Project Operations Management Test 1 (CH 1,2,5,5s,6)

A Six Sigma program has how many defects per million? - 6 times the standard deviation - 1000 - 3.4 - 34 - 2700

- 3.4

One study found that companies with the highest levels of quality are how many times more productive than their competitors with the lowest quality levels? - 2 - 3 - 4 - 5 - None of the above because quality has no impact on productivity (units/labor hr.).

- 5

The service sector makes up approximately what percentage of all jobs in the United States? - 12% - 86% - 66% - 94% - 40%

- 86%

List and discuss three areas that are significant to improving labor productivity.

- Basic Education - Diet - Social Overhead (transportation, etc.)

Explain how just-in-time processes relate to the quality of an organization's outputs.

- Cut cost of quality - Improve quality - Better quality means less inventory

List and discuss five strategic operations management decisions.

- Design of Goods & Services - Supply Chain Management - Inventory Management - Location Strategies - Scheduling

What are some of the ethical and social challenges faced by operations managers?

- Developing safe, high quality green products - Honor stakeholder commitments - Train, ReTrain, and motivate employees in a SAFE workplace

Who was the person most responsible for popularizing interchangeable parts in manufacturing? - Frederick W. Taylor - Whitney Houston - Lillian Gilbreth - Henry Ford - Eli Whitney

- Eli Whitney

Which of the following statements is TRUE? - Crosby defined quality as fitness for use. - Juran coined the term zero defects. - Juran wrote the 14 points for implementing quality improvement. - Feigenbaum's work in how people learn from each other's successes led to the field of cross-functional teamwork. - Deming laid out 40 steps to quality improvement process in his 1961 book.

- Feigenbaum's work in how people learn from each other's successes led to the field of cross-functional teamwork.

The "Father of Scientific Management" is:just a figure of speech, not a reference to a person. - W. Edwards Deming. - Frederick W. Taylor. - Frank Gilbreth. - Henry Ford.

- Frederick W. Taylor.

Which of the following statements is TRUE? - Corporate mission is shaped by functional strategies. - Functional area missions are merged to become the organizational mission. - External conditions are shaped by corporate mission. - Corporate strategy is shaped by functional strategies. - Functional strategies are shaped by corporate strategy.

- Functional strategies are shaped by corporate strategy.

Which of the following events occurs mainly during the Globalization Era? - Industry 4.0 - Computer-Aided Design - Gantt Charts - Electronic Data Interchange - Enterprise Resource Planning

- Gantt Charts

Internet of Things is associated with which operations management time period? - Globalization Focus - Quality Focus - Customization Focus - Cost Focus. - Just-In-Time Focus

- Globalization Focus

What is a set of quality standards developed by the International Organization for Standardization? - IOS 2009 - Six Sigma - Deming Prize - Malcolm Baldrige National Quality Award - ISO 9000

- ISO 9000

Explain how improving quality can lead to reduced costs.

- Increases sales & reduce cost - Improve reputation

A fish-bone chart is also known as a(n): - Scatter diagram. - Ishikawa diagram. - poka-yoke diagram. - Taguchi diagram. - Kaizen diagram.

- Ishikawa diagram.

List and discuss some reasons to study operations management.

- One of three major functions - Want to know how good/services produces - Understand what OM do - Costly part of organization

The process improvement technique that sorts the vital few from the trivial many is: - benchmarking. - Deming analysis. - Taguchi analysis. - Yamaguchi analysis. - Pareto analysis.

- Pareto analysis.

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

- Philip B. Crosby.

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

- Plan-Do-Check-Act

How do services differ from goods?

- Produced and consumed simultaneously - Intangible - Cannot be stores - Difficult to standardize

What are some measurement problems when measuring productivity?

- Products can't always be measured exactly - Services are hard to measure

What is a popular measurement scale for service quality that compares service expectations with service performance? - COQ - SPC - SERVQUAL - TQM - KAIZEN

- SERVQUAL

Which of the following statements about challenges in operations management is FALSE? - Operations managers are outsourcing and building long-term partnerships with critical players in the supply chain. - The goal of mass customization is to produce customized products, whenever and wherever needed. - Rapid product development is partly the result of shorter product cycles. - Sustainable production is being replaced by a low-cost focus. - Local or national focus is being replaced by global focus.

