Burns Texas Tech Exam 1 – Flashcards
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Which of the following key activities is NOT performed by operations managers? a. Purchasing b. Cost accounting c. Service encounter design d. Forecasting
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Cost accounting
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Which one of the following statements about the scope and direction of operations management is FALSE? answer with letter a. Today, sustainability is placing increased pressure on all goods-producing and service-providing organizations worldwide. b. Goods-producing industries account for over 80 percent of the jobs in the U.S. c. Service-providing processes are the dominant type of processes in the U.S. economy. d. Business analytics includes predictive and prescriptive data analytics.
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B
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A support process could be any of the following EXCEPT _____. a. managing inventory b. installing a product c. purchasing materials and supplies d. assembling automobiles
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assembling automobiles
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Support processes typically include all of the following EXCEPT _____. a. inventory management b. research and development c. manufacturing and assembly d. day care on-site services
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manufacturing and assembly
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Which of the following is lowest in goods content and highest in service content? answer with letter a. Filling a medical prescription b. Attending a theater production c. Getting an oil change for your car d. Dining at a fast-food restaurant
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b
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Identify the statement about goods and services that is NOT true? answer with letter a. Some very significant differences exist between goods and services that create different demands on the operations function. b. A service is any primary or complementary activity that does not directly produce a physical product. c. Designing and managing operations in a goods-producing firm is quite similar to that in a service-providing organization. d. Services that do not involve significant interaction with customers can be managed much the same as goods in a factory.
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c
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Which one of the following statements is TRUE regarding a customer benefit package (CBP)? answer with letter a. The size of the circles in the CBP framework can signify the relative importance of each good and service. b. When defining a CBP, the features determined by management accurately describe customers' wants and needs. c. A CBP consists of a primary good and a primary service coupled together. d. A variant is a CBP feature that strictly adheres to the standard CBP.
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a
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A(n) _____ is a sequence of activities that is intended to create a certain result. a. inventory b. process c. service d. variant
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process
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Which of the following statements about goods and services is FALSE? answer with letter a. Services cannot be stored as physical inventory for future sale. b. Service encounters can be between a customer and a service provider. c. Normally, patents do not protect services. d. Demand for physical goods is more difficult to predict than demand for services.
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d
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A customer benefit package (CBP) includes _____. answer with letter a. both core offerings as well as peripheral offerings b. only core offerings c. either core or peripheral offerings but not both d. only peripheral offerings
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a
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Which of the following statements is TRUE of social sustainability? answer with letter a. It includes customization and financial management. b. It includes energy optimization. c. It includes sustainable product design. d. It includes ethics and governance.
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d
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Which of the following has the highest goods content? a. Automobile loans b. Buying furniture c. Computer repair service d. Symphony performance
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Buying furniture
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The three issues that are at the core of operations management include all of the following EXCEPT _____. a. tangibility b. quality c. cost d. efficiency
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tangibility
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Which of the following statements is TRUE of service facilities? answer with letter a. They are in close proximity to customers. b. They take advantage of patents. c. They are located close to raw materials, suppliers, and labor. d. They rely on physical inventory.
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a
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Which of the following statements about goods and services is FALSE? answer with letter a. Services can be stored as physical inventory for future sale. b. Service encounters are interactions between customers and service providers. c. Goods are tangible, while services are intangible. d. The demand for service is more difficult to predict than the demand for goods.
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a
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In relating operations management and the customer benefit package (CBP), which is the correct timing sequence? answer with letter a. Customer needs and expectations lead to customer benefit package, which leads to operating system processes. b. Customer needs and expectations lead to operating system processes, which lead to customer benefit package. c. Customer benefit package leads to customer needs and expectations, which lead to operating system processes. d. Operating system processes lead to customer needs and expectations, which lead to customer benefit package.
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a
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Which of the following jobs requires the most service management skills and knowledge? a. Airline Flight attendant b. Usher at sports stadium c. Restaurant cook d. Airplane mechanic
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Airline Flight attendant
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Which of the following statements is TRUE of goods and services? answer with letter a. Demand for goods is more difficult to predict than demand for services. b. Normally, patents do not protect services. c. An automobile is a nondurable good. d. A variant is always a durable good with new features.
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b
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Service management skills include all of the following EXCEPT _____. answer with letter a. accounting and finance b. knowledge and technical expertise about operations c. marketing and cross-selling skills d. human interaction skills
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a
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Identify a TRUE statement about sustainability. answer with letter a. Sustainability includes the idea of preserving resources for future generations. b. Sustainability includes the global perspective. c. The goal of economic sustainability is to reduce time-based competition. d. Sustainability is always a variant in the customer benefit package framework.
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a
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Identify a FALSE statement about goods and services. answer with letter a. Service encounters can be between a customer and a service provider. b. The demand for services is time-dependent, especially over the short term. c. There is no way to recapture the lost revenue from a hotel room. d. A moment of truth is a feature a customer recognizes, pays for, or uses.
