MQM 227 EXAM 1

If the best operating level of a piece of equipment is at a rate of 400 units per hour and the actual output during an hour is 300 units, which of the following is the capacity cushion?

100 units per hour

Applicants for the Baldrige Award for total quality management must submit an application of up to 50 pages that details the processes and results of their activities under seven major categories. Which of the following is one of those categories?

Analysis and remember management

Capturing information directly from the source through such systems as point-of-sale, radio-frequency identification tags, bar-code scanners, and automatic recognition has had little impact on operations and supply chain management. True False

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. True False

False

Services are homogeneous. True False

False

The essential issue in satisfying customers in the make-to-stock environment is to balance the cost of the finished item against the willingness of the consumer to pay for it. True False

False

The supply chain processes mentioned in the textbook are planning, sourcing, delivering, and returning. True False

False

The term "electronic commerce" refers to the buying and selling of electronic products and devices. True False

False

The time needed to respond to a customer's order is called the customer response time. True False

False

In the service-system design matrix, an Internet and on-site technology service encounter is expected to have which of the following?

High production efficiency

An opportunity flow diagram as part of a Six-Sigma quality improvement process might be found in which DMAIC category?

Improve

Capacity planning that involves hiring, layoffs, some new tooling, minor equipment purchases, and subcontracting is considered as which one of the following planning horizons?

Intermediate range

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

A listing of immediate predecessor activities is important information in a CPM analysis for which of the following reasons?

It specifies the relationships in the CPM network of activities.

An advantage of a pure project where self-contained teams work full time on a project is which of the following?

Lines of communication are shortened.

In the service-system design matrix, a mail contact service encounter is expected to have which of the following?

Low sales opportunity

Which of the following is not a major strategic operational competitive dimension that forms a company's competitive position?

Management acumen

You have just been assigned to oversee a series of projects. Functional areas will loan you personnel for each project, and separate project managers will be responsible for separate projects. These project managers will report to you. Which project management structure is being used?

Matrix project

Which company is mentioned in the text as a pioneering of the production line approach to delivering on-site service?

McDonald's Corporation

Buying a ticket for a college football game where there are multiple windows at which to buy the ticket features which type of queuing system line structure?

Multichannel, single phase

Standing in line to buy a ticket for a movie where there are multiple windows at which to buy tickets is which type of queuing system line structure?

Multichannel, single phase

You want to develop a three-sigma R-chart. You know the average range is 12 based on several samples of size 6. Which of the following is the resulting LCL?

R-bar = 12, n = 6, D3 = 0. LCL = D3 x R-bar = 0 x 12 = 0.0.

The dimension of design quality that concerns the consistency of performance over time or the probability of failing is which of the following?

Reliability

The central problem in virtually every waiting line situation is a decision balancing the costs of adding services with the costs of waiting. True False

True

The demand on a hospital's emergency medical services is considered an uncontrollable arrival pattern of the calling population. True False

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 False

True

Which of the following basic types of process structures is one in which similar equipment or functions are grouped together?

Work center

A project can be subdivided into which of the following?

Work packages

You are going to develop an R-chart based on range statistics, and you are using a sample size of 9 for your charting purposes. Which of the following is the lower control limit D3 factor for the chart?

n = 9, D3 = 0.18.

For an infinite queuing situation, if the arrival rate for loading trucks is 5 trucks per hour, what is the mean time between arrivals?

0.2 hour

If the best operating level of a piece of equipment is at a rate of 400 units per hour and the actual output during an hour is 300 units, which of the following is the capacity utilization rate?

0.75

Assume a fixed cost for a process of $15,000. The variable cost to produce each unit of product is $10, and the selling price for the finished product is $25. Which of the following is the number of units that has to be produced and sold to break even?

1,000 units

The total output from a production system in one day is 900 units and the total labor necessary to produce the 900 units is 900 hours. Using the appropriate productivity measure, what is the resulting productivity ratio?

1.000

What is a work breakdown structure?

A definition of the hierarchy of project tasks, subtasks, and work packages

Quality control charts usually have a central line and upper and lower control limit lines. Which of the following is a reason that the process being monitored with the chart should be investigated?

A single plot falls above or below the control limits.

Some of the advantages of a functional project where the project is housed in a functional division include which of the following?

A team member can work on several projects.

One reason for studying operations and supply chain management (OSCM) is which of the following?

All managers should understand the basic principles that guide the design of transformation processes.

What is an important difference between capacity planning in services and capacity planning in manufacturing operations? Time Location Demand volatility Utilization affects service All of these

All of these

Which of the following basic types of process structures is one in which equipment or work processes are arranged according to the progressive steps by which the product is made?

Assembly line

Which of the following refers to the physical presence of the customer in a service system?

Customer contact

The philosophical leaders of the quality movement, Philip Crosby, W. Edwards Deming, and Joseph M. Juran, had the same general message about what it took to achieve outstanding quality. Which of the following was part of that message?

Customer focus

Which of the following are defined as core goods?

Data storage systems

For which of the following should we use a p-chart to monitor process quality?

