OM 300 Test 1
Which of the following TQM tools would be best suited to monitor class attendance throughout the semester? A. Statistical process control chart B. Pareto chart C. Scatter diagram D. Cause-and-effect diagram
A. Statistical process control chart
Which of the following is NOT a tool for process analysis and design? A. Pareto chart B. process chart C. flowchart D. process mapping
A. Pareto chart
Which of the following is a characteristic of the maturity phase of the product life cycle? A. Competitors are well established. B. Products are considered for termination. C. Product designs begin to stabilize. D. Products are "fine-tuned."
A. Competitors are well established.
Which of the following statement is incorrect about the mission? A. Each functional area within the firm may develop its own strategy, but not its own supporting mission. B. The mission statement provides the concept around which the firm can rally. C. The mission statement provides boundaries and focus for organizations. D. The mission states the rationale for the organization's existence.
A. Each functional area within the firm may develop its own strategy, but not its own supporting mission.
Which of the following is NOT part of a successful quality strategy? A. Minimize quality costs throughout the organization B. Engaging employees in building and implementing quality C. Understanding the principles of quality D. Building an organizational culture that fosters quality
A. Minimize quality costs throughout the organization
Choose the correct example of cost leadership and its explanation below. A. Wal Mart as it has the low overhead and huge buying power to pressure its suppliers into concessions. B. Hard Rock Cafe as it engages the customer with classic rock music. C. Wal Mart as it provides the fast product delivery to the customers. D. Hard Rock Cafe as it provides the aroma of fresh coffee or freshly baked bread.
A. WalMart as it has the low overhead and huge buying power to pressure its suppliers into concessions.
A set of skills, talents, and capabilities in which a firm is particularly strong is referred to as A. core competencies. B. experience differentiation. C. key success factors (KSFs). D. differentiation.
A. core competencies.
Value-stream mapping differs from time-function mapping by A. extending the analysis back to suppliers. B. starting with customers and understanding the production process. C. analyzing production processes. D. creating a flowchart of the process.
A. extending the analysis back to suppliers.
Which of the following phases of the product life cycle has negative cash flow and increasing spending on development and production? A. introductory phase B. maturity phase C. decline phase D. growth phase
A. introductory phase
Which of these is NOT one of the 10 strategic OM decisions? A. marketing B. scheduling C. layout strategies D. managing quality
A. marketing
A large quantity and large variety of products are produced in A. mass customization. B. product focus. C. process focus. D. repetitive focus.
A. mass customization.
What is a design that can be produced to requirements even with unfavorable conditions in the production process? A. robust design B. CAD C. modular design D. DFMA
A. robust design
Which of the following is NOT a characteristic of services? A. standardized product B. produced and consumed simultaneously C. unique D. intangible
A. standardized product
Which of the following is a critical component of additive manufacturing? A. Computer-aided design (CAD) B. Standard for the exchange of product data (STEPD) C. Design for manufacturing and assembly (DFMA) D. Computer-aided manufacturing (CAM)
A. Computer-aided design (CAD)
Gaining a competitive advantage by being the first to market is an example of which of the following terms? A. Time-based competition B. Alliance C. Vertical integration D. Joint venture
A. Time-based competition
Which of the TQM tools would be best suited for determining why a student's course registration is never correct? A. cause-and-effect diagram B. flowchart C. check sheet D. Pareto chart
A. cause-and-effect diagram
Which of the following is NOT one of the 10 strategic OM decisions listed in the text? A. finance/accounting B. quality C. layout D. location
A. finance/accounting
A device or technique that ensures production of a good unit every time is a A. poka-yoke. B. control chart. C. fail-safe. D. zero defect.
A. poka-yoke.
Choose the correct example of response and its explanation below. A. Hard Rock Cafe as it provides the aroma of fresh coffee or freshly baked bread. B. Hewlett Packard as it demonstrates flexibility in both design and volume changes in the volatile world of PC. C. Hard Rock Cafe as it engages the customer with classic rock music. D. Hewlett Packard as it provides personal computers at the best and cheapest prices.
B Hewlett Packard as it demonstrates flexibility in both design and volume changes in the volatile world of PC.
Which of the following is NOT one of the four reasons that we study OM? A. We want to know how goods and services are produced. B. We want to understand what marketing managers do. C. It is one of the three major functions of any organization. D. It is such a costly part of an organization
B. We want to understand what marketing managers do.
A process focused facility is A. a rapid, low-cost production facility that caters to constantly changing unique customer desires. B. a production facility organized around specific activities. C. based on the classical assembly line. D. a production facility organized around products.
B. a production facility organized around specific activities.
Which of the following does not represent competing on response? A. concerned with reliability of scheduling B. based on providing uniqueness C. based on flexibility D. based on quickness
B. based on providing uniqueness
Competing on differentiation is A. based upon low-cost leadership. B. concerned with uniqueness. C. based upon flexibility. D. concerned with reliability of scheduling.
