OM Exam 2
Which of the determinants of service quality involves having the customer's best interests at heart? A: Credibility B: Courtesy C: Responsiveness
A: Credibility
Which of the four major categories of quality costs is particularly hard to quantify? A: External failure costs B: Internal failure costs C: Prevention costs
A: External failure costs
Which of the following statements is NOT true regarding location decisions? A: Once management is committed to a specific location, many costs become relatively easy to reduce. B: Location often has the power to make or break a company's business strategy. C: Location decisions are important because location has a major impact on the overall risk and profit of the company. D: Location decisions to support a low-cost strategy require particularly careful consideration.
A: Once management is committed to a specific location, many costs become relatively easy to reduce.
Which of the following is false regarding control charts? A: Values above the upper control limit always imply that the product's quality is exceeding expectations. B: control charts are built so that new data can be quickly compared to past performance data. C: Control charts graphically present data.
A: Values above the upper control limit always imply that the product's quality is exceeding expectations
The difference between selling price and variable cost is called A: contribution. B: the bottleneck. C: fixed cost. D: the break-even point.
A: contribution
Self-checkout at a grocery store is an example of: A: customer participation in service delivery. B: customer participation in service design. C: complete automation.
A: customer participation in the service delivery
One method used to determine a product's total environmental impact from conversion of inputs through production and to disposal is __________. A: life cycle assessment B :environmental scanning C: QFD
A: life cycle assessment
An umbrella of software programs that may include CAD/CAM, DFMA, product routing, maintenance, and other product concerns is called __________. A: product life cycle management software B: material requirements planning software C: enterprise management resource software
A: product life cycle management software
Listing products in descending order of their individual dollar contribution to the firm is called A: product-by-value analysis. B: product life cycle. C: brainstorming. D: product decision.
A: product-by-value analysis
The role of decision trees in product design is __________. A: to calculate the expected value of each course of action B: to better understand the customers' wants C: to rank products in descending order of their dollar contribution to the firm
A: to calculate the expected value of each course of action
Moving a product from development to production is referred to as: A: transition to production. B: product development. C: product definition. D: product design.
A: transition to production
The objective of layout strategy is to A: improve employee morale. B: develop an effective and efficient layout that will meet the firm's competitive requirements. C: improve the flow of information. D: improve customer interaction.
B: develop an effective and efficient layout that will meet the firm's competitive requirements.
Which of the following regions of a process chain includes the process steps that involve interaction between participants? A: independent processing region B: direct interaction region C: substitute interaction region D: surrogate interaction region
B: direct interaction region
Which of the following is NOT an example of technology's impact on the financial services industry? A: debit cards B: Internet stock trading C: RFID D: electronic funds transfer
C: RFID
A product-oriented layout A: addresses the layout requirements of large, bulky projects such as ships and buildings. B: deals with low-volume, high-variety production. C: is organized around products or families of similar high-volume, low variety production. D: allocates shelf space and responds to customer behavior.
C: is organized around products or families of similar high-volume, low variety production.
What are groups or batches of parts processed together? A: customized lots B: work cells C: job lots D: cross-docking jobs
C: jobs lots
What is an analysis of environmental impacts of products from the design stage through end-of-life? A: product-by-value analysis B: value analysis C: life cycle assessment D: process-chain-network analysis
C: life cycle assessment
A route sheet: A: is a correction or modification of an engineering drawing or bill of materials. B: is an instruction to make a given quantity of a particular item. C: lists the operations necessary to produce the component. D: shows in schematic form how a product is assembled.
C: lists the operations necessary to produce the component
Process Capability A: is assured when the process is statistically in control. B: exists only in theory; it cannot be measured. C: means that the natural variation of the process must be small enough to produce products that meet the standard. D: exists when CPK is less than 1.0.
C: means that the natural variation of the process must be small enough to produce products that meet the standard
What is analysis that focuses on the ways in which processes can be designed to optimize interaction between firms and their customers? A: value engineering B: value analysis C: process-chain-network analysis D: product-by-value analysis
C: process-chain-network analysis
Which of the following is NOT an example of tangible costs? A: utilities B: depreciation C: public transportation facilities D: labor
C: public transportation facilities
Which of the following is NOT one of the tasks of random stocking systems? A: Sequencing items to minimize the travel time required to "pick" orders. B: Maintaining accurate records of existing inventory and its locations. C: Maintaining a list of "open" locations. D: Assigning certain items or classes of items to particular warehouse areas so that the total distance traveled within the warehouse is maximized.
D: Assigning certain items or classes of items to particular warehouse areas so that the total distance traveled within the warehouse is maximized.
Which of the following statements is NOT true regarding decision trees? A: A decision tree is a great tool for thinking through a problem. B: Decision trees are particularly helpful when there are a series of decisions and various outcomes that lead to subsequent decisions followed by other outcomes. C: Decision trees can be used for other management problems besides product design. D: Decision trees should only be used for new-product decisions when no uncertainty is present.
D: Decision trees should only be used for new-product decisions when no uncertainty is present
Which of the following is NOT one of the techniques for building employee empowerment? A: Develop open, supportive supervisors. B: Build high-morale organizations. C: Build communication networks that include employees. D: Eliminate formal organization structures such as teams and quality circles.
