E2 331

If the schedule calls for the production of 120 units per day and 480 minutes of production time are available per day, the cycle time would be 4 minutes.

True

Location decisions of goods-producing companies often assume that costs are relatively constant for a given area; therefore, the revenue function is critical.

False

Managers at Arnold Palmer Hospital take quality so seriously that the hospital typically is a national leader in several quality areas-so that continuous improvement is no longer necessary.

False

Possible decision alternatives found in capacity EMV problems are future demands or market favorability.

False

Process-oriented layouts typically have low levels of work-in-process inventory.

False

Product-oriented layouts tend to have high levels of work-in-process inventories.

False

Production technology has had a major impact on services, but as yet there has been little reduction in service labor requirements.

False

Professional services typically require low levels of labor intensity.

False

Quality is mostly the business of the quality control staff, not ordinary employees.

False

Source inspection is inferior to inspection before costly operations.

False

Substantial research has proved that the only successful method of dealing with bottlenecks is to increase the bottleneck's capacity.

False

Successful process redesign focuses on departmental areas where small, continuous improvements can be made.

False

The Japanese use the term poka-yoke to refer to continuous improvement.

False

The biggest advantage of a product layout is its flexibility to handle a varied product mix.

False

The bottleneck time is always at least as long as the throughput time.

False

The center-of-gravity method finds the location of a centralized facility, such as a distribution center, that will maximize the organization's revenue.

False

The dominant problem associated with the fixed-position layout is that workers are fixed in position, and they cannot be reassigned.

False

The layout approach that addresses trade-offs between space and material handling is called the fixed-position layout.

False

The location decisions of goods-producing firms will generally pay more attention to parking, access, and traffic counts than will service location decisions.

False

The minimum number of workstations depends upon the set of task times and the precedence chart, but not the number of units scheduled.

False

The net present value of $10,000 to be received in exactly three years is considerably greater than $10,000.

False

The typical full-service restaurant uses a product-focused process.

False

The work cell layout, a special arrangement of machinery and personnel to focus on the production of a single product or group of related products, is for manufacturing applications and has no relevance to services.

False

To find the throughput time with simultaneous processes, compute the time over all paths and choose the shortest path through the system.

False

Utilization is the number of units a facility can hold, receive, store, or produce in a period of time.

False

Utilization of the total "cube" is the dominant consideration in office layout.

False

A(n) ________ uses an automated work cell controlled by electronic signals from a common centralized computer facility.

flexible manufacturing system or FMS

A(n) ________ uses symbols to analyze the movement of people or material.

flowchart

Industrial firms choose locations that minimize cost, but service firms look for locations with good demographics and traffic count because these variables are indicators of good ________.

revenue or volume of business

In "drum, buffer, rope," the ________ acts like signals between workstations.

rope

The definition of quality adopted by The American Society for Quality is a customer-oriented (i.e., user based) definition.

True

The factor-rating method can consider both tangible and intangible costs.

True

A product requires 24 separate tasks, and the sum of those task times is 14 minutes. If the cycle time is 2 minutes, then at least 12 workstations will be needed.

False

Activity times should not be included in a service blueprint.

False

An example of the postponement strategy for improving service productivity is having the customer wait until you have sufficient time to serve the customer.

False

An improvement in quality must necessarily increase costs.

False

The quality loss function indicates that costs related to poor quality are low as long as the product is within acceptable specification limits.

False

The transportation model calculates an optimal shipping system between a central facility and several outlying customers.

False

Manufacturers may want to locate close to their customers if the transportation of finished goods is expensive or difficult.

True

Pareto charts are a graphical way of identifying the few critical items from the many less important ones.

True

Philip Crosby is credited with both of these quality catch-phrases: "quality is free" and "zero defects."

True

Price changes are useful for matching the level of demand to the capacity of a facility.

True

Process control is the use of information technology to monitor and control a physical process.

True

Servicescape refers to the physical surrounding in which the service is delivered.

True

TQM is important because each of the ten decisions made by operations managers deals with some aspect of identifying and meeting customer expectations.

True

The ratio of labor cost per day to productivity, in units per day, is the labor cost per unit.

True

The tool that calculates which process has the lowest cost at any specified production volume is a crossover chart.

True

The work cell improves layouts by reducing both floor space and direct labor cost.

True

Unfavorable exchange rates can offset other savings in a location decision.

True

The ________ is a mathematical technique used for finding the best location for a single distribution point that services several stores or areas.

center-of-gravity method

FedEx schedules its aircraft using a(n) ________ system, which it credits with reducing package mishandling and delay in transit.

central hub

A(n) ________ is a type of poka-yoke that lists the steps needed to ensure consistency and completeness in a task.

checklist

If a layout problem is solved by use of heuristics, this means that: A) there is no other way to solve the problem. B) no computer software is available. C) the problem has only a few alternatives to evaluate. D) no optimum solution exists. E) a satisfactory, but not necessarily optimal, solution is acceptable.

) a satisfactory, but not necessarily optimal, solution is acceptable.

The work by ________ regarding how people learn from each other's successes led to the field of cross-functional teamwork.

Armand Feigenbaum

________ is a computer-controlled warehouse that provides for the automatic placement of parts into and from designated places within the warehouse.

Automated storage and retrieval system or ASRS

A production line is to be designed to make 500 El-More dolls per day. Each doll requires 11 activities totaling 16 minutes of work. The factory operates 750 minutes per day. What is the required cycle time for this assembly line? A) 0.5 minutes B) 1.5 minutes C) 2 minutes D) 5,500 minutes E) 4.26 minutes

B) 1.5 minutes

A clothing chain is considering two different locations for a new retail outlet. They have identified the four factors listed in the following table as the basis for evaluation, and have assigned weights as shown. The manager has rated each location on each factor, on a 100-point basis, as shown under the respective columns for Barclay and Chester. What is the score for Chester? A) 10.00 B) 24.50 C) 25.75 D) 27.00 E) 100.00

B) 24.50

Which of the following is most likely to affect the location strategy of a manufacturing firm? A) appearance/image of the area B) utility costs C) purchasing power of drawing area D) competition in the area E) parking availability

B) utility costs

________ is a rapid, low-cost production process that caters to constantly changing unique customer desires.

Mass customization

________ analysis finds the point at which costs equal revenues.

Break-even

A employee produces 15 parts during a shift in which he made $90. What is the labor content of the product? A) $90 B) $5 C) $6 D) $0.167 E) $1,350

C) $6

Christopher's Cranks uses a machine that can produce 100 cranks per hour. The firm operates 12 hours per day, five days per week. Due to regularly scheduled preventive maintenance, the firm expects the machine to be running during approximately 95% of the available time. Based on experience with other products, the firm expects to achieve an efficiency level for the cranks of 85%. What is the expected weekly output of cranks for this company? A) 5100 B) 5700 C) 4845 D) 969 E) 6783

C) 4845

________ is the use of computer software to evaluate the profitability of merchandising plans in a retail layout.

Category management

________ diagrams use a schematic technique to discover possible locations of quality problems.

Cause-and-effect, or Fishbone or Ishikawa

________ occurs when competing companies locate near each other because of a critical mass of information, talent, venture capital, or natural resources.

Clustering

Which of the following phrases best describes product focus? A) low volume, high variety B) Finished goods are usually made to order. C) Processes are designed to perform a wide variety of activities. D) high fixed costs, low variable costs E) high inventory

D) high fixed costs, low variable costs

In mass service and professional service, the operations manager should focus extensively on: A) automation. B) equipment maintenance. C) sophisticated scheduling. D) human resources. E) cost-cutting initiatives.

D) human resources.

The concept of customizing in a warehouse layout: A) is possible, but it causes serious loss of oversight of the quality function. B) cannot be considered seriously in today's high efficiency factories. C) is theoretically sound, but several years away in practice. D) incorporates value-added activities in warehouses. E) locates stock wherever there is an open location.

D) incorporates value-added activities in warehouses.

________ avoids placing materials or supplies in storage by processing them as they are received for shipment.

Cross-docking

________ is the maximum time that the product is allowed at each workstation.

Cycle time

A fabrication line and an assembly line are both types of repetitive and product-focused layout, but only the fabrication line utilizes workstations.

False

A flowchart with the addition of a time axis becomes a process chart.

False

________ cost is the cost that continues even if no units are produced.

Fixed

________ involves the ability to respond with little penalty in time, cost, or customer value.

Flexibility

________ costs result from production of defective parts or services before delivery to the customer.

Internal failure

________ is the use of information technology to control a physical process.

Process control

________ is the fundamental rethinking of business processes to bring about dramatic improvements in performance.

Process redesign

________ layouts deal with low-volume, high-variety production with like machines and equipment grouped together.

Process-oriented

________ is a process strategy based on a product-oriented production process that uses modules.

Repetitive focus

________ is a process analysis technique that focuses on the customer and the producer's interaction with the customer.

Service blueprinting

________ refers to the physical surroundings in which a service takes place, and how they affect customers and employees.

Servicescape

________ are charges that manufacturers pay to get their products displayed.

Slotting fees

________ is doing the job properly with the operator ensuring that this is so.

Source inspection

________ is the pace (frequency) of production necessary (time per unit) to meet customer orders.

Takt time

________ costs are readily identifiable and can be measured with precision.

Tangible

________ is the number of units a facility can hold, store, receive, or produce in a period of time.

Throughput or Capacity

) An example of an intangible cost, as it relates to location decisions, is the quality of education.

True

Changes in capacity may lead, lag, or straddle the demand.

True

________ is actual output as a percent of design capacity.

Utilization

Political risk, cultural issues, and exchange rates are among those ________ that affect which country will be selected for a location decision.

key success factors

A(n) ________ addresses flow, allocates space, and responds to customer behavior.

retail layout

Conforming to standards is the focus of the product-based definition of quality.

False

FedEx chose Memphis, Tennessee, for its central location, or "hub," primarily because of the incentives offered by the city of Memphis and the state of Tennessee.

False

Flowcharts use distance, but not time, to show the movement of material, product, or people through a process.

False

For a location decision, labor productivity may be important in isolation, but low wage rates are a more important criterion.

False

Harley-Davidson, because it has so many possible combinations of products, utilizes the process strategy of mass customization.

False

Heuristics are problem-solving procedures that mathematically optimize the solution.

False

In location decisions, intangible costs are easier to measure than tangible costs

False

Location decisions are based on many things, including costs, revenues, incentives, attitudes, and intangibles, but not on ethical considerations.

