are157-midterm-key-a

are157-midterm-key-a - ARE 157 ANALYSIS FOR PRODUCTION...

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ARE 157 ANALYSIS FOR PRODUCTION MANAGEMENT MIDTERM Name: ------------- ID#: SPRING 2010
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Part A-- 10 points each. 1. Within the field ofoperations management, what contribution was Henry Towne noted for? a. Development ofearly statistical control tests. b. First to design machinery with interchangeable parts. @ Argued that improvements in management are equally as important as- improvements in technology. d. Argued that employee psychology should be considered when planning production; humans should not be treated like machines. e. Led protests against mechanization ofBritish textile industry. 2. When would it be necessary to use a causal model in forecasting demand for a good? a. When we plan to forecast more than one period ahead. b. When our sales are believed to be highly seasonal. (§) When we want to determine the optimal price we should charge for our good. d. When the data appears to have a strong trend. e. All ofthe above. 3. Beverly manages a production facility that packages sugar. She recently performed a capability analysis test, and found the packaging machine to be operating satisfactorily. However, she is concerned that over time, the mean or standard deviation ofthe machine's output distribution may change. What should she do to monitor this process? .. a. Monitor the output using a mean control chart. b. Monitor the output using a range control chart. c. Periodically repeat the capability analysis test. @ Both a and b. e. a, b and c. 4. Which ofthe statements below would J. Edwards Deming be LEAST likely to agree with? @ To ensure that no defective output reaches our customers, we should inspect each unit before sale. b. It is preferable to fall behind in our rate ofproduction, than to produce shoddy output. c. Managers should provide extensive worker training, even ifit raises costs per employee. Managers should hire skilled designers to develop their products, even ifit increases initial start-up costs. Deming would likely agree with all ofthe above statements. 5. Sureway Delivery Service is considering self-insuring its fleet oftrucks against collision losses. What advice would you give them? a. The expected cost ofself-insuring is typically lower than the expected cost ofbuying insurance from another firm. b. Self-insuring works best ifthe number ofvehicles in the fleet is large. @ Both a and b. d. None ofthe above.
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6. In class, we discussed a number ofexamples ofmission statements. What particular criticism did we make regarding Enron's mission statement? a. It was too narrow and overly specific. b. was too broad and vague. c. did not offer an external purpose for the firm's txistence. © The firm failed to follow its own mission statement. 7. capacity planning, which firm below would likely use the longest planning horizon? @A steel mill . b. A law office c. A clothing boutique d. All the firms above would typically use a 1O-year planning horizon.
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are157-midterm-key-a - ARE 157 ANALYSIS FOR PRODUCTION...

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