D: Eliminate formal organization structures such as teams and quality circles
A c-chart is based on the A: Erlang distribution. B: binomial distribution. C: normal distribution. D: Poisson distribution.
D: Poisson distribution
What is the theoretical maximum output of a system in a given period under ideal conditions? A: utilization B: effective capacity C: efficiency D: design capacity
D: design capacity
When should a product strategy focus on forecasting capacity requirements? A: At the growth stage of the product life cycle B: At the maturity sage of the product life cycle C: At the decline stage of the product life cycle
A. At the growth stage of the product life cycle
A six sigma program has how many defects per million? A: 3.4 B: 34 C: 6 times the standard deviation
A: 3.4
Companies with the highest levels of quality are about how many times more productive than their competitors with the lowest quality levels? A: 5 B: 4 C: 3
A: 5
Which of the following statements is NOT true regarding a bill of material (BOM)? A: A BOM cannot be referenced on other bills of material. B: A BOM lists the quantity of each coponent required to make one unit of a product. C: A BOM lists the hierarchy of components and their description. D: In the food-service industry, BOMs manifest themselves in portion-control standards.
A: A BOM cannot be referenced on other bills of material
What is an electronically guided and controlled cart used to move materials? A: AGV B: RFID C: AIS D: CNC
A: AGV
Which of the following is not a typical inspection point? A: After a costly process B: Before the product is shipped C: When production or service is complete
A: After a costly process
Which of the following shows in schematic form how a product is assembled? A: An assembly chart B: A route sheet C: An engineering drawing
A: An assembly chart
Which of the following is true about the ISO 9000 certification? A: Certified organizations must be audited every three years B: It deals with environmental management. C: One of the core-elements is a life-cycle assessment.
A: Certified organizations must be audited every three years
Which of the following is a characteristic of the maturity phase of the product life cycle? A: Competitors are well established. B: Product designs begin to stabilize. C: Products are "fine-tuned." D: Products are considered for termination.
A: Competitors are well established
Which of the following is a characteristic of the maturity phase of the product life cycle? A: Competitors are well established. B: Products are "fine-tuned." C: Products are considered for termination. D: Product designs begin to stabilize.
A: Competitors are well established
Which of the following is characteristic of the maturity phase? A: Competitors are well established. B: Products are considered for termination. C: Product development costs increase.
A: Competitors are well established
PDCA is most often applied to which aspect of TQM? A: Continuous improvement B: Employee empowerment C: Benchmarking
A: Continuous improvement
Which of the following is not a service design technique used to reduce cost? A: Increasing customer interaction B: Delaying customization C: Modularizing the product
A: Increasing customer interaction
Which of the following is NOT a valid principle of bottleneck management? A: Increasing the capacity of a non-bottleneck station increases the capacity for the whole system. B: Lost time at the bottleneck represents lost capacity for the whole system. C: Increasing the capacity of a non-bottleneck station is a mirage. D: Release work orders to the system at the pace set by the bottleneck's capacity.
A: Increasing the capacity of a non-bottleneck station increases the capacity for the whole system
In which of the four major categories of quality costs would the costs associated with scrap and rework belong? A: Internal failure B: Prevention C: External failure
A: Internal failure
In which stage of the product life cycle should product strategy focus on process modifications as the product is being "fine-tuned" for the market? A: Introduction B: Growth C: Maturity
A: Introduction
Which of the following is true regarding computer-aided design? A: It is the use of computers to design products and prepare engineering documentation. B: It is too expensive to use in most manufacturing and design settings. C: It results in longer development cycles because you have to wait for computer algorithms to run.
A: It is the use of computers to design products and prepare engineering documentation
Which of the following is an external product development strategy? A: Joint venture B: Migrations of existing products C: Enhancements of existing products
A: Joint venture
Which of the following statements is NOT true regarding joint ventures? A: Joint ventures are more likely to work when the risks are unknown. B: Ownership can be 50-50, or one owner can assume a larger portion to ensure tighter control. C: Joint ventures are firms establishing joint ownership to pursue new products or markets. D: Joint ventures are usually between just two firms.
A: Joint ventures are more likely to work when the risks are unknown
Which of the following product development strategies has the highest risk? A: New internally developed products B: Joint ventures C: Alliances
A: New internally developed products
Which of the following statements is NOT true regarding process redesign? A: Process redesign is also called process reinvention. B: Process redesign also focuses on those activities that cross functional lines. C: Effective process redesign works only if the basic process and its objectives are reexamined. D: Process redesign is also called process reengineering.
A: Process redesign is also called process reinvention
__________ is used to rank a company's products to determine which products represent the best use of the firm's resources, or perhaps, to determine which products are to be eliminated. A: Product-by-value analysis B: Value analysis C: Value engineering
A: Product-by-value analysis
What information is contained in the roof of the House of Quality? A: Relationship between a line of products and customer wants B: How well a company meets the customer's wants C: A competitive assessment of the product line
A: Relationship between a line of products and customer wants
Costs of dissatisfaction, repair costs, and warranty costs are elements of cost in the __________. A: Taguchi Quality Loss Function B: Pareto chart C: PDCA
A: Taguchi Quality Loss Function
Which of the following statements is NOT true regarding the importance of the role that an operations manager plays in addressing service quality? A: The manager may be able to influence the quality of the service but has little control over the customers' expectation. B: Managers must expect exceptions. C: The operations manager should realize that the customer' expectations are the standard against which the service is judged. D: The tangible component of many services is important.