False

A capacity alternative has an initial cost of $50,000 and cash flow of $20,000 for each of the next four years. If the cost of capital is 5 percent, what is the approximate net present value of this investment? A) $20,920 B) $26,160 C) $49,840 D) $70,920 E) $106,990

A) $20,920

A county wants to build one centrally-located processing facility to serve the county's four recycling drop-off locations. The four drop-offs have characteristics as given in the table below. What is the approximate center of gravity of these four locations? A) (4.75, 6.04) B) (17, 24) C) (33.5, 135.4) D) (6, 4.25) E) (570, 725)

A) (4.75, 6.04)

A tortilla chip workstation produces 1,000 chips in 20 seconds. What is its bottleneck time? A) .02 seconds per chip B) 50 chips per second C) 20 seconds D) 6000 chips per minute E) 20,000 seconds

A) .02 seconds per chip

A product sells for $5, and has unit variable costs of $3. This product accounts for $20,000 in annual sales, out of the firm's total of $60,000. When performing multiproduct break-even analysis, what is the weighted contribution of this product? A) 0.133 B) 0.200 C) 0.40 D) 0.667 E) $1.667

A) 0.133

An assembly line has 10 stations with times of 1, 2, 3, 4, ..., 10, respectively. What is the bottleneck time? A) 18.18% of the throughput time B) 100% of the throughput time C) 550% of the throughput time D) 50% of the throughput time E) 1.82% of the throughput time

A) 18.18% of the throughput time

Four hundred and eighty minutes of production time are available per day. Scheduled production is 120 units per day. What is the required cycle time? A) 4 minutes B) 5 minutes C) 6 minutes D) 7 minutes E) 8 minutes

A) 4 minutes

Process A has fixed costs of $1000 and variable costs of $5 per unit. Process B has fixed costs of $500 and variable costs of $15 per unit. What is the crossover point between process A and process B? A) 50 units B) 200 units C) $2,500 D) $5,000 E) $9,500

A) 50 units

In the office relationship chart, which rating reflects the highest importance for two departments' closeness to each other? A) A B) E C) I D) O E) X

A) A

Cross-docking means which of the following? A) Avoid placing materials or supplies in storage by processing them as they are received. B) The same docks can be used either incoming or outbound shipments. C) The same dock is used to unload and then reload the same truck. D) Warehouse docks are designed in the shape of a cross. E) Docks are placed in the warehouse according to the direction (north, south, east, or west) from which the truck is arriving.

A) Avoid placing materials or supplies in storage by processing them as they are received.

TOC was popularized by: A) Goldratt and Cox. B) Ford. C) Taguchi. D) Deming. E) Motorola and GE.

A) Goldratt and Cox

Which of the following statements regarding the center-of-gravity method is FALSE? A) It is designed to minimize the maximum possible travel distance to any of the locations. B) The optimal x- and y-coordinates are calculated separately. C) The optimal solution is unconstrained, so it could suggest a location in the middle of a body of water. D) The weights used are the quantity of goods moved to or from each location. E) The origin of the coordinate system and the scale used are arbitrary, just as long as the relative distances are correctly represented.

A) It is designed to minimize the maximum possible travel distance to any of the locations.

A firm is considering two location alternatives. At location A, fixed costs would be $4,000,000 per year, and variable costs $0.30 per unit. At alternative B, fixed costs would be $3,600,000 per year, with variable costs of $0.35 per unit. If annual demand is expected to be 10 million units, which plant offers the lowest total cost? A) Plant A, because it is cheaper than Plant B for all volumes over 8,000,000 units. B) Plant B, because it is cheaper than Plant A for all volumes over 8,000,000 units. C) Plant A, because it is cheaper than Plant B for all volumes. D) Plant B, because it has the lower variable cost per unit. E) Neither Plant A nor Plant B, because the crossover point is at 10 million units.

A) Plant A, because it is cheaper than Plant B for all volumes over 8,000,000 units.

East Texas Seasonings is preparing to build one processing center to serve its four sources of seasonings. The four source locations are at coordinates shown below. Also, the volume from each source is provided. What is the center of gravity? A) X = 28.125; Y = 31.25 B) X = 22000; Y = 24000 C) X = 27.5; Y = 40 D) center of gravity = 28 E) X = 25; Y = 40

A) X = 28.125; Y = 31.25

ASRS stands for which of the following? A) automated storage and retrieval system B) automated storage and recovery system C) automated scan and recognize system D) automated scan and retail system E) automated scan and retrieval system

A) automated storage and retrieval system

Which of the following products is likely to be assembled on a repetitive process line? A) automobiles B) custom personal computers C) custom cakes D) steel E) beer

A) automobiles

Computer-integrated manufacturing (CIM) includes manufacturing systems that have: A) computer-aided design, a flexible manufacturing system, inventory control, warehousing and shipping integrated. B) transaction processing, management information systems, and decision support systems integrated. C) automated guided vehicles, robots, and process control integrated. D) robots, automated guided vehicles, and transfer equipment integrated. E) all of their computers integrated with the marketing department.

A) computer-aided design, a flexible manufacturing system, inventory control, warehousing and shipping integrated.

A location decision for an appliance manufacturer would tend to have what type of focus? A) cost focus B) focus on finding very highly skilled technicians C) revenue focus D) environmental focus E) education focus

A) cost focus

In "drum, buffer, rope," what provides the schedule, i.e. the pace of production? A) drum B) buffer C) rope D) all three of the above in combination E) none of the above

A) drum

Utilization will always be lower than efficiency because: A) effective capacity is less than design capacity. B) effective capacity is greater than design capacity. C) effective capacity equals design capacity. D) expected output is less than actual output. E) expected output is less than rated capacity.

A) effective capacity is less than design capacity.

Evaluating location alternatives by comparing their composite (weighted-average) scores involves which of the following? A) factor-rating analysis B) cost-volume analysis C) transportation model analysis D) linear regression analysis E) crossover analysis

A) factor-rating analysis

What is a drawing of the movement of material, product, or people? A) flowchart B) process chart C) service blueprint D) process map E) vision system

A) flowchart

An organization whose capacity is on that portion of the average unit cost curve that falls as output rises: A) has a facility that is below optimum operating level and should build a larger facility. B) has a facility that is above optimum operating level and should reduce facility size. C) is suffering from diseconomies of scale. D) has utilization higher than efficiency. E) has expected output higher than rated capacity.

A) has a facility that is below optimum operating level and should build a larger facility.

A big advantage of a process-oriented layout is: A) its flexibility in equipment and labor assignments. B) its low cost. C) the simplified scheduling problem presented by this layout strategy. D) the ability to employ low-skilled labor. E) its high equipment utilization.

A) its flexibility in equipment and labor assignments.

Which of the following phrases best describes process focus? A) low volume, high variety B) Finished goods are usually made to a forecast and stored. C) Operators are less broadly skilled. D) high fixed costs, low variable costs E) low inventory

A) low volume, high variety

Which of the following represents an aggressive approach to demand management in the service sector when demand and capacity are not particularly well matched? A) lower resort hotel room prices on Wednesdays B) appointments C) reservations D) first-come, first-served rule E) none of the above

A) lower resort hotel room prices on Wednesdays

Align Technology uses a ________ approach to produce clear plastic removable aligners. A) mass customization B) product focus C) process focus D) repetitive focus E) crossover

A) mass customization

Industrial location analysis typically attempts to: A) minimize costs. B) maximize sales. C) focus more on human resources. D) avoid countries with strict environmental regulations. E) ignore exchange rates and currency risks.

A) minimize costs.

Which of the statements below best describes office layout? A) positions workers, their equipment, and spaces/offices to provide for movement of information B) addresses the layout requirements of large, bulky projects such as ships and buildings C) seeks the best personnel and machine utilization in repetitive or continuous production D) allocates shelf space and responds to customer behavior E) deals with low-volume, high-variety production

A) positions workers, their equipment, and spaces/offices to provide for movement of information

Arnold Palmer Hospital uses which focus? A) process B) repetitive C) product D) mass customization E) A and D

A) process

The use of information technology to monitor and control a physical process is known as: A) process control. B) computer-aided design. C) information numeric control. D) numeric control. E) IT oversight.

A) process control.

Goods made to order are typical of ________ and ________ approaches while goods made to forecast are typical of ________ and ________ approaches. A) process, mass customization; repetitive, product B) product, mass customization; repetitive, process C) product, process; repetitive, mass customization D) repetitive, product; mass customization, process E) repetitive, process; mass customization, product

A) process, mass customization; repetitive, product

Which type of layout features departments or other functional groupings in which similar activities are performed? A) process-oriented B) product-oriented C) fixed-position D) mass production E) unit production

A) process-oriented

Which of the following is a location analysis technique typically employed by a service organization? A) purchasing power analysis B) linear programming C) queuing theory D) transportation method E) locational cost-volume analysis

A) purchasing power analysis

Which of the following are all strategies for improving productivity in services? A) separation, self-service, automation, and scheduling B) lean production, strategy-driven investments, automation, and process focus C) reduce inventory, reduce waste, reduce inspection, and reduce rework D) high interaction, mass customization, service factory, and just-in-time E) process focus, repetitive focus, product focus, and mass customization focus

A) separation, self-service, automation, and scheduling

Which of the following is NOT one of McDonald's "seven major innovations"? A) the Happy Meal B) drive-through windows C) breakfast menus D) play areas E) self-service kiosks

A) the Happy Meal

Solving a load-distance problem for a process-oriented layout requires that: A) the difficulty of movement be the same for all possible paths. B) pickup and setdown costs vary from department to department. C) the cost to move a load be the same for all possible paths. D) takt time be less than 1. E) Proplanner software examines all possible department configurations.

A) the difficulty of movement be the same for all possible paths.

Mathematically, takt time is: A) total work time available divided by units required. B) units required divided by workers required. C) a fictional time increment similar to a therblig. D) workers required divided by total operation time required. E) units required divided by total work time available.

A) total work time available divided by units required.

Which of the following is a location analysis technique typically employed by a manufacturing organization? A) transportation method B) queuing theory C) correlation analysis and traffic counts D) simulation E) demographic analysis

A) transportation method

La Quinta Inns has a competitive edge over its rivals because it: A) uses regression analysis to determine which variables most influence profitability. B) has better television advertisements. C) picks larger locations than its rivals. D) builds only along interstate highways. E) consistently receives four-star ratings for its inns.

A) uses regression analysis to determine which variables most influence profitability.

