International Logistics Test 3
What type of costs might still remain after you outsource an item? a. Variable plant costs b. Materials costs c. Fixed overhead costs d. Processing labor costs e. All of the above f. Only d and c g. None of the above
c. Fixed overhead costs
To achieve quality at the source, you need to focus on which of the following? a. Prevention b. Personal responsibility c. Standardization d. All of the above e. Only b and c
d. All of the above
Which of the following can be done to improve your process capability ration? a. Change the specifications b. Modify the process c. Outsource d. All of the above e. Only a and b
d. All of the above
A strategic alliance is most likely in which spend category? a. Routine b. Leverage c. Transactional d. Critical e. It could be any of the above f. It should be none of the above
d. Critical
Which of the following is a "right" in the less formal definition of purchasing? a. Obtaining the right material b. In the right quantity c. At the right time d. For delivery to the right place e. All of the above
e. All of the above
Which of the following is one of the principles of totally quality management promoted by ISO 9000? a. Customer focused b. Process approach c. Continuous improvement d. Fact-based decision-making e. All of the above f. a, b, and c only
e. All of the above
Logistics can be a source of strategic advantage true or false
True
Quality has more influence on a company than any other value-added dimensions. True or False
True
The core objective in six sigma is to reduce variation in processes. True or False
True
Which "Quality of Service" dimension would you be assessing when asking the question, "How knowledgeable and courteous are the service employees and how well do they convey trust and confidence?" Reliability Empathy Tangibles Responsiveness Assurance
Assurance
In its relationship with Gordon Foods, Bob Evans did which of the following? a. Consolidated to a single source b. Gave the drivers free food to encourage loyalty and good service c. Gave the drivers access to the restaurants at night for delivery when no one else was there. d. All of the above e. Only a and c f. None of the above
e. Only a and c
The make or buy decision analysis tells us: a. It is not that important to the company's success to outsource items that are not strategic to our success b. We should make all strategic items internally c. Before outsourcing a strategic item, we should seriously consider our own ability to successfully make that item d. All of the above e. Only a and b f. Only a and c
f. Only a and c
Which of the following are potential sources of variation in the Ishikawa cause-and-effect diagram? a. Materials b. Measurements c. Environment d. Prices e. All of the above f. Only a, b, and c
f. Only a, b, and c
Which "Quality of Product" dimension would you be assessing when asking the question, "How long will the product perform or last, and under what conditions?" Performance Durability Conformance Serviceability Reliability
Durability
As a rule of thumb, a Cpk of less than 1.5 indicates that your process can meet your desired quality levels.
False
In the process capability ratio, six sigma captures almost 88% of the process variability. True or False
False
Purchasing savings can have a huge impact on the firm's profit leverage. TrueFalse
False
Quality must be defined by engineers. They are the only one who know what it means to be fit for use. True and False
False
Outsourcing just means that you are buying something instead of making it. True or False
False q
Which "Quality of Product" dimension would you be assessing when asking the question, "Does the product possess the features you are looking for?" Features Perception Serviceability Aesthetics Conformance
Features
Which quality guru is responsible for the four step—Plan, Do, Check, Act (PDCA)—cycle that is used by almost every global manufacturer today? Joseph M. Juran Armand V. Feigenbaum Shigeo Shingo W. Edward Deming None of the above
Joseph M. Juran
A control chart that is constructed using a range is called a/an... x̄ chart R-chart p-chart s-chart None of the above
R-chart
Which "Quality of Product" dimension would you be assessing when asking the question, "Is the product relatively easy to maintain and repair?" Performance Serviceability Conformance Reliability Durability
Serviceability
With respect to control chart logic, processes that are designed to produce to a specific quality number is called? Target Variability Confidence Quality None of the above
Target
The biggest transportation mode in terms of spending is: Rail Trucking Pipeline Ocean Air
Trucking
Under what circumstances would you use process capability analysis? You want to improve the performance process You need to find out what is causing poor quality You want to verify that the process is capable of consistently producing good outputs You don't know what you are doing All of the above
