OPMT 303 Exam 2

_______ variation is a variation whose cause can be identified. A. Assignable B. Controllable C. Random D. Statistical E. Theoretical

A. Assignable Assignable variation has a special cause.

Uncommitted inventory is called ______. A. Available-to-promise inventory B. Free inventory C. Safety stock D. Lead time inventory E. Obsolete inventory

A. Available to promise inventory Uncommitted inventory is available-to-promise.

A chart showing the number of occurrences by category would be used in: A. Pareto analysis B. interviewing C. cause-and-effect diagrams D. benchmarking E. none of the above

A. Pareto analysis We would look for root causes to the most frequently occurring quality failures.

The Baldrige award is based on seven categories. Which is not one of those? A. Relative profitability B. Strategic planning C. Human resource focus D. Information and Analysis E. Leadership

A. Relative profitability Relative profitability is not a Baldrige category.

One option for altering the pattern of demand is: A. backorders B. overtime C. part-time workers D. inventories E. subcontracting

A. backorders Backordering shifts demand to later time periods.

Quality control, in contrast to quality assurance, is implemented: A. during production. B. by top management. C. after production. D. by self-directed teams. E. before inspection.

A. during production. Quality control is used to monitor processes during production; quality assurance is used to evaluate processes' outputs.

Lost production time, scrap, and rework are examples of ________. A. internal failure costs B. external failure costs C. appraisal costs D. prevention costs E. replacement costs

A. internal failure costs These are internal failure costs.

In doing "aggregate planning" for a firm producing paint, the aggregate planners would most likely deal with: A. just gallons of paint, without concern for the different colors and sizes B. gallons of paint, but be concerned with the different colors to be produced C. gallons, quarts, pints, and all the different sizes to be produced D. all the different sizes and all the different colors by size E. none of the above

A. just gallons of paint, without concern for the different colors and sizes The principle of aggregation is reflected in this answer.

A control chart used to monitor the fraction of defectives generated by a process is the: A. p-chart. B. R-chart. C. x-bar chart. D. c-chart. E. Gantt chart.

A. p-chart. The p-chart monitors the fraction defective.

One option for altering the availability of capacity is: A. use of overtime or slack time B. pricing C. promotion D. backorders E. none of the above

A. use of overtime or slack time Overtime or slack time alters the availability of capacity.

Linear programming to produce an aggregate plan: A. will produce the best plan if accurate inputs are used B. is the most widely used technique C. (a) and (b) D. will produce a plan that may not be the best plan E. requires an excel spread sheet

A. will produce the best plan if accurate inputs are used If inputs are valid and accurate, linear programming will give an optimal solution.

The more effective and all-encompassing a firm's quality control and continuous improvement efforts, the less that company will need to rely on: A. insourcing. B. inspection. C. outsourcing. D. acceptance sampling. E. capability assessment.

B. inspection. The best companies emphasize designing quality into the process, thereby greatly reducing the need for inspection.

Which term is most closely associated with the term disaggregation? A. subcontracting B. master schedule C. diversity D. varying inventory levels E. firing and laying off

B. master schedule The aggregate plan is disaggregated into the master schedule.

Which of the following raises quality risks? A. currency fluctuations B. outsourcing to less-developed countries C. empowering employees D. benchmarking E. streamlining the supplier base

B. outsourcing to less-developed countries Quality risks increase when outsourcing to less-developed countries.

The four dimensions of quality that are sometimes used to determine fitness for use of a product are ______. A. performance, special features, durability, and service after sale B. performance, special features, conformance, and reliability C. special features, conformance, reliability, and durability D. performance, conformance, reliability, and durability E. special features, conformance, durability, and service after sale

B. performance, special features, conformance, and reliability These are the four dimensions of quality that are sometimes used to determine fitness for use of a product.

