MQM 227 Exam 1

13. For which of the following should we use a p-chart to monitor process quality? A. Defective electrical switches B. Errors in the length of a pencil C. Weight errors in cans of soup D. Temperature of entrees in a restaurant E. Letter grades on a final examination

A. Defective electrical switches

12. A flowchart as part of a Six-Sigma quality improvement process might be found in which DMAIC category? A. Define B. Measure C. Analyze D. Improve E. Control

A. Define

10. Which of the following queue disciplines is discussed in the textbook? A. Emergencies first B. Garner-Whitten formula C. Newest customer first D. Patient customers last E. None of these

A. Emergencies first

12. Which of the following is an analytical tool used in 'Measure' phase of DMAIC Six-Sigma quality improvement programs? A. Leadership B. Pareto charts C. Management by fact D. Continuous improvement E. Kaizen

B. Pareto charts

10. For an infinite queuing situation, if the arrival rate for loading trucks is 5 trucks per hour, what is the mean time between arrivals? A. 5 hours B. 2.5 hours C. 0.2 hour D. 0.1 hour E. None of these

C. 0.2 hour Mean time between arrivals = 1/Arrival rate = 1/5 = 0.2 hour.

11. A bottleneck occurs when a stage in a production process is starving. T/F

False A bottleneck is the activity in a process that limits the overall capacity of the process.

11. Make-to-order production processes are well suited for high-volume production of a standardized product. T/F

False A highly efficient make-to-stock process that produces standard products that can be delivered quickly.

5. If the best operating level of a piece of equipment is at a rate of 400 units per hour and the actual output during an hour is 300 units, which of the following is the capacity utilization rate? A. 0.75 B. 1.00 C. 1.33 D. 2.33 E. 300

A. 0.75 300 units of output divided by 400 units best operating level = 0.75.

2. The total output from a production system in one day is 900 units and the total labor necessary to produce the 900 units is 900 hours. Using the appropriate productivity measure, what is the resulting productivity ratio? A. 1.000 B. 1.428 C. 0.700 D. 0.411 E. None of these

A. 1.000 900 units divided by 900 hours equals 1.0 units per hour.

13. Quality control charts usually have a central line and upper and lower control limit lines. Which of the following is a reason that the process being monitored with the chart should be investigated? A. A single plot falls above or below the control limits. B. Behavior is normal. C. A large number of plots are on or near the central line. D. There is no real trend in any direction. E. There is a change in raw materials or operators.

A. A single plot falls above or below the control limits.

11. Which of the following best describes the term "cycle time"? A. Average time between completions of successive units B. Ratio of the time a resource is activated over its use C. Can be no more that 60 minutes D. The same as utilization E. The labor content of the item being measured

A. Average time between completions of successive units

12. Which of the following are basic assumptions that justify an analysis of the costs of quality? A. Failures are caused. B. Prevention is more expensive. C. Performance can be learned. D. Rules of thumb don't always work. E. Appraisal costs are less than prevention costs.

A. Failures are caused. (1) failures are caused, (2) prevention is cheaper, and (3) performance can be measured.

5. Capacity planning that involves hiring, layoffs, some new tooling, minor equipment purchases, and subcontracting is considered as which one of the following planning horizons? A. Intermediate range B. Long range C. Short range D. Current E. Upcoming

A. Intermediate range

4. A listing of immediate predecessor activities is important information in a CPM analysis for which of the following reasons? A. It specifies the relationships in the CPM network of activities. B. It provides useful timing information. C. It includes cost information. D. It is the probability information required in the final step of CPM. E. None of these

A. It specifies the relationships in the CPM network of activities.

2. Which of the following is a partial measure of productivity? A. Output/Materials B. Output/(Labor + Capital + Energy) C. Output/All resources used D. Output/Inputs E. All of these

A. Output/Materials

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

A. Pure project The pure project has the advantages that lines of communication are shortened; decisions are made quickly; and team pride, motivation, and commitment are high.

