Operations Management
Poka-yoke is roughly translated from Japanese as "avoid mistakes."
True
The phenomenon that magnifies the variability in order quantities for goods as orders move through the supply chain from the customer to the producer is called the bullwhip effect.
True
The social impact of the triple bottom line concept pertains to fair and beneficial business practices toward labor, the community, and the region in which a firm conducts its business.
True
The total cost of ownership (TCO) can be categorized into three areas: acquisition costs, ownership costs, and post-ownership costs.
True
Two common measures to evaluate supply chain efficiency are the inventory turnover and weeks-of-supply ratios.
True
Variation in production systems that is caused by factors that can be clearly identified and possibly even managed is called assignable variation.
True
Variation that is inherent in a production process itself is called common variation.
True
weeks of supply formula
Weeks of supply = (Average aggregate inventory value / Cost of goods sold) × 52 weeks
Which of these is matched up in the traditional 3-way match:
invoice from supplier, PO, receiving report
In a statistical process control (SPC) chart, which type of variation should cause you to stop the process and initiate corrective action:
Assignable variation
A doctor might place their medical school diplomas on the wall in an attempt to convey which element of service quality?
Assurance
Looking outside the organization to examine what industry competitors and excellent performers outside of your industry are doing in a particular process is called:
External benchmarking
"Quality at the source" refers to the degree to which a product or service design specifications are met.
False
Automobiles and appliances are classified as "pure goods."
False
Firms producing functional products are forced to introduce a steady stream of innovations in order to survive.
False
ISO 9000 is primarily concerned with environmental management.
False
Retailer behavior when stocking up during promotion periods (where the prices of goods are reduced) is called backward buying.
False
The optimal strategy for functional products is to use a responsive supply chain.
False
Variation that is inherent in a production process itself is called assignable variation.
False
Make-to-stock is primarily which type of business model:
Push
A document from a company to prospective suppliers asking for a price for a specified job.
RFQ
Company XYZ has error-free records
Reliability
I like my new carpet because it looks like new for many years.
Reliability/durability
Company XYZ give customers prompt service and don't make them wait long.
Responsiveness and empathy
I like my new car because of its trendy body style and color.
Aesthetics
The dimension of design quality that concerns the sensory characteristics of the product is which of the following?
Aesthetics
A fishbone diagram as part of a six-sigma quality improvement process might be found in which DMAIC category?
Analyze
The company hired to transport a shipment from one company to another.
Carrier
Which of the following are defined as core goods?
Data storage systems
The Malcolm Baldrige National Quality Award is given to organizations that have done which of the following?
Demonstrated outstanding quality in their products and process
If a new car appeals to customers because of its performance and features, that is
Design quality
Another name for the 3-way match process:
Invoice verification
A defect of some kind. A process has failed to meet customer (either internal or external) requirements in some way:
Non-conformance
Choose the most accurate description in the context of operations and supply chain from the following list.
Order qualifier is a screening criteria while order winner is a differentiating criteria.
I like my steak dinner because it is from one of the most famous steak restaurants in the nation.
Perceived quality
A quality guru named Joseph M. Juran defined quality as fitness for use.
True
The philosophical goal of a six sigma program is that processes are so good that _________ standard deviations either side of the process mean are within customer requirements:
Six
Shipping by truck, directly from point of origin to destination, without picking up other people's loads.
TL
If I bought my wife a new diamond ring for our 40th anniversary and I was able to know the entire supply chain all the way back to the diamond and gold mines, that is an example of this.
Traceability/ Chain of custody
A financially-driven reason for outsourcing is that it can turn fixed costs into variable costs.
True
It is impossible to have zero variability in production processes.
True
Which of the following is the best statement about the purpose of quality function deployment (QFD):
Helps you analyze how possible product design features meet (or don't meet) various customer requirements
An Ishikawa fish-bone chart is for what purpose:
Helps you understand various potential causes of process failures
An order qualifier is a screening criterion that permits a firm's products to even be considered as possible candidates for purchase.
