OP CHAPTER 10
Low-cost, high-volume items often require more intensive inspection.
FALSE
Which of the following quality control sample statistics indicates a quality characteristic that is an attribute? A. mean B. variance C. standard deviation D. range E. proportion
E. proportion
An "up and down" run test uses the median as a reference point and measures the percentage above and below the median.
FALSE
An R value of zero (on a range chart) means that the process must be in control since all sample values are equal.
FALSE
An x-bar control chart can only be valid if the underlying population it measures is a normal distribution.
FALSE
Approving the effort that occurs during the production process is known as acceptance sampling.
FALSE
Approximately 99.7% of sample means will fall within ± two standard deviations of the process mean if the process is under control.
FALSE
Attributes need to be measured, variable data can be counted.
FALSE
Control limits used on process control charts are specifications established by design or customers.
FALSE
The purchasing cycle ends when the purchasing department is notified that the supplier has shipped the items.
FALSE The purchasing cycle ends when the shipment has been received in satisfactory condition.
Centralized or decentralized purchasing is directly related to the size of an organization.
FALSE The use of centralized or decentralized purchasing is independent of organization size.
Cost of inspectors, testing, test equipment, and labs are examples of prevention costs.
FALSE These are appraisal costs.
The design of the supply chain and establishing partnerships with vendors and distributors are examples of operating issues in a supply chain.
FALSE These are tactical responsibilities.
In market research, a group of consumers who express their opinions about a product or service is called a steering committee.
FALSE This would be called a focus group.
Attribute data are counted, variable data are measured.
TRUE
Control limits tend to be wider for more variable processes.
TRUE
If a point on a control chart falls outside one of the control limits, this suggests that the process output is non-random and should be investigated.
TRUE
Run tests are useful in helping to identify nonrandom variations in a process.
TRUE
The amount of inspection needed is governed by the costs of inspection and the expected costs of passing defective items.
TRUE
The variation of a sampling distribution is tighter than the variation of the underlying process distribution.
TRUE
When a process is not centered, its capability is measured in a slightly different way. The symbol for this case is Cpk.
TRUE
Concluding a process is out of control when it is not is known as a Type I error.
TRUE A Type I error involves erroneously concluding that a process is out of control.
The purpose of benchmarking is to establish a standard against which the organization's performance can be judged, and to identify a model for possible improvement.
TRUE Benchmarking is used to establish a standard against which performance can be judged.
Six sigma programs have both management and technical components.
TRUE Both management and technical components are part of six sigma programs.
An advantage of decentralized purchasing is the attention given to local needs.
TRUE Decentralized purchasing is more responsive to specific needs.
Delayed differentiation is a means of increasing product variety without building the customized product from scratch or keeping large inventories of custom products.
TRUE Delayed differentiation is used to create customized output without large inventories.
The dimensions of product and service quality are too abstract to be applied operationally.
TRUE Determinants of quality are more readily applied operationally.
Using third-party fulfillment means losing control of fulfillment.
TRUE Outsource this key function means a loss of control.
One of the major reasons for a company to adopt third-party logistics is to concentrate on one's core business.
TRUE Outsourcing logistics to third parties enables a company to focus on its core business.
The goal of supply chain management is to synchronize supply and demand of all of the organizations that are part of the chain.
TRUE Synchronizing multiple organizations is one of the difficulties of supply chain management.
Creating an effective supply chain requires linking the marketing, distribution, and supplier channels.
TRUE These need to be synchronized if the supply chain is to be effective.
The sampling distribution can be assumed to be approximately normal even when the underlying process distribution is not normally distributed.
TRUE This is especially true as the sample size grows.
Producing and shipping in large lots may reduce costs but increase lead times.
TRUE This is one of the tradeoffs in supply chain management
Frequent deliveries of small shipments can reduce inventory but also result in an increase in the transportation cost per unit.
TRUE This is one of the tradeoffs inherent in supply chain management.
Fixing a problem will often cost money; to minimize these costs it is best to find and fix the problem _______.
during the design phase
Which of the following is not a characteristic of service operations?
easy measurement of productivity
One way to increase reliability is to:
improve preventive maintenance procedures
The term 'standardization' is closely associated with:
interchangeability
Which type of processing system tends to produce the most product variety?
job-shop
In project network analysis, "slack" refers to the difference between:
latest and earliest times
Which of the following is not true about process layouts when they are compared to product layouts?
lower unit costs
Which of the following is not an ongoing trend in manufacturing?
mass production for greater economies of scale
A common goal in designing process layouts is:
minimizing transportation costs
The fundamental purpose for the existence of any organization is described by its:
mission statement
Farming is an example of:
non-manufactured goods
Which of these factors wouldn't be subtracted from design capacity when calculating effective capacity?
operating hours per day
Daily capacity of a product layout is determined by:
operating time divided by cycle time
Scheduling personnel is an example of an operations management:
operational decision
Which of the following raises quality risks?
outsourcing to less-developed countries
Quality planning and administration, quality training, and quality control procedures are examples of _______.
prevention costs
Product profiling links key product or service requirements to:
process capabilities.
Computer-aided manufacturing (CAM) refers to the use of computers in:
process control
Which of the following quality control sample statistics indicates a quality characteristic that is an attribute?
proportion
Maximum capacity refers to the upper limit of:
rate of output
The Baldrige award is based on seven categories. Which is not one of those?
relative profitability
In which type of operations are you likely to see, at most, only minor variations in the product or service being produced using the same process and the same equipment?
repetitive production
If customer satisfaction doesn't always lead to customer loyalty, firms may need to focus additional effort on __________ strategies.
retention
The process of dismantling and inspecting a competitor's new or revised product for the purpose of gleaning design ideas is called:
reverse engineering
Production systems with customized outputs typically have relatively:
skilled workers
Business organizations consist of three major functions which, ideally:
support one another
Product design and process selection are examples of _______ decisions.
system design
Which of the following is not a reason for poor performance of our organization in the marketplace?
taking advantage of strengths/opportunities, and recognizing competitive threats
The tool that is useful in documenting the current process is:
the flow chart
When developing probabilistic estimates of project duration, it is necessary to know which of the following?
the mean and variance of every activity
Processes that are in control eliminate variations.
FALSE
An organization achieves quality by consistently meeting their competitor's standards.
FALSE An organization achieves quality by meeting or exceeding customer expectations.
An "up and down" run test uses the median as a reference point and measures the percentage above and below the median.
FALSE An up-and-down runs test looks only at runs of increasing or decreasing values.
The Baldrige award can only be won by manufacturing organizations.
FALSE It can and has been won by service organizations.
Because 'courtesy' is subjective, it can't be considered a factor in service quality.
FALSE Many dimensions of quality are subjective.
The materials in the supply chain flow toward the end of the chain, while the information and the dollars move toward the beginning of the chain.
FALSE Material flows toward the final consumer and information and dollars flow upstream.
Modern quality management emphasizes finding and correcting mistakes before they reach the customer - catching the errors before they are shipped
FALSE Modern quality management emphasizes avoiding mistakes before they ever happen.
A c-chart is used to monitor the total number of defectives in the output of a process.
FALSE
Doctor J. is considering purchasing a new blood analysis machine to test for HIV; it will cost $60,000. He estimates that he could charge $25.00 for an office visit to have a patient's blood analyzed, while the actual cost of a blood analysis would be $5.00. What would be his profit if he were to perform 5,000 HIV blood analyses?
$40,000
A Virginia county is considering whether to pay $50,000 per year to lease a prisoner transfer facility in a prime location near Washington, D.C. They estimate it will cost $50 per prisoner to process the paperwork at this new location. The county is paid a $75 commission for each new prisoner they process. What would be the county's annual profit if they were to process 4,000 prisoners per year at this new location?