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d
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Which of the following statements about goods and services is TRUE? answer with letter a. A good example of a nondurable good is furniture. b. A service encounter can consist of one or more moments of truth. c. A durable good is a product that typically lasts for less than three years. d. The demand for services is independent of time.
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b
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A network of processes that creates value for customers is known as a _____. a. value chain b. process network c. customer value d. value network
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value chain
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Which of the following is NOT a current challenge in operations management (OM)? a. Quality b. Globalization c. Technology d. Mass production
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Mass production
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Which of the following statements is NOT true of goods and services? answer with letter a. Services cannot be stored as inventory for future sale. b. A shoe is a durable good that provides a service. c. Service encounters can be between a customer and a service provider. d. Normally, patents do not protect services.
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b
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________ include environmental measures such as energy consumption and recycling and other resource conservation activities. a. Operation efficiency measures b. Financial measures c. Innovation and learning measures d. Sustainability measures
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Sustainability measures
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A paint manufacturing company has three factories located in France, Germany, and Spain. The productivity data of the factories are as follows: Factory Location Amount of Paint Produced (US Gallons) France 4,800,000,000 Germany 5,400,000,000 Spain 4,000,000,000 Total Input Cost (USD) France $5,250,000 Germany $5,250,000 Spain $3,500,000 Based on the productivity analysis of all the factories, the productivity of the factory in: answer with letter a. Spain is higher than that of the factory in France. b. Spain is lower than that of the factory in Germany. c. France is higher than that of the factory in Spain. d. Germany is lower than that of the factory in France.
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a
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Key measures of innovation and learning include ________. answer with letter a. the variance around the average time b. percentage of new products developed c. supply-chain performance d. processing time
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b
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________ is the act of quantifying the performance of organizational units, goods and services, processes, people, and other business activities. a. Fulfillment b. Measurement c. Litigating d. Forecasting
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Measurement
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Measures of ________ focus on an organization's people and infrastructure. a. customer and market b. innovation and learning c. service quality d. goods and service design flexibility
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innovation and learning
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According to research, which of the following is a key dimension that customers use to assess service quality? a. Flexibility b. Empathy c. Operational efficiency d. Queue time
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Empathy
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Dextron, a privately owned computer technology company, provides a wide range of customized laptops to suit the needs of students, corporate professionals, and small business owners. In this case, Dextron's ability to provide a wide range of customized laptops to suit its customers' needs best describes ________. a. design flexibility b. manufacturing yield c. volume flexibility d. budget variance
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design flexibility
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The innovation and learning perspective in the balanced scorecard model includes measures such as ________ answer with letter a. number of cooperative customer-company design initiatives and percent of sale from new services. b. return on investment, economic value added, and shareholder value. c. service-quality levels, design and demand flexibility, and asset utilization. d. training hours per employee, hiring process effectiveness, and revenue per employee.
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d
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In the context of the triple bottom line, ________ measures include corporate ethics and governance. a. political sustainability b. social sustainability c. economic sustainability d. environmental sustainability
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social sustainability
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In the context of the triple bottom line (TBL), which of the following measures includes the number of ethical violations? a. Responsiveness b. Customer retention rate c. Social sustainability d. Service quality
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Social sustainability
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________ is the willingness to help customers and provide prompt recovery to service upsets. a. Reliability b. Responsiveness c. Assurance d. Empathy
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Responsiveness
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In the context of the scope of business and operations performance measurement, which of the following measures is an example of an innovation and learning performance measure? a. Manufacturing yield b. Product-related litigation c. Flow processing or cycle time d. Employee satisfaction
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Employee satisfaction
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Which of the following performance perspectives in the balanced scorecard model measures the ultimate value that a business provides to its shareholders? a. The learning perspective b. The customer perspective c. The financial perspective d. The internal perspective
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The financial perspective
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The quantitative modeling of cause-and-effect relationships between external and internal performance criteria is called ________. a. sustainability b. productivity c. operational efficiency d. interlinking
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interlinking
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________ measures the degree to which the output of a process meets customer requirements. a. Learning b. Variability c. Quality d. Innovation
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Quality
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Which of the following performance perspectives in the balanced scorecard model includes measures such as productivity, flow time, and asset utilization? a. The internal perspective b. The financial perspective c. The customer perspective d. The innovation and learning perspective
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The internal perspective
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In the context of the types of performance measures, which of the following is a measure of innovation and learning? a. Employee retention b. Labor productivity c. Patent applications d. Product recalls
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Patent applications
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Which of the following is a quality performance measure at an operational level? a. Product recalls b. Service representative courtesy c. Customer retention d. Customer ratings of goods and services
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Service representative courtesy
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________ is the ability to provide goods and services to customers with minimum waste and maximum utilization of resources. a. Operational efficiency b. Sustainability c. Reliability d. Volume flexibility
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Operational efficiency
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The table below shows the data for the number of pair of shoes produced and the cost incurred by Fancy Trends Inc. for the year 2015? Pair of Shoes Produced 200,000 Cost Incurred Direct Labor Cost $50,000 Energy Cost $8,500 Raw Material Cost $42,000 Based on the given data, the productivity of Fancy Trends Inc. for the year 2015 is ________. answer with letter a. 2.64 pairs/USD b. 1.39 pairs/USD c. 1.99 pairs/USD d. 0.99 pair/USD
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c
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According to Professor Terry Hill's generic strategy framework, which of the following statements is true of the first loop? answer with letter a. It describes how operations evaluate the implications of competitive priorities in terms of process choice. b. It ties together an organization's corporate strategy and marketing strategy. c. It determines if process choice decisions are consistent with infrastructure decisions. d. It represents operations' input into the corporate and marketing strategy.