True
An order winner is a set of criterion that differentiates the products or services of one firm from another.
True
Developed 14 major points and the plan-do-check-act (PDCA) cycle and did not believe in telling the factory workers that they should improve their quality without changing the process:
"None of these"
If customers for my 12" rulers will accept rulers with a minimum length 11.9" and a maximum length 12.1" and my process standard deviation has been estimated to be .05 inches and has a process mean of 11.95, then the Cpk is about:
.333
Income Statement Units sold 10,000 Sales Revenue $10,000,000 Cost of Goods Sold (COGS) $5,000,000 All other costs $3,000,000 Net Income $2,000,000 Balance Sheet: Cash and Accounts Receivable $1,000,000 Inventory $ 500,000 Fixed Assets $8,000,000 What is the asset turnover ratio?
1.05
Income Statement Units sold 10,000 Sales Revenue $10,000,000 Cost of Goods Sold (COGS) $5,000,000 All other costs $3,000,000 Net Income $2,000,000 Balance Sheet: Cash and Accounts Receivable $1,000,000 Inventory $ 500,000 Fixed Assets $8,000,000 What is the inventory turns?
10
Income Statement Units sold 10,000 Sales Revenue $10,000,000 Cost of Goods Sold (COGS) $5,000,000 All other costs $3,000,000 Net Income $2,000,000 Balance Sheet: Cash and Accounts Receivable $1,000,000 Inventory $ 500,000 Fixed Assets $8,000,000 What is the percent profit margin?
20%
Income Statement Units sold 10,000 Sales Revenue $10,000,000 Cost of Goods Sold (COGS) $5,000,000 All other costs $3,000,000 Net Income $2,000,000 Balance Sheet: Cash and Accounts Receivable $1,000,000 Inventory $ 500,000 Fixed Assets $8,000,000 What is the percent return on investment (ROI)?
21%
If the average aggregate inventory value is $45,000 and the cost of goods sold is $10,000, which of the following is weeks of supply?
234
If the average aggregate inventory value is $100,000 and the cost of goods sold is $450,000, which of the following is inventory turnover?
4.5
Quality control charts usually have a central line and upper and lower control limit lines. Which of the following are reasons that the process being monitored with the chart should be investigated?
A single plot falls above or below the control limits
An organizationally-driven reason for outsourcing is that it can improve effectiveness by focusing on what the firm does best.
True
When using the supply chain uncertainty framework to classify supply chains, a supply chain for innovative products with an evolving supply process is called which of the following?
Agile
Which of the following is the cost of quality classification for costs such as inspection, testing, and other tasks to ensure that the product or process is acceptable?
Appraisal cost
Attributes are those quality characteristics that are classified as either conforming or not conforming to specification.
True
The document from the company wishing to ship something to the company hired to ship it, which specifies the contents of the shipment, etc. It used as the basis of any damages claims if the truck and all its contents were destroyed in a wreck.
Bill of lading
The effect of the lack of synchronization among supply chain members is referred to as which of the following?
Bullwhip effect
The product realization cycle, as shown on the drawing in our week 1 document, begins and ends with:
Customers and other stakeholders
Core service providers integrate tangible goods into their product.
True
If a new car makes its buyer angry because of several manufacturing defects, that is a lack of
Conformance quality
The person or company that a shipment is being shipped to:
Consignee
The plan-do-check-act cycle is used for:
Continual improvement
A company that provides manufacturing as a service for other companies is called
Contract manufacturer
Inventory is valued at its:
Cost (materials, labor, mfg overhead) per unit
If customers for my 12" rulers will accept rulers with a minimum length 11.9" and a maximum length 12.1" and my process standard deviation has been estimated to be .05 inches, then which is true:
Cp=.66
My trust in my dentist that she is an expert in root canals is what type of attribute:
Credence
Something that matters most to a customer. A feature of your product or service whose variation has the greatest impact on the fit, performance, or service life of the finished product from the perspective of the customer:
Critical to Quality (CTQ) or vital few
A process in which products from multiple suppliers are brought into a central facility, re-sorted by destination, and then shipped out to different locations in the same day and not put in storage.
