SCM Exam 3

Products that are customized only at the very end of the manufacturing process are known as: A) make-to-stock. B) assemble-to-order. C) make-to-order. D) engineer-to-order.

B

Taguchi defines quality in terms of: A) parts per million. B) losses. C) lot tolerance percent defective. D) acceptable quality levels.

B

The greater the emphasis on intangible activities, the more management's attention will be directed to: A) buildings and property. B) training employees. C) truck fleets. D) material costs.

B

The manager assigns tasks to workstations and breaks ties using a longest operation heuristic. That is, if two or three tasks could be assigned to a given station, the manager assigns the longest task first and then fills in the remaining time at the workstation as completely as possible. Using this approach, what task(s) would be assigned at the fourth station? A) N, P B) M C) N, O D) O, P

B

The mismatch between timing of customer demand and supply chain lead times is what drives the need for: A) safety stock. B) anticipation inventory. C) cycle stock. D) hedge inventory.

B

The process design team at a manufacturer has broken an assembly process into eight basic steps, each with a required time, and predecessor as shown in the table. There are 8 productive hours available in a day and the manufacturer wishes to produce 400 units. Task Time (sec) Predecessor J 45 -- K 50 J L 40 J M 55 K, L N 40 M O 65 M P 25 N R 35 O, P 38) What is the theoretical minimum number of stations? A) four B) five C) six D) seven

B

The upper and lower limits of a control chart should be wider than the upper and lower tolerance limits.

False

The value of goods on a "per unit" basis far upstream in a supply chain is greater than the value of those same goods far downstream in a supply chain.

False

With everything else held constant, a sampling plan with c=1 will have a lower producer's risk than a sampling plan with c=2.

False

Producer's risk rises as consumer's risk falls.

True

Products that use standard components, but the final configuration of those components is customer-specific, are called make-to-order products.

True

Reductions in process variance result in higher process capability.

True

Statistical quality control is an element of quality assurance.

True

Taguchi's quality loss function runs counter to the notion that a product falling within tolerance limits is acceptable.

True

Takt time is the upper limit on the elapsed time between completions of successive items on a production line.

True

The Dodo Corporation plans to launch two new products for this year, a blank eight track tape and a 5 floppy diskette. If both items are produced precisely to the specifications provided by the design engineers, then Dodo Corporation's operations function will achieve a high level of conformance quality.

True

The bullwhip effect says that a small change in demand downstream in the supply chain causes a large change in demand upstream.

True

The order quantity in a periodic review system rises as the on-hand inventory falls.

True

The product-process matrix illustrates that low volume, one-of-a-kind products are ideally suited to a job shop process.

True

The shorter the required takt time, the more workstations that will be required to balance a production line.

True

The three dimensions of service positioning are the service package, the degree of customization and the amount of customer contact.

True

Total Quality Management is the management of an entire organization so that it excels in all quality dimensions that are important to customers.

True

A barbecue sauce producer sells their product in a 20 ounce bottle. Their current process mean is 19.80 ounces with a standard deviation of 0.3 ounces. If their tolerance limits are set at 20 ounces plus or minus 1 ounce, what is the process capability index of the bottle filling process? A) 0.89 B) 1.00 C) 1.11 D) 1.33

A

A pizza delivery service wants to track their delivery times. They take eight samples of four deliveries and record the following data. What are the upper and lower control limits of their chart? Sample # 1 2 3 4 5 6 7 8 Item #1 21.1 20.2 24.1 22.6 21.2 20.9 22.4 20.9 Item #2 21.7 20.6 21.7 21.7 24.1 23.5 24.6 24.7 Item #3 23.0 24.5 23.2 23.0 20.6 22.8 23.4 22.8 Item #4 20.3 23.5 24.4 25.0 20.7 23.2 23.3 24.5 Sum 86.1 88.8 93.4 92.3 86.6 90.4 93.7 92.9 A) 24.9, 20.3 B) 23.8, 21.4 C) 22.6, 19.5 D) 21.1, 17.6

A

Develop a control chart and plot the data. Which of these conclusions is BEST? A) The process is in control using either three-sigma or two-sigma limits. B) The process is in control if three-sigma limits are used but out of control if two-sigma limits are used. C) The process is in control if two-sigma limits are used but out of control if three-sigma limits are used. D) The process is out of control using either three-sigma control limits or two-sigma control limits.