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b
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Sustainability is best described as a(n) ________. a. pattern that integrates an organization's major goals b. competitive priority c. organizational strategy d. idea that differs from existing norms
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organizational strategy
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Basic customer expectations are generally considered the minimum performance level required to stay in business and are often called ________. a. order qualifiers b. credence attributes c. order winners d. experience attributes
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order qualifiers
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Families of goods or services having similar characteristics or methods of creation are called ________. a. strategic business units b. core competencies c. order qualifiers d. customer benefit packages
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strategic business units
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Which of the following companies is most likely to have a competitive advantage in its market? answer with letter a. Greyon Inc., a computer manufacturer that builds and leverage operational capabilities to support desired priorities b. Huran Co., a clothing manufacturer that focuses on the organization's capability rather than customers' needs or wants c. Singletone Corp., a stationery manufacturer that reduces mass customization d. Porthis Inc., a sports good manufacturer that treats the market as a single segment
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a
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Identify a true statement about corporate strategy of large organizations. answer with letter a. It provides the means by which business strategies are accomplished. b. It is necessary to define the businesses in which an organization will participate. c. It defines how an organization's processes are designed and organized. d. It defines the focus for strategic business units of an organization.
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b
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Rues and West Inc. manufactures various electronic goods. It uses mass-customization strategies to make its products available to all consumers at any place in the world. It also manufactures various electronic goods in the same assembly line. Given this information, Rues and West Inc.'s operations are aligned around ________. a. reliability b. durability c. flexibility d. sustainability
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flexibility
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The style and fit of a jacket can be classified as a(n) ________. a. credence attribute b. experience attribute c. variant attribute d. search attribute
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search attribute
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Which of the following is a difference between the evaluation of goods and the evaluation of services by customers? answer with letter a. Customers adopt innovations in services faster, whereas they resist adopting innovations in products. b. Customers rely more on information from nonpersonal sources when evaluating services, whereas they rely more on information from personal sources when evaluating goods. c. Customers perceive lesser risks when buying services, whereas they perceive greater risks when buying goods. d. Customers cannot look at or touch services prior to the purchase decision, whereas they can feel a product prior to purchase.
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d
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An operations strategy can be defined as ________. answer with letter a. a strategy necessary to define the businesses in which a corporation will participate b. a strategy necessary to develop plans for the acquisition and allocation of resources among businesses c. the decisions management must make as to what type of process structure is best suited to produce goods or create services d. the set of decisions across the value chain that supports the implementation of higher-level business strategies
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d
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Correct At Ritufa Food Corp., flexibility is the key competitive priority. Food products are manufactured according to customers' requirements, at any volume and globally delivered at any time. Given this information, Ritufa Food Corp.'s operations strategy is based on ________. a. cost reduction b. mass customization c. compensation d. mass standardization
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mass customization
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Which of the following statements is true of quality as a key competitive priority? answer with letter a. It suffers increasingly with time reductions in a supply chain. b. It is negatively related to a higher return on investment for almost all kinds of market situations. c. It is usually improved by businesses to increase short-run profitability. d. It has evolved over the years and now is generally considered an order qualifier.
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d
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________ is the discovery and practical application or commercialization of a device, method, or idea that differs from existing norms. a. Learning b. Measurement c. Diversity d. Innovation
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Innovation
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Which of the following is one of the key areas that is addressed by operations design choices? answer with letter a. Quality control and mass customization b. Functional plans and control systems c. Value chain integration and outsourcing d. Learning and innovation systems
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c
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________ are the decisions management must make as to what type of process structure is best suited to produce goods or create services. a. Competitive priorities b. Credence attributes c. Operations design choices d. Core competencies
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Operations design choices
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Which of the following is considered an order winner in an automobile? answer with letter a. A good-quality radio particular to that brand of automobile b. A comfortable seating arrangement that is similar to other automobiles c. A driver-side air bag that most high-end automobiles have d. A collision avoidance system particular to that design of automobile
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d
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Jennifer is planning a vacation to an exotic island. Though she has pre-planned her accommodation and itinerary, she is unsure of how the vacation will turn out. In this case, Jennifer's vacation is high in ________. a. variant attributes b. search attributes c. credence attributes d. experience attributes
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experience attributes
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________ is an example of innovation in services. a. Customer satisfaction surveys b. Internet banking c. Optical fibers d. Smart tags
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Internet banking
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John is admitted to a hospital to undergo a surgery for hernia. He is unable to discern the expertise of his surgeon before the surgery nor evaluate the quality of the service after the surgery. In this case, the expertise of John's surgeon is an example of a(n) ________. a. experience attribute b. credence attribute c. variant attribute d. search attribute
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credence attribute
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________ often drive simultaneous improvements in quality, cost, and productivity. a. Mass standardization b. Corporate strategies c. Credence attributes d. Time reductions
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Time reductions
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Which of the following is true of the House of Quality? answer with letter a. It fails to incorporate customer requirements. b. It contains supplier estimations. c. It contains key selling points and features. d. It does not incorporate competitive evaluations.
