P&O Final
E
For which corporate strategy(ies) should supply chain inventory be minimized? A) low cost B) response C) differentiation D) low cost and response E) low cost and differentiation
True
Use of a diversified supply base represents one of the most common supply chain risk reduction tactics for several different supply chain risk categories.
C
Which one of the following distribution systems offers quickness and reliability when emergency supplies are needed overseas? a. trucking b. railroads c. airfreight d. waterways e. pipelines
e
A Six Sigma program has how many defects per million? a) 6 times the standard deviation b) 34 c) 2700 d) 1000 e) 3.4
True
A fast-food retailer that acquired a spice manufacturer would be practicing backward integration.
B
A furniture maker has delivered a dining set directly to the end consumer rather than to the furniture store. The furniture maker is practicing which of the following? A) postponement B) drop shipping C) channel assembly D) passing the buck E) float reduction
b
A quality loss function includes all of the following costs EXCEPT: a) costs to society. b) sales costs. c) the cost of customer dissatisfaction. d) the cost of scrap and repair. e) inspection, warranty, and service costs.
True
Channel assembly, which sends components and modules to be assembled by a distributor, treats these distributors as manufacturing partners.
False
Conforming to standards is the focus of the product-based definition of quality. - True - False
True
Continuous improvement is based on the philosophy that any aspect of an operation can be improved. - True - False
False
Designing distribution networks to meet customer expectations suggests three criteria: (1) rapid response, (2) cost, and (3) service. (T/F)
False
Even though a firm may have a low cost strategy, supply-chain strategy can select suppliers primarily on response or differentiation.
C
In what type of auction does a buyer initiate the process by submitting a description of the desired product or service? A) traditional B) buyer C) Dutch D) French E) Mexican
False
Keiretsu refers to a company coalition that is part collaboration, part purchasing from many suppliers, and part vertical integration.
True
Line employees need the knowledge of TQM tools. - True - False
b
One of Britain's largest children's hospitals working with Ferrari Racing is an example of: a) Taguchi concepts. b) external benchmarking. c) corporate responsibility. d) internal benchmarking. e) employee empowerment.
True
One of the ways that just-in-time (or JIT) influences quality is that by reducing inventory, bad quality is exposed. - True - False
True
Outsourcing is a form of specialization that allows the outsourcing firm to focus on its key success factors. (T/F)
e
PDCA is most often applied with regard to which aspect of TQM? a)Six Sigma b) benchmarking c) JIT d) employee empowerment e) continuous improvement
d
Suppose that a firm has historically been achieving "Three Sigma" quality. If the firm later changes its quality management practices such that it begins to achieve "Six Sigma" quality, which of the following phenomena will result? a) The average number of defects will be cut by 99.87%. b) The average number of defects will be cut by 99.9997%. c) The specification limits will be moved twice as far from the mean. d) The average number of defects will be cut in half. e) The average number of defects will be cut by 99.73%.
True
The phrase Six Sigma has two meanings. One is statistical, referring to an extremely high process, product, or service capability; the other is a comprehensive system for achieving and sustaining business success. - True - False
c
The process of identifying other organizations that are best at some facet of your operations and then modeling your organization after them is known as: a) employee empowerment. b) continuous improvement. c) benchmarking. d) patent infringement. e) copycatting.
e
Total quality management emphasizes: a) ISO 14000 certification. b) a process where mostly statisticians get involved. c) a system where strong managers are the only decision makers. d) the responsibility of the quality control staff to identify and solve all quality-related problems. e) a commitment to quality that goes beyond internal company issues to suppliers and customers
D
What are the three classic types of negotiation strategies? A) supplier evaluation, supplier development, and supplier selection B) Theory X, Theory Y, and Theory Z C) many suppliers, few suppliers, and keiretsu D) cost-based price model, market-based price model, and competitive bidding E) traditional auctions, reverse auctions, and online exchanges
A
What is the practice of keeping a product generic as long as possible before customizing? A) postponement B) keiretsu C) vendor-managed inventory D) forward integration E) backward integration
b
Which of the determinants of service quality involves performing the service right the first time? a) courtesy b) reliability c) responsiveness d) credibility e) access
E
Which of the following best describes Vizio's sourcing strategy? A) few suppliers B) keiretsu C) joint venture D) vertical integration E) virtual company
A
Which of the following is a primary supplier selection criterion for a firm pursuing a differentiation strategy? A) product development skills B) cost C) capacity D) speed E) flexibility
d
Which of the following statements is NOT true? a) Inferior products harm a firm's profitability and a nation's balance of payments. b) Self-promotion is not a substitute for quality products. c) Legislation such as the Consumer Product Safety Act sets and enforces product standards by banning products that do not reach those standards. d) Product liability transfers from the manufacturer to the retailer once the retailer accepts delivery of the product. e) Quality, be it good or bad;will show up in perceptions about a firm's new products, employment practices, and supplier relations.
a
Which of the following statements regarding "Six Sigma" is TRUE? a) Six Sigma certification is granted by the International Standards Organization (ISO). b) Six Sigma means that about 94 percent of a firm's output is free of defects. c) The term has two distinct meanings;one is statistical; the other is a comprehensive quality system. d) The Six Sigma program was developed by Toyota in the 1970s. e) The Six Sigma program is for manufacturing firms and is not applicable to services.