A

On the first day of class at a new university you made judgments about the quality of the class before the professor had entered the room. You noted the comfort of the accommodations, the fine works of art in the halls and on the classroom wall and the soothing music piped in over the sound system. This dimension of quality is: A) aesthetic. B) performance. C) features. D) perceived quality.

A

One international standard for managing quality across the supply chain is: A) ISO 9000. B) ISO 14000. C) AQL. D) LTPD.

A

The Devon Tower graces the Oklahoma City skyline and is officially the tallest building in the state. The manufacturing process used to produce this jewel is most probably: A) a fixed-position layout. B) a batch manufacturing process. C) a hybrid process. D) a job shop.

A

The inventory that companies hold to protect themselves against uncertainties in either demand or replenishment time is called: A) safety stock. B) anticipation inventory. C) hedge inventory. D) smoothing inventory.

A

The point where the customer interfaces directly with the service organization is: A) the front room. B) the back room. C) onstage. D) the floor.

A

The process design team at a manufacturer has broken an assembly process into eight basic steps, each with a required time, and predecessor as shown in the table. There are 7.5 productive hours available in a day and the manufacturer wishes to produce 400 units. Balance the line by assigning tasks to workstations to fill up as much takt time as possible. Break ties by assigning the longest task first. What task(s) should be assigned at the third workstation? Task Time (sec) Predecessor A 45 -- B 50 A C 20 A D 55 A E 15 D F 65 D G 25 E H 35 B, C, F, G A) B and E B) D C) C, E, and G D) F

A

The process design team at a manufacturer has broken an assembly process into eight basic steps, each with a required time, and predecessor as shown in the table. They work a 7 hour day and want to produce at a rate of 360 units per day. What should their takt time be? Task Time (sec) Predecessor A 45 -- B 50 A C 40 A D 55 B, C E 40 D F 65 D G 25 E H 35 F, G A) 70 seconds B) 65 seconds C) 52 seconds D) 25 seconds

A

The time between completions of successive units on a production line is called: A) cycle time. B) takt time. C) elapsed time. D) work time.

A

Which of the following is NOT a core idea of total quality management? A) cost reduction B) leadership involvement C) employee empowerment D) continuous improvement

A

Which of these statements about the zero defects view of the total cost of quality is BEST? A) Failure costs dictate the shape of the total cost curve. B) In general, appraisal costs exceed prevention costs. C) As the defect rate increases, appraisal costs increase. D) As the defect rate increases, prevention costs increase.

A

The flexibility of inventory increases as materials move down the supply chain.

False

A barbecue sauce producer sells their product in a 20 ounce bottle. Their historical process mean has been 20 ounces with a standard deviation of 0.25 ounces. If their tolerance limits are set at 20 ounces plus or minus 1 ounce, what is the process capability ratio of the bottle filling process? A) 1.00 B) 1.33 C) 1.75 D) 2.00

B

A pizza delivery service wants to track their delivery times. They take eight samples of four deliveries and record the following data. What are the upper and lower control limits of their R-chart? Sample # 1 2 3 4 5 6 7 8 Item #1 21.1 20.2 24.1 22.6 21.2 20.9 22.4 20.9 Item #2 21.7 20.6 21.7 21.7 24.1 23.5 24.6 24.7 Item #3 23.0 24.5 23.2 23.0 20.6 22.8 23.4 22.8 Item #4 20.3 23.5 24.4 25.0 20.7 23.2 23.3 24.5 A) 24.9, 20.3 B) 7.2, 0.0 C) 3.1, 0.0 D) 22.6, 0.0

B

A sporting apparel manufacturer that produces t-shirts to commemorate significant athletic achievements for proud students and alumni probably uses: A) a fixed position layout. B) batch manufacturing. C) a continuous flow process. D) a production line.

B

Costs incurred by defects that occur prior to delivery to the customer are called: A) external failure costs. B) internal failure costs. C) appraisal costs. D) prevention costs.

B

Highly automated batch processes that can reduce the cost of making similar groups of products are: A) functional layouts. B) flexible manufacturing systems. C) make-to-stock. D) adjacent processes.

