ORPE Exam 2: CHAP 15, Chapter 9, Chapter 10 Multiple choice

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.

$1.61 Multiply the holding cost by the speed differential, then divide by 365. Compare this to the actual shipping cost difference.

The quality certification that deals primarily with conformance to customer requirements is ISO __________; ISO __________ is concerned primarily with the organization's effect on the environment. a) 14000; 24700 b) 9000; 24700 c) 24700; 9000 d) 14000; 9000 E) 9000; 14000

9000; 14000

_______ variation is a variation whose cause can be identified. A. ASSIGNABLE B. Controllable C. Random D. Statistical E. Theoretical

A. Assignable

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

A tool used to organize data into logical categories is called a(n) ___. A) Affinity diagram b) Check list c) Control Chart d) Flow Chart e) Relationship diagram

Affinity diagram

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

The specifications for a product are 6 mm ± 0.1 mm. The process is known to operate at a mean of 6.05 with a standard deviation of 0.01 mm. What is the Cpk for this process? A. 3.33 B. 1.67 C. 5.00 D. 2.50 E. none of the above

B. 1.67

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

B. I, II, III, and IV

A process results in a few defects occurring in each unit of output. Long-run, these defects should be monitored with ___________. A. p-charts B. C-CHARTS C. x-bar charts D. r-charts E. o-charts

B. c-charts

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

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.

Which of the following raises quality risks?

B. outsourcing to less-developed countries

The basis for a statistical process control chart is a (the) __________. A. process capability B. SAMPLING DISTRIBUTION C. control limit D. sample range E. sample mean

B. sampling distribution

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

Our organization can obtain visibility to potential trading partners on the internet by using:

B2B

Outsourcing followed by __________ is not simple.

Backsourcing

Small changes in consumer demand can result in large variations in orders placed because of the: a) safety stock requirement b) FCFS scheduling c) lead time effect d) supply chain E) Bullwhip effect

Bullwhip effect

The specification limit for a product is 8 cm and 10 cm. A process that produces the product has a mean of 9.5 cm and a standard deviation of 0.2 cm. What is the process capability, Cpk? A. 3.33 B. 1.67 C. 0.83 D. 2.50 E. none of the above

C. 0.83

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 time-ordered plot of representative sample statistics is called a: A. Gantt chart B. SIMO-chart C. Control Chart D. Up-Down Matrix E. Standard deviation table

C. Control Chart

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

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

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

The process of identifying other organizations that are best at some facet of your operations, and then modeling your organization after them is known as: A. continuous improvement B. employee empowerment C. competitive benchmarking D. copycatting E. industrial espionage

C. competitive benchmarking

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

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 p-chart would be used to monitor _______. A. average shrinkage B. dispersion in sample data C. the fraction defective D. the number of defects per unit E. the range of values

C. the fraction defective

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

Continuous improvement

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. A. 67% B. 92% C. 33% D. 0.3% E. 5%

D. 0.3%

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

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 A. I and II B. I and IV C. II and III D. I, II, and IV E. I, III, and IV

D. I, II, and IV

TQM stands for:

D. Total Quality Management

The 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

D. all of the above

The purpose of control charts is to: A. estimate the proportion of output that is acceptable B. weed out defective items C. determine if the output is within tolerances/specifications D. distinguish between random variation and assignable variation in the process E. provide meaningful work for quality inspectors

D. distinguish between random variation and assignable variation in the process.

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

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

The optimum level of inspection is where the: A. cost of inspection is minimum B. cost of passing defectives is minimum C. total cost of inspection and defectives is maximum D. total cost of inspection and defectives is MINIMUM E. difference between inspection and defectives costs is minimum

D. total cost of inspection and defectives is minimum

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

It is especially the case for small businesses that closer interactions and increased agility make __________ relatively more attractive. A) DOMESTIC SUPPLIERS b) risk transfer c) decentralized purchasing d) global suppliers e) centralized purchasing

DOMESTIC SUPPLIERS

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%

The process capability index (Cpk) may mislead if: (I) the process is not stable. (II) the process output is not normally distributed. (III) the process is not centered. A. I and II B. I and III C. II and III D. II only E. I, II and III

E. I, II and III

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

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.