$50,000
The owner of Firewood To Go is considering buying a hydraulic wood splitter which sells for $50,000. He figures it will cost an additional $100 per cord to purchase and split wood with this machine, while he can sell each cord of split wood for $125. What would the potential profit be if he were to split 4,000 cords of wood with this machine?
$50,000
The owner of a greenhouse and nursery is considering whether to spend $6,000 to acquire the licensing rights to grow a new variety of rosebush, which she could then sell for $6 each. Per-unit variable cost would be $3.What would the profit be if she were to produce and sell 5,000 rosebushes?
$9,000
The Chair of the Operations Management Department at Quality University wants to construct a p-chart for determining whether the four faculty teaching the basic P/OM course are under control with regard to the number of students who fail the course. Accordingly, he sampled 100 final grades from last year for each instructor, with the following results. What are the .95 (5% risk of Type I error) upper and lower control limits for the p-chart? Instructor Number of Failures Prof. A 13 Prof. B 0 Prof. C 11 Prof. D 16
.1588 and .0412
A town's department of public works is concerned about adverse public reaction to a sewer project that is currently in progress. Because of this, the Commissioner of Public Works has authorized a weekly survey to be conducted of town residents. Each week, a sample of 100 residents is questioned on their feelings towards the project. The results to date are shown below. Analyze this data using control charts that would provide for a 5% risk of Type I error. Find the up and low control limits. Week 1 2 3 4 5 6 7 8 N. Opposed 10 8 12 6 4 14 8 10
0.34, 0.146
Management wants to design an assembly line that will turn out 800 videotapes per day. There will be eight working hours in each day. The industrial engineering staff has assembled the information below. Determine the optimum cycle time. Task Time (min) Immediate Predecessor a 0.2 none b 0.2 a c 0.4 none d 0.1 none e 0.3 c, d f 0.2 b, e g 0.1 none h 0.2 f, g i 0.6 h
0.6 min/cycle
In the project network presented below, numbers on each arrow refer to the expected time and standard deviation in weeks for that particular activity. For example, "8,2" indicates an activity with an expected time of 8 and a standard deviation of two weeks. For this project, determine the activities which are on the critical path
1-3-6-7
The maker of the world-famous Chocolate Chip Cookies needs to design a product layout for a new product, Mint Chocolate Chip. The company plans to use this new production line eight hours a day in order to meet projected demand of 1,440 cases per day. The following table describes the tasks involved in the production of a Mint Chocolate Chip Cookie. Without considering projected demands, what is the minimum possible cycle time for this production line? Task Time(sec) Immediate Predecessor u 4 none v 14 u w 12 v x 12 v y 6 w z 8 x,y
14 seconds
A production line is to be designed for a job with three tasks. The task times are 0.4 minutes, 1.2 minutes, and 0.5 minutes. The maximum cycle time in minutes is:
2.1
Given the following line balance data. What is the minimum possible cycle time? Task Predecessor Time(sec) t none 15 u t 14 v t 7 w u 6 x v 8 y w, x 10 z y 21
21 seconds
What is the break-even quantity for the following situation? FC = $1,200 per week VC = $2 per unit Rev = $6 per unit
300 A volume of 300 units leads to $1,200 in margin to offset fixed costs.
he efficiency of a productive unit is 60%. The unit produces an average of 20 forklift trucks per day. Determine the effective capacity of the unit.
33.33
Gourmet Pretzels bakes soft pretzels on an assembly line. It currently bakes 800 pretzels each 8-hour shift. If the production is increased to 1,200 pretzels each shift, then productivity will have increased by:
50%
A company is designing a product layout for a new product. It plans to use this production line eight hours a day in order to meet projected demand of 480 units per day. The tasks necessary to produce this product is shown in the table below. Without regard to demand, what is the minimum possible cycle time (in seconds) for this situation? Task Time(sec) Immediate Predecessor u 30 none v 30 u w 6 u x 12 w y 54 x z 30 v, y
54
Given the following information, what would efficiency be? Effective capacity = 80 units per day Design capacity = 100 units per day Utilization = 48%
60%
Suppose a country's productivity last year was 84. If this country's productivity growth rate of 5% is to be maintained, this means that this year's productivity will have to be _______.
88.2
QRS Corp. is designing a product layout for a new product. They plan to use this production line ten hours a day in order to meet forecasted demand of 900 units per day. The following table describes the tasks necessary to produce this product. For output to equal forecasted demand, what will be the efficiency of the production line that uses the least number of workstations? Task Time(sec) Immediate Predecessor a 34 none b 20 a c 10 b d 16 b e 10 c f 24 d, e g 38 f
95%
Which of the following is not true about systems approach?
A systems approach concentrates on efficiency within subsystems.
Which of the following is considered to be a cause of poor U.S. global competitiveness?
A. decision-making based on short-term horizons B. the tendency to view labor as a cost factor to be minimized CorrectC. all of the other statements D. powerful trading partners E. weaknesses in technological practice All
Operation X feeds into Operation Y. Operation X has an effective capacity of 55 units per hour. Operation Y has an effective capacity of 50 units per hour. Increasing X's effective capacity to ensure that Y's utilization is maximized would be an example of ________ a constraint.
A. outsourcing B. cushioning C. insourcing D. overcoming E. none of the others
What is the sample proportion of defectives for machine #1?
A. .023 Divide the number of defectives by the sample size.
What is the estimate of the mean proportion of failures for these instructors?
A. .10 Average the sample proportions.
What is the sample mean package weight for Thursday?
A. 19 ounces Average the four values.
The following data occurs chronologically from left to right: The number of runs with respect to the sample median is:
A. 2 The sample median is 15.2.
The number of runs with respect to the sample median is:
A. 3 Count the number of runs above or below the median.
If he uses upper and lower control limits of 22 and 18 ounces, on what day(s), if any, does this process appear to be out of control?
A. Monday This day's sample average is outside of the control limits.
A chart showing the number of occurrences by category would be used in: A. Pareto analysis B. interviewing C. cause-and-effect diagrams D. benchmarking E. none of the above
A. Pareto analysis We would look for root causes to the most frequently occurring quality failures.
Last quarter, a retailer sold 8,000 t-shirts, 7,000 of which were sold directly from on-hand inventory. This retailer's ________ was 88%. A. fill rate B. inventory yield C. profit margin D. inventory turnover E. none of the above
A. fill rate This retailer's fill rate was 88%.
Lost production time, scrap, and rework are examples of ________. A. internal failure costs B. external failure costs C. appraisal costs D. prevention costs E. replacement costs
A. internal failure costs These are internal failure costs.
For upper and lower control limits of 23.29 and 16.71, which machine(s), if any, appear(s) to have an out-of-control process mean?
A. machine #1 This machine's sample average fell outside the control limits.
A control chart used to monitor the fraction of defectives generated by a process is the: A. p-chart B. R-chart C. x-bar chart D. c-chart E. Gantt chart
A. p-chart
The interface between the firm and its suppliers is: A. purchasing B. production C. distribution D. engineering E. accounting
A. purchasing The purchasing function bridges the organization and its suppliers.
Which of the following is not a measure of the reliability of the supply chain? A. supply chain response time B. on-time delivery C. fill rate D. lead time variability E. improving e-fulfillment statistics
A. supply chain response time Response time is a measure of supply chain effectiveness.
Examination of the sources of supply for purchased parts or materials in order to improve performance is called: A. vendor analysis B. value analysis C. negotiated purchasing D. reverse engineering E. disintegration
A. vendor analysis Performance can be evaluated with respect to price, quality, reputation or service.
A firm is considering three capacity alternatives: A, B, and C. Alternative A would have an annual fixed cost of $100,000 and variable costs of $22 per unit. Alternative B would have annual fixed costs of $120,000 and variable costs of $20 per unit. Alternative C would have fixed costs of $80,000 and variable costs of $30 per unit. Revenue is expected to be $50 per unit. Which alternative has the lowest break-even quantity?