Consider a production line with five stations. Station 1 can produce a unit in 9 minutes. Station 2 can produce a unit in 10 minutes. Station 3 has two identical machines, each of which can process a unit in 12 minutes (each unit only needs to be processed on one of the two machines. Station 4 can produce a unit in 5 minutes. Station 5 can produce a unit in 8 minutes. Which station is the bottleneck station? A) Station 1 B) Station 2 C) Station 3 D) Station 4 E) Station 5

B) Station 2

A work system has five stations that have process times of 5, 9, 4, 9, and 8. What is the bottleneck time? A) 4 B) 9 C) 18 D) 35 E) 7

B) 9

The staff training center at a large regional hospital provides training sessions in CPR to all employees. Assume that the capacity of this training system was designed to be 1200 employees per year. Since the training center was first put into use, the program has become more complex, so that 1050 now represents the most employees that can be trained per year. In the past year, 950 employees were trained. The efficiency of this system is approximately ________ and its utilization is approximately ________. A) 79.2 percent; 90.5 percent B) 90.5 percent; 79.2 percent C) 87.5 percent; 950 employees D) 950 employees; 1050 employees E) 110.5 percent; 114.3 percent

B) 90.5 percent; 79.2 percent

Which of the following is the best example of the proximity rule that, for service firms, proximity to market is the most important location factor? A) Soft drinks are bottled in many local plants, where carbonated water is added to proprietary syrups that may have been shipped long distances. B) Few people will travel out-of state for a haircut. C) Patients will travel very long distances to have their hernia surgeries performed at Shouldice Hospital. D) Furniture makers choose to locate near the source of good hardwoods, even though it means locating near other furniture manufacturers. E) Metal refiners (smelters) locate near mines to accomplish significant weight reduction near the metal's source.

B) Few people will travel out-of state for a haircut.

Which of the following characteristics best describes repetitive focus? A) It uses sophisticated scheduling to accommodate custom orders. B) Its output is a standardized product produced from modules. C) Operators are broadly skilled. D) It is widely used for the manufacture of steel. E) low volume, high variety

B) Its output is a standardized product produced from modules.

The reason fast food restaurants often are found in close proximity to each other is: A) they enjoy competition. B) location clustering near high traffic flows. C) low cost. D) availability of skilled labor. E) all of the above.

B) location clustering near high traffic flows.

Which of the following is FALSE regarding repetitive processes? A) They use modules. B) They allow easy switching from one product to the other. C) They are the classic assembly lines. D) They have more structure and less flexibility than a job shop layout. E) They include the assembly of basically all automobiles.

B) They allow easy switching from one product to the other.

Currency risk is based on what assumption? A) Firms that do not continuously innovate will lose market share. B) Values of foreign currencies continually rise and fall in most countries. C) Changing product lines by reacting to every current trend may alienate the customer base. D) The value of one dollar today is greater than the value of one dollar to be received one year from now. E) The U.S. stock market fluctuates daily.

B) Values of foreign currencies continually rise and fall in most countries.

Which of the following statements regarding fixed costs is TRUE? A) Fixed costs rise by a constant amount for every added unit of volume. B) While fixed costs are ordinarily constant with respect to volume, they can "step" upward if volume increases result in additional fixed costs. C) Fixed costs are those costs associated with direct labor and materials. D) Fixed costs equal variable costs at the break-even point. E) Fixed cost is the difference between selling price and variable cost.

B) While fixed costs are ordinarily constant with respect to volume, they can "step" upward if volume increases result in additional fixed costs.

Which of the following is NOT one of the requirements of cellular production? A) testing (poka-yoke) at each station in the cell B) adequate volume for high equipment utilization C) a high level of training, flexibility, and empowerment of employees D) being self-contained, with its own equipment and resources E) identification of families of products, often through the use of group technology codes or equivalents

B) adequate volume for high equipment utilization

Balancing a work cell is done: A) before the work cell equipment is sequenced. B) as part of the process of building an efficient work cell. C) before takt time is calculated. D) so that each assembly line workstation has exactly the same amount of work. E) to minimize the total movement in a process layout.

B) as part of the process of building an efficient work cell.

Effective capacity is the: A) maximum output of a system in a given period. B) capacity a firm expects to achieve given the current operating constraints. C) average output that can be achieved under ideal conditions. D) minimum usable capacity of a particular facility. E) sum of all of the organization's inputs.

B) capacity a firm expects to achieve given the current operating constraints.

Which of the following is NOT an advantage of work cells? A) reduced direct labor cost B) decreased equipment and machinery utilization C) heightened sense of employee participation D) reduced raw material and finished goods inventory E) reduced investment in machinery and equipment

B) decreased equipment and machinery utilization

The main issue in designing process-oriented layouts concerns the relative positioning of: A) safety devices. B) departments or work centers. C) raw materials. D) entrances, loading docks, etc. E) supervisors to their employees.

B) departments or work centers.

The objective of layout strategy is to: A) minimize cost. B) develop an effective and efficient layout that will meet the firm's competitive requirements. C) maximize flexibility. D) minimize space used. E) maximize worker satisfaction.

B) develop an effective and efficient layout that will meet the firm's competitive requirements.

What is an approach to location analysis that includes both qualitative and quantitative considerations? A) locational cost-volume analysis B) factor-rating method C) transportation model D) center-of-gravity method E) make-or-buy analysis

B) factor-rating method

Globalization of the location decision is the result of all EXCEPT which of the following? A) market economics B) higher quality of labor overseas C) ease of capital flow between countries D) high differences in labor costs E) more rapid, reliable travel and shipping

B) higher quality of labor overseas

Deloitte & Touche solved the empty desk problem by: A) assigning permanent desks. B) implementing a "hoteling" program. C) creating open offices. D) no longer allowing employees to work from home. E) reducing the number of allowable sick days per employee.

B) implementing a "hoteling" program.

In assembly-line balancing, cycle time (the ratio of available production time to scheduled production) is the: A) minimum time that a product is allowed at each workstation. B) maximum time that a product is allowed at each workstation. C) inverse of the minimum number of workstations needed. D) sum of all the task times divided by the maximum number of workstations. E) equivalent of the maximum task time among all tasks.

B) maximum time that a product is allowed at each workstation.

The typical goal used when developing a process-oriented layout strategy is to: A) minimize the distance between adjacent departments. B) minimize the material handling costs. C) maximize the number of different tasks that can be performed by an individual machine. D) minimize the level of operator skill necessary. E) maximize job specialization.

B) minimize the material handling costs.

The transportation model, when applied to location analysis: A) minimizes total fixed costs. B) minimizes total production and transportation costs. C) minimizes total transportation costs. D) maximizes revenues. E) minimizes the movement of goods.

B) minimizes total production and transportation costs.

Which one of the following products is most likely made in a job shop environment? A) rolls of newsprint B) paper forms C) television sets D) cigarettes E) canned vegetables

B) paper forms

Governmental attitudes toward issues such as private property, intellectual property, zoning, pollution, and employment stability may change over time. What is the term associated with this phenomenon? A) bureaucratic risk B) political risk C) legislative risk D) judicial risk E) democratic risk

B) political risk

The basic break-even model can be modified to handle more than one product. This extension of the basic model requires: A) price and sales volume for each product. B) price and variable cost for each product, and the percent of sales that each product represents. C) that the firm have very low fixed costs. D) that the ratio of variable cost to price be the same for all products. E) sales volume for each product.

B) price and variable cost for each product, and the percent of sales that each product represents.

Frito-Lay is to ________ focus as Harley Davidson is to ________ focus. A) process, repetitive B) product, repetitive C) repetitive, product D) process, product E) product, mass customization

B) product, repetitive

Which of the following is NOT among the eight determinants of revenue and volume for a service firm? A) quality of management B) shipment cost of finished goods C) purchasing power of the customer-drawing area D) uniqueness of the firm's and the competitors' locations E) competition in the area

B) shipment cost of finished goods

A product-oriented layout would be MOST appropriate for which one of the following businesses? A) fast food B) steel making C) insurance sales D) clothing alterations E) a grocery store

B) steel making

Production and transportation costs are always considered in which of the following location decision methods? A) traffic counts B) transportation model C) purchasing power D) proximity of markets E) clustering

B) transportation model

Basic break-even analysis typically assumes that: A) revenues increase in direct proportion to the volume of production, while costs increase at a decreasing rate as production volume increases. B) variable costs and revenues increase in direct proportion to the volume of production. C) both costs and revenues are made up of fixed and variable portions. D) costs increase in direct proportion to the volume of production, while revenues increase at a decreasing rate as production volume increases because of the need to give quantity discounts. E) All of the above are assumptions in the basic break-even model.

B) variable costs and revenues increase in direct proportion to the volume of production.

A production line is to be designed for a job with four tasks. The task times are 2.4 minutes, 1.4 minutes, 0.9 minutes, and 1.7 minutes. After line balancing, the largest possible assigned cycle time is ________ minutes, and the smallest possible assigned cycle time is ________ minutes. A) 1.8; 1.4 B) 1.6; 0.9 C) 6.4; 2.4 D) 2.4; 0.9 E) 6.4; 0.9

C) 6.4; 2.4

An assembly line consists of 158 tasks grouped into 32 workstations. The sum of all task times is 105 minutes. The largest assigned cycle time is 4 minutes. What is the efficiency of this line? A) 8 percent B) 21 percent C) 82 percent D) 100 percent E) 81 percent

C) 82 percent

An assembly line consists of 21 tasks grouped into 5 workstations. The sum of the 21 task times is 85 minutes. The largest assigned cycle time is 20 minutes. What is the efficiency of this line? A) 4.2 percent B) 17 percent C) 85 percent D) 100 percent E) 21 percent

C) 85 percent

Which of the following statements regarding FedEx is TRUE? A) Its hub in Memphis, Tennessee, was selected because of its low cost. B) Memphis, Tennessee, is the only hub in the company's global flight network. C) FedEx believes the hub system helps reduce mishandling and delays due to better controls. D) FedEx uses a hub system in the United States, but a city-to-city network in other countries. E) Memphis is FedEx's only hub airport in the United States.

C) FedEx believes the hub system helps reduce mishandling and delays due to better controls.

Which of the following assumptions is NOT associated with strategies for goods-producing location decisions? A) Most major costs can be identified explicitly for each site. B) Focus on identifiable costs. C) High customer-contact issues are critical. D) Intangible costs can be evaluated. E) Location is a major determinant of cost.

C) High customer-contact issues are critical.

________ and ________ are to key country success factors as ________ and ________ are to key region success factors. A) Cultural issues, location of markets; site size and cost, zoning restrictions B) Exchange rates, labor availability; site size and cost, environmental impact C) Labor cost, currency risk; land costs, proximity to customers D) Land costs, proximity to customers; labor cost, air and rail systems E) All of the above are accurate relationships.

