MQM 227 Exam 1

In the service-system design matrix, a mail contact service encounter is expected to have which of the following? High sales opportunity High degree of customer/server contact High production efficiency Low sales opportunity None of these

Low sales opportunity

Which of the following is not a major strategic operational competitive dimension that forms a company's competitive position? Cost or price Delivery speed Delivery reliability Management acumen Coping with changes in demand

Management Acumen

Which company is mentioned in the text as a pioneering of the production line approach to delivering on-site service? Ritz-Carlton Hotel Company McDonald's Corporation Prudential Insurance Company Southwest Airlines Citibank

McDonalds Corporation

Buying a ticket for a college football game where there are multiple windows at which to buy the ticket features which type of queuing system line structure? Single channel, single phase Single channel, multiphase Multichannel, single phase Multichannel, multiphase None of these

Multichannel, single phase

Standing in line to buy a ticket for a movie where there are multiple windows at which to buy tickets is which type of queuing system line structure? Single channel, single phase Single channel, multiphase Multichannel, single phase Multichannel, multiphase None of these

Multichannel, single phase

Which of the following is a total measure of productivity? Output/Materials Output/(Labor + Capital + Energy) Output/Labor Output/Inputs All of these

Output/Inputs

Which of the following is a partial measure of productivity? Output/Materials Output/(Labor + Capital + Energy) Output/All resources used Output/Inputs All of these

Output/Materials

Which of the following is an analytical tool used in 'Measure' phase of DMAIC Six-Sigma quality improvement programs? Leadership Pareto charts Management by fact Continuous improvement Kaizen

Pareto charts

If all you knew about a production system was that total daily output was 400 units and the total labor necessary to produce the 400 units was 350 hours, and the total materials used were 425 units, what kind of productivity measure could you use to compute productivity? Partial measure Multifactor measure Total measure Partial measure and Multifactor measure Multifactor measure and Total measure

Partial measure and Multifactor measure

Which of the following is considered a high-contact service operation? On-line brokerage house Internet sales for a department store Physician practice Telephone life insurance sales and service Automobile repair

Physician Practice

Consumer electronics is an example of a product developed in which variant of the generic product development process? Quick-build products Technology-push products Platform products Customized products Process-intensive products

Platform products

A process flowchart uses which of the following symbols to represent tasks or operations in a flow diagram? Rectangle Arrow Inverted triangle Diamond A dashed line

Rectangle

The dimension of design quality that concerns the consistency of performance over time or the probability of failing is which of the following? Response Serviceability Reliability Reputation Perceived quality

Reliability

What dimension of competitiveness does time-to-market performance in product design and process selection affect? Engineering hours per project Aesthetics of design Responsiveness to customer needs None of these The cost of ongoing service

Responsiveness to customer needs

Which of the following is not a way that operations and supply processes are categorized? Planning Return Delivery Selecting Making

Selecting

One of the three approaches to delivering on-site service is ____ Airline approach Self-service approach Fast food approach Do-it-yourself approach Internet approach

Self-service approach

Which of the following is a characteristic of concurrent engineering? Using automated guided vehicles Integrated computer-assisted design The design-build-test cycle Separate development teams working at once Having an excellent forecasting system

Separate development teams working at once

A difference between project and continuous flow categories of process flow structures is which of the following? The size and bulk of the product Discrete parts moving from workstation to workstation Degree of equipment specialization Being a "virtual factory" Profit per unit

The size and bulk of the product

There are many applications of poka-yokes in service organizations. Which of the following is one of the three-T's used to classify poka-yokes? Task Time Teamwork Trust Talent

Task

When developing an operations and supply chain strategy, which of the following is an important product-specific criterion to consider? Technical liaison Learning curve Competitor's product performance Production lot size Total quality management

Technical Liaison

You are hired as a consultant to decide if your client should purchase a new, highly specialized piece of equipment. The product to be produced by this equipment is forecast to have a total worldwide demand of 15,000 units over the entire product life. The initial investment to acquire and install the equipment is $256,000. The variable cost to produce each unit will be $15, and the selling price for the finished product will be $30. Which of the following best describes the situation the firm is facing? The company will recover its initial investment. The company's total margin will be less than its investment. It is a good investment. The break-even is lower than the 15,000 units that are expected to sell. All of these

