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DQ"s Question
DQ"s Question
1.You
are working as an independent contractor doing medical transcription.
As an outsourcing company providing transcription services, you are not
considered a “covered entity”. Therefore, are you exempt from the HIPAA
privacy rule? Why or why not? Engage in discussion with two other posts
of interest.
Visit this website for information on HIPAA and the medical transcriptionist. www.mtworld.com/tools_resources/understanding_hipaa.html2.Discussion 3: HIPAA – Business Associate You
are a MT for a physician’s office (covered entity) , therefore, you are
considered a business associate. Answer the following questions:
3. As a MT are you required to save digitally recorded voice files or
analog tapes or is it okay to delete the files or erase the tapes?2. Is the covered entity required to monitor the actions of the business associate?3. Is the covered entity liable for the actions of the business associate?4. If the covered entity finds out about a HIPAA violation by the business associate what action must be taken?
Visit the following websites for information on HIPAA and the Business Associatehttp://www.hhs.gov/ocr/privacy/hipaa/faq/right_to_access_medical_records/369.htmlhttp://www.hhs.gov/ocr/privacy/hipaa/faq/business_associates/236.html4. : HIPAA – Medical Transcription Errors Medical
transcription is a very important process when it comes to the business
of saving lives. Those are the seemingly indecipherable notes on your
patient sheet that your doctor will look over to help decide which
medicines and treatments you will need to become a functioning human
being again. Unfortunately, a lot of these notes are written in haste
and words can be misspelled, forgotten, or switched around.
You might be shocked to hear that doctors goof up on those notes,
especially when receiving wrong doses or entirely wrong medicines can do
much more harm than good. While medical transcription errors are best
avoided, not all of them spell doom for a patient. Visit the website
below for some transcription errors and answer the following questions
and respond to two other posts of interest.
1. Do you think these types of errors, critical, major or minor? Why? Give examples. 2. How do you think these errors could have been avoided?3. Do you think these errors could have been attributed to the use of text expanders or macros?4.
Do you think it is the responsibility of the transcriptionist, quality
assurance or the physician to catch these types of errors?
http://www.medical-transcription1.com/NewsArticleDetail16.htm5. You are a medical transcriptionist for a psychiatric office. You have
just enrolled your 2-year-old child in an at-home daycare. You are
filing transcribed reports when you run across the name of your new
child caregiver. You are immediately concerned that you have left your
child with a person who may have a serious mental illness. You think it
is okay to look at the file for your own information, as long as you do
not disclose the information to anybody else, as you do have access to
all of the charts. Is this correct? Why or why not?6 Millions of people work with computers every day. There is no single
“correct” posture or arrangement of components that will fit everyone.
However, there are basic design goals. Go to the following websiteAt work while your doctor is dictating a patient's chart note he
includes insulting information about a nurse of his (someone you know,
of course). He tells about her inappropriate care of his patient and the
disciplinary actions to be taken. What to do? Transcribe as dictated in
the patient's chart note? Not transcribe it? Transcribe it in a
separate document? Take the information to your supervisor?
7 At work while your doctor is dictating a patient's chart note he
includes insulting information about a nurse of his (someone you know,
of course). He tells about her inappropriate care of his patient and the
disciplinary actions to be taken. What to do? Transcribe as dictated in
the patient's chart note? Not transcribe it? Transcribe it in a
separate document? Take the information to your supervisor?
Give a brief paragraph of what you would do in this situation and why. 8. You had an appointment with your family physician. This physician just
happens to dictate reports to the medical transcription company you work
for, and you are one of the MTs who work on that site. You go into the
system at work and open up the report to see who transcribed your report
and to read the report. You know that, as a patient, you have the right
to have access to your medical records. Is this a violation of HIPAA?
Why or why not.9 As a “seasoned” transcriptionist, I too, have had instances where I
was unable to understand the physician or to successfully research a
term the physician was using. During my years of transcription I have
often heard the quote: “When in doubt, leave it out.”