B

Inventory that is "in the pipeline" is: A) anticipation inventory. B) transportation inventory. C) smoothing inventory. D) hedge inventory.

B

W. Edwards Deming's Fourteen Points for Management include: A) use statistical methods to determine the workers responsible for poor quality. B) break down barriers between departments. C) the customer is always right, so design your system to please them. D) plan your work and work your plan.

B

A legal service in a corporate acquisition probably scores: A) low on customization and high on physical activities. B) high on customer contact and low on intangible activities. C) high on customization and high on intangible activities. D) low on customer contact and low on intangible activities.

C

A quality perspective that focuses on whether or not a product was made or a service was performed as intended is the: A) performance perspective. B) value perspective. C) conformance perspective. D) intention perspective.

C

A technique used to translate customer requirements into technical requirements is: A) quality assurance. B) statistical quality control. C) quality function deployment. D) continuous improvement.

C

An advantage of a production line process is: A) the volume of output needed to justify the investment. B) the degree of flexibility of the process. C) the per unit cost of items produced on the line. D) the range of output typically produced on such a process.

C

An automobile windshield manufacturer wants to verify that their process is producing windshields of an appropriate thickness. The BEST tool to determine this information is a(n): A) process capability ratio. B) process capability index. C) chart. D) operating characteristics curve.

C

An insurance company auditor takes eight samples of 250 completed forms to establish control limits for the fraction of insurance policy forms that are filled out incorrectly. The data appear in this table: Sample # Defective 1 8 2 12 3 11 4 15 5 6 6 15 7 9 8 11 What is the center line for the appropriate chart? A) 0.0129 B) 10.875 C) 0.0435 D) 3.29

C

Products that use standard components but the final configuration of those components is customer-specific are known as: A) make-to-stock. B) assemble-to-order. C) make-to-order. D) engineer-to-order.

C

The manufacturing process used to make a wide variety of highly customized products in quantities as small as one is a: A) production line. B) continuous flow process. C) job shop. D) fixed position.

C

These three tables show the floor layout of 5 departments in an office building, the average number of daily trips between each pair of offices, and the distance between each pair of offices. What is the total cost of this layout if there is a $0.50 per foot transportation cost? Average number of trips between departments A B C D E A -- 25 15 25 30 B -- 40 50 35 C -- 15 15 D -- 20 E -- A B D C E Distance between departments (feet) A B C D E A -- 20 25 40 45 B -- 5 20 25 C -- 25 20 D -- 5 E -- A) $460.00 B) $2300.00 C) $3037.50 D) $4785.50

C

A cell phone manufacturer inspects the video display on each color phone to verify that the screen can display all colors with the brilliance their customers have come to expect. Each phone is turned on, run through a self-test procedure, and classified as either acceptable or unacceptable based on test performance. Based on historical data, the manufacturer produces 0.1 percent defective displays. If they inspect 5000 phones each day for the next 10 days, what are the upper and lower control limits for their control chart if their sample mean mirrors their historical process average? A) 0.0002, 0.0001 B) 0.0142, 0.0058 C) 0.1127, 0.0873 D) 0.0023, 0.0000

D

A manufacturing process decision affects: A) the type of workforce needed. B) the type of equipment needed. C) the type of products that can be made. D) All of the above are correct.

D

Assemble-to-order occurs upstream from: A) design. B) material sourcing. C) fabrication. D) finishing.

D

Champion Cooling has just signed a contract to assemble window air conditioners for another company. The list of tasks, including time requirements and immediate predecessors, follows. Initially, the plan was to make 300 units in an eight hour day but as the summer months approach, Champion Cooling finds themselves far behind in total production. They wish to reconfigure their production line in order to produce maximum output. What should their takt time be? Task Time (min) Predecessor Bolt compressor to base 5 None Install coils and lines 6 Bolt compressor to base Install fan motor 7 Install coils and lines Install switch and thermostat 5 Install fan motor Charge system and test 10 Install switch & thermostat Cosmetic detailing 7 Charge system and test A) 5 B) 6 C) 7 D) 10

D

The reorder point increases as the service level falls.