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c
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In the context of service-encounter design, high-contact systems would most commonly be found in ________. a. construction services b. front office operations c. distribution systems d. process designs
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front office operations
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To create and deliver a service, four steps are required and based on collecting information on errors per step, the following reliabilities have been determined: Step 1 = 0.95, Step 2 = 0.99, Step 3 = 0.94, and Step 4 = 0.92. The reliability of the total service system is ________. answer with letter a. 0.87 b. 0.91 c. 0.84 d. 0.81
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d
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Unlike the customer benefit package design and configuration stage of designing goods and services, the detailed goods, services, and process design __________________. answer with letter a. is more conceptual in nature. b. focuses on implementation. c. focuses on the evaluation of quality. d. is more strategic in nature.
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b
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A quality characteristic has a specification (in cm) of 0.50 ± 0.05. If the value of the quality characteristic exceeds 0.50 by the tolerance of 0.05 on either side, the product will require a $200.00 repair. In the given scenario, the Taguchi loss function is correctly represented by which of the following equations? answer with letter a. L(x) = 200 (x − 0.45)2 b. L(x) = 80,000 (x − 0.50)2 c. L(x) = 80,000 (x − 0.45)2 d. L(x) = 200 (x − 0.50)2
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b
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In the context of the servicescape, in the service-delivery system design, building footprints are examples of ________. answer with letter a. artifacts. b. spatial layout and functionality. c. signs and symbols. d. ambient conditions.
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b
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Susan runs a bed and breakfast in the outskirts of a big city. Her employees are allowed to spend up to $150 to resolve any customer complaints, with no questions asked. This is an example of ________. a. assurance b. flexibility c. empowerment d. service guarantee
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empowerment
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The bottom of a House of Quality identifies the technical features that ________. answer with letter a. have the highest competitive performance b. are interrelated to each other c. are the weakest selling points d. have the strongest relationships to customer requirements
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d
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In the context of service-delivery system design, which of the following establishments depends on good location decisions? a. A distribution center b. A health club c. An insurance claim processing center d. An ice-cream factory
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A health club
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The specifications for an automobile part (in inches) are 7.00 ± 0.15, and the Taguchi loss function is estimated to be L(x) = 9,900 (x - T)2. Determine the estimated loss per part if the concerned quality feature has an actual value of 7.1 inches. answer with letter a. $3720 b. $ 9900 c. $372 d. $99
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d
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Which of the following is true of Energy Star-certified products? answer with letter a. They cannot be salvaged for reuse. b. They have a higher carbon footprint in the environment. c. They exert less demand on electrical power plants. d. They cannot be repaired easily since they use advanced technology.
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c
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In the context of quality function deployment, one of the first steps to build the House of Quality is to ______________. answer with letter a. conduct prototype testing. b. advertise, market, and offer the product to customers. c. evaluate the marketplace. d. identify the technical features of the design of the product.
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d
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The specifications for a refrigerator part (in cm) are 5.00 ± 0.10, and the Taguchi loss function is estimated to be L(x) = 7,500 (x - T)2. Determine the estimated loss per part if the quality characteristic (i.e., actual process performance) under study takes on a value of 4.91 cm. answer with letter a. More than $90 b. More than $50 but less than or equal to $70 c. More than $30 but less than or equal to $50 d. More than $70 but less than or equal to $90
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b
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Which of the following elements is included in the service-delivery system design? a. Service guarantees and recovery b. Facility location and layout c. Prototype testing d. Company mission
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Facility location and layout
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In the context of service-encounter design, giving discounts to employees is a form of _____. a. recognition b. guarantee c. assurance d. compensation
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recognition
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The critical differences between the designs of goods and services lie in the: answer with letter a. customer benefit package design and configuration phases. b. research and analysis phases. c. detailed product and process design phases. d. market introduction and deployment phases.
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c
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In a two-component parallel system, the overall reliability is 0.985. If the reliability of the first component is 0.97, determine the reliability of the second component. answer with letter a. 0.05 b. 0.25 c. 0.50 d. 0.55
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c
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In the context of designing manufactured goods, socially responsible designs are the ones that follow the concept of ______. answer with letter a. Design for Accuracy b. Design for reliability c. Design for manufacturability d. Design for Environment
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d
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In the context of quality function deployment, building a House of Quality begins by identifying the ______________. a. marketplace dynamics. b. voice of the customer. c. service provider requirements. d. competitive priorities.