This quote obviously is not referring to leaving a blank and flagging
the document to be viewed by quality assurance or the physician
him/herself, but rather to make the sentence complete by disregarding
the information that could not be obtained as long as the information is
not critical to the care of the patient. What are your thoughts
regarding this quote?

BAM 421 UNIT 1 Exam
BAM 421 UNIT 1 Exam
1. Reasons to study Operations Management include learning about _______________.
a. a costly part of the enterprise
b. what operations managers do
c. how goods and services are produced
d. how people organize themselves for productive enterprise
e. All of the above.
2. An operations manager is not likely to be involved in ______________.
a. the quality of goods and services to satisfy customers’ wants and needs
b. the design of goods and services to satisfy customers’ wants and needs
c. the identification of customers’ wants and needs
d. maintenance schedules
e. work scheduling to meet the due dates promised to customers
3. Which of the following are part of the Ten Critical Decisions of Operations Management?
I. design of goods and services
II. managing quality
III. layout strategy
IV. marketing
V. pricing of goods and services
a. I,II,IV
b. I,II,V
c. II,III,V
d. I,II,III
e. All of the above.
4. Henry Ford is noted for his contributions to _______________.
a. time and motion studies
b. material requirements planning
c. assembly line operations
d. statistical quality control
e. scientific management
5. Which of the following is the best example of a pure service?
a. electric co-op
b. counseling
c. oil change
d. heart transplant
e. All of the above.
Unit 1 Examination
BAM 421 Operations Management
Which is not true regarding differences between goods and services?
a. Goods tend to have higher customer interaction than services.
b. Services tend to be more knowledge-based than goods.
c. Services are generally produced and consumed simultaneously; tangible goods are not.
d. Services tend to have a more inconsistent product definition than goods.
e. None of the above are true.
Current trends in operations management include all of the following EXCEPT ______________.
a. empowered employees
b. mass customization
c. rapid product development
d. just-in-time performance
e. All of the above are current trends.
The Dulac Box plant works two 8-hour shifts each day. In the past, 500 cypress packing boxes
were produced by the end of each day. The use of new technology has enabled them to increase
productivity by 30%. Productivity is now approximately ______________.
a. 32.5 boxes/hr
b. 40.6 boxes/hr
c. 62.5 boxes/hr
d. 81.25 boxes/hr
e. 300 boxes/hr
Which of the following are among the ethical and social challenges facing operations managers?
a. developing low-cost products
b. providing an efficient workplace
c. maintaining a sustainable environment
d. honoring financial commitments
e. All of the above.
10. Cost cutting in international operations can take place because of ________________.
a. lower indirect costs
b. lower wage scales
c. less stringent regulations
d. lower taxes and tariffs
e. All of the above.
Unit 1 Examination
BAM 421 Operations Management
The ability of an organization to produce goods or services that have some uniqueness in their
characteristics is _______________.
a. time-based competition
b. mass production
c. competing on productivity
d. competing on differentiation
e. competing on flexibility
Franz Colruyt has achieved low-cost leadership through ________________.
a. effective use of voice mail
b. exclusive use of the Euro
c. plastic, not paper, shopping bags
d. background music that subtly encourages shoppers to buy more
e. converting factories, garages and theaters into retail outlets
A firm producing a good is more likely to have which set of the following characteristics
compared to a firm providing a service?
a. many objective quality standards, tangible products and locate near customers
b. many subjective quality standards, tangible products and locate away from customers
c. many objective quality standards, intangible products and locate away from customers
d. many subjective quality standards, intangible products and locate away from customers
e. many objective quality standards, tangible products and locate away from customers
Which of these companies is most apt to have quality standards that are relatively subjective?
a. Harvard University
b. Chrysler
c. Whirlpool
d. Dell Computer
e. Sanyo Electronics
Which of these organizations is likely to have the most important inventory decisions?
a. a lobbying agency
b. a management consulting firm
c. a law firm
d. a marketing research firm
e. an aluminum manufacturer
Unit 1 Examination
BAM 421 Operations Management
Value-chain analysis is used to identify activities that represent, or can develop into, the core
competencies of a business. Who introduced this concept?
a. Smith
b. Toyota
c. Ford
d. Porter
e. None of the above.
