: C

Mixed-model scheduling allows the factory to make every model every day so the mix mirrors the sales for the day. This is especially useful in flow manufacturing through an assembly line.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 972 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work In a ship-to-WIP process, which of the following is true?

I. A certified supplier can ship to the point of use II. Inspection is completed in small lots III. Traditional receiving process is bypassed

A) I and II B) I and III C) II and III D) I, II, and III The correct answer is: B

In a ship-to-WIP process, traditional receiving, inspection, and stocking are bypassed and the product is delivered to the point-of-use. This eliminates significant costs in the operation as many steps are eliminated which add no value.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 973 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work The best process for automation is to simplify the work, then automate. When a company does automate with robotics, it is usually: A) in jobs where imaging is necessary. B) in highly repetitive jobs not suited for humans. C) because they cost less than direct labor. D) to provide a high tech environment. The correct answer is: B

Robots are very good at repetitive jobs, such as welding, where humans would be bored, less accurate, and could be injured. Where flexibility and judgement are needed, humans provide the best labor impact.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 974 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work The term "linearity" means: A) the line capacity is balanced from beginning to end. B) production is at a constant or level rate. C) a single source supplies each component. D) the master schedule is not overloaded. The correct answer is: B

Linearity refers to the use of a resource at a level rate or production at a constant rate. The rate is measured at least daily, or more frequently.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 975 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work Reductions in lead time provide for all of the following benefits EXCEPT: A) Improved service/response time B) Increased work-inprocess C) Reduced inventory D) Reduced material cost The correct answer is: B

Reductions in manufacturing lead time would reduce the work in process, not increase it. As a result of less materials on the floor, damage and obsolescence would be reduced.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 976 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work

In the Kanban system, lead time reduction is the responsibility of: A) Supervi sors B) Materials personnel C) Direct labor personnel D) Every one The correct answer is: D

All workers in the factory should consider lead time reduction their job; however, direct labor workers can contribute significantly to reducing lead time using the Kanban system.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 977 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work The impact of Just-in-Time on manufacturing systems design is to focus on::

A) capacity leveling by inventory planning. B) demand management to level capacity. C) inventory and throughput, not level capacity. D) None of the above The correct answer is: C

In a Just-in-Time environment, inventory is not built to level load the factory. Inventory reduction and increased throughput are more important.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 978 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work Which of the following will increase machine utilization? A) Small lot sizes

B) Minimal unplanned downtime C) Small work in process queues D) Making frequent product changeovers The correct answer is: B

Machine utilization remains high with long runs, few changeovers, and plenty of work in the queue. The only answer which will help the machine utilization is the minimal unplanned downtime. This will allow the machine to operate more.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 979 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work The term "line balancing" means that the: A) machines are an equal distance apart. B)

time taken at each work station is equal. C) high, low, and medium volume work is separated. D) setup time on each machine is equal. The correct answer is: B

Line balancing refers to the fact that the time taken to perform tasks at each work station is equal or very nearly so. This results in no bottlenecks between work stations and no buildup of work in process inventory.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 980 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work Which of the following statements best describes the impact JIT has on forecasting? A) Shortened lead times causes forecasting to be less significant for scheduling. B) Forecasting becomes more important in predicting short term demand.

C) Short term forecasting will become more accurate. D) Long term forecasting will be less accurate. The correct answer is: A

Just-in-Time has little to no impact on the accuracy of the forecast. However, with the ability of production to meet demand as it is needed, the need for short term forecasting for the master schedule becomes much less important. Forecasting will always be needed for business planning, capacity planning, etc.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 981 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work In the electronics manufacturing industry, there is often a process step called bake at the end of the production process. The process steps ahead of the bake step are generally completed faster than the bake step. This bake step is known as a: A) clogging operation. B) backflush operation.

C) gating operation. D) constr aint. The correct answer is: D

A constraint is any element or factor that prevents a system from achieving a higher level of performance with respect to its goal. Constraints can be physical, as the example above is, or they can be managerial as with a policy or procedure.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 982 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work In process industries, such as in an oil refinery, the primary execution and control concern is: A) linearity. B) synchronizing the operations.

C) input/output control. D) setup times. The correct answer is: A

Linearity is the use of resources at a level rate or maintaining a constant rate. The rate of the production in this kind of environment is controlled by the technology in place to maintain the flow of product, and the maintenance of the technology to avoid disruption.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 983 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work Throughput is an important manufacturing measure. It measures the total volume of output from a process. Which of the following environments would have the LEAST predictable throughput? A) Continuous process B) Repetitive manufacture

C) Job shop D) Batch operations The correct answer is: C

A job shop would have the least predictability because the orders are not predictable in the shop. Unlike a repetitive manufacturer which has a flow of goods through each step in the operation, a job shop may have variety of different steps depending on the order.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 984 EXECUTION & CONTROL OF OPERATIONS (ECO) :Prioritizing & Sequencing Work All of the following are reasons to minimize the WIP in manufacturing EXCEPT: A) WIP represents an inventory investment and should be minimized B) WIP indicates long cycle times C) WIP increases operationally generated scrap

D) WIP contributes to congestion on the floor The correct answer is: C

Scrap created during the operation will not increase just due to large amounts of WIP. Operation scrap occurs due to design, poor tooling and operator error. These are caused by other problems than just WIP. Overall scrap will most likely increase because damage will be incurred due to large amounts of materials being on the floor, and frequent changeovers which occur due to "hot"jobs.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 985 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Which of the following time frames are usually associated with subcontracting? I. Short-Range II. Medium-Range III.

Long-Range

A) I and II B) I and III C) II and III D) I, II, and III The correct answer is: A

Subcontracting usually provides an adjustment to capacity for short and medium range planning. It is usually used when there is a temporary capacity shortage.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 986 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Which of the following statements best describes why the machine load report is not a good substitute for input/output control?

I. It doesn't show actual capacity II. Weekly requirements have a wide variation III. Capacity is not projected far enough into the future for changes to capacity

A) I and II B) I and III C) II and III D) I, II, and III The correct answer is: D

All of the answers reflect weakness in the load report to control the floor activity. In addition, nothing is learned about input/output control from the load report.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 987 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans In order to achieve effective capacity management, which of the following needs to be in place in a company? I. A cost accounting system to capture variances II. A material control system III. A shop floor control system which provides accountability

A) I and II B) I and III C) II and III D) I, II, and III The correct answer is: C

A good capacity management system can exist without a cost accounting system. However, without valid due dates and accountability for work on the floor, capacity management will be poor.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 988 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Calculate the standard hours available in an 8 hour shift if the loss time factor is 7% and the machine efficiency is 90%. (Round to the nearest hundredth.) A) 5.43 B) 6.24 C) 6.70 7.42 D) The correct answer is: C

The 8 hours multiplied by .93 (100% -7%) equals 7.44 hours due to lost time. Multiplying 7.44 by the efficiency of only 90% equals 6.696 or 6.70.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 989 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Given the following information, calculate the standard hours available in an 8 hour shift. (Round to the nearest hundredth.) Lost time factor: 8% Machine efficiency: 95%

A) 5.69 hours B) 6.99 hours C) 7.35 hours D) 7.60 hours The correct answer is: B

8 hours * .92 * .95 = 6.992

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 990 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans If a work center is becoming a bottleneck and throughput time is getting longer, which of the following could be a solution? I. Decrease the input II. Increase the planned lead times III. Increase the capacity

A) I and II B) I and III C) II and III D) I, II, and III The correct answer is: B

Essentially, the only way to relieve the bottleneck is to increase the output from the work center or decrease the input. Increasing planned lead times will cause more work to be released to the floor.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 991 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans All of the following actions can be taken to alleviate overloaded shop floor conditions. Which one, however, should be the "last resort"? A) Schedule overtime B) Subcontract work outside the factory C) Use alternative machining centers D) Revise the master schedule The correct answer is: D

Since the MPS is the tool used to manage the manufacturing business, many other areas are tied to it, such as customer due dates and component delivery. Revising the MPS will generate confusion and additional costs. For this reason, the MPS should only be revised when no alternative exists to alleviate the overload.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 992 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Which of the following statements are true regarding queues? I. Queue size and lead time are interchangeable II. Queue size and lead time are interconnected III. Queue time is variable based on priority

A) I and II B) I and III C)

II and III D) I, II, and III The correct answer is: C

Queue size and lead time are interconnected since an increase in queue size will increase lead time. However, if a job is a high priority by management, the queue size won't matter.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 993 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Given the following information on a work center:

Machines = 3 Operations per shift = 2 Shifts per day = 1

Days worked per week = 5 Hours worked per shift = 8 Machine utilization = 80% Operator efficiency = 90% If the weekly load on the work center is 90 hours, the work center is:

A) Overloaded B) Underloaded C) In balance D) Not enough data The correct answer is: A

The work center is overloaded because the standard capacity is:

3 machines * 40 hours per week * .80 machine utilization * .90 operator efficiency = 86 standard hours.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 994 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Given the following information for a work center:

Machines = 3 Operations per shift = 2 Shifts per day = 1 Days worked per week = 5 Hours worked per shift = 8

Machin e utilizatio n = 80% Operato r efficienc y = 90% The available weekly capacity at the above work center is: (Round to nearest standard hour.)

A ) 8 1 B ) 8 6 C ) 9 2 D ) 1 2 0 The correct answer is: B

Available weekly capacity is: 3 machines * 40 hours per week * .80 machine utilization * .90 operator efficiency = 86 standard hours.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 995 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Given the following information for a work center:

Machines = 2 Operations per shift = 3 Shifts per day = 1 Days worked per week = 4 Hours worked per shift = 10 Machine utilization = 90% Operator efficiency = 80% If the weekly load on the work center is 72 hours, the work center is:

A) Overloaded B) Underloaded C) In balance D) Not enough data The correct answer is: A

The work center is overloaded because the available weekly capacity is: 2 machines * l shift * 4 days * 10 hours * .9 utilization * .8 efficiency = 57.6. The load of 72 hours is over the available capacity.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 996 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Given the following information for a work center:

Machines = 2 Operations per shift = 3 Shifts per day = 1 Days worked per week = 4 Hours worked per shift = 10 Machi ne utilizati on = 90% Operat or efficien cy = 80% The weekly available capacity at the above work center is: (Rounded to the nearest whole standard hour.)

A ) 5 0 B ) 5 5 C)

58 D ) 6 0

The correct answer is: C

Available capacity is calculated: 2 machines * 1 shift * 4 days * 10 hours * .90 utilization * .80 operator efficiency = 57.6.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 997 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Given the following information about a work center:

Machines = 2 Operations per shift = 3 Shifts per day = 1

Days worked per week = 4 Hours worked per shift = 1 0 Machin e utilizatio n = 90% Operato r efficienc y = 80% If the hours worked were expanded to a 12 hour shift, what would the available capacity be? (Rounded to the nearest standard hour.)

A ) 6 0 B ) 6 9 C ) 8 2 D ) 9 6

The correct answer is: B

The calculation of available capacity is: 2 machines * 1 shift * 12 hours * 4 days * .90 machine utilization * .80 operator efficiency = 69.12 hours.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 998 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Given the following information about a work center:

Machines = 2 Operations per shift = 3 Shifts per day = 1 Days worked per week = 4 Hours worked per shift = 10

Machine utilization = 90% Operator efficiency = 80% If the work week was expanded to 5 days of 10 hour shifts, what would the available capacity be? (Rounded to the nearest standard hour.)

A) 60 B) 72 C) 84 D) 96 The correct answer is: B

The calculation of available capacity is: 2 machines * l shift * 5 days * 10 hours * .90 machine utilization * .80 operator efficiency = 72 hours.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 999 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Which of the following best describes the term alternate routing? A) A routing similar to the primary routing which produces an identical item of lesser quality B) A routing less preferred to the primary routing which produces an identical item C) A routing which takes longer than the primary routing and produces a similar, but not identical part D) A routing for the supplier which exists on the customers file The correct answer is: B

An alternate routing is not preferred over the primary because the machinery could be older, more variable, or may take longer. However, the identical part is produced within the quality specification.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1000 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans A replacement for a normal step in the manufacturing process is: A) alternate routing. B) smoothing . C) alternate operation. D) sequenc e. The correct answer is: C

An alternate operation would be used if the normal operation was not running, so work could be completed.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1001 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans The process of finishing product A at work center 101 has just been completed. In order to prepare for running product B at this workstation, different tooling must be installed. This process is called: A) interoperation time. B) changeov er. C) tooling reconfiguration. D) queue time. The correct answer is: B

A changeover is the process of re-fitting equipment to offset the effects of the previous production and/or get the work center ready for the next production.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1002 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans A bottleneck operation can be best defined as: A) an operation where work arrives faster than can be completed. B) the place where emergency maintenance is often needed. C) the work center which begins the production process. D) the gateway work center for counting. The correct answer is: A

The work center where work arrives faster than can be completed is the bottleneck. By concentrating on alleviating the bottleneck, capacity can often be increased, as all downstream operations can only complete work released at the bottleneck rate.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1003 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Which of the following would best describe the term dedicated capacity?

