mgsc 395 exam 1
c
An expansionist capacity strategy is NOT indicated when A. capacity expansion is consistently ahead of demand. B. expansion is made in large increments. C. expansion will lead to economies of scale. D. a preemptive marketing strategy is used.
L
Average number of customers in the service system
Lq
Average number of customers in the waiting line
W
Average time spent in the system, including service
P
Average utilization of the system
Wq
Average waiting time in line
a
A _______ customer is one who enters the system and remains there until being served. A. patient B. focused C. normal priority D. transactional
d
A ________ process is a set of activities that delivers value to external customers. A. strategic B. line manufacturing C. service D. core
a
A firm's internal program in employee involvement includes which of the following considerations? A. Defining who the customer is B. Product availability C. Psychological impressions D. Supplier management
b
A high-volume manufacturing process typically means all of the following EXCEPT: A. greater capital intensity. B. more customer involvement. C. less resource flexibility. D. a line, or continuous, process.
a
Training workers to do their jobs properly and working with suppliers to improve the quality of material they supply to you are examples of A. prevention costs. B. appraisal costs. C. internal failure costs. D. external failure costs.
M
number of input units required
Q
number of units in each lot
P
processing time( in hours per customer served or units produced)
S
setup time in hours per lot
c
_______ are the fundamental activities that organizations use to do work and achieve their goals. A. Inputs B. Tasks C. Processes D. Operations
c
A back office service structure is most similar to A. a small batch process. B. a job process in manufacturing. C. a line process. D. a large batch process.
d
A business focusing on increasing the efficiency of its operations is more directly addressing: A. Volume flexibility B. Variety C. Consistent quality D. Low-cost
d
A credit card-processing firm would be likely to list the following competitive priorities for its external customers: A. Postponement B. Concurrent engineering C. Mass customization D. Consistent quality
c
A high customer-contact service process typically indicates all of the following EXCEPT: A. a front-office process structure. B. more resource flexibility. C. low complexity. D. diverse work flows.
d
A major supplier to an auto manufacturer would most likely adopt which production and inventory strategy? A. Assemble-to-order strategy B. Make-to-order strategy C. Postponement strategy D. Make-to-stock strategy
a
A measure of the reserve capacity a process has to handle in unexpected increases in demand is the A. capacity cushion. B. capacity bottleneck. C. capacity utilization rate. D. capacity constraint limit.
d
A process failure that results in the process's inability to meet advertised performance standards violates which of the five definitions of quality? A. value B. fitness for use C. psychological impressions D. conformance to specifications
a
Chang and Chang observe that the competition is increasing the size of its warehouses. They have decided to do the same. They are following _______ strategy. A. a follow the leader B. a Theory of Constraints C. a wait-and-see D. an expansionist
a
Continuous improvement is a philosophy that: A. Uses problem solving techniques within work teams B. Ensures there are plenty of quality inspectors to find areas for improvement C. Waits until a big problem occurs, then systematically solves it D. Encourages the hiring of statistical processes control specialists to reduce the need for current employees to learn statistical methods
a
Core competencies reflect the collective learning of the organization. Core competencies include A. a well-trained, flexible workforce. B. an abundance of customers. C. an abundance of competitors. D. employee benefits.
c
In general, a less capital-intensive industry such as a hotel chain would do well with a utilization rate of A. 30-40%. B. approximately 18%. C. 60-70%. D. 100%.
a
Gymtastic was able to serve large crowds of customers and then adjust operations to serve very few customers thanks to their competitive capability related to A. flexibility. B. cost. C. quality. D. time.
d
If "every process and every person in an organization has customers," then A. external suppliers provide only to external customers. B. internal suppliers provide products to external customers. C. no customers can have both internal and external suppliers. D. some customers are external and some are internal.
d
In Statistical Process Control, _________ are used to detect defects and determine if the process has deviated from design specifications. A. Flowcharts B. Cause and Effect diagrams C. Process capacity charts D. Control charts
b
In the single-server model the: A. Customers are assumed to arrive at constant time intervals B. Variability of customer arrivals is most often described by a Poisson distribution C. Mean of the distribution of customer arrivals must be greater than the variance of customer arrivals to get meaningful results D. Probability of n arrivals in T time periods comes from normal distribution
a
In the single-server model the: A. Service time of a customer is most often described by an exponential distribution B. Service time depends on the number of customers in the system as long as there i sat least one customer in the waiting line C. Mean of the service time distribution must be as great as the target service time for a feasible solution D. Service times are always constant to avoid large waiting lines
b
Low manufacturing volumes typically dictate the following process decision: A. A line process. B. Less capital intensity and automation. C. Less resource flexibility. D. More vertical integration.