Essentially, the output of aggregate planning is the: A. marketing plan B. production plan C. rough-cut capacity plan D. assignment plan E. material requirements plan

B. production plan The production plan largely results from the aggregate planning effort.

If customer satisfaction doesn't always lead to customer loyalty, firms may need to focus additional effort on __________ strategies. A. remediation B. retention C. rework D. repatriation E. reprocessing

B. retention Increasing customer satisfaction doesn't necessarily increase customer loyalty.

In a service setting, the aggregate plan results in a time-phased projection of __________ requirements. A. customer B. staff C. inventory D. subcontracting E. outsourcing

B. staff Staff requirements are the focus of aggregate planning in services.

Aggregate planning is capacity planning for: A. the long range B. the intermediate range C. the short range D. typically one to three months E. typically one or more years

B. the intermediate range The intermediate range typically runs from two to 12 months.

The main disadvantage(s) of informal techniques used for aggregate planning is (are): A. they are expensive to do B. they may not result in the best plan C. they take a long time to do D. they require use of a computer E. lack of formal education of the planners

B. they may not result in the best plan Informal solutions may not be costly or difficult, but they may be less likely to offer up the best plan.

In using the "chase strategy" variations in demand could be met by: A. varying output during regular time without changing employment levels B. varying output during regular time by changing employment levels C. (a) and (b) D. varying inventory levels E. price increases

B. varying output during regular time by changing employment levels Changing employment levels to vary output is representative of a chase strategy.

A shift in the process mean for a measured characteristic would most likely be detected by a: A. p-chart. B. x-bar chart. C. c-chart. D. R-chart. E. s-chart.

B. x-bar chart.

Aggregate planners seek to match supply and demand: A. at minimum overall cost B. by staying within company policy C. (a) and (b) D. keeping inventories at a minimum E. all of the above

C. (a) and (b) Aggregate plans minimize costs but conform to company policies.

A master production schedule quantity of 300 units will arrive in week 6. Weekly demand over weeks 3 through 10 is forecasted at 50 units. At present, orders have been booked in various quantities in weeks 1, 2, 3 and 4. What is the available to promise for week 6? A. 50 B. 6 C. 300 D. 100 E. Cannot be determined without projected on-hand information

C. 300 No orders are booked after week 4, so all 300 units arriving in week 6 are available-to-promise in week 6.

A tool that depicts process variation graphically is a(n) _________. A. Affinity diagram B. Check list C. Control Chart D. Flow Chart E. Relationship diagram

C. Control Chart Control charts depict process variation.

Which of the following is not a step in the quality control process? A. Define what is to be controlled. B. Compare measurements to a standard. C. Eliminate each of the defects as they are identified. D. Take corrective action if necessary. E. Evaluate corrective action.

C. Eliminate each of the defects as they are identified.

When the opportunity cost of lost revenue is relatively high, _________ become(s) relatively more attractive. A. Layoffs B. Backorders C. Excess capacity D. Disaggregation E. Both B and C

C. Excess capacity The excess capacity costs diminish in relation to the potential lost revenue.

Which isn't a cost of quality? A. Prevention cost B. External failure C. Extended Service Contracts D. Internal failure E. Appraisal costs

C. Extended Service Contracts

A plot below the lower control limit on the range chart: (I) should be ignored since lower variation is desirable. (II) may be an indication that process variation has decreased. (III) should be investigated for assignable cause. A. I and II B. I and III C. II and III D. II only E. I, II, and III

C. II and III

The quality control improvement tool which distinguishes between the "important few" and the "trivial many" is __________. A. brainstorming B. check sheets C. Pareto analysis D. cause-and-effect diagrams E. fail-safe methods

C. Pareto analysis Pareto analysis focused on the 80/20 phenomenon.

Loss of business, liability, productivity and costs are consequences of _______. A. Labor Unions B. Globalization C. Poor Quality D. Robotics E. Micro-factories

C. Poor Quality Poor quality increases these costs.

Which of the following relationships must always be incorrect? A. Tolerances > process variability > control limits B. Process variability > tolerances > control limits C. Tolerances > control limits > process variability D. Process variability > control limits > tolerances E. Process variability < tolerances < control limits

C. Tolerances > control limits > process variability Process variability will always be greater than control limits.

The tool that is useful in the collection and organization of data is: A. a control chart B. a Pareto chart C. a check sheet D. a flow chart E. none of the above

C. a check sheet Check sheets help in the collection and organization of data.

Quality control tools are not really used to fix quality so much as they are used to: A. highlight when processes are not capable. B. point out when random variation is present. C. alert when corrective action is needed. D. monitor the quality of incoming shipments or outgoing finished goods. E. initiate team-building exercises.