11. A process flowchart uses which of the following symbols to represent tasks or operations in a flow diagram? A. Rectangle B. Arrow C. Inverted triangle D. Diamond E. A dashed line

A. Rectangle

3. Which of the following is a characteristic of concurrent engineering? A. Separate development teams working at once B. Integrated computer-assisted design C. Using automated guided vehicles D. The design-build-test cycle E. Having an excellent forecasting system

A. Separate development teams working at once Detail design of the components is a highly parallel process, often referred to as concurrent engineering, with many separate development teams working at once.

9. Which of the following is a characteristic that can be used to guide the design of service systems? A. Services cannot be inventoried. B. Services are all similar. C. Quality work means quality service. D. Services businesses are inherently entrepreneurial. E. Even service businesses have internal services.

A. Services cannot be inventoried.

10. Getting an autograph from a famous person might involve standing in which type of queuing line structure? A. Single channel, single phase B. Single channel, multiphase C. Multichannel, single phase D. Multichannel, multiphase E. None of these

A. Single channel, single phase

9. There are many applications of poka-yokes in service organizations. Which of the following is one of the three-T's used to classify poka-yokes? A. Task B. Time C. Teamwork D. Trust E. Talent

A. Task

2. When developing an operations and supply chain strategy, which of the following is an important product-specific criterion to consider? A. Technical liaison B. Learning curve C. Competitor's product performance D. Production lot size E. Total quality management

A. Technical liaison

7. A difference between project and continuous flow categories of process flow structures is which of the following? A. The size and bulk of the product B. Discrete parts moving from workstation to workstation C. Degree of equipment specialization D. Being a "virtual factory" E. Profit per unit

A. The size and bulk of the product

7. Which of the following is not a basic type of process structure? A.Product-process matrix B. Work center C. Manufacturing cell D. Assembly line E. Continuous process

A.Product-process matrix

5. If the best operating level of a piece of equipment is at a rate of 400 units per hour and the actual output during an hour is 300 units, which of the following is the capacity cushion? A. 25 percent B. 100 units per hour C. 75 percent D. 125 percent E. 133 percent

B. 100 units per hour A capacity cushion is an amount of capacity in excess of expected demand.

4. What is a work breakdown structure? A. A list of the activities making up the higher levels of the project B. A definition of the hierarchy of project tasks, subtasks, and work packages C. A depiction of the activities making up a project D. A Gantt chart E. A structure that is incompatible with the critical path method

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

12. Applicants for the Baldrige Award for total quality management must submit an application of up to 50 pages that details the processes and results of their activities under seven major categories. Which of the following is one of those categories? A. DMAIC B. Analysis and remember management C. Standardization D. Control E. Inspection protocols

B. Analysis and remember management

11. To reduce process throughput time, you might try which of the following actions? A. Outsource activities. B. Change the sequence of activities. C. Improve teamwork. D. Reduce management interference. E. Introduce incentive pay

B. Change the sequence of activities.

9. Which of the following refers to the physical presence of the customer in a service system? A. Creation of the service B. Customer contact C. Intermittent production D. Continuous production E. None of these

B. Customer contact

12. Which of the following is a dimension of design quality? A. Price B. Features C. Color D. Weight E. Quality at the source

B. Features The dimensions of design quality are performance, features, reliability/durability, serviceability, aesthetics, and perceived quality.

3. Advocates of financial modeling of product design projects argue that: A. Sufficiently rigorous financial analysis can accurately forecast the product's profit potential. B. Financial analysis brings discipline and control to the product development process. C. Financial analysis nurtures innovation and creativity. D. Financial analysis focuses on measurable quantities only. E. Financial analysis is as solid as the assumptions that go into the model.

