OPER M/C #1

Products and services that are produced in standard modules to which options are added are known as a. assemble-to-order items b. make-to-stock items c. make-to-order items d. none of the above

a. assemble-to-order items

Process flowcharts can be used to highlight nonproductive activities. a. True b. False

a. True

A process is a group of related tasks with specific inputs and outputs. a. True b. False

a. True

Because of its intangibility, consumers generally perceive a service to be more risky to purchase than a product. a. True b. False

a. True

Comparing a product or process against the best-in-class is known as benchmarking. a. True b. False

a. True

Dismantling and inspecting a competitor's product to identify design features that might be used to improve your own product is known as reverse engineering. a. True b. False

a. True

One characteristic of batch production is fluctuating demand. a. True b. False

a. True

All of the following are characteristics of an effective product design process except a. increasing the design time for new products and services b. meeting customer requirements in the least costly manner c. matching product or service characteristics with customer requirements d. minimizing the number of revisions needed to make the design workable

a. increasing the design time for new products and services

Which of the following statements is true? a. internal failure costs tend to be low for a service, while external failure costs can be very high b. internal failure costs and external costs tend to be low for services c. internal failure costs tend to be high for a service, while external failure costs can be very low d. internal failure costs and external failure costs tend to be high for services

a. internal failure costs tend to be low for a service, while external failure costs can be very high

Characteristics of a product or service that allow it to be considered for purchase are known as a. order qualifiers b. order winners c. core competencies d. competitive priorities

a. order qualifiers

Six Sigma is a systematic method for improving processes by most generally a. reducing process variability b. increasing process variability c. increasing assignable cause variation d. none of the above

a. reducing process variability

A learning curve measures a. the rate at which performance improves with repetition b. the overall competitiveness of an industry c. the transformation process associated with educational institutions d. the rate of productivity change over time

a. the rate at which performance improves with repetition

In most projects a. there are a few customers and customer involvement is high b. there are many customers and customer involvement is high c. there are a few customers and customer involvement is low d. there are a many customers and customer involvement is low

a. there are a few customers and customer involvement is high

A company is considering producing a product for a new market. The fixed costs required for manufacturing and delivering the product is $50,000. Labor and material costs are estimated to be approximately $25.00 per product. If the product is sold for $35.00 each, the firm's break-even volume would be a. 50,000 units b. 5,000 units c. 2,500 units d. 500 units

b. 5,000 units

A firm's information technology system is unrelated to its quality improvement program. a. True b. False

b. False

Companies that control the production of virtually all of their component parts, including the source of raw materials are said to be horizontally integrated. a. True b. False

b. False

Mass production tends to use general equipment and cross trained, multi-skilled labor. a. True b. False

b. False

Only processes that are out of statistical control have variability. a. True b. False

b. False

Supplier speed is not an issue in make-or-buy decisions. a. True b. False

b. False

The Six Sigma approach is more concerned with eliminating defects than it is in improving processes. a. True b. False

b. False

When comparing two processes, if the demand is less than or equal to the 'point of indifference', we should choose the alternative with the lowest variable cost, conversely if the demand is greater than the 'point of indifference', we should choose the alternative with the lowest fixed cost. At the 'point of indifference' we can actually choose either of the two processes, as their total cost is equal. a. True b. False

b. False

The costs of achieving good quality can be categorized as a. internal failure costs and external failure costs b. prevention costs and appraisal costs c. appraisal costs and internal failure costs d. prevention costs and statistical quality control costs

b. prevention costs and appraisal costs

The ease with which resources can be adjusted in response to changes in demand, technology, products and services, and resource availability defines the firm's a. vertical integration b. process flexibility c. customer involvement d. capital intensity

b. process flexibility

The probability that a product will operate properly within an expected time frame is the dimension of quality known as a. durability b. reliability c. performance d serviceability

