JimBoOPPS

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

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

According to the Logistics-System Design Matrix, when shipping high volumes of materials, all of the following are logical except: A) Air B) Pipeline C) Highway D) Rail E) Water

A) Air -Due to the cost, it is too expensive to send large volumes by air

Testing is an example of: A) Appraisal costs B) Prevention costs C) Internal failure costs D) External failure costs E) None of the above

A) Appraisal costs -Appraisal costs ensure that the product or process is acceptable. Prevention costs are the sum of all costs to prevent defects. Internal and external failure costs are costs incurred on account of poor quality.

Which is not an example of production leveling: A) Hiring temporary tax preparers in March and April B) McDonald's offering a limited breakfast menu C) A take-a-number system to wait in line D) The post office charging more for expedited service E) Building inventory for the holiday season throughout the year

A) Hiring temporary tax preparers in March and April -The government would level production of tax professionals if they gave individuals staggered dates to submit their taxes instead of one date for everyone

Which of the following is not an application of behavioral concepts to enhance service encounters? A) Segment the pain, combine the pleasure B) The front-end and back-end of a service are not equal C) Give the customer control D) Pay attention to norms E) None of the above

A) Segment the pain, combine the pleasure -The correct form is segment the pleasure, combine the pain

Which of the following is not required for ISO 9000 Certification? A) Third party auditing B) A completed Baldrige application C) Evidence of best practices at every stage of the business D) Evidence of mutually beneficial supplier relationships E) Process approach F) All of the above

B) A completed Baldrige application -Companies do not have to apply for the Baldrige to become certified.

Which of the following product promotional activities would probably help make the supply chain more efficient? A) Price promotions that expire on a specific date B) An "everyday" low price strategy where prices are not dependent on quantity delivered with a specific order C) Special packaging for a specific event that occurs one time each year D) A 2 for 1 price promotion E) All of the above

B) An "everyday" low price strategy where prices are not dependent on quantity delivered with a specific order -B is the only option that tends to build a continuous supply chain; A and C lead to intermittent supply flow, resulting in lower efficiency.

In Six Sigma, DMAIC stands for: A) Define, Meter, Analyze, Improve, Control B) Define, Measure, Analyze, Improve, Control C) Decide, Meter, Analyze, Improve, Control D) Decide, Measure, Analyze, Improve, Control E) Decode, Memorize, Analyze, Improve, Control

B) Define, Measure, Analyze, Improve, Control

When comparing multiple processes to manufacture a product, the path of lowest total cost is always a straight line: A) True B) False

B) False -Depending on the amount produced, the process that gives the lowest total cost will change so the path of lowest total cost combines the production cost line of multiple processes usually making it look more like a curve

Consider the following data from a company annual report: Lower values of inventory turn are considered better for a company. A) True B) False

B) False -Lower levels of inventory cause the inventory turn ratio to increase. Inventory turn equals cost of goods sold divided by inventory therefore higher rates of inventory since they imply less inventory for a given cost of goods sold.

Which of the following is not a basic process flow structure? A) Work Center B) Mass Attack C) Assembly Line D) Project Layout E) Continuous Process

B) Mass Attack

What are poka-yokes? A) Service quality that fluxuates like a yo-yo B) Procedures that prevent defects from happening C) Japanese drawings of a customer point of view of a service D) Low contact customer service jobs that can be automated E) Service strategy improvement techniques

B) Procedures that prevent defects from happening -A poka-yoke is a procedure to prevent mistakes from happening

What is the main difference between a service supply chain and a manufacturing supply chain? A) Manufacturing supply chains can be outsourced B) Service supply chains rely on interaction between customer and provider C) Service supply chains are shorter D) Manufacturing supply chains can have capacity issues E) They are exactly the same

B) Service supply chains rely on interaction between customer and provider

Which most closely matches the Assocation for Operations Management definition of logistics: A) Moving stuff B) The art and science of obtaining, producing and distributing material and products in the proper place in the proper quantity C) What can Brown do for you? D) The world delivered by 10am E) When it positively absolutely has to get there

B) The art and science of obtaining, producing and distributing material and products in the proper place in the proper quantity -B most closely matches the AOM definition of logistics.

