MQM Exam 2

The advantage(s) that the Gantt chart has over the network method is (are): A. A Gantt chart is easy to use and quite widely understood. B. Gantt charts show precedence relationships more explicitly than network scheduling. C. Gantt charts require specialized training. D. All of the above

A. A Gantt chart is easy to use and quite widely understood.

The quality cycle: A. Begins with defining customer needs B. Is stated as tolerances or minimum and maximum acceptable limits C. Is used for services, not products D. Produces control points and inspection techniques

A. Begins with defining customer needs

Project managers' objectives include: A. Cost B. Quality C. Flexibility D. All of the above

A. Cost

The five measures of supply chain performance are: A. Cost, quality, flexibility, delivery, and time B. Cost, quality, time, delivery, and reliability C. Inventory, quality, time, delivery, and flexibility D. Inventory, cost, quality, time, and delivery

A. Cost, quality, flexibility, delivery, and time

A complete system of quality control: A. Is defined by critical control points, inspectors, measurements, costs, and other considerations B. Involves a zero defects philosophy C. Requires a continuous scale for measurement of defects D. Must include both variable and attribute measurements

A. Is defined by critical control points, inspectors, measurements, costs, and other considerations

Mean time between failure: A. Is used to measure a product's reliability B. Is used to measure a product's maintainability C. Is used to measure a product's maintainability and availability D. Is a measure of up time/(up time + down time)

A. Is used to measure a product's reliability.

"Slack" refers to the difference between: A. Late and early times B. Finish and start times C. Observed and predicted times D. Optimistic and pessimistic times

A. Late and early times

Which of the following is NOT true of vertical integration? A. Leads to greater flexibility to changing technology. B. Can result in a loss of economies of scale. C. Helps achieve control of the supply chain. D. Reap the profits of the supplier or distributor when there is an attractive return from the investment.

A. Leads to greater flexibility to changing technology.

Materials handling, transportation, and warehousing are elements of: A. Logistics B. Purchasing C. Demand chain management D. Fill rate

A. Logistics

A network-based project scheduling method that requires three time estimates for each activity is: A. PERT B. CPM C. Gantt chart D. All of the above

A. PERT

The project management concept that can best be applied to situations such as R&D, computer systems design, and military invasions is: A. PERT B. CPM C. Gantt chart D. All of the above

A. PERT

The flow of materials from upstream nodes into a firm is called: A. Physical supply B. Physical distribution C. Demand management D. None of the above

A. Physical supply

Project managers' work includes: A. Planning, Scheduling, Control, and Closing B. Planning, Scheduling, Starting, and Ending C. Scheduling, Control, Starting, and Ending D. None of the above

A. Planning, Scheduling, Control, and Closing.

Costs of inspectors, testing, testing equipment, and labs are examples of: A. Prevention costs B. Appraisal costs C. Internal failure costs D. External failure costs

B. Appraisal costs

________ is a combination of reliability and maintainability. A. Field service B. Availability C. Quality of conformance D. Mean time to repair

B. Availability

The number of defects in a product measures: A. Reliability of the process B. Conformance quality of the process C. Repeatability of the process D. Performance quality of the process

B. Conformance quality of the process

The job of the project manager is to: A. Control all costs B. Control costs, schedule, and performance of the project C. Keep within the budget, no matter what D. All of the above

B. Control costs, schedule, and performance of the project

Which of the following is NOT a form of structural change of the supply chain? A. Forward and backward integration B. Creating cross-functional teams C. Major process simplification D. Outsourcing logistics to a third party

B. Creating cross-functional teams

The purpose of performing a forward pass is to: A. Identify the critical path B. Determine the early start and the early finish times C. Determine the late start and the late finish times D. Determine the slack available in the process

B. Determine the early start and the early finish times

Multiple critical paths can exist under the critical path method (CPM) because: A. There is more than one way to complete the project B. Different network paths can have the same total time C. Great flexibility of activity sequences is available D. None of the above

