Chapter 12 SmartBook

Quick to Ship Company has a process time of 2 days and a throughput time of 8 days. The manufacturing cycle efficiency is ______.

.25 2 ÷ 8 =.25

Gavin, Inc. recorded the following information for one of its products. All amounts are in days: Wait time 5.0; Inspection time 0.7; Process time 2.5; Move time 0.4; Queue time 3.0. Gavin's delivery cycle time is ______ days.

11.6 Delivery cycle time = wait time + process time + inspection time + move time + queue time.

JPL, Inc. recorded the following information for one of its products. All amounts are in days: Wait time 4.0; Inspection time 0.6; Process time 2.3; Move time 0.7; Queue time 3.1. JPL's throughput (manufacturing cycle) time is ______ days.

6.7 Throughput time = process time + inspection time + move time + queue time.

Which of the following statements are true regarding corporate social responsibility and the balanced scorecard?

A company should always connect its measures using if-then hypothesis statements. Average compensation for female employees ÷ average compensation for male employees is a learning and growth measure.

Which of the following is NOT a dimension of internal business process measures?

Skills development

Choose the groups of performance measures typically used in the balanced scorecard approach.

Customer-related Learning and growth Financial

Which of the following is not a category of quality costs?

Direct costs

True or false: A company's strategy has an important influence on the categories it will include on its balanced scorecard.

False

True or false: Corporate social responsibility focuses on legal compliance only.

False

Choose the four groups of performance measures typically used in the balanced scorecard approach.

Financial, customer, internal business processes, and learning and growth

Which of the following is NOT a dimension of learning and growth measures?

Lean resourcement management

Which of the following performance measures are part of the balanced scorecard?

Learning and growth Customer perspective Financial

Which of the following statements are true?

Measuring and reporting quality costs does not solve quality problems. Quality cost information helps managers identify the relative importance of quality problems. The impact of customer ill will is generally not found on quality control reports.

True or false: Improvements in learning and growth and internal business process measures must ultimately have a positive influence on customer measures.

True

Which of the following statements are true?

Using balanced scorecard performance measures to reward employees can result in sub-optimal results. It is important that balanced scorecard measures are not easily manipulated.

An integrated set of performance measures that are derived from the company's strategy is ______.

a balanced scorecard

Costs incurred to identify defective products before they are shipped to customers are called _____ or _____ costs.

appraisal inspection

An advantage of using a(n) _____ _____ is that it continually tests the theories underlying management strategies.

balanced scorecard

An integrated set of performance measures that are derived from the company's strategy is a(n) _____ _____.

balanced scorecard

A concept whereby organizations consider the needs of all stakeholders when marking decisions is called _____ _____ responsibility.

corporate social

Measures related to satisfaction, lifetime value and loyalty are included in the _____ section of the balanced scorecard.

customer

The time between when an order is placed and when it is delivered is known as the _____ _____ _____.

delivery cycle time

Actual run time ÷ ideal run rate = the ______ rate.

efficiency

When considering overall equipment effectiveness, avoiding minor work stoppages and retaining properly trained operators to run and maintain machines is the key to maximizing the _____ rate.

efficiency

When a company recalls a defective product, a(n) _____ _____ costs is incurred.

external failure

Measures related to trend and market performance are included in the _____ section of the balance card.

financial

A leading organization in the field of social and environmental performance measurement is the _____ _____ Initiative.

global reporting

Quality cost information reports ______.

help identify the financial cost of defects give managers an idea of where to focus quality control efforts show managers if quality control costs are poorly distributed

The balanced scorecard framework ______.

holds organizations accountable for translating improvements in nonfinancial performance to financial results considers market performance as a financial measure

Assembling products and handling baggage are examples of ______ processes.

internal business

Measures related to innovation and time are included in the _____ _____ _____ section of the balanced scorecard.

internal business process

What the company does in an attempt to satisfy customers falls into the ______ group of the balance scorecard.

internal business processes

Costs that result from identifying defects before products are shipped to customers and include the cost of scrap and rework are ______ costs.

internal failure

Measures related to recruiting and retention are included in the _____ and _____ section of the balanced scorecard.

learning growth

Social and environmental performance measures ______ balanced scorecard.

may be incorporated into an existing

When it comes to quality of conformance, an economy car ______ quality of conformance as a luxury car

may have the same

Compensation should ______.

only be tied to balanced scorecard measures after the organization has been successfully managed with it for some time

The "triple-bottom line" refers to _____. _____ and profit.

people, planet

A balanced scorecard ______.

presents a theory of how a company can take action to attain its desired outcomes

Costs incurred to prevent defects from occurring are ______ costs.

prevention

The cost of quality is the sum of _____, appraisal, _____ _____ and external failure costs.

prevention internal failure

To reduce the cost of quality organizations should increase ______.

prevention and appraisal costs to reduce internal and external failure costs

Components of throughput time include ______ time.

process queue inspection

Preventing, detecting and dealing with defects causes ______ costs.

quality

Products that meet or exceed their expectations and are free from defects that mar or degrade their performance are said to have a high _____ of _____.

quality of conformance

The Global Reporting Initiative ______.

standards require companies to provide disclosures related to stakeholder engagement has created a widely adopted sustainability reporting framework

Because companies target different customers with different kinds of products and services, performance measures should be tailored to the specific _____ of a company.

strategy

Customer value propositions are the essence of _____.

strategy

Operational excellence is an example of a company ______.

strategy

The manufacturing cycle efficiency is computed by relating the value-added time to the _____ time.

throughput

The period from which a product begins production as raw materials and ends as a finished product is known as _____ time or manufacturing cycle time.

throughput

When considering a company's expanded set of corporate social responsibilities, "people, plant and profit: is also know as the _____ _____-_____.

triple bottom-line

Actual run time ÷ machine time available = the _____ rate.

utilization

When considering overall equipment effectiveness, avoiding machine breakdowns and minimizing average setup times is the key to increasing the _____ rate.

utilization