C) Labor cost, currency risk; land costs, proximity to customers

Which of the following does NOT support the retail layout objective of maximizing customer exposure to products? A) Locate high-draw items around the periphery of the store. B) Use prominent locations for high-impulse and high-margin items. C) Maximize exposure to expensive items. D) Use end-aisle locations. E) Convey the store's mission with the careful positioning of the lead-off department.

C) Maximize exposure to expensive items.

Process X has fixed costs of $10,000 and variable costs of $2.40 per unit. Process Y has fixed costs of $9,000 and variable costs of $2.25 per unit. Which of the following statements is TRUE? A) The crossover point is approximately 6667 units. B) It is impossible for one process to have both of its costs lower than those of another process. C) Process Y is cheaper than process X at all volumes. D) Process X should be selected for very large production volumes. E) Process X is more profitable than process Y and should be selected.

C) Process Y is cheaper than process X at all volumes.

Which of the following is NOT one of the factors complicating the techniques for addressing the fixed-position layout? A) The volume of materials needed is dynamic. B) At different stages of a project, different materials are needed; therefore, different items become critical as the project develops. C) Take times at workstations are dynamic. D) There is limited space at virtually all sites. E) All of the above are complicating factors.

C) Take times at workstations are dynamic.

Lag and straddle strategies for increasing capacity have what main advantage over a leading strategy? A) They are cheaper. B) They are more accurate. C) They delay capital expenditure. D) They increase demand. E) All of the above are advantages.

C) They delay capital expenditure.

What is the primary reason why retailers tend to locate high-draw items around the periphery of the store? A) More shelf space for those popular items is available around the periphery. B) There will be less congestion of customers than there would be in the middle. C) This arrangement will help to maximize customer exposure to other items in the store. D) It is easier to put large advertisement signs on the outside walls right next to the items. E) This arrangement allows customers to travel through the store as quickly as possible.

C) This arrangement will help to maximize customer exposure to other items in the store.

A system using an automated work cell controlled by electronic signals from a common centralized computer facility is called: A) an adaptive control system. B) robotics. C) a flexible manufacturing system. D) an automatic guided vehicle (AGV) system. E) a manufacturing cell.

C) a flexible manufacturing system.

Traffic counts and purchasing power analysis of drawing area are techniques associated with: A) locational cost-volume analysis. B) a manufacturing location decision. C) a retail or professional service location decision. D) the factor-rating method. E) the transportation model.

C) a retail or professional service location decision.

Which one of the following is NOT common to repetitive and product-oriented layouts? A) a high rate of output B) specialized equipment C) ability to adjust to changes in demand D) low unit costs E) standardized products

C) ability to adjust to changes in demand

The major problem addressed by the warehouse layout strategy is: A) minimizing difficulties caused by material flow varying with each product. B) requiring frequent close contact between forklift drivers and item pickers. C) addressing trade-offs between space and material handling. D) balancing product flow from one work station to the next. E) locating the docks near a convenient access point to the closest highway.

C) addressing trade-offs between space and material handling.

A jewelry store is more likely than a jewelry manufacturer to consider ________ in making a location decision. A) transportation costs B) cost of raw materials C) appearance/image of the location D) quality of life E) taxes

C) appearance/image of the location

Product focused processes: A) allow more customization, but are not very efficient. B) are desirable because resource needs increase slowly with the complexity of a process. C) are processes that are specialized for relatively few products or customer groups. D) apply only to service firms, not to manufacturers. E) are profitable because customers demand flexibility, not specialization.

C) are processes that are specialized for relatively few products or customer groups.

Among the following choices, an operations manager might best evaluate political risk of a country by looking at which type of country ranking? A) based on competitiveness B) based on cost of doing business C) based on corruption D) based on magnitude of government social programs E) based on average duration between presidential/prime minister elections

C) based on corruption

A regional bookstore chain wants to build a distribution center that is centrally located for its eight retail outlets. It will most likely employ which of the following tools of analysis? A) assembly line balancing B) load-distance analysis C) center-of-gravity method D) linear programming E) locational cost-volume analysis

C) center-of-gravity method

Which of the following represents a common way to manage capacity in the service sector? A) appointments B) reservations C) changes in staffing levels D) first-come, first-served service rule E) "early bird" specials in restaurants

C) changes in staffing levels

Geographic information systems can assist the location decision by: A) automating center-of-gravity problems. B) computerizing factor-rating analysis. C) combining geography with demographic analysis. D) updating transportation method solutions. E) providing good Internet placement for virtual storefronts.

C) combining geography with demographic analysis.

For which of the following operations would a fixed-position layout be MOST appropriate? A) assembling automobiles B) producing TV sets C) constructing a highway tunnel D) refining of crude oil E) running an insurance agency

C) constructing a highway tunnel

When making a location decision at the region/community level, which of these would be considered? A) government rules, attitudes, stability, incentives B) cultural and economic issues C) cost and availability of utilities D) zoning restrictions E) air, rail, highway, waterway systems

C) cost and availability of utilities

The center-of-gravity method is used primarily to determine what type of locations? A) service locations B) manufacturing locations C) distribution center locations D) supplier locations E) call center locations

C) distribution center locations

Which of the following methods best considers intangible costs related to a location decision? A) crossover methods B) locational cost-volume analysis C) factor-rating method D) the transportation method E) center-of-gravity method

C) factor-rating method

One of the major advantages of process-oriented layouts is: A) high equipment utilization. B) large work-in-process inventories. C) flexibility in equipment and labor assignment. D) smooth and continuous flow of work. E) small work-in-process inventories.

C) flexibility in equipment and labor assignment.

"Operators simply load new programs, as necessary, to produce different products" describes: A) CAD. B) automated guided vehicles. C) flexible manufacturing systems. D) vision systems. E) process control.

C) flexible manufacturing systems.

A product-focused process is commonly used to produce: A) high-volume, high-variety products. B) low-volume, high-variety products. C) high-volume, low-variety products. D) low-variety products at either high- or low-volume. E) high-volume products of either high- or low-variety.

C) high-volume, low-variety products.

A hospital's layout most closely resembles which of the following? A) product oriented B) work cell C) job shop D) project E) retail

C) job shop

A capacity alternative has an initial cost of $50,000 and cash flow of $20,000 for each of the next four years. If the cost of capital is 5 percent, the net present value of this investment is: A) greater than $80,000 but less than $130,000. B) greater than $130,000. C) less than $30,000. D) impossible to calculate, because no interest rate is given. E) impossible to calculate, because variable costs are not known.

C) less than $30,000.

Which of the following is NOT a heuristic rule for assigning tasks to workstations in a product layout? A) longest tasks first B) in order of most number of following tasks C) median tasks first D) shortest tasks first E) in accordance with positional weight

C) median tasks first

A production line is to be designed for a product whose completion requires 21 minutes of work. The factory works 400 minutes per day. Can an assembly line with five workstations make 100 units per day? A) yes, with exactly 100 minutes to spare B) no, but four workstations would be sufficient C) no, it will fall short even with a perfectly balanced line D) yes, but the line's efficiency is very low E) cannot be determined from the information given

C) no, it will fall short even with a perfectly balanced line

Which of the following is most likely to affect the location decision of a service firm rather than a manufacturing firm? A) energy and utility costs B) attitude toward unions C) parking and access D) cost of shipping finished goods E) labor costs

C) parking and access

Three of the four types of processes are: A) goods, services, and hybrids. B) manual, automated, and service. C) process focus, repetitive focus, and product focus. D) modular, continuous, and technological. E) input, transformation, and output.

C) process focus, repetitive focus, and product focus.

Workspace can inspire informal and productive encounters if it balances what three physical and social aspects? A) proximity, privacy, and persuasion B) privacy, persuasion, and permission C) proximity, privacy, and permission D) proximity, persuasion, and permission E) proximity, persuasion, and passion

C) proximity, privacy, and permission

In location planning, environmental regulations, cost and availability of utilities, and taxes are: A) global factors. B) country factors. C) regional/community factors. D) site-related factors. E) none of the above.

C) regional/community factors.

An assembly line is an example of a: A) product-focused process. B) process-focused process. C) repetitive process. D) line process. E) specialized process.

C) repetitive process

A location decision for a traditional department store (e.g., Macy's) would tend to have what type of focus? A) cost focus B) labor focus C) revenue focus D) environmental focus E) education focus

C) revenue focus

Traffic counts and demographic analysis of drawing area are associated with: A) the center-of-gravity method. B) manufacturing location decisions. C) service location decisions. D) the transportation model. E) locational cost-volume analysis.

C) service location decisions.

Tangible costs include which of the following? A) climatic conditions B) availability of public transportation C) taxes D) quality and attitude of prospective employees E) zoning regulations

C) taxes

Adding a complementary product to what is currently being produced is a demand management strategy used when: A) demand exceeds capacity. B) capacity exceeds demand for a product that has stable demand. C) the existing product has seasonal or cyclical demand. D) price increases have failed to bring about demand management. E) efficiency exceeds 100 percent.

C) the existing product has seasonal or cyclical demand.

One fundamental difference between a process chart and a flowchart is that: A) the process chart adds a time dimension to the horizontal axis, while a flowchart is not time-oriented. B) the process chart includes the supply chain, while the flowchart stays within an organization. C) the process chart is more like a table, while the flowchart is more like a schematic diagram. D) the process chart focuses on the customer and on the provider's interaction with the customer, while the flowchart does not deal directly with the customer. E) None of these is true, because a process chart and a flowchart are the same thing.

C) the process chart is more like a table, while the flowchart is more like a schematic diagram.

The assumptions necessary for a successful product-oriented layout include all EXCEPT which of the following? A) adequate volume for high equipment utilization B) standardized product C) volatile product demand D) adequately standardized supplies of raw materials and components E) All of the above are appropriate assumptions.