Defective electrical switches

A flowchart as part of a Six-Sigma quality improvement process might be found in which DMAIC category?

Define

Compared with a service operation, a manufacturing operation's capacity is which of the following?

Demand can be smoothed by inventory policies

Which of the following is not a measure of operations and supply chain management efficiency used by Wall Street?

Earnings per share

Which of the following queue disciplines is discussed in the textbook?

Emergencies first

The placement of which of the following is not determined by production process organization decisions?

Emergency exits

Which of the following is the cost of quality classification for costs such as defects that pass through the system (e.g., customer warranty replacements, loss of customer or goodwill, handling complaints, and product repair)?

External failure costs

Which of the following is NOT considered a major work flow structure?

Fabrication

Which of the following are basic assumptions that justify an analysis of the costs of quality?

Failures are caused.

"Business analytics" involves the analysis of data through a unique combination of linear programming, game theory, and queuing theory to better solve business problems. True False

False

Which of the following is a dimension of design quality?

Features

Which of the following is NOT a step used in determining production capacity requirements?

Forecasting raw material usage

Which of the following is a total measure of productivity?

Output/Inputs

Which of the following is a partial measure of productivity?

Output/Materials

Which of the following is an analytical tool used in 'Measure' phase of DMAIC Six-Sigma quality improvement programs?

Pareto charts

If all you knew about a production system was that total daily output was 400 units and the total labor necessary to produce the 400 units was 350 hours, and the total materials used were 425 units, what kind of productivity measure could you use to compute productivity?

Partial measure and Multifactor measure

Which of the following is considered a high-contact service operation?

Physician practice

Which of the following is NOT a basic type of process structure?

Product-process matrix

The way to build in greater flexibility in your workers is to do which of the following?

Provide a broader range of training.

The Malcolm Baldrige Award selection process helps improve quality and productivity by which of the following means?

Providing feedback to applicants by the examiners

You have been placed in charge of a large project. Shortened communication lines are required to ensure quick resolution of problems as they arise. You recognize that the project is going to take a lot of time and require a lot of team pride, motivation, and commitment by all members. Which project management structure should you use in this situation?

Pure project

Which of the following is not a way that operations and supply processes are categorized?

Selecting

One of the three approaches to delivering on-site service is _____

Self-service approach

Which one of the following is NOT a major factor distinguishing service design and development from manufacturing design and development?

Service operations can be protected by patents; manufacturing operations cannot.

Which of the following is a characteristic that can be used to guide the design of service systems?

Services cannot be inventoried.

Capacity planning involving consideration of production scheduling and inventory position is characterized by which one of the following time durations?

Short range

Getting an autograph from a famous person might involve standing in which type of queuing line structure?

Single channel, single phase

Which of the following are not eligible to be considered for the Baldrige Award?

State highway patrol organizations

When a company seeks to match the benefits of a successful position while maintaining its existing position in offering customers a variety of differing services, what is this process called?

Straddling

For which of the following should we use an R-chart to monitor process quality?

Student grades measured from 1 to 100

There are many applications of poka-yokes in service organizations. Which of the following is one of the three-T's used to classify poka-yokes?

Task

When developing an operations and supply chain strategy, which of the following is an important product-specific criterion to consider?

Technical liaison

You are hired as a consultant to decide if your client should purchase a new, highly specialized piece of equipment. The product to be produced by this equipment is forecast to have a total worldwide demand of 15,000 units over the entire product life. The initial investment to acquire and install the equipment is $256,000. The variable cost to produce each unit will be $15, and the selling price for the finished product will be $30. Which of the following best describes the situation the firm is facing?

The company's total margin will be less than its investment.

Which of the following is an example of a finite population in a queuing system?

The departmental faculty in line at the copier

You have just used the capability index (Cpk) formulas to compute the two values "min [2, 2.5]." Which of the following is the proper interpretation of these numbers?

The mean of the production process has shifted to the left of the design limits.

You have just used the capability index (Cpk) formulas to compute the two values "min [1.5, 1]." Which of the following is the interpretation of these numbers?

The mean of the production process has shifted to the right of the design limits.

A difference between project and continuous flow categories of process flow structures is which of the following?

The size and bulk of the product

In a Gantt chart, the horizontal axis is usually which of the following?

Time

For which of the following should we use an X-bar chart based on sample means to monitor process quality?

Tire pressures in an auto assembly plant

"Product-service bundling" refers to a company building service activities into its product offerings for its customers. True False

True

A high-level map or diagram of a supply chain process can be useful to understand how material flows and where inventory is held. True False

True

An example of an assemble-to-order firm is Dell Computer. True False

True

During a recession, efficient firms often have an opportunity to increase market share while maintaining profitability. True False

True

You are developing an X-bar chart based on sample means. You know the standard deviation of the sample means is 4, the desired confidence level is 99 percent, and the average of the sample means is 20. Which of the following is your LCL?

X-bar = 20, standard deviation = 4 and z = 2.58. LCL = 20 - (2.58 x 4) = 9.68.