C. alert when corrective action is needed. Quality control tools are needed to decide when corrective action is needed.

Costs of inspectors, testing, test equipment, and labs are examples of ________. A. internal failure costs B. external failure costs C. appraisal costs D. prevention costs E. replacement costs

C. appraisal costs These are appraisal costs.

That portion of projected inventory which enables marketing to make realistic commitments about delivery dates for new orders is: A. beginning inventory B. safety stock inventory C. available-to-promise inventory D. high margin inventory E. none of the above

C. available-to-promise inventory Available-to-promise values are calculated to help marketing make realistic commitments.

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. industrial espionage

C. benchmarking It is important to benchmark against best-in-class processes.

A quality improvement technique that involves the sharing of thoughts and ideas in a way that encourages unrestrained collective thinking is: A. Pareto analysis B. benchmarking C. brainstorming D. a control chart E. a check sheet

C. brainstorming Brainstorming involves the sharing of thoughts and ideas in a way that encourages unrestrained collective thinking.

A time-ordered plot of sample statistics is called a(n) ______ chart. A. statistical B. inspection C. control D. simo E. limit

C. control

A time-ordered plot of representative sample statistics is called a(n): A. Gantt chart. B. simo chart. C. control chart. D. up-down matrix. E. standard deviation table.

C. control chart. Control charts are time-ordered plots of sample statistics.

Fixing a problem will often cost money; to minimize these costs it is best to find and fix the problem _______. A. just before shipping our product to the customer B. immediately after we complete the last operation C. during the design phase D. just before we begin the first production operation E. regardless of when you fix the problem, costs are about the same

C. during the design phase Fixing a problem during the design phase prevents a failure from ever occurring.

One area to which aggregate planning decisions relate is: A. job sequencing B. customer order quantities C. inventory levels D. location E. layout

C. inventory levels Different aggregate planning strategies affect inventory levels differently.

A point which is outside of the lower control limit on an R-chart: A. is an indication that no cause of variation is present. B. should be ignored because it signifies better-than-average quality. C. should be investigated because an assignable cause of variation might be present. D. should be ignored unless another point is outside that limit. E. is impossible since the lower limit is always zero.

C. should be investigated because an assignable cause of variation might be present. Points outside of the control limits should be investigated as signals of nonrandom variation being present.

The amount of inspection needed depends on __________ and __________. A. the amount of automation; the reliability of inspectors B. the quality of the supplier; the target market of the process C. the costs of inspection; the costs of passing on defective items D. where in the process the inspection occurs; the volume of the process E. the cost of the item being inspected; the use of the item being inspected

C. the costs of inspection; the costs of passing on defective items The amount of inspection needed is governed by the costs of inspection and the expected costs of passing defective items.

A p-chart would be used to monitor: A. average shrinkage. B. dispersion in sample data. C. the fraction defective. D. the number of defects per unit. E. the range of values.

C. the fraction defective.

Which of the following differs between aggregate planning in services and aggregate planning in manufacturing? A. uncertainty in demand B. costs of storing inventory C. the perishability of capacity D. cost of overtime E. cost of hiring

C. the perishability of capacity Capacity is inherently perishable in services.

A control chart used to monitor the process mean is the: A. p-chart. B. R-chart. C. x-bar chart. D. c-chart. E. Gantt chart.

C. x-bar chart. The x-bar chart monitors the process mean.

The purpose of the Malcolm Baldrige National Quality Award is to _______. A. stimulate efforts to improve quality B. recognize quality achievements of U.S. companies C. publicize successful quality programs D. all of the above E. distribute the grant money available for improved quality

D. all of the above All of these are goals of the Baldrige award.

Which of the following best describes aggregate planning? A. the link between intermediate term planning and short term operating decisions B. a collection of objective planning tools C. make or buy decisions D. an attempt to respond to predicted demand within the constraints set by product, process and location decisions E. manpower planning

D. an attempt to respond to predicted demand within the constraints set by product, process and location decisions A workable balance between demand and these constraints is sought.

A control chart used to monitor the number of defects per unit is the: A. p-chart. B. R-chart. C. x-bar chart. D. c-chart. E. Gantt chart.