C) volatile product demand

Which of these factors would be considered when making a location decision at the site level? A) government rules, attitudes, stability, incentives B) cultural and economic issues C) zoning regulations D) cost and availability of utilities E) proximity to raw materials and customers

C) zoning regulations

Which of the following workers is the most productive? A) $50 wages, 10 parts produced B) $10 wages, 1 part produced C) $30 wages, 5 parts produced D) $100 wages, 21 parts produced E) $500 wages, 100 parts produced

D) $100 wages, 21 parts produced

A retailer is considering building a large store. If the local economy experiences expansion, the firm expects the store to earn a $2,000,000 profit next year. If the local economy experiences a contraction, the firm expects the store to lose $400,000 next year. Analysts estimate a 20% chance for the local economy to experience an expansion next year (hence an 80% chance for contraction). What is the expected monetary value (EMV) of building the large store? A) $1,600,000 B) $720,000 C) $2,000,000 D) $80,000 E) $1,520,000

D) $80,000

Fabricators, Inc. wants to increase capacity by adding a new machine. The fixed costs for machine A are $90,000, and its variable cost is $15 per unit. The revenue is $21 per unit. What is the break-even point for machine A? A) $90,000 dollars B) 90,000 units C) $15,000 dollars D) 15,000 units E) 4,286 units

D) 15,000 units

A process layout problem consists of 4 departments, each of which can be assigned to one of four rooms. The number of different solutions to this problem is ________, although all of them may not have different material handling costs. A) 1 B) 4 C) 16 D) 24 E) unknown

D) 24

A full-service restaurant is considering opening a new facility in a specific city. The table below shows its ratings of four factors at each of two potential sites. The score for Gary Mall is ________ and the score for Belt Line is ________. A) 120; 120 B) 22; 24 C) 18; 120 D) 34; 28 E) none of the above

D) 34; 28

A work system has five stations that have process times of 5, 9, 4, 9, and 8. What is the throughput time of the system? A) 4 B) 9 C) 18 D) 35 E) 7

D) 35

Four hundred and eighty minutes of production time are available per day. The schedule calls for the production of 80 units per day. Each unit of the product requires 30 minutes of work. What is the theoretical minimum number of workstations? A) 2 B) 3 C) 4 D) 5 E) 6

D) 5

The Academic Computing Center has five trainers available in its computer labs to provide training sessions to students. Assume that the design capacity of the system is 1900 students per semester and that effective capacity equals 90% of design capacity. If the number of students who actually got their orientation session is 1500, what is the efficiency of the system? A) 1350 students B) 1710 students C) 78.9% D) 87.7% E) 90%

D) 87.7%

TOC strives to reduce the effect of constraints by: A) offloading work from constrained workstations. B) increasing constrained workstation capability. C) changing workstation order to reduce throughput time. D) A and B E) A, B, and C

D) A and B

Which one of the following technologies is used ONLY for material handling, NOT actual production or assembly? A) robots B) CNC C) CAD D) AGVs E) FMS

D) AGVs

) Which of the following provides automatic placement and withdrawal of parts and products into and from designated places in a warehouse? A) AGV B) CAD/CAM C) CIM D) ASRS E) FMS

D) ASRS

Which of the following is TRUE regarding vision systems? A) They are consistently accurate. B) They are modest in cost. C) They do not become bored. D) All of the above are true. E) None of the above is true.

D) All of the above are true

Which of the following is true regarding the concept of flexibility? A) It is the ability to respond with little penalty in time, cost, or customer value. B) It may be accomplished with digitally controlled equipment. C) It may involve modular or movable equipment. D) All of the above are true. E) None of the above is true.

D) All of the above are true.

Which of the following is FALSE regarding capacity expansion? A) "Average" capacity sometimes leads demand, sometimes lags it. B) If "lagging" capacity is chosen, excess demand can be met with overtime or subcontracting. C) Total cost comparisons are a rather direct method of comparing capacity alternatives. D) Capacity may only be added in large chunks. E) In manufacturing, excess capacity can be used to do more setups, shorten production runs, and drive down inventory costs.

D) Capacity may only be added in large chunks.

Why is Northern Mexico used as a cluster for electronics firms? A) high traffic flows B) venture capitalists located nearby C) natural resources of land and climate D) NAFTA E) high per capita GDP

D) NAFTA

Which of the following technologies could enable a cashier to scan the entire contents of a shopping cart in seconds? A) ASRS B) AGV C) CAD/CAM D) RFID E) FMS

D) RFID

Which of the following is TRUE regarding fabrication lines? A) They are the same thing as assembly lines. B) They are the same thing as focused factories. C) They are a special type of process-oriented layout. D) They are usually machine-paced as opposed to worker-paced. E) They require completely different line balancing techniques than do assembly lines.

D) They are usually machine-paced as opposed to worker-paced.

The fixed-position layout would be MOST appropriate in which of the following settings? A) a fast-food restaurant B) a doctor's office C) a casual dining restaurant D) a cruise ship assembly facility E) a washing machine assembly line

D) a cruise ship assembly facility

Which of the following is NOT an information requirement for solving a load-distance problem to design a process layout? A) a list of departments or work centers B) a projection of work flows between the work centers C) the distance between locations D) a list of product cycle times E) the cost per unit of distance to move loads

D) a list of product cycle times

Intangible costs include which of the following? A) quality of prospective employees B) quality of education C) availability of public transportation D) all of the above E) none of the above

D) all of the above

In assembly-line balancing, the theoretical minimum number of workstations is: A) the ratio of the sum of all task times to cycle time. B) always (when a fraction) rounded upward to the next larger integer value. C) not always possible to reach when tasks are actually assigned to stations. D) all of the above. E) none of the above.

D) all of the above.

In a product-oriented layout, what is the process of deciding how to assign tasks to workstations? A) station balancing B) process balancing C) task allocation D) assembly-line balancing E) work allocation

D) assembly-line balancing

Which of the following costs would be incurred even if no units were produced? A) raw material costs B) direct labor costs C) transportation costs D) building rental costs E) purchasing costs

D) building rental costs

Cycle time is computed as: A) desired output divided by the daily operating time. B) daily operating time divided by the product of desired output and the sum of job times. C) the product of desired output and the sum of job times divided by daily operating time. D) daily operating time divided by the scheduled output. E) 1.00 minus station time.

D) daily operating time divided by the scheduled output

Ambient conditions; spatial layout and functionality; and signs, symbols, and artifacts are all: A) indicators of imbalance on an assembly line. B) indicators that cross-docking has been successful. C) elements of customization in a warehouse layout. D) elements of servicescapes. E) elements of successful office layouts.

D) elements of servicescapes.

What is sometimes referred to as rated capacity? A) efficiency B) utilization C) effective capacity D) expected output E) design capacity

D) expected output

Service blueprinting: A) provides the basis to negotiate prices with suppliers. B) mimics the way people communicate. C) determines the best time for each step in the process. D) focuses on the provider's interaction with the customer. E) uses the schematic of a house to diagram a service process.

D) focuses on the provider's interaction with the customer.

Net present value will be greater: A) as a fixed set of cash receipts occurs later rather than earlier. B) if the future value of a cash flow is smaller. C) for one end-of-year receipt of $1200 than for twelve monthly receipts of $100 each. D) for a 4% discount rate than for a 6% discount rate. E) All of the above are true.

D) for a 4% discount rate than for a 6% discount rate.

Advances in technology: A) have impacted the manufacturing sector only. B) have had only a limited impact on services. C) have failed to change the level of customer interaction with an organization. D) have had a dramatic impact on customer interaction with services and with products. E) have dramatically changed health care, but have not changed retailing.

D) have had a dramatic impact on customer interaction with services and with products.

A job shop is an example of a(n): A) repetitive process. B) continuous process. C) line process. D) intermittent process. E) specialized process.

D) intermittent process.

The most common tactic followed in process-layout planning is to arrange departments or work centers so they: A) minimize the cost of skilled labor. B) maximize the machine utilization. C) are equally allocated within the available space. D) minimize the costs of material handling. E) produce a perfectly balanced assembly line.

D) minimize the costs of material handling.

The major problem addressed by the process-oriented layout strategy is: A) the movement of material to the limited storage areas around the site. B) how to design a continuous flow process. C) the provision of low-cost storage with low-cost material handling. D) minimizing difficulties caused by material flow varying with each product. E) balancing product flow from one work station to the next.

D) minimizing difficulties caused by material flow varying with each product.

Which of the following constitutes a major trend influencing office layouts? A) downsizing B) globalization C) environmental issues D) off-site employees E) health issues

D) off-site employees

) Because problems with fixed-position layouts are so difficult to solve well onsite, operations managers: A) virtually never employ this layout strategy. B) utilize this approach only for construction projects such as bridges and office towers. C) increase the size of the site. D) often complete as much of the project as possible offsite. E) utilize this layout only for defense contractors.

D) often complete as much of the project as possible offsite.

Which of the following is a common heuristic for assembly line balancing? A) first come, first served B) least preceding tasks C) earliest due date first D) ranked positional weight E) most preceding tasks

D) ranked positional weight

Break-even analysis can be used by a firm that produces more than one product, but: A) the results are estimates, not exact values. B) the firm must allocate some fixed cost to each of the products. C) each product has its own break-even point. D) the break-even point depends upon the proportion of sales generated by each of the products. E) None of these statements is true.

D) the break-even point depends upon the proportion of sales generated by each of the products.

One of the similarities between process focus and mass-customization is: A) the volume of outputs. B) the use of modules. C) many departments and many routings. D) the variety of outputs. E) All of the above are similarities.

D) the variety of outputs.

The crossover point is that production quantity where: A) variable costs of one process equal the variable costs of another process. B) fixed costs of a process are equal to its variable costs. C) total costs equal total revenues for a process. D) total costs for one process equal total costs for another process. E) the process no longer loses money.

D) total costs for one process equal total costs for another process.

Harley Davidson: A) utilizes job shops to make each of its modules. B) uses product focused manufacturing. C) uses a large number of modules to build a small number of different bikes. D) uses work cells to feed its assembly line. E) All of the above are true.

D) uses work cells to feed its assembly line.

"A special arrangement of machinery and equipment to focus on production of a single product or group of related products" describes what layout type? A) fixed-position layout B) intermittent production C) job shop D) work cell E) warehouse layout

D) work cell

Which of the following is usually NOT one of the top considerations in choosing a country for a facility location? A) availability of labor and labor productivity B) exchange rates C) attitude of governmental units D) zoning regulations E) location of markets

D) zoning regulations

Capacity decisions are based on technological concerns, not demand forecasts.

False

What is a common method used to increase capacity with a lag strategy? A) overtime B) subcontracting C) new facilities D) new machinery E) A and B

E) A and B

Which of the following companies use a mass customization approach? A) Dell B) Align Technology C) Frito-Lay D) Arnold Palmer hospital E) A and B

E) A and B

High fixed costs and low variable costs are typical of which approach? A) product B) process C) mass customization D) repetitive E) A and C

E) A and C

Which of the following techniques is NOT a technique for dealing with a bottleneck? A) Schedule throughput to match the capacity of the bottleneck. B) Increase the capacity of the constraint. C) Have cross-trained employees available to keep the constraint at full operation. D) Develop alternate routings. E) All are techniques for dealing with bottlenecks.