Alternative A
_______ variation is a variation whose cause can be identified.
Assignable
What are the control chart upper and lower control limits for an alpha risk of .05?
B. .0287 and .0113 These are two-sigma limits.
What is the estimate of the standard deviation of the sampling distribution for an instructor's sample proportion of failures?
B. .03 Use the formula for the standard deviation of the sample proportion.
If he uses upper and lower control limits of 22 and 18 ounces, what is his risk (alpha) of concluding this process is out of control when it is actually in control (Type I error)?
B. 0.0456 These are two-sigma limits.
If he uses upper and lower control limits of 520 and 480 hours, what is his risk (alpha) of concluding service life is out of control when it is actually under control (Type I error)?
B. 0.0456 These are two-sigma limits.
Studies on a machine that molds plastic water pipe indicate that when it is injecting 1-inch diameter pipe, the process standard deviation is 0.05 inches. The one-inch pipe has a specification of 1-inch plus or minus 0.10 inch. What is the process capability index (Cpk) if the long-run process mean is 1 inch? A. 0.50 B. 0.67 C. 1.00 D. 2.00 E. none of the above
B. 0.67
What is the sample mean for machine #1?
B. 16 Average the four values.
What is the estimate of the sample average range based upon this limited sample?
B. 4.33 Average the sample ranges.
Management behaviors supporting an organizational culture that encourages continuous improvement include which of the following? (I) develop a vision statement for the organization (II) develop a reward system that promotes the philosophy (III) institute continuous training programs (IV) make decisions that adhere to the philosophy A. I, II, and IV B. I, II, III, and IV C. I and III D. II, III, and IV E. II and IV
B. I, II, III, and IV All of these would reflect management focused on continuous improvement.
Which of the following is part of the purchasing cycle? (I) Purchasing selects a supplier. (II) Orders from vendors are received. (III) Purchasing receives a requisition. A. II and III B. I, II, and III C. I only D. I and II E. I and III
B. I, II, and III These are all part of the purchasing cycle
The Deming Prize was established by the _________. A. American Statistical Association B. Japanese C. North American Free Trade Association D. American Quality Society E. World Trade Organization
B. Japanese The Deming Prize is a prominent Japanese quality award.
Using .95 control limits, (5% risk of Type I error), which instructor(s), if any, should he conclude is (are) out of control?
B. Prof. B C. Prof. D D. both Prof. B and Prof. D These fall outside the control limits.
The activity which begins with a request from within the organization is: A. Outsourcing search B. Purchasing cycle C. Supplier selection D. Order receipt E. Supply chain management
B. Purchasing cycle The purchasing cycle begins with a requisition.
The automatic identification of material is part of/facilitated by: A. holding costs B. RFID C. working capital reduction D. net present value calculations E. vendor analysis
B. RFID RFID facilitates the automatic identification of material.
Vendor Analysis is the examination of the _________ of purchased materials. A. Function B. Source C. Quality D. Cycle E. Quantity
B. Source Sources of supply are evaluated in vendor analysis.
One important objective of purchasing is to: A. set quality standards for purchased items B. be knowledgeable about new products C. maintain numerous sources of supply D. obtain the lowest prices on all purchased items E. determine the processes that should be used
B. be knowledgeable about new products Purchasing can play a crucial role by helping solidify the supplier base for a new product.
Focusing a supply chain on ________________ is a modern way of ensuring high quality inputs and a ready supply of process-improvement ideas. A. lowest cost-per unit sourced B. close, collaborative ties with suppliers C. suppliers that emphasized continuous-flow production D. ISO 14000 customers E. partners pursuing similar strategies
B. close, collaborative ties with suppliers Collaborative relationships with suppliers often lead to higher quality.
The website and order fulfillment are essential features of: A. delayed differentiation B. e-commerce C. internet service providers D. inventory balancing E. market segmentation
B. e-commerce These are front-end and back-end facets of e-commerce.
Warranty service, processing of complaints, and costs of litigation are examples of ________. A. internal failure costs B. external failure costs C. appraisal costs D. prevention costs E. replacement costs
B. external failure costs These are external failure costs.
Cause-and-effect diagrams are sometimes called: A. Pareto diagrams B. fishbone (Ishikawa) diagrams C. run charts D. control charts E. none of the above
B. fishbone (Ishikawa) diagrams These help in thinking through what might be causing a quality program.
A factor that makes it desirable for business organizations to actively manage their supply chains is: A. more potential vendors B. increasing globalization C. downsizing D. the internet E. RFID's
B. increasing globalization Globalization is making supply chain management more important.
The more effective and all-encompassing a firm's quality control and continuous improvement efforts, the less that company will need to rely on: A. insourcing. B. inspection. C. outsourcing. D. acceptance sampling. E. capability assessment.
B. inspection.
The purchasing perspective of the supplier as a partner is characterized by: A. an emphasis on low prices B. one or a few suppliers C. low flexibility D. 100% inspection for quality E. low volume
B. one or a few suppliers Fewer suppliers enhance the chances of building real partnerships.
Which of the following raises quality risks? A. currency fluctuations B. outsourcing to less-developed countries C. empowering employees D. benchmarking E. streamlining the supplier base
B. outsourcing to less-developed countries Quality risks increase when outsourcing to less-developed countries.
The four dimensions of quality that are sometimes used to determine fitness for use of a product are ______. A. performance, special features, durability, and service after sale B. performance, special features, conformance, and reliability C. special features, conformance, reliability, and durability D. performance, conformance, reliability, and durability E. special features, conformance, durability, and service after sale
B. performance, special features, conformance, and reliability These are the four dimensions of quality that are sometimes used to determine fitness for use of a product.
The basis for a statistical process control chart is a(the) __________.
B. sampling distribution Control charts reflect the sampling distribution of an in control process.
A shift in the process mean for a measured characteristic would most likely be detected by a: A. p-chart B. X-BAR CHART C. c-chart D. R-chart E. s-chart
B. x-bar chart
What are the .95 (5% risk of Type I error) upper and lower control limits for the p-chart?
C. .1588 and .0412 These are two-sigma limits.
What is the standard deviation of the sampling distribution of sample means for whenever service life is in control?
C. 10 hours Use the central limit theorem.
What is the estimate of the process mean for whenever it is under control?
C. 20 Average the sample averages.
What is the mean of the sampling distribution of sample means when this process is under control?