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voice of the customer
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Which of the following requirements is an example of customer-contact requirements? answer with letter a. Cross-selling b. Prominently displayed company logo c. Convenient facility location d. Ambient conditions
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a
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________ are organized around particular types of general-purpose equipment that are flexible and capable of customizing work for individual customers. a. Job shop processes b. Assembly line processes c. Flow shop processes d. Continuous flow processes
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Job shop processes
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What is the implied service rate per service counter employee at one of the Lubbock car rental companies if customer demand is 30 customers per hour, two service counter employees are on duty, and the labor utilization is 75 percent? answer with letter a. 12 customers per hour b. 20 customers per hour c. 24 customers per hour d. 16 customers per hour
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b
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A manufacturer's average work-in-process inventory for Part # 3344 of a particular car model is 1,750 parts. The workstation produces parts at the rate of 250 parts per day. What is the average time a part spends at the workstation? answer with letter a. More than 4 but less than or equal to 6 days b. More than 10 days c. More than 6 but less than or equal to 8 days d. More than 8 but less than or equal to 10 days
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c
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Which of the following statements is true of a process map? answer with letter a. It distorts the boundaries of a process. b. Adding multiple approval requirements for all transactions in a process map is a crucial part in the creation of the process map. c. It documents how work either is or should be accomplished. d. Including non-value-added activities in a process map is one of the important responsibilities of operations managers.
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c
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On an average, a car rental company in Lubbock rents 150 cars per day. The cars are rented for an average of 5 days. What is the average number of rentals processed per day? answer with letter a. 20 cars per day b. 25 cars per day c. 30 cars per day d. 35 cars per day
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c
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A ________ is a characterization of product growth, maturity, and decline over time. a. value stream map b. product life cycle c. product-process matrix d. service blueprint
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product life cycle
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The ________ is a model that describes the alignment of process choice with the characteristics of the manufactured good. answer with letter a. process and value stream mapping b. product-process matrix c. pathway matrix d. service-positioning matrix
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b
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Non-value-added activities in a process design can be eliminated by ________. answer with letter a. limiting the throughput of all processes b. adding multiple approval requirements for all transactions c. using value stream mapping d. increasing process boundaries
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c
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Which of the following statements is true of the service-positioning matrix (SPM)? answer with letter a. The SPM helps management design a service system that best meets the technical and behavioral needs of customers. b. The horizontal axis of the SPM reflects the number of pathways built into a service system design by management. c. The vertical axis of the SPM denotes the repeatability of a customer's service-encounter activity sequence. d. The SPM mainly focuses on the alignment of process choice with the characteristics of the manufactured good.
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a
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In a process design, a ________ is a specific unit of work required to create an output. a. task b. value chain c. matrix d. portfolio
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task
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Which of the following is true of custom goods? answer with letter a. They are made in anticipation of customer demand. b. They are usually available as they are stocked in inventory. c. They are produced on demand. d. They are made according to a fixed design.
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c
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________ are configurations of standard parts, subassemblies, or services that can be selected by customers from a limited set. a. Custom goods b. Option goods c. Standard goods d. Fixed goods
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Option goods
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The average number of entities completed per unit of time—the output rate—from a process is called ________. a. service rate b. throughput c. utilization d. work-in-process
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throughput
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A ________ is the beginning or end of a process. a. process design b. process bottleneck c. process map d. process boundary
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process boundary
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Which of the following is true of reengineering? answer with letter a. Reengineering decreases throughput by adding process bottlenecks. b. The aim of reengineering is to focus on quality by adding multiple approval requirements for all transactions. c. Reengineering increases the number of non-value-added activities in a process design. d. The goal of reengineering is to achieve quantum leaps in performance.
answer
d
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Which of the following is a difference between flow shops and job shops? answer with letter a. Unlike flow shops, job shops require frequent machine changeovers and delays. b. Unlike flow shops, job shops are organized around a fixed sequence of process steps. c. Unlike flow shops, job shops require little or no setup time. d. Unlike flow shops, job shops produce many large-volume goods and services.