d
Most experts on the costs of poor process performance and quality estimate losses in the range of ________ percent of gross sales for defective or unsatisfactory products. A. 0 to 10 B. 10 to 20 C. 30 to 40 D. 20 to 30
Po
Probability that 0 customers are in the system
Pn
Probability that n customers are in the system
a
SSS is a local restaurant serving the needs of college students, faculty, and staff. The manager is considering adding a website so carry-out customers can order in advance more easily. Which process would be a core process in this new undertaking? A. Web design B. Creating file system for recipes C. Budgeting D. Scheduling wait staff
c
Selecting the transportation mode (train, ship, truck, airplane, or pipeline) and scheduling both in-bound and outbound shipments is typically accomplished by which supply chain process? A. sourcing B. cross-docking C. logistics D. warehousing
b
TQM stresses three principles for achieving high levels of process performance and quality. Which of the following is one of them? A. management leadership B. customer satisfaction C. life-long employment D. continuous employee improvement
d
The difference between people-processing service and possession-processing services is that A. services are provided for the customer who must be present in people-processing; services are provided to the customer who does not need to be present in possession-processing services. B. services are provided to the customer in both, but the customer must be present only in people-processing. C. services are provided for the customer in both, but the customer must be present only in people-processing. D. services are provided to the customer who must be present in people-processing; services are provided for the customer who does not need to be present in possession-processing services.
N
Total number of hours per year during which the process operates
c
What do all processes have? A. equipment and facilities B. purchased materials and services C. inputs and outputs D. workers and managers
a
What would be the likely process characteristics of the typical college dining hall? A. Line flows B. Flexible flows C. Highly customized service D. Considerable process divergence
c
When is the customer population of a waiting line problem said to be infinite? A. when the number of potential customers is greater than 10 B. when the waiting line system can accommodate a very large number of customers in the queue C. when the number of customers in the system does not affect the rate at which the population generates new customers D. never, since every population of potential customers is finite in number
a
Which core process includes the activities required to produce and deliver the service or product to the external customer? A. order fulfillment process B. new service/product development process C. customer relationship process D. supplier relationship process
b
Which of the following are characteristics of service provider operations? A. Tangible output B. Perishable outputs C. Low labor requirements D. Low customer contact
d
Which of the following conditions is generally associated with a job process? A. Resources are allocated to specific products. B. High product or service volume. C. Relatively standardized products. D. High resource flexibility.
b
Which of the following elements are NOT common to waiting-line problems? A. A priority rule B. A random-number generator C. A service facility D. A waiting line of customers
d
Which of the following is an element of a deceptive business practice that presents a major concern for service or product quality? A. The transaction is intended to generate a disproportionate economic benefit to the provider at the expense of the customer. B. The conduct of the provider is intentional and motivated by a desire to exploit the customer. C. The provider conceals the truth based upon what is actually known to the provider. D. All of the above.
b
Which of the following is considered one of the four major cost of quality categories? A. postponement B. appraisal C. lost goodwill D. defects
b
Which of the following is more of a manufacturing organization, as compared to a service organization? A. Short-term demand tends to be highly variable B. Operations are more capital intensive C. Outputs are more intangible D. Quality is more difficult to measure
a
Which of the following scenarios illustrates an order winner? A. Ken had always been fascinated by shiny objects, so he plucked the chrome-plated thermos from the shelf and raced to the nearest checkout line. B. A safety conscious customer considers only vehicles that have side air bags and anti-lock brakes. C. A company specifies that they will purchase materials only from suppliers that have achieved a specific certification. D. As part of her initial search, Janice screened mutual funds based on a five-year return of twenty percent and the manager tenure of at least ten years. She planned to study the prospectus for each of those funds before investing her nest egg.
d
Which of these statements about processes is NOT true? A. Have its own set of objectives B. Involve workflow that cuts across departments C. Require resources from several departments D. Exist without customers
a
Which one of the following is considered to be an appraisal cost? A. Cost of quality audits B. Cost of supplier programs C. Cost of rework D. Cost of process design
b
Which service process structure typically involves work flows with steps that vary from one customer to the next? A. hybrid office B. front office C. back office D. automated office
a
_________ is a rule that allows a customer of higher priority to interrupt the service of another customer. A. A preemptive discipline B. A scheduling discipline C. An emergency policy D. First-come-first-serve
D
demand forecast for the year(number of customers served or units produced)
C
desired capacity cushion (expressed at a percent)