C. 20 ounces When the process is in control, this is its mean value.
The number of runs up and down is:
C. 4 Count the number of up and down runs.
The number of runs up and down for the data above is:
C. 5 Count the number of up and down runs.
Our organization can obtain visibility to potential trading partners on the internet by using: A. C2C B. B2C C. B2B D. C2B E. None of the above
C. B2B B2B helps the organization let the market know of the organization's needs.
Outsourcing followed by __________ is not simple. A. Integration B. Unionization C. Backsourcing D. Computerization E. Just-in-time
C. Backsourcing Backsourcing is difficult to implement effectively if outsourcing has been done.
A time-ordered plot of sample statistics is called a(n) ______ chart. A. Statistical B. Inspection C. CONTROL D. SIMO E. Limit
C. Control
A tool that depicts process variation graphically is a(n) _________. A. Affinity diagram B. Check list C. Control Chart D. Flow Chart E. Relationship diagram
C. Control Chart Control charts depict process variation.
Which isn't a cost of quality? A. Prevention cost B. External failure C. Extended Service Contracts D. Internal failure E. Appraisal costs
C. Extended Service Contracts Extend service contracts are quality costs.
If a process is performing as it should, it is still possible to obtain observations which are outside of which limits? (I) tolerances (II) control limits (III) process variability A. I B. II C. I and II D. II and III E. I, II, and III
C. I and II
. Which of the following is an advantage of E-business? (I) reduction of transaction costs (II) shortened supply chain response time (III) greater customer loyalty A. I B. II C. I and II D. II and III E. I, II, and III
C. I and II Gaining and maintaining customer loyalty is even more difficult once a firm is involved in E-business
A plot below the lower control limit on the range chart: (I) should be ignored since lower variation is desirable (II) may be an indication that process variation has decreased (III) should be investigated for assignable cause A. I and II B. I and III C. II and III D. II only E. I, II, and III
C. II and III
What is the mean of the sampling distribution of sample means when service life is in control?
D. 500 hours Average the sample means.
A plot below the lower control limit on the range chart: (I) should be ignored since lower variation is desirable (II) may be an indication that process variation has decreased (III) should be investigated for assignable cause
C. II and III Plots outside of control limits should be investigated.
_________ has helped business concentrate on their core business. A. Supply Chains B. Scheduling C. Outsourcing D. ERP E. Lean Production
C. Outsourcing Outsourcing enables firms to focus on what they do, or should do, best.
The quality control improvement tool which distinguishes between the "important few" and the "trivial many" is __________. A. brainstorming B. check sheets C. Pareto analysis D. cause-and-effect diagrams E. fail-safe methods
C. Pareto analysis Pareto analysis focused on the 80/20 phenomenon.
Loss of business, liability, productivity and costs are consequences of _______. A. Labor Unions B. Globalization C. Poor Quality D. Robotics E. Micro-factories
C. Poor Quality Poor quality increases these costs.
. Which of the following is not a performance driver? A. Quality B. Cost C. Stability D. Velocity E. Flexibility
C. Stability Stability is not a performance driver.
Which of the following relationships must always be incorrect? A. Tolerances > process variability > control limits B. Process variability > tolerances > control limits C. Tolerances > control limits > process variability D. Process variability > control limits > tolerances E. Process variability <Tolerances<control limits
C. Tolerances > control limits > process variability
Which of the following relationships must always be incorrect?
C. Tolerances > control limits > process variability Process variability will always be greater than control limits.
Which of the following relationships must always be incorrect? A. Tolerances > process variability > control limits B. Process variability > tolerances > control limits C. Tolerances > control limits > process variability D. Process variability > control limits > tolerances E. Process variability <Tolerances<control limits
C. Tolerances > control limits > process variability Process variability will always be greater than control limits.
The tool that is useful in the collection and organization of data is: A. a control chart B. a Pareto chart C. a check sheet D. a flow chart E. none of the above
C. a check sheet Check sheets help in the collection and organization of data.
Costs of inspectors, testing, test equipment, and labs are examples of ________. A. internal failure costs B. external failure costs C. appraisal costs D. prevention costs E. replacement costs
C. appraisal costs These are appraisal costs.
What is the sample mean service life for sample 2?
D. 515 hours Average the four observations.
A quality improvement technique that involves the sharing of thoughts and ideas in a way that encourages unrestrained collective thinking is: A. Pareto analysis B. benchmarking C. brainstorming D. a control chart E. a check sheet
C. brainstorming Brainstorming involves the sharing of thoughts and ideas in a way that encourages unrestrained collective thinking.
Which of the following is not a step in the quality control process? A. define what is to be controlled B. compare measurements to a standard C. eliminate each of the defects as they are identified D. take corrective action if necessary E. evaluate corrective action
C. eliminate each of the defects as they are identified
Which of the following is not a step in the quality control process?
C. eliminate each of the defects as they are identified Eliminating defects is not part of quality control.
Which of the following is not a step in the quality control process? A. define what is to be controlled B. compare measurements to a standard C. eliminate each of the defects as they are identified D. take corrective action if necessary E. evaluate corrective action
C. eliminate each of the defects as they are identified Eliminating defects is not part of quality control.
Which of the following is not a benefit of RFID? A. increased productivity B. elimination of paper work C. frequent deliveries of smaller shipments D. reduction in clerical labor E. increased accuracy
C. frequent deliveries of smaller shipments RFID does little to facilitate the cost reductions required to make frequent, small deliveries feasible.
If the output rate is increased but the average unit costs also increase we are experiencing:
diseconomies of scale.
For upper and lower control limits of .026 and .014, which machine(s), if any, appear(s) to be out-of-control for process proportion of defectives?
C. machines #3 and #4 The sample proportions of these samples fall outside the control limits.
Which of the following is not a benefit of centralized purchasing? A. potential for quantity discounts B. better service from suppliers C. quick response to local needs D. potential for use of purchasing specialists E. supplier research
C. quick response to local needs Quick response to local needs is a benefit of decentralized purchasing.
If he uses upper and lower control limits of 520 and 480 hours, on what sample(s) (if any) does service life appear to be out of control?
C. sample 3 Sample 3's sample mean is below the lower control limit.
A point which is outside of the lower control limit on an R-chart: A. is an indication that no cause of variation is present B. should be ignored because it signifies better than average quality C. should be investigated because an assignable cause of variation might be present D. should be ignored unless another point is outside that limit E. is impossible since the lower limit is always zero
C. should be investigated because an assignable cause of variation might be present
A point which is outside of the lower control limit on an R-chart: A. is an indication that no cause of variation is present B. should be ignored because it signifies better than average quality C. should be investigated because an assignable cause of variation might be present D. should be ignored unless another point is outside that limit E. is impossible since the lower limit is always zero
C. should be investigated because an assignable cause of variation might be present Points outside of the control limits should be investigated as signals of non-random variation being present.
A p-chart would be used to monitor _______.
C. the fraction defective The p-chart monitors the fraction defective.
What are the x-bar chart three sigma upper and lower control limits?
D. 23.16 and 16.84 Use control chart factors of a sample size of four.
Which of the following is least likely to be a key consideration when a company chooses a supplier? A. lead time and on-time delivery B. reputation and financial stability C. value analysis D. quality and Quality assurance E. flexibility of design change
C. value analysis All the others are highly likely to be considered in supplier selection.
A control chart used to monitor the process mean is the: A. p-chart B. R-chart C. x-bar chart D. c-chart E. Gantt chart
C. x-bar chart
In project management shortening activity durations is called:
Crashing
What is the estimate of the standard deviation of the sampling distribution of sample proportions for whenever this process is under control?
D. .0044 Use the formula for the standard deviation of the sample proportions.
What is the estimate of the process proportion of defectives for whenever it is under control?
D. .02 Average the sample proportions.
When a process is in control, it results in there being, on average, 16 defects per unit of output. C-chart limits of 4 and 28 would lead to a _______ chance of a Type I error.
D. 0.3% These would be three-sigma limits.
What is the standard deviation of the sampling distribution of sample means for whenever this process is under control?