I. A machine which is designated to produce only one item II. Special equipment designed specifically to produce a small group of items III. The 20% committed capacity a customer has taken

A) I and II B) I and III C) II and III D) I, II, and III The correct answer is: A

Dedicated capacity refers to the way work centers have been assigned to manufacture specialized products.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1004 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Which of the following is used to calculate demonstrated capacity? A) Actual output B) Actual input C) Standard output D) None of the above The correct answer is: A

Demonstrated capacity is calculated using the historical actual output times the standard hours to produce.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1005 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Which of the following could be causes of idle time? I. Maintena nce II. Se tu p III. Traini ng

A) I and II B) I and III C) II and III D) I, II, and III The correct answer is: D

Idle time or down-time results when machines or operators are not producing product for a number of reasons including training, setup, and maintenance.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1006 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans If more input is arriving at a work center than output leaving the work center, which of the following will occur? I. Backlogs will grow II. Lead times will be longer III. Work in process inventory will be higher

A) I and II B) I and III C) II and III D) I, II, and III The correct answer is: D

All of the answers will occur if more is input to the factory or work center than can be expected out.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1007 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans When a set-up procedure occurs while a machine is not operating, it is called: A) external setup time. B) interoperation time. C) internal setup time. D) gapped time. The correct answer is: C

Internal setup time occurs when setups are completed while the machine is down. External setups occur while a machine is operating.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1008 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans When a setup procedure occurs while a machine is running, it is called: A) internal setup time. B) interoperation time. C) external setup time. D) gapped time. The correct answer is: C

External setup time occurs when a setup is completed while the machine is operating. Internal setup time occurs when the machine is down. Often, reducing setup time involves moving internal setups to external through advanced preparation.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1009 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Which of the following statements are true regarding Just-in-Time production? I. Only refers to the delivery of products when needed II. Refers to the elimination of waste -"If it doesn't add value, it's waste; eliminate it" III. It is a pull system

A) I and II B) I and III C) II and III D) I, II, and III The correct answer is: C

Many people believe it is only a "delivery of material as needed" system. It is a philosophy of waste elimination and worker involvement. Additionally, work is pulled through the factory based on demand.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1010 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Which of the following statements is true regarding labor productivity? A) Increases in labor productivity can negate the effects of wage increases. B) Labor productivity is not important anymore since it is generally a small cost. C) Labor productivity can be gained by making the lines go faster. D) Labor productivity only applies to direct labor. The correct answer is: A

Increases in labor productivity can negate the effects of wage increases. If wages rise 5% and output rises 3%, then the net effect of the wage increase is only 2%, as you will get 3% more output for the 5% more labor dollars expended.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1011 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Based on the following information, calculate the machine utilization for a 5-day week based on 8 hour shifts. (Times are expressed in hours.)

Day 1 2 3 4 5 Setup Time 1.0 1.0 1.5 1.0 1.5 Run Time 6.0 5.5

5.5 6.0 5.5 Wait Time 1.0 1.5 1.0 1.0 1.0

A) 71.25 % B) 86.25 % C) 91.25 % D) 97.50 % The correct answer is: B

Machine utilization is calculated by dividing direct time charged to production activities by the clock time scheduled for those production activities. In the question, 8 hours are available each day or 40 hours for the week. Setup and run time accounts for 34.5 hours or 86.25% (34.5/40.0).

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1012 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Based on the following labor hours information, calculate the labor efficiency for the week based on an 8 hour shift. (Times are expressed in hours.)

Day 1 2 3 4 5 Setup Time .75 1.0 1.0 1.25 1.50 Run Time 6.25 5.5 5.5 5.50 6.25 Wait Time 1.00 1.5 1.5 1.25 .25

A) 72. 5% B) 86.2 5% C) 91.2 5% D) 95.0 0% The correct answer is: B

Labor efficiency is calculated by dividing the direct time charged to production activities (setup hours & run time hours) by the clock time available for the activities or 34.5/40 = 86.25%.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1013 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Which of the following are scheduled in manufacturing lead time? I.

Time to purchase II. Queue time III. Run time

A) I and II B) I and III C) II and III D) I, II, and III The correct answer is: C

Purchasing raw materials is not part of the manufacturing lead time, but is part of the cumulative lead time.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1014 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans If the manufacturing calendar in the manufacturing system defines weekends as non-work days, then a 35 day lead time is equal to: A) 5 weeks . B) 6 weeks . C) 7 weeks . D) 9 weeks . The correct answer is: C

Establishing the manufacturing calendar by defining weekends as non-work days would cause a 35 day lead time to be 7 weeks.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1015 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Which of the following is true regarding an open order?

I. It is a released manufacturing order II. It is a scheduled receipt III. It is an unfilled customer order

A) I and II B) I and III C) II and III D) I, II, and III The correct answer is: D

An open order can mean any of the above answers, depending on what module of an MRP system you are in. In an order entry module, customer orders could be in an open state. In terms of manufacturing, an open order would be a scheduled receipt or a released manufacturing order.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1016 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans By increasing the capacity at the bottleneck work center, which of the following will occur? I. Manufacturing lead times will be shortened II. Work in process inventory will be reduced III. Scrap will be reduced

A) I and II B) I and III C) II and III D) I, II, and III The correct answer is: A

By increasing the capacity at the bottleneck work center, more work can "flow" out of the work in process. When this happens, lead times will decrease, as will work in process.

While scrap could be lower due to damage caused by excess parts in the factory, it is not a direct result.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1017 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Which of the following methods is the fastest method for adding capacity? A) Hire new people B) Add another shift C) Schedule overtime D) Subcontract work The correct answer is: C

Scheduling overtime is quicker than any of the options listed, including subcontracting, which could require sourcing a contractor. However, overtime is only an option if there is capacity available.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1018 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans In which of the following businesses can shop floor control procedures be best applied? I. Make-tostock II. Make-toorder III. Assemble-toorder

A) I and II B) I and III C) II and III D) I, II, and III

The correct answer is: D

All types of manufacturing industries can receive benefits from shop floor control procedures although each of them have very specific issues.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1019 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans If the input to a work center is equal to the output from the work center, then which of the following is true? I. Backlogs are constant II. Lead time remains constant III. Lead time will increase slightly

A) I and II

B) I and III C) II and III D) I, II, and III The correct answer is: A

If input equals output, then lead time and backlogs will remain constant.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1020 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Shop floor control functions would include all of the following EXCEPT: A) Input/output control B) Maintenance cost analysis C) Plant capacity analysis

D) Plant load analysis The correct answer is: B

Maintenance cost analysis would not be included as a function of production activity, but would be included as a maintenance and financial function.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1021 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans When a machine center is being re-tooled and the job is waiting for the center, this time is known as: A) waittime. B) setup time. C) direct time. D) run time.

The correct answer is: B

When the machine is being re-tooled for the next job, it is setup time. Wait time is the time a job remains at a work center after completion, "waiting" to be moved.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1022 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Which of the following is true regarding first-piece inspection? A) It is the quality inspection after the first finished product is assembled. B) It is the quality check of a component after the setup. C) It is the inspection time built into the routing. D) It is usually a bad piece. The correct answer is: B

It is the quality check conducted on the first piece produced after the setup is completed.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1023 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Floor stocks can be best defined as: A) components which have been issued and moved to the floor. B) raw steel to be formed. C) inexpensive parts held in the factory for use without requisitions by workers. D) inventory held on the floor of the warehouse. The correct answer is: C

Production parts which are held on the floor to be used by production workers are floor stocks. Requisitions are not used, as parts are generally inexpensive.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1024 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Which of the following are benefits of a flexible manufacturing system (FMS)? I. It allows rapid changes in output to meet demand II. It has a low initial investment III. It reduces transportation time between lines

A) I and II B) I and III C) II and III D) I, II, and III

The correct answer is: B

While FMS provides great flexibility to change, the initial investment is high to design the process, the layout, purchase equipment, and implement systems to gain the most flexibility.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1025 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Major benefits of a flexible machine center include which of the following? I. Quick changeovers II. Multiple products to be manufactured III. Quick setups

A) I and II

B) I and III C) II and III D) I, II, and III The correct answer is: D

All of the above are benefits of a flexible machine center. One negative may be the investment.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1026 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Which of the following are valid methods of relieving inventory? I. Post-deduction transaction II. Pre-deduct transaction III.

Direct-deduct transaction

A) I and II B) I and III C) II and III D) I, II, and III The correct answer is: D

All are valid methods. However, statements I and III would be preferable. Post deduct transactions are completed when an order is closed. Direct deduct transactions are completed as materials are issued or received. Pre-deduct transactions are completed when bill of materials explosion occurs.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1027 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans

Flow control systems are best used in: A) discrete manufacturing. B) repetitive manufacturing. C) assemble-to-order manufacturing. D) engineer-to-order manufacturing. The correct answer is: B

Repetitive manufacturing with daily schedules and production rates, lends itself to flow control which feeds production at planned rates of production.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1028 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Which of the following reasons could exist for an unplanned issue? I.

Material scrapped has to be replaced. II. Material is being used which is not on the bill of materials. III. The pick list quantity must be changed.

A) I and II B) I and III C) II and III D) I, II, and III The correct answer is: A

An unplanned issue is an issue transaction from inventory which is not on the pick list. Statements I and II qualify.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1029 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans On-line transaction processing can improve the timeliness of which of the following? I. Information updating to on-hand balances II. Recording accurate quantities on receipts III. Problem resolution

A) I and II B) I and III C) II and III D) I, II, and III The correct answer is: B

Accurate quantities on receipts are still the result of human entry and are subject to error. The other two can be improved by on-line processing.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1030 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Which of the following are direct causes of idle time? I. Lack of material II. Inaccurate planning bill III. Setup

A) I and II B) I and III C) II and III D) I, II, and III The correct answer is: B

Idle time or downtime is the amount of time, machines or people are idle due to setup, maintenance, tooling, or waiting for material. An inaccurate planning bill would not directly cause idle time.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1031 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans If a process requires 100 units of input to produce 98 units, its yield is: A) 102%. B) 100%. C) 98%. D) 95%. The correct answer is: C

Yield is the ratio of useable output for the input to the process. In this example, 98 is output from 100 input. Therefore:

98/100 = .98 or 98%

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1032 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Which of the following are true regarding a limiting operation? I. It is the operation with least capacity II. It defines the capacity of the line III. It is the bottleneck

A) I and II B) I and III C) II and III D)

I, II, and III The correct answer is: D

A limiting operation is synonymous with bottleneck, as it is the operation with least capacity. This allows the line to be scheduled by this operation as the line capacity can only be as great as the operation with least capacity.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1033 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans A supplier is responsible to provide 100% acceptable quality to the customer. This is called: A) total quality management. B) statistical process control. C) quality at the source. D) total quality control.

The correct answer is: C

Quality at the source requires 100% acceptable quality to be delivered to the customer. This may be an element of total quality management or the vendor may use statistical process control to achieve the result; however quality at the source defines this example.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1034 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans The total time included in an operation's duration includes all of the following EXCEPT: A) Setup time B) Wait time after completion C) Run time of operation D) Tooli ng The correct answer is: B

Wait time after completing a job would not be included in the operation's duration.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1035 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Production order 650 is for 500 of part 3009. From the routing file, it is determined that the setup time is 3.0 hours and the run time is .25 hours per piece. What is the required capacity for this part? A) 120 hours B) 125 hours C) 128 hours D) 132 hours The correct answer is: C

The required capacity can be calculated by multiplying the hours needed per part (.25) by the number of parts required (500) plus the setup time (3). Therefore: (500 * .25) + 3 = 125 + 3 = 128 hours

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1036 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans An order for 200 of a product is processed on work centers 101 and 102. The setup time on work center 101 is 60 minutes and the run time is 3 minutes each. The setup time on work center 102 is 50 minutes and the run time is 5 minutes each. The wait time between each operation is 3 hours and the move time between 101 and 102 is 30 minutes. The wait time after work center 102 is 4 hours with a move time to storage of 20 minutes. What is the total manufacturing lead time for the order? A) 28.5 hours B) 29.3 hours C) 36.3 hours D) 39.4 hours The correct answer is: C

The total manufacturing lead time is the length of time it takes to get an order through the complete manufacturing process and be available for shipment to the customer, excluding the lower level purchasing lead time. This would include order preparation time, queue time, setup time, run time, move time, inspection time, and put away time. In the question, all the times would be accumulated to equal the lead time: Run time and setup time at 101 = (3 * 200) + 60 = 660 Run time and setup time at 102 = (5 * 200) + 50 = 1050 Wait time between work center = 180 Wait time after work center 102 = 240 Move time between work centers = 30 Move time to storage = 20 Total time in minutes = 2180 Total time in hours (2180/60) = 36.3

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1037 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans

In order to accurately report shop floor data, which of the following must be in place? A) Shop floor bar code system B) Work in process inventory balances C) Work centers defined to the system D) Firm planned orders The correct answer is: C

In order for shop floor reporting to be effective, the system must have the work centers defined in order to capture the data. While a data collection system such as bar coding would be helpful, accurate reporting can be done without a bar code system.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1038 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Managing the shop floor more effectively can improve customer service in which of the following ways?