B. Different network paths can have the same total time

Which of the following is NOT true about the cost of quality? A. Cost of quality is actually the cost of poor quality B. Increasing prevention cost increases appraisal, internal and external failure costs C. Training cost is an example of prevention cost D. Warranty is an example of external failure cost

B. Increasing prevention cost increases appraisal, internal and external failure costs

Quality of design: A. Is one of the four decision areas of engineering B. Is determined before production by a cross-functional product design team C. Means a product has high reliability, maintainability, and availability D. Is the prime responsibility of production

B. Is determined before production by a cross-functional product design team

What are the two fundamental processes in all supply chains that are most affected by the Internet? A. Electronic interchange and order placement. B. Order fulfillment and order placement. C. B2B exchanges and order fulfillment. D. None of the above.

B. Order fulfillment and order placement.

Which of the following is a way to improve the infrastructure in the supply chain? A. Forward and backward integration B. Setup time reduction C. Major product redesign D. Outsourcing logistics to a third party

B. Setup time reduction

A Pareto chart: A. Shows causes and effects of quality problems B. Shows the prevalence of the various types of defects that have been found C. Is not useful when first studying a quality problem D. Has both upper and lower specification limits

B. Shows the prevalence of the various types of defects that have been found

Which of the following statements is NOT true about six sigma quality? A. Six sigma results in 3.4 ppm defects B. Six sigma corresponds to 3 standard deviations on either side of the mean C. Six sigma can be applied to administrative and service processes as well D. Motorola invented the term "six sigma quality" in the mid-80s

B. Six sigma corresponds to 3 standard deviations on either side of the mean

The advantage(s) of the network method over the Gantt chart is (are) that: A. The network method is easy to use and quite widely understood. B. The network method shows precedence relationships more explicitly than Gantt charts. C. Network methods are less costly to use. D. All of the above

B. The network method shows precedence relationships more explicitly than Gantt charts.

Which of the following is a form of infrastructure change? A. Process simplification B. Product redesign C. Changes in information systems D. Forward integration

C. Changes in information systems

Which of the following statements about process quality control is NOT true? A. Assignable cause variation is also referred as special cause variation B. An observation outside the control limits is an example of a special cause of variation C. Common cause variation can be eliminated from the process by removing the potential causes D. The control limits will include 99.74% of the population under the normal probability distribution assuming that the process is in control

C. Common cause variation can be eliminated from the process by removing the potential causes

The average cash-to-cash cycle is defined as: A. Days in inventory + Days in account receivable + Days in accounts payable B. Days in inventory - Days in account receivable + Days in accounts payable C. Days in inventory + Days in account receivable - Days in accounts payable D. Days in inventory - Days in account receivable - Days in accounts payable

C. Days in inventory + Days in account receivable - Days in accounts payable

Which of the following is NOT a specific measure of supply chain performance? A. Quality B. Time C. Innovation D. Delivery

C. Innovation

Which of the following statements about critical path method (CPM) is true? A. It is an example of a variable time project scheduling method. B. It is well suited when activity times are expected to vary. C. It is well suited when activity times are fairly constant and can be reduced by spending more money. D. It is well suited for R&D projects and for scheduling computer systems.

C. It is well suited when activity times are fairly constant and can be reduced by spending more money.

Which of the following is NOT a characteristic of changes in structure? A. Are long-range in nature and require considerable capital. B. Include changes in capacity, facilities, process technology, and vertical integration. C. Lead to changes in information systems. D. Are related to bricks and mortar.