D. 1 ounce Use the central limit theorem.
Studies on a bottle-filling machine indicates it fills bottles to a mean of 16 ounces with a standard deviation of 0.10 ounces. What is the process specification, assuming the Cpk index of 1? A. 0.10 ounces B. 0.20 ounces C. 0.30 ounces D. 16.0 ounces plus or minus 0.30 ounces E. none of the above
D. 16.0 ounces plus or minus 0.30 ounces
Small changes in consumer demand can result in large variations in orders placed because of the ¼ A. Supply chain B. Safety stock requirement C. Lead time effect D. Bullwhip effect E. FCFS scheduling
D. Bullwhip effect Variations are amplified as they move backwards in the supply chain.
Which of the following is a barrier to integration of separate organizations in the supply chain? (I) conflicting objectives of the companies in the chain. (II) different level of capacity of the companies in the chain. (III) reluctance of the organizations in the chain to allow other organizations access to their data. A. I only B. I and II C. II and III D. I and III E. I, II and III
D. I and III Capacity imbalances can be overcome, but conflicting objectives and mistrust are substantial barriers.
The probability of concluding that assignable variation exists when only random variation is present is: (I) the probability of a Type I error (II) known as the alpha risk (III) highly unlikely (IV) the sum of probabilities in the two tails of the normal distribution
D. I, II, and IV Incorrect signals can be on either side of the distribution.
RFID chips: (I) are used to track goods in distribution (II) are used to track job progress in production (III) are used to provide special instructions to operators (IV) can be used in inventory record keeping A. II and III only B. I and II only C. II, III, and IV D. I, II, and IV E. IV only
D. I, II, and IV RFID chips do not contain special instructions.
Focusing attention on the most important problem areas is referred to as: A. quality circles B. quality assurance C. brainstorming D. Pareto analysis E. cause-and-effect analysis
D. Pareto analysis Pareto analysis directs attention to the most important areas.
A tool that is not used for quality management is ________. A. Flowchart B. Histogram C. Perato Analysis D. Redesign E. Check sheets
D. Redesign Redesigns aren't part of quality management.
Deciding how much to invest in the prevention of defects can be analyzed using ________. A. EVPI B. Net Present Value C. Weighted Factor Analysis D. Return on Quality E. Breakeven Analysis
D. Return on Quality ROQ focuses on the economics of quality efforts.
TQM stands for: A. Taguchie Quality Methods B. Tactical Quality Measurements C. The Quality Matrix D. Total Quality Management E. Total Quantity Measurement
D. Total Quality Management TQM stands for Total Quality Management.
A quality circle is ________. A. responsible for quality B. total quality control C. an inspection stamp found on meat D. a voluntary group of employees E. none of the above
D. a voluntary group of employees Quality circles are composed of volunteers.
he purpose of the Malcolm Baldrige National Quality Award is to _______. A. stimulate efforts to improve quality B. recognize quality achievements of U.S. companies C. publicize successful quality programs D. all of the above E. distribute the grant money available for improved quality
D. all of the above All of these are goals of the Baldrige award.
Which of the following is a principle required for ethical behavior in purchasing? A. loyalty to employer. B. justice to those you deal with. C. faith in your profession. D. all of the above. E. none of the above.
D. all of the above. All of these are ethical principles in purchasing.
A control chart used to monitor the number of defects per unit is the: A. p-chart B. R-chart C. x-bar chart D. c-chart E. Gantt chart
D. c-chart
The quality control improvement tool that resembles a "fishbone" is ________. A. brainstorming B. check sheets C. Pareto analysis D. cause-and-effect diagrams E. fail-safe methods
D. cause-and-effect diagrams These are also known as Ishikawa diagrams.
. Logistics includes all of these except: A. the movement of materials within a production facility B. incoming shipments of goods or materials C. outgoing shipments of goods or materials D. customer selection E. returned goods processing
D. customer selection Logistics involves moving goods.
The purpose of control charts is to:
D. distinguish between random variation and assignable variation in the process Control charts are used to signal assignable variation.
Giving workers responsibility for quality improvements and authority to make changes is known as: A. continuous improvement B. passing the buck C. benchmarking D. employee empowerment E. employee involvement
D. employee empowerment Empowered employees are often very effective in improving quality.
Which of the following is not a goal of process improvement? A. increasing customer satisfaction B. reducing waste C. achieving higher quality D. identifying the cause of a problem E. All are the goals.
D. identifying the cause of a problem Identifying the cause of a problem is an input into the effort to improve the process.
. Which of the following would not usually be a main factor in selecting a vendor? A. location B. price C. quality D. inventory turnover E. vendor services
D. inventory turnover Turnover would only rarely be associated with the vendor that is selected.
Which of the following is not a goal of supply chain management? A. fewer suppliers and long-term relationship B. small lot sizes C. on time deliveries D. lowest possible transportation costs E. delivery often to the place of use
D. lowest possible transportation costs Minimizing transportation costs might lead to an unacceptable tradeoff elsewhere.
Before a dimension of quality can be made operationally useful, it must be restated in some ___________ form. A. qualitative B. manipulative C. certifiable D. measurable E. marketable
D. measurable Dimensions of quality have to be translated into measurable characteristics.
As regards quality risks, which of the following would be least likely to involve outsourcing to less-developed countries? A. rubber processing B. repetitive assembly C. packaging D. pharmaceuticals E. steel manufacturing
D. pharmaceuticals Pharmaceutical firms incur substantial quality risks when they outsource to less-developed countries.
Real time information about product movement on store shelves could benefit from the use of: A. batch processing B. economic order quantities C. statistical process control D. radio frequency identification tags E. infrared remote scanners
D. radio frequency identification tags RFID facilitates real-time data gathering.
The typical difference between "quality circles" and "continuous improvement teams" is ________. A. Quality circles work on product design only B. Continuous improvement teams work on product and process design C. Continuous improvement teams use only engineers while quality circles use just the workers doing the work D. the amount of employee empowerment E. There is no difference-they are just the same
D. the amount of employee empowerment Quality circles often work with processes over which they have little authority.
The optimum level of inspection is where the:
D. total cost of inspection and defectives is minimum At the optimum level these costs are, in total, minimized.
ISO 9000 standards do not have a requirement for ________. A. resource B. remedial C. systems D. training E. management
D. training Training isn't a part of ISO 9000 standards.
Organizations should work to improve process capability so that quality control efforts can become more ________. A. effective B. efficient C. necessary D. UNNECESSARY E. widespread
D. unnecessary
The range chart (R-chart) is most likely to detect a change in: A. proportion B. mean C. number defective D. VARIABILITY E. sample size
D. variability
A given inventory item has a per-year holding cost of $500. One method of shipping this item is three days faster than the other, but it is $2.50 more per unit. Using the slower method would be __________ more expensive overall than using the faster method. A. $1.08 B. $1.16 C. $2.37 D. $2.73 E. $1.61
E. $1.61 Multiply the holding cost by the speed differential, then divide by 365. Compare this to the actual shipping cost difference.
What is the sample proportion of failures (p) for Prof. D?
E. .16 Divide the number of failures by the sample size.
When a process is in control, it results in there being, on average, 16 defects per unit of output. C-chart limits of 8 and 24 would lead to a _______ chance of a Type I error. A. 67% B. 92% C. 33% D. .03% E. 5%
E. 5%
When a process is in control, it results in there being, on average, 16 defects per unit of output. C-chart limits of 8 and 24 would lead to a _______ chance of a Type I error.
E. 5% These would be two-sigma limits
ISO 9000 currently requires _____ of a certified organization. A. Quarterly reporting B. Product diversity C. Annual audits D. A minimum of four supervisory levels E. Continuous improvement
E. Continuous improvement Continuous improvement is emphasized in ISO certification.
Managers have obligations to a wide variety of stakeholders such as shareholders, employees and customers. When considering outsourcing production to offshore suppliers, managers have to weigh __. I) Cost benefits that might make shareholders wealthier II) Quality issues that might make firms less productive and/or products riskier III) The investments already tied up in relationships with existing suppliers A. I B. II C. III D. I and II only E. I, II and III
E. I, II and III All of these are considerations that must be taken into account.
The two types of decisions that are relevant to supply chain management are: A. Short, long term B. Domestic, international C. Location, layout D. In-source, out-source E. Tactical, operational
E. Tactical, operational Decision-making in supply chain management falls into either tactical or operational areas.
Which of the following is an element of TQM? A. continuous improvement B. competitive benchmarking C. employee empowerment D. team approach E. all of the above
E. all of the above All of these are elements of TQM.
Inspection is a(n): A. prevention. B. control. C. monitoring. D. corrective. E. appraisal.