In order for TQM to be successful, it is essential that most of the organization be _________.

E. in agreement with the philosophy and its goals TQM won't work without substantial buy-in

A c-chart is used for: A. means B. ranges C. percent defective D. fraction defective per unit e) number of defects per unit

E. number of defects per unit

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

Which isn't a cost of quality? A. Prevention cost B. External failure C). Extended Service Contracts D. Internal failure E. Appraisal costs

Extended Service Contracts

A 30% reduction in product and service variety won't really affect the efficiency of a supply chain.

FALSE

A major obstacle to implementing TQM can be an emphasis on long-term financial results.

FALSE

A quality circle is a cross-functional team focused on quality

FALSE

An organization achieves quality by consistently meeting their competitor's standards.

FALSE

Because 'courtesy' is subjective, it can't be considered a factor in service quality

FALSE

Because 'courtesy' is subjective, it can't be considered a factor in service quality.

FALSE

Broadly defined, quality refers to the ability of a product or service to occasionally meet or exceed customer expectations.

FALSE

Centralized or decentralized purchasing is directly related to the size of an organization.

FALSE

Disintermediation is the refusal of one party to use mediators for price negotiation.

FALSE

E-commerce involves business-to-business (B2B) interaction only.

FALSE

Event management is the advanced planning required for major performances such as concerts or conferences.

FALSE

Gate keeping manages the cost of shipping returned goods.

FALSE

Global supply chains make purchasing easier because of more options.

FALSE

High Quality and low prices are both considered to be dimensions of quality.

FALSE

In e-commerce, the front-end design is significantly more important than the back-end design.

FALSE

In purchasing, one's only ethical obligation is to one's suppliers.

FALSE

Inventory velocity refers to the average speed (in miles/hour) of material handling equipment in a warehouse.

FALSE

Managing supply chain visibility involves making sure that potential supply chain partners are aware of your organization's needs.

FALSE

One disadvantage to RFID is that they require a 'line of sight' for reading.

FALSE

Outsourcing logistics gives a company less flexibility because it forces them to focus more on core businesses.

FALSE

Price is the primary determining factor in choosing a vendor since most products are essentially the same.

FALSE

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

Regardless of superior quality, consumers won't pay premium prices.

FALSE

Starting with the final customer and moving backward through the supply chain, batch sizes and the level of safety stock tend to decrease.

FALSE

Supplier certification is the first step required in a supplier audit program.

FALSE

The Baldrige award can only be won by manufacturing organizations.

FALSE

The design of the supply chain and establishing partnerships with vendors and distributors are examples of operating issues in a supply chain.

FALSE

The importance of purchasing relates only to the cost of parts and materials purchased, which is often 60 percent or more of the cost of finished goods.

FALSE

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

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

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

The purchasing cycle ends when the purchasing department is notified that the supplier has shipped the items.

FALSE

The seven dimensions of quality are important for products but are not applicable in service organizations.

FALSE

The seven dimensions of quality are important for products but are not applicable in service organizations.

FALSE

Traffic management refers to truck movement within our parking areas.

FALSE

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

Vendor analysis examines the function of purchased parts and materials with a view towards improvement or cost reduction.

FALSE

Forming strategic partnerships is beneficial for two or more business organizations that have the same products or services.

FALSE.

Broadly defined, quality refers to the ability of a product or service to occasionally meet or exceed customer expectations

False

Using third-party logistics involves using your organization's logistics function to ship to customers that are not officially part of the supply chain.

False

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) I, II, and III c) II D) I and II e) II and III

I and II only

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 b) I, II, and III c) II D) I and II e) II and III

I and III

Strategies to address supply chain risks include 124/I, II, IV: (I) RISK AVOIDANCE. (II) RISK REDUCTION. (III) risk projection. (IV) RISK SHARING. A) I, II, and IV only b) II and III only c) I, II, III, and IV d) II and IV only e). I and IV only

I, II & IV only

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

I, II and III

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

I, II, III, and IV

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.