Standardization is an appropriate strategy in which stage of the product life cycle?
a. retirement
b. introduction
c. maturity
d. decline
e. growth
Caterpillar and Texas Instruments are two firms that have benefited from the use of
_________________.
a. the transnational strategy option
b. the global strategy option
c. the maquiladora system in Europe
d. the multinational corporation strategy
e. the multidomestic strategy option
A project organization ________________.
a. is effective for companies with multiple large projects
b. is appropriate only in construction firms
c. often fails when the project cuts across organizational lines
d. is formed to ensure that programs (projects) get proper management and attention
e. a and d are both true
A simple CPM network has five activities—A, B, C, D and E. A is an immediate predecessor of
C and of D. B is also an immediate predecessor of C and of D. C and D are both immediate
predecessors of E. Which of the following is true?
a. There are twenty-five paths through this network.
b. There are two paths in this network.
c. There are five paths in this network.
d. There are four paths in this network.
e. None of these statements is true.
Unit 1 Examination
BAM 421 Operations Management
An activity on a PERT network has these time estimates: optimistic = 1, most likely = 2 and
pessimistic = 5. Its expected time is _______________.
a. 2.00
b. 2.33
c. 2.67
d. 8.00
e. None of the above.
The two general approaches to forecasting are _______________ and _______________.
a. mathematical; statistical
b. judgmental; associative
c. judgmental; qualitative
d. qualitative; quantitative
e. historical; associative
The forecasting model that pools the opinions of a group of experts or managers is known as
the _______________ model.
a. multiple regression
b. consumer market survey
c. jury of executive opinion
d. management coefficients
e. expert judgment
Which of the following is not a type of qualitative forecasting?
a. sales force composites
b. moving average
c. consumer surveys
d. the Delphi method
e. executive opinions
A time series trend equation is 25.3 + 2.1 X. What is your forecast for period 7?
a. 23.2
b. 25.3
c. 27.4
d. 40.0
e. cannot be determined

BAM 421 UNIT 2 exam
BAM 421 UNIT 2 exam
The analysis tool that helps determine what products to develop, and by what strategy, by listing
products in descending order of their individual dollar contribution to the firm is
_______________ analysis.
a. decision tree
b. Pareto
c. breakeven
d. product-by-value
e. product life cycle
In which stage of the product life cycle should product strategy focus on improved cost control?
a. introduction
b. growth
c. maturity
d. saturation
e. inflation
_______________ is used to rank a company’s products to determine which products represent
the best use of the firm’s resources, or, perhaps, to determine which products are to be
eliminated.
a. Value analysis
b. Value engineering
c. Financial analysis
d. Product-by-value analysis
e. Product cost justification
Which of the following represents an opportunity for generating a new product?
a. understanding the customer
b. demographic change, such as decreasing family size
c. changes in professional standards
d. economic change, such as rising household incomes
e. All of the above are such opportunities.
What percentage of sales from new products is indicative of industry leaders?
a. below 25%
b. 25 to 35%
c. 35 to 45%
d. 50%
e. above 60%
Unit 2 Examination
BAM 421 Operations Management
92
Which of the following is not one of the major categories of costs associated with quality?
a. prevention costs
b. appraisal costs
c. internal failures
d. external failures
e. None of the above; they are all major categories of costs associated with quality.
All of the following costs are likely to decrease as a result of better quality EXCEPT
_______________ costs.
a. customer dissatisfaction
b. inspection
c. scrap
d. warranty and service
e. maintenance
Quality can improve profitability by reducing costs. Which of the following is not an aspect of
reduced costs by quality improvements?
a. flexible pricing
b. increased productivity
c. lower rework and scrap costs
d. lower warranty costs
e. All of the above are aspects of reduced costs by quality improvements.
Which of the four major categories of quality costs is particularly hard to quantify?
a. prevention costs
b. appraisal costs
c. internal failure costs
d. external failure costs
e. None of the above are hard to quantify.