Cross Docking
When considering outsourcing, what should firms be sure to avoid?
Giving the outsourcing partner opportunities to become a strong competitor
Design of experiments is a statistical methodology often used in Six Sigma projects. It aims to accomplish which of the following?
Determine the cause and effect relationships between process variables and output
What happens to a television at the end of its useful life.
Dispose
I am talking with my friends about where to eat dinner tonight. We assume that the restaurant will be clean, therefore we do not think or talk about that. This type of customer requirement is known as:
Dissatisfier
Which statement is most true about the expectations of the Six Sigma program:
Dpmo is about 3
When using the supply chain uncertainty framework to classify supply chains, a supply chain for functional products with a stable supply process is called which of the following?
Efficient
Designed for efficiency and low cost by minimizing inventory and maximizing efficiencies in process flow:
Efficient supply chains
Which has the longest lead time for the consumer?
Engineer-to-order
I believe my rulers are the best. They are produced within plus or minus .0000001" deviation from 12 inches.
Engineering/manufacturing precision based
One of the "package of features" that make up a service is:
Facilitating goods
The humanitarian movement which certifies products has having been produced in conditions which are safe and profitable for the workers in a developing country:
Fair trade
A quality guru named Philip Crosby defined quality as fitness for use.
False
According to the economic aspect of the triple bottom line concept, the firm is required to compensate shareholders by paying dividends and growing the value of their common stock faster than their competitors.
False
An order winner is a set of screening criteria that permits a firm's products to be considered as possible candidates for purchase.
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.
False
Services are homogeneous.
False
The capability index is used to gauge economic changes in service systems.
False
The total cost of ownership (TCO) is an estimate of the cost of an item that includes all the costs related to the procurement and use of an item, but does not include any of the costs related to disposing of the item after it is no longer useful.
False
Design quality refers to the inherent value of the product in the marketplace.
True
The following statement from the KitchenAid website about their mixers ....."incredible versatility".......refers to what type of requirement:
Function
Very few products are moved without at least part of their journey being by which mode of transportation?
Highway/trucking
Which of the following product categories includes fashionable clothing, personal computers, and other products that typically have a very brief life cycle?
Innovative products
Moving containers from ship to train to truck.... to get the shipment to its destination.
Intermodal
Which of the following is the cost of quality classification for costs such as scrap, rework, or repair?
Internal failure costs
Which of the following is an alternative possible service encounter included in the service-system design matrix?
Internet
Moving and combining loads that are less than full truck loads in size. Loads from multiple sources are consolidated into a more full load, driven as far as possible, and then un-consolidated somewhere near the destinations for the loads.
LTL
The total cost of having something manufactured offshore and shipped to a destination in the U.S., including all costs for shipping, insurance, customs, etc.
Landed cost
Functional products include staples that people buy in a wide range of retail outlets, such as grocery stores and gas stations.
True
In the service-system design matrix, a face-to-face total customization service encounter is expected to have which of the following?
Low production frequency
Which of the following are alternative possible service encounters included in the service-system design matrix?
Mail contact
Child labor in factory making wigs
Make
Which is expensive capital equipment, as ordered from a catalog, in which no parts are made before an order is received?
Make-to-order
Document showing the entire contents of a shipment in a truck or container.
Manifest, also called bill of lading
Which type of supply chain is most appropriate for an innovative product like an iPad:
Responsive supply chains
Customers customizing athletic shoes at the www.nike.com website is an example of:
Mass customization
Conflict minerals are:
Mostly metal ores, mined for use in electronics, from mines controlled by terrorist groups in and around the Congo.
A hospital advertises waiting times in the emergency room of < 30 minutes. This is what service quality element?
Responsiveness
Company XYZ give customers individual attention.
Responsiveness and empathy
A TV commercial talking about the towing capacity of a Dodge pickup truck is emphasizing which element of product quality?
