MGT Midterm

2. Which of the following is not a process type commonly considered in making products or delivering services?

Subcontracting

17. Assignable variation is a variation whose cause can be identified.

Assignable

12. The range chart (R-chart) is most likely to detect a change in

variability.

3. Which of the following is least important as a consideration for a firm at the beginning of a supply chain?

Access to end consumers

18. Which of these is not a cost of quality?

Design cost

1. A c-chart is used for

number of defects per unit.

32. Lost production time, scrap, and rework are examples of

internal failure costs.

19. The key questions in the process selection task are:

(II) How much variety will be imposed on the process? (IV) At what volume will the process need to operate?

26. Your selection of a layout format for your facility depends on: (Choose all that apply)

Available space Production volume the design of the process the inventory flow.

21. In which type of processing system would gasoline be produced from crude oil?

Continuous

4. Which of the following is the last step in the procedure for making location decisions?

Evaluate alternatives and make a selection.

4. Which is not a cost of quality?

Extended service contract costs

10. The purpose of statistical process control is to ensure that historical output is random.

False

11. A c-chart is used to monitor the total number of defectives in the output of a process.

False

13. Tolerances represent the control limits we use on the charts.

False

14. Processes that are in control eliminate variations.

False

19. Design-for-Six-Sigma programs offer a set of quality standards accepted by all industries.

False

20. In general, job-shop systems have a lower unit cost than continuous systems do because continuous systems use costly specialized equipment.

False

20. The Baldrige Award can only be won by manufacturing organizations.

False

22. Broadly defined, quality refers to the ability of a product or service to occasionally meet or exceed customer expectations.

False

23. A job-shop processing system generally requires less-skilled workers than a continuous processing system.

False

29. Cost of inspectors, testing, test equipment, and labs are examples of prevention costs.

False

3. Avoiding bottlenecks is the primary goal of product design.

False

3. High performance and low prices are both considered to be dimensions of quality.

False

33. An organization achieves quality by consistently meeting its competitors' standards.

False

5. Continuous processing is the best way to produce customized output.

False

5. Range charts are used mainly with attribute data.

False

6. Quality at the source means returning all defects to the source—our vendors.

False

8. A process that exhibits random variability would be judged to be out of control.

False

8. Based on the characteristics of your product, you might adopt a make-to-stock strategy or a make-to-order strategy.

False

9. Web-based, retail businesses should be located near the customer to reduce their long distance phone charges.

False

18. What is it about job shops that make them appropriate for products in the introductory phase of their life cycle?

Flexibility

6. Which of the following circumstances would be least likely to lead to a need for a new location?

Growth in demand that is leading to greater utilization of existing capacity

17. Total Quality Management: (Choose all that apply):

Is managed proactively Focuses on the customer

1. Which of the following process types would be most likely to be used in the introductory phase of a product's life cycle?

Job shop

13. Which type of processing system tends to produce the most product variety?

Job shop

7. A low-volume process that produces customized products is called a:

Job shop

6. A type of process that creates one-of-a-kind products is: (Choose all that apply)

Job shop, Project

28. The key to running an efficient assembly line is:

Line balancing

2. Studies on a bottle-filling machine indicate that it fills bottles to a mean of 16 ounces with a standard deviation of 0.10 ounces. What is the process specification, assuming the Cpk index of 1?

Lower spec = 15.7 ounces and upper spec = 16.3 ounces

27. Six-sigma programs involve both _____ and _____ components.

Managerial; technical

1. Which of the following is not an element of TQM?

Quality management as a specialized function within the firm

26. This is the degree to which goods and services conform to the intent of the designers.

Quality of conformance

24. Which of the following process types would be most likely to be used in the maturity phase of a product's life cycle?

Repetitive

11. In which type of operation are you likely to see, at most, only minor variations in the product or service being produced using the same process and the same equipment?

Repetitive production

11. What other factors might be considered in choosing between expansions and subcontracting?

Subcontracting costs will be known with greater certainty Subcontracting provides a secondary (backup) source of supply Expansion offers more control over operations

What would the total annual costs be for the Phoenix location with an annual output of 10,000 units?