- Sustainable production is being replaced by low-cost focus.

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

- Taguchi concepts.

Which of the following activities takes place most immediately once the mission has been developed? - The functional areas develop their supporting missions. - Operational tactics are developed. - The firm develops alternative or back-up missions in case the original mission fails. - The functional areas develop their functional area strategies. - The ten OM decision areas are prioritized.

- The functional areas develop their supporting missions.

Which of the following statements about organizational missions is FALSE? - They provide guidance for functional area missions. - They indicate what a company intends to contribute to society. - They define a company's reason for existence. - They reflect a company's purpose. - They are formulated after strategies are known.

- They are formulated after strategies are known.

Who among the following is associated with contributions to quality control in operations management? - Frank Gilbreth - Henry Ford - W. Edwards Deming - Henri Fayol - Charles Babbage

- W. Edwards Deming

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

- W. Edwards Deming.

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

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

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

- a manufacturing-based definition of quality.

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

- a user-based definition of quality.

A business's stakeholders, whose conflicting perspectives cause ethical and social dilemmas, include: - owners. - lenders. - employees. - suppliers. - all of these.

- all of these.

Reasons to study operations management include learning about: - what operations managers do. - a costly part of the enterprise. - how people organize themselves for productive enterprise. - how goods and services are produced. - all of these.

- all of these.

Response-based competitive advantage can be: - flexible response. - quick response. - reliable response. - all of these. - none of these.

- all of these.

Henry Ford is noted for his contributions to: - statistical quality control. - time and motion studies. - material requirements planning. - assembly line operations. - scientific management.

- assembly line operations.

Which of the following would NOT be an operations function in a commercial bank? - auditing - collection - maintenance - check clearing - teller scheduling

- auditing

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: - copycatting. - continuous improvement. - employee empowerment. - benchmarking. - patent infringement.

- benchmarking.

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

- consistent with the commitment to continuous improvement.

PDCA is most often applied with regard to which aspect of TQM? - employee empowerment - JIT - Six Sigma - benchmarking - continuous improvement

- continuous improvement

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

- continuous improvement.

Outsourcing manufacturing is also known as: - contract manufacturing. - hollow manufacturing. - license manufacturing. - sublease manufacturing. - concurrent manufacturing.

- contract manufacturing.

Which of the following is the best example of a pure service? - electric Co-Op - oil change - counseling - restaurant - heart transplant

- counseling

All of the following decisions fall within the scope of operations management EXCEPT for: - creating the company income statement. - managing quality and statistical process control. - location strategies.design of goods and services. - human resources, job design and work measurement.

- creating the company income statement.

Which of the determinants of service quality involves having the customer's best interests at heart? - responsiveness - tangibles - credibility - courtesy - access

- credibility

The goal of inspection is to: - correct deficiencies in products. - add value to a product or service. - detect a bad process immediately. - correct system deficiencies. - all of these

- detect a bad process immediately.

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

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

According to the authors, which of the following strategic concepts allow firms to achieve their missions? - distinctive competency, cost leadership, and experience - differentiation, distinctive competency, quality leadership, and capacity - differentiation, cost leadership, and response - productivity, efficiency, and quality leadership - differentiation, quality leadership, and response

- differentiation, cost leadership, and response

Which of the following is NOT a typical service attribute? - easy to store - difficult to resell - intangible product - simultaneous production and consumption - customer interaction is high

- easy to store

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

- employee empowerment.

Which of the four major categories of quality costs is particularly hard to quantify? - external failure costs - internal failure costs - appraisal costs - prevention costs - None is hard to quantify.

- external failure costs

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

- flowchart.

Poka-yoke is the Japanese term for: - fishbone diagram. - card. - foolproof. - continuous improvement. - just-in-time production.

- foolproof.

The marketing function is concerned with: - producing goods or providing services. - securing monetary resources. - procuring materials, supplies, and equipment. - building and maintaining a positive image. - generating the demand for the organization's products or services.

