When evaluating the quality of a forecast, it is possible to have Bias 0 and MAD 0 at the same time. A) True B) False 2.

1. When evaluating the quality of a forecast, it is possible to have Bias < 0 and MAD > 0 at the same time.A) TrueB) False2. The quality of a product is considered to be an order winner if price is the deciding factor in the customer's final decision to purchase the product, and product quality is only used by the customer to screen out options with unacceptably low quality.A) TrueB) False3. An increase in productivity can only occur if output increases over time.A) TrueB) False4. The design for manufacturing and assembly (DFMA) process aims to design a product so that it is easy to make, often by simplifying the product so that it has fewer parts.A) TrueB) False5.The line of visibility is used to divide the operations of a service process into two groups, one group of operations in which system failures are likely to occur, and another group in which poka-yokes have been implemented in order to prevent failures from occurring.A) TrueB) False6. Although many consumers receive a large quantity of sales material through the mail, the service-system design matrix indicates that some form of face-to-face contact provides greater production efficiency than does mail contact because it is easier to describe a product to a consumer than it is to have the consumer read written material.A) TrueB) False7. The sharing of information between customers and suppliers in a supply chain should decrease both variability and uncertainty, enabling companies in the supply chain to reduce their inventories and shorten delivery lead times.A) TrueB) False 8. When a company uses a make-to-stock production approach, the scheduled production levels are based on a forecast of demand.A) TrueB) False9. Total Factor Productivity (TFP) is calculated as:TFP = Output/(Labor + Capital + Materials + Energy)A) TrueB) False10. One strategic use of the service-system design matrix is to permit comparisons with how other competitors deliver a specific service, and to determine where a competitive advantage resulting from a different delivery method may be present.A) TrueB) False11. From the perspective of a company in the middle of a long supply chain, its customer relationship processes include the interaction its sales force has with its customers.A) TrueB) False12. The primary purpose in building a house of quality matrix is to aid a cross-functional team in making decisions related to marketing and engineering design decisions, with the goal of creating a product that will satisfy customers.A) TrueB) False13. The focused factory approach often involves subdividing one plant (factory) into several different "plant within a plant" (PWP) entities, each focused on producing a single product or a narrowly defined family of similar products.A) TrueB) False14. The value analysis and value engineering processes are intended to identify product changes that can reduce costs through actions such as eliminating nonstandard components or unnecessary design features.A) TrueB) False15. If a queuing system has a limited-size customer pool, it is treated as having a finite population.A) TrueB) False Part II: Multiple Choice Questions 16. Delaying the process step that differentiates the product to a point late in the supply chain is calledA) a responsive supply chain.B) process postponement.C) an outsourcing strategy.D) the bullwhip effect.E) process positioning.17. Given the following information (RSFE and MAD) on the quality of a forecast, and using the tracking signal (TS) range presented in class, in which period would the tracking signal first classify the forecast as being "out of control"?MAD20 15 21 28 20 A) in period 2.B) in period 3.C) in period 4.D) in period 5.E) in period 6. 18. A product requires 32 distinct steps to manufacture, with a total work content of 69 minutes. Demand for the product requires that the single assembly line must produce one unit every 6 minutes. If it is possible to balance the line using the theoretical minimum number of workstations, what level of throughput efficiency (TE) will be achieved?A) 100% TEB) between 95.1% TE and 99.9% TEC) between 93.9% TE and 95.0% TED) between 90.9% TE and 93.8% TEE) less than 90.9% TE19. Which of the following is not one of the seven characteristics of a well-designed service system?A) It is robust.B) It ensures complete independence and separation between the "back office" and the "front office."C) It is cost-effective.D) It manages the evidence of service quality so that customers see the value of the service provided.E) Select this answer if you think that all of the above (a,b,c,d) are characteristics of a well-designed service system.20. Which of the following statements does not characterize the quality function deployment (QFD) process?A) QFD helps marketing and engineering work together on design decisions.B) QFD helps identify the product characteristics that are important to the customer.C) QFD uses a "house of quality" matrix to show how customer requirements relate to the technical characteristics of a product.D) QFD uses customer input to identify how a product performs relative to competitors' products.E) Select this answer if you think that all of the above answers (a,b,c,d) correctly characterize the QFD process.21. Although some sources say that the best operating point for a service facility is at approximately 70% of the maximum capacity, the optimal utilization rate depends on the context. In which of the following situations would it be most appropriate to operate at a relatively low percent of maximum capacity?A) A dry cleaning (laundry) operation.B) Processing membership applications submitted by mail. C) The checkout lane in a grocery store.D) The Samaritan Hospital emergency room.E) A flight on United Airlines. 