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

Netflix would be an example of which of the following approaches to managing customer induced variation: A) Cost penalties B) Uncompromised reduction C) Classic reduction D) Classic accommodation E) None of the above

B) Uncompromised reduction

Cross docking refers to: A) The practice of having ships dock in the form of a cross B) Using a consolidation warehouse to break down larger shipments for the local area C) Finding the optimal parking location at a loading dock D) Optimizing dock size in a port E) Mobile platforms to dock at for ships

B) Using a consolidation warehouse to break down larger shipments for the local area -It is called cross docking because inbound trucks unload on one ship and outbound load on the other side of the warehouse

Which of the following is not an element of JIT? A) small-lot production B) quickly changing schedule C) multifunction worker D) kanban pull system E) perfect or nearly perfect quality

B) quickly changing schedule -An important element of JIT is to have level/fixed schedules. All other elements are correct.

The product-process matrix: A) shows as volume decreases an assembly line is the solution B) shows as volume increase specialized equipment becomes cost effective C) shows all process structures except work centers are inefficient D) guides companies on what products to produce E) allows a manager to justify buying new equipment

B) shows as volume increase specialized equipment becomes cost effective -The point of the matrix is to show that as volume increases and the product line narrows, specialized equipment and standardized material flow becomes feasible

The type of processing structure that is used for producing discrete products at higher volume is: A) Work Center B) Batch C) Assembly Line D) Project Layout E) Continuous Process

C) Assembly Line -The other options either produce small volume or cannot produce discrete products

The phenomenon of magnification of demand variability, as we move from the customer to the producer in the supply-chain, is referred to as the: A) Postponement effect B) Elasticity of demand C) Bullwhip effect D) Price deflator E) Just-in-time approach

C) Bullwhip effect -This is a term that relates the supply of a product to demand fluctuations throughout the supply chain

The idea of the Value Density calculation is: A) Finding a carrier that can handle the weight B) Matching the weight of the product with an appropriate carrier C) Determining how a product should be shipped considering its weight and value D) Finding the minimum cost carrier E) Finding the fastest carrier for a product

C) Determining how a product should be shipped considering its weight and value -Value density considers both the weight and the value of the product to determine an appropriate carrier. The correct answer is C.

Which is not a characteristic of a well-designed service system? A) User-friendly B) Links the back and front office C) Gives the same service to all customers regardless of their needs D) Robust so it can cope with variations E) Gives evidence of the quality of service

C) Gives the same service to all customers regardless of their needs -A well-designed service system should provide service that matches the needs of the customers, not a one size fits all approach

The ______ the percentage of contact time between the service system and the customer, the ________ the degree of interaction between the two during the production process. A) Greater, lesser B) Lesser, greater C) Greater, greater D) None of the above

C) Greater, greater -C is the correct answer because the extent of contact is roughly defined as the percentage of time the customer must be in the system relative to the total time it takes to perform the customer service.

According to Hau Lee, a supply side of the supply chain expert, which of the following types of products need to be delivered with efficient supply-chains? A) Custom products B) Innovative products C) Grocery products D) High technology products E) Responsive products

C) Grocery products -Lee categorizes supply-chains as efficient, responsive; risk-hedging or agile; grocery products employ an efficient supply chain.

A Six Sigma program usually requires all of the following except: A) Executive Leadership B) Corporate wide training in concepts and tools C) Karate trained black belts D) Reinforcement E) Setting objectives

C) Karate trained black belts -Although Six Sigma usually employs the term "black belt", actual karate training is not required

The approach to delivering on-site service made famous by Nordstrom department stores is: A) Production line approach B) Self-service approach C) Personal attention approach D) None of the above

C) Personal attention approach -McDonald's popularized the production line approach, while ATMs and gas stations made the self-service approach famous.

Appreciative inquiry (AI) focuses on: A) The root causes of failure B) Mathematical analysis C) The how's of success D) Matching the quality capabilities of other organizations E) None of the above

C) The how's of success -The unique feature of the approach is that it looks for how to do things right, rather than why things go wrong.

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

A breakeven point indicates which of the following: A) The point where profit is maximized B) The point where cost is minimized C) The point where we are indifferent between two options D) The point where we are most efficient E) All of the above

C) The point where we are indifferent between two options

An example of prevention quality cost is: A) Inspection B) Testing C) Train personnel D) Rework E) Warranty replacements

C) Train personnel -A and B are examples of appraisal costs, while D and E are examples of internal and external failure costs respectively.