The company's total margin will be less than its investment

Which of the following is an example of a finite population in a queuing system? People waiting to place their order at a fast-food restaurant The departmental faculty in line at the copier People waiting in line at an ATM Patients seeking help in a hospital emergency room Taxpayers calling for assistance from the IRS

The departmental faculty in line at the copier

You have just used the capability index (Cpk) formulas to compute the two values "min [2, 2.5]." Which of the following is the proper interpretation of these numbers? The true capability index value is 2.5. The mean of the production process has shifted to the left of the design limits. The mean of the production process has shifted to the right of the design limits. The mean has not shifted at all. The true capability index value is between 2 and 2.5.

The mean of the production process has shifted to the left of the design limits.

You have just used the capability index (Cpk) formulas to compute the two values "min [1.5, 1]." Which of the following is the interpretation of these numbers? The true capability index value is 1. The mean of the production process has shifted to the left of the design limits. The mean of the production process has shifted to the right of the design limits. The mean has not shifted at all. The true capability index value is between 1.5 and 1.

The mean of the production process has shifted to the right of the design limits.

According to Little's law, which of the following can be used to estimate inventory? Process time/Cycle time Throughput rate × Flow time Process velocity/Flow time Set up time/Throughput rate Value-added time/Process velocity

Throughpt rate x flow time

In a Gantt chart, the horizontal axis is usually which of the following? Activities Cost Profit Time Milestones

Time

For which of the following should we use an X-bar chart based on sample means to monitor process quality? Grades in a freshman "pass/fail" course Tire pressures in an auto assembly plant Vehicles passing emissions inspection Computer software errors Number of units with missing operations

Tire pressure in an auto assembly plant

"Product-service bundling" refers to a company building service activities into its product offerings for its customers. True False

True

A high-level map or diagram of a supply chain process can be useful to understand how material flows and where inventory is held. True False

True

An example of an assemble-to-order firm is Dell Computer. True False

True

During a recession, efficient firms often have an opportunity to increase market share while maintaining profitability. True False

True

Inventory turn is a better measure than the total value of inventory for comparative purposes because it is a relative measure. True False

True

Services are intangible processes that cannot be weighed or measured. True False

True

The central problem in virtually every waiting line situation is a decision balancing the costs of adding services with the costs of waiting. True False

True

The demand on a hospital's emergency medical services is considered an uncontrollable arrival pattern of the calling population. True False

True

Within a sustainability framework, the economic dimension of the triple bottom line concept goes beyond just profit for the firm but also provides lasting economic benefit to society. True False

True

To reduce process throughput time, you might try which of the following actions? Outsource activities. Change the sequence of activities. Improve teamwork. Reduce management interference. Introduce incentive pay

Change the sequence of activities

Which of the following refers to the physical presence of the customer in a service system? Creation of the service Customer contact Intermittent production Continuous production None of these

Customer contact

The philosophical leaders of the quality movement, Philip Crosby, W. Edwards Deming, and Joseph M. Juran, had the same general message about what it took to achieve outstanding quality. Which of the following was part of that message? Fourteen steps for quality management Quality is free Customer focus Zero defects Six Sigma

Customer focus

You have just been assigned to oversee a series of projects. Functional areas will loan you personnel for each project, and separate project managers will be responsible for separate projects. These project managers will report to you. Which project management structure is being used? Pure project Task force Matrix project Functional project PERT

Matrix project

Economic analysis of product development projects is useful in which of the following circumstances? Pricing Factory location Go/no-go milestones Demand estimation Distribution decisions

Go/no-go milestones

In the service-system design matrix, an Internet and on-site technology service encounter is expected to have which of the following? High sales opportunity High degree of customer/server contact Low production efficiency High production efficiency None of these

High production efficency

An opportunity flow diagram as part of a Six-Sigma quality improvement process might be found in which DMAIC category? Define Measure Analyze Improve Control

Improve

Capacity planning that involves hiring, layoffs, some new tooling, minor equipment purchases, and subcontracting is considered as which one of the following planning horizons? Intermediate range Long range Short range Current Upcoming

Intermediate Range

Which of the following is the cost of quality classification for costs such as scrap, rework, or repair? Appraisal costs Prevention costs External failure costs Internal failure costs Rework and wastage

Internal failure costs

Which of the following is an alternative possible service encounter included in the service-system design matrix? Face-to-face distance Internet Questionnaire response Automated teller (ATM) Response card encounter

Internet

A listing of immediate predecessor activities is important information in a CPM analysis for which of the following reasons? It specifies the relationships in the CPM network of activities. It provides useful timing information. It includes cost information. It is the probability information required in the final step of CPM. None of these

It specifies the relationships in the CPM network of activities.