10. Which of the following statements is NOT true?
a. Self-promotion is not a substitute for quality products.
b. Inferior products harm a firm’s profitability and a nation’s balance of payments.
c. Product liability transfers from the manufacturer to the retailer once the retailer accepts
delivery of the product.
d. Quality—be it good or bad—will show up in perceptions about a firm’s new products,
employment practices and supplier relations.
e. Legislation, such as the Consumer Product Safety Act, sets and enforces product
standards by banning products that do not reach those standards.
Unit 2 Examination
BAM 421 Operations Management
93
11. Frito-Lay is to _____________ focus as Harley Davidson is to _____________ focus.
a. pocess; repetitive
b. product; repetitive
c. repetitive; product
d. process; product
e. product; mass customization
12. One of the similarities between repetitive focus and mass customization is _____________.
a. the wide variety of outputs
b. module inputs
c. the process layout
d. the standard cost
e. the high volume of outputs
13. Flexible equipment with rapid changeovers is most closely associated with which approach?
a. product
b. process
c. mass customization
d. repetitive
e. a and c
14. Swift movement through the facility is typical of goods in which approach?
a. product
b. process
c. mass customization
d. repetitive
e. a and c
15. High fixed costs and low variable costs are typical of which approach?
a. product
b. process
c. mass customization
d. repetitive
e. a and c
Unit 2 Examination
BAM 421 Operations Management
94
16. Instead of comparing the salaries of Detroit autoworkers to foreign autoworkers to determine if
Union labor prices are the cause of Detroit’s financial woes, which of the following should be
used?
labor content per vehicle
labor productivity
total production
a or b
None of the above; salary is the best comparison.
The reason fast food restaurants often are found in close proximity to each other is
______________.
a. they enjoy competition
b. location clustering near high traffic flows
c. low cost
d. availability of skilled labor
e. All of the above.
Currency risk is based on what assumption?
a. Firms that do not continuously innovate will lose market share.
b. Values of foreign currencies continually rise and fall in most countries.
c. Changing product lines by reacting to every current trend may alienate the customer
base.
d. The value of one dollar today is greater than the value of one dollar to be received one
year from now.
e. The U.S. stock market fluctuates daily.
Governmental attitudes toward issues such as private property, intellectual property, zoning,
pollution and employment stability may change over time. The term associated with this
phenomenon is _____________ risk.
a. bureaucratic
b. political
c. legislative
d. judicial
e. democratic
A location decision for an appliance manufacturer would tend to have a(n) _____________.
a. cost focus
b. focus on finding very highly skilled technicians
c. revenue focus
d. environmental focus
e. education focus
Unit 2 Examination
BAM 421 Operations Management
95
Slotting fees _____________.
a. are charged by retailers to stock a product
b. can amount to as much as $25,000
c. are not a part of Wal-Mart’s business practices
d. can reduce the ability of small businesses to introduce new products
e. All of the above.
Which of the following is not a retail layout practice?
a. high-draw items along periphery
b. distribute power items throughout store
c. end-aisle locations are used to maximize product exposure
d. high-margin and impulse items in prominent locations
e. All of the above are retail layout practices.
What is the primary reason why retailers tend to locate high-draw items around the periphery of
the store?
a. More shelf space for those popular items is available around the periphery.
b. There will be less congestion of customers than there would be in the middle.
c. This arrangement will help to maximize customer exposure to other items in the store.
d. It is easier to put large advertisement signs on the outside walls right next to the items.
e. This arrangement allows customers to travel through the store as quickly as possible.
The fixed-position layout would be most appropriate in which of the following settings?
a. a fast-food restaurant
b. a doctor’s office
c. a casual dining restaurant
d. a cruise ship assembly facility
e. None of the above.