In location planning, the Centroid method requires all of the following information except: A) Amount to be shipped B) Distance between locations C) Truck available for shipping D) X and Y coordinates on a grid E) All of the above

C) Truck available for shipping -The centroid method does not consider which transportation method will be used, only distances and volumes

Which of the following are lean implementation requirements? A) Preventive maintenance B) Excellent quality C) Vertically integrated facilities D) A and B E) A, B, and C

D) A and B - The government would level production of tax professionals if they gave individuals staggered dates to submit their taxes instead of one date for everyone

Supply-chain response relates to the following: A) How quickly a customer order can be filled B) How quickly a company can react to a new competing product C) How inexpensive the product is D) A and B E) All of the above

D) A and B -Response relates to reaction speed, not cost.

Quality control charts usually have a central line and upper and lower control limit lines. Which of the following is not a reason that the process being monitored with the chart should be investigated? A) A large number of plots are close to the upper or lower control lines B) Erratic behavior of the plots C) A single plot falls above or below the control limits D) A change in raw materials or operators E) A run of five above the central line

D) A change in raw materials or operators

The major decision variables in equipment selection are: A) Flexibility B) Labor requirements C) Manufacturer D) Both A and B E) Both B and C

D) Both A and B -D is the correct answer. Manufacturer (Choice C) is a factor to consider under decision variable initial investment.

Which of the following is not a dimension of design quality? A) Features B) Durability C) Serviceability D) Customization E) Perceived quality

D) Customization -All others are dimensions.

Which of the following is not an element of a good service guarantee? A) Unconditional B) Easy to understand and communicate C) Painless to invoke D) Ensures the firm makes a profit E) Meaningful to the customer

D) Ensures the firm makes a profit

Which Quality Guru proposed 10 steps to quality improvement in the Quality Guru's Compared exhibit? A) Crosby B) Deming C) Ishikawa D) Juran E) None of the above

D) Juran -Juran. Crosby proposed 14 steps to quality improvement; Deming 14 points for management; Ishhikawa was not included in the comparison.

An important strategy for localizing a product in the context of supply-chain design is the following: A) Postponing the task of differentiating a product until the last point in the supply network B) Minimizing reengineering cost C) Very high volume sales D) Minimizing inventory cost E) Low direct labor cost

D) Minimizing inventory cost

The best description of the process structure used for assembling the Space Shuttle is: A) Work Center B) Manufacturing Cell C) Assembly Line D) Project Layout E) Continuous Process

D) Project Layout -Due to the size of the Space Shuttle it is assembled at a central location

Which of the following is not true about JIT systems? A) The JIT system is based on the philosophy of eliminating waste and utilizing the full capability of the worker. B) Under JIT the ideal lot size is one. C) JIT is typically applied to repetitive manufacturing. D) The goal of JIT is to drive all inventory queues to a moderate level thus minimizing inventory investment and shortening lead times. E) All the above statements are true.

D) The goal of JIT is to drive all inventory queues to a moderate level thus minimizing inventory investment and shortening lead times. -The goal of JIT is to drive all inventory queues to zero (and not a moderate level) thus minimizing inventory investment and shortening lead times.

You have just used the capability index (Cpk) formulas to compute the two values "min [1, 1]." Which of the following is the proper interpretation of these numbers? A) The true capability index value is exactly 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) None of the above

D) The mean has not shifted at all

The fundamental decision in logistics is: A) What to send B) How often to send something C) How many items to send D) What form of transportation to use E) What color to paint your delivery trucks

D) What form of transportation to use -Deciding the form of transportation is fundamental and many forms are competitive

With regards to working with suppliers, lean systems typically require: A) delivery of large lots at frequent intervals B) buyer inspection of goods and materials C) multiple sources from which to purchase D) long-term relationships and commitments E) the lowest price possible

D) long-term relationships and commitments -A, B, C and E contradict the lean philosophy, i.e. lean preaches smaller lot sizes, supplier inspection of goods and materials, single sourcing and quality not price should be the main criteria when selecting supplies.

A kanban card is used to signal that: A) work should not be moved to the next station B) a worker has run out of parts C) a machine has broken down D) work is authorized to replenish a downstream station E) a machine is ready for preventive maintenance

D) work is authorized to replenish a downstream station - Kanban cards are used to signal that material is needed. This helps in regulating the JIT flow.