I, II, and III (all)

Which of the following is a principle required for ethical behavior in purchasing? (I) loyalty to employer (II) justice to those you deal with (III) faith in your profession a) II only b) III only c) I only d) II and III only E) I, II, and III

I, II, and III (only)

RFID chips 1-2-4: (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) I, II, and IV b) II and III only c) II, III, and IV d) I and II only e) IV only

I, II, and IV

Which of these aspects of supply chain management are especially concerning to small business 245/II, IV, V (I) customer reliability (II) INVENTORY MANAGEMENT (III) purchasing costs (IV) RISK MANAGEMENT (V) INTERNATIONAL TRADE a) I and II only b) I, III, and IV only c) III, IV, and V only d) I, II, and III only E) II, IV, and V only

II, IV, and V Only

Which of these aspects of supply chain management are especially concerning to small business 2-4-5? (I) customer reliability (II) inventory management (III) purchasing costs (IV) risk management (V) international trade a) I, III, and IV only b) III, IV, and V only c) I and II only d) I, II, and III only E) II, IV, and V only

II, IV, and V only

Which of the following is not true of vendor analysis? a) Its purpose is to reduce costs and/or improve performance of purchased goods or services. b) It is usually performed only periodically. c) Representatives from design and operations may work with purchasing. d) If improvements are identified, purchasing implements those that purchasing agrees are justified. E) It involves an examination of the function of purchased parts or raw materials.

It involves an examination of the function of purchased parts or raw materials.

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

Japanese

_________ has helped business concentrate on their core business.

Outsourcing

_________ has/have helped firms to concentrate on their core business. a) Supply chains b) ERP c) Scheduling D) OUTSOURCING e) Lean production

Outsourcing

The activity which begins with a request from within the organization is: a) supply chain management B) PURCHASING CYCLE c) outsourcing search d) order receipt e) supplier selection

PURCHASING CYCLE

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

Pareto analysis

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.

Pareto analysis.

As regards quality risks, which of the following would be least likely to involve outsourcing to less-developed countries?

Pharmaceuticals

Loss of business, liability, productivity and costs are consequences of ___. A. Labor Unions B. Globalization C) Poor Quality D. Robotics E. Micro-factories

Poor Quality

The automatic identification of material is part of/facilitated by:

RFID

The Baldrige award is based on seven categories. Which is not one of those? A) Relative profitability B. Strategic planning C. Human resource focus D. Information and Analysis E. Leadership

Relative profitability

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

Return on Quality

Vendor Analysis is the examination of the _________ of purchased materials.

Source

According to Deming, it is the systems that management puts into place that are primarily responsible for poor quality, not employees.

TRUE

An advantage of decentralized purchasing is the attention given to local needs.

TRUE

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

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

Convenience, Reliability and Assurance are dimensions of service quality.

TRUE

Cost of inspectors, testing, test equipment, and labs are examples of appraisal costs.

TRUE

Creating an effective supply chain requires linking the marketing, distribution, and supplier channels.

TRUE

Crosby's concept of "quality is free" means that it is less expensive to do it right initially than to do it over.

TRUE

Customer expectations tend to change over time affecting their perception of service quality

TRUE

Decentralized purchasing can usually offer quicker response than centralized purchasing.

TRUE

Delayed differentiation is a means of increasing product variety without building the customized product from scratch or keeping large inventories of custom products.

TRUE

Design and purchasing people should work closely because changes in design, specifications, or materials can impact future purchase requirements.

TRUE

Disintermediation refers to the phenomenon that the traditional retailer or service provider is reduced or eliminated in a supply chain

TRUE

E-commerce refers to the use of electronic technology to facilitate business transactions.

TRUE

Every business organization is part of at least one supply chain.

TRUE

Firms that wish to do business with the European Community can benefit from having a quality management system that meets ISO 9000 standards.

TRUE

Frequent deliveries of small shipments can reduce inventory but also result in an increase in the transportation cost per unit.

