Studied by 0 peopleWhen a process fails to satisfy a customer:
it is considered a defect
Consumers consider five aspects when defining quality. Which one of the following is least likely to be one of these aspects?
Individual development
Which of the following would be considered a prevention cost of quality?
Training workers to perform their jobs
Which of the following would be considered an appraisal cost of quality?
Running a functional test on each item before it is boxed for shipment
Improving quality seems to be a strategic weapon in gaining market share. However, improving quality entails allocation of resources and effort. As greater effort is expended to stop defects before they occur, which one of the following costs increases?
Prevention costs
Which one of the following is a consequence of internal failures?
Increased inventory costs
Increasing the quality level by better products and processes may:
allow a company to raise the price of the product.
Which one of the following statements is TRUE?
Fitness for use is how well a product or service serves its intended market at a price customers are
willing to pay.
The quality of service is generally easier to measure than is the quality of manufactured products.
High conformance to quality in manufacturing has no effect on profit margins.
Rework tends to increase lead time and inventory levels maintained in a manufacturing company.
Rework tends to increase lead time and inventory levels maintained in a manufacturing company.
Which one of the following is considered to be an appraisal cost?
Cost of quality audits
Which one of the following statements is TRUE?
a. Appraisal costs decrease as quality level decreases.
b. Appraisal costs increase as the variation of output increases.
c. Appraisal costs increase as the variation of output decreases.
d. Appraisal costs increase as quality level increases.
Appraisal costs increase as the variation of output increases.
A cost that is incurred if some aspect of a service must be performed again is called a(n):
rework cost
When errors have been made while producing a product such that the item must be discarded, the resultant cost is called a(n):
scrap cost.
Which one of the following is part of prevention costs?
The costs of improving process design and product design
“Quality at the source” implies:
lower scrap.
Which one of the following statements is a key feature of both TQM and Six Sigma?
Quality is primarily the responsibility of all employees in the organization.
A firm’s internal program in employee involvement includes which of the following considerations?
Defining who is the customer
Which one of the following statements about total quality management (TQM) is TRUE?
In total quality management, workers have the authority to stop a production line if they see quality problems.
As an operations manager, which definition of quality do you have the most control over?
Conformance to specifications
The implementation of a total quality management program or a Six Sigma program will most likely result in:
an increase in communication between workers.
One of the main challenges in developing the proper culture for TQM is to:
define customer for each employee.
A firm that has embraced the notion of quality at the source is more likely to have:
no inspectors
Continuous improvement is a philosophy that:
uses problem-solving techniques within work teams.
What is one reason that Six Sigma is more difficult to apply to service processes?
The work product is more difficult to see.
Which step of the Six Sigma DMAIC procedure uses flowcharts and process charts to identify gaps between the characteristics of a process’s output important to the customer and the process’s capabilities?
Define
During which step of the Six Sigma DMAIC procedure are current processes modified or redesigned to meet new performance objectives?
Improve
Which step of the Six Sigma DMAIC procedure involves identifying data sources and preparing a data collection plan?
Measure
Six sigma teacher can attain different level titles, based on their experience and level of achievement. What is the highest level a Six Sigma teacher can reach?
Master Black Belt
Which of the following would be a “common” cause of variation?
Random sources
Which one of the following statements is TRUE?
No two products are exactly alike because the processes that produce them contain many sources of variation, even if the process is a machine.
With due diligence, variation in a process can be completely eliminated.
SPC and TQM are two competing techniques for quality control.
Common causes of variation are those factors that can be identified as commonly occurring at aparticular process.
No two products are exactly alike because the processes that produce them contain many sources of variation, even if the process is a machine.
Which one of the following statements is TRUE?
Nothing can be done to completely eliminate variation in process output.
SPC and TQM are one and the same thing.
Assignable causes of variation are purely random factors that can be assigned to a particular process.
Common causes of variation are those factors that can be identified as commonly occurring at a
particular process.
Nothing can be done to completely eliminate variation in process output.
In Statistical Process Control, ______________ are used to detect defects and determine if the process has deviated from design specifications.
Control Charts
Which of the following can be used to eliminate “common” causes of variation?
They cannot be eliminated.
When should complete inspection be used?
When the cost of product failure is high relative to the inspection costs
In SPC, the distribution of sample means:
can be approximated by the normal distribution
Regarding control charts, a type I error refers to concluding that the process is:
out of control when it is in control.