I. Replenishing stock orders on time II. Improving parts availability III. Improving inventory accuracy

A) I and II B) I and III C) II and III D) I, II, and III The correct answer is: A

Effectively managing the shop floor can improve the on time delivery of parts whether they are for stock or for delivery to a customer. It will also increase the availability of parts, as the right parts will be worked on at the right time. However, the accuracy of the inventory has more to do with recording transactions than managing the shop floor.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1039 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Plant capacity is affected by all of the following except: A) Operator efficiency B) Machine utilization C) Number of shifts D) Number of released orders The correct answer is: D

Capacity is calculated based on the machine efficiency, operator efficiency, and number of shifts being worked. The number of orders released to the floor have no bearing on the availability of capacity to produce the orders. It would just mean the shop is overloaded.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1040 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Which of the following is the primary function of a supplier scheduler? A) Negotiate price with the supplier. B) Release orders to the supplier. C) Source suppliers. D) Establish contracts with suppliers. The correct answer is: B

The primary responsibility of a supplier scheduler is to release orders to the suppliers as well as to expedite those orders when necessary. The supplier scheduler must ensure supply availability from the supplier. The buyer's function is to establish contracts, source, and negotiate with the suppliers.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1041 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Which of the following best describes the term "production activity control"? A) Demand planning from customers B) Execution of the material plans C) Procurement activity D) Final assembly scheduling The correct answer is: B

Production activity control is concerned with the execution of the material plans. It includes the shop floor scheduling as well as the supplier follow-up to ensure material availability.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1042 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans In a JIT environment, the production control function is accomplished by: A) a move card. B) an issue card. C) MRP exception reports. D) a custom production control report. The correct answer is: A

In a Just-in-Time manufacturing environment, operations control is simplified to visual methods. This means eliminating expensive exception reporting generated from MRP systems. In place of the shop floor control system are kanban cards to authorize production and moves. The move card is the signal for the work center to produce more product in the priority of the cards.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1043

EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans If a purchased part needs to arrive prior to the original due date in order to meet a delivery date, which of the following should be attempted first? A) Offer the supplier a premium price to speed delivery. B) Demand the supplier get the part in as needed. C) Offer to push a delivery date out for a part which is not as critical. D) Change the MRP parameter for safety lead time. The correct answer is: C

Trying to get parts in faster than originally planned needs to be done without demanding action from the supplier. If a buyer can offer to push out another order which is going to take capacity from the supplier in exchange for a part that is needed, then this creates a better situation. Offering to pay a premium may not help because the supplier may not physically be able to get the part sooner without eliminating other parts from the schedule.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1044 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans To effectively capture data on the shop floor, which of the following is needed? A) Work-in-process inventory B) Capacity at the work center C) Job order number D) Lead time of the part The correct answer is: C

In order to capture shop floor data, most systems require that the order number be available to be used as the data collection number. Answers A, B, and D; inventory, capacity, and lead time are not necessary for data gathering.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1045 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Shop capacity is directly affected by which of the following?

I. Operator efficiency II. Number of released orders on the floor at one time III. Number of shifts operating IV. Level of maintenance

A) I, II, and III B) I, III, and IV C) II, III, and IV D) I, II, III, and IV The correct answer is: B

The capacity of the plant to produce is still the same regardless of how many orders have been released. However, the capacity would be affected by the labor efficiency, the number of machines operating, the absenteeism, the number of shifts operating, and the rate at which machine breakdowns occur.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1046 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Repetitive manufacturing environments are characterized by which of the following? I. Use of schedules instead of work orders II. Consistent flow of finished products III. Inventory issue transactions used for inventory

A) I and II B) I and III C) II and III D) I, II, and III The correct answer is: A

Repetitive manufacturing is defined as "a form of manufacturing where various items with similar routings are made across the same process whenever production occurs." (APICS Dictionary) Schedules are used rather than job orders, work-inprocess inventory is backflushed very often, and the number of transactions is minimal. The whole process of tracking the production is easier than a job shop.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1047 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans All of the following are part of starting a Just-in-Time implementation EXCEPT: A) Conduct some general JIT education B) Complete a detailed implementation plan for the complete project C) Pick a pilot project D) Review pilot project as a learning experiment The correct answer is: B

Just-in-Time should be implemented as a continuous improvement project. Start with a pilot and learn from the pilot after educating the work force. A project plan to start is needed, and needs to be updated as time goes on. However, an entire detailed project plan cannot be completed upfront, due to the changes which occur as more is learned.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1048 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Which of the following are the result of setup reductions? I. Increases flexibility in manufacturing II. Reduces lead times III. Allows large lot size production

A) I and II B) I and III C)

II and III D) I, II, and III The correct answer is: A

Setup reduction is very important as it allows manufacturing flexibility, reduces lead times, and allows for small lots to be produced. This in turn, allows quality problems to be detected quickly.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1049 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans The process of shutting down a production line or machine upon identification of a defect is: A) down time. B) a capacity constraint. C) simplificati on.

D) autonomati on. The correct answer is: D

Autonomation is the process whereby detection of a defect automatically shuts down a machine or line. This concentrates the firm's resources on problem resolution inventory can't hide the problem.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1050 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans An andon is a: A) work center which constrains the flow. B) signal system which links work centers. C) tool for quick set-up. D) successive fixture.

The correct answer is: B

An andon is a type of signal system which provides visibility to the floor conditions. Generally, red (stop), green (running), and yellow (needs attention), indicates production line conditions.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1051 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Which of the following are reasons why setup reduction is so important in a flow manufacturing environment? I. It allows small lots of many models to be produced on the same line. II. Costs are reduced although changeovers are frequent. III. Raw material inventory is kept higher to allow for frequent changes.

A) I and II

B) I and III C) II and III D) I, II, and III The correct answer is: A

Inventories are reduced because quick setups allow more models to be made which can then be sold. Long setup times require large lots to be produced to spread the fixed cost over more units.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1052 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Preventive maintenance is important in all companies, but is usually the smallest portion of the maintenance budget. For a lean manufacturing environment, preventive maintenance is critical for which of the following reasons? I. Unplanned downtime due to breakdowns is avoided

II. It allows the production line to produce saleable units III. It extends the useful life of equipment, thereby delaying investment in new equipment

A) I and II B) I and III C) II and III D) I, II, and III The correct answer is: D

In a lean manufacturing environment, a breakdown will shut the line down due to "zero" inventories. The line is producing units for sale with no inventory, so it is critical the line keeps producing. Additionally, useful life extension delays an investment in equipment, thereby increasing value in the product without increasing the fixed costs.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1053 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Which of the following reflects the order in which Computer Integrated Manufacturing (CIM) should be implemented? A) CIM should be worked on early to create a flexible manufacturing system. B) CIM should be implemented after the environment has been simplified, organized, and focused. C) CIM can only be implemented in very large, resource rich corporations. D) CIM should be implemented first where labor is high cost. The correct answer is: B

CIM should be implemented after the environment has been simplified, organized, and focused. CIM is a very complex undertaking, which, in an unfocused, complex factory, can be very expensive even without great success.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1054 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans The phrase "one less at a time" refers to which of the following? A) Reducing the number of suppliers necessary to produce the product B) The reduction of direct labor caused by the creation of manufacturing cells C) The process of gradually reducing lot sizes in manufacturing to eliminate obstacles D) Establishing a flow line in which the production rate is one at a time The correct answer is: C

The phrase refers to the GRADUAL (continuous improvement) reduction of lot sizes. This creates the opportunity to eliminate obstacles as they become apparent in order to generate higher throughput.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1055 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans

Work teams which operate highly focused segments of the production process without external supervision or reporting are called: A) quality circles. B) small group improvement activity (SGIA). C) autonomous work group. D) cell teams. The correct answer is: C

Autonomous work groups work to an external schedule. However, there is little or no external influence. High performance work teams would fall into this category where the team is responsible for all aspects of their production "business".

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1056 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans In a JIT organization, a supplier is defined as:

A) a vendor that supplies raw materials to a customer. B) an organization that supplies materials to a subsequent organization. C) any internal organization supplying a later organization. D) an internal organization that supplies material to a prior organization. The correct answer is: B

This definition allows any organization, whether internal or external, to function in a supplier/customer relationship. The external supplier should function as an extension of the organization.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1057 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans The technology commonly known as EDI is used to: A) ensure quality is met at the suppliers.

B) integrate computer manufacturing. C) improve communication between supplier and customer by exchanging vital information. D) ensure no errors are made in the quantities needed. The correct answer is: C

EDI, or Electronic Data Interchange allows electronic "hookup" for the quick, accurate exchange of information such as schedules, invoices, receiving data, and any other information. It is completed using direct links between computers or through third party translators. It does not ensure error free work. In fact, errors will just be transmitted faster.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1058 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans In a Just-in-Time delivery process, packaging plays a critical role. Which of the following are important in designing packaging for JIT? I. Packaging should be designed for direct use by the customer

II. Packaging should minimize delivery and transportation costs III. Packaging should convey a marketing image first

A) I and II B) I and III C) II and III D) I, II, and III The correct answer is: A

Packaging should be designed for customer use. With small lots and frequent deliveries, packaging should, wherever possible, minimize the logistics cost. Advertising and positive image should play a secondary role to function.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1059 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Which of the following are important in measuring the JIT delivery process? I. On time delivery II. Minimal schedule changes by the supplier III. Accurate quantity

A) I and II B) I and III C) II and III D) I, II, and III The correct answer is: D

All are important, more than low cost, in evaluating delivery performance. While cost must remain competitive, it must be analyzed in relation to the service.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1060 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans In order to accommodate a JIT delivery system, a customer's facility must have all of the following EXCEPT: A) Dedicated receiving docks B) Pre-printed receiving travelers C) Pre-arranged delivery appointment D) Appropriate handling equipment The correct answer is: B

Any printed document to move material would not add value and is not a "must" in a JIT delivery system.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1061 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans In considering a carrier for use in a JIT delivery system, which of the following are important? I. Equipment size and type II. Capability to communicate effectively with supplier and customer III. Flexibility to schedule changes

A) I and II B) I and III C) II and III D) I, II, and III The correct answer is: D

All of the answers are important in addition to past JIT experience, and distance from supplier and customer, although less so. JIT carriers must be able to have the right size equipment for the application so the expense is not too great, while they also need flexibility to respond to the customer when things do not go according to plan.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1062 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans In a job shop environment, it may not be possible to convert all areas to a "flow" shop. Wherever possible the "flow" can be accomplished by: I. Reducing setup times (quick changeover) II. Reducing or eliminating queue times III. Lowering defects towards a zero goal IV. Cross-training workers

A) I and III B) I, II, and III C)

II, III, and IV D) I, II, III, and IV The correct answer is: D

All of the above statements can improve the flow of a job shop. Reducing setup time allows multiple jobs to be done on the same machine without the machine being down for extended periods. Defect elimination will keep the shop from having to remanufacture a part because there is poor quality. These changes will allow the shop to flow the jobs from work center to work center.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1063 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Which of the following are benefits of a pull system in production? I. Lead time reduction II. Work in process reduction III. Problems become apparent so resolution takes place

A) I and II B) I and III C) II and III D) I, II, and III The correct answer is: D

In a pull system, product is produced only when the downstream operation requires it. This causes the line to produce only what will be "sold" to the eventual customer.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1064 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Which of the following are benefits of SMED (Single Minute Exchange of Die)?

I. Lower die costs II. Lower inventory III. Greater flexibility in manufacturing

A) I and II B) I and III C) II and III D) I, II, and III The correct answer is: C

By continually trying to make a setup in less than one minute, greater throughput can be achieved to move from make-to-stock to make-to-order. Additionally, flexibility is gained because the quicker the set-up, the more variety of product can be produced. Die costs would not be lower as the increased flexibility would create the need for more dies.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1065 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans The SMED concept is generally attributed to being founded by: A) Dr. William Demming. B) Taiichi Ono. C) Shigeo Shingo. D) Phillip Crosby. The correct answer is: C

Shigeo Shingo is considered to be the father of SMED while at Toyota.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1066 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans

Which of the following statements are true in a continuous flow environment? I. Continuous improvement measures are more important than traditional accounting measures. II. Because of the continuous flow, labor is a more costly component. III. Systems can be eliminated or simplified.