TRUE

Information technology is the key to success of global supply chains.

TRUE

Juran describes quality management as a trilogy that consists of quality planning, quality control, and quality improvement.

TRUE

Medical malpractice claims are an example of how poor quality can affect an organization through liability.

TRUE

Most people working for a business organization are somehow involved with the supply chain of that business.

TRUE

One criticism of total quality management is that it may produce blind pursuit of quality to the neglect of other priority considerations.

TRUE

One of the major reasons for a company to adopt third-party logistics is to concentrate on one's core business

TRUE

One of the major reasons for a company to adopt third-party logistics is to concentrate on one's core business.

TRUE

Process mapping is part of process improvement.

TRUE

Producing and shipping in large lots may reduce costs but increase lead times.

TRUE

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

RECENT changes to ISO guidelines stress continuous improvement regardless of how good you currently are.

TRUE

RFID eliminates the need for counting and bar-code scanning.

TRUE

Recent changes to ISO guidelines stress continuous improvement regardless of how good you currently are

TRUE

Reducing the variations in our product or service is an important key to perceived quality.

TRUE

Returned goods are part of reverse logistics.

TRUE

Scheduling and maintaining equipment are operational decisions.

TRUE

Serviceability, Conformance and Reliability are dimensions of product quality.

TRUE

Six sigma programs have both management and technical components.

TRUE

Some firms have structured their procurement function to include both centralized and decentralized purchasing.

TRUE

Strategic partnering is encouraged when two or more business organizations have complementary products or services that would benefit the others.

TRUE

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 is not just a collection of techniques. It is rather a whole new attitude toward quality.

TRUE

The PDSA cycle forms the conceptual basis for continuous improvement.

TRUE

The customer is the focal point and customer satisfaction is the driving force in quality management.

TRUE

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

The dimensions of product and service quality are too abstract to be applied operationally.

TRUE

The goal of supply chain management is to synchronize supply and demand of all of the organizations that are part of the chain.

TRUE

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

The need for supply chain management increases as globalization increases.

TRUE

The primary difference between internal failures and external failures is time and place of discovery of the failure.

TRUE

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

The service function of purchasing interfaces with many area including legal, accounting, and engineering functions.

TRUE

There is a positive link between quality and productivity.

TRUE

Three key philosophies in TQM are continuous improvement, involvement of everyone in the organization, and customer satisfaction.

TRUE

To prevent temporary storage in a warehouse, cross docking can be used.

TRUE

Total quality management attempts to involve everyone in an organization in the effort to achieve quality.

TRUE

User instructions and follow-up services after delivery are important elements of overall product or service quality.

TRUE

Using third-party fulfillment means losing control of fulfillment.

TRUE

Variations create uncertainty, thereby causing inefficiencies in a supply chain.

TRUE

Vendor analysis is the process that evaluates the source of supply in terms of price, quality, reputation, and service.

TRUE

When considering service quality, convenience often is a major factor.

TRUE

TQM stands for: A. Taguchie Quality Methods B. Tactical Quality Measurements C. The Quality Matrix D) Total Quality Management E. Total Quantity Measurement

Total Quality Management

The service function of purchasing interfaces with many areas, including legal, accounting, and engineering functions.

True

To avoid temporary storage in a warehouse, cross-docking can be used.

True

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

a check sheet

The tool that is useful in documenting the current process is: A. a control chart B. a Pareto chart C. a check sheet D) a flow chart E. a simo chart

a flow chart

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

a voluntary group of employees

The 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

all of the above

Which of the following is an element of TQM? A. continual improvement B. competitive benchmarking C. operations Manager empowerment D. team approach E) all of the above

all of the above

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.

all of the above.