For which of the following operations would a fixed-position layout be most appropriate?
a. assembling automobiles
b. producing TV sets
c. constructing a highway tunnel or bridge
d. refining of crude oil
e. running an insurance agency

UNIT 3 EXAM BAM 421
UNIT 3 EXAM BAM 421
The behavioral approach to job design that involves giving the worker a larger portion of the total
task is job _______________.
a. enlargement
b. enrichment
c. enhancement
d. rotation
e. involvement
When a worker has a say in the work methods that he/she wishes to utilize, his/her job is
characterized by _______________.
a. skill variety
b. job identity
c. job significance
d. feedback
e. autonomy
Which of the following terms implies an increase in responsibility and control in the vertical
direction?
a. job rotation
b. job enrichment
c. job re-design
d. job enlargement
e. job satisfaction
Which of the following statements describes job rotation?
a. The job contains a larger number of similar tasks.
b. The job includes some planning and control necessary for job accomplishment.
c. The operator works on different shifts on a regular basis.
d. The operator’s schedule is flexible.
e. The operator is allowed to move, for example, from one type of CNC machine to the
other.
The difference between job enrichment and job enlargement is that ______________.
a. enlarged jobs involve vertical expansion while enriched jobs involve horizontal expansion
b. enriched jobs enable an employee to do a number of boring jobs instead of just one
c. job enlargement is more psychologically satisfying than job enrichment
d. job enrichment is suitable for all employees, whereas job enlargement is not
e. enriched jobs involve vertical expansion while enlarged jobs involve horizontal expansion
Unit 3 Examination
BAM 421 Operations Management
136
Suppose that the allowance factor for a job is 0.10 and the normal time is 5 hours. What is the
standard time?
a. 4.5 hours
b. 4.9 hours
c. 5.1 hours
d. 5.6 hours
e. 50.0 hours
A job characterized by _______________ allows a worker to use his/her dexterity, physical
strength and skills to do his/her work.
a. feedback
b. skill variety
c. job identity
d. job significance
e. autonomy
Outsourcing ______________.
a. transfers traditional internal activities to outside vendors
b. utilizes the efficiency which comes with specialization
c. lets the outsourcing firm focus on its key success factors
d. None of the above are true of outsourcing.
e. All of the above are true of outsourcing.
The transfer of some of what are traditional internal activities and resources of a firm to outside
vendors is ______________.
a. a standard use of the make or buy decision
b. not allowed by the ethics code of the Supply Management Institute
c. offshoring
d. outsourcing
e. keiretsu
10. The Institute for Supply Management ________________.
a. establishes laws and regulations for supply management
b. is an agency of the United Nations charged with promoting ethical conduct globally
c. publishes the principles and standards for ethical supply management conduct
d. prohibits backward integration into developing economies
e. All of the above are true.
Unit 3 Examination
BAM 421 Operations Management
137
In supply-chain management, ethical issues ______________.
a. are particularly important because of the enormous opportunities for abuse
b. may be guided by company rules and codes of conduct
c. become more complex the more global the supply chain
d. may be guided by the principles and standards of the Institute for Supply Management
e. All of the above are true.
Which one of the following is not a supply-chain strategy?
a. negotiation with many suppliers
b. vertical integration
c. keiretsu
d. short-term relationships with few suppliers
e. virtual companies
A disadvantage of the “few suppliers” strategy is _______________.
a. the risk of not being ready for technological change
b. the lack of cost savings for customers and suppliers
c. possible violations of the Sherman Antitrust Act
d. the high cost of changing partners
e. All of the above are disadvantages of the “few suppliers” strategy.
In the basic EOQ model, if the cost of placing an order doubles, and all other values remain
constant, the EOQ will _______________.
a. increase by about 41%
b. increase by 100%
c. increase by 200%
d. increase, but more data is needed to say by how much
e. either increase or decrease
In the basic EOQ model, if D=6000 per year, S=$100 andH=$5 per unit per month, then the
economic order quantity is approximately _______________.
a. 24
b. 100
c. 141
d. 490
e. 600
Unit 3 Examination
BAM 421 Operations Management
138
16. The two most basic inventory questions answered by the typical inventory model are
_______________.
a. timing and cost of orders
b. quantity and cost of orders
c. timing and quantity of orders
d. order quantity and service level
e. ordering cost and carrying cost
17. Among the advantages of cycle counting is that it ______________.
a. makes the annual physical inventory more acceptable to management
b. does not require the detailed records necessary when annual physical inventory is used
c. does not require highly trained people
d. allows more rapid identification of errors and consequent remedial action than is
possible with annual physical inventory
e. does not need to be performed for less expensive items
18. Which of the following is an element of inventory holding costs?
a. housing costs
b. material handling costs
c. investment costs
d. pilferage, scrap and obsolescence
e. All of the above are elements of inventory holding cost.