E) All are techniques for dealing with bottlenecks.

A quasi-custom product: A) gets its apparent customization from the combinations available from a small number of modules. B) is often the output of repetitive focus facilities. C) is a valid description of a fast food sandwich. D) only applies in services. E) All but D are true.

E) All but D are true.

Which of the following is a disadvantage of product-oriented layout? A) There is a lack of flexibility necessary for handling a variety of products. B) High volume is required because of the large investment needed to establish the process. C) Work stoppage at any one point can tie up the whole operation. D) There is a lack of flexibility necessary for handling a variety of production rates. E) All of the above are disadvantages of product-oriented layouts.

E) All of the above are disadvantages of product-oriented layouts.

Which of the following is NOT a retail layout practice? A) Locate the high-draw items around the periphery of the store. B) Distribute power items throughout the store. C) Use end-aisle locations to maximize product exposure. D) Use prominent locations for high-impulse and high-margin items. E) All of the above are retail layout practices.

E) All of the above are retail layout practices.

FedEx chose Memphis, Tennessee, as its U.S. hub because: A) the city is in the center of the United States, geographically. B) the airport has relatively few hours of bad weather closures. C) it needed a means to reach cities to which it did not have direct flights. D) the firm believed that a hub system was superior to traditional city-to-city flight scheduling. E) All of the above are true.

E) All of the above are true.

Value-stream mapping: A) is a variation of time-function mapping. B) examines the supply chain to determine where value is added. C) extends time function mapping back to the supplier. D) starts with the customer and works backwards. E) All of the above are true.

E) All of the above are true.

Which of the following is not one of the four principles of bottleneck management? A) Release work orders to the system at the bottleneck's capacity pace. B) Lost time at the bottleneck is lost system capacity. C) Increasing capacity at non-bottleneck stations is a mirage. D) Increased bottleneck capacity is increased system capacity. E) Bottlenecks should be moved to the end of the system process.

E) Bottlenecks should be moved to the end of the system process.

Of the four approaches to capacity expansion, the approach that "straddles" demand: A) uses incremental expansion. B) uses one-step expansion. C) at some times leads demand, and at other times lags. D) works best when demand is not growing but is stable. E) Choices A and C are both correct.

E) Choices A and C are both correct.

Which of the following statements regarding "proximity" in the location decision is FALSE? A) Service organizations find that proximity to market is the most critical primary location factor. B) Manufacturers want to be near customers when their product is bulky, heavy, or fragile. C) Perishability of raw materials is a good reason for manufacturers to locate near the supplier, not the customer. D) Reduction in bulk is a good reason for a manufacturer to locate near the supplier. E) Clustering among fast food chains occurs because they need to be near their labor supply.

E) Clustering among fast food chains occurs because they need to be near their labor supply.

What describes a system that stores and displays information that can be linked to a geographic location? A) AIS B) LOC C) GLOC D) LIS E) GIS

E) GIS

The theory of constraints has its origins in: A) linear programming theory. B) the theory of economies of scale. C) material requirements planning. D) the theory of finite capacity planning. E) Goldratt and Cox's book, The Goal: A Process of Ongoing Improvement.

E) Goldratt and Cox's book, The Goal: A Process of Ongoing Improvement.

Which of the following is TRUE of random stocking? A) Because items are stocked randomly, accurate inventory records are not necessary. B) Its results always minimize handling costs. C) Products have their own permanent storage spot. D) Each pick can be of only one product. E) None of the above is true.

E) None of the above is true.

As described in the book Aerotropolis, nowadays location decisions worldwide are often being based on what? A) rivers B) rail hubs C) interstate highways D) ports E) airports

E) airports

A good layout requires determining: A) material handling equipment. B) capacity and space requirements. C) environment and aesthetics. D) cost of moving between various work areas. E) all of the above

E) all of the above

Process redesign: A) is the fundamental rethinking of business processes. B) is sometimes called process reengineering. C) tries to bring about dramatic improvements in performance. D) often focuses on activities that cross functional lines. E) all of the above

E) all of the above

Slotting fees: A) are charged by retailers to stock a product. B) can amount to as much as $25,000. C) are not a part of Walmart's business practices. D) can reduce the ability of small businesses to introduce new products. E) all of the above

E) all of the above

Which of the following is among the eight determinants of revenue and volume for a service firm? A) uniqueness of the firm's and the competitors' locations B) quality of the competition C) quality of management D) purchasing power of the customer-drawing area E) all of the above

E) all of the above

Location analysis techniques typically employed by service organizations include: A) the factor rating method. B) the center-of-gravity method. C) purchasing power analysis of area. D) traffic counts. E) all of the above.

E) all of the above.

Which of the following reduces product handling, inventory, and facility costs, but requires both (1) tight scheduling and (2) accurate inbound product information? A) phantom-docking B) random stocking C) ASRS D) customizing E) cross-docking

E) cross-docking

In the mass service and service factory quadrants of the service process matrix, the operations manager could focus on all of the following except: A) automation. B) standardization. C) tight quality control. D) removing some services. E) customization.

E) customization.

Community attitudes, zoning restrictions, and quality of labor force are likely to be considered in which of the following location decision methods? A) transportation method B) locational cost-volume analysis C) center-of-gravity method D) simulation E) factor-rating method

E) factor-rating method

What have restaurants such as Steakhouses and Stacked Restaurants replaced their traditional paper menus with? A) spoken descriptions B) singing descriptions C) menus painted on the walls D) index cards containing a picture of each item E) iPad menus

E) iPad menus

Net present value: A) is gross domestic product less depreciation. B) is sales volume less sales and excise taxes. C) is profit after taxes. D) ignores the time value of money. E) is the discounted value of a series of future cash receipts.

E) is the discounted value of a series of future cash receipts.

When making a location decision at the country level, which of these would be considered? A) corporate desires B) land/construction costs C) air, rail, highway, waterway systems D) zoning restrictions E) location of markets

E) location of markets

Which of the following is one of the main advantages of a product-oriented layout? A) high customer exposure rates B) employability of highly skilled labor C) high flexibility D) low capital cost E) low variable cost per unit

E) low variable cost per unit

Which of the following is not one of the strategies for improving service productivity? A) self-service B) automation C) scheduling D) separation E) mass customization

E) mass customization

Retail layouts are based on the notion that: A) handling costs should be minimized. B) storage costs should be minimized. C) average customer visit duration should be maximized. D) space used should be minimized. E) maximizing customer exposure rate maximizes sales and profit.

E) maximizing customer exposure rate maximizes sales and profit.

The main goal of retail layout is: A) minimizing material handling cost. B) minimizing customer confusion regarding location of items. C) minimizing storage costs. D) minimizing space required. E) maximizing profitability per square foot of floor space.

E) maximizing profitability per square foot of floor space.

The central problem in product-oriented layout planning is: A) minimizing material handling within workstations. B) minimizing labor movement between workstations. C) equalizing the space allocated to the different workstations. D) maximizing equipment utilization. E) minimizing the imbalance in the workloads among workstations.

E) minimizing the imbalance in the workloads among workstations.

What layout strategy deals with low-volume, high-variety production? A) fixed-position layout B) retail layout C) warehouse layout D) office layout E) process-oriented layout

E) process-oriented layout

The ________ layout's main objective is to equalize the task time for each station. A) work cell B) fixed position C) office D) job shop E) product oriented

E) product oriented

Which of these factors would be considered when making a location decision at the region/community level? A) government rules, attitudes, stability, incentives B) cultural and economic issues C) zoning restrictions D) environmental impact issues E) proximity to raw materials and customers

E) proximity to raw materials and customers

Which of the following industries is most likely to have low equipment utilization? A) auto manufacturing B) commercial baking C) television manufacturing D) steel manufacturing E) restaurants

E) restaurants

The disadvantages of process-oriented layout come from: A) the use of special purpose equipment. B) machine maintenance, which tends to seriously degrade the capacity of the entire system. C) the use of specialized material handling equipment. D) the need for stable demand. E) the flexibility of general-purpose equipment.

E) the flexibility of general-purpose equipment.

Which of the following is NOT one of the predictive variables chosen by the profitability regression model used by La Quinta Inns? A) the price of the inn B) median income levels C) the state population per inn D) the location of nearby colleges E) the number of inns in a region

E) the number of inns in a region

On the crossover chart where the costs of two or more location alternatives have been plotted, the quantity at which two cost curves cross is the quantity at which: A) fixed costs are equal for two alternative locations. B) variable costs are equal for two alternative locations. C) total costs are equal for all alternative locations. D) fixed costs equal variable costs for one location. E) total costs are equal for two alternative locations.

E) total costs are equal for two alternative locations.

Break-even is the number of units at which: A) total revenue equals price times quantity. B) total revenue equals total variable cost. C) total revenue equals total fixed cost. D) total profit equals total cost. E) total revenue equals total cost.

E) total revenue equals total cost.

Balancing low-cost storage with low-cost material handling is important in which of the following? A) fixed-position layout B) process-oriented layout C) office layout D) repetitive and product-oriented layout E) warehouse layout

E) warehouse layout

________ is actual output as a percent of effective capacity.

Efficiency

A focused work center is well suited to the production of a large family of products requiring similar processing, even if their demands are not very stable.

False

Break-even analysis identifies the volume at which fixed costs and revenue are equal.

False

Break-even analysis is a powerful analytical tool, but is useful only when the organization produces a single product.

False

________ represent an organization's attempt to gain increased efficiency through specialization, which can include, for example, concentrating on certain classes of customers.

Focused processes

________ is a means of determining the discounted value of a series of future cash receipts.

Net present value or NPV

Flexible manufacturing systems, because of easily changed control programs, are able to perform such tasks as manufacturing one-of-a-kind parts economically

True

A firm's process strategy is its approach to transforming resources into goods and services.

True

A process-oriented layout is the traditional way to support a product differentiation strategy.

True

A useful tactic for increasing capacity is to redesign a product in order to facilitate more throughput

True

A value-stream map includes both (1) inventory quantities, and (2) symbols for customers and suppliers.

True

Automated storage and retrieval systems are commonly used in distribution facilities of retailers.

True

Category management is the use of computer software to evaluate the profitability of various merchandising plans for hundreds of categories.

True

Cross-docking processes items as they are received, rather than placing them in storage.

True

Cycle time is the maximum time that the product is allowed at each workstation.