E. appraisal.
Quality control, in contrast to quality assurance, is implemented: A. after production. B. before inspection. C. by self-directed teams. D. by top management. E. during production.
E. during production.
Vendor analysis has the greatest potential for savings for items which have: A. low cost per unit B. low annual cost-volume C. high cost per unit D. high annual usage E. high annual cost-volume
E. high annual cost-volume These represent the bulk of purchasing costs. The function of purchased parts or raw materials would be done by the procuring department
In order for TQM to be successful, it is essential that most of the organization be _________. A. members of quality circles B. under contract C. ISO certified D. trained in error detection techniques E. in agreement with the philosophy and its goals
E. in agreement with the philosophy and its goals TQM won't work without substantial buy-in.
. Which of the following is not a benefit of effective supply chain management? A. lower inventory costs B. higher productivity C. shorter lead times D. greater customer loyalty E. larger number of suppliers
E. larger number of suppliers Supply chain management often results in fewer suppliers.
The purchasing cycle begins with: A. selecting a supplier B. placing an order C. evaluating potential vendors D. conducting a value analysis E. receiving a requisition
E. receiving a requisition The requisition notes what is needed, in what quantity, and when it is needed.
Which of the following is not an application of E-business? A. internet buying and selling B. e-mail C. order and shipment tracking D. electronic data interchange (EDI) E. universal product codes
E. universal product codes Universal product codes are not part of E-business.
Which of the following is not a step in the quality control process?
Eliminate each of the defects as they are identified.
For firms competing in worldwide markets, conducting __________________ is more complex, since what works in one country or region might not work in another.
Environmental analysis
Activity E has an optimistic time of 9 days, a most likely time of 12 days, and a pessimistic time of 15 days. Estimate its expected time and standard deviation.
Expected time = 12; Standard deviation = 1
Which isn't a cost of quality?
Extended Service Contracts
Range charts and p-charts are both used for variable data.
FALSE
Range charts are used mainly with attribute data.
FALSE
Range control charts are used to monitor process central tendency.
FALSE
Run tests give managers an alternative to control charts; they are quicker and cost less.
FALSE
Statistical Process Control is the measurement of rejects in the final product.
FALSE
Statistical process control focuses on the acceptability of process output.
FALSE
The Taguchi Cost Function suggests that the capability ratio can be improved by extending the spread between LCL and UCL.
FALSE
The optimum level of inspection occurs when we catch at least 98.6 percent of the defects.
FALSE
The process capability index (indicated by Cpk) can be used only when the process is centered.
FALSE
The purpose of statistical process control is to ensure that historical output is random.
FALSE
Type I and Type II errors refer to the magnitude of variation from the standard.
FALSE
A control chart is a visual representation of the various states in a process.
FALSE A control is a visual representation of the output of a process.
When problems arise in a total quality managed organization, it is important to assign blame and punish the worker responsible for causing the problem.
FALSE Blame and punishment have little place in a TQM organization.
Continuous improvement attempts to achieve major breakthroughs in product or service quality.
FALSE Continuous improvement attempts to achieve ongoing improvements in product or service quality.
Deming stresses that workers are primarily responsible for poor quality because very often they fail to follow instructions.
FALSE Deming stressed that systems rather than workers were primarily responsible for poor quality.
The greater the capability ratio, the higher the rejects.
FALSE Greater capability reduces rejects.
ISO standards apply only to manufacturing organizations.
FALSE ISO standards can apply to service organizations.
Juran describes quality management as a trilogy that consists of quality planning, control of quality costs, and quality improvement.
FALSE Juran focused on quality planning, quality control, and quality improvement.
Larger samples will require wider x-bar control limits because there is more data.
FALSE Large samples will lead to narrower control limits.
The term "quality at the source" refers primarily to the practice of requiring each of our vendors to provide quality parts and materials.
FALSE Quality at the source refers to each worker being responsible for the quality of his or her work.
Quality at the source means returning all defects to the source - our vendors.
FALSE Quality at the source refers to making each worker responsible for the quality of his or her own work.
Quality certification refers to a process of 100 percent inspection to catch all defective products before they leave the company; this allows every item to be certified defect free.
FALSE Quality certification refers to the process of certifying that quality processes are in place.
So long as quality input resources are used to make a product, we can expect quality output from the process.
FALSE Quality inputs help with quality but they do not guarantee it.
Broadly defined, quality refers to the ability of a product or service to occasionally meet or exceed customer expectations.
FALSE Quality refers to consistently meeting or exceeding customer expectations.
Statistical Process Control is the measurement of rejects in the final product.
FALSE SPC is the evaluation of the process.
A major obstacle to implementing TQM can be an emphasis on long-term financial results.
FALSE Short-term financial focus can be an obstacle to implementing TQM.
Suppliers are not included in quality assurance and quality improvement efforts in TQM; they should worry about their own problems.
FALSE Suppliers are critical in TQM.
Total quality management is a collection of techniques, such as quality control charts, ISO 9000, and quality function deployment.
FALSE TQM is a philosophy.
The benchmark organization must be chosen from the same industry in order for its methods to be applicable.
FALSE The benchmarked organization should be best in class, regardless of industry.
The causes of variation in any process can be identified through the general categories of people, procedures, education and age.
FALSE The general categories are people, procedures and processes.
An x-bar control chart can only be valid if the underlying population it measures is a normal distribution.
FALSE The sample average typically is normally distributed regardless of the underlying distribution of the process.
Tolerances represent the control limits we use on the charts.
FALSE Tolerances are specification limits, not control limits.
Zero defects requires 100% inspection of the final product.
FALSE Zero defects can be achieved through quality at the source.
A process that exhibits random variability would be judged to be out of control.
FALSE All processes exhibit random variability.
In e-commerce, the front-end design is significantly more important than the back-end design.
FALSE Back-end design is often more consequential in e-commerce.
Forming strategic partnerships is beneficial for two or more business organizations that have the same products or services.
FALSE Complementarity is key to successful strategic partnering.
Control limits are based on multiples of the process standard deviation.
FALSE Control limits are based on multiples of the standard deviation of the sample statistic.
Regardless of superior quality, consumers won't pay premium prices.
FALSE Customer will often pay premium process for superior quality.
Product design choices are usually the result of inputs from accounting and human resources.
FALSE Design choices usually result from marketing and engineering inputs.
If the majority of service customers are satisfied, it is likely that all service customers will be satisfied.
FALSE Different customers tend to have different expectations
The seven dimensions of quality are important for products but are not applicable in service organizations.
FALSE Dimensions of quality are often similar across products and services
Disintermediation is the refusal of one party to use mediators for price negotiation.
FALSE Disintermediation involves reducing one or more steps in a supply chain by cutting out intermediaries.
E-commerce involves business-to-business (B2B) interaction only.
FALSE E-commerce can also involve business-to-consumer (B2C) interactions.
Supplier certification is the first step required in a supplier audit program.
FALSE Even uncertified suppliers are potential targets in a supplier audit program.
Event management is the advanced planning required for major performances such as concerts or conferences.
FALSE Event management involves detecting and responding to unplanned events.
In supply chain organizations, functions must operate independently of each other.