You want to verify that the process is capable of consistently producing good outputs
Which of the following tools would you use to identify the most-likely cause of a quality problem? PDCA analysis Pareto chart Ishikawa cause-and-effect diagram A fishbone diagram Brainstorming session
Pareto chart
Which of the following helps you make priorities visible by showing the frequency at which each cause occurs? PDCA Fishbone diagram Pareto diagram Ishikawa cause-and-effect diagram None of the above
Pareto diagram
Which "Quality of Service" dimension would you be assessing when asking the question, "How pleasing is the appearance of the physical facilities, equipment, personnel, and communication materials?" Assurance Tangibles Empathy Reliability Responsiveness
Tangibles
Which of the following is not one of the steps in W. Edward Deming's PDCA cycle? a. Plan b. Procrastinate c. Do d. Check e. Calculate f. Act g. Both b and e
g. Both b and e
During which era did outsourcing make purchasing strategic? a. Clerical era b. Transactional era c. Strategic era d. Cost savings era e. None of the above
c. Strategic era
What needs to be done to prove a process' capability? Place customer-specific stickers on boxes of product Make decisions or activities to make a product secure Assess a supplier's available capacity and meet the investigating organization's requirements Collect data on the process by performing a trial run or pilot test None of the above
Collect data on the process by performing a trial run or pilot test
In the process capability ratio, the farther off center the process is operating, the more likely it is to produce unacceptable parts. This adjustment is represented by which symbol? µ λ k P None of the above
k
A control chart that is constructed using a proportion is called a/an... x̄ chart R-chart p-chart s-chart None of the above
p-chart
With respect to control chart logic, processes performed include some variation is called? Target Variability Confidence Quality None of the above
Variability
Statistically, 6s performance produces fewer than _____ defects per million opportunities for an error for defect. 5.6 6 3.4 4 None of the above
3.4
A control chart that is constructed using a mean is called a/an... x̄ chart R-chart p-chart s-chart None of the above
x̄ chart
You need to evaluate services quality a little differently than you evaluate product quality. True or False
True
Which "Quality of Product" dimension would you be assessing when asking the question, "Does the product look, sounds, taste, or smell the way it should?" Serviceability Perception Conformance Features Aesthetics
Aesthetics
Which of the following are potential sources of variation in the Ishikawa cause-and-effect diagram? People Methods Machines Materials All of the above Only b and c
All of the above
Which of the following indicate that a process is out of control? A single point plots outside the control limits Two out of the three successive points are on the same side of the centerline and farther and 2 from it A run of eight in a row are on the same side of the centerline Any consistent or persistent pattern All of the above
All of the above
What is the process capability ratio (Cp)? Compares acceptable tolerances (normally set by engineers) with the process' actual variation so you can assess the process' ability to achieve required quality levels Process used to fill orders for quantities less than a full case requiring orders to be picked from a case or similar container Reduces the process variation to achieve near-flawless quality Measures the variation in output and sets control limits based on observations of variations arising from common causes None of the above
Compares acceptable tolerances (normally set by engineers) with the process' actual variation so you can assess the process' ability to achieve required quality levels
With respect to control chart logic, controls limits based on the level of confidence you want to have the process perform at is called? Target Variability Confidence Quality None of the above
Confidenc
Which "Quality of Product" dimension would you be assessing when asking the question, "Does the product conform to design specifications?" Reliability Durability Serviceability Performance Conformance
Conformance
Factors that tend to reduce the need for inventory include Decreasing SKU cost. Increasing supply lead times. Increasing number of new SKUs. Decreasing supply uncertainty.
Decreasing supply uncertainty.
Inventory strategy should Depend on a company's competitive goals. Focus on keeping lots of inventory. No change over time. Avoid running out at all cost.
Depend on a company's competitive goals.