Total cost = Fixed cost + (Variable cost × quantity)= 140,000 + (16 x 10,000)= $300,000

10. Quality of conformance refers to the degree to which goods and services conform to the intent of the designers as documented in the specifications.

True

11. The primary difference between internal failures and external failures is time and place of discovery of the failure.

True

14. A possible disadvantage of a product layout is an inflexible system.

True

15. A p-chart is used to monitor the fraction of defectives in the output of a process.

True

16. If a point on a control chart falls outside one of the control limits, this suggests that the process output is nonrandom and should be investigated.

True

2. For service and retail stores, a prime factor in location analysis is customer access.

True

21. Three key philosophies in TQM are continuous improvement, involvement of everyone in the organization, and customer satisfaction.

True

23. Quality of design refers to the intention of the designers to include or exclude certain features in a product or service based on marketing and other information.

True

24. Reducing the variability in our product or service is an important key to quality.

True

27. The assembly line layout is sometimes called a product layout because the focus here is on the product itself as it moves through the factory.

True

28. The customer is the focal point and customer satisfaction is the driving force in quality management.

True

29. Continuous production systems are typically very rigid and costly to change.

True

3. Attribute data are counted, variable data are measured.

True

30. According to Deming, it is the systems that management puts into place that are primarily responsible for poor quality, not employees.

True

4. As a general rule, continuous processing systems produce products with very little variety.

True

4. The sampling distribution can be assumed to be approximately normal even when the underlying process distribution is not normally distributed.

True

7. For service organizations, the dominant factors in location analysis usually are market-related.

True

8. Total quality management attempts to involve everyone in an organization in the effort to achieve quality.

True

9. Product layouts typically achieve high utilization of labor and equipment.

True

5. The Deming Prize was established by the

Union of Japanese Scientists.

12. A quality circle is

a group of employees who meet to discuss ways of improving products or processes.

8. When service firms such as retailers or banks make growth-spurred location decisions, typically these involve

adding new locations rather than expanding existing ones.

7. Costs of inspectors, testing, test equipment, and labs are examples of

appraisal costs.

16. The process of identifying other organizations that are best at some facet of your operations, analyzing your performance versus theirs in order to establish a standard against which to judge performance, and identifying a model for learning how to improve is known as

benchmarking.

22. Key aspects of the process selection challenge include

capital intensity and process flexibility.

9. The quality tool that resembles a "fishbone" is

cause-and-effect diagrams.

13. The tool that is useful in the collection and organization of data is a

check sheet.

16. The type of processing system which is used for highly standardized products is

continuous

2. A tool that uses time-ordered values of a sample statistic to help detect the presence of correctable causes of variation in a process is a (n)

control chart.

7. A time-ordered plot of representative sample statistics is called a(n)

control chart.

18. The purpose of control charts is to

distinguish between random variation and assignable variation in the process.

31. Warranty service, processing of complaints, and costs of litigation are examples of

external failure costs

5. When a location evaluation includes both quantitative and qualitative inputs, a technique that can be used is

factor rating. (Factor rating approaches can incorporate both quantitative and qualitative considerations.)

17. The type of layout in which workers, materials, and equipment are moved to the product as needed is

fixed-position

25. An operations strategy for process selection should recognize that

flexibility is not always the best choice.

12. A group of machines including supervisory computer control, automatic material handling, and possibly robots is called a

flexible manufacturing system.

25. The tool that is useful in documenting the current process is a

flowchart.

10. Among the potential disadvantages of having global operations is/are

low labor productivity.

6. A control chart used to monitor the fraction of defectives generated by a process is the

p-chart.

15. Quality planning and administration, quality training, and quality control procedures are examples of

prevention costs.

15. The type of layout which features departments or other functional groupings in which similar activities are performed is

process

14. A tool that is not used for quality management is a

redesign.

9. A point which is outside of the lower control limit on an R-chart

should be investigated because an assignable cause of variation might be present