19. Most inventory models attempt to minimize _______________.
a. the likelihood of a stockout
b. the number of items ordered
c. total inventory based costs
d. the number of orders placed
e. the safety stock
20. Top executives tend to focus their attention on which type of forecasts?
a. short-range
b. medium-range
c. long-range
d. weather
e. the forecast for the next day’s absentee levels
Unit 3 Examination
BAM 421 Operations Management
139
Which of the following would most likely fall under the scope of only an operations manager?
a. research and development
b. new product plans
c. capital investments
d. facility location and expansion
e. setting inventory levels
Disaggregation _______________.
a. breaks the aggregate plan into greater detail
b. transforms the master production schedule into an aggregate plan
c. calculates the optimal price points for yield management
d. converts product schedules and labor assignments to a facility-wide plan
e. is an assumption required for the use of the transportation model in aggregate planning
Aggregate planning would entail which of the following production aspects at BMW for a 12
month period?
a. number of cars with a hi-fi stereo system to produce
b. number of two-door vs. four-door cars to produce
c. number of green cars to produce
d. total number of cars to produce
e. b, c, and d are correct.
What directly results from disaggregation of an aggregate plan?
a. a master production schedule
b. priority scheduling
c. a transportation matrix
d. a capacity-demand matrix
e. detailed work schedules
Dependence on an external source of supply is found in which of the following aggregate
planning strategies?
a. varying production rates through overtime or idle time
b. subcontracting
c. using part-time workers
d. back-ordering during high demand periods
e. hiring and laying off

BAM 421 unit 4 EXAM
BAM 421 unit 4 EXAM
The aggregate plan gets input or feedback from which of the following areas?
a. engineering
b. finance, marketing and human resources
c. the master production schedule
d. procurement, production and general management
e. All of the above.
Which portion of the master production schedule is normally fixed, frozen or firm?
a. the entire schedule
b. only the aggregate schedule
c. only the middle of the schedule
d. only the near-term portion
e. only the far-term portion
In continuous (stock-to-forecast) operations, the master production schedule is usually
expressed in terms of _______________.
a. end items
b. modules
c. kits
d. customer orders
e. warehouse orders
In job shop (make-to-order) operations, the master production schedule is usually expressed in
_______________.
a. end items
b. modules
c. kits
d. customer orders
e. warehouse orders
A document calls for the production of 50 small garden tractors in week 1, 50 small garden
tractors and 100 riding mowers in week 2, 100 riding mowers and 200 garden utility carts in
week 3 and 100 riding mowers in week 4. This document is most likely a(n) _______________.
a. net requirements document
b. resource requirements profile
c. aggregate plan
d. master production schedule
e. Wagner-Whitin finite capacity document
Unit 4 Examination
BAM 421 Operations Management
183
The _______________ is the input to material requirements planning which lists the assemblies,
subassemblies, parts and raw materials needed to produce one unit of finished product.
a. bill of material
b. master production schedule
c. inventory records
d. assembly time chart
e. net requirements chart
A bill of material lists the _______________.
a. times needed to perform all phases of production
b. production schedules for all products
c. components, ingredients and materials required to produce an item
d. operations required to produce an item
e. components, ingredients, materials and assembly operations required to produce an
item
Forward scheduling _______________.
a. begins with a delivery date, then offsets each operation one at a time, in reverse order
b. is well suited where the supplier is usually able to meet precise delivery dates
c. tends to minimize work-in-process inventory
d. assumes that procurement of material and operations start as soon as requirements are
known
e. produces a schedule only if it meets the due date
Scheduling is rather straightforward in product-focused facilities because _______________.
a. kanban automates the scheduling of the assembly line
b. demand is reasonably stable and capacities, set-up times and run times are generally
known
c. assembly line balancing assures the highest possible production efficiency
d. finite capacity scheduling has made MRP much more realistic
e. All of the above are true.