A: The manager may be able to influence the quality of the service but has little control over the customers' expectations.
Which of the following procedures is TRUE regarding the construction of a decision tree for product design? A: The possible alternatives include an alternative of "doing nothing." B: Be sure that all possible alternatives and states of nature (beginning on the right and moving left) are included in the tree. C: Payoffs are entered at the beginning of the appropriate branch. D: To determine the expected value of each course of action, we need to start at the beginning of the tree and work toward the end of the tree.
A: The possible alternatives include an alternative of "doing nothing"
For a full-time college student, which of the following moments of truth exemplifies the customer's standard expectations? A: Your advisor was competent, helpful, and understanding B: Your advisor made you wait, even though you had an appointment C: Your advisor offered to work with you after regular work hours
A: Your advisor was competent, helpful and understanding
A production manager at a pottery factory has noticed that about 70 percent of defects result from impurities in raw materials, 15 percent result from human error, 10 percent from machine malfunctions, and 5 percent from a variety of other causes. This manager is most likely using __________. A: a Pareto chart B: a Taguchi Quality Loss Function C: a cause-and-effect diagram
A: a Pareto chart
Total quality management emphasizes __________. A: a commitment to quality that goes beyond internal company issues to suppliers and customers B: a system where strong managers are the only decision makers C: the responsibility of the quality control staff to identify and solve all quality-related problems
A: a commitment to quality that goes beyond internal company issues to suppliers and customers
The requirements of work cells do NOT include A: a high level of training and a low level of flexibility. B: testing at each station in the cell. C: being self-contained, with its own equipment and resources. D: identification of families of products.
A: a high level of training and a low level of flexibility
"Making it right the first time" is __________. A: a manufacturing-based definition of quality B: a product-based definition of quality C: a user-based definition of quality
A: a manufacturing-based definition of quality
A process focus is A: a production facility organized around specific activities. B: a rapid, low-cost production system that caters to constantly changing unique customer desires. C: organized around products. D: based on the classical assembly line.
A: a production facility organized around specific activities
A route sheet provides: A: A sequence of operations necessary to produce the component B: A schematic showing how the product is assembled C: A drawing that represents the product specifications including materials and finishes
A: a sequence of operations necessary to produce the component
Quality "lies in the eyes of the beholder" is __________. A: a user-based definition of quality B: a manufacturing-based definition of quality C: a product-based definition of quality
A: a user-based definition of quality
When a customer places a request for a product or service with a producer, __________. A: a work order is created B: a decision tree is created C: an assembly chart is created
A: a work order is created
A fixed-position layout A: addresses the layout requirements of large, bulky, projects such as ships and buildings. B: seeks the best personnel and machine utilization in repetitive or continuous production. C: allocates shelf space and responds to customer behavior. D: groups workers, their equipment, and spaces/offices to provide for movement of information.
A: addresses the layout requirements of large, bulky, projects such as ships and buildings
Inspections should NOT take place A: after costly or irreversible processes. B: at your supplier's plant while the supplier is producing. C: during the step-by-step production process. D: at your facility upon receipt of goods from your supplier.
A: after costly or irreversible processes
What are cooperative agreements that allow firms to remain independent, but pursue strategies consistent with their individual missions? A: alliances B: enhancements and migration C: acquisitions D: joint ventures
A: alliances
An investment that generates a series of uniform and equal cash amounts is referred as A: an annuity. B: future value. C: cash flow. D: net present value.
A: an annuity
The dimensions, tolerances, materials, and finishes of a component are typically shown on: A: an engineering drawing B: an assembly chart C: a route sheet
A: an engineering chart
What is a means of finding the point, in dollars and units, at which costs equal revenues? A: break-even analysis B: bottleneck analysis C: zero-sum analysis D: capacity analysis
A: break-even analysis
A customer service manager at a retail clothing store has collected numerous customer complaints from the forms they fill out on merchandise returns. To analyze trends of patterns in these returns, she has organized these complaints into a small number of sources or factors. This is most closely related to the __________ tool of TQM. A: cause-and-effect diagram B: Taguchi Quality Loss Function C: scatter diagrams
A: cause-and-effect diagram
A successful TQM program incorporates all of the following except __________. A: centralized decision-making authority B: benchmarking C: continuous improvement
A: centralized decision-making authority
Product design may be accomplished more quickly through the use of cross-functional teams that work on various aspects of the design at the same time. This approach is known as __________. A: concurrent engineering B: the house of quality C: modular designs
A: concurrent engineering
Managing quality helps build successful strategies of A: differentiation, low cost and response. B: differentiation, time and response. C: differentiation, time and service. D: differentiation, low cost and service.