An example of a type I error would be:
throwing away a perfectly good banana.
An example of a type II error would be:
eating food that you were unaware was spoiled.
Regarding control charts, changing from two-sigma limits to three-sigma limits:
increases the probability of concluding nothing has changed, when in fact it has.
The UCL and LCL for an x chart are 25 and 15 respectively. The central line is 20, and the process variability is considered to be in statistical control. The results of the next six sample means are 18, 23, 17, 21, 24, and 16. What should you do?
Nothing; the process is in control.
The central line on a p-chart is 0.50 with a UCL of 0.65 and an LCL of 0.35. The results of the next six samples are 0.60, 0.37, 0.45, 0.48, 0.45, and 0.42. What should you do?
Explore assignable causes because there is a run.
A company is interested in monitoring the variability in the weight of the fertilizer bags it produces. An appropriate control chart would be:
an R-chart.
A company is interested in monitoring the average time it takes to serve its customers. An appropriate control would be:
An x-chart
A company is interested in monitoring the number of scratches on plexiglass panels. The appropriate control chart to use would be:
A c-chart
Five samples of size 4 were taken from a process. A range chart was developed that had LCLR = 0 and UCLR = 2.50. Similarly, an average chart was developed with the average range from the five samples, with LCLX = 15.0 and UCLX = 24.0. The ranges for each of the five samples were 1.75, 2.42, 2.75, 2.04, and 2.80, respectively. The values of the sample average for each sample were 19.5, 22.3, 17.4, 20.1, and 18.9, respectively. What can you tell management from this analysis?
The process variability is out of control, and we cannot make a statement about the process average.
The consultant suspiciously eyes the c-chart that chickenverks used to monitor the number of broken eggs in each 100 carton “You know you really should be using a p-chart,” the consultant commented with an air of superiority. “What’s the difference between a p-chart and a c-chart in this application?” the long time Chickenverks employee asked with an obvious edge to his voice. “Well,” the consultant replied, “the difference is:
well, OK, you got me. The charts will look and behave the same for all practical purposes.”
Historically, the average proportion of defective bars has been 0.015. Samples will be of 100 bars each. Construct a p-chart using z = 3. Suppose a sample had 0.07 defectives. What would you do?
Look for assignable causes.
A hotel tracks the number og compaints per mont. Whne the process is in control there is an average of 25 complaints per month. Assume that a 2-sigma control limit is used. The next four months have 33, 27, 29, and 43 complaints. What should management do?
Do nothing; the process is in control.
Process capability can be addressed when:
a process is in statistical control.
Which of the following statements is TRUE?
a. A process can be out of statistical control but still exhibit process capability.
b. Process capability refers to the ability to meet a product’s design specifications.
c. A process in statistical control necessarily exhibits process capability.
d. Process capability can be determined for manufactured products only, not for services.
Process capability refers to the ability to meet a product’s design specifications.
A metal-cutting operation has a target value of 20 and consistently averages 19.8 with a standard deviation of 0.5. The design engineers have established an upper specification limit of 22 and a lower specification limit of 18. Which statement concerning this process is TRUE?
None of these is true.
Which one of the following statements is TRUE?
The Malcolm Baldrige National Quality Award and ISO 9000:2000 are essentially the same things, except that ISO 9000:2000 is a quality award for European companies.
The Malcolm Baldrige National Quality Award is only for manufacturing companies.
To achieve ISO 9000:2000 standards, a company must have excellent quality.
ISO 9000:2000 is not an award for good quality.
ISO 9000:2000 is not an award for good quality.
The ISO 9000:2000 standard:
addresses quality system documentation.
The Malcolm Baldrige National Quality Award:
involves a rigorous review process that often helps the companies define what quality means to them, regardless of the outcome.
The Malcolm Baldrige National Quality Award:
involves seven major criteria that are built on the base of customer satisfaction.
Which of the following generates pressure to decrease inventories?
inventory shrinkage costs
Inventories needed for the production of services and goods (inputs to a firm's transformation processes) are called:
raw materials
Which of the following is NOT a lever for reducing cycle inventories?
place purchased item orders at fixed intervals
What is generally true about the class A SKUs in ABC analysis? They represent about:
20 percent of all SKUs
ABC analysis is closely related to:
Pareto analysis.
Which one of the following is NOT a method for tracking inventory and ensuring accurate records?
updating the reorder points to minimize safety stock
Which one of the following statements regarding the economic order quantity (EOQ) is TRUE?