True

Design capacity is the theoretical maximum output of a system in a given period under ideal conditions.

True

Expected output is sometimes referred to as rated capacity.

True

Fixed costs are those costs that continue even if no units are produced.

True

In process-focused facilities, utilization of facilities is low.

True

Intermittent processes are organized around processes.

True

Job lots are groups or batches of parts processed together.

True

Line employees need the knowledge of TQM tools.

True

Lists have been developed that rank countries on issues such as "competitiveness" and "corruption."

True

One drawback of a product-oriented layout is that work stoppage at any one point ties up the whole operation.

True

One guideline for a retail layout is to locate high-draw items around the periphery of the store.

True

One guideline for determining the arrangement and space allocation of a retail store is to place high-impulse and high-margin items in prominent locations.

True

One limitation of the net present value approach to investments is that investments with identical net present values may have very different cash flows.

True

One reason for a firm locating near its competitors is the presence of a major resource it needs.

True

One use of camera-and-computer-based vision systems is to replace humans doing tedious and error-prone visual inspection activities.

True

Optical checkout scanners and ATMs are examples of technology's impact on services.

True

Service blueprinting is a process analysis technique that focuses on the customer and the provider's interaction with the customer.

True

Service firms choose locations based, in part, on the revenue potential of a site.

True

The assembly line is a classic example of a repetitive process.

True

The graphic approach to locational cost-volume analysis displays the range of volume over which each location is preferable.

True

The most common tactic to arrange departments in a process-oriented layout is to minimize material handling costs.

True

The objective of layout strategy is to develop an effective and efficient layout that will meet the firm's competitive requirements.

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

The term focused processes refers to the quest for increased efficiency, whether in goods or services, that results from specialization.

True

The theory of constraints is a body of knowledge that deals with anything that limits an organization's ability to achieve its goals.

True

Time-function mapping is a flowchart with time added to the horizontal axis.

True

When selecting new equipment and technology, decision makers look for flexibility—the ability to respond with little penalty in time, cost, or customer value.

True

In the service sector, scheduling customers is a type of ________ management, while scheduling the workforce is a type of ________.

demand; capacity

Enlarging employee jobs so that the added responsibility and authority is moved to the lowest level possible in the organization is called ________.

employee empowerment

A(n) ________ line is a machine-paced product-oriented facility for building components.

fabrication

The ________ method is popular because a wide variety of factors, from education to recreation to labor skills, can be objectively included.

factor-rating

The project remains in one place and workers and equipment come to that one work area in a(n) ________ layout.

fixed-position

Databases containing such variables as street maps, utilities, population age and income, and the software that analyzes such data for location decisions, are referred to as ________.

geographic information systems or GIS

Labor cost per unit is also referred to as ________.

labor content

A(n) ________ groups workers, their equipment, and spaces/offices to provide for comfort, safety, and movement of information.

office layout

The ________ uses non-numeric "closeness" ratings to determine which departments should be located near one another and which departments should be kept farther apart.

office relationship chart or relationship chart

The strategy for improving service productivity that customizes at delivery, rather than at production, is ________.

postponement

A group of employees that meet on a regular basis with a facilitator to solve work-related problems in their work area is a(n) ________.

quality circle

The process strategy that is organized around processes to facilitate low-volume, high-variety processes is called a(n) ________.

process focus

An organization's approach to transforming resources into goods and services is called its ________.

process strategy

The capacity planning strategy that delays adding capacity until capacity is below demand, then adds a capacity increment so that capacity is above demand, is said to ________ demand.

straddle

The ________ is used to determine the best pattern of shipments from several points of supply to several points of demand.

transportation model

A special form of time-function mapping, which goes beyond the organization into its supply chain, is ________.

value-stream mapping

A(n) ________ is a special product-oriented arrangement of machines and personnel in what is ordinarily a process-oriented facility.

work cell

Quality can improve profitability by reducing costs. Which of the following is not an aspect of reduced costs by quality improvements? A) flexible pricing B) increased productivity C) lower rework and scrap costs D) lower warranty costs E) All of the above are aspects of reduced costs by quality improvements.

A) flexible pricing

The process improvement technique that sorts the vital few from the trivial many is: A) Taguchi analysis. B) Pareto analysis. C) benchmarking. D) Deming analysis. E) Yamaguchi analysis.

B) Pareto analysis.

Total quality management emphasizes: A) the responsibility of the quality control staff to identify and solve all quality-related problems. B) a commitment to quality that goes beyond internal company issues to suppliers and customers. C) a system where strong managers are the only decision makers. D) a process where mostly statisticians get involved. E) ISO 14000 certification.

B) a commitment to quality that goes beyond internal company issues to suppliers and customers.

"Quality lies in the eyes of the beholder" is: A) an unrealistic definition of quality. B) a user-based definition of quality. C) a manufacturing-based definition of quality. D) a product-based definition of quality. E) the definition of quality proposed by the American Society for Quality.

B) a user-based definition of quality

PDCA is most often applied with regard to which aspect of TQM? A) Six Sigma B) employee empowerment C) continuous improvement D) benchmarking E) JIT

C) continuous improvement

A Three Sigma program has how many defects per million? A) 34 B) 3 C) 3 times the standard deviation D) 2700 E) 1500

D) 2700

A manager tells her production employees, "It's no longer good enough that your work falls anywhere within the specification limits. I need your work to be as close to the target value as possible." Her thinking is reflective of: A) internal benchmarking. B) Six Sigma. C) ISO 9000. D) Taguchi concepts. E) process control charts.

D) Taguchi concepts.

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 in half. B) The specification limits will be moved twice as far from the mean. C) The average number of defects will be cut by 99.9997%. D) The average number of defects will be cut by 99.87%. E) The average number of defects will be cut by 99.73%.

D) The average number of defects will be cut by 99.87%.

Which of the determinants of service quality involves performing the service right the first time? A) access B) courtesy C) credibility D) reliability E) responsiveness

D) reliability

Kaizen is a Japanese term meaning: A) a foolproof mechanism. B) just-in-time (JIT). C) a fishbone diagram. D) setting standards. E) continuous improvement.

E) continuous improvement.

All of the following costs are likely to decrease as a result of better quality EXCEPT: A) customer dissatisfaction costs. B) inspection costs. C) scrap costs. D) warranty and service costs. E) maintenance costs.

E) maintenance costs.

What refers to training and empowering frontline workers to solve a problem immediately? A) just-in-time B) poka-yoke C) benchmarking D) kaizen E) service recovery

E) service recovery

Continuous improvement is based on the philosophy that any aspect of an operation can be improved.

True

Improved quality can increase profitability via allowing flexible pricing.

True

Internal failure costs are associated with scrap, rework, and downtime.

True

A checklist is a type of: A) poka-yoke. B) kaizen. C) kanban. D) Pareto chart E) flowchart

A) poka-yoke.

If a sample of parts is measured and the mean of the measurements is outside the control limits, the process is: A) in control, but not capable of producing within the established control limits. B) out of control and the process should be investigated for assignable variation. C) within the established control limits with only natural causes of variation. D) monitored closely to see if the next sample mean will also fall outside the control limits. E) none of the above.

B) out of control and the process should be investigated for assignable variation

________ selects a demonstrated standard of performance that represents the very best performance for a process or an activity.

Benchmarking

Pareto charts are used to: A) identify inspection points in a process. B) outline production schedules. C) organize errors, problems, or defects. D) show material flow.

C) organize errors, problems, or defects

Which of the following statements regarding Arnold Palmer Hospital is FALSE? A) The hospital uses a wide range of quality management techniques. B) The culture of quality at the hospital includes employees at all levels. C) The hospital scores very highly in national studies of patient satisfaction. D) The hospital's high quality is measured by low readmission rates, not patient satisfaction. E) The design of patient rooms, even wall colors, reflects the hospital's culture of quality.

D) The hospital's high quality is measured by low readmission rates, not patient satisfaction.

"The employee cannot produce products that on average exceed the quality of what the process is capable of producing" expresses a basic philosophy in the writings of: A) Vilfredo Pareto. B) Armand Feigenbaum. C) Joseph M. Juran. D) W. Edwards Deming. E) Philip B. Crosby.

D) W. Edwards Deming.

In his book, Safe Patients, Smart Hospitals, Dr. Peter Pronovost emphasizes the use of what tool to reduce catheter infections? A) a Pareto chart B) a flowchart C) a cause-and-effect diagram D) a checklist E) a statistical process control chart

D) a checklist

To become ISO 9000 certified, organizations must: A) document quality procedures. B) have an onsite assessment. C) have an ongoing series of audits of their products or service. D) all of the above E) none of the above

D) all of the above

A successful TQM program incorporates all EXCEPT which of the following? A) continuous improvement B) employee involvement C) benchmarking D) centralized decision-making authority E) JIT

D) centralized decision-making authority

________ is the Japanese word for the ongoing process of unending improvement.

Kaizen

A Six Sigma program has how many defects per million? A) 3.4 B) 34 C) 1000 D) 6 times the standard deviation E) 2700

A) 3.4

If 1 million passengers pass through the St. Louis Airport with checked baggage each month, a successful Six Sigma program for baggage handling would result in how many passengers with misplaced luggage? A) 3.4 B) 6.0 C) 34 D) 2700 E) 6 times the monthly standard deviation of passengers

A) 3.4

A quality circle holds a brainstorming session and attempts to identify the factors responsible for flaws in a product. Which tool do you suggest they use to organize their findings? A) Ishikawa diagram B) Pareto chart C) flowchart D) control charts E) activity chart

A) Ishikawa diagram

PDCA, developed by Shewhart, stands for which of the following? A) Plan-Do-Check-Act B) Plan-Develop-Check-Accept C) Problem-Develop Solution-Check-Act D) Problem-Do-Continue-Act E) Prepare-Develop-Create-Assess

A) Plan-Do-Check-Act

Which of the following statements regarding "Six Sigma" is TRUE? A) The term has two distinct meanings-one is statistical; the other is a comprehensive quality system. B) Six Sigma means that about 94 percent of a firm's output is free of defects. C) The Six Sigma program was developed by Toyota in the 1970s. D) The Six Sigma program is for manufacturing firms and is not applicable to services. E) Six Sigma certification is granted by the International Standards Organization (ISO).

A) The term has two distinct meanings-one is statistical; the other is a comprehensive quality system.

Which of the following is FALSE regarding control charts? A) Values above the upper control limits 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. D) Control charts plot data over time.

A) Values above the upper control limits imply that the product's quality is exceeding expectations.