A: differentiation, low cost and response
Value analysis takes place: A: during the production process when it is clear the new product is a success. B: when the product is first conceived. C: when the product cost is very low
A: during the production process when it is clear the new product is a success
Building high-morale organizations and building communication networks that include employees are both elements of __________. A: employee empowerment B: Taguchi methods C: ISO 9000
A: employee empowerment
What does EMV stand for? A: expected monetary value B: expected maintenance volume C: enterprise management valuation D: expected machine valuation
A: expected monetary value
One of Britain's largest children's hospital's working with Ferrari Racing is an example of __________. A: external benchmarking B: Taguchi concepts C: internal benchmarking
A: external benchmarking
When using EMV for capacity planning situations, the state of nature usually is A: future demand or market favorability. B: level of inflation or interest rates. C: wage rates or equipment costs. D: average temperature or average rainfall.
A: future demand or market favorability
The "four Ms" of cause-and-effect diagrams are __________. A: material, machinery, manpower, and methods B: material, management, manpower, and motivation C: material, methods, manpower, and motivation
A: material, machinery, manpower, and methods
One hundred percent inspection A: means that every part is checked to see whether or not it is defective. B: is practical and an excellent fit for world-class manufacturers. C: means that only good parts will be shipped to a customer. D: catches all of the defective parts.
A: means that every part is checked to see whether or not it is defective
Bridget's Hamburger Stand uses only 7 ingredients but offers 15 different burgers. This process is known as __________. A: modular design B: robust design C: value analysis
A: modular design
When ordering a new zagflatz, customers must choose the style of three major components, each of which has about ten variations. This is an example of A: modular design. B: CAD. C: robust design. D: environmentally friendly design.
A: modular design
What is a means of determining the discounted value of a series of future cash receipts? A: net present value B: cash flow C: variable cost D: future value
A: net present value
Pareto charts are used to __________. A: organize errors, problems, or defects B: show material flow C: identify inspection points in a process
A: organize errors, problems, or defects
ISO 9000 seeks standardization in terms of __________. A: procedures to manage quality B: suppliers' specifications C: production procedures
A: procedures to manage quality
Which of the following measures the proportion of variation (3sigma) between the center of the process and the nearest specification limit? A: process capability index B: process capability ratio C: process range D: standard deviation of the process population
A: process capability index
What is a flowchart with time added on the horizontal axis? A: process mapping B: process chart C: CNC D: service blueprinting
A: process mapping
What is the most critical phase in product life cycle assessment? A: product design B: production process C: logistics D: product disposal
A: product design
Taguchi's quality loss function is based on a A: quadratic equation. B: negative exponential distribution. C: binomial distribution. D: linear equation.
A: quadratic equation
Which of the following determinants of service quality means the firm performs the service right the first time and that the firm honors its promises? A: reliability B: credibility C: responsiveness D: competence
A: reliability
What is a design that can be produced to requirements even with unfavorable conditions in the production process? A: robust design B: CAD C: DFMA D: modular design
A: robust design
Which of the following is a possible option to employ when demand exceeds capacity? A: schedule long lead times B: temporarily lay-off workers C: lower prices D: increase advertising expenditure
A: schedule long lead times
Which of the following is NOT a production technology that enhances production and productivity? A: service blueprinting B: automatic identification systems C: process control D: vision systems
A: service blueprinting
Which of the quadrants in the service process matrix has low labor intensity and low customization? A: service factory B: mass service C: professional service D: service shop
A: service factory
What is training and empowering frontline employees to solve a problem immediately? A: service recovery B: courtesy C: quality circle D: employee empowerment
A: service recovery
Group technology identifies components by a coding scheme that specifies the A: size, shape, and type of processing. B: shape and type of processing. C: size and shape. D: size and type of processing.
A: size, shape and type of processing
One result of concurrent engineering in product design is __________. A: speedier product development B: lower quality build C: higher customer demand
A: speedier product development
In the service industry, the crucial moment that exemplifies, enhances, or detracts from the customer's expectations is called __________. A: the moment of truth B: the payoff C: the product value moment
A: the moment of truth
Which of the following is a requirement to be able to compute expected monetary value? A: the probability of each state of nature is known B: the probability of each decision alternative is known C: each decision alternative needs at least two states of nature D: each state of nature is equally likely to occur
A: the probability of each state of nature is known
The change in cell-phone model life cycles from 2 years to under 6 months is the result of: A: time-based competition. B: value analysis. C: design for manufacture and assembly.
A: time-based competition
What is a review of successful products that takes place during the production process? A: value analysis B: LCA C: CAD D: virtual reality
A: value analysis
Which of the following is true regarding value engineering? A: Value engineering is oriented toward improvement of design. B: Value engineering is the same as value analysis. C: Value engineering occurs during production when it is clear the product is a success.
A: value engineering is oriented toward improvement of design
In many applications, human quality inspectors can be replaced effectively by A: vision systems. B: FMS. C: RFID tags. D: automated storage and retrieval systems.