B. Financial analysis brings discipline and control to the product development process.

11. Which of the following terms describes the time a unit spends actually being worked on together with the time spent waiting in a queue? A. Cycle time B. Flow time C. Run time D. Setup time E. Efficiency

B. Flow time

5. Which of the following is not a step used in determining production capacity requirements? A. Forecasting to predict product sales B. Forecasting raw material usage C. Projecting availability of labor D. Calculating equipment and labor needs E. Projecting equipment availability

B. Forecasting raw material usage 1. Use forecasting techniques to predict sales for individual products within each product line. 2. Calculate equipment and labor requirements to meet product line forecasts. 3. Project labor and equipment availabilities over the planning horizon

9. Which of the following is an alternative possible service encounter included in the service-system design matrix? A. Face-to-face distance B. Internet C. Questionnaire response D. Automated teller (ATM) E. Response card encounter

B. Internet

3. A reason that firms must develop more new products than ever is which of the following? A. To amortize heavy investments in development labs B. Product life cycles are shorter C. The increased difficulty of defending patents and trade names D. They are replacing old customers with new ones E. Commitments to joint venture partners

B. Product life cycles are shorter

5. The way to build in greater flexibility in your workers is to do which of the following? A. Pay higher wages to motivate a willingness to do a variety to tasks. B. Provide a broader range of training. C. Provide a wide variety of technology to augment workers skills. D. Institute a "pay for skills" program. E. Use part-time employees with specialized skills as needed.

B. Provide a broader range of training. Flexible workers have multiple skills and the ability to switch easily from one kind of task to another. They require broader training than specialized workers.

3. What dimension of competitiveness does time-to-market performance in product design and process selection affect? A. None of these B. Responsiveness to customer needs C. Aesthetics of design D. Engineering hours per project E. The cost of ongoing service

B. Responsiveness to customer needs

9. One of the three approaches to delivering on-site service is _____ A. Airline approach B. Self-service approach C. Fast food approach D. Do-it-yourself approach E. Internet approach

B. Self-service approach

3. The purpose of value analysis/value engineering (VA/VE) is to: A. Facilitate better cooperation between business functions B. Simplify products and processes C. Relate the customer's needs to technical specifications D. Improve the value that customers find in existing products E. Meet budgets and improve the results of financial models

B. Simplify products and processes

2. When a company seeks to match the benefits of a successful position while maintaining its existing position in offering customers a variety of differing services, what is this process called? A. Operations capability analysis B. Straddling C. Order qualifying D. Order winning E. Inter-functional analysis

B. Straddling

7. You are hired as a consultant to decide if your client should purchase a new, highly specialized piece of equipment. The product to be produced by this equipment is forecast to have a total worldwide demand of 15,000 units over the entire product life. The initial investment to acquire and install the equipment is $256,000. The variable cost to produce each unit will be $15, and the selling price for the finished product will be $30. Which of the following best describes the situation the firm is facing? A. The company will recover its initial investment. B. The company's total margin will be less than its investment. C. It is a good investment. D. The break-even is lower than the 15,000 units that are expected to sell. E. All of these

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

10. Which of the following is an example of a finite population in a queuing system? A. People waiting to place their order at a fast-food restaurant B. The departmental faculty in line at the copier C. People waiting in line at an ATM D.Patients seeking help in a hospital emergency room E. Taxpayers calling for assistance from the IRS

B. The departmental faculty in line at the copier

13. You have just used the capability index (Cpk) formulas to compute the two values "min [2, 2.5]." Which of the following is the proper interpretation of these numbers? A. The true capability index value is 2.5. B. The mean of the production process has shifted to the left of the design limits. C. The mean of the production process has shifted to the right of the design limits. D. The mean has not shifted at all. E .The true capability index value is between 2 and 2.5.

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

11. According to Little's law, which of the following can be used to estimate inventory? A. Process time/Cycle time B. Throughput rate × Flow time C. Process velocity/Flow time D. Set up time/Throughput rate E. Value-added time/Process velocity

B. Throughput rate × Flow time

13. For which of the following should we use an X-bar chart based on sample means to monitor process quality? A. Grades in a freshman "pass/fail" course B. Tire pressures in an auto assembly plant C. Vehicles passing emissions inspection D. Computer software errors E .Number of units with missing operations

B. Tire pressures in an auto assembly plant

7. Which of the following basic types of process structures is one in which similar equipment or functions are grouped together? A. Project B. Work center C. Manufacturing cell D. Assembly line E. Continuous process

