QUIZ 4 MANAGEMENT
According to the service-profit chain, which of the following leads to customer satisfaction and customer loyalty?
High-value service
Which of the following statements is true of ISO 9000?
ISO 9000 certification is suspended or cancelled if previously certified companies fail to follow quality procedures.
In the context of service operations, which of the following statements is true of service recovery?
It can be achieved by empowering service employees to make decisions that immediately solve customer problems.
Which of the following statements best describes ISO 14000?
It is a series of international standards for managing, monitoring, and minimizing an organization's harmful effects on the environment.
Which of the following statements is true of total quality management (TQM)?
It is characterized by customer focus and satisfaction, continuous improvement, and teamwork.
In the context of the quality of a product, which of the following statements best defines durability?
It is defined as the mean time to a product failure.
In the context of service quality, which of the following statements best defines responsiveness?
It is the promptness and willingness with which service providers give good service.
Which of the following statements is true of line-flow production?
It is typically dedicated to manufacturing one kind of product.
Which of the following manufacturing operations is most dependent on the accuracy of sales forecasts?
Make-to-stock operations
_____ is a measure of performance that indicates how much of a particular kind of input it takes to produce an output.
Partial productivity
_____ is a measure of performance that indicates how many inputs it takes to produce or create an output.
Productivity
Which of the following shows a correct mathematical relation between inputs, outputs, and productivity?
Productivity = Outputs/Inputs
Which of the following is typically the most important criterion for judging a contestant for the Baldrige Award?
Results
Which of the following characteristics of product quality refers to how easy or difficult it is to fix a product?
Serviceability
In the context of flexible manufacturing processes, which of the following is a difference between batch productions and job shops?
Unlike batch production, a job shop is typically a small manufacturing operation that handles a small lot size.
In the context of total quality management, which of the following statements is true of variation?
Variation is inversely proportional to the quality of a product.
The American Society for Quality defines quality as:
a product or service free of deficiencies.
Continuous improvement is achieved by:
a reduction in variation and higher customer satisfaction.
Clyders Inc., an apparel manufacturer, decided to reduce its inventory by lowering prices. The plan to get rid of the excess inventory was so successful that the company ran out of inventory in just a couple of days. In other words, the company experienced:
a stockout.
In the context of total quality management (TQM), _____ is an organizational goal to provide products or services that meet or exceed customers' expectations.
customer satisfaction
The key concept behind the service-profit chain is _____.
internal service quality
In the context of manufacturing operations, the highest degree of processing occurs in _____.
make-to-order operations
Arthur, the production manager of a company that manufactures cutting boards, has instructed his subordinate, Melvin, to determine the quantity of wood, labor, and electricity needed to make one maple wood cutting board. The resulting information from Melvin will help Arthur determine _____.
multifactor productivity
Roger, a manager in a company that manufactures signboards, tries to determine how much glass tubing will be needed to produce a neon signboard. In this scenario, Roger tries to determine _____.
partial productivity
A product's quality is determined by its:
reliability, serviceability, and durability.
Restoring customer satisfaction to strongly dissatisfied customers is known as _____.
service recovery
The ability to consistently perform a service well is referred to as _____.
service reliability
The purpose of _____ is to recognize U.S. companies for their achievements in quality and business performance and to raise awareness about the importance of quality and performance excellence as a competitive edge.
the Baldrige Performance Excellence Awards
Iceaul Inc., an ice-cream manufacturer, uses 810,000 gallons of milk a year. If the ordering cost is $64 per order and holding cost is $18 per gallon, then the optimal quantity to order milk is _____.
2,400 gallons
According to the service-profit chain, which of the following leads to long-term profits and growth?
Customer loyalty
In the context of manufacturing operations, which of the following statements is true of a company using assemble-to-order operations?
They order parts and combine modules of manufacturing operations ahead of customer orders.
Which of the following is one of the basic measures of inventory?
Weeks of supply
Pamela and Co., a manufacturer of cloth dolls, receives an order of 250 dolls. For this particular project, its total inventory includes 200 yards of fabric, 100 yards of ribbon, a box of 500 plastic eyes, 100 kilograms of cotton, 115 dolls in various stages of manufacturing, and 50 completed dolls. In the context of this scenario, how many dolls can be considered work-in-process inventory?
115
Brickett Inc., a company that manufactures construction materials, uses 2,500 tons of steel per year to make reinforced rods. Its ordering cost is $40 per order and holding cost is $5 per ton. According to the economic order quantity (EOQ) model, approximately how often should the company place a fresh order for steel?
Every 29 days
Which of the following statements is true of productivity?
For companies, higher productivity can lead to lower costs.
_____ include the basic inputs in a manufacturing process.
Raw material inventories
Which of the following scenarios best illustrates a job shop production?
Raydor, a company that sells various parts and components, performs turning, drilling, and milling of plastics and alloy steels to make fifty different parts in a day.
In the context of inventory costs, which of the following is considered an ordering cost?
The cost associated with phone calls made to bring inventory
In the context of inventory costs, which of the following is considered a setup cost?
The cost incurred in adjusting a machine
In the context of inventory costs, which of the following is considered a holding cost?
The cost of storing batteries to be used in finished products