A) I and II B) I and III C) II and III D) I, II, and III The correct answer is: B

In a continuous flow, repetitive manufacturing labor cost as a component is generally lower. Also, manufacturing floor control systems become unnecessary as the control can be done visually.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1067 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans A customer has agreed to sole source from a JIT manufacturer. Which of the following functions should the manufacturer's salesperson now have? I. Continue to make sales calls for more orders II. Focus on solving problems III. Provide technological advantage to the customer

A) I and II B) I and III C) II and III D) I, II, and III The correct answer is: C

With a sole sourcing customer, the salesperson need not call for orders. The salesperson should be focusing on solving problems for the customer and keeping the customer in touch with technical advances.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1068 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Which of the following would be considered waste in the JIT environment? I. Purchase orders II. Factory orders III. Receiving documents IV. Material requisitions

A) I and II B) II and IV

C) I and IV D) I, II, III, and IV The correct answer is: D

All of the answers add no value to the customer and should be eliminated. This can be done through the use of information technology.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1069 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Which of the following would be considered waste in a JIT environment? I. Inspection II. Material movements III. Acknowledgements

IV. Invoi ces

A) I and II B) II and IV C) I and IV D) I, II, III, and IV The correct answer is: D

All of the answers add no value to the customer and should be eliminated. The use of information technology will eliminate these wastes; however, usually a change in mindset must occur.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1070 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans In a flow manufacturing environment, design engineering plays a key role in making sure products are designed for simplicity in manufacturing. Which of the following are actions engineering can take to minimize manufacturing time and costs?

I. Reduce the variety of different components through standardization. II. Work on new designs without spending resources on existing designs. III. Eliminate engineering changes by releasing production after correct design.

A) I and II B) I and III C) II and III D) I, II, and III The correct answer is: B

Design engineering can improve manufacturability by reducing the number of different components and engineering the cost down through value engineering. By not releasing the design until it is correct, ongoing engineering changes while the product is being produced can be eliminated.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1071 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Which of the following are benefits of producing parts in the smallest lot size possible? I. Reduced lead time II. Reduced space requirements III. Reduced loss due to quality problems IV. Increased flexibility

A) I, II, and IV B) I, III, and IV C) II, III, and IV D) I, II, III, and IV The correct answer is: D

All of the above are benefits to be generated by smaller lot sizes. However, setups/changeovers need to be quick to keep cost down.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1072 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans In order for suppliers to adequately service the JIT purchaser, the supplier must receive: A) purchase orders. B) quoted contracts. C) future requirements. D) None of the above The correct answer is: C

If the certified supplier is to provide effective service without storing inventory to do so, accurate future requirements are needed. This allows the JIT supplier to schedule

effectively. It also allows the supplier to purchase raw materials effectively, reducing inventory throughout the supply chain.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1073 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans The JIT philosophy calls for reducing lot sizes. Which of the following would represent a good way to cut lot sizes? A) Reduce the lot size to one and identify the problems. B) Cut the lot size in half and solve the problems that surface. C) Cut the lot size in half but be sure inventory is on hand in case the problems can not be resolved. D) Cut the lot size to equal one week's production. The correct answer is: B

By cutting the lot sizes in half, some problems will surface to solve; however, there won't be so many that you cannot deal with them. When the problems created by the first lot

size reduction are resolved, cut the lot sizes again for more problems to surface. This is the "one less at a time" process of gradually reducing lot sizes.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1074 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Flow manufacturing has the potential to reduce costs in many areas. In order to do this, however, certain operating practices must be established such as: I. Operations need to be stabilized II. Changes from engineering should be minimized III. Transactions should be minimized

A) I and II B) I and III C) II and III

D) I, II, and III The correct answer is: D

Part of implementing flow manufacturing should be to evaluate and simplify operations. This allows a stable schedule to be maintained, a reduction in the number of engineering changes, and the elimination of transactions which are not really needed.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1075 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Kanban can be best described by which of the following? A) Just-in-Time vendor delivery system B) A Japanese form of statistical process control C) A pull system used for signaling the previous operation that parts are needed D) A work team improvement process

The correct answer is: C

Kanban is a pull system which uses cards for work centers to signal the previous operation that parts are needed. Kanban systems are generally used when the machines cannot be linked physically to each other.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1076 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Which of the following can be included as benefits of cellular manufacturing? I. Reduced order flow time II. Lower setup time III. Lower material handling costs

A) I and II

B) I and III C) II and III D) I, II, and III The correct answer is: D

All of the answers can be included as benefits, in addition to improved quality, less workin-process, and improved job satisfaction.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1077 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans In a Just-in-Time production environment, a ship-to-WIP process is generally implemented as part of the JIT project. Which of the following best describes the ship-to-WIP process? A) Daily deliveries of materials arrive at the dock. B)

No shop orders are produced for production. C) Purchased materials are shipped to the point of use without inspection. D) Material replenishment is driven by consumption. The correct answer is: C

In a ship-to-WIP process, purchased materials are shipped directly to the point-ofuse without being inspected. This usually occurs when the supplier has been certified as a quality supplier whose products will not need inspection.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1078 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans If a company implements a Just-in-Time project, which of the following improvements will a customer most likely receive? A) Higher quality products B) Lower freight costs

C) Smaller lot sizes D) More deliberate design process The correct answer is: A

Just-in-Time reduces the waste associated with producing a product. As such, defects created during the manufacture of a part would be eliminated through root cause analysis. Freight costs might actually rise if frequent deliveries are needed. Smaller lot sizes may not occur as a result of implementing JIT. The design process may need to be faster and less deliberate although waste in this process could be eliminated.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1079 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Which of the following would be a benefit of grouping machines in a U shaped cell? I. Travel distances would be reduced. II. Machine downtime would be reduced. III.

Work in process inventory would be lower. IV. Lead times would be shorter.

A) I, II, and III B) I, III, and IV C) II, III, and IV D) I, II, III, and IV The correct answer is: B

Grouping dissimilar machines in U shaped cells will shorten the distance traveled for parts. This will reduce the lead time particularly since queues are dramatically reduced or eliminated as part of the process. This would, in turn, reduce the work in process inventory. However, the machine downtime would not be impacted by the U cell without a preventive maintenance program.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1080 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Which of the following would help standardization of parts to be achieved? A) Minimum number of suppliers B) Common components where possible C) Standard costing for similar parts D) Uniqueness of design The correct answer is: B

Using common components wherever possible will help to standardize not only the parts but also the tooling needed to produce the parts. Minimizing the number of suppliers would aid in developing common parts; however the lower number of suppliers alone would not cause common parts. From a design standpoint, modular designs would help make standardization possible. This would also increase speed to market if one design could fit many products.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1081 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Which of the following would be found in a focused factory? A) Logical flows of materials through the factory B) Plant layout by function C) Increased paperwork to support the operation D) Increased product variety The correct answer is: A

A focused factory would generally run a smaller variety of product down a logical flow in the factory. By focusing the factory, product can flow down a production line in a repetitive manner. By restricting the variety of parts being produced, a flow can be achieved. A wider variety of parts would make the line much more complicated.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1082 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans

Which of the following would be found in a focused factory? A) Flow patterns from department to department B) Restricted product variety C) Increased computer transactions D) Increased inspection stations The correct answer is: B

A focused factory would have a restricted variety of products which flow down the line. This smaller variety would allow a simplified approach to the factory and make flow manufacturing easier to implement. The simplification would require fewer transactions and inspections.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1083 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans

The most important initial qualification for a supplier to possess in order to supply a Just-in-Time manufacturer is: A) lowest pricing. B) on time delivery. C) good quality every time. D) available capacity. The correct answer is: C

Consistent quality needs to be the first characteristic a JIT supplier must meet. This is the most difficult to achieve and is the most critical to making JIT work properly. If the quality is inconsistent, production lines will stop on an erratic basis. Late delivery can be buffered more easily than inconsistent quality.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1084 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Which of the following physical characteristics are important for parts containers in a JIT pull system?

I. Sized appropriately for the producing work center II. Sized appropriately for the consuming work center III. Designed so they can be moved by hand without strain

A) I and II B) I and III C) II and III D) I, II, and III The correct answer is: C

The parts containers contribute greatly to the success of the pull system. They should be sized to feed the consuming work center with the amount of work calculated to be the lot size. They should also be designed to move without material handling equipment.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1085 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Based on the following information, calculate the number of Kanban cards needed to maintain production in a pull system.

Usage 120 per week Lead Time 1 week Container Size 10 units Safety Stock 0

A) 10 B) 12 C) 60 D) 120 The correct answer is: B The calculation for the number of Kanban cards is:

y = [(D)(L)(1+alpha)]/a where: y = Number of kanban cards D = Demand per unit of time L = Lead time a = Container capacity alpha = Safety stock y = [(120)(1)(1+0)]/10 y = 120/10 = 12

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Question Number: 1086 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Suppliers for a manufacturer starting to implement JIT may be hesitant at first, to participate because: A) their prices may be reduced. B) schedules may fluctuate without safety stock to protect them.

C) the inventory will be pushed back to them. D) measurements will be more detailed. The correct answer is: C

Many companies, when they adopt the JIT philosophy, begin by pushing the inventory back to the suppliers. This only serves to move the inventory in the pipeline rather than eliminate the inventory in the pipeline. This does nothing to help either company because someone must pay for the inventory which the supplier holds.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1087 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans When should the decision to sharpen a tool be made? A) Prior to using the tools B) When the tool is pulled from the crib C)

Immediately after it is used D) During the internal set up The correct answer is: C

A tool should be checked immediately after being used. This will ensure the tool is sharpened before it is needed the next time. Any of the other times may cause a problem if the tool needs sharpening.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1088 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Which of the following would best describe the term poka-yoke? A) Mistake proofing a process B) Setups in less than 10 minutes C) Lot size equal to one D)

Kanban sizing methodology The correct answer is: A

The term poka-yoke refers to a technique of mistake proofing a process. For example, having parts assembled in a certain way so they can only be finished with all the parts included. A setup may be poka-yoked in such a way so the fixture can only go in a certain way without any manipulation.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1089 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans The goal of zero defects can be achieved by using which of the following? A) Well trained inspectors B) Statistical sampling C) Computerized ISO documentation D) Poka-yoke work methods

The correct answer is: D

Only by mistake proofing the work methods can zero defects be achieved. Well trained inspectors and statistical sampling can only catch problems after they have occurred and good documentation must be followed to be effective.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1090 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans The concept of deducting component inventory when finished goods are received into stock is commonly referred to as: A) floor deduction. B) allocation. C) material issues. D) backflushing. The correct answer is: D

Backflushing occurs when the product is received into finished goods inventory or at a count point in the operation. The components are deducted from inventory for the finished goods quantity times the bill of materials for the product.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1091 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Setup time reduction in a JIT implementation is very important because: I. Small lot sizes reduce inventory II. Production output will increase III. All of the products can be made constantly

A) I and II B) I and III

C) II and III D) I, II, and III The correct answer is: D

Setup time reduction provides a great opportunity to improve operations. Excess setup times use productive capacity on the machine which could be used for manufacturing parts, rather than being down for setup. Reducing setup time also allows small lots to be produced. The effect of these small lots is to produce only the amount of product that is demanded by customers. This reduces the amount of inventory being held.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1092 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans You are investigating the purchase of new machinery in a lean manufacturing environment. Which of the following would be the criteria for selecting the equipment? I. Flexible and low cost II. Quick connect and disconnect capability

III. Single purpose machinery

A) I and II B) I and III C) II and III D) I, II, and III The correct answer is: A

When purchasing machinery to support a lean manufacturing environment, special attention should be given to the flexibility of the equipment. The machines should be easily adaptable to many parts and not just a single purpose. This will provide flexibility to the operation. The machines also should support the quick changeover needs of a lean manufacturing environment. Features such as quick connect dies assist in speeding setup.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1093 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Preventive maintenance must be completed to support flow manufacturing because: A) emergency breakdowns will stop production lines. B) operators have the time to do PM. C) maintenance parts inventories are minimal. D) queues are available to buffer the PM time. The correct answer is: A

Preventive maintenance must be done to support flow manufacturing because unplanned downtime will shut the line down, not just a machine. The more the machines are connected without buffer inventory, the more critical the preventive maintenance is. There is little inventory to buffer the unexpected machine emergency when flow manufacturing has been implemented.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1094 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans

A reliable JIT system will not only simplify operations but will also simplify transactional activity in which of the following areas? I. Purchas ing II. Shop floor tracking III. Quality control

A) I and II B) I and III C) II and III D) I, II, and III The correct answer is: D

Transaction processing, paperwork, and tracking of operations become much simpler with a JIT operation. Because the flow of materials becomes faster and more reliable, the need for WIP tracking, for example, is unnecessary. Purchasing can be done through vendor managed inventories whereby the parts are paid for as they are consumed, eliminating the need for purchase orders and invoices. In the quality control area, simplified operations eliminate the need for multiple inspections and the paperwork associated with those inspections.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1095 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Which of the following would be caused by the waste of overproduction? I. Extra material handling II. Quality defects III. Extra administrative costs IV. Wrong parts which are not needed

A) I, II, and III B) I, III, and IV C) II, III, and IV D) I, II, III, and IV

The correct answer is: D

Overproduction causes many problems in a manufacturing company. Usually this overproduction results from a strong need to keep the machines and workers busy, even if they are making the wrong parts. Overproduction is not necessary if market demand is being met.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1096 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans In a JIT plant, the demand for component parts is controlled by the: A) dispatch list. B) supervisor of the department. C) subsequent operation (internal customer). D) capacity plan. The correct answer is: C

In a JIT plant, demand pulls the parts from the previous operation. The signal can be any visual device (e.g., kanban square, light, bell, etc.) which indicates to a feeding work center that parts are needed.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1097 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Which of the following will be reduced through small lot manufacturing? I. Work-in-process inventory II. Defective parts produced III. Machine operator skills

A) I and II B) I and III

C) II and III D) I, II, and III The correct answer is: A

Small lot manufacturing will reduce work-in-process inventory and increase quality so the number of defective parts produced is lower. In order to do this, operator skills will have to increase to include functions such as problem solving and statistical process control.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1098 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Long term agreements with suppliers would provide for which of the following? I. Paperwork elimination II. Cost reductions III.