b. reliability

The performance characteristics relevant in the functional design phase of a product design are a. Color, shape, and texture b. Speed, flexibility, and time-to-market c. Reliability, maintainability, and usability d. Availability, consistency, and calibration e. Product innovation, time-to-market, and consistency

c. Reliability, maintainability, and usability

The costs of testing and inspecting materials, parts, and the product at various stages and at the end of the process is an example of a(n) a. external failure costs b. internal failure cost c. appraisal costs d. prevention

c. appraisal costs

In SPC (Statistical Process control) product characteristics that can be evaluated using a discrete response are known as a. variables b. samples c. attributes d. none of the above

c. attributes

All of the following are ways that companies can get ideas about products from competitors except a. benchmarking b. reverse engineering c. concurrent engineering d. perceptual maps

c. concurrent engineering

A large capacity cushion is most likely needed whenever there is a. high resource flexibility b. stable and predictable demand c. highly variable demand d. little interest in providing good customer service

c. highly variable demand

All of the following can reduce the time-to-market for new products except a. establishing multifunctional design teams b. making design decision concurrently rather than sequentially c. making design decisions sequentially rather than concurrently d. designing for manufacturability and assembly

c. making design decisions sequentially rather than concurrently

Which step follows defining the process in the five step Six Sigma Breakthrough Strategy? a. improving the process b. controlling the process c. measuring the process d. analyzing the process

c. measuring the process

Which of the following is not a characteristic of mass production? a. products are made-to-stock for a mass market b. demand is stable c. products are assemble-to-order for a specialized market d. product volume is high

c. products are assemble-to-order for a specialized market

Which control chart(s) are used to monitor product characteristics that are variables? a. p-charts b. c-charts c. x (bar)- and R-charts d. all of the above

c. x (bar)- and R-charts

The x(bar)-chart is used with the R-chart under the premise that both ___________________ must be in control for the process to be in control. a. Central tendency and range b. Number of defects and proportion defective c. Randomness and proportion defective d. Process average and process variability e. None of the above

d. Process average and process variability

A completely vertically integrated firm a. assembles and sells the product b. makes all the product parts c. extracts the raw material for the product d. all of the above

d. all of the above

An effective position strategy considers a. the strengths and weaknesses of the organization b. the needs of the marketplace c. the positions of competitors d. all of the above

d. all of the above

Flexibility includes the ability a. to produce a wide variety of products b. to introduce new products quickly c. to respond to customer needs d. all of the above

d. all of the above

Potential risks associated with globalization include a. supply chain logistics b. cultural differences c. loss of capabilities d. all of the above

d. all of the above

Which of the following characteristics of services make service operating decisions more difficult? a. the perishability of services b. the intangibility of services c. the high customer contact of services d. all of the above

d. all of the above

A process is generally considered to be in control when a. there are no sample points outside the control limits b. most points are near the center line, without many being close to the control limits c. sample points are randomly distributed equally above and below the center line d. all of the above are true

d. all of the above are true

What a firm does best is known as its a. primary task b. strategic position c. vision d. core competency

d. core competency

Directly involving employees in the quality-management process is referred to as a. partnering b. a quality circle c. Six Sigma d. participative problem solving

d. participative problem solving

Achieving quality of conformance depends on all of the following factors except a. the design of the production process b. the performance level of equipment, machinery and materials c. the training and supervision of employees d. the price charged for the product

d. the price charged for the product

Which of the following is not an example of an internal failure cost of poor quality a. rework costs b. process downtime costs c. scrap costs d. warranty claims costs

d. warranty claims costs

The following are the advantages of constructing a process flowchart a. to understand how a particular process works b. can be used as a training tool c. to identify where in the process a defect might occur d. reveals the non-value added activities for process improvement e. All of the above

e. All of the above

Software systems for 'collaborative design' are most commonly referred to as a. Breakthrough design systems b. Artificial intelligence c. Fuzzy logic d. Expert systems e. Collaborative product commerce

e. Collaborative product commerce