Which of the following statements is not true about the strategic uses of the service-system design matrix? A) Enables systematic integration of operations and marketing strategy B) Permits comparison with how other firms deliver specific services C) Indicates life cycle changes that might be in order as the firm grows D) Both A and B E) A, B, and C

E) A, B, and C -All are strategic uses of the matrix.

The benefit of group technology includes: A) Elimination of movement and waiting time between operations B) Reduction of inventory C) Reduction of number of employees required D) A and B E) A, B, and C

E) A, B, and C -E is the correct answer. All of the above are benefits of group technology.

In Six Sigma, which pieces of information are required to calculate defects per million opportunities (DPMO)? A) Unit B) Defect C) Opportunity D) Probability E) A, B, and C

E) A, B, and C -e first three are all part of the equation

The service triangle includes: A) The service strategy B) Employees C) Management D) Support systems E) A, B, and D

E) A, B, and D -Management is important, however, it is not one of the service triangle elements.

The categories for the Baldrige Award include: A) Manufacturing companies or subsidiaries B) Small businesses C) Educational institutions D) Healthcare organizations E) All of the above

E) All of the above

What factors do companies need to consider when sourcing product? A) Material costs B) Transportation cost C) Production costs D) Outsourcing costs E) All of the above

E) All of the above

In location planning, the Factor rating system: A) Is the most widely-used B) Uses an easy to understand format C) Assigns point values to factors D) Uses total points from all factors to pick a location E) All of the above

E) All of the above -Factor rating is simple and very flexible

Supply-chain strategy concepts are applicable to what types of companies? A) Manufacturing B) Service C) Restaurants D) Airlines E) All of the above

E) All of the above -Supply-chain strategy concepts are applicable to all of the above types of companies.

Which of the following is not an alternative identified in the service-system design matrix? A) Mail contact B) Face-to-face loose specs C) Face-to-face tight specs D) Phone contact E) All of the above are identified

E) All of the above are identified

The type of processing structure that is used to produce gasoline, chemicals, and drugs is: A) Work Center B) Batch C) Assembly Line D) Project Layout E) Continuous Process

E) Continuous Process -Job shop produces low standardized products, batch produces multiple products and assembly line produces fewer major products. Project, on the other hand, is not a processing structure.

In monitoring process quality we might use which of the following statistics? A) Absolute values B) Percentage deviation from tolerance centers C) "k" values for the sample mean D) Logarithmic control intervals E) Difference between the highest and lowest value in a sample

E) Difference between the highest and lowest value in a sample

______________ refers to service encounters whose specifications must be developed through some interaction between the customer and the server. A) Mail contact B) Face-to-face loose specs C) Face-to-face tight specs D) Phone contact E) Face-to-Face total customization

E) Face-to-Face total customization -Under mail contact and phone contact customers have little interaction with the system. Face-to-face loose specs refer to situations where the service process is generally understood but there are options in how it will be performed. Face-to-face tight specs refer to those situations where there is little variation in the service process-neither customer nor server has much discretion in creating the service.

Which of the following is NOT one of the more successful applications of lean concepts in services? A) Organize problem-solving groups B) Upgrade housekeeping C) Upgrade quality D) Clarification of process flows E) Introduction of demand-push scheduling

E) Introduction of demand-push scheduling -Introduction of demand-pull/customer-driven scheduling (and not demand-push scheduling) is necessary for operating a service business.

i2 Technologies rate based planning is based upon the following planning and execution approaches: A) Using inventory to accommodate demand variation B) No rates are established for end items or parts C) Discrete orders are used to communicate requirements throughout the supply chain D) All of the above E) None of the above

E) None of the above -A-C are conventional planning and execution approaches, not rate based planning and execution.

Typical issues to consider in facility location include all of the following except: A) Proximity to customers B) Business climate C) Total cost D) Quality of labor E) None of the above

E) None of the above -All of the answers are issues to consider

Third-party logistics providers include all of the following except: A) United Parcel Service (UPS) B) FedEx C) DHL D) Ceva Logistics E) Santa Claus

E) Santa Claus -Although Santa supposedly delivers, he does so for himself, not as a third party