Joint benefit projects IV. Special trucking considerations

A) I, II, and III B) I, II, and IV C) II, III, and IV D) I, II, III, and IV The correct answer is: D

Agreements with suppliers should be kept simple and should spell out the special arrangements of the partnership. Some of the considerations include the containers, trucking, cost reduction projects, and personnel contacts to ease communication. Supplier partnerships must be built on win/win relationships.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1099 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans In order to analyze a material flow in a manufacturing process, which of the following tools will be most helpful? A) Statistical process control chart B) Fishbone diagram C) Process flow chart D) Force field analysis The correct answer is: C

A process flow chart is used to analyze any flow of material, process, or information. It allows a person to view a picture of the given process. From this flow chart, action can be taken to improve the flow.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1100 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans A major effort in JIT is reducing or eliminating the queues. The benefits of reducing the queues are:

I. Faster setup times II. Reduced inventory investment III. Shorter lead times

A) I and II B) I and III C) II and III D) I, II, and III The correct answer is: C

Reducing the queues provides significant benefits to the organization, including reduced inventory investment, shorter lead time, less cost, and quicker feedback regarding quality problems. Setup times are not faster because the queues are smaller, but the setup time reduction helps reduce the lot sizes, which, in turn, results in smaller queues.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1101 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Often, dissimilar machines will be grouped into U shaped cells. The benefit(s) from organizing the manufacturing in this manner is/are: I. Lead times are shortened II. Floor space taken is much less III. Machine downtime is reduced IV. Work-in-process inventory is lower

A) I, II, and IV B) I, III, and IV C) II, III, and IV D) I, II, III, and IV The correct answer is: A

The reasons for creating a U shaped cell are many. Because the space required is less, the lead times are shortened and there are no queues formed inside the cell. Additionally, this reduction in queue and the lack of inventory inside the cell also causes the inventory to decrease. Unfortunately, machines can still break down unexpectedly, even if a good preventive maintenance program is in place.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1102 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans Paypoint backflushing will most likely be used in a: A) repetitive environment. B) continuous process environment. C) job shop environment. D) batching operation. The correct answer is: A

Paypoint backflushing (also called count point or key point) allows inventory to be automatically removed from inventory with one transaction at a point in the routing. This form of backflushing will charge inventory to the order for all previous operations up to the paypoint. It is very useful in repetitive environments where the inventory moves consistently and quickly through the operations. It is less useful when the cycle times are long and inventory moves in large lots from operation to operation.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1103 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans In a flow manufacturing environment, a decision has been made to increase the number of kanban containers being used in the operation. The net effect on WIP will be: A) to decrease WIP. B) to keep WIP the same. C) to increase WIP. D) dependent on the container quantities. The correct answer is: C

An increase in the number of kanban containers will increase the amount of WIP circulating on the factory floor.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1104 EXECUTION & CONTROL OF OPERATIONS (ECO) :Executing the Plans A factory has implemented a six sigma approach to problem solving. As a result, problems are identified and resolved using: A) opinions based on some facts. B) visual observation of the floor. C) existing accounting data. D) statistical data. The correct answer is: D

Six-sigma is a term used generally to indicate that a process is well controlled. In a six-sigma program, teams of people are taught to use data for problem solving activities to improve a process. The process can be a manufacturing operation or an administrative process.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1105 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance WORK CENTER 210 (in standard hours)

Period 1 2 3 4 5 PLANNED INPUT 150 150 150 150 150 ACTUAL INPUT 150 145 130

CUMULATIVE DEVIATION 0 -5 -25

Period 1 2 3 4 5 PLANNED OUTPUT 180 180 180 180 150 ACTUAL OUTPUT 185 140 160

CUMULATIVE DEVIATION +5 -35 -55

Based on the input/output control chart above, backlog is planned to be reduced by:

A) 90 hours B) 120 hours C) 150 hours D) No reduction The correct answer is: B

Output was planned to be 30 hours higher than input for 4 weeks for a total of 120 hours.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1106 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance WORK CENTER 210 (in standard hours)

Period 1 2 3 4 5 PLANNED INPUT 150 150 150 150 150 ACTUAL INPUT 150 145 130

CUMULATIVE DEVIATION 0 -5 -25

Period 1 2 3 4 5 PLANNED OUTPUT 180 180 180 180 150

ACTUAL OUTPUT 185 140 160

CUMULATIVE DEVIATION +5 -35 -55

Based on the input/output control chart above, the backlog was reduced by how many hours by Period 3?

A) 30 hours B) 60 hours C) 80 hours D) No reductions The correct answer is: B

In the first three periods, output exceeded input by 60 hours; 35 in Period 1, -5 in Period 2, and 30 in Period 3.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1107 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance WORK CENTER 210 (in standard hours)

Period 1 2 3 4 5 PLANNED INPUT 150 150 150 150 150 ACTUAL INPUT 150 145 130

CUMULATIVE DEVIATION 0 -5 -25

Period 1 2 3 4 5 PLANNED OUTPUT 180 180 180 180 150 ACTUAL OUTPUT 185 140 160

CUMULATIVE DEVIATION +5 -35 -55

Based on the input/output control chart above, what should the input be in Period 4 in order to reduce the backlog?

A) 130 B) 150 C)

D) Any of the above The correct answer is: D

As long as the input does not exceed or equal the planned output, the backlog will be reduced. The lower the input, the greater the backlog will be reduced.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1108 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance WORK CENTER 210 (in standard hours)

Period 1 2 3 4 5 PLANNED INPUT 150 150 150 150 150

ACTUAL INPUT 150 145 130

CUMULATIVE DEVIATION 0 -5 -25

Period 1 2 3 4 5 PLANNED OUTPUT 180 180 180 180 150 ACTUAL OUTPUT 185 140 160

CUMULATIVE DEVIATION

+ 5 3 5 5 5

Based on the input/output control chart above, in which period was the input/output rule broken?

A) Perio d1 B) Perio d2 C) Perio d3 D) None of the above The correct answer is: D

The planned input never exceeded the planned output. In Period 2, actual output was less than input; however, less was released to the work center in Period 3.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1109 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance In order to monitor the capacity requirements plan, which of the following techniques would be used? A) Finite loading B) Rough-cut capacity control C) Input/Output control D) Critical ratio The correct answer is: C

Input/output control ensures that only work which can be completed is planned for the given work center. The output is compared to the input so planned output equals or exceeds planned input. Actual results are measured against the plan.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1110 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance Which of the following statements are true regarding input/output control? I. Never load in more than you expect out II. Separate the planning and control of capacity from the planning and control of production III. Place the due date on the order at the last possible moment

A) I and II B) I and III C) II and III D) I, II, and III The correct answer is: D

These are three of the four basic principles of input/output control. The fourth is that capacity should be planned in the largest possible group of items.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1111 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance Which of the following best describes the technique, "critical ratio"? A) It helps plan capacity. B) It helps with priority planning. C) It determines when to change the MPS. D) None of the above The correct answer is: B

Critical ratio helps determine priorities by finding the ratio between time remaining and work remaining. If the ratio is less than 1.0, it indicates being behind; if the ratio is greater than 1.0, it indicates being ahead of schedule.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1112 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance Department A produces part XYZ in 4 operations. During the prior month, the department earned 1200 standard hours by producing 1000 parts. The department worked 1000 hours to produce these parts. What is the department efficiency? A ) 8 3 % B) 10 0 % C) 12 0 % D) 20 0 % The correct answer is: C

Efficiency is determined by dividing the standard hours earned by the actual hours worked or: 1200/1000 = 1.20 or 120%

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1113 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance In product A, the standard amount of material to be used is 20 units. After running yesterday, 22 units were used to produce product A. The 2 extra units needed are known as a(an): A) efficiency variance. B) material usage variance. C) utilization variance. D) volume variance. The correct answer is: B

Material usage variance represents the difference between actual material used to make a product and the standard material to be used.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1114 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance Based on the following information, what is the lost time factor?

Planned hours 10 Standard earned 8

hours

Actual hours worked 10

A) 0.2 B) 0.25 C ) 2 D ) 4 The correct answer is: A

Lost time factor is calculated as the planned hours minus standard hours earned, divided by the planned hours or: 10 -8 = 2

2/10 = 0.2

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1115 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance Based on the following information, what is the operating efficiency of department A ? (Round to the nearest .1%)

Machines = 2 Shifts per day = 1 Hours worked per shift = 8 Days worked per week = 5 Maximum output in units per machine/hour =

Machin e utilizatio n = 90% Operato r efficienc y = 90%

Actual output for the week = 6000 units

A) 75.0 % B) 81.0 % C) 92.6 % D) 94.3 % The correct answer is: C

Maximum output for the 2 machines for 80 hours would be 8000 units (80 * 100/hr). However, machine utilization is 90% and operator efficiency is 90%, so the planned output would be 6480. Department operating efficiency would be 6000/6480 or 92.59 or 92.6%.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1116 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance A bar code data collection system can be used for: I. Labor reporting for jobs II. Time and attendance tracking III. Move time calculations

A) I and II B) I and III C) II and III D) I, II, and III The correct answer is: D

All of the above could be captured easily with a bar code data collection system.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1117 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance The process of deducting components from inventory by exploding the bill of materials times the production count of the finished assemblies is known as: A) a phantom blow through. B) backflushi ng. C) issuing inventory. D) transient part. The correct answer is: B

Backflushing deducts the components from inventory based on the number of finished assemblies times the bill of material. It requires that the bill of materials be very accurate in reflecting what occurs on the shop floor.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1118 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance Which of the following are true regarding variable costing? I. Fixed factory overhead is not assigned to the product II. It is acceptable for external financial reporting III. It is beneficial for internal analysis

A) I and II B) I and III C) II and III D) I, II, and III The correct answer is: B

While variable costing is best for internal management analysis, it is not accepted for external financial reporting. Only variable costs directly identified with a product are assigned to the product.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1119 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance For which of the following cost variances does a foreman have responsibility? I. Volume variance II. Material usage III. Alternate routings

A) I and II B) I and III

C) II and III D) I, II, and III The correct answer is: C

Volume variances result from the difference in planned sales and actual sales. Material usage variances result from actual materials being used at a rate different than standard. Alternate routings can generate more cost as they are usually less efficient and are used when the primary work center is out of service.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1120 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance Inventory shrinkage is caused by: A) actual inventory value being less than planned inventory value. B) a physical inventory quantity being less than the book quantity due to unrecorded deterioration, scrap, theft, or usage.

C) poor book inventory entries. D) unsecured warehouse or stockrooms. The correct answer is: B

When the physical inventory quantity is less than the book value, then a shrink is recorded. These are usually caused by unrecorded activities. Although having an unsecured storeroom could result in inventory shrink, there are many companies who have unsecured storerooms who also have accurate inventories.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1121 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance A fixed cost is a cost which: A) varies with production. B) does not vary with production. C) only includes salaries and office costs.

D) None of the above The correct answer is: B

A fixed cost by definition does not vary with production; however, in reality many fixed costs vary at certain levels. For example, if another shift is added, lights, heat, and power costs would vary.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1122 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance Which of the following is the most important element of a total quality control (TQC) program? A) Process control B) Line stop capability C) Project by project improvement D)

None of the above The correct answer is: D

No one item is most important in a total quality control program. It is a broad based approach which encompasses all phases of manufacturing, from design to customer delivery.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1123 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance Under full absorption costing, indirect costs would be handled by which of the following methods? A) They would be subtracted from the variable margin for a net profit. B) They would not be allocated to individual products. C) They would be allocated to each product based on the overhead burden rate. D) None of the above

The correct answer is: C

Under full absorption costing, indirect costs would be allocated to products by the overhead burden rate so products would receive fully allocated costs.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1124 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance Indirect labor can be best defined as: A) non-essential labor. B) labor not directly associated with production. C) final assembly labor. D) None of the above The correct answer is: B

Indirect labor is labor not directly responsible for production, but for support of production. Examples of indirect functions would be janitorial services, engineering, etc.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1125 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance If labor productivity continues to rise, yet the labor cost per unit is also rising, what can be concluded? A) The rate of increase for labor costs is greater than the productivity increase. B) Labor productivity will soon decline. C) Labor costs must decline. D) None of the above The correct answer is: A

If labor productivity is rising, however, labor cost per unit increases, the labor costs are rising faster than productivity. If this were to continue, competitiveness would decline.