C. Lead to changes in information systems.

If an organization were having difficulty trying to get customers' opinions into the definition of quality, which of the following approaches would be most suitable? A. TQM B. ISO 9000 certification C. Quality Function Deployment D. Six-Sigma

C. Quality Function Deployment

SERVQUAL measures which dimension of service quality A. Reliability, Tangibles, Assurance, Empathy, and Conformance Quality B. Performance Quality, Tangibles, Responsiveness, Reliability, and Assurance C. Responsiveness, Tangibles, Empathy, Assurance, and Reliability D. Reliability, Tangibles, Responsiveness, Empathy, and Conformance Quality

C. Responsiveness, Tangibles, Empathy, Assurance, and Reliability

A process control chart: A. Assumes that 99.74% of special cause variation will fall between upper and lower limits B. Has upper and lower control limits set at ± 2 standard deviations from the center line C. Separates the assignable cause of variation from the common cause of variation D. Assigns causes of variation to operator, machine, or material

C. Separates the assignable cause of variation from the common cause of variation

The design and management of seamless, value-added processes across organizational boundaries to meet the real needs of the end customer is called: A. Demand management B. Distribution channel management C. Supply chain management D. Logistics management

C. Supply chain management

Which of the following is NOT true about supply chain dynamics? A. The supply chain is a highly interactive system. B. There is an accelerator effect in the supply chain due to replenishment lead times. C. The best way to improve the supply chain is to increase the total replenishment time and to feed back actual demand information to all levels. D. All of the above statements are true.

C. The best way to improve the supply chain is to increase the total replenishment time and to feed back actual demand information to all levels.

Gantt charts are effective for project scheduling if: A. Activities are highly interconnected B. Activity times are random C. The project contains simple activity sequences D. All of the above

C. The project contains simple activity sequences

One of the earliest steps in designing a quality control system is to decide on: A. The amount of inspection to use B. Who should do the inspection C. The type of measurement to be used D. Training workers to perform inspection on their own work

C. The type of measurement to be used

Which of the following statements is NOT true regarding supply chain operations? A. All elements of the supply chain are interconnected and dependent on each other. B. Demand changes by the end user can create a bullwhip effect in the supply chain. C. With perfect information at all levels of the supply chain, there will not be a bullwhip effect. D. Time lags in the supply chain serve to create fluctuations in orders and inventories.

C. With perfect information at all levels of the supply chain, there will not be a bullwhip effect.

An assumption of the PERT method is: A. Activity times are not constant. B. There is uncertainty in individual activity time estimates. C. Distribution of project completion times and the probability that each activity is on the critical path can be computed. D. All of the above

D. All of the above

Backward or upstream supply chain flows include: A. Information B. Monetary payments C. Materials D. All of the above

D. All of the above

Project management requires: A. Scheduling, planning, and controlling B. Quantitative skills C. Behavioral skills D. All of the above

D. All of the above

The Baldrige Award is given in which of the following categories? A. Manufacturing companies. B. Small businesses. C. Healthcare organizations. D. All of the above.

D. All of the above

The information calculated from the forward and backward pass can be used for: A. Identifying the critical path B. Calculating slack C. Determining the final completion date of the project D. All of the above

D. All of the above

Which of the following does the Supply Chain Operations Reference (SCOR) model NOT include? A. Make. B. Deliver. C. Return. D. All of the above are included.

D. All of the above are included.

A cause-and-effect diagram: A. Identifies common causes of quality defects B. Is often used in conjunction with a Pareto chart C. Is also called a fishbone diagram D. All of the above are true

D. All of the above are true

Which of the following is/are assumption(s) of process control? A. Random variability cannot be eliminated unless the process is redesigned. B. Common causes represent random variability. C. Production processes are not usually found in a state of control. D. All of the above.

D. All of the above.

Which of the following statements is true about a critical path? A. It consists of activities for which early start time equals late start time. B. The total time of activities on the path take the longest time. C. There is no slack in the activities along the critical path. D. All of the above.