B. concerned with uniqueness.
Self-checkout at a grocery store is an example of A. delayed customization. B. customer participation in service delivery. C. customer participation in service design. D. complete automation
B. customer participation in service delivery.
Productivity increases when A. inputs and outputs increase proportionately. B. inputs decrease while outputs remain the same. C. outputs decrease while inputs remain the same. D. inputs increase while outputs remain the same.
B. inputs decrease while outputs remain the same.
At Alaska Airlines, they say "If it is not measured, A. we are going to learn how to measure it." B. it is not managed." C. it does not matter." D. it is not important."
B. it is not managed."
Which of the following is the Japanese term used to describe continuous improvement efforts? A. six sigma B. kaizen C. poka-yoke D. kanban
B. kaizen
Which of the following trends is NOT part of the exciting OM challenges currently facing operations managers? A. rapid product development B. local focus C. supply chain partnering D. sustainability
B. local focus
When ordering a new zagflatz, customers must choose the style of three major components, each of which has about ten variations. This is an example of A. robust design. B. modular design. C. CAD. D. environmentally friendly design.
B. modular design.
High-volume, low-variety production is best suited for which of the following process strategies? A. repetitive focus B. product focus C. process focus D. mass customization
B. product focus
The objective of a statistical process control (SPC) system is to A. provide a statistical signal when natural causes of variation are present. B. provide a statistical signal when assignable causes of variation are present. C. eliminate natural variations. D. assess customer expectations.
B. provide a statistical signal when assignable causes of variation are present.
Which of the following costs is NOT a cost of quality? A. scrap B. research and development C. lost goodwill D. rework
B. research and development
Which of the following is NOT an external failure cost? A. lost goodwill B. scrap C. returned goods D. costs to society
B. scrap
The economic activities that typically produce an intangible product are referred to as A. goods. B. services. C. phantoms. D. products
B. services.
The primary advantage of outsourcing is A. to decrease logistics and transportation costs. B. to allow a company to focus on its core competencies. C. to allow a company to focus on its non-core competencies. D. to decrease supply chain risk.
B. to allow a company to focus on its core competencies.
In many applications, human quality inspectors can be replaced effectively by A. FMS. B. vision systems. C. automated storage and retrieval systems. D. RFID tags.
B. vision systems.
Managing quality helps build successful strategies of A. differentiation, time and response. B. differentiation, low cost and response. C. differentiation, low cost and service. D. differentiation, time and service.
B. differentiation, low cost and response.
Which of the following statements is NOT true about the process capability ratio? A. The process capability ratio is computed as the difference of the upper and lower specification limits divided by six standard deviations. B. The process capability ratio is a ratio for determining whether a process meets design specifications. C. A capable process has a process capability ratio less than one. D. The process capability ratio is a ratio of the specification to the process variation.
C. A capable process has a process capability ratio less than one.
Which of the following is a concern as firms move toward globalization? A. Opportunities to reach new markets B. Simplification of operations management C. Differences in social and cultural behavior D. Decreases in exchange rate risk
C. Differences in social and cultural behavior
What is the first step to build a house of quality? A. Determine the desirable technical attributes. B. Relate customer wants to product hows. C. Identify customer wants. D. Identify how the good/service will satisfy customer wants.
C. Identify customer wants.
Which of the following is an implication of increasing quality in addition to improved operations? A. Increased recalls world-wide B. Decreased need for ethically-based corporate strategy C. Increased company reputation D. Decreased global business
C. Increased company reputation
How does just-in-yime (JIT) relate to total quality management (TQM)? A. JIT is not related to TQM. B. JIT increases finished-goods-inventory levels to be able to respond quickly to customers. C. JIT is rooted in continuous improvement and forced problem solving, which improve quality. D. JIT systems encourage last-minute deliveries, which increases the probability of a late delivery.
C. JIT is rooted in continuous improvement and forced problem solving, which improve quality.
Why is designing a successful service operation often more difficult than a successful design of a tangible product? A. More challenging inventory considerations B. Lack of computer-aided design C. Strong element of customer involvement D. Tangible products are more personalized
C. Strong element of customer involvement
Which of the following procedures is TRUE regarding the construction of a decision tree for product design? A. Be sure that all possible alternatives and states of nature (beginning on the right and moving left) are included in the tree. B. Payoffs are entered at the beginning of the appropriate branch. C. The possible alternatives include an alternative of "doing nothing." D. To determine the expected value of each course of action, we need to start at the beginning of the tree and work toward the end of the tree.
C. The possible alternatives include an alternative of "doing nothing."
Competing on cost is A. based upon flexibility. B. concerned with uniqueness. C. achieving maximum value as perceived by the customer. D. concerned with reliability of scheduling.
