P370 Sample Questions Midterm

Set B

1. Which of the following statements is false? a) If possible, you should always use regression to estimate k and n. b) Organizations do not experience learning, only people do. c) If a process is undergoing learning at an 80% rate, the first 10 units processed will require more time in total than the next 10 units processed. d) A 70% learning rate is superior to a 90% learning rate. e) Learning typically follows a pattern of exponential decay. 2. Which of the following statements is true? a) In order to estimate k and n from raw data, we must have at least one doubled pair. b) Positive values for n indicate that we are experiencing unlearning (we are getting worse over time). c) Exponential decay means that the improvement from the 10th unit to the 11th unit is less than the improvement from the 20th unit to the 21st unit. d) All of the above statements are true. e) All of the above statements are false. 3. Acme Widgets had an order to process 250 widgets. The first unit required 200 minutes to assemble. Before starting, the company estimated the amount of time it would require to assemble all 250 widgets if they learned at an 85% rate. After assembling all 250 widgets, Acme realized they had learned at an 80% rate. How much time less than their estimate did Acme take? You should be able to compute the answer within plus or minus 2 hours. a) 296.1 hours b) 126.6 hours c) 140.3 hours d) 91.2 hours e) 155.8 hours

4. If a company is experiencing 83% learning and if the 5th unit requires 10 hours to process, how

much time would you estimate the 12th unit requires? a) 6.5 hours b) 2.6 hours c) 5.1 hours d) 7.9 hours e) None of the above is within 0.2 hours of the correct answer. 5. If the 13th unit processed requires 87.00 minutes and the 26th unit requires 64.00 minutes, how much time would you estimate the 50th unit requires? a) 35 minutes b) 48 minutes c) 18 minutes d) 55 minutes e) 40 minutes 6. A process is learning at a 92% rate. The first unit required 70 minutes. How many units must be processed before the company cuts the processing time to 28 minutes? a) between 2,000 and 2,100 units b) between 2,500 and 2,600 units c) between 1,700 and 1,800 units d) between 1,000 and 1,100 units e) none of the above is correct.

7. Below is a regression analysis of data from a process that is undergoing learning. The initial raw data was entered in minutes. Predict how many minutes the 95th unit will require.
SUMMARY OUTPUT Regression Statistics

Multiple R R Square Adjusted R Square Standard Error Observatio ns ANOVA

0.993377 0.986799 0.986359 0.022819 32

df Regression 1 Residual 30 Total 31 Coefficient s Intercept 3.92966 X Variable -0.22676 1

SS 1.167639 0.015621 1.183259 Standard Error 0.012854 0.004789

MS 1.167639 0.000521

F 2242.497

Significance F 9.37E-30

t Stat 305.7158 -47.355

P-value 5.69E-54 9.37E-30

Lower 95% Upper 95% 3.903409 -0.23654 3.955911 -0.21698

Lower 95.0% 3.903409 -0.23654

Upper 95.0% 3.955911 -0.21698

a) 16.7 b) 22.8 c) 18.1 d) 19.7 e) none of the above is accurate within 0.3 minutes. 8. Getting an autograph from an actor is which type of queuing system Line Structure? a) Single channel, single phase b) Single channel, multiphase c) Multichannel, single phase d) Multichannel, multiphase e) None of the above 9. Quick Lube operates a fast lube and oil change system. On a typical day, customers arrive at the rate of three per hour, and lube jobs are performed at an average rate of one every 15 minutes. The mechanics operate as a team on one car at a time. What is the average number of cars waiting for service? a) 3 b) 4 c) 2.75 d) 3.75 e) 2.25

101. An organization using the pure project organizational structure would be more likely, than organizations using other project management organizational structures, to receive complaints about: a) A lack of motivation on the part of team members. b) Long and involved lines of communication. c) The frustration of reporting to two bosses. d) The lack of a functional home. e) Limited authority of the project manager 11. As you move from a job shop to a continuous flow process, which of the following statements is true? a) the equipment becomes more specialized. b) capacity is more likely to be measured on the basis of inputs. c) volume and variety increase d) labor content is higher e) the process stages become more independent of each other 12. Spaceleys Sprockets has just developed a new product. George Jetson, the Head of Product Development, feels that the product is a winner, but he also feels it would be an even better product if waited six more months for further development before launching. Unfortunately, Spaceleys closest competitor, Cogsleys Cogs, has a similar product in the development pipeline. George feels that if he launches the product now to get a head start on Cogsley, he has a 50% chance of achieving a high level of sales, a 30% chance of a medium level of sales, and a 20% chance of a low level of sales. If he waits, he has a 30% chance of a high level of sales, and a 70% chance of a medium level of sales, with no chance of a low level of sales. High sales represents 100,000 units, medium sales represents 65,000 units, and low sales represents 10,000 units. If his objective is to maximize his expected number of units sold, what should George do and how many units would he be expected to sell? a) Delay six months, 75,500 units b) Delay six months, 71,500 units c) Launch now, 71,500 units d) Launch now, 62,000 units e) none of the above is correct.

Question 1 2 3 4 5 6 7 8 9 10 11 12

Answer B B D D B A C A E D A A