An advantage of a pure project where self-contained teams work full time on a project is which of the following? Team members can work on several projects. Functional area is a "home" after the project is completed. There are duplicated resources. Lines of communication are shortened. Overall organizational policies and goals can be ignored.

Lines of communication are shortened

You want to develop a three-sigma R-chart. You know the average range is 12 based on several samples of size 6. Which of the following is the resulting LCL? 20.0 18.3 7.02 5.6 0.0

0.0

You are going to develop an R-chart based on range statistics, and you are using a sample size of 9 for your charting purposes. Which of the following is the lower control limit D3 factor for the chart? 0.08 0.14 0.18 0.22 0.29

0.08

For an infinite queuing situation, if the arrival rate for loading trucks is 5 trucks per hour, what is the mean time between arrivals? 5 hours 2.5 hours 0.2 hour 0.1 hour None of these

0.2 hours

If the best operating level of a piece of equipment is at a rate of 400 units per hour and the actual output during an hour is 300 units, which of the following is the capacity utilization rate? 0.75 1.00 1.33 2.33 300

0.75

Assume a fixed cost for a process of $15,000. The variable cost to produce each unit of product is $10, and the selling price for the finished product is $25. Which of the following is the number of units that has to be produced and sold to break even? 500 units 667 units 790 units 900 units 1,000 units

1,000 units

The total output from a production system in one day is 900 units and the total labor necessary to produce the 900 units is 900 hours. Using the appropriate productivity measure, what is the resulting productivity ratio? 1.000 1.428 0.700 0.411 None of these

1.000

If the best operating level of a piece of equipment is at a rate of 400 units per hour and the actual output during an hour is 300 units, which of the following is the capacity cushion? 25 percent 100 units per hour 75 percent 125 percent 133 percent

100 units per hour

You are developing an X-bar chart based on sample means. You know the standard deviation of the sample means is 4, the desired confidence level is 99 percent, and the average of the sample means is 20. Which of the following is your LCL? 36 24 9.68 16.79 30.32

9.68

What is a work breakdown structure? A list of the activities making up the higher levels of the project A definition of the hierarchy of project tasks, subtasks, and work packages A depiction of the activities making up a project A Gantt chart A structure that is incompatible with the critical path method

A definition of the hierarchy of project tasks, subtasks, and work packages

Quality control charts usually have a central line and upper and lower control limit lines. Which of the following is a reason that the process being monitored with the chart should be investigated? A single plot falls above or below the control limits. Behavior is normal. A large number of plots are on or near the central line. There is no real trend in any direction. There is a change in raw materials or operators.

A single plot falls above or below the control limits.

Some of the advantages of a functional project where the project is housed in a functional division include which of the following? The project manager has full authority over the project. Team pride, motivation, and commitment are high. A team member can work on several projects. Needs of the client are secondary. None of these

A team member can work on several projects.

What is an important difference between capacity planning in services and capacity planning in manufacturing operations? Time Location Demand volatility Utilization affects service All of these

All of these

One reason for studying operations and supply chain management (OSCM) is which of the following? OSCM is essential for understanding organizational behavior. Most business graduates do OSCM work regardless of their job title. All managers should understand the basic principles that guide the design of transformation processes. OSCM is a required course in all business degree programs. OSCM is the most rigorous business discipline.

All managers should understand the basic principles that guide the design of transformation processes.