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Question Number: 1126 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance Quality is best defined as: A) zero defects. B) conformance to requirements. C) less than .1% tolerance. D) within range on the SPC chart. The correct answer is: B

By definition, quality is the conformance to requirements. The other answers could be measurements of the conformance.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1127 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance What is the effect of inventory shortages on a company's income statement? A) Decrease in the cost of goods sold B) Decrease in the sales line C) Decrease in accounts receivable D) Decrease in profits The correct answer is: D

The write off of inventory is a direct decrease in the profitability of a company and it is usually unplanned. The decrease in inventory is an increase in the cost of goods sold, decreasing the gross profit and hence, the net profit.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1128 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance You walk into a manufacturing company and you see that they are operating with production schedules, they are functioning with a limited number of transactions, and they relieve work in process inventory by backflushing. Which of the following manufacturing environments would you be in? A) Discrete job shop B) Engineer to order C) Assemble to order D) Repetiti ve The correct answer is: D

Repetitive manufacturing is characterized by schedules for production rather than production orders; work in process would be relieved by backflushing (post deduct) and by a limited number of transactions on the floor. Also, various items are made using similar routings.

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Question Number: 1129 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance Overhead costs are usually allocated on the basis of historical direct labor hours. If a company uses this method to allocate overhead, under which of the following circumstances will the overhead be properly absorbed? A) Unit volume increases B) Unit volume decreases C) Unit volume does not change D) Sales remain unchanged The correct answer is: C

The absorption rate is calculated based on the budgeted overhead costs divided by the budgeted labor hours. If either of these factors change through increased or decreased unit volume, then the overhead variance will be under or over absorbed. Sales can remain unchanged even though the unit volume has changed. (Pricing can change with the market.)

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1130 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance The time required between the completion of each successive end product is called: A) interoperation time. B) throughput time. C) tact time. D) queue time. The correct answer is: C

Tact time is the time required between completion of each successive end product. It is synonymous with drumbeat and cadence and sets the product rate for the line in high volume factories. It is measured by timing the time change between each end product.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1131 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance What changes are required by employees in a JIT environment? I. More specialization II. More involvement in solutions III. More group improvement effort

A) I and II B) I and III C) II and III D) I, II, and III The correct answer is: C

Employees become less specialized in job function while being more involved in solving problems and in group teamwork.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1132 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance Why is it beneficial to cluster suppliers near each other, particularly those a significant distance away? A) It provides efficient use of buyers time. B) They can easily share quality information. C) It allows for reduced freight rates or fewer less-than-truckload shipments. D) They can share ownership in each other's companies. The correct answer is: C

Frequent deliveries of less-than-truckloads would be very expensive. However, by grouping suppliers near each other, frequent small lots can be obtained with favorable freight costs.

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Question Number: 1133 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance Which of the following is true about SPC? I. Control charts are maintained only for later use II. It is a quality control function III. It eliminates quality control jobs

A) I B) I and II C) I, II, and III D) None of the above

The correct answer is: D

None of the answers are really true about SPC. While charts are maintained, they are used as a tool to correct processes which vary. It is not really a quality control function as it requires the factory workers to understand and adjust.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1134 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance Which of the following are factors to consider in seeking a pilot area for beginning statistical process control? I. Need for improvement in the area II. People are receptive to learning III. Able to measure improvement

A) I and II

B) I and III C) II and III D) I, II, and III The correct answer is: D

All the answers are factors to consider in selecting a pilot area. As with any new "change" project, success quickly and early is important.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1135 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance When quality problems are being identified by customers, a company should respond by: A) hiring more inspectors. B) hiring better machinists. C)

establishing a preventive quality control plan. D) giving credit to the customer. The correct answer is: C

While giving credit to a customer solves the short-term anguish, a company that has ongoing quality problems needs to establish a total quality management program. This would ensure a long-term, improvement approach to quality.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1136 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance If resources are "tight", which of the following educational sources would be most cost effective for a SPC program? A) Outside training seminars B) Develop training inhouse C) Local education institution

D) Outside consultant to conduct initial training The correct answer is: D

An outside consultant can provide in-house training to large groups at all levels. It is important that the person is knowledgeable and has good presentation skills so the message is delivered clearly. While in-house materials could be cheaper, the message may not carry the same credibility.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1137 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance Small group improvement activities (SGIA) serve which of the following purposes? I. Develop the potential of the human "asset" II. Maintain or improve worker morale III. Implement and manage change

A) I and II B) I and III C) II and III D) I, II, and III The correct answer is: D

Small group improvement activities serve all of the above purposes and others, including: increased awareness, the capability to learn from each other, and development of leadership abilities.

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Question Number: 1138 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance Incoming inspection is not required from a certified supplier for which of the following reasons? I.

The supplier is the lowest cost producer. II. The supplier meets the established criteria for quality, cost, delivery and count objectives. III. The supplier has developed an internal process for producing quality parts.

A) I and II B) I and III C) II and III D) I, II, and III The correct answer is: C

Certified suppliers consistently meet established criteria for quality, cost, delivery, and counts. This may not mean they are the lowest cost supplier. The cost may in fact be higher than others, but as partners, they will work to reduce costs. Incoming inspection is eliminated because the supplier has developed an internal process for producing quality parts.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1139 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance The concept, "zero defects" as it relates to quality improvement can be best defined by which of the following? A) Any quality less than zero defects shows poor workmanship. B) As long as defects exist, actions must be taken to correct them in the process. C) Zero defects is impossible, so continued higher acceptable quality levels are okay. D) None of the above The correct answer is: B

A "zero defects" program must build an attitude that anything less than zero defects requires corrective action to move the organization towards zero defects. The cause of defects of any kind must be corrected.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1140 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance In a JIT manufacturing environment, the cost system should do which of the following? I. Collect detailed costs of labor II. Record the in and out transactions to a work cell but not one machine III. Performance measures should optimize total costs

A) I and II B) I and III C) II and III D) I, II, and III The correct answer is: C

Because the JIT environment is simplified, costs only need to be gathered into and out of the cell in total. The need to gather detailed labor data is reduced or eliminated as labor becomes a very low ratio of total cost of production.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1141 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance During a continuous improvement implementation, excess labor and capacity usually become available. This provides an opportunity to: A) layoff the excess labor to reduce costs. B) lease the open space to form an incubator for small companies. C) cross-train the excess labor for other jobs or preventive maintenance. D) clean the facility. The correct answer is: C

The excess labor needs to be further trained for new jobs. They should not be laid off as the trust developed during the continuous improvement implementation will be lost. While leasing the space is an alternative, finding new business would be more lucrative.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1142 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance Which of the following would be good measures to report to workers regarding the progress of the JIT implementation?

I. Higher machine utilization II. Reduced floor space III. Reduced lead time IV. Reduced inventory

A) I, II, and IV B) I, III, and IV C) II, III, and IV D) I, II, III, and IV The correct answer is: C

Machine utilization would be measured, as the output of the plant or team becomes important. Utilizing machines to produce inventory just to achieve utilization is waste.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1143 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance Under the TQC (Total Quality Control) philosophy, a customer is defined as: A) Another company you sell to B) A division or department to which you send products C) A following operation D) All of the above The correct answer is: D

A customer is any subsequent entity which uses your products or services. The customer can be internal (next operation) or external to the company.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1144 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance Under the TQC (Total Quality Control) philosophy, a supplier is defined as: A) Another company you buy from B) A division or department you receive products from C) A previous operation D) All of the above The correct answer is: D

A supplier is any previous entity from which you receive products or services. The supplier can be internal (preceding operation) or external to the company.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1145 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance The term, "empower", can best be defined by which of the following? A) The right to hire and terminate personnel B) Authorize the payment of invoices C) Enable or give authority D) Dictate the rules The correct answer is: C

To enable or give authority to people empowers them to be able to make improvements in their work place. This authority generates dramatic improvements.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1146 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance Small group improvement activities work best if a team spirit develops and everyone is allowed to contribute to the success of the team. All of the following are ways to build a team EXCEPT: A) Name the team to give it an identity B) Chart progress toward the team goal or objectives C) Provide constructive criticism whenever possible D) Establish clear objectives to be completed The correct answer is: C

Team building involves stressing the positive results of the team. While criticism at times might be warranted, the group will destroy trust if members criticize each other. The team should be kept on a track of successful and positive results.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1147 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance Which of the following are the responsibilities of an SGIA team leader? I. To make decisions when the group cannot II. To facilitate the groups' activities III. To organize the groups' activities

A) I and II B) I and III C) II and III D) I, II, and III The correct answer is: C

The leader is the group facilitator and organizes the team but makes no decisions. Those should be made by consensus.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1148 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance Which of the following can be considered factors in the success of an SGIA? I. Management support and commitment II. Clear goals always established by management III. Educating and training all personnel IV. Recognizing and rewarding the group

A) I, II, and IV B) I, III, and IV C) II, III, and IV

D) I, II, III, and IV The correct answer is: B

Clear goals can be established early in the process by management; however, goal setting should be done by the SGIA's over time.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1149 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance Traditional measurements of manufacturing are not as useful in the flow manufacturing environment. Which of the following would be good measures to use? I. Machine utilization II. Defect rates III. Setup times

A) I and II B) I and III C) II and III D) I, II, and III The correct answer is: C

Whether or not the machine is utilized is not important in the flow manufacturing factory. It is better to have the machine idle rather than have the machine produce inventory which is not needed. Reducing defect rates and setup times are much more important.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1150 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance In a Just-in-Time company, purchasing is conducted differently than in traditional companies. Which of the following are true statements regarding the purchasing function in JIT? I.

Scheduling must provide requirements which are reasonably accurate. II. Vendors should just keep inventory buffers at their facility to provide Just-in-Time service. III. The Just-in-Time process should be completed at the customer site first before including the vendor.

A) I and II B) I and III C) II and III D) I, II, and III The correct answer is: B

By implementing Just-in-Time practices in the customer facility first, the vendors can see first-hand how Just-in-Time works to reduce costs and increase flexibility, and it shows them the customer is serious about improving operations. The supplier also needs to be sure this is not an attempt to keep the inventory at his facility which would not reduce costs, only shift them.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1151 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance One of the early steps in implementing Just-in-Time in the purchasing department is to: A) order the vendors to reduce their costs by 5%. B) begin a process of reducing the number of vendors from which the company receives products. C) redesign the purchase order form to make it more efficient to use. D) implement a supplier rating system. The correct answer is: B

Purchasing needs to reduce the number of suppliers if they are going to have a cooperative relationship with vendors. Purchase orders should be eliminated, not redesigned, and cost reductions should occur over time in an ongoing effort by the customer and supplier.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1152 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance There are many obstacles to implementing JIT in a manufacturing environment. Which of the following obstacles would be considered most difficult to overcome? A) Distrust between vendor and customer B) Attitude of "it can't work here" C) Conventional manufacturing performance measures D) Setup time reduction The correct answer is: C

All of the obstacles listed are difficult to overcome; however, many performance measures in manufacturing run contrary to JIT operations. For example, machine and labor utilization can be efficient by producing inventory which becomes obsolete; or, purchase price variance measures cause purchasing to focus on price first rather than quality and service. There are dozens of measures by which manufacturing companies are run today.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1153 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance In order to implement change successfully, people must be motivated to focus their energy towards the improvement process. Which of the following would provide this focus? A) Survival of the company in competitive times B) Improved pay for better profits C) Improved benefits D) Better market share The correct answer is: A

Often times, companies do not respond to competition until the survival of the company is threatened. This provides the focus for people throughout the company to rally behind a common cause. Unfortunately, many companies react too late and don't survive.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1154 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance Often times, quality problems can be traced to management's role in the quality process. Which of the following contribute to inferior quality? I. Quality objectives are not clearly stated. II. Management expects perfect quality. III. Inferior quality is attributed to inferior people. IV. Quality standard measurements vary with business conditions.

A) I, II, and IV B) I, II, and III C) I, III, and IV D) I, II, III, and IV The correct answer is: C

Management must maintain high expectations of quality (continually moving towards perfection), must clearly communicate the objectives to employees, and be consistent with their expectations. They cannot allow poor quality to be shipped so results are good for the month.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1155 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance Which of the following are process analysis tools? I. Flowcharts II. Scatter diagrams III. GANTT chart

A) B) I and II C)

I and III D) I, II, and III The correct answer is: B

Flowcharts are used to analyze any process whether it is material or information related. Scatter diagrams are also used to identify correlation's between data points from a process. GANTT charts are used for scheduling to measure actual performance against the planned schedule.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1156 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance Which of the following statements best describes the term Total Quality Control (TQC)? A) Statistical tests of product attributes to identify sources of defects B) Elimination of inspection stations on the shop floor C) The total cost of quality is below plan each year

D) The integrated process of producing the total product characteristics to meet customer expectations The correct answer is: D

According to the APICS dictionary, "Total Quality Control is the process of creating and producing the total composite product and service characteristics by marketing, engineering, manufacturing, purchasing, etc., through which the product and service, when used, will meet the expectations of customers".