A: vision systems
Which of the following arranges machinery and equipment to focus on production of a single product or group of related products? A: work-cell layout B: process-oriented layout C: product-oriented layout D: fixed-position layout
A: work-cell layout
What is the percentage defective in an average lot of goods inspected through acceptance sampling? A: LTPD B: AOQ C: AQL D: OC curve
B: AOQ
What is the typical goal of applying EMV to capacity decisions? A: Identify the most likely state of nature. B: Maximize the expected value of the alternatives. C: Identify the least risky alternative. D: Identify the alternative with the highest potential payoff.
B: Maximize the expected value of the alternatives
Which of the following is NOT a limitation of the net present value approach? A: Investments with the same net present value may have significantly different projected lives and different salvage values. B: Payments are assumed to be made at the beginning of the period, which is not always the case. C: The assumption is that we know future interest rates, which we do not. D: Investments with the same net present value may have different cash flows.
B: Payments are assumed to be made at the beginning of the period, which is not always the case
A house of quality would depict the strength of the relationship between which of the following two items? A: The design team's choice of material for a wallet and the materials that were considered but rejected by the design team. B: The customer's desire for a durable wallet and the company's choice of material for the wallet. C: The stitching used in your company's new product and the stitching used in a competitor's wallet. D: The customer's need for a sealable change pocket and the customer's need for plastic inserts to display pictures.
B: The customer's desire for a durable wallet and the company's choice of material for the wallet
Which of the following procedures is TRUE regarding the construction of a decision tree for product design? A: Be sure that all possible alternatives and states of nature (beginning on the right and moving left) are included in the tree. B: The possible alternatives include an alternative of "doing nothing." C: To determine the expected value of each course of action, we need to start at the beginning of the tree and work toward the end of the tree. D: Payoffs are entered at the beginning of the appropriate branch.
B: The possible alternatives include an alternative of "doing nothing."
Which of the following statements is NOT true? A: Many service firms refer to their offerings as "products." B: The term "products" refers to tangible goods only. C: The product decision includes the selection, definition, and design of products. D: The objective of the product decision is to develop and implement a product strategy that meets the demands of the marketplace with a competitive advantage.
B: The term "products" refers to tangible goods only
Which of the following is NOT one of the reasons that the techniques for addressing fixed-position layout are complicated? A: Different items become critical as the project develops. B: The volume of materials needed is constant. C: At different stages of a project, different materials are needed. D: There is limited space at virtually all sites.
B: The volume of materials needed is constant
The "A" on an office relationship chart means A: absolutely unimportant. B: absolutely necessary. C: across from. D: nothing; it is not used on an office relationship chart.
B: absolutely necessary
Which of the following determinants of service quality means approachability and ease of contact? A: security B: access C: tangibles D: courtesy
B: access
Cross-docking A: combines orders to reduce picking time. B: avoids placing the materials or supplies in storage by processing them as they are received for shipment. C: locates stock wherever there is an open location. D: uses the warehouse to add value to the product through component modification, repair, labeling, or packaging.
B: avoids placing the materials or supplies in storage by processing them as they are received for shipment
Which of the TQM tools would be best suited for determining why a student's course registration is never correct? A: check sheet B: cause-and-effect diagram C: flowchart D: Pareto chart
B: cause-and-effect diagram
Resources that are held by the public are said to be resources in the A: sharing B: common C: joint D: domain
B: common
A process-oriented layout A: addresses the layout requirements of large, bulky projects such as ships and buildings. B: deals with low-volume, high-variety production. C: deals with high-volume, low-variety production. D: seeks the best personnel and machine utilization in repetitive or continuous production.
B: deals with low-volume, high-variety production
In manufacturing, excess capacity can be used to A: do more setups, lengthen production runs, and drive down inventory costs. B: do more setups, shorten production runs, and drive down inventory costs. C: do fewer setups, lengthen production runs, and drive down inventory costs. D: do fewer setups, shorten production runs, and drive down inventory costs.
B: do more setups, shorten production runs, and drive down inventory costs.
Cause-and-effect diagrams are also known as A: Pareto charts. B: fish-bone charts. C: flowcharts. D: target specification graphs.
B: fish-bone charts
Which of the following moves production to a large work cell that remains part of the present facility? A: focused factory B: focused work center C: fixed-position layout D: cross-docking
B: focused work center
Which of the following TQM tools would be best suited for displaying the number of students majoring in each business discipline? A: scatter diagram B: histogram C: cause-and-effect diagram D: flowchart
B: histogram
Which of the following phases of the product life cycle has negative cash flow and increasing spending on development and production? A: decline phase B: introductory phase C: growth phase D: maturity phase
B: introductory phase
The R-chart A: is used to measure changes in the central tendency. B: is used to indicate gains or losses in uniformity. C: control limits are computed using sample standard deviations. D: generally uses control limits set at plus or minus 2 standard deviations of the distribution, rather than plus or minus 3 which is commonly used on the x-bar chart.
B: is used to indicate gains or losses in uniformity
Which of the following is the Japanese term used to describe continuous improvement efforts? A: six sigma B: kaizen C: poka-yoke D: kanban
B: kaizen
The most aggressive and risky approach to capacity planning is A: lagging demand with incremental expansion. B: leading demand with one-step expansion. C: attempts to have an average capacity that straddles demand with incremental expansion. D: leading demand with incremental expansion.