If an order quantity is larger than the EOQ, the annual holding cost for cycle inventory exceeds the annual ordering cost.
Which one of the following statements concerning the economic order quantity (EOQ) is TRUE?
An increase in demand will increase the EOQ.
You have taken a job in industry and are facing your first ordering decision. As you prepare to place the order, you remember your instructor teaching you that you wouldn't use the EOQ formula if:
the order size is constrained by capacity limitations such as the number or size of the delivery trucks.
Which one of the following statements concerning a continuous review system is best?
Under a continuous review system, an item's inventory position corresponds to the on-hand inventory unless there are backorders or one or more scheduled receipts.
Which one of the following descriptions best defines the cycle-service level as a measure of customer service?
the desired probability of not running out of stock in any one inventory cycle
An inventory system answers two important questions: when to order and how much to order. Which of the following statements correctly explains how a Q system (continuous review system) or a P system (periodic review system) answers these questions?
Under a P system, an order is placed to replenish the inventory position up to the target level T every P time periods.
Which one of the following statements represents an advantage of the P system over the Q system?
Orders can be more easily combined to the same supplier.
Which one of the following statements on inventory placement of finished goods is best?
Forward placement might help reduce transportation cost.
Which one of the following statements about the relation between financial and supply-chain performance measures is TRUE?
Longer delivery times require higher levels of working capital.
A somewhat successful computer manufacturer makes a generic computer in five exciting colors. Once orders are received, the computer guts are encased in the customer's choice of colored case at the factory. This approach to production is known as:
postponement.
The supply chain management department of a major manufacturer pondered a particularly weighty make or buy decision for weeks, ultimately deciding to make, rather than buy. This decision resulted in increased:
backward integration.
A U.S. company faced with spiraling costs in their customer care center recreated that service in Luxembourg at a fraction of the cost. This is an example of:
offshoring.
An efficient supply chain should be preferred when:
demand is highly predictable.
An efficient supply chain typically has:
high inventory turns.
A responsive supply chain typically has:
supply chain partners that emphasize volume flexibility.
One source of disruption caused by the external supply chain is:
late deliveries.
Possible causes of disruption due to internal supply chain problems are:
machine breakdowns or inexperienced workers.
Which of the following is NOT a stage in the New Service / Product Development Process?
maintenance
The stage of new product or service development that links the creation of new services or products to the corporate strategy of the firm is called:
design
The product development team ensures compatibility of the proposed product with corporate strategy and regulatory standards in the:
analysis stage.
A new product development team that is composed of product and process engineers, marketers, quality specialists, and buyers that work together to make sure the new product can actually be built is engaging in:
concurrent engineering.
The practice of selecting suppliers and giving them significant responsibility for the design of certain components or systems of the product is called:
presourcing
A systematic effort to reduce the cost or improve the performance of services or products is known as:
value analysis.
Approaches to e-purchasing include all of the following EXCEPT:
radio frequency identification (RFID).
Examples of radio frequency identification (RFID) could include all of the following EXCEPT:
tracking the status of engineering changes during development of a new product line.
The practice whereby a manufacturer has inventories of materials on consignment from its suppliers falls under the scope of:
vendor-managed inventories.
An end item in a BOM is typically both a component and a parent.
False
Part commonality tends to increase inventory costs.
False
Gross requirements are the total demand derived from all parent production plans.
True
A companywide process that cuts across traditional functional areas, business units, geographic regions, and product lines is a(n):
enterprise process.
A front-office module for an ERP system includes:
sales and marketing.
Which of the following is NOT an example of dependent demand items?
ice skates, roller skates
Which best defines the gross requirements for a component item?
the total demand for the component derived from all immediate parents
Which of the following statements about MRP is TRUE?
MRP gross requirements for a component depend on the planned order releases of its immediate
Which one of the following is an input to the MRP system?
master production schedule
If a planned receipt for an item is due in week 6 and the item's lead time is two weeks, in which week will the corresponding planned order release occur?
week 4
Which one of the following statements about lot-sizing rules is TRUE?
If the POQ rule is used, an item's lot size can vary each time an order is placed.
Manufacturing an item before it is needed in a lean system is not considered waste, because it helps keep material flowing through the system.
False
Just-in-time (JIT) systems need close relationships with suppliers.
True
In lean systems, work-in-process inventory is a direct result of overproduction and waiting.
True
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