Applicants for the Baldrige Award for total quality management must submit an application of up to 50 pages that details the processes and results of their activities under seven major categories. Which of the following is one of those categories? DMAIC Analysis and remember management Standardization Control Inspection protocols

Analysis and remember management

Which of the following basic types of process structures is one in which equipment or work processes are arranged according to the progressive steps by which the product is made? Project Work center Manufacturing cell Assembly line Continuous process

Assembly line

Which of the following best describes the term "cycle time"? Average time between completions of successive units Ratio of the time a resource is activated over its use Can be no more that 60 minutes The same as utilization The labor content of the item being measured

Average time between completions of successive units

Which of the following are defined as core goods? Chemicals Airlines Data storage systems Hotels None of these

Data storage systems

For which of the following should we use a p-chart to monitor process quality? Defective electrical switches Errors in the length of a pencil Weight errors in cans of soup Temperature of entrees in a restaurant Letter grades on a final examination

Defective electrical switches

A flowchart as part of a Six-Sigma quality improvement process might be found in which DMAIC category? Define Measure Analyze Improve Control

Define

Compared with a service operation, a manufacturing operation's capacity is which of the following? More dependent on time and location Subject to more volatile demand fluctuations Utilization more directly impacts quality Demand can be smoothed by inventory policies More capable of reacting to demand fluctuations

Demand can be smoothed by inventory policies

A process flowchart uses which of the following symbols to represent a decision point in a flow diagram? Rectangle Arrow Inverted triangle Diamond A dashed line

Diamond

Which of the following is not a measure of operations and supply chain management efficiency used by Wall Street? Inventory turnover Revenue per employee Receivable turnover Earnings per share Asset turnover

Earning per share

The placement of which of the following is not determined by production process organization decisions? Departments Work groups Workstations Machines Emergency exits

Emergency exits

Which of the following queue disciplines is discussed in the textbook? Emergencies first Garner-Whitten formula Newest customer first Patient customers last None of these

Emergency first

Which of the following is the cost of quality classification for costs such as defects that pass through the system (e.g., customer warranty replacements, loss of customer or goodwill, handling complaints, and product repair)? Appraisal costs Prevention costs External failure costs Customer return cost Workmanship costs

External failure costs

Which of the following is not considered a major work flow structure? Work center Project Assembly line Fabrication Continuous flow

Fabrication

Which of the following are basic assumptions that justify an analysis of the costs of quality? Failures are caused. Prevention is more expensive. Performance can be learned. Rules of thumb don't always work. Appraisal costs are less than prevention costs.

Failures are calculated

"Business analytics" involves the analysis of data through a unique combination of linear programming, game theory, and queuing theory to better solve business problems. True False

False

A bottleneck occurs when a stage in a production process is starving. True False

False

Make-to-order production processes are well suited for high-volume production of a standardized product. True False

False

Returning involves processes for receiving worn-out, defective, and excess products back from customers but does not involve support for customers who have problems with the product. True False

False

The essential issue in satisfying customers in the make-to-stock environment is to balance the cost of the finished item against the willingness of the consumer to pay for it. True False

False

The supply chain processes discussed in the class are planning, sourcing, delivering, and returning. True False

False

The term "electronic commerce" refers to the buying and selling of electronic products and devices. True False

False

The time needed to respond to a customer's order is called the customer response time. True False

False

Which of the following is a dimension of design quality? Price Features Color Weight Quality at the source

Features

Advocates of financial modeling of product design projects argue that: Financial analysis is as solid as the assumptions that go into the model. Financial analysis brings discipline and control to the product development process. Financial analysis nurtures innovation and creativity. Financial analysis focuses on measurable quantities only. Sufficiently rigorous financial analysis can accurately forecast the product's profit potential.

Financial analysis brings discipline and control to the product development process

Which of the following terms describes the time a unit spends actually being worked on together with the time spent waiting in a queue? Cycle time Flow time Run time Setup time Efficiency

Flow time

Which of the following is not a step used in determining production capacity requirements? Forecasting to predict product sales Forecasting raw material usage Projecting availability of labor Calculating equipment and labor needs Projecting equipment availability

Forecasting raw material usage

Which of the following is not a basic type of process structure? Product-process matrix Work center Manufacturing cell Assembly line Continuous process

Product-process matrix

A reason that firms must develop more new products than ever is which of the following? The increased difficulty of defending patents and trade names To amortize heavy investments in development labs They are replacing old customers with new ones Commitments to joint venture partners Product life cycles are shorter

Products life cycles are shorter

The way to build in greater flexibility in your workers is to do which of the following? Pay higher wages to motivate a willingness to do a variety to tasks. Provide a broader range of training. Provide a wide variety of technology to augment workers skills. Institute a "pay for skills" program. Use part-time employees with specialized skills as needed.