B: leading demand with one-step expansion
A large quantity and large variety of products are produced in A: product focus. B: mass customization. C: process focus. D: repetitive focus.
B: mass customization
Which of the following represents an internal product development strategy? A: purchase technology or expertise by acquiring the developer B: migration of existing products C: joint ventures D: alliances
B: migration of existing products
Generally the goal of assembly line balancing is to A: maximize the number of workstations. B: minimize imbalance between machines or personnel while meeting a required output from the line. C: minimize the efficiency of the line. D: determine the maximum time that an item is allowed at a workstation.
B: minimize imbalance between machines or personnel while meeting a required output from the line.
The two popular measures for quantitatively determining if a process is capable are A: process mean and range. B: process capability ratio and process capability index. C: upper specification and lower specification. D: process mean and standard deviation of the process population.
B: process capability ratio and process capability index
Low-volume, high-variety production is best suited for which of the following process strategies? A: product focus B: process focus C: mass customization D: repetitive focus
B: process focus
Which of the following is NOT a benefit generated by manufacturability and value engineering? A: reduction of environmental impact B: reduced standardization of components C: improved job design and job safety D: reduced complexity of the product
B: reduced standardization of components
Which of the following allocates display space and responds to customer behavior? A: warehouse layout B: retail layout C: office layout D: product-oriented layout
B: retail layout
Defining a product means: A: to decide to produce a component or service or purchase from an outside source. B: to define the new good's or service's function. C: to list the hiearchy of components, their description, and the quantity of each required to make one unit of a product. D: to identify components by a coding scheme that specifies size, shape, and the type of processing.
B: to define the new good's or service's function
Which of the following techniques might a service or retail organization use to make a location decision? A: crossover charts B: traffic counts C: locational cost-volume analysis D: transportation method
B: traffic counts
The process at Wheeled Coach Ambulance plant is a repetitive process supported by A: an assembly line. B: work cells. C: craftsmen working alone. D: high degree of robotic automation.
B: work cells
Which of the following technologies is particularly useful for prototype development and small lot production? A: CAM B: CAD C: 3-D printing D: STEP
C: 3-D printing
Which of the following statements is NOT true about the process capability ratio? A: The process capability ratio is a ratio for determining whether a process meets design specifications. B: The process capability ratio is computed as the difference of the upper and lower specification limits divided by six standard deviations. C: A capable process has a process capability ratio less than one. D: The process capability ratio is a ratio of the specification to the process variation.
C: A capable process has a process capability ratio less than one
Which is the best statement regarding an operating characteristic curve? A: As the fraction defective decreases, the probability of accepting the lot also decreases. B: As the fraction defective increases, the probability of accepting the lot also increases. C: As the AQL decreases, the producer's risk also decreases. D: As the lot tolerance percent defective decreases, the consumer's risk also decreases.
C: As the AQL decreases, the producer's risk also decreases
Which of the following is NOT true regarding corporate social responsibility? A: The operations function plays a profound role in meeting corporate social responsibility. B: Companies that practice corporate social responsibility introduce policies that consider environmental, societal, and financial impacts in their decision making. C: Corporate social responsibility only requires firms to focus on environmentally friendly product disposal. D: Corporate social responsibility means "doing what's right" and doing it properly, which can be beneficial to all stakeholders.
C: Corporate social responsibility only requires firms to focus on environmentally friendly product disposal
Which of the following statements is NOT true regarding decision trees? A: Decision trees are particularly helpful when there are a series of decisions and various outcomes that lead to subsequent decisions followed by other outcomes. B: Decision trees can be used for other management problems besides product design. C: Decision trees should only be used for new-product decisions when no uncertainty is present. D: A decision tree is a great tool for thinking through a problem.
C: Decision trees should only be used for new-product decisions when no uncertainty is present
Which of the following statements is NOT true? A: Understanding the customer is the premier issue in new-product development. B: Sociological and demographic change may appear in such factors as decreasing family size. C: Economic change brings increasing levels of affluence in the short run but economic cycles and price changes in the long run. D: Political/legal change brings about new trade agreements, tariffs, and government requirements.
C: Economic change brings increasing levels of affluence in the short run but economic cycles and price changes in the long run
What is a system that stores and displays information that can be linked to a geographic location? A: ASRS B: RFID C: GIS D: CIM
C: GIS
What is the first step to build a house of quality? A: Determine the desirable technical attributes. B: Identify how the good/service will satisfy customer wants. C: Identify customer wants. D: Relate customer wants to product hows.
C: Identify customer wants
Which of the following is NOT helpful for retail layout? A: Use prominent locations for high-impulse and high-margin items. B: Distribute what are known in the trade as "power items" to both sides of an aisle. C: Keep end-aisle locations empty to facilitate traffic flow. D: Locate the high-draw items around the periphery of the store.
C: Keep end-aisle locations empty to facilitate traffic flow
Which of the following is the fourth step in the theory of constraints? A: When one set of constraints is overcome, go back and identify new constraints. B: Focus resources on accomplishing the plan. C: Reduce the effects of the constraints by offloading work or by expanding capability. D: Develop a plan for overcoming the identified constraints.