22. Actual sales in April and May were 50 and 60 units, respectively. Forecast sales for those same two months were 55 and 65. Which of the following statements about the two forecasts is true?A) The average error is -5 and the MAD is -5.B) The average error is -5 and the MAD is 5.C) The average error is 0 and the MAD is 0.D) The average error is 5 and the MAD is 5.E) None of the above statements (a,b,c,d) is true.23. A copy center served 1,841 customers last week. The center was open 7 days per week, 8 hours per day, and runs 1 shift per day. There are 4 employees each working an 8-hour shift per day. What was the labor productivity at the copy center last week?A) 2.1 customers per labor hour.B) 4.1 customers per labor hour.C) 8.2 customers per labor hour.D) 16.4 customers per labor hour.E) 57.5 customers per labor hour.24. An operation (routing) sheet does which of the following?A) It shows how parts go together and the order of assembly.B) It shows an "exploded" view of the product and its components.C) It defines symbolically, and in great detail, the operations performed.D) It specifies the sequence of machines or workcenters used to assemble the product.E) It shows the route taken from the supplier to the warehouse. 25. Given the following quarterly demand data for 2013 - 2014, what is the multiplicative seasonal index for quarter 4?2014113 132 143 118 A) less than 0.50B) between 0.50 and 0.80C) between 0.81 and 1.10D) between 1.11 and 1.40E) greater than 1.40 26. Using the data given in the previous problem (and reproduced in the table below), if the seasonal index for quarter 3 is 1.125, what forecast (rounded to the nearest integer) should be made for quarter 4 of 2015?2014113 132 143 118 A) 91B) 104C) 115D) 127E) 14227. The following table lists the anticipated profits associated with five alternate product innovations using two possible scenarios: low demand (30% probability) and high demand (70% probability.) Based on the expected value criterion, which product innovation should be selected?EE30 50 A) AAB) BBC) CCD) DDE) EE28. Given a similar decision situation as in the previous question (NOTE: this is not the same decision table), and assuming that the probabilities of each demand situation are not known in this case, which option should be selected if the decision maker applies the maximin decision criterion?EE35 40 A) AAB) BBC) CCD) DDE) EE29. Which of the following answers characterizes a continuous flow process most accurately?A) high volume production, limited variety of products, and high labor cost per unitB) high volume production, large variety of products, and low labor cost per unitC) high volume production, limited variety of products, and low labor cost per unitD) low volume production, limited variety of products, and low labor cost per unitE) low volume production, large variety of products, and high labor cost per unit 30. Consider two firms that provide the same product to customers. Company A uses a make-to-order (MTO) process, while Company B uses a make-to-stock (MTS) process. Which of the following statements about the way each firm meets customer demand is not true?A) Company A (MTO)will have a longer delivery lead time than will Company B (MTS)in most cases.B) Company A (MTO)will be better able to provide a customized product than will Company B (MTS).C) While making the product, Company A (MTO)will have a greater need to keep track of individual customer orders and requirements than will Company B (MTS).D) When determining production schedules, Company A (MTO)will rely more heavily on forecasts of customer demand than will Company B (MTS).E) Both Company A and Company B may choose to sell only standard products to their customers.31. A comparison of two computer manufacturers found that by implementing improvements in its supply chain, one company was able to reduce its average supply of key components to only 3-6 days' supply of inventory, as compared with their competitor, which held an average of 35 days' supply in inventory during the same time period. Both companies used an assemble-to-order process to manufacture computers from standard vendor-produced components.Using Hau Lee's Supply Chain Uncertainty Framework (JC13 textbook, p. 380), identify which type of supply chain strategy is needed to fit the situation described above, and discuss actions that a company could take to improve supply chain performance. Then, provide some specific examples of how a computer company, operating in an industry with frequent technological improvements, would be in a better competitive position with only three days' supply of components in inventory vs. a competitor with 35 days of components in inventory.32. Labor productivity question33. Companies can compete in many ways, not only through marketing efforts but also through operations, by the approach used to make and deliver products or provide service. Review the various ways that a company can compete through its operations capability, and describe how better product and process design, supply chain management, and capacity management can help a company compete in areas such as cost, quality, delivery speed, delivery reliability, and flexibility. [Your answer can be a maximum length of 1 page, typed, double spaced, so be concise!]34. A time study analyst observes a worker over a period of time and calculates that the worker required 50.0 minutes per unit produced. The worker was rated by the analyst at a 120 percent performance rating, and a 10 percent allowance for personal time and fatigue applies. (1) What is the standard time for this task? (2) If a worker managed to produce 8 units in an eight-hour day, what would their day's pay be if the base rate is $11 per hour, and the premium payment system paid on a 100 percent basis?35. Time series forecasting question36. Waiting line analysis question