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a
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________ are large-scale, customized initiatives that consist of many smaller tasks and activities that must be coordinated and completed to finish on time and within budget. a. Projects b. Flow shops c. Assembly line processes d. Continuous flow processes
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Projects
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Management strategies to improve process designs of services focus on ________. answer with letter a. decreasing process costs by adding multiple approval requirements for all transactions b. increasing agility by making service processes mechanistic and controlled c. decreasing process bottlenecks by adding non-value-added activities to a process d. increasing product and service quality by reducing defects and service upsets
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d
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A wealth management company has 600 customer statements in process on average on any given day. The company is able to process 10 statements per day. What is the average time any customer will wait for his or her statement to be processed? answer with letter a. 45 b. 60 c. 75 d. 30
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b
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The ________ consists of all the process steps and associated service encounters necessary to complete a service transaction and fulfill a customer's wants and needs. answer with letter a. service-positioning matrix b. product-process matrix c. process and value stream mapping d. service-encounter activity sequence
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d
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The degree to which a product meets pre-established standards/specifications is known as ________. a. product reliability b. product yield c. quality of conformance d. quality of performance
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quality of conformance
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________ are targets and tolerances determined by designers of goods and services. a. Defects b. Specifications c. Costs of quality d. Units of work
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Specifications
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In the context of SERVQUAL, ________ is the knowledge and courtesy of service providers and their ability to convey trust and confidence. a. competence b. responsiveness c. assurance d. reliability
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assurance
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Which of the following definitions of quality is proposed by Joseph M. Juran? answer with letter a. A product or a service possesses quality if it consistently exceeds customer expectations. b. Quality means conformance to requirements. c. Quality is fitness for use. d. A product or a service possesses quality if it helps somebody and enjoys a good and sustainable market.
answer
c
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Which of the following statements is true of Dr. W. Edwards Deming? answer with letter a. He sought to improve quality by working within the system familiar to managers. b. He proposed a simple definition of quality: "fitness for use." c. He professed that quality means conformance to requirements and not elegance. d. He advocated a process to guide and motivate improvement activities known as the Deming cycle.
answer
d
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According to Philip B. Crosby's Absolutes of Quality Management philosophy, ________. answer with letter a. there is no such thing as a quality problem b. the only performance measurement is the economics of quality c. there is no such thing as zero defects d. quality means conformance to elegance
answer
a
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The managers at Banana Corp. think that their company's products are of higher quality than the products of other companies in the market. However, contrary to their perception, the customers rate the company's products as below average. This is due to the inferior process design specifications in the company. This is an example of ________ in the GAP model. answer with letter a. Gap 2 b. Gap 5 c. Gap 3 d. Gap 4
answer
a
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Identify a true statement about the GAP model. answer with letter a. Failure to understand and minimize gaps presents the risk of losing customer loyalty. b. Minimizing gaps 4 and 5 will result in low customer satisfaction. c. It defines quality system standards based on the premise that certain generic characteristics of management practices can be standardized. d. It eliminates causes of defects and errors in manufacturing and service processes by focusing on outputs that are critical to customers.
answer
a
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ISO9000:2000 principles consists all of the following except ________. answer with letter a. mutually beneficial supplier relationships b. involvement of people c. zero defects d. system approach to management
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c
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In General Electric's Six Sigma problem-solving approach (DMAIC), the ________ phase involves determining the most likely causes of defects. a. control b. measure c. analyze d. define
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analyze
question
Which of the following is a core philosophy of Six Sigma? answer with letter a. Achieving cycle time reduction b. Avoiding errors per million opportunities as a standard metric c. Increasing non-value-added activities d. Increasing variation in cash flow
answer
a
question
Diane is a front-desk manager at Refington Hotel, a mid-market hotel. During Diane's shift last week, she received 29 customer complaints. A total of 428 guests had stayed in the hotel that week. Given this information, find out the errors per million opportunities. answer with letter a. 14758620 errors per million opportunities b. 23456 errors per million opportunities c. 67757 errors per million opportunities d. 428 errors per million opportunities
answer
c
question
At Scotts Automobiles, a few machines in the assembly section were faulty and had to be shut down till they were repaired. This reduced the output of automobiles for the quarter. In this case, the costs incurred by Scotts Automobiles for repairing the machines are an example of ________. answer with letter a. prevention costs b. external failure costs c. appraisal costs d. internal failure costs
answer
d
question
Halo Suits faced a lot of complaints from customers when its recent batch of goods was dispatched. The employees at Halo Suits, hence, had to rework on the returned items, and in some cases, the company had to even replace the faulty goods. In this case, the costs incurred by Halo Suits are an example of ________. answer with letter a. prevention costs b. external failure costs c. appraisal costs d. internal failure costs
answer
b
question
Appraisal costs ________. Selected Answer: answer with letter a. are a type of external failure cost b. are incurred during product design c. include inspection, testing, equipment and operator costs d. include scrap, rework, downtime, and price reductions
answer
c
question
David, the manager at East & West Inc., wants to know the sequence of the production process in the company to determine if any process can be combined or eliminated. In this case, a ________ will suit David's requirement. a. run chart b. checksheet c. flow chart d. histogram
answer
flow chart
question
A ________ is a basic statistical tool that graphically shows the frequency or number of observations of a particular value or within a specified group. a. histogram b. flowchart c. scatter diagram d. cause-and-effect diagram
answer
histogram
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Which of the following quality tools display major causes of poor quality on a graph? answer with letter a. Process flow chart b. Histogram c. Cause-and-effect diagram d. Scatter diagram
answer
c
question
Identify a true statement about the poka-yoke concept. answer with letter a. It is a concept advocated by Dr. W. Edwards Deming. b. Many applications of poka-yoke are expensive to implement. c. It is a manufacturing process. d. Many applications of poka-yoke are deceptively simple.