C: Reduce the effects of the constraints by offloading work or by expanding capability
Which of the following is NOT an approach to ensure a successful transition from development to production? A: Appoint a project manager. B: Use product development teams. C: Segregation of the product development and manufacturing organizations. D: Integration of the product development and manufacturing organizations.
C: Segregation of the product development and manufacturing organizations.
What is the major difference in focus between a location decision in the service sector vs. the manufacturing sector? A: There is no difference in focus. B: The focus in manufacturing is on labor, while the focus in service is on raw materials. C: The focus in service is on revenue maximization, while the focus in manufacturing is on cost minimization. D: The focus in manufacturing is on revenue maximization, while the focus in service is on cost minimization.
C: The focus in service is on revenue maximization, while the focus in manufacturing is on cost minimization.
An assembly chart is A: an exploded view of the product. B: a listing of the operations necessary to produce the component. C: a schematic showing how the product is assembled. D: an instruction to make a given quantity of a particular item.
C: a schematic showing how the product is assembled
Efficiency is given by A: actual output divided by design capacity. B: design capacity divided by utilization. C: actual output divided by effective capacity. D: effective capacity divided by actual output.
C: actual output divided by effective capacity
Stacked Resaurants lets customers choose ingredients for their sandwhiches using A: a moving conveyor belt. B: a telephone at the table. C: an iPad menu. D: playing cards.
C: an iPad menu
What term refers to the location of competing companies near each other? A: battling B: neighboring C: clustering D: centralizing
C: clustering
What process uses warehousing to add value to a product through component modification, repair, labeling, and packaging? A: servicescaping B: ambient conditioning C: customizing D: cross-docking
C: customizing
Operation of a hair salon is an example of A: modularization. B: an assembly line. C: delayed customization. D: automation.
C: delayed customization
The transportation model A: uses both qualitative and quantitative factors. B: finds the location of a single distribution center that minimizes distribution costs. C: determines the best pattern of shipments from several points of supply to several points of demand. D: determines the crossover point between two different locations.
C: determines the best pattern of shipments from several points of supply to several points of demand
What is the ability to respond with little penalty in time, cost, or customer value? A: repetitive process B: mass customization C: flexibility D: postponement
C: flexibility
What is a drawing of the movement of material, product or people? A: process chart B: AIS C: flowchart D: RFID
C: flowchart
In acceptance sampling, the producer's risk is the risk of having a A: good lot accepted. B: bad lot accepted. C: good lot rejected. D: bad lot rejected
C: good lot rejected
Which of the following DOES NOT increase profit by improving quality? A: increased productivity B: flexible pricing C: higher warranty costs D: improved reputation
C: higher warranty costs
Attribute inspection measures A: such dimensions as weight, speed, size, or strength to see if an item falls within an acceptable range. B: whether or not the product attributes conform to the inspector's personal tastes. C: if the product is good or bad. D: if cause and effect are present.
C: if the product is good or bad
Which of the following could reduce costs and increase profit? A: improved reputation B: improved response C: increased productivity D: flexible pricing
C: increased productivity
The objective of a statistical process control (SPC) system is to A: assess customer expectations. B: eliminate natural variations. C: provide a statistical signal when assignable causes of variation are present. D: provide a statistical signal when natural causes of variation are present.
C: provide a statistical signal when assignable causes of variation are present
Workspace can inspire informal and productive encounters if it balances three physical and social aspects: A: product, people, and permission. B: product, privacy, and permission. C: proximity, privacy, and permission. D: proximity, people, and permission.
C: proximity, privacy, and permission
Which of the following is NOT one of the five elements for each city that geographic information systems use to analyze location decision factors? A: transportation options B: cultural and entertainment centers C: rivers, mountains, lakes, and forests D: residential areas
C: rivers, mountains, lakes, and forests
Which of the following is NOT an external failure cost? A: lost goodwill B: returned goods C: scrap D: costs to society
C: scrap
Which of the following terms describes the physical surroundings in which a service takes place, and how they affect customers and employees? A: service decor B: landscape C. servicescape D: ambience
C: servicescape
A house of quality would depict the strength of the relationship between which of the following two items? A: The design team's choice of material for a wallet and the materials that were considered but rejected by the design team. B: The customer's need for a sealable change pocket and the customer's need for plastic inserts to display pictures. C: The stitching used in your company's new product and the stitching used in a competitor's wallet. D: The customer's desire for a durable wallet and the company's choice of material for the wallet.