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1157 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance Many companies use a final inspection process to detect quality defects. Which of the following would best describe why this method fails to improve quality? A) It fails to find defects at the source. B) It does not include team problem solving. C) There is never enough money spent on final inspection.

D) There are not enough inspectors in most companies. The correct answer is: A

Final inspection processes are not effective in improving quality because the defect is not found and eliminated at the source. In fact, by the time the final inspectors have found the defect, many more parts have been produced. This causes the problem to compound.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1158 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance Which of the following must an organization do if it is to improve quality? I. Identify the root cause of the quality problems II. Use statistical sampling III. Reduce process variability

A) I and II B) I and III C) II and III D) I, II, and III The correct answer is: B

In order to improve quality, companies must identify the root cause of the quality problem. Only then can solutions be found which will permanently eliminate the cause of the problem. The other correct answer is to reduce and eliminate the process variation. This can be achieved by first conducting a process capability study to determine the capability of a process to maintain characteristics within tolerance. Statistical sampling will not improve quality by itself.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1159 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance Traditional measurement systems concentrate on the costs associated with producing the product, especially the labor content. Which of the following are reasons why these traditional accounting measures are no longer valid?

I. Labor is becoming a smaller component of the product cost II. Firms provide solutions in addition to product III. Throughput is more important than capital utilization

A) I and II B) I and III C) II and III D) I, II, and III The correct answer is: D

In today's manufacturing environment, traditional accounting measures based on direct labor are no longer valid because labor is a very small cost component, usually less than 10%. Additionally, companies are providing more services to enhance their products, such as inventory management for customers, logistical support, or design team involvement. Material velocity through the plant is a better measure of success than machine utilization, especially if the machines are being utilized to make inventory.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1160 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance Quality generally improves in a JIT company because: A) more inspectors are hired. B) small lots uncover the defects quicker. C) the suppliers are better. D) the paperwork is simple. The correct answer is: B

The quality improves because the smaller lots allow the defects to be found quicker. The cause and corrective action processes are usually better than in traditional factories and the workers are the people working on the problem for resolution. The suppliers are often times the same suppliers of the traditional manufacturer. But with JIT, they are treated differently. They are provided with information and are dealt with honestly.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1161 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance Which of the following are the benefits of a good quality program? I. Improved scrap reporting II. Reduced material handling III. Reduced inventory

A) I and II B) I and III C) II and III D) I, II, and III The correct answer is: C

A good quality program provides many benefits to a company. These include less scrap, less rework which reduces material handling, and less inventory due to the smaller lot sizes and faster setups. Improved scrap reporting would not be a benefit of a good quality program.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1162 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance In a JIT operation, small lots are usually run, yet the cost of the part does not rise. This is because: A) accounting reallocates the costs. B) purchasing is able to buy more effectively. C) setup times are reduced. D) tooling costs are minimized. The correct answer is: C

The reason that small lots can be run, yet the costs stay level is that setup times are reduced dramatically, sometimes by ninety percent. Additionally, when lot sizes can be reduced, the work in process inventory will also go down in value.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1163 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance Which of the following are characteristics of a supplier partner? I. Single source II. Ability to provide frequent deliveries III. Excellent quality, consistently IV. State of the art computer systems

A) I, II, and III B) I, III, and IV C) II, III, and IV D)

I, II, III, and IV The correct answer is: A

Suppliers should be considered partners and must be treated that way. Therefore, they should be single source suppliers, be able to provide frequent deliveries of small lots (without building inventory), and have the process capability to provide excellent quality on a consistent basis.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1164 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance When a quality problem surfaces within a process, the problem can be identified and analyzed using a cause and effect diagram. This cause and effect analysis is usually made using a: A) fishbone diagram. B) SPC chart. C) force field analysis. D)

Pareto analysis. The correct answer is: A

A cause-and-effect diagram (also known as a fishbone diagram) is a tool for analyzing process problems. The diagram identifies the causes and subcauses leading to a symptom (or problem).

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1165 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance When purchasing a product, a buyer demands that certain characteristics be present in an acceptable combination in order to consider a product in the running for purchase. These features and values are called: A) quality functions. B) order qualifiers. C) product specifications. D) product conformance.

The correct answer is: B

Order qualifiers are those competitive characteristics that a company must exhibit to be a viable competitor in the marketplace. Buyers will usually apply a single criterion to their list of qualified candidates in order to make a selection. This is called the order winners.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1166 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance One common measure of product reliability is the: A) number of service calls. B) amount of warranty costs. C) number of repairs. D) mean time between failure (MTBF). The correct answer is: D

The mean time between failures measures the average time interval between failures for a repairable product. Design engineers use this criteria to determine the probability that a product will perform its specified function under prescribed conditions without failure for a specified period of time. It is a design criteria that can be made part of the design requirements.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1167 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance A common measure of product durability is the: A) mean time for failures. B) amount of warranty costs. C) number of service calls. D) number of repairs. The correct answer is: A

The mean time for failures (MTTF) is a measure of durability applied to products that are generally replaced, not repaired. For example, a light bulb is expected to last a certain number of hours before it fails. It measures the time that will elapse before the product will fail.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1168 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance The measure of how easy it is to return a product or machine to functional condition after it has failed is known as: A) repairabili ty. B) warrra nty. C) serviceabili ty. D) componentizati on. The correct answer is: C Serviceability is a design characteristic that allows easy and efficient performance of service activities. It is important to customer service and efficient operations that machines and components are easily serviceable.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1169 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance The costs of scrap, rework, inspection, and low production yields would be classified as: A) external failure costs. B) statistical quality costs. C) process control costs. D) internal failure costs. The correct answer is: D

Internal failure costs are costs which incurred prior to receipt of the product by the customer. These would generally include the costs of scrap, rework, inspection, and low

production yields. Internal failure costs can also include lost capacity and the cost of downgrading products to second quality.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1170 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance Warranty claims, repairs, and service costs would be classified as: A) internal failure costs. B) statistical process costs. C) total quality costs. D) external failure costs. The correct answer is: D

External quality costs are those quality costs incurred after the customer has received the product. These would include warranty costs, repairs and service costs.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1171 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance Which of the following would be true regarding a quality and a process? A) Quality can be inspected into a process. B) The further into the process the more a defect costs. C) Statistical processing will ensure a perfect process. D) If the customer accepts a partial defect than the quality is adequate. The correct answer is: B

The more value that is added as the process moves toward completion, the more costs are accumulated. It would therefore cost more for a defect to occur.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1172 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance The costs of inspecting material upon arrival, during manufacture, in laboratory tests, and by outside inspectors are classified as: A) warranty costs. B) statistical process costs. C) appraisal costs. D) prevention costs. The correct answer is: C

Appraisal costs are those costs associated with inspecting (appraising) the products. These would include all the inspections which occur throughout the receiving, manufacturing, and shipping processes.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1173 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance All of the following are types of quality costs EXCEPT: A) Internal failure costs B) External failure costs C) Appraisal costs D) Statistical processing costs The correct answer is: D

Statistical processing costs would not be a type of quality costs. However, it would be part of the fourth type, prevention costs, which are the costs associated with preventing quality defects.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1174 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance A supplier has delivered products with damaged packaging. However, after further inspection, the damage has not impacted the performance of the part. Which of the following actions should be taken? A) Use the product as is. Call the supplier. The damage most likely happened in transit. B) Complete a corrective action form for resolution by the supplier. The supplier will need to document an improved package for the product. C) No further action is required. D) File a claim with the transportation carrier. The correct answer is: B

A corrective action form should be initiated for resolution from the supplier. Regardless of the cause of the damage, the receiving firm will be less productive inspecting and making sure the product is useable. It is also important that the corrective action is documented...a phone call can be easily forgotten.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1175 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance In 1987, an international set of quality standards was developed to help companies effectively document the quality systems elements to maintain an efficient quality system. This set of standards is known as: A) ISO 5000. B) ISO 14000. C) ISO 9000. D) ISO 8000. The correct answer is: C

ISO 9000 series standards provide the structure and guidelines for maintaining an effective set of documented procedures for ensuring consistent quality products. A company must successfully pass an independent quality audit which reviews the quality system and the adherence to the system. An audit review must be conducted each year or semi-annually to maintain the certification.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1176 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance It is always important to monitor and feedback performance to the suppliers. In a JIT environment, however, supplier performance is vital to the ongoing operation of the business. Deliveries must be made on time, quantities must be exactly right, and quality must be perfect. Shipments are usually made within tight time windows and must be adhered to. Which of the following best describes why the demands are so rigid on a JIT supplier? A) There are less people in a JIT factory to deal with late deliveries. B) The suppliers charge more so the demands are greater. C) Buffers for error have been eliminated. D) There is no excess capacity to make up for mistakes. The correct answer is: C

In a Just-in-Time environment, waste has been eliminated from the operation. As a result, there are no buffers of inventory to make up for poor quality or late deliveries. A JIT supplier is required to deliver frequently, on time, perfect quality parts in exact quantities at competitive prices. Mistakes by the supplier could create serious operational costs.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1177 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance By conducting quality audits on suppliers or by implementing a certified supplier program, a company hopes to eliminate the: A) receiving paperwork. B) quality control function. C) need for a large buying staff. D) inspection process for incoming parts. The correct answer is: D

By conducting quality audits, either by internal quality auditors or by an external third party certifier, a company can ensure that a quality system is in place and there can be adequate assurances that quality parts are being delivered. This process would then allow a company to receive parts directly for use without an inspection process.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1178 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance Often, even in a JIT environment where parts are sole sourced, there will be another approved supplier who is not used unless a problem develops with the primary supplier. This approved but unused supplier is called a(an): A) alternate supplier. B) just in case supplier. C) select supplier. D) developing supplier. The correct answer is: A

An alternate supplier is a supplier that has been approved for use. They may not be used especially in a sole sourced situation. However, if a problem develops with a sole-source supplier, the approved supplier can provide the necessary parts.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1179 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance In an assembly flow line where the manufacture of the finished serialized product takes less than an hour, where would be the most appropriate location for a data collection device (bar code)? A) At the beginning of the line B) In the middle of the line C) At the end of the line D) All of the above locations The correct answer is: C

When product is assembled in less than an hour, it would be best to have the data collection device at the end of the line with the finished transaction providing for the backflush of materials and labor. This is especially true when the product is serialized and the serial number needs to be recorded.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1180 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance When a company receives a delivery from a supplier, a sample of the delivery will often be taken for inspection. Which of the following describes the objective of the sample? A) The sample will be indicative of the whole delivery. B) Determine whether to do a 100% inspection. C) Meet the customer's requirements. D) Determine whether to send the delivery back. The correct answer is: A

An adequate number of samples are taken to ensure that the sampling process is a good indicator of the entire delivery. While further sampling may be taken depending on the initial sampling results, the real objective is to clear the delivery.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1181 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance A company has an ongoing cycle count program in which errors are identified for correction. Which of the following best describes the action which should be taken when an error in the inventory balance is identified? A) Adjust the inventory balance to reflect the count. B) Count the inventory again and adjust the record. C) Count the inventory again and identify the cause of the error before adjusting the record. D) Wait until the next count on the next cycle. If it is off again adjust the record. The correct answer is: C

The reason that a company cycle counts is to maintain accurate inventory information. Most of the systems will use the inventory information for planning and control. Cycle counting is not about identifying errors and adjusting the inventory records. There needs to be an ongoing process of finding the causes of the inventory errors before the records are adjusted. Otherwise, the records could be continually adjusted and always be inaccurate.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1182 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance In order to properly manage a factory floor and to provide feedback to customers regarding order status, it is important to know, at any time, the status of the production orders in process. Generally, this will require that transactions are entered into the system. Which of the following processes would be most efficient in transacting the information? A) Screens to complete at each work center B) Travelling work orders to complete C) Data collection devices at each work center to scan the parts D) Backflushing the labor and materials, based on a bar code device, when the order is completed The correct answer is: C

Bar code readers/scanners at each work center would provide the status necessary for the customer service people and manufacturing management to track the orders' progress. While backflushing would be most efficient in terms of transactions, the information would not be updated frequently enough for the statues to be useful. This would be especially true if the cycle time for completion is long.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1183 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance Tracking the orders through manufacturing is important for manufacturing management and customer service. It is necessary to provide customers with updates as to their orders progress and estimated completion. However, these are not the only reasons to track the orders on the factory floor. Which of the following is another reason to track the orders progress? A) To provide cost and time estimates for quotes and new orders. B) To determine the rated capacities of the various work centers C) To calculate the utilization and efficiency of the work centers D) To be able to run the CRP process The correct answer is: A