- generating the demand for the organization's products or services.

Which of the following OM strategies/issues should a firm with a product in the maturity stage of its life cycle be LEAST concerned with at the present time? - cost-cutting - standardization - increase capacity - long production runs - fewer rapid product changes

- increase capacity

Current challenges in operations management include all of the following EXCEPT: - mass customization. - lean operations. - increased communication cost. - sustainability. - rapid product development.

- increased communication cost.

Which of the following fosters specialization and worldwide supply chains? - high trade tariffs - instant communication - more expensive transportation - economies of scope - managers with a broad knowledge of many things

- instant communication

Three commonly used productivity variables are: - quality, external elements, and precise units of measure. - quality, efficiency, and low cost. - technology, raw materials, and labor. - education, diet, and social overhead. - labor, capital, and management.

- labor, capital, and management.

All of the following costs are likely to decrease as a result of better quality EXCEPT: - inspection costs. - scrap costs. - customer dissatisfaction costs. - maintenance costs. - warranty and service costs.

- maintenance costs.

Which productivity variable has the greatest potential to increase productivity? - management - energy - capital - labor - globalization

- management

Which of the following are the primary functions of all organizations? - research and development, finance/accounting, and purchasing - production/operations, marketing, and human resources - sales, quality control, and production/operations - marketing, human resources, and finance/accounting - marketing, production/operations, and finance/accounting

- marketing, production/operations, and finance/accounting

Which of the following is NOT one of the 10 strategic operations management decisions? - maintenance - process and capacity strategies - supply chain management - mass customization - layout strategies

- mass customization

Which of the international operations strategies uses the existing domestic model globally? - worldwide strategy - global strategy - transnational strategy - multidomestic strategy - international strategy

- multidomestic strategy

The total of all outputs produced by the transformation process divided by the total of the inputs is: - multifactor productivity. - single-factor productivity. - greater in manufacturing than in services. - utilization. - defined only for manufacturing firms.

- multifactor productivity.

Eli Whitney, in the ________, provided the foundations for ________ in operations management. - U.S. Army; logistics - 1920s; statistical sampling - United Kingdom; mass production - 1890s; queuing theory - nineteenth century; interchangeable parts

- nineteenth century; interchangeable parts

Pareto charts are used to: - outline production schedules. - show the range of values of a measurement and the frequency with - which each value occurs. - show material flow. - identify inspection points in a process. - organize errors, problems, or defects.

- organize errors, problems, or defects.

What are the five elements in the management process? - organize, plan, control, staff, and manage - plan, organize, staff, lead, and control - plan, lead, organize, manage, and control - accounting, finance, marketing, operations, and management - plan, direct, update, lead, and supervise

- plan, organize, staff, lead, and control

Which of the following is NOT a strategic operations management decision? - layout - price - maintenance - inventory - quality

- price

Which of the following is NOT an element of the management process? - pricing - staffing - leading - controlling - planning

- pricing

Which of the following is one of the 10 strategic operations management decisions? - debt/equity ratio - depreciation policy for tax returns - process and capacity strategies - advertising - pricing

- process and capacity strategies

The purchasing function is concerned with: - producing goods or providing services. - generating the demand for the organization's products or services. - securing monetary resources. - building and maintaining a positive image. - procuring materials, supplies, and equipment.

- procuring materials, supplies, and equipment.

Which of the following attributes is most typical of a service? - production and consumption occur simultaneously - easy to automate - consistency - tangible - mass production

- production and consumption occur simultaneously

Which of the following tasks within a manufacturing firm is performed by the operations function? - quality assurance and control - stock issue - market research - borrowing funds - sales promotion

- quality assurance and control

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

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

Costs of dissatisfaction, repair costs, and decreased future demand are elements of cost in the: - quality loss function. - Ishikawa diagram. - ISO 9000 quality cost calculator. - Pareto chart. - process chart.

- quality loss function.