answer
d
question
Identify a true statement about kaizen. answer with letter a. It is performed on a part-time basis. b. It is based on the concept of continuous improvement. c. It is an intense, rapid improvement process. d. It involves a huge financial investment.
answer
b
question
A production process consists of the following four stages with the average percentage of good quality at each stage as shown: Stage Average Percentage of Good Quality 1 0.90 2 0.92 3 0.94 4 0.85 What is the daily production yield for the company if daily input is 106 units? answer with letter a. Approximately 55 units b. Approximately 85 units c. Approximately 70 units d. Approximately 90 units
answer
c
question
Refer to Question 21, suppose a six-sigma quality initiative was undertaken in which improvements in good quality were obtained as follows: Stage Average Percentage of Good Quality 1 0.95 2 0.96 3 0.97 4 0.96 Now what is the yield? answer with letter a. Approximately 85 units b. Approximately 90 units c. Approximately 70 units d. Approximately 55 units
answer
b
question
Refer to Question 21, suppose the cost for a production run of 106 units is $106,000. What is the cost per 'good' unit before the six-sigma quality initiative? Assume costs are rounded to the nearest whole dollar. answer with letter a. $1955 b. $1723 c. $1178 d. $1514
answer
d
question
Refer to Question 22, what is the cost per unit after the six-sigma quality initiative? Suppose the cost for a production run of 106 units is $106,000. Assume costs are rounded to the nearest whole dollar. Assume the quality initiative adds no extra cost. answer with letter a. $1955 b. $1514 c. $1178 d. $1723
answer
c
question
Refer to Questions 21-24, what is the cost savings per unit as a result of the quality initiative? What is the relationship between quality and costs? answer with letter a. $232, better quality results in lower unit production costs b. $336, better quality results in lower unit production costs c. $336, better quality results in higher unit production costs d. $232, better quality results in higher unit production costs
answer
b
question
In the 1:10:100 Rule, which of the following would be correct? answer with letter a. If a defect or service error is identified and corrected at the design stage, it might cost $1 x $10 x $100 = $1,000 to fix. b. If a defect or service error is identified and corrected after it reaches the customer, it might cost $100 to fix. c. If a defect or service error is identified and corrected at the production process stage, it might cost $100 to fix. d. If a defect or service error is identified and corrected at the design stage, it might cost $100 to fix.
answer
b
question
A manufacturer of televisions performs a simple test on each unit to make sure it operates properly is an example of ________. a. supplier certification and management b. finished-goods control c. in-process control d. a continuous metric
answer
finished-goods control
question
If no special causes affect the output of a process, the process is said to be ________; and if special causes are present, the process is said to be ________. answer with letter a. effective; non-effective b. qualified; not qualified c. certified; not certified d. in control; out of control
answer
d
question
Which of the following is true of common cause variation? answer with letter a. It appears at random, and individual sources cannot be identified or explained. b. It accounts for about 10 to 15 percent of the observed variation in a process. c. It can be controlled and described using nonstatistical methods. d. It arises from external sources that are not inherent in a process.
answer
a
question
Which of the following is true of special cause variation? answer with letter a. It accounts for about 80 to 95 percent of the observed variation in a process. b. It cannot be detected using statistical methods. c. It occurs sporadically and can be prevented. d. It cannot be explained or understood.
answer
c
question
A cell phone manufacturer has been experiencing physical quality control problems. The back case of phones does not always fit and snap into place on the phone body. The dimensions of the case have constantly been in statistical process control (SPC). To monitor process control, the company uses x with bar on top- and R-charts. Seven samples, each containing three phone cases, were selected from different batches. The data is presented in table below. Observation Sample 1 Sample 2 Sample 3 Sample 4 Sample 5 Sample 6 Sample 7 1 6.02 5.92 5.88 5.99 6.05 5.90 6.02 2 5.97 5.84 5.97 6.08 6.06 5.96 5.95 3 5.92 5.84 5.88 6.08 5.98 5.99 5.82 Average Range The lower control limit for the x with bar on top- chart (L C L subscript x with bar on top end subscript) will be ________. answer with letter a. 5.85 b. 6.77 c. 4.26 d. 7.57
answer
a
question
A cell phone manufacturer has been experiencing physical quality control problems. The back case of phones does not always fit and snap into place on the phone body. The dimensions of the case have constantly been in statistical process control (SPC). To monitor process control, the company uses x with bar on top- and R-charts. Seven samples, each containing three phone cases, were selected from different batches. The data is presented in table below. Observation Sample 1 Sample 2 Sample 3 Sample 4 Sample 5 Sample 6 Sample 7 1 6.02 5.92 5.88 5.99 6.05 5.90 6.02 2 5.97 5.84 5.97 6.08 6.06 5.96 5.95 3 5.92 5.84 5.88 6.08 5.98 5.99 5.82 Average Range The upper control limit for the x with bar on top- chart (U C L subscript x with bar on top end subscript) will be ________. answer with letter a. Less than or equal to 5.0 b. Greater than 5.0 but less than or equal to 6.0 c. Greater than 7.0 d. Greater than 6.0 but less than or equal to 7.0