D. c-chart.

The quality control improvement tool that resembles a "fishbone" is ________. A. brainstorming B. check sheets C. Pareto analysis D. cause-and-effect diagrams E. fail-safe methods

D. cause-and-effect diagrams These are also known as Ishikawa diagrams.

The purpose of control charts is to: A. estimate the proportion of output that is acceptable. B. weed out defective items. C. determine if the output is within tolerances/specifications. D. distinguish between random variation and assignable variation in the process. E. provide meaningful work for quality inspectors.

D. distinguish between random variation and assignable variation in the process.

Giving workers responsibility for quality improvements and authority to make changes is known as: A. continuous improvement B. passing the buck C. benchmarking D. employee empowerment E. employee involvement

D. employee empowerment Empowered employees are often very effective in improving quality.

Which of the following is not a goal of process improvement? A. increasing customer satisfaction B. reducing waste C. achieving higher quality D. identifying the cause of a problem E. All are the goals.

D. identifying the cause of a problem Identifying the cause of a problem is an input into the effort to improve the process.

One option for altering the availability of manufacturing capacity is: A. pricing B. promotion C. backorders D. inventories E. none of the above apply to manufacturing capacity

D. inventories Inventory involves using capacity from earlier periods to satisfy demand in later periods.

Which of the following is not a basic option for altering the availability of capacity in a service environment? A. overtime B. hiring/layoff C. part time D. inventory E. All of these are basic capacity options.

D. inventory Inventory is typically not an option in services.

Which of the following is not an input to the aggregate planning process? A. resources available B. demand forecast C. policies on work force changes D. master production schedules E. cost information

D. master production schedules The master production schedule is an output of the aggregate planning process.

The direct result of disaggregating the aggregate plan is the: A. marketing plan B. production plan C. rough-cut capacity plan D. master schedule E. material requirements plan

D. master schedule The aggregate plan is disaggregated into the master schedule.

Before a dimension of quality can be made operationally useful, it must be restated in some ___________ form. A. qualitative B. manipulative C. certifiable D. measurable E. marketable

D. measurable Dimensions of quality have to be translated into measurable characteristics.

As regards quality risks, which of the following would be least likely to involve outsourcing to less-developed countries? A. rubber processing B. repetitive assembly C. packaging D. pharmaceuticals E. steel manufacturing

D. pharmaceuticals Pharmaceutical firms incur substantial quality risks when they outsource to less-developed countries.

Quality planning and administration, quality training, and quality control procedures are examples of _______. A. internal failure costs B. external failure costs C. appraisal costs D. prevention costs E. replacement costs

D. prevention costs These are prevention costs.

Which one of the following would not be considered a decision option for purposes of aggregate planning? A. inventory levels B. manpower levels C. pricing D. production costs E. promotion

D. production costs Production costs would be a critical variable, but they would not be a decision variable.

Which one of the following is not a basic option for altering demand? A. promotion B. backordering C. pricing D. subcontracting E. All are demand options.

D. subcontracting Subcontracting is an option for altering capacity.

The typical difference between "quality circles" and "continuous improvement teams" is ________. A. Quality circles work on product design only B. Continuous improvement teams work on product and process design C. Continuous improvement teams use only engineers while quality circles use just the workers doing the work D. the amount of employee empowerment E. There is no difference-they are just the same

D. the amount of employee empowerment Quality circles often work with processes over which they have little authority.

The optimum level of inspection is where the: A. cost of inspection is minimum. B. cost of passing defectives is minimum. C. total cost of inspection and defectives is maximum. D. total cost of inspection and defectives is minimum. E. difference between inspection and defectives costs is minimum.

D. total cost of inspection and defectives is minimum.

ISO 9000 standards do not have a requirement for ________. A. resource B. remedial C. systems D. training E. management

D. training Training isn't a part of ISO 9000 standards.

In order to use the "level capacity strategy," variations in demand are met by: A. varying output during regular time without changing employment levels B. varying output during regular time by changing employment levels C. (a) and (b) D. using combination of inventories, overtime, part time, and back orders E. price adjustments

D. using combination of inventories, overtime, part time, and back orders A combination of inventories, overtime, part time, and back orders is the level strategy.