Tracking of orders is necessary in order to understand how long new orders will take and the estimated cost of the new order to complete a quote for the customer. If the orders are not tracked, then the load and capacity constraints would not be known, thereby eliminating the ability to estimate accurate lead times.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1184 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance Many companies, to ensure ongoing quality, graph the results of tests during the manufacture of their parts. These tests and the graphing are used to detect shifts in the mean value of a process so root cause can be identified and corrective action taken. These graphs are known as: A) process flow documents. B) process maps. C) process control charts. D) process engineering charts. The correct answer is: C

Process control charts are charts of test results at periodic intervals to ensure that the process of manufacturing is within the acceptable range. As the process control chart begins to detect shifts in the results indicating that the process is moving out of the acceptable range, then the operator needs to adjust the process to move it back into the acceptable range.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1185 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance In order to efficiently ensure the quality of a product is adequate, companies will take a predetermined number of samples and have a preset number of samples that must pass in order to accept the entire lot of product. This predetermined acceptance/rejection rate is established in the: A) control charts. B) sampling plan. C) supplier evaluation. D) receipt routing. The correct answer is: B

A sampling plan established the number of samples taken and the criteria for acceptance/rejection of the samples in order to accept the complete lot.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1186 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance A company has just received 100 parts from a supplier. How many samples would need to be taken to determine if the complete load is acceptable? A) 10 % B) 30 % C) 50 % D) Depends on the supplier's reliability and quality history The correct answer is: D

The amount to sample must be determined through a sampling plan. How many to sample, depends on many factors including the quality history of the supplier, the criticality of the parts, the complexity of the parts, etc.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1187 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance One measure of supplier performance is the delivery performance measure. Which of the following measures would NOT be included in a delivery performance measure? A) Accurate paperwork B) Timeliness of the parts arrival C) Quantity agrees to the purchase order D) Cost on invoice agrees with purchase order The correct answer is: D

Delivery measures to include in a supplier performance measure would include accurate paperwork, on time delivery, and a quantity which equals the ordered amount. Cost measures will generally be included in a cost measure of the supplier.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1188 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance Many companies today, especially in the high tech industry, have their suppliers manufacture their products for them. The suppliers than ship the products directly to customers. This process is known as: A) external production. B) outside processing. C) purchasing capacity. D) contract manufacturing. The correct answer is: D

Contract manufacturing is the process of having a supplier manufacture the complete product for shipment to the customer. The supplier is efficient at manufacturing and the buying firm is efficient at sales and design. The arrangement is supposed to provide the best of both worlds and increased efficiency.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1189 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance If a supplier is certified, it would indicate that the supplier maintains an adequate quality system. This allows the buying company to skip the inbound inspection and put the parts directly into an appropriate location next to the production line. This location is known as: A) floor stock location. B) point of use location. C) pick location. D) feeder stock location. The correct answer is: B

The point-of-use location is the location next to the production operation where the product is used. The delivery by the supplier directly to the point of use location eliminates the inspection process and reduces costly handling.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1190 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance The Japanese, beginning with car manufacturing, began a process whereby the design of the production process was made error proof. The process ensured that the operator could not make a mistake in the manufacturing operation. This Japanese term is used universally today and is known as: A) pokayoke. B) kai zen . C) kaizen blitz. D) kiera tsu. The correct answer is: A

Poka-yoke is a quality technique oriented toward the design of nearly fool proof production systems. Developed by Shigeo Shingo at Toyota, the techniques eliminated the source of errors in production and, subsequently, quality problems.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1191 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance Many companies implement a management approach to long term success through customer satisfaction. This management approach is better known as: A) Total Quality Management (TQM). B) Total Quality Control (TQC). C) Total Productive Quality (TPQ). D) Total Process Management (TPM). The correct answer is: A

Total Quality Management is a management approach of long term success through satisfying the customer. It includes a tea approach with all employee involved in improving operations and processes focused on the customer.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1192 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance The process of creating and producing the total composite good and service characteristics by marketing, engineering, manufacturing, purchasing, etc. through which the good or service will meet the expectation of the customer is known as: A) Total Quality Management (TQM). B) Total Quality Control (TQC). C) Total Productive Quality (TPQ). D) Total Quality Engineering (TQE). The correct answer is: B

Total Quality Control is the process of defining the characteristics of the good or service by which customers expectations will be met. These characteristics are determined by marketing, manufacturing, purchasing, engineering, etc..

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1193 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance One of the greatest wastes to be found in manufacturing is the unexpected downtime of a critical machine. This downtime will cause capacity to be eliminated, parts to be backlogged and labor resources to be wasted while maintenance works on the machine. It also causes the schedule to be changed and customer deliveries to be delayed. This unplanned situation can be minimized by implementing: A) preventive maintenance scheduling software. B) a quality engineering program. C) total productive maintenance. D) a capacity cushion for these emergencies. The correct answer is: C

A Total Productive Maintenance program includes a preventive maintenance program as well as involving others in improving machine flexibility and material flow. Preventive maintenance really is the involvement of operators in maintaining equipment.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1194 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance A company has implemented a JIT system within the factory. As part of the implementation, they are using kanban cards to signal the production of parts and the movement of parts to the workcenter. The operator has just finished a lot of parts and is going to begin a new lot. However, a production kanban card is absent from the card holder. The operator should: A) make some "A" parts because they will be needed. B) look for the kanban card. C) stop production until the kanban card appears. D) call the supervisor for further instruction. The correct answer is: C

The production kanban card is the operator's authorization to produce another lot of parts. Without the authorization, the operator should stop producing. This is often a very difficult concept to understand because operators, very often, have been instructed to produce parts, even if they are not needed to meet current demand.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1195 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance In an assembly line environment set up for one piece flow, kanban signals are being used to authorize production at the next workplace. Which of the following would be the best signaling device for this environment? A) Light signal B) Kanban production cards and move cards C) Empty square between the workstations D) MRP planned order signal The correct answer is: C

In a flow assembly environment, parts are being assembled one at a time. Each station has part of the assembly and the line produces one unit at a time of finished product. In this environment, the empty square works best to control the flow of the line. When the square is empty, it is the authorization for the upstream operation to produce. If the square has a completed assembly in it, then production should wait until the square is emptied.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1196 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance Data collection using bar code technology provides all of the following EXCEPT: A) Simplified data recording B) Increased data accuracy C) Backflushing D) Real time throughtput information The correct answer is: C

Backflushing would typically be a function of the system capability into which the bar code data collection device is linked.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1197 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance An order for 100 has been processed by manufacturing. At operation 10, 90 finished units moved to operation 20. Ten units were scrapped. The yield for operation 10 would be: A ) 1 0 % B ) 9 0 % C) 10 0 % D) 11 0 % The correct answer is: B

Yield is the ratio of useable output from its input. In this case, there were 90 good units from materials which entered the operation to be able to produce 100. Therefore, the yield would be 90%.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1198 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance In many companies, standard cost is the cost method used to value inventory. This requires that variances between standard costs and actual costs be recorded. Standard costs are generally updated: A) wee kly. B) mont hly. C) quarte rly. D) annu ally. The correct answer is: D

Standard costs are generally updated annually. While some companies update them more frequently, the more frequent updating requires the recording of journal entries to update the inventory. The frequent updating will generally require more administrative work.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1199 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance The manufacturing operation has just picked an unplanned issue for the current operation. The unplanned issue has occurred due to scrap, which was unexpected. The cost of the unplanned issue, in a standard cost system, will be charged to: A) material price variance. B) usage variance. C) volume variance. D) purchase price variance. The correct answer is: B

A usage variance is recorded when the actual usage of materials is greater than the standard material usage required. If there is continuing unplanned issues for this component(s), then further investigation would be needed. It may be that the standard quantity is inaccurate or the operation cannot be completed with the standard quantity.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1200 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance Two criteria are useful in determining which costs are relevant to a particular inventory management decision. One criteria is: Does the cost represent an actual out of pocket expenditure? The second criteria is: A) Will having more inventory raise the cost? B) What is the additional cost of preparing the order? C) What is the carrying cost of the inventory? D) Will the cost vary with the decision being made? The correct answer is: D

When making cost decisions related to inventory, it is important to measure the actual out of pocket costs and whether the decision that is made affects the real costs of the business. A good example is the fixed costs associated with generating replenishment orders. The clerical portion of creating the orders is mostly fixed and the increase or decrease in the amount of orders generated will most likely not effect the cost of generating orders. This will hold true until the change in the number of orders is so great that additional help may be needed.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1201 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance The purpose of simulation is to develop a model that: A) is representative of the capacity in production. B) is a perfect match for the real system. C) behaves, for the most part, as the real system does. D) visually looks like the real system. The correct answer is: C

The purpose of a simulation is to develop a model that includes all important features of a system so that it behaves, for the most part, as the real system does. For a simulation to perfectly match the real system would be beneficial; it could be too expensive to build. By simulating the real system, the model can be used to evaluate performance under a variety of conditions, system arrangements, and control procedures before the real system is built.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1202 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance All of the following are a basic component of a simulation EXCEPT: A) System model and control procedures B) Internal inputs C) Exogenous inputs D) Performance measures The correct answer is: B

Simulations consist of three components: system model and control procedures, exogenous (external) inputs, and performance measures. Exogenous inputs are inputs that are not controllable by the systems designers. For example, the number of customers and their arrival patterns, job orders and equipment failures are all examples of exogenous inputs. Performance measures might include throughput time, facility utilization, and due date performance as examples.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1203 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance Which of the following is used to provide an understanding of the potential economic alternatives available to a decision maker? A) Decision tree B) Decision model C) Payoff table D) Force field analysis The correct answer is: C

A payoff table presents the potential economic outcomes of the alternatives available to the decision maker. Because the future is filled with uncertainty, the payoff table represents a range of potential future events.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1204 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance Benchmarking, as it relates to business performance, can be best defined as: A) a search for industry "best practices" that lead to superior business performance. B) finding the optimum performance of a machine. C) finding the target operation performance in statistical process control. D) meeting the due date in an optimal consistent manner. The correct answer is: A

Benchmarking is the process of identifying the industry best practices for superior business performance and using them in your business operation to improve performance. Most often, benchmarking is used to look at all industries for the best practices. It is important that the benchmarking process looks outside the industry in which the company competes to find the best practice.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1205 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance A cost report has just been generated which shows a large material variance between standard cost and the actual price paid. You should call: A) accounting . B) purchasing . C) engineering . D) factory manager. The correct answer is: B

Material price variances occur when the price paid varies from the standard cost of the material. This will occur when the price of a part rises unexpectedly from the standard that was set. The purchasing manager should have an understanding of the cause of the variance and whether it will continue in the future.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1206 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance A company is producing products in a repetitive manufacturing line at the rate of 1800 units per day with 10 people. The company has chosen to backflush materials and labor at the standard. How will the company know if the labor is being used efficiently? A) Record actual labor each day and compare to the daily standard. B) Accumulate labor component costs in the general ledger. C) Compare the actual weekly payroll to the "earned" standard labor. D) They won't know but it doesn't matter. The correct answer is: C

By setting up a repetitive manufacturing line, the manufacturer has made a commitment to eliminating waste. Recording labor for each order is a waste unless the labor component is a very high portion of the total cost of the product...a rarity these days. By backflushing labor and materials, the manufacturer has eliminated the voluminous transactions that usually occur to record labor and materials. Therefore, a simple way to evaluate labor costs is to compare the payroll actual costs to the standard backflushed costs. If there is a wide variance, then investigate the cause.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1207 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance From an accounting perspective, when materials are issued to a work order, they are put into: A) raw material inventory. B) work-in-process inventory. C) finished goods inventory. D) cost of goods sold. The correct answer is: B

When raw materials are withdrawn from raw materials inventory and issued to a work order, they are then moved to a work-in-process inventory account. They remain in workin-process until they are completed and moved to finished goods. When the finished goods are then sold to a customer, the cost of goods sold account is then charged.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1208 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance Within a JIT environment, many of the "old" measures used in cost accounting no longer apply. All of the following are good measures in a JIT environment EXCEPT:

A) Sales dollar per employee cost B) Units sold per employee C) Sales dollar per employee D) Direct labor utilization The correct answer is: D

Direct labor utilization is a specific measure of the output per manufacturing employee. A better measure for a JIT environment would be to measure the sales (or units) per every employee employed by the firm. In a JIT environment, manufacturing employees are not just manufacturing parts but may also be participating in problem solving teams or design teams.

Copyright 2003, Datachem Software, Westboro, MA

Question Number: 1209 EXECUTION & CONTROL OF OPERATIONS (ECO) :Evaluating Performance Depending on the company, a variety of measures are used to determine how the business and each operation is doing. The important objective of a set of measures is that they are simple to implement and understand; and: A) they can be graphed for visibility. B) they cause the right behaviors from employees and managers. C) they are politically correct. D) they reflect each department favorably. The correct answer is: B

The problem with many measures is that they cause the wrong behaviors to occur. If a manager is being evaluated on labor utilization, that manager may be forced to produce more inventory of "A" items to maintain labor utilization. If the same manager was evaluated based on process improvements, then operators would be encouraged to identify improvements and be allowed to work on those projects. The managers behavior will change based on the measurement. ‫ش‬