False

Individual links in the supply chain can stabilize their production at the most efficient level by using: A) safety stock. B) anticipation inventory. C) linkage inventory D) smoothing inventory.

D

The ________ dimension of quality asks how long a product can go between failures or the need for maintenance. A) warranty B) lifetime C) serviceability D) reliability

D

The probability of rejecting a lot with quality better than the acceptable quality level is: A) the lot tolerance percent defective. B) the lot tolerance percent acceptable. C) the consumer's risk. D) the producer's risk.

D

What are the upper and lower three-sigma control limits for the appropriate chart? A) 0.0564, 0.0306 B) 20.76, 0.09 C) 14.17, 7.57 D) 0.0822, 0.0048

D

Which of these manufacturing processes is most likely dictated by the physical characteristics of the product being produced? A) job shop B) batch C) production line D) continuous flow

D

A batch process is less flexible than an assembly line and less efficient that a job shop.

False

A cellular layout is another name for a functional layout.

False

A customer service function at an insurance firm that handles claims based on the first letter of the customer's last name is an example of applying group technology to a service operation.

False

According to the law of variability, converting from an assemble-to-order to a make-to-order production process should increase productivity of the manufacturing processes.

False

As the average demand rises, the standard deviation of demand falls.

False

Based on W. Edwards Deming's Fourteen Points for Management, we can safely conclude he would have been a strong advocate for a Zero Defects promotion.

False

Buying advance tickets for the Giraffe Massacre concert on New Year's Eve saves the buyer one-tenth of one percent on the face value of the tickets. It would be wise to buy tickets well in advance of the concert date.

False

Capability variety is the difference in how customers view an identical service outcome. What some customers might view as economical and thrifty others might view as cheap and poor value.

False

Cycle time is the sum of all of the task times.

False

Dependent demand inventory never needs hedge inventory.

False

For a perfectly centered process with normally distributed output, Six Sigma process quality translates to around 2 defects per trillion units produced.

False

If a contact lens has a scratch on it, the manufacturer classifies it as defective. This is an example of a continuous variable.

False

In a service blueprint, the line of internal interaction falls between the customer and the onstage service provider.

False

In the Zero Defects view of the total cost of quality, the minimum value of the total cost curve is closer to the y axis (the cost axis) than it is in the traditional view.

False

Money spent training an employee how to do the job mistake-free is an example of an appraisal cost.

False

Order quantity decisions are typically made in isolation from considerations of transportation, packaging, and material handling.

False

Six Sigma quality means that the difference between the upper and lower tolerance levels is six standard deviations wide.

False

The back room refers to the part of the service process where the customer is not visible to the other customers waiting for service.

False

The excess cost of an item is the profit you would have made on it.

False

A company that orders at their economic order quantity has an annual ordering cost that is half of their total cost.

True

A job shop manufacturing process is better suited to make a variety of products than a continuous flow process.

True

A manager deciding where 6 departments could be located in a six room office building has over 500 possible arrangements.

True

A product-based layout arranges resources sequentially according to the steps required to make a product.

True

A target service level is the point where the expected cost of a shortage equals the expected cost of having excess units.

True

Activities that take place prior to the point of customization are called upstream activities.

True

An R chart is used to track how much the individual observations within a sample vary.

True

Appraisal costs can occur when a company has NOT produced any defective items.

True

As the degree of service customization decreases, managers have more opportunity to focus on cost and productivity.

True

Companies do not plan to use safety stock.

True

Cycle stock can occur at more than one point in a supply chain.

True

Decreases in the standard deviation of demand reduce the amount of safety stock that should be held.

True

ISO 9001:2000 can be used by both manufacturing and service companies.

True

In a service process, the greater the emphasis on intangible activities is, the more critical is the training and retention of skilled employees and the development and maintenance of the firm's knowledge assets.

True

In order for the economic order quantity model to work, demand must be known and constant.

True

In order to find the lowest cost ordering policy in a quantity discount model, you must compare the holding cost, ordering cost, and the cost of goods for various order quantities.

True

Joseph Juran's definition of quality as "fitness for use" is an example of the value perspective of quality.

True

Make-to-stock products are probably produced using a production line.

True

No manufacturing process can be best at everything.

True