FALSE Functions should be integrated.
. Gate keeping manages the cost of shipping returned goods.
FALSE Gate keeping manages the cost of dealing with inappropriately returned goods.
Global supply chains make purchasing easier because of more options.
FALSE Global purchasing is more complex because of the variety of issues and risks that must be considered
The larger the process variation, the tighter the specifications should be.
FALSE Greater variation would lead to wider specifications.
Non-random variation is likely whenever all observations are between the LCL and UCL.
FALSE If all observations are between the LCL and UCL, then the process would be considered in control
Even if the process is not centered, the process capability index (indicated by Cpk) is very useful.
FALSE If the process is not centered, Cpk is not useful.
The degree to which a product or service satisfies its intended purpose is determined by design, conformance to design, cost, and reputation of the producer
FALSE Neither cost nor reputation influences this.
The optimization of the supply chain uses a mathematical model to determine the optimal number of business organizations to be included in the chain.
FALSE Optimizing a supply chain through mathematical models is typically not feasible.
Outsourcing logistics gives a company less flexibility because it forces them to focus more on core businesses.
FALSE Outsourcing logistics can lead to more flexibility.
Poor quality has a positive effect on productivity because it usually takes longer to produce a good part.
FALSE Poor quality has a negative effect on productivity.
High Quality and low prices are both considered to be dimensions of quality.
FALSE Price is not considered a dimension of quality.
The importance of purchasing relates only to the cost of parts and materials purchased, which is often 60% or more of the cost of finished goods.
FALSE Purchasing is important because other costs resulting from the purchase of parts and materials are highly consequential.
In purchasing, one's only ethical obligation is to one's suppliers.
FALSE Purchasing personnel have ethical obligations with regard to a variety of stakeholders, primarily the organizations that employ them.
Quality of design refers to the degree to which goods and services achieve the intent of the designers.
FALSE Quality of design refers directly to the intent of the designers
One disadvantage to RFID is that they require a 'line of sight' for reading.
FALSE RFID doesn't need a 'line of sight' reading.
A 30% reduction in product and service variety won't really affect the efficiency of a supply chain.
FALSE Reducing variety is a prominent means of increasing efficiency.
Starting with the final customer and moving backward through the supply chain, batch sizes and the level of safety stock tend to decrease.
FALSE Safety stock might increase, but batch sizes won't.
Statistical process control focuses on the acceptability of process output.
FALSE Statistical process control focuses on the variability of processes.
Managing supply chain visibility involves making sure that potential supply chain partners are aware of your organization's needs.
FALSE Supply chain visibility has to do with making sure that current trading partners have access to needed data in real time.
The best way to assure quality is to use extensive inspection and control charts.
FALSE The best way to assure quality is to make sure processes are highly capable.
The number of defective parts in a sample is an example of variable data because it will "vary" from one sample to another.
FALSE The number of defective parts in a sample is an example of attribute data.
The primary purpose of statistical process control is to detect a defective product before it is shipped to a customer.
FALSE The primary purpose of SPC is to detect nonrandomness.
Traffic management refers to truck movement within our parking areas.
FALSE Traffic management is the management of the shipment of incoming and outgoing goods.
Using third-party logistics involves using your organization's logistics function to ship to customers that aren't officially part of the supply chain.
FALSE Using third-party logistics involves outsourcing the logistics function.
. Inventory velocity refers to the average speed (in miles/hour) of material handling equipment in a warehouse.
FALSE Velocity refers to the rate at which goods pass through a supply chain.
Vendor analysis examines the function of purchased parts and materials with a view towards improvement or cost reduction.
FALSE Vendor analysis evaluates sources of supply with respect to price, quality, reputation and service.
Price is the primary determining factor in choosing a vendor since most products are essentially the same.
FALSE With vendor analysis, price is just one of many considerations.
Which of the following is true?
Functional strategies are shaped by corporate strategy.
Which of the following statements about CAD is NOT true?
It is used successfully by all manufacturing companies.
"Must have", "expected" and "excitement" characteristics are categories in the ____ model.
Kano
A Quality Analyst wants to construct a control chart for determining whether three machines, all producing the same product, are under control with regard to a particular quality variable. Accordingly, he sampled four units of output from each machine, with the following results. For upper and lower control limits, which machine(s), if any, appear(s) to have an out-of-control process mean? Machine Measurements #1 17 15 15 17 #2 16 25 18 25 #3 23 24 23 22
Machine 1
Years ago in the overnight delivery business, providing package tracking capability gave some firms a competitive advantage. Now, all firms must offer this capability simply to be in this line of business. This is an example of ______________ becoming ____________ over time.
Order winners; order qualifiers
A sequence of activities that leads from the starting node to the finishing node is called a _______
Path
Competitiveness doesn't include:
Profitability
"Assignable variation" is variation due to a specific cause, such as tool wear.
TRUE
"Process capability" compares "process variability" to the "tolerances."
TRUE
A p-chart is used to monitor the fraction of defectives in the output of a process.
TRUE
A run test checks a sequence of observations for randomness.
TRUE
One criticism of total quality management is that it may produce blind pursuit of quality to the neglect of other priority considerations.
TRUE Considerations other than quality sometimes can be neglected.
When considering service quality, convenience often is a major factor.
TRUE Convenience is often a major dimension of service quality.
When a process is not centered, its capability is measured in a slightly different way. The symbol for this case is Cpk.
TRUE Cpk is used when the process is not centered.
Crosby's concept of "quality is free" means that it is less expensive to do it right initially than to do it over.
TRUE Crosby believes quality pays for itself.
According to Deming, it is the systems that management puts into place that are primarily responsible for poor quality, not employees.
TRUE Deming focused on systems as determinants of quality.
There is a positive link between quality and productivity.
TRUE Higher quality leads to higher productivity.
Firms that wish to do business with the European Community can benefit from having a quality management system that meets ISO 9000 standards.
TRUE ISO 9000 certification is critical for doing business in Europe.
ISO standards aid in transferring technology to developing countries.
TRUE ISO facilitates the transfer of quality expertise to developing countries.
The PDSA cycle forms the conceptual basis for continuous improvement.
TRUE It reflects some of the primary ideas behind continuous improvement.
Juran describes quality management as a trilogy that consists of quality planning, quality control, and quality improvement.
TRUE Juran focused on planning, control and improvement.
Process mapping is part of process improvement.
TRUE Mapping the process is a first step in process improvement.
Run tests are useful in helping to identify nonrandom variations in a process.
TRUE Runs tests are useful to identify non-randomness in patterns.
TQM expands the traditional view of quality beyond looking only at the quality of the final product or service to looking at the quality of every aspect of the process.
TRUE TQM focuses on what leads to the outcome rather than the outcome itself.
TQM is not just a collection of techniques. It is rather a whole new attitude toward quality.
TRUE TQM is a philosophy.
Total quality management attempts to involve everyone in an organization in the effort to achieve quality.
TRUE TQM is an organization-wide initiative.
The customer is the focal point and customer satisfaction is the driving force in quality management.
TRUE The customer and his or her satisfaction are central to quality management.
Serviceability, Conformance and Reliability are dimensions of product quality.
TRUE These are common dimensions of product quality.
Three key philosophies in TQM are continuous improvement, involvement of everyone in the organization, and customer satisfaction.
TRUE These are the three key philosophies.
The sampling distribution can be assumed to be approximately normal even when the underlying process distribution is not normally distributed.
TRUE This is especially true as the sample size grows.
The optimum level of inspection minimizes the sum of inspection costs and the cost of passing defectives.
TRUE This represents the optimum balance between inspection and failure costs.
Variation in a sample statistic collected from a process may be either random variation or assignable variation - or both.