Which "Quality of Service" dimension would you be assessing when asking the question, "How well does the service provider provide caring, individualized attention to its customers?" Assurance Empathy Tangibles Reliability Responsiveness
Empathy
The Ishikawa cause-and-effect diagram is also known as the Ishi's quality diagram Fishbone diagram Pareto diagram Push back diagram None of the above
Fishbone diagram
By investing in prevention and appraisal costs, your real goals is what? Approved suppliers for doing business Understand and computerize the human thought process Identify and eliminate the causes of problems before they occur Refer to the lowest level of division for a process or a product None of the above
Identify and eliminate the causes of problems before they occur
What are the key activities in logistics? Movement, storage, and processing Returns, reuse, and recycling Managing customer payments, returns, and credits All of the above are equally important None of the above apply
Movement, storage, and processing
The International Organization for Standardization (ISO) built its quality certification ISO 9000 on which core principles? Total Quality Management (TQM) Automated Manifest Systems (AMS) Automated Storage/Retrieval System (AS/RS) Business Continuity Planning (BCP) None of the above
None of the above
Cycle inventory is most closely associate with Order quantities Demand growth. Unreliable suppliers. Inventory in transit
Order quantities
Which "Quality of Product" dimension would you be assessing when asking the question, "For any dimension that cannot be observed directly, does the product seem like a high-quality product?" Features Perception Aesthetics Conformance Serviceability
Perception
Which "Quality of Product" dimension would you be assessing when asking the question, "Does the product do what you want it to do?" Serviceability Performance Conformance Durability Reliability
Performance
What are the four stems to E. Edward Deming's four-step continuous improvement processes? Stop, Review, Regroup, Start Review, Plan, Find, Repeat Plan, Do, Check, Act Check, Repeat, Reassess, Act None of the above
Plan, Do, Check, Act
The total-cost-of quality framework breaks out quality costs into which four categories Internal failure costs, appraisal costs, preventions costs, accreditation costs Prevention costs, appraisal costs, Internal failure costs, external failure costs Appraisal costs, external failure costs, accreditation costs, aggregate costs Accreditation costs, routing costs, external failure costs None of the above
Prevention costs, appraisal costs, Internal failure costs, external failure costs
Visibility is a critical aspect in which of the following key logistics activities? Processing Value-added Rail Returns and reuse None of the above
Processing
Which "Quality of Product" dimension would you be assessing when asking the question, "Does the product consistently perform as it is supposed to over time?" Reliability Performance Conformance Serviceability Durability
Reliability
Which "Quality of Service" dimension would you be assessing when asking the question, "How dependably can the service provider provide promised service?" Tangibles Assurance Reliability Responsiveness Empathy
Reliability
Reasons to keep inventory include Responding to uncertain demand. Making sure bad parts never slow you down. Filling empty warehouses. Keeping people busy.
Responding to uncertain demand.
Which "Quality of Service" dimension would you be assessing when asking the question, "How willing, able, and promptly is the service provider to help you?" Reliability Tangibles Responsiveness Empathy Assurance
Responsiveness
Which of the following are NOT among the seven rights of Logistics? Right time Right place Right cost Right transportation mode All of the above are part of the seven rights
Right transportation mode
If you want to be six-sigma certified, what do you need to do? Show you are an effective project manager and have participated in quality-improvement projects Successfully complete the Kukkiwon's 3rd Taekwondo Promotion test Sell additional products to a customer during a sales call Enforce regulations by the US Manufacturing Association None of the above
Show you are an effective project manager and have participated in quality-improvement projects
The tool that monitors processes and keeps them production high-quality products is? Process capability ratio Statistical process control Returns defect analysis Reengineering None of the above
Statistical process control
Which of the following is not a dimension of quality? Performance Features Conformance Reliability Traceability None of the above
Traceability
In the process capability ratio, if the upper and lower specification limits are greater than the process variability, you can be pretty confident that the process can achieve your desired quality level. True or False
True
Inventory performance can be improved by Storing an SKU in multiple locations at the same time. Managing all SKUs the same way. Using forecasting effectively. Having as large a warehouse as possible.
Using forecasting effectively.
