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1. What are two important aspects of Six Sigma?
a) -People involvement
b) -Facility location
c) -Technical tools
d) -Job design - ANSWER a. people involvement
c. technical tools
2. Which strategy is used by some emergency rooms to overcome customer
frustrations about long waiting times?
a) -See each patient in the order they arrived
b) -Screen patients and fast track minor ailments
c) -Screen and schedule follow up appts for serious injuries
d) -Screen and send the last 25 to another facility - ANSWER b. Screen
patients and fast-track those with minor ailments
3. Which two factors affect a service location decision?
a) -Warehouse storage
b) -Proximity to customers
c) -Closeness to manufacturing facilities
, d) -Quality of life issues - ANSWER b. Proximity to customers
d. Quality of life issues
4. Which is a key factor of a location analysis for a service company?
a) -Best operation level
b) -Relations with community
c) -Proximity to customers
d) -Effective capacity - ANSWER c. Proximity to customers
5. What helps an organization identify and plan the actions necessary to meet
current and future customer demands?
a) -Software development
b) -Production capacity
c) -Current economic conditions
d) -Capacity planning - ANSWER d. capacity planning
6. Which capacity planning measurement tells how much capacity a company is
using?
a) -Design Capacity
b) -Capacity Focus
c) -Capacity Utilization
d) -Effective Capacity - ANSWER c. Capacity utilization
7. Which two statements are true about effective capacity?
An effective capacity:
, a) -Maintains a minimum output rate under normal conditions
b) -is a temporary measure used to achieve design capacity
c) -is a permanent measure used to achieve design capacity
d) -is lower than design capacity - ANSWER a. An effective capacity
maintains a minimum output rate under normal conditions.
d. An effective capacity is lower than design capacity
8. When is capacity measurement at the best operating level?
a) -At maximum capacity
b) -at the minimum point of the cost curve
c) -When the total cost is minimized
d) -When the average unit cost is minimized - ANSWER d. When the
average unit cost is minimized
9. Which two capacity measurement concepts should a firm consider when
conducting a location analysis?
a) -Proximity to sources of supply
b) -site considerations
c) -building employee relations
d) -throughput time - ANSWER a. proximity to sources of supply
b. site considerations
10. What is a major factor in the decision to locate a business near its primary
market territory?
a) -Proximity to labor
b) -Proximity to customers
, c) -Proximity to parks
d) -Proximity to a community center - ANSWER proximity to customers
11. A manufacturing company decides to open a new distribution center location
in order to minimize distribution costs to warehouses or stores.
What tool should the manufacturing company use to determine where the new
distribution center should be located?
a) -By using the break-even analysis
b) -By using the load-distance model
c) -by using the center-of-gravity approach
d) -By using the transportation method - ANSWER b. by using the load-
distance model
12. Which two types of operations include repetitive processes?
a) -Continuous process
b) -Batch process
c) -Line process
d) -Project process - ANSWER a. continuous process
c. line process
13. A comprehensive automobile collision shop offers body and engine repair as
well as custom vehicle paint options.
Which two operational processes would suit this shop?
a) -Continuous Process
b) -Batch process
c) -Project proces