10. Which file contains important information regarding an item’s flow through the shop?
a. item master file
b. work-center master file
c. control files
d. routing file
e. None of the above provides information regarding an item’s flow through the shop.
Unit 4 Examination
BAM 421 Operations Management
184
Which of these is not part of the planning files of a production planning and control system?
a. a progress file
b. a work-center master file
c. an item master file
d. a routing file
e. All of the above are all part of the planning files.
Which of the following files tracks work order progress?
a. work-center master files
b. routing files
c. item master files
d. control files
e. None of the above tracks work order progress.
The production database containing information about each of the components that a firm
produces or purchases is the _______________.
a. routing file
b. work-center master file
c. control file
d. item master file
e. None of the above.
Which of the following is not one of the Seven Wastes?
a. overproduction
b. transportation
c. assignment
d. defective product
e. motion
The 5Ss ________________.
a. have the “flavor” of a housekeeping list
b. are a checklist for lean operations
c. have become a list of seven items in American practice
d. can be used to assist with necessary changes in organizational culture
e. All of these are true.
Unit 4 Examination
BAM 421 Operations Management
185
The list of 5Ss, although it looks like a housekeeping directive, supports lean production by
________________.
a. identifying non-value items and removing them in the “sort/segregate” item
b. reducing inventory in the “standardize” item
c. increasing variability through standardized procedures in the “standardize” item
d. eliminating wasted motion through ergonomic studies in the “support” item
e. building good safety practices in the “shine/sweep” item
Concerning relationships with suppliers, which of the following combinations is critical to the
success of JIT?
a. close relationships with trust
b. close relationships with skepticism
c. distant relationships with trust
d. distant relationships with skepticism
e. None of the above.
Which one of the following is not a benefit of the implementation of JIT?
a. cost reduction
b. variability increase
c. rapid throughput
d. quality improvement
e. rework reduction
If the goals of JIT partnerships are met, which of the following is a result?
a. For incoming goods, receiving activity and inspection are outsourced.
b. In-transit inventory falls as suppliers are located closer to facilities.
c. The number of suppliers increases.
d. In-plant inventory replaces in-transit inventory.
e. All of the above are consequences of meeting the JIT partnership goals.
Ten high-technology batteries are tested for 200 hours each. One failed at 20 hours; all others
completed the test. FR(%) is _______________ and MTBF is ________________.
a. 10%; 1/1820
b. 90%; 1/1820
c. 10%; 1820 hours
d. 10%; 1980 hours
e. cannot calculate from information provided
Unit 4 Examination
BAM 421 Operations Management
186
Ten high-technology batteries are tested for 200 hours each. One failed at 50 hours; all others
completed the test. FR(%) is _____________ and FR(N) is _______________.
a. 10%; 1/1850
b. 10%; 1/2000
c. 25%; 1850 hours
d. 90%; 1/2000
e. Indeterminate; no standard deviation is given.
Ten high-technology batteries are tested for 200 hours each. One failed at 20 hours, another
failed at 140 hours and all others completed the test. FR(%) is _______________ and MTBF is
________________.
a. 20%; 880 hours
b. 10%; 1980 hours
c. 20%; 1760 hours
d. 80%; 920 hours
e. cannot calculate from information provided
MTBF measures the average _________________.
a. calendar time between failures
b. operating time between failures
c. number of failures per unit time
d. number of operations between failures
e. downtime per breakdown
A system is composed of four parts, J, K, L and M. All four must function for the system to
function. The four component reliabilities are .99, .98, .992 and .998. The designers are
considering putting a .80 reliable backup at K. This backup will change the system reliability
from ______________ to ________________.
a. 0.9762 to 0.9605
b. 0.9605 to 0.9762
c. 0.9605 to some smaller value
d. cannot be determined
e. None of the above.
Suppose that a process is comprised of multiple components, each having a 75% success
rate. What is the change in reliability going from a series layout to a parallel layout if the
process has 5 components?
a. 0%
b. 100%
c. 76.2%
d. -76.2 %
e. unable to determine
Unit 4 Examination
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