B. Work center

4. Some of the advantages of a functional project where the project is housed in a functional division include which of the following? A. The project manager has full authority over the project. B. Team pride, motivation, and commitment are high. C. A team member can work on several projects. D. Needs of the client are secondary. E. None of these

C. A team member can work on several projects

1. One reason for studying operations and supply chain management (OSCM) is which of the following? A. OSCM is essential for understanding organizational behavior. B. Most business graduates do OSCM work regardless of their job title. C. All managers should understand the basic principles that guide the design of transformation processes. D. OSCM is a required course in all business degree programs. F. OSCM is the most rigorous business discipline.

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

12. The philosophical leaders of the quality movement, Philip Crosby, W. Edwards Deming, and Joseph M. Juran, had the same general message about what it took to achieve outstanding quality. Which of the following was part of that message? A. Fourteen steps for quality management B. Quality is free C. Customer focus D. Zero defects E. Six Sigma

C. Customer focus

3. Similarity of projects allows for a streamlined and highly structured development process in which variant of the generic product development process? A. Technology-push products B. Process-intensive products C. Customized products D. Complex systems E. Quick-build products

C. Customized products

1. Which of the following are defined as core goods? A.Chemicals B. Airlines C. Data storage systems F. Hotels E. None of these

C. Data storage systems

12. Which of the following is the cost of quality classification for costs such as defects that pass through the system (e.g., customer warranty replacements, loss of customer or goodwill, handling complaints, and product repair)? A. Appraisal costs B. Prevention costs C. External failure costs D. Customer return cost E. Workmanship costs

C. External failure costs

3. Economic analysis of product development projects is useful in which of the following circumstances? A. Demand estimation B. Factory location C. Go/no-go milestones D. Distribution decisions E. Pricing

C. Go/no-go milestones Economic analysis is useful in at least two different circumstances: 1. Go/no-go milestones. 2. Operational design and development decisions.

4. You have just been assigned to oversee a series of projects. Functional areas will loan you personnel for each project, and separate project managers will be responsible for separate projects. These project managers will report to you. Which project management structure is being used? A. Pure project B. Task force C. Matrix project D. Functional project E. PERT

C. Matrix project The matrix form projects borrow resources from functional areas.

10. Buying a ticket for a college football game where there are multiple windows at which to buy the ticket features which type of queuing system line structure? A. Single channel, single phase B. Single channel, multiphase C. Multichannel, single phase D. Multichannel, multiphase E. None of these

C. Multichannel, single phase

10. Standing in line to buy a ticket for a movie where there are multiple windows at which to buy tickets is which type of queuing system line structure? A. Single channel, single phase B. Single channel, multiphase C. Multichannel, single phase D. Multichannel, multiphase E. None of these

C. Multichannel, single phase

9. Which of the following is considered a high-contact service operation? A. On-line brokerage house B. Internet sales for a department store C. Physician practice D. Telephone life insurance sales and service E. Automobile repair

C. Physician practice

12. The dimension of design quality that concerns the consistency of performance over time or the probability of failing is which of the following? A. Response B. Serviceability C. Reliability D. Reputation E. Perceived quality

C. Reliability

5. Capacity planning involving consideration of production scheduling and inventory position is characterized by which one of the following time durations? A. Intermediate range B. Long range C. Short range D. Current E. Upcoming

C. Short range

11. Which of the following production process terms best describes the situation when activities in a stage of production must stop because there is no work? A. Blocking B. Buffering C. Starving D. Buffer E. Setup time

C. Starving

13. For which of the following should we use an R-chart to monitor process quality? A. Weighing trucks at a highway inspection station to determine if they are overloaded B. Deciding whether an airliner has sufficient fuel for its trip C. Student grades measured from 1 to 100 D. Determining whether vehicles from a motor pool will run E. Determining the accuracy of a forecast of "snow"

C. Student grades measured from 1 to 100

13. You have just used the capability index (Cpk) formulas to compute the two values "min [1.5, 1]." Which of the following is the interpretation of these numbers? A. The true capability index value is 1. B. The mean of the production process has shifted to the left of the design limits. C. The mean of the production process has shifted to the right of the design limits. D. The mean has not shifted at all. E .The true capability index value is between 1.5 and 1.