TRUE Total variation can consist of both random and assignable variation.
A c-chart is used to monitor the number of defects per unit for process output.
TRUE A c-chart monitors the number of defects per unit for process output.
The output of a process may not conform to specifications even though the process may be statistically "in control."
TRUE A process can be free of non-random variation and still not meet specifications.
The need for supply chain management increases as globalization increases.
TRUE As globalization increases supply chain management is becoming more important.
Decentralized purchasing can usually offer quicker response than centralized purchasing.
TRUE Centralized purchasing can be more efficient, but decentralized purchasing can offer faster response.
Strategic partnering is encouraged when two or more business organizations have complementary products or services that would benefit the others.
TRUE Complementarity is key to successful strategic partnering
Quality control is assuring that processes are performing in an acceptable manner.
TRUE Control is used to monitor the performance of processes.
When a process is not centered, its capability is measured in a slightly different way. The symbol for this case is Cpk.
TRUE Cpk is used when the process is not centered.
Customer expectations tend to change over time affecting their perception of service quality.
TRUE Customer expectations do change over time.
. Disintermediation refers to the phenomenon that the traditional retailer or service provider is reduced or eliminated in a supply chain.
TRUE Disintermediation involves reducing one or more steps in a supply chain by cutting out intermediaries.
. E-commerce refers to the use of electronic technology to facilitate business transactions.
TRUE E-commerce is a growing trend in supply chain management.
Every business organization is part of at least one supply chain.
TRUE Either the business organization is a complete supply chain or it is a player in a supply chain.
. Vendor analysis is the process that evaluates the source of supply in terms of price, quality, reputation, and service.
TRUE Evaluating sources of terms of price, quality, reputation, and service is vendor analysis.
A company's supply chain involves the flow of materials and information from suppliers, through production, to the end users.
TRUE Flow of materials and information are the central focus of supply chain management.
Information technology is the key to success of global supply chains.
TRUE Global supply chains are made possible by the use of information technology.
Some firms have structured their procurement function to include both centralized and decentralized purchasing.
TRUE Good purchasing can involve both centralized and decentralized elements.
Business organizations achieving good quality benefit in a variety of ways, including a positive reputation for quality, increased customer loyalty, and lower production costs.
TRUE Good quality conveys a wide variety of benefits.
Quality of conformance refers to the degree to which goods and services conform to the intent of the designers as documented in the specifications.
TRUE High conformance to designer intent leads to high quality of conformance.
Recent changes to ISO guidelines stress continuous improvement regardless of how good you currently are.
TRUE ISO guidelines stress continuous improvement.
Patterns of data on a control chart suggest that the process may have non-random variation.
TRUE Ideally, the data on a control chart will have no pattern.
To prevent temporary storage in a warehouse, cross docking can be used.
TRUE In cross-docking, inbound goods are moved directly onto outbound trucks.
Scheduling and maintaining equipment are operational decisions
TRUE Maintenance would be a form of corrective or preventative action to ensure the continued availability of capacity.
. Most people working for a business organization are somehow involved with the supply chain of that business.
TRUE Most people working for a business organization are involved in the flow of materials, money or information.
User instructions and follow-up services after delivery are important elements of overall product or service quality.
TRUE Overall product or service quality includes user instructions and follow-up services
Medical malpractice claims are an example of how poor quality can affect an organization through liability.
TRUE Poor quality can have serious financial effects.
The service function of purchasing interfaces with many area including legal, accounting, and engineering functions.
TRUE Purchasing interfaces with a wide variety of areas.
Design and purchasing people should work closely because changes in design, specifications, or materials can impact future purchase requirements.
TRUE Purchasing interfaces with a wide variety of functional areas.
RFID eliminates the need for counting and bar-code scanning.
TRUE RFID does away with the need for counting and bar-code scanning.
Variations create uncertainty, thereby causing inefficiencies in a supply chain.
TRUE Reductions in disruptions helps improve supply chain efficiencies.
Returned goods are part of reverse logistics
TRUE Reverse logistics involves managing the flow of goods back up the supply chain.
Run tests are useful in helping to identify nonrandom variations in a process.
TRUE Runs tests are useful to identify non-randomness in patterns.
Bullwhip effect refers to a phenomenon that demand variations that exist at the customer end of the supply chain are magnified as orders are generated back through the supply chain.
TRUE The effect of demand variations grows as it works its way back through the supply chain.
A lower control limit must by definition be a value less than an upper control limit.
TRUE The lower limit must be smaller than the upper limit.
Cost of inspectors, testing, test equipment, and labs are examples of appraisal costs.
TRUE These are appraisal costs
The degree to which a product or service satisfies its intended purpose is determined by service after delivery, ease of use, design, and conformance to design
TRUE These are determinants of quality.
. Convenience, Reliability and Assurance are dimensions of service quality.
TRUE These are dimensions of service quality.
High-cost, low-volume items often require careful inspection since we make them so infrequently.
TRUE These are good candidates for inspection.
The importance of purchasing is the cost of goods purchased, the quality of goods and services, and the timing of deliveries of goods or services
TRUE These costs resulting from the purchase of parts and materials are highly consequential
Variation in a sample statistic collected from a process may be either random variation or assignable variation - or both.
TRUE Total variation can consist of both random and assignable variation.
. Reducing the variations in our product or service is an important key to perceived quality.
TRUE Variability reduction is a key means by which quality can be improved.
The primary difference between internal failures and external failures is time and place of discovery of the failure.
TRUE When the failure is discovered typically determines whether it is an internal or an external failure.
Below are the data for a Time-Cost CPM Scheduling model analysis. The time is in days and the costs include both direct and indirect costs. Activity Immediate Predecessor Normal Time Crash Time Normal Cost Crash Cost A None 3 2 $200 $400 B A 4 3 $300 $600 C A 1 1 $200 $200 D B and C 3 2 $500 $550 E D 2 1 $500 $900 What are the total time of this project and total normal cost?
Total time is 12 days, total cost is $1700 The Critical path is ABDE, a total of 12 days. Normal cost is $200 + $300 + $200 + $500 + 500 = $1,700. This is the sum of the "normal cost" column. (Even though activity C is not on the critical path, it still needs to be done & paid for.)
Which of these items would be most likely to be made with a fixed position layout?
a boeing 777 jet aircraft
A group of machines including supervisory computer control, automatic material handling, and possibly robots is called:
a flexible manufacturing system
Which phrase most closely describes flexible manufacturing systems?
a more fully automated version of cellular manufacuring
Efficiency is defined as the ratio of:
actual output to effective capacity
Production units have an optimal rate of output where
average unit costs are minimum
Using the information given in the following table identify the critical path.
b-e-f-g
Which of the following is not a strategy to manage service capacity?
backordering
The Chair of the Operations Management Department at Quality University wants to construct a p-chart for determining whether the four faculty teaching the basic P/OM course are under control with regard to the number of students who fail the course. Accordingly, he sampled 100 final grades from last year for each instructor, with the following results. Using .95 control limits, (5% risk of Type I error), which instructor(s), if any, should he conclude is (are) out of control? Instructor Number of Failures Prof. A 13 Prof. B 0 Prof. C 11 Prof. D 16
both Prof. B and Prof. D
The grouping of equipment by the operations needed to perform similar work for part families is:
cellular manufacturing layout
The process of comparing outputs to previously established standards to determine if corrective action is needed is called:
controlling
The research and development activity which starts after positive research results are available and attempts to turn these results into useful commercial applications is:
development
At which point does crashing of a project cease?
when the cost to crash equals or exceeds the benefit of crashing
Which of the following is not a factor that affects productivity?
wireless cellular phones