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

appraisal costs

The "5W2H approach" involves: A. measuring width and height B. using 7 people C. using 2 people D. using 9 people E) asking questions

asking questions

One important objective of purchasing is to:

be knowledgeable about new products

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

brainstorming

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

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

cause-and-effect diagrams

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

close, collaborative ties w/suppliers

Logistics includes all of these except:

customer selection

Fixing a problem will often cost money; to minimize these costs it is best to find and fix the problem ___. A. just before shipping our product to the customer B. immediately after we complete the last operation C) during the design phase D. just before we begin the first production operation E. regardless of when you fix the problem, costs are about the same

during the design phase

The website and order fulfillment are essential features of: A) e-commerce b) Internet service providers c) market segmentation d) inventory balancing e) delayed differentiation

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

external failure costs

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%.

fill rate

Which of the following is not a benefit of RFID?

frequent deliveries of smaller shipments

The more __________ a company's supply chain, the more difficult it is to ensure that the supply chain is managed ethically. a) visible b) interconnected c) competitive D) global e) shortened

global

Vendor analysis has the greatest potential for savings for items which have:

high annual cost-volume

Vendor analysis has the greatest potential for savings for items which have: a) low cost per unit. b) high annual usage. C) high annual cost-volume. d) low annual cost-volume. e) high cost per unit.

high annual cost-volume.

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.

identifying the cause of a problem

A factor that makes it desirable for business organizations to actively manage their supply chains is:

increasing globalization

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

internal failure costs

Which of the following would not usually be a main factor in selecting a vendor? a) location b) quality C) inventory turnover d) vendor services e) price

inventory turnover

Which of the following is not a benefit of effective supply chain management?

larger number of suppliers

Which of the following is not a goal of supply chain management? a) fewer suppliers and long-term relationships b) on-time deliveries C) lowest possible transportation costs d) delivery often to the place of use e) small lot sizes

lowest possible transportation costs

Before a dimension of quality can be made operationally useful, it must be restated in some ___________ form. a). certifiable b) manipulative c) marketable d) qualitative E) measurable

measurable

The purchasing perspective of the supplier as a partner is characterized by: a) low volume b) an emphasis on low prices c) 100 percent inspection for quality D) one or a few suppliers e) low flexibility

one or a few suppliers

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

p-chart

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

performance, special features, conformance, and reliability

Quality planning and administration, quality training, and quality control procedures are examples of ___. A. internal failure costs B. external failure costs C. appraisal costs D) prevention costs E. replacement costs

prevention costs

The interface between the firm and its suppliers is: a) distribution. b) accounting. c) production. D) purchasing. e) engineering.

purchasing.

Which of the following is not a benefit of centralized purchasing? a) potential for use of purchasing specialists b) supplier research C) quick response to local needs d) potential for quantity discounts e) better service from suppliers

quick response to local needs

Real-time information about product movement on store shelves could benefit from the use of:

radio frequency identification tags.

The purchasing cycle begins with: a) placing an order B) receiving a requisition c) selecting a supplier d) conducting a value analysis e) evaluating potential vendors

receiving a requisition

If customer satisfaction doesn't always lead to customer loyalty, firms may need to focus additional effort on __________ strategies.

retention

Which of the following is not a performance driver? a) cost b) flexibility C) stability d) quality e) velocity

stability

Which of the following is not a measure of the reliability of the supply chain? a) fill rate B) supply chain response time c) lead time variability d) on-time delivery e) improving e-fulfillment statistics

supply chain response time

The two types of decisions that are relevant to supply chain management are: a) location and layout b) domestic and international c) in-sourcing and outsourcing D) tactical and operational e) short and long-term

tactical and operational

Asking questions about the current process in the hope that it will lead to important insights about why the current process isn't working as well as it could is called: A) the "5W2H approach" B. using quality circles C. benchmarking D. PDCA cycle E. none of the above

the "5W2H approach"

ISO 9000 standards do not have a requirement for ___. A. resource B. remedial C. systems D) training E. management

training

Which of the following is not an application of E-business?

universal product codes

Which of the following is least likely to be a key consideration when a company chooses a supplier? A) value analysis b) quality and quality assurance c) flexibility of design change d) reputation and financial stability e) lead time and on-time delivery

value analysis

Examination of the sources of supply for purchased parts or materials in order to improve performance is called:

vendor analysis

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

x-bar chart