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

4. A project can be subdivided into which of the following? A. Job orders B. Sub-jobs C. Work packages D. Sub-paths E. Events and decisions

C. Work packages A work package is a group of activities combined to be assignable to a single organizational unit. The other elements named are not commonly used in project management.

7. Which of the following basic types of process structures is one in which equipment or work processes are arranged according to the progressive steps by which the product is made? A. Project B. Work center C. Manufacturing cell D. Assembly line E. Continuous process

D. Assembly line

5. Compared with a service operation, a manufacturing operation's capacity is which of the following? A. More dependent on time and location B. Subject to more volatile demand fluctuations C. Utilization more directly impacts quality D. Demand can be smoothed by inventory policies E. More capable of reacting to demand fluctuations

D. Demand can be smoothed by inventory policies

11. A process flowchart uses which of the following symbols to represent a decision point in a flow diagram? A. Rectangle B. Arrow C. Inverted triangle D. Diamond E. A dashed line

D. Diamond

1. Which of the following is not a measure of operations and supply chain management efficiency used by Wall Street? A. Inventory turnover B. Revenue per employee C. Receivable turnover D. Earnings per share E. Asset turnover

D. Earnings per share

7. Which of the following is not considered a major work flow structure? A. Work center B. Project C. Assembly line D. Fabrication F. Continuous flow

D. Fabrication

9. In the service-system design matrix, an Internet and on-site technology service encounter is expected to have which of the following? A. High sales opportunity B. High degree of customer/server contact C. Low production efficiency D. High production efficiency E. None of these

D. High production efficiency

12. An opportunity flow diagram as part of a Six-Sigma quality improvement process might be found in which DMAIC category? A. Define B. Measure C. Analyze D. Improve E. Control

D. Improve

12. Which of the following is the cost of quality classification for costs such as scrap, rework, or repair? A. Appraisal costs B. Prevention costs C. External failure costs D. Internal failure costs E. Rework and wastage

D. Internal failure costs

4. An advantage of a pure project where self-contained teams work full time on a project is which of the following? A. Team members can work on several projects. B. Functional area is a "home" after the project is completed. C. There are duplicated resources. D. Lines of communication are shortened. E. Overall organizational policies and goals can be ignored.

D. Lines of communication are shortened.

9. In the service-system design matrix, a mail contact service encounter is expected to have which of the following? A. High sales opportunity B. High degree of customer/server contact C. High production efficiency D. Low sales opportunity E. None of these

D. Low sales opportunity

2. Which of the following is not a major strategic operational competitive dimension that forms a company's competitive position? A. Cost or price B. Delivery speed C. Delivery reliability D. Management acumen E. Coping with changes in demand

D. Management acumen

2. Which of the following is a total measure of productivity? A. Output/Materials B. Output/(Labor + Capital + Energy) C. Output/Labor D. Output/Inputs E. All of these

D. Output/Inputs

2. If all you knew about a production system was that total daily output was 400 units and the total labor necessary to produce the 400 units was 350 hours, and the total materials used were 425 units, what kind of productivity measure could you use to compute productivity? A. Partial measure B. Multifactor measure C. Total measure D. Partial measure and Multifactor measure E. Multifactor measure and Total measure

D. Partial measure and Multifactor measure

3. Consumer electronics is an example of a product developed in which variant of the generic product development process? A. Process-intensive products B. Technology-push products C. Customized products D. Platform products E. Quick-build products

D. Platform products

12. The Malcolm Baldrige Award selection process helps improve quality and productivity by which of the following means? A. Stimulating foreign-based suppliers of American companies to improve quality B. Reporting quality levels among American firms C. Identifying American firms with the most difficult quality problems D. Providing feedback to applicants by the examiners E. Helping Baldrige award winners increase their sales