answer
d
question
A detergent company periodically tests its products for variations in the fill weight. To do this, the company uses x with bar on top- and R- charts. Eight samples, each containing six detergent boxes, were selected from different batches. Historical data for fill weight (in ounces) of the eight samples is presented below. Sample Sample Mean Sample Range 1 15.80 0.39 2 16.10 0.37 3 16.02 0.28 4 15.95 0.19 5 16.12 0.42 6 16.18 0.23 7 15.87 0.36 8 16.20 0.40 The upper control limit for the R-chart (UCLR) will be ________. answer with letter a. Greater than 7.0 b. Greater than 5.0 but less than or equal to 6.0 c. Greater than 6.0 but less than or equal to 7.0 d. Less than or equal to 5.0
answer
d
question
A detergent company periodically tests its products for variations in the fill weight. To do this, the company uses x with bar on top- and R- charts. Eight samples, each containing six detergent boxes, were selected from different batches. Historical data for fill weight (in ounces) of the eight samples is presented below. Sample Sample Mean Sample Range 1 15.80 0.39 2 16.10 0.37 3 16.02 0.28 4 15.95 0.19 5 16.12 0.42 6 16.18 0.23 7 15.87 0.36 8 16.20 0.40 What is the D3 value that will be used for calculation of LCLR? answer with lettter a. 0.136 b. 0 c. 1.864 d. 2.004
answer
b
question
Using the detergent data and the results from previous questions, one would ________. answer with letter a. conclude that the R-chart is not in statistical control; the manufacturing process should be stopped b. investigate sample #4 because the range is the smallest c. conclude that the R-chart is in statistical control, and proceed to proceed to develop the x with bar on top-chart d. conclude that the variation is not random, and therefore all samples should be investigated.
answer
c
question
A process is in control when the control chart has the following characteristics except ________. a. no points are outside control limits b. most points, but not all, are near the center line, and only a few are close to the control limits c. the points seem to have a trend d. the number of points above and below the center line is about the same
answer
c
question
Identify the chart that is also known as fraction nonconforming or fraction defective chart. answer with letter a. A p-chart b. An R-chart c. A c-chart d. An x-chart
answer
a
question
An operator wants to determine the standard deviation for a machine he operates. To do this, he wants to create a p-chart. Over a month's time, he collects 30 samples of 80 observations each and records the number of errors. The average proportion defective is found to be 0.025. Which of the following is the standard deviation (S subscript p with bar on top end subscript) of the machine? answer with letter a. 0.017 b. 0.047 c. 0.027 d. 0.037
answer
a
question
A c-chart ________. answer with letter a. is used to monitor the number of nonconformances per unit b. is used for the fraction of nonconforming items c. uses continuous metrics d. can have negative lower limits
answer
a
question
Flaws are counted on a standard steel plate (sheet). Each sheet has the exact same dimensions. If 10 sheets are selected at random and the number of flaws per sheet is as follows, the lower control limit for the steel plate control chart is ________ while the upper control limit for the steel plate control chart is ________. Sheet Number of Flaws 1 3 2 1 3 3 4 0 5 2 6 2 7 0 8 1 9 1 10 2 answer with letter a. 0 | 5.17 b. -2.17 | 5.17 c. 5.17 | 5.51 d. 0 | 2.17
answer
a
question
In the context of designing control charts, which of the following is true of a sample size? answer with letter a. A small sample size provides greater degrees of statistical accuracy in estimating the true state of control than a large sample size. b. A small sample is used to detect process shifts of two standard deviations or smaller. c. A large sample allows small changes in process characteristics to be detected with higher probability than a small sample size. d. A large sample size is desirable to keep the cost associated with sampling low.
answer
c
question
The relationship between the natural variation and specifications is quantified by a measure known as the ________. a. process design index b. net promoter score c. process capability index d. net detractor score
answer
process capability index
question
If a process has a process capability index value (Cp) of less than 1, it means that ________. answer with letter a. both the lower and upper specification limits are met b. a significant percentage of output will not conform to the design specifications c. the process is very capable of meeting the upper specification limit d. the observed variation is the same as the design specification width
answer
b
question
The time taken for guests to check out at a hotel front desk was measured over the course of several weeks. The management believes that the target time for checking out guests should be between 1 and 2 minutes with a target of 1.5 minutes. The data gathered for the actual process had a mean time of 1.75 minutes with a standard deviation of 0.35 minutes. The process capability index will be ________. answer with letter a. 0.12 b. 0.48 c. 0.37 d. 0.24
answer
b
question
A bottling process sometimes results in overfills or underfills. Overfills are especially damaging to the equipment. Which process capability index would this company most want to monitor? a. Cpk b. Cpu c. Cpl d. Cp
answer
Cpu...