C. achieving maximum value as perceived by the customer.
A strategy is A. established prior to establishing a mission. B. the purpose for which an organization is established. C. an action plan to achieve a mission. D. a functional area of the firm.
C. an action plan to achieve a mission.
Which of the following is NOT an OM strategy/issue during the introduction stage of the product life cycle? A. limited models B. frequent product and process design changes C. long production runs D. high production costs
C. long production runs
The set of activities that relate to the creation of goods and services through the transformation of inputs to outputs is referred to as A. finance. B. marketing. C. operations management. D. supply chain management.
C. operations management.
Which of the following is NOT a common TQM tool? A. histograms B. scatter diagrams C. queuing models D. check sheets
C. queuing models
Which of the following activities at an airline is NOT an operations activity? A. flying B. crew scheduling C. sales D. catering
C. sales
What is an electronically guided and controlled cart used to move materials? A. CNC B. AIS C. RFID D. AGV
D. AGV
Which of the following would NOT be a concerning pattern on a control chart? A. Five consecutive points above the central line. B. Two points very near the lower control limit C. One point above the upper control limit D. All of the above are concerning patterns on a control chart
D. All of the above are concerning patterns on a control chart
Which of the following is NOT an example of an advancement of service technology? A. Electronic check-in/check-out at hotels B. Automatic teller machines (ATMs) at banks C. Retinal security scanners at airports D. All of the above are examples of advancements of service technology
D. All of the above are examples of advancements of service technology
Which of the following organizations does NOT require operations? A. Walmart B. Washington State University C. American Red Cross D. All of the above require operations
D. All of the above require operations
Which of the following is NOT one of the techniques for building employee empowerment? A. Build high-morale organizations. B. Build communication networks that include employees. C. Develop open, supportive supervisors. D. Eliminate formal organization structures such as teams and quality circles.
D. Eliminate formal organization structures such as teams and quality circles.
Which one of the following statements is incorrect regarding globalization and globalization strategies? A. Globalization strategies could add value to products and services. B. Globalization means customers, talent, and suppliers are worldwide. C. Globalization strategies could contribute to efficiency. D. Globalization strategies could simplify the operations manager's job
D. Globalization strategies could simplify the operations manager's job
In which phase of the life cycle has the product design begun to stabilize? A. Maturity phase B. Decline phase C. Introductory phase D. Growth phase
D. Growth phase
The text provides three primary strategic approaches (differentiation, cost, and response) for achieving competitive advantage. Provide an example of each. Support your choices. Choose the correct example of differentiation and its explanation below. A. Hewlett Packard as it demonstrates flexibility in both design and volume changes in the volatile world of PC. B. Hewlett Packard as it provides personal computers at the best and cheapest prices. C. Hunter Fan as it guarantees delivery in 3 days. D. Hunter Fan as it's a premier maker of quality ceiling fans that lower heating and cooling costs for its customers.
D. Hunter Fan as it's a premier maker of quality ceiling fans that lower heating and cooling costs for its customers.
Which of the following is NOT true about Six Sigma? A. It was developed by Motorola in the 1980s B. It utilizes a five-step improvement model, DMAIC C. It is a program designed to reduce defects to help lower costs D. It is only applicable in manufacturing
D. It is only applicable in manufacturing
Which of the following is NOT a reason why domestic business operations decide to change to some form of international operation? A. improve operations B. improve the supply chain C. improve products D. attract and retain local talent
D. attract and retain local talent
Which of the following is NOT one of the three strategic approaches to competitive advantage? A. cost leadership B. response C. differentiation D. innovation
D. innovation
Which of the following is the purpose or rationale for an organization's existence? A. charter B. strategy C. articles of incorporation D. mission
D. mission
Which of these is NOT an advantage of outsourcing? A. gaining outside expertise B. accessing outside technology C. cost savings D. potential creation of future competition
D. potential creation of future competition
Low-volume, high-variety production is best suited for which of the following process strategies? A. product focus B. mass customization C. repetitive focus D. process focus
D. process focus
What is the fundamental rethinking of business processes to bring about dramatic improvements in performance? A. process strategy B. process analysis C. process design D. process redesign
D. process redesign
The creation of goods and services is referred to as: A. formation. B. design. C. transformation. D. production.
D. production.
SWOT analysis refers to A. support, opponents, weaknesses, and threats. B. strengths, opponents, weaknesses, and threats. C. support, opportunities, weaknesses, and threats. D. strengths, opportunities, weaknesses, and threats.
D. strengths, opportunities, weaknesses, and threats.
How might you measure service quality in a hotel? A. Response time for room service. B. Accuracy of room bill. C. Any unserviceable item in the room (light, TV, radio, mini-bar, etc.) D. Number of minutes waiting to check in. E. Room available by 3:00 PM. F. All of the above.
F. All of the above.
Which of the following is NOT considered to be one of the three primary functions that all organizations perform? A. finance/accounting B. production/operations C. marketing D. research and development
research and development