Which of the determinants of service quality involves performing the service right the first time? - responsiveness - access - courtesy - credibility - reliability

- reliability

What refers to training and empowering frontline workers to solve a problem immediately? - kaizen - benchmarking - just-in-time - service recovery - poka-yoke

- service recovery

The service sector has lower productivity improvements than the manufacturing sector because: - service sector productivity is hard to measure. - the service sector uses less skilled labor than manufacturing. - the quality of output is lower in services than manufacturing. - the service sector is often easy to mechanize and automate. - services usually are labor-intensive.

- services usually are labor-intensive.

What term is given to those individuals with a vested interest in an organization, including customers, distributors, suppliers, owners, lenders, employees, and community members?- stockholders - alumni - investors - vestors - stakeholders

- stakeholders

Walter Shewhart is listed among the important people of operations management because of his contributions to: - statistical quality control. - just-in-time inventory methods.information technology. - assembly line production. - measuring productivity in the service sector.

- statistical quality control.

What is a global network of organizations and activities that supply a firm with goods and services? - vendor network - supply tree - supply chain - provider network - vendor tree

- supply chain

Productivity measurement is complicated by: - stable quality. - the workforce size. - the type of equipment used. - the competition's output. - the fact that precise units of measure are often unavailable.

- the fact that precise units of measure are often unavailable.

An operations manager is NOT likely to be involved in: - the design of goods and services to satisfy customers' wants and needs. - the quality of goods and services to satisfy customers' wants and needs.maintenance schedules. - the identification of customers' wants and needs. - work scheduling to meet the due dates promised to customers.

- the identification of customers' wants and needs.

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

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

What theory implies that you should allow another firm to perform work activities for your company if that company can do it more productively than you can? - theory of offshoring - theory of core competencies - theory of outsourcing - theory of comparative advantage - theory of competitive advantage

- theory of comparative advantage

Operations management is applicable: - to services exclusively. - to the manufacturing sector exclusively. - to all firms, whether manufacturing or service. - mostly to the service sector. - mostly to the manufacturing sector.

- to all firms, whether manufacturing or service.

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

- training and knowledge.

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

- user based, manufacturing based, and product based.

Which of the following has progressed the FURTHEST along its product life cycle? - video physical rentals - Xbox One - virtual reality - Boeing 787 - autonomous vehicles

- video physical rentals

Which 3 of Deming's 14 points do you think are most critical to the success of a TQM program? Why?

1. Build Quality into the product 2. Continuously improve product 3. Break down barriers between departments

What are the five reasons productivity is difficult to improve in the service sector?

1. Labor Intensive 2. Focused on unique individual attributes 3. Intellectual task performed by professionals 4. Difficult to mechanize/automate 5. Difficult to evaluate for quality

List and discuss the three basic functions of a firm.

1. Marketing/Sales 2. POM 3. Finance/Accounting

List and discuss the 4 costs of quality.

1. Prevention Cost (reducing defects, etc.) 2. Appraisal Cost (evaluating products, etc) 3. Internal Failure Cost (production errors) 4. External Failure Cost (errors after delivery)

Identify the five steps of DMAIC.

D-Define the problem M-Measure process performance A-Analyze root cause of variation I-Improve process performance by addressing/eliminating cause C-Control improved process & future performances

What is the purpose of using a Pareto chart for a given problem?

Decide - categories for items - appropriate measurement - period chart will cover - collect date and record category each time - collect measurement for each category

What is a knowledge society?

Post-industrial societies went from manual work to technical information processing.

Philip Crosby said that quality is free. Why?

Tradeoff between good quality and poor quality. Good quality should be done right the first time

A customer service manager at a retail clothing store has collected numerous customer complaints from the forms they fill out on merchandise returns. To analyze trends or patterns in these returns, she has organized these complaints into a small number of sources or factors. This is most closely related to the ________ tool of TQM. - process control chart - histogram - scatter diagram - quality loss function - cause-and-effect diagram

cause-and-effect diagram

What is a poka-yoke? Give an example.

something that ensures production of goods every time (example: McDonalds fry scoop)

Stakeholders who are affected by the production and marketing of - poor quality products include:

stockholders, employees and customers