D: The customer's desire for a durable wallet and the company's choice of material for the wallet
To provide better access and possibly reduce the number of workers needed, work cells may be designed in the shape of what letter of the alphabet? A: V B: D C: O D: U
D: U
Which of the following would NOT be produced or offered using a fixed-position layout? A: a ship B: a hospital operating room C: a highway D: a hospital emergency room
D: a hospital emergency room
Which service strategy describes separating services that may lend themselves to some type of automation? A: focus B: separation C: modules D: automation
D: automation
Which of the following is an example of technology's impact on wholesale/retail trade industry? A: automatic teller machines B: interactive TV C: automatic toll booths D: bar-coded data
D: bar-coded data
What is the time of the slowest workstation in a production system? A: utilization B: throughput time C: effective capacity D: bottleneck time
D: bottleneck time
Which type of control chart should be used when it is possible to have more than one mistake per item? A: R-chart B: x-bar chart C: p-chart D: c-chart
D: c-chart
What is a means of determining throughput capacity of workstations or an entire production system? A: effective capacity B: throughput analysis C: theory of constraints D: capacity analysis
D: capacity analysis
Which of the following methods is a mathematical technique used for finding the best location for a single distribution point that services several stores or areas? A: locational cost-volume analysis B: transportation model C: factor-rating method D: center-of-gravity method
D: center-of-gravity method
What is a successful technique used by companies such as Ingall Ship Building Corporation to avoid some of the difficult problems producing items in fixed-position layouts? A: hire cross-trained workers B: hire time-flexible workers C: use blanket purchase contracts that cover projected purchasing needs over a one-year time period D: complete as much of the project as possible offsite
D: complete as much of the project as possible offsite
To develop a standard or benchmark, firms need to start with A: collecting benchmarking information. B: forming a benchmark team. C: identifying benchmarking partners. D: determining what to benchmark.
D: determining what to benchmark
The objective of warehouse layout is to A: maximize profitability per square foot of floor space. B: provides for comfort, safety, and movement of information. C: build teams. D: find the optimum trade-off between handling cost and costs associated with warehouse space.
D: find the optimum trade-off between handling cost and costs associated with warehouse space
When making investment decisions using the net present value method, managers need to choose the investments with A: lower net present values. B: higher revenues. C: lower costs. D: higher net present values.
D: higher net present values
Which of the following is an example of ambient conditions? A: Walmart's greeter at the door B: Hard Rock cafe's wall of guitars C: Best Buy's wide center aisle D: leather chairs at Starbucks
D: leather chairs at Starbucks
A fast food restaurant is an example of A: high customization and low degree of labor. B: high customization and high degree of labor. C: low customization and high degree of labor. D: low customization and low degree of labor.
D: low customization and low degree of labor
In process-oriented and fixed-position layouts, it is important to minimize the costs of A: special-purpose machinery. B: skilled labor. C: raw material. D: material handling.
D: material handling
The main objective of retail layout is to A: build teams. B: minimize total costs. C: provide for comfort, safety, and movement of information. D: maximize profitability per square foot of floor space.
D: maximize profitability per square foot of floor space
What are the three Ps in the triple bottom line of the three Ps? A: product, planet, and profit B: people, planet, and product C: people, product, and profit D: people, planet, and profit
D: people, planet, and profit
A device or technique that ensures production of a good unit every time is a A: zero defect. B: fail-safe. C: control chart. D: poka-yoke.
D: poka-yoke
What is the fundamental rethinking of business processes to bring about dramatic improvements in performance? A: process strategy B: process analysis C: process design D: process redesign
D: process redesign
Which of the following approaches is also called a "job shop?" A: product-oriented layout B: fixed-position layout C: work-cell layout D: process-oriented layout
D: process-oriented layout
High-volume, low-variety production is best suited for which of the following process strategies? A: mass customization B: repetitive focus C: process focus D: product focus
D: product focus
Which of the quadrants in the service process matrix has high labor intensity and high customization? A: service shop B: mass service C: service factory D: professional service
D: professional service
Which of the following is NOT a common TQM tool? A: scatter diagrams B: histograms C: check sheets D: queuing models
D: queuing models
The 3 rs for sustainability are: A: reduce, reputation, and recycle. B: reduce, reuse, and reputation. C: reputation, reuse, and recycle. D: reduce, reuse, and recycle.
D: reduce, reuse, and recycle
Work cells typically have A: increased work-in-process inventory. B: increased raw materials inventory. C: increased direct labor needs due to specialization. D: reduced investment in machinery and equipment.
D: reduced investment in machinery and equipment
Which of the following costs is NOT a cost of quality? A: scrap B: rework C: lost goodwill D: research and development
D: research and development
Which of the following is a possible option to employ when demand exceeds capacity? A: lower prices B: increase advertising expenditures C: temporarily lay-off workers D: schedule long lead times
D: schedule long lead times
The multi product case of determining the break-even point in dollars weights what by each product's proportion of sales? A: the variable cost of each product B: the selling price of each product C: the fixed cost attributable to each product D: the contribution of each product
D: the contribution of each product
The American Society for Quality defines quality as A: even though it cannot be defined, you know what it is B: how well a product fits patterns of consumer preferences. C: the degree of excellence at an acceptable price and the control of variability at an acceptable cost. D: the totality of features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs.
D: the totality of features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs
Which of the following is NOT true regarding layout decisions? A: Layout designs need to be viewed as dynamic because of our increasingly short-life-cycle and mass-customized world. B: Layout is one of the key decisions that determines the long-run efficiency of operations. C: An effective layout can help an organization achieve a strategy that supports differentiation, low cost, or response. D: To obtain flexibility in layout, operations managers could keep investments high.
D: to obtain flexibility in layout, operations managers could keep investments high
A goods-producing location decision would likely emphasize the importance of which of the following? A: appearance and image B: security and lighting C: parking and access D: utility and labor costs
D: utility and labor costs