The range chart (R-chart) is most likely to detect a change in: A. proportion. B. mean. C. number defective. D. variability. E. sample size.

D. variability.

Simulation to produce an aggregate plan: A. will produce the best plan B. is the most widely used technique C. both (a) and (b) D. will produce a plan that may not be the best plan E. requires a minimum of 4 iterations to be accurate

D. will produce a plan that may not be the best plan Simulation is not guaranteed to produce an optimal plan.

At XYZ Corp., the aggregate planning unit reflects the fact that 50% of its output is product version A, 30% is version B, and 20% is version C. Suppose that over the coming year forecasted total demand (in planning units) is for 10,400 units. Once the production plan is disaggregated, what will the weekly forecast for version A be (assume 52 weeks per year)? A. 1000 B. 200 C. 400 D. 100 E. 50

E. 50 Divide 5,200 (annual demand) by 52 weeks.

The more __________ demand is, the more the aggregate plan will tend to reflect the ____________ strategy. A. Stable; Level B. Aggregated; Outsourcing C. Variable; Chase D. Complex; Uncommitted E. Both A and C

E. Both A and C These pure strategies reflect particular underlying demand patterns.

ISO 9000 currently requires _____ of a certified organization. A. Quarterly reporting B. Product diversity C. Annual audits D. A minimum of four supervisory levels E. Continuous improvement

E. Continuous improvement Continuous improvement is emphasized in ISO certification.

Proactive and Reactive aggregate planning strategies are best associated with: A. Input and Output B. Make and Buy C. Quantitative and Qualitative D. Exact and Approximate E. Demand and Capacity options

E. Demand and Capacity options Demand and capacity are the targets of proactive and reactive aggregate planning strategies.

Accommodating peak demands and effectively using labor resources during periods of low demand would be the goal of aggregate planners in _________. A. Manufacturing B. Military C. Archeology D. Libraries E. Financial Services

E. Financial Services These are the considerations in aggregate planning for service firms.

Managers have obligations to a wide variety of stakeholders such as shareholders, employees and customers. When considering outsourcing production to offshore suppliers, managers have to weigh __. I) Cost benefits that might make shareholders wealthier II) Quality issues that might make firms less productive and/or products riskier III) The investments already tied up in relationships with existing suppliers A. I B. II C. III D. I and II only E. I, II and III

E. I, II and III All of these are considerations that must be taken into account.

The process capability index (Cpk) may mislead if: (I) the process is not stable. (II) the process output is not normally distributed. (III) the process is not centered. A. I and II B. I and III C. II and III D. II only E. I, II, and III

E. I, II, and III

Which of the following is an element of TQM? A. continuous improvement B. competitive benchmarking C. employee empowerment D. team approach E. all of the above

E. all of the above All of these are elements of TQM.

Aggregate planning requires which of the following information? A. a forecast of expected demand B. current levels of inventory C. (a) and (b) D. policies regarding employment levels E. all of the above

E. all of the above All of these are inputs into the aggregate planning process.

Inspection is a(n): A. prevention. B. control. C. monitoring. D. corrective. E. appraisal.

E. appraisal

Aggregate planners attempt to balance: A. demand and inventories B. demand and costs C. capacity and inventories D. capacity and costs E. capacity and demand

E. capacity and demand Capacity and demand are roughly balanced in aggregate planning.

In order for TQM to be successful, it is essential that most of the organization be _________. A. members of quality circles B. under contract C. ISO certified D. trained in error detection techniques E. in agreement with the philosophy and its goals

E. in agreement with the philosophy and its goals TQM won't work without substantial buy-in.

A c-chart is used for: A. means. B. ranges. C. percent defective. D. fraction defective per unit. E. number of defects per unit.

