MQM 227 Study Guide

A service guarantee

All of the above

Backward or upstream supply chain flows include:

All of the above

Project management requires

All of the above

The Baldrige Award is given in which of the following categories?

All of the above

The information calculated from the forward and backward pass can be used for:

All of the above

Which of the following is/are assumption(s) of process control?

All of the above

Which of the following statements is true about a critical path?

All of the above

A cause-and-effect diagram:

All of the above are true

Costs of inspectors, testing, testing equipment, and labs are examples of:

Appraisal costs

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

False

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

False

Demand chain management tries to match supply and demand

False

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

False

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

False

Implicit service is also known as tangible service

False

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

False

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

False

Lean is another term for Six Sigma process improvement.

False

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

False

McDonald's uses what Levitt refers to as "the job shop type approach to service."

False

Outsourcing is the export of service activities to other countries.

False

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

False

Service guarantees are only for consumers outside the firm, and do not apply to internal customer relationships within a firm.

False

Six Sigma efforts are aimed at eliminating waste.

False

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

False

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

False

The job of the project manager is to:

Control costs, schedule, and performance of the project

Project managers' objectives include:

Cost

Which of the following is NOT a significant difference between manufacturing and service operations?

Cost per unit

The five measures of supply chain performance are:

Cost, quality, flexibility, delivery, and time

Which of the following is NOT a form of structural change of the supply chain?

Creating cross-functional teams

Order placement via the Internet does NOT include:

Use of an ERP system to schedule production

Which of the following is NOT an element of the service-product bundle?

Value of goods/service

Which of the following is NOT true about the cost of quality?

Increasing prevention cost increases appraisal, internal and external failure costs

Which of the following is NOT a specific measure of supply chain performance?

Innovation

A complete system of quality control:

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

Quality of design

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

A product's conformance to specifications:

Is independent of the quality of design

A service recovery process:

Is rapid compensation for a service failure

Which of the following statements about critical path method (CPM) is true?

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

"Slack" refers to the difference between:

Late and early times

An example of a service business/organization that has a high degree of customer contact, high customization, and a high degree of labor intensity is:

Law practice

Which of the following is NOT a characteristic of changes in structure?

Lead to changes in information systems

Which of the following is NOT true of vertical integration?

Leads to greater flexibility to changing technology.

Materials handling, transportation, and warehousing are elements of:

Logistics

____ contact services require employees with technical skills and efficient processing routines.

Low

If an organization were having difficulty trying to get customers' opinions into the definition of quality, which of the following approaches would be most suitable?

Quality Function Deployment

SERVQUAL measures which dimension of service quality

Responsiveness, Tangibles, Empathy, Assurance, and Reliability

The six-step quality cycle approach includes all of the following EXCEPT:

Reward employees for quality improvement

A process control chart:

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

Which of the following is a way to improve the infrastructure in the supply chain?

Setup time reduction

A Pareto chart:

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

Which of the following statements is NOT true about six sigma quality?

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

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

True

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

True

A small improvement in customer loyalty can substantially improve the profitability of a service firm.

True

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

True

According to the service profit chain, employees are more likely to be satisfied when management works to improve internal service quality.

True

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

True

High-contact services are more likely to be front office operations and low-contact services are more likely to be back office operations.

True

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

True

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

True

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

True

Lean projects are usually simpler than six sigma projects.

True

Scrap and rework are examples of internal failure costs.

True

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

True

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

True

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

True

The customer is a part of the service delivery process and may introduce inefficiencies into the service delivery system.

True

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

True

The major difference between the service delivery system matrix and the product-process matrix is that service process design generally does not vary with customer volume.

True

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

True

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

True

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

True

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

True

Which of the following statements is NOT true regarding supply chain operations?

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

A good service guarantee:

is an honest assurance that the customer will be satisfied

Mean time between failure:

is used to measure a product's reliability

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

False

Co-routed services offer a larger amount of choices to customers than do customer-routed services.

False

The advantage(s) that the Gantt chart has over the network method is (are):

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

Which of the following is a form of infrastructure change?

Changes in information systems

The appearance of a restaurant meal that is not satisfactory is an example of:

Attribute measurement

Which of the following is NOT an example of a high contact service?

Auto repair

________ is a combination of reliability and maintainability.

Availability

Which of the following statements about process quality control is NOT true?

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

Which of the following is NOT a type of e-procurement?

B2B marketplace

The quality cycle:

Begins with defining customer needs

Which of the following are characteristics of a low-contact service delivery system?

Both a and c

The number of defects in a product measures:

Conformance quality of the process

The average cash-to-cash cycle is defined as:

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

The purpose of performing a forward pass is to:

Determine the early start and the early finish times

Multiple critical paths can exist under the critical path method (CPM) because:

Different network paths can have the same total time

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

False

Controlling a project does NOT include:

None of the above

Which of the following is NOT a characteristic of service operations?

Ownership is transferred at time of purchase

The flow of materials from upstream nodes into a firm is called:

Physical supply

Project managers' work includes:

Planning, Scheduling, Control, and Closing

Which of the following is NOT included in internal service quality in the service profit chain?

Product design

The design and management of seamless, value-added processes across organizational boundaries to meet the real needs of the end customer is called:

Supply chain management

The degree of customer contact measures:

The amount of time the customer is in the service delivery system while the service is being produced

Which of the following is NOT true about supply chain dynamics?

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

The advantage(s) of the network method over the Gantt chart is (are) that:

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

Gantt charts are effective for project scheduling if:

The project contains simple activity sequences

Which of the following is NOT a general characteristic of a service?

The service can be transported

One of the earliest steps in designing a quality control system is to decide on:

The type of measurement to be used

Sampling inspection by attributes:

a, b, and c

The reasons for failure of quality improvement efforts include:

a, b, and c

The service-profit chain shows that _____ is the key to profitability.

customer loyalty