D. All of the above.

The appearance of a restaurant meal that is not satisfactory is an example of: A. Variable measurement B. Mean chart C. Range chart D. Attribute measurement E. None of the above

D. Attribute measurement

Which of the following is NOT a type of e-procurement? A. Private exchanges B. Third party auctions C. Online catalogs D. B2B marketplaces

D. B2B marketplaces

A product's conformance to specifications: A. Is in response to customers' needs B. Determines sales price to the customer C. Is defined as continuity of service to the customer D. Is independent of the quality of design

D. Is independent of the quality of design

Controlling a project does NOT include: A. Monitoring costs, time, and performance B. Adhering to the budget C. Correcting the plan as necessary D. None of the above

D. None of the above

The six-step quality cycle approach includes all of the following EXCEPT: A. Set quality standards B. Define quality attributes on the basis of customer needs C. Find and correct causes of poor quality D. Reward employees for quality improvement

D. Reward employees for quality improvement

Order placement via the Internet does NOT include: A. Increasing the accuracy of the order B. Faster order entry C. Manufacturing and shipment status D. Use of an ERP system to schedule production

D. Use of an ERP system to schedule production

Sampling inspection by attributes: A. Means each item sampled is classified as defective or not defective based on quality standards B. Could be used together with process control and variable measurement as part of a quality control system C. Utilizes a discrete scale of measurement D. a, b, and c

D. a, b, and c

The reasons for failure of quality improvement efforts include: A. Managers continue to focus on short-term financial results B. Managers instinctively blame employees when there is a quality failure C. Managers interfere with true teamwork D. a and b E. a, b, and c

E. a, b, and c

Attribute control occurs when the product characteristic is measured on a continuous scale.

FALSE

Availability refers to the length of time a product can be used before it fails.

FALSE

Critical path method (CPM) network scheduling assumes a second order (non-linear) time-cost tradeoff exists.

FALSE

Delivery has three performance measures: on-time delivery, fill rate, and unit cost.

FALSE

Demand chain management tries to match supply and demand.

FALSE

ISO 9000 standards guarantee that a product or service has no defects

FALSE

If a company uses three parts in a product, each with a yield of 50%, the overall rolled-yield will equal 50%.

FALSE

In process capability analysis, the standard deviation (σ) refers to the standard deviation of sample measures.

FALSE

It is bad to have a negative cash-to-cash cycle in which the firm receives payment before it pays its suppliers.

FALSE

Major product redesign is often needed to make infrastructure improvements in the supply chain.

FALSE

SERVQUAL is widely used in practice to measure manufacturing operations such as production and assembling processes.

FALSE

Six Sigma efforts are aimed at eliminating waste.

FALSE

The central tendency (mean) of the process is the only information needed to determine if the process is in a state of control.

FALSE

The quality tool that shows the relationship between two variables is a histogram.

FALSE

"A production process delivers large amount of scrap products. Top management has discovered that improper machine maintenance is the reason behind this failure." The above statement is an example of a special cause of variation.

TRUE

A forward pass is required while computing the early start and early finish times of activities.

TRUE

A work-breakdown structure is used in the scheduling activity of project management.

TRUE

Final consumers can be found farthest downstream in the supply chain.

TRUE

If failure costs were very high, a company would still use inspection.

TRUE

In supply chain improvement, it is often necessary to reduce the setup time of equipment dramatically so that smaller lots of the product can be economically produced.

TRUE

It is important to determine the quality of design even before producing the product.

TRUE

Lean is another term for Six Sigma process improvement.

TRUE

Lean projects are usually simpler than six sigma projects.

TRUE

Scrap and rework are examples of internal failure costs.

TRUE

Six Sigma projects are typically managed by workers certified as black belts.

TRUE

The Baldrige Award is only given in the U.S.

TRUE

The Japanese term for mistake-proofing is "poka-yoke."

TRUE

The early start and late start times are equal for an activity on the critical path of a network.

TRUE

The objective of structural and infrastructure changes is the same: To remove sources of uncertainty, to reduce replenishment time, and to reduce total cost of supplying the market.

TRUE

The seven tools of quality control are equally applicable to both manufacturing and service industries.

TRUE

The total cost of quality in an organization is the sum of control costs and failure costs.

TRUE

There are two indicators of a process shift—points outside the control limits and an upward or downward trend in the process average.

TRUE