Provide a broader range of training

The Malcolm Baldrige Award selection process helps improve quality and productivity by which of the following means? Stimulating foreign-based suppliers of American companies to improve quality Reporting quality levels among American firms Identifying American firms with the most difficult quality problems Providing feedback to applicants by the examiners Helping Baldrige award winners increase their sales

Providing feedback to applicants by the examiners

You have been placed in charge of a large project. Shortened communication lines are required to ensure quick resolution of problems as they arise. You recognize that the project is going to take a lot of time and require a lot of team pride, motivation, and commitment by all members. Which project management structure should you use in this situation? Pure project Task force Matrix project Functional project PERT

Pure Project

Which one of the following is not a major factor distinguishing service design and development from manufacturing design and development? The process and product must be developed at the same time. Many service organizations can change their service offerings virtually overnight. Many parts of the service package are often defined by the training that individuals receive before they become part of the service organization. The service package, rather than a definable good, is the output of the development process. Service operations can be protected by patents; manufacturing operations cannot.

Service operations can be protected by patents; manufacturing operations cannot.

Which of the following is a characteristic that can be used to guide the design of service systems? Services cannot be inventoried. Services are all similar. Quality work means quality service. Services businesses are inherently entrepreneurial. Even service businesses have internal services.

Services cannot be inventoried

Capacity planning involving consideration of production scheduling and inventory position is characterized by which one of the following time durations? Intermediate range Long range Short range Current Upcoming

Short range

Design for manufacturing and assembly delivers product improvements by emphasizing which of the following? Simplification of the product by reducing the number of separate parts Designing products that customers will want Reducing equipment in the production process Reducing product quality during the assembly process Designing products so they can be manufactured by a virtual factory

Simplification of the product by reducing the number of separate parts

The purpose of value analysis/value engineering (VA/VE) is to: Improve the value that customers find in existing products Simplify products and processes Relate the customer's needs to technical specifications Facilitate better cooperation between business functions Meet budgets and improve the results of financial models

Simplify products and processes

Getting an autograph from a famous person might involve standing in which type of queuing line structure? Single channel, single phase Single channel, multiphase Multichannel, single phase Multichannel, multiphase None of these

Single channel, single phase

Quality function deployment (QFD): Is another term for value engineering. Is a place where the quality assurance function is housed. Starts with studying and listening to customers. Is a manufacturing function aimed at lowering cost by reducing the portion of rejected units. Fills the house of quality matrix with the designer's aspirations for the product.

Starts with studying and listening to customers

Which of the following production process terms best describes the situation when activities in a stage of production must stop because there is no work? Blocking Buffering Starving Buffer Setup time

Starving

Which of the following are not eligible to be considered for the Baldrige Award? Small businesses Health care organizations Educational institutions State highway patrol organizations Nuclear power plants

State highway patrol organiztions

When a company seeks to match the benefits of a successful position while maintaining its existing position in offering customers a variety of differing services, what is this process called? Operations capability analysis Straddling Order qualifying Order winning Inter-functional analysis

Straddling

For which of the following should we use an R-chart to monitor process quality? Weighing trucks at a highway inspection station to determine if they are overloaded Deciding whether an airliner has sufficient fuel for its trip Student grades measured from 1 to 100 Determining whether vehicles from a motor pool will run Determining the accuracy of a forecast of "snow"

Student grades measured from 1 to 100

Which of the following basic types of process structures is one in which similar equipment or functions are grouped together? Project Work center Manufacturing cell Assembly line Continuous process

Work center

A project can be subdivided into which of the following? Job orders Sub-jobs Work packages Sub-paths Events and decisions

Work pacakges

Similarity of projects allows for a streamlined and highly structured development process in which variant of the generic product development process? Customized products Process-intensive products Complex systems Quick-build products Technology-push products

customized products