E. number of defects per unit.

Which of the following steps is necessary to ensure that a master schedule is valid? A. worker scheduling B. order promising C. inventory counting D. order booking E. rough-cut capacity planning

E. rough-cut capacity planning Rough-cut capacity planning insures that the master schedule is reasonably feasible.

Which of the following would not be a strategy associated with adjusting aggregate capacity to meet expected demand? A. subcontract B. vary the size of the workforce C. vary the intensity of workforce utilization D. allow inventory levels to vary E. use backorders

E. use backorders Backorders do not involve adjusting capacity.

Cause-and-effect diagrams are sometimes called: A. Pareto diagrams B. fishbone (Ishikawa) diagrams C. run charts D. control charts E. none of the above

B. fishbone (Ishikawa) diagrams These help in thinking through what might be causing a quality program.

In practice, the more commonly used techniques for aggregate planning are: A. mathematical techniques B. informal trial-and-error techniques C. (a) and (b) about equally D. simulation models E. linear programming optimization

B. informal trial-and-error techniques Trial-and-error techniques are more commonly used.

Focusing a supply chain on ________________ is a modern way of ensuring high quality inputs and a ready supply of process-improvement ideas. A. lowest cost-per unit sourced B. close, collaborative ties with suppliers C. suppliers that emphasized continuous-flow production D. ISO 14000 customers E. partners pursuing similar strategies

B. close, collaborative ties with suppliers Collaborative relationships with suppliers often lead to higher quality.

Moving from the aggregate plan to a master production schedule requires: A. rough cut capacity planning B. disaggregation C. sub-optimization D. strategy formulation E. chase strategies

B. disaggregation The aggregate plan is disaggregated into the master schedule.

Acceptance sampling, when it is used, is used: (I) before production. (II) during production. (III) after production. A. I only B. I and III only C. I and II only D. II and III only E. I, II, and III

B. I and III only Acceptance sampling is used to assess inputs to and outputs from a process.

Management behaviors supporting an organizational culture that encourages continuous improvement include which of the following? (I) develop a vision statement for the organization (II) develop a reward system that promotes the philosophy (III) institute continuous training programs (IV) make decisions that adhere to the philosophy A. I, II, and IV B. I, II, III, and IV C. I and III D. II, III, and IV E. II and IV

B. I, II, III, and IV All of these would reflect management focused on continuous improvement.

The Deming Prize was established by the _________. A. American Statistical Association B. Japanese C. North American Free Trade Association D. American Quality Society E. World Trade Organization

B. Japanese The Deming Prize is a prominent Japanese quality award.

Warranty service, processing of complaints, and costs of litigation are examples of ________. A. internal failure costs B. external failure costs C. appraisal costs D. prevention costs E. replacement costs

B. external failure costs These are external failure costs.

The probability of concluding that assignable variation exists when only random variation is present is: (I) the probability of a Type I error. (II) known as the alpha risk. (III) highly unlikely. (IV) the sum of probabilities in the two tails of the normal distribution. A. I and II B. I and IV C. II and III D. I, II, and IV E. I, III, and IV

D. I, II, and IV Incorrect signals can be on either side of the distribution.

Focusing attention on the most important problem areas is referred to as: A. quality circles B. quality assurance C. brainstorming D. Pareto analysis E. cause-and-effect analysis

D. Pareto analysis Pareto analysis directs attention to the most important areas.

A tool that is not used for quality management is ________. A. Flowchart B. Histogram C. Perato Analysis D. Redesign E. Check sheets

D. Redesign Redesigns aren't part of quality management.

Deciding how much to invest in the prevention of defects can be analyzed using ________. A. EVPI B. Net Present Value C. Weighted Factor Analysis D. Return on Quality E. Breakeven Analysis

D. Return on Quality ROQ focuses on the economics of quality efforts.

TQM stands for: A. Taguchie Quality Methods B. Tactical Quality Measurements C. The Quality Matrix D. Total Quality Management E. Total Quantity Measurement

D. Total Quality Management TQM stands for Total Quality Management.

The tool that is useful in documenting the current process is: A. a control chart B. a Pareto chart C. a check sheet D. a flow chart E. a simo chart

D. a flow chart The flow chart graphically depicts how a process works.

A quality circle is ________. A. responsible for quality B. total quality control C. an inspection stamp found on meat D. a voluntary group of employees E. none of the above

D. a voluntary group of employees Quality circles are composed of volunteers.

Which of the following is an input to aggregate planning? A. beginning inventory B. forecasts for each period of the schedule C. customer orders D. all of the above E. quantity discounts

D. all of the above All except quantity discounts are aggregate planning inputs.