Performance
In Robert Cooper's new product development (NPD) process flow chart, the word 'stage' refers to:
Phases of activity in the design and implementation of a new product and process
Which of the following is considered a high-contact service operation?
Physician practice
What transportation mode has very high initial investment costs but gives a very low cost per mile for products that are highly specialized and require no packaging?
Pipeline
Performing the final assembly of a product at the last moment possible, after the customer has ordered which combination of optional features they desire:
Postponement or delayed differentiation
I like my digital camera because it has a 40 mega pixel image.
Product features-based
The Goods-Services Continuum consists of which set of the following categories?
Pure goods, core goods, core services, pure services
Income Statement Units sold 10,000 Sales Revenue $10,000,000 Cost of Goods Sold (COGS) $5,000,000 All other costs $3,000,000 Net Income $2,000,000 Balance Sheet: Cash and Accounts Receivable $1,000,000 Inventory $ 500,000 Fixed Assets $8,000,000 If this firm invested another $5,000,000 in automation (fixed assets) and reduced its annual labor cost (in COGS) by $2,000,000 and thereby increased its net income by this amount, then which of these statements is true?
ROI Increases
The tracking number of each item at a distributor or retailer.
SKU
The size of the screen, weight of the camera, and the optical zoom would be what type of attributes for a person considering buying a camera:
Search
Which of the following is not a characteristic that distinguishes services from goods?
Service jobs are unskilled
Fundamental to any quality program is the determination of quality specifications and the costs of achieving (or not achieving) those specifications.
True
Company XYZ appearance of facilities and uniforms is attractive.
Tangibles
Which of these statements is most true about Malcolm Baldrige National Quality Award:
The award is based on a broad set of criteria for a good business that address all areas of business and is awarded to organizations each year in categories of manufacturing, service, health care, ...
You have just used the capability index (Cpk) formulas to compute the two values "min [1, 1]." Which of the following is the proper interpretation of these numbers?
The mean has not shifted at all
ISO 14000 is primarily concerned with environmental management.
True
In variables sampling the actual measurements of the variable observed are used regardless of whether the unit is good or bad.
True
"Product-service bundling" refers to a company building service activities into its product offerings for its customers.
True
"Supply Chain" refers to processes that move information and material to and from the manufacturing and service processes of the firm.
True
A financially-driven reason for outsourcing is that it can help gain access to new markets, especially in developing countries.
True
A quality guru named Philip Crosby defined quality as conformance to requirements.
True
A quality guru named Philip Crosby suggested that a general approach to quality management should involve prevention, not inspection.
True
An example of assignable variation in a production system may be that a machine is not adjusted properly.
True
An important aspect of service products is that they cannot be inventoried or inspected/examined after a customer complaint.
True
Logistics is a term that refers to the management functions that support the complete cycle of material flow, from the purchase and internal control of production materials; to the planning and control of work-in-process; to the purchasing, shipping, and distribution of the finished product.
True
Services are defined and evaluated as a package of features that affect the five senses.
True
Statistical process control involves testing random samples of output from a process to determine whether the process is producing items within a preselected range.
True
TL trucking is faster than LTL.
True
TQM was defined in the textbook as managing the entire organization so that it excels on all dimensions of products and services that are important to the customer.
True
The "triple bottom line" relates to the economic, employee, and environmental impact of a firm's strategy.
True
The International Organization for Standardization (ISO) is a specialized international agency recognized by affiliates in more than 160 countries.
True
The term "encounter" is defined by Webster's Dictionary as "meeting in conflict or battle" and is used to also designate meetings between consumers and service systems.
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
In the sourcing/purchasing design matrix, there are three variables: contract duration, transaction costs and specificity (assume levels as short, medium and long for contract duration and for the rest, low, medium and high). Vendor managed inventory belongs to
long contract duration, low transaction costs and high specificity.
A method of bringing together portions of a product from multiple suppliers into a single shipment to the customer. Done while all of this is in transit to the customer.
merge in transit