Six Sigma is built on which very critical fact? Mannerisms are inherent in human acts during the purchasing process Capacity should be understood and defined for each level in the organization It takes time for cash to flow back into the company after it has been spent Variability in a process produces defects, errors, and waste None of the above
Variability in a process produces defects, errors, and waste
What does a process capability analysis allow you to do? Meets adjustments to change or switchover the type of products produced on a manufacturing line Verify that your process is capable of performing at your desired quality level Help make the decision for which carrier to use for a service route Allows you to visualize the status of inventory in the supply chain from some point upstream None of the above
Verify that your process is capable of performing at your desired quality level
What is guardbanding? Capturing mutual agreements on the work activity deliverables When engineers set product specifications tighter than they need to be Keeping the workplace clean and neat by making cleaning a daily activity A practice that uses point-of-sale scanner data to manage payment, promotion and replenishment None of the above
When engineers set product specifications tighter than they need to be
During WWII, ___________ increased the emphasis on purchasing. a. Materials shortages b. Women in the workforce c. Rationing of food supplies d. Lean management e. All of the above
a. Materials shortages
During which step of the strategic sourcing process would you identify potential suppliers? a. Analyze b. Plan c. Source d. Reconcile and pay e. Procure
a. Analyze
Supplier segmentation using the strategic sourcing matrix occurs during which step of the strategic sourcing process? a. Analyze b. Plan c. Source d. Reconcile and pay e. Procure
a. Analyze
A control chart that measures attributes measures what? a. Characteristic that has a discrete value and can be counted b. Characteristics that can be measured on a continuum of value like weight and volume c. Characteristics that are soft and pliable d. Characteristics that can be controlled e. All of the above f. Only a and c
a. Characteristic that has a discrete value and can be counted
A control chart that measures variables measures what? a. Characteristic that has a discrete value and can be counted b. Characteristics that can be measured on a continuum of value like weight and volume c. Characteristics that are soft and pliable d. Characteristics that can be controlled e. All of the above f. Only a and c
a. Characteristic that has a discrete value and can be counted
When it comes to negotiations, it is important to know that: a. Knowledge is power b. Contracts are always very complex and time consuming c. Getting the best price is paramount d. All of the above e. Only a and b f. None of the above
a. Knowledge is power
Which of the following is not a step in the strategic sourcing process? a. Analyze b. Plan c. Source d. Reconcile and pay e. Procure f. All of the above are steps in the strategic sourcing process
b. Plan
What are the five activities of the SCOR model? a. Plan, Service, Manufacture, Determine, Respond b. Plan, Source, Make, Deliver, Return c. Prepare, Source, Make, Determine, Respond d. Prepare, Service, Make, Deliver, Respond e. None of the above
b. Plan, Source, Make, Deliver, Return
How is the statistical concept of six sigma used? a. Consistently meets established quality, cost, delivery, financial and cost objectives b. Uses tools to help you identify which type of variation is present in your processes as well as how to address that variation to improve your process c. Meets adjustments to change or switchover the type of products produced on a manufacturing line d. Partners between distribution channel members that changes the traditional replenishment process from distribution-generated purchase orders e. All of the above f. Both b and d
b. Uses tools to help you identify which type of variation is present in your processes as well as how to address that variation to improve your process
During which step of the strategic sourcing process do you actual purchase items you have contracted for? a. Bid/ Negotiate and contract b. Plan c. Source d. Reconcile and pay e. Procure f. None of the above
c. Source
When considering outsourcing, you should evaluate which of the follow factors? a. Whether the item is strategically important to you b. How good you are at making the item versus how good suppliers are at making it c. The total cost of ownership of the item compared to the cost to make the item internally d. All of the above e. Only a and b f. Only a and c
d. All of the above
Potential supplier contributions from ESI include: a. Providing feedback on feasibility of materials and processes b. Suggesting alternatives c. Improve cost d. Improve lead time e. All of the above f. Only b and d
e. All of the above
Which of the following is a definition of Quality? a. Conformance to specifications b. Whether or not a product or service lives up to customer expectations c. The act of making a group or individual responsible for certain activities or outcomes d. All of the above e. Only a and b
e. Only a and b
Reasons for early supplier involvement is: a. To better train the supplier for the future b. To utilize the supplier's innovative ideas c. Because the most cost and functionality is determined during design. d. All of the above e. Only b and c f. None of the above
e. Only b and c
Which of the following statements is correct? a. Landed costs include TCO b. TCO includes landed costs c. You should use landed cost analysis for all purchase decisions d. Only a and c e. Only b and c f. none of the above
e. Only b and c
Statistical process control charts measure what? a. Variables b. Attributes c. Rates d. Quality e. All of the above f. Only a and b
f. Only a and b
As part of supplier integration: a. You help finance the supplier's supply chain b. You share information on your plans with the supplier c. You communicate seamlessly d. You build in contractual yearly price reductions e. All of the above f. Only b and c g. Only a and d
f. Only b and c