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 scatter diagram. C) a quality loss function. D) a cause-and-effect diagram. E) a flowchart.

A) a Pareto chart.

A fishbone chart is also known as a: A) cause-and-effect diagram. B) poka-yoke diagram. C) Kaizen diagram. D) Kanban diagram. E) Taguchi diagram.

A) cause-and-effect diagram.

A recent consumer survey conducted for a car dealership indicates that, when buying a car, customers are primarily concerned with the salesperson's ability to explain the car's features, the salesperson's friendliness, and the dealer's honesty. The dealership should be ESPECIALLY concerned with which determinants of service quality? A) communication, courtesy, and credibility B) competence, courtesy, and security C) competence, responsiveness, and reliability D) communication, responsiveness, and reliability E) understanding/knowing customer, responsiveness, and reliability

A) communication, courtesy, and credibility

The goal of inspection is to: A) detect a bad process immediately. B) add value to a product or service. C) correct deficiencies in products. D) correct system deficiencies. E) all of the above

A) detect a bad process immediately.

Regarding the quality of design, production, and distribution of products, an ethical requirement for management is to: A) determine whether any of the organization's stakeholders are being wronged by poor quality products. B) gain ISO 9000 certification for the organization. C) obtain a product safety certificate from the Consumer Product Safety Commission. D) have the organization's legal staff write disclaimers in the product instruction booklets. E) compare the cost of product liability to the external failure cost.

A) determine whether any of the organization's stakeholders are being wronged by poor quality products.

A hospital benchmarked against Ferrari Racing in an effort to: A) improve patient handoff quality. B) increase surgery prep time. C) lengthen surgery duration. D) reduce the number of doctors. E) all of the above

A) improve patient handoff quality

The "four Ms" of cause-and-effect diagrams are: A) material, machinery/equipment, manpower, and methods. B) material, methods, men, and mental attitude. C) named after four quality experts. D) material, management, manpower, and motivation. E) mentality, motivation, management, and manpower.

A) material, machinery/equipment, manpower, and methods.

Costs of dissatisfaction, repair costs, and warranty costs are elements of cost in the: A) quality loss function. B) Pareto chart. C) ISO 9000 quality cost calculator. D) process chart. E) Ishikawa diagram.

A) quality loss function

Stakeholders who are affected by the production and marketing of poor quality products include: A) stockholders, employees, and customers. B) suppliers and creditors, but not distributors. C) only stockholders, creditors, and owners. D) suppliers and distributors, but not customers. E) only stockholders and organizational executives and managers.

A) stockholders, employees, and customers.

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 or 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) quality loss function B) cause-and-effect diagram C) scatter diagram D) histogram E) process control chart

B) cause-and-effect diagram

One of Britain's largest children's hospitals working with Ferrari Racing is an example of: A) internal benchmarking. B) external benchmarking. C) Taguchi concepts. D) employee empowerment. E) corporate responsibility.

B) external benchmarking.

Among the tools of TQM, the tool ordinarily used to aid in understanding the sequence of events through which a product travels is a: A) Pareto chart. B) flowchart. C) check sheet. D) Taguchi map. E) poka-yoke.

B) flowchart

Poka-yoke is the Japanese term for: A) card. B) foolproof. C) continuous improvement. D) fishbone diagram. E) just-in-time production.

B) foolproof.

Marketing issues such as advertising, image, and promotion are important to quality because: A) they define for consumers the tangible elements of a service. B) the intangible attributes of a product (including any accompanying service) may not be defined by the consumer. C) they educate consumers on how to use the product. D) they make the product seem more valuable than it really is. E) they raise expenses and therefore decrease profitability.

B) the intangible attributes of a product (including any accompanying service) may not be defined by the consumer.

Three broad categories of definitions of quality are: A) product quality, service quality, and organizational quality. B) user based, manufacturing based, and product based. C) internal, external, and prevention. D) low-cost, response, and differentiation. E) Pareto, Shewhart, and Deming.

B) user based, manufacturing based, and product based.

"Quality Is Free," meaning that the costs of poor quality have been understated, is the work of: A) W. Edwards Deming. B) Joseph M. Juran. C) Philip B. Crosby. D) Crosby, Stills, and Nash. E) Armand Feigenbaum.

C) Philip B. Crosby.

Which of the following statements is NOT true? A) Self-promotion is not a substitute for quality products. B) Inferior products harm a firm's profitability and a nation's balance of payments. C) Product liability transfers from the manufacturer to the retailer once the retailer accepts delivery of the product. D) Quality-be it good or bad-will show up in perceptions about a firm's new products, employment practices, and supplier relations. E) Legislation such as the Consumer Product Safety Act sets and enforces product standards by banning products that do not reach those standards.

C) Product liability transfers from the manufacturer to the retailer once the retailer accepts delivery of the product.

"Making it right the first time" is: A) an unrealistic definition of quality. B) a user-based definition of quality. C) a manufacturing-based definition of quality. D) a product-based definition of quality. E) the definition of quality proposed by the American Society for Quality

C) a manufacturing-based definition of quality.

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) continuous improvement. B) employee empowerment. C) benchmarking. D) copycatting. E) patent infringement.

C) benchmarking.

Which of the determinants of service quality involves having the customer's best interests at heart? A) access B) courtesy C) credibility D) responsiveness E) tangibles

C) credibility

Building high-morale organizations and building communication networks that include employees are both elements of: A) ISO 9000 certification. B) Six Sigma certification. C) employee empowerment. D) Taguchi methods. E) the tools of TQM.

C) employee empowerment.

________ are graphical presentations of data over time that show upper and lower control limits for processes we want to control.

Control charts

Companies with the highest levels of quality are how many times more productive than their competitors with the lowest quality levels? A) 2 B) 3 C) 4 D) 5 E) None of the above because quality has no impact on productivity (units/labor hr.).

D) 5

GE's recall of 3.1 million dishwashers cost the company more in repairs than the value of the actual dishwashers. This is an example of which quality principle? A) PDCA B) internal failure costs C) appraisal costs D) cost of poor quality is underestimated E) prevention costs

D) cost of poor quality is underestimated

Which of the four major categories of quality costs is particularly hard to quantify? A) prevention costs B) appraisal costs C) internal failure costs D) external failure costs E) None is hard to quantify.

D) external failure costs

When sample measurements falls inside the control limits, it means that: A) each unit manufactured is good enough to sell. B) the process limits cannot be determined statistically. C) the process output exceeds the requirements. D) if there is no other pattern in the samples, the process is in control. E) the process output does not fulfill the requirements.

D) if there is no other pattern in the samples, the process is in control.

According to the manufacturing-based definition of quality: A) quality is the degree of excellence at an acceptable price and the control of variability at an acceptable cost. B) quality depends on how well the product fits patterns of consumer preferences. C) even though quality cannot be defined, you know what it is. D) quality is the degree to which a specific product conforms to standards. E) quality lies in the eyes of the beholder.

D) quality is the degree to which a specific product conforms to standards.

A quality loss function includes all of the following costs EXCEPT: A) the cost of scrap and repair. B) the cost of customer dissatisfaction. C) inspection, warranty, and service costs. D) sales costs. E) costs to society.

D) sales costs.

Based on his 14 Points, Deming is a strong proponent of: A) inspection at the end of the production process. B) an increase in numerical quotas to boost productivity. C) looking for the cheapest supplier. D) training and knowledge. E) all of the above.

D) training and knowledge.

A successful quality strategy features which of the following elements? A) an organizational culture that fosters quality B) an understanding of the principles of quality C) engaging employees in the necessary activities to implement quality D) A and C E) A, B, and C

E) A, B, and C

Techniques for building employee empowerment include: A) building communication networks that include employees. B) developing open, supportive supervisors. C) moving responsibility from both managers and staff to production employees. D) building high-morale organizations. E) All of the above are techniques for employee empowerment.

E) All of the above are techniques for employee empowerment.

What is a set of quality standards developed by the International Organization for Standardization? A) Malcolm Baldrige National Quality Award B) Deming Prize C) ISO 14000 D) IOS 2009 E) ISO 9000

E) ISO 9000

Members of quality circles are: A) paid according to their contribution to quality. B) external consultants designed to provide training in the use of quality tools. C) always machine operators. D) all trained to be facilitators. E) None of the above; all of the statements are false.

E) None of the above; all of the statements are false.

Which of the following is NOT one of the major categories of costs associated with quality? A) prevention costs B) appraisal costs C) internal failure costs D) external failure costs E) None of the above; they are all major categories of costs associated with quality.

E) None of the above; they are all major categories of costs associated with quality.

Arnold Palmer Hospital uses which of the following quality management techniques? A) Pareto charts B) flowcharts C) benchmarking D) just-in-time E) The hospital uses all of the above techniques.

E) The hospital uses all of the above techniques.

Which of the following is not a typical inspection point? A) upon receipt of goods from your supplier B) when production or service is complete C) before the product is shipped to the customer D) at the supplier's plant while the supplier is producing E) after a costly process

E) after a costly process

The philosophy of zero defects is: A) the result of Deming's research. B) unrealistic. C) prohibitively costly. D) an ultimate goal; in practice, 1 to 2% defects is acceptable. E) consistent with the commitment to continuous improvement.

E) consistent with the commitment to continuous improvement.

A good description of source inspection is inspecting: A) materials upon delivery by the supplier. B) the goods at the production facility before they reach the customer. C) the design specifications. D) goods at the supplier's plant. E) one's own work.

E) one's own work.

Benchmarking requires the comparison of your firm to other organizations; it is not appropriate to benchmark by comparing one of your divisions to another of your divisions.

False

Deming's writings on quality tend to focus on the customer and on fitness for use, unlike Juran's work that is oriented toward meeting specifications.

False

Of the several determinants of service quality, access is the one that relates to keeping customers informed in language they can understand.

False

A cause-and-effect diagram helps identify the sources of a problem.

True

A checklist is a type of poka-yoke to help ensure consistency and completeness in carrying out a task

True

Kaizen is similar to TQM in that both are focused on continuous improvement.

True

One of the ways that just-in-time (or JIT) influences quality is that by reducing inventory, bad quality is exposed.

True

Quality circles empower employees to improve productivity by finding solutions to work-related problems in their work area.

True

Security is the determinant of service quality that means freedom from danger, risk, or doubt.

True

Arnold Palmer Hospital uses ________ to seek new ways to reduce readmission rates.

continuous improvement

Not only customers, but stockholders, suppliers, and others, are among the ________ whose values must be protected in making ethical decisions concerning the quality of products.

stakeholders