D. Providing feedback to applicants by the examiners

1. Which of the following is not a way that operations and supply processes are categorized? A.Planning B. Return C. Delivery D. Selecting E. Making

D. Selecting

12. Which of the following are not eligible to be considered for the Baldrige Award? A. Small businesses B. Health care organizations C. Educational institutions D. State highway patrol organizations E. Nuclear power plants

D. State highway patrol organizations

4. In a Gantt chart, the horizontal axis is usually which of the following? A. Activities B. Cost C. Profit D. Time E. Milestones

D. Time

7. Assume a fixed cost for a process of $15,000. The variable cost to produce each unit of product is $10, and the selling price for the finished product is $25. Which of the following is the number of units that has to be produced and sold to break even? A. 500 units B. 667 units C. 790 units D. 900 units E. 1,000 units

E. 1,000 units 15000/(25-10)

5. What is an important difference between capacity planning in services and capacity planning in manufacturing operations? A. Time B. Location C. Demand volatility D. Utilization affects service E. All of these

E. All of these

7. The placement of which of the following is not determined by production process organization decisions? A. Departments B. Work groups C. Workstations D. Machines E. Emergency exits

E. Emergency exits

9. Which one of the following is not a major factor distinguishing service design and development from manufacturing design and development? A. The process and product must be developed at the same time. B. Many service organizations can change their service offerings virtually overnight. C. Many parts of the service package are often defined by the training that individuals receive before they become part of the service organization. D. The service package, rather than a definable good, is the output of the development process. E. Service operations can be protected by patents; manufacturing operations cannot.

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

3. Design for manufacturing and assembly delivers product improvements by emphasizing which of the following? A. Designing products that customers will want B. Reducing product quality during the assembly process C. Designing products so they can be manufactured by a virtual factory D. Reducing equipment in the production process E. Simplification of the product by reducing the number of separate parts

E. Simplification of the product by reducing the number of separate parts

3. Quality function deployment (QFD): A. Is a place where the quality assurance function is housed. B. Fills the house of quality matrix with the designer's aspirations for the product. C. Is a manufacturing function aimed at lowering cost by reducing the portion of rejected units. D. Is another term for value engineering. E. Starts with studying and listening to customers.

E. Starts with studying and listening to customers.

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

False

7. The time needed to respond to a customer's order is called the customer response time. T/F

False

1. Returning involves processes for receiving worn-out, defective, and excess products back from customers but does not involve support for customers who have problems with the product. T/F?

False It does involve support for customers who have problems with the product.

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

False It has shifted focus to understanding both what all the information is saying and also how good decisions are being made

1. "Business analytics" involves the analysis of data through a unique combination of linear programming, game theory, and queuing theory to better solve business problems. T/F?

False It is the use of CURRENT business data to solve business problems using mathematical analysis

1. The term "electronic commerce" refers to the buying and selling of electronic products and devices. T/F?

False It refers to the use of the internet as an essential element of business activity

1. The supply chain processes mentioned in the textbook are planning, sourcing, delivering, and returning. T/F?

False Planning, sourcing, making, delivering, and returning

1. Services are homogeneous. T/F?

False Services are inherently heterogeneous

1. "Product-service bundling" refers to a company building service activities into its product offerings for its customers. T/F?

True

1. During a recession, efficient firms often have an opportunity to increase market share while maintaining profitability. T/F?

True

10. The central problem in virtually every waiting line situation is a decision balancing the costs of adding services with the costs of waiting. T/F

True

10. The demand on a hospital's emergency medical services is considered an uncontrollable arrival pattern of the calling population. T/F

True

11. Inventory turn is a better measure than the total value of inventory for comparative purposes because it is a relative measure. T/F

True

2. Within a sustainability framework, the economic dimension of the triple bottom line concept goes beyond just profit for the firm but also provides lasting economic benefit to society. T/F?

True

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

True

7. An example of an assemble-to-order firm is Dell Computer. T/F

True