OM Exam 2
patient
A _______ customer is one who enters the system and remains there until being served.
Defining who the customer is
A firm's internal program in employee involvement includes which of the following considerations?
that the employees are actually empowered to do their jobs and given autonomy in decision making.
The Continuous Improvement and Employee Involvement intersection in the integrative view of TQM requires
a commitment to ongoing employee training in statistical tools and their usage.
The Employee Involvement and Analytical Process Thinking intersection in the integrative view of TQM requires
environmental management system
The ISO 14001:2004 standards require documentation of a firm's environmental program. Which component requires a plan to improve performance in resource use and pollutant output?
management by fact, and not authority
The Management Commitment/Leadership and Analytical Process Thinking intersection in the integrative view of TQM requires
acceptance sampling
The application of statistical techniques to determine whether a quantity of material should be accepted or rejected based on the inspection or test of a sample is known as
product variety and process divergence is low
Using input measures of capacity is least appropriate in which of the following situations?
select an appropriate capacity cushion for a high customer-contact process.
Waiting-line models often are used in capacity planning in order to
A preemptive discipline
_________ is a rule that allows a customer of higher priority to interrupt the service of another customer.
SimQuick
_________ is an easy-to-use computer package that is simply a spreadsheet with some macros with which simple waiting line processes may be simulated.
Outer limit
A control chart typically does NOT show which of the following values?
the average cost per unit increases as the facilities size increases
A diseconomy of scale is realized when
capacity coushin
A measure of the reserve capacity a process has to handle in unexpected increases in demand is the
capacity cushion
A measure of the reserve capacity a process has to handle in unexpected increases in demand is the
Conformance to Specifications
A process failure that results in the process's inability to meet advertised performance standards violates which of the five definitions of quality?
4
A truck stop along the interstate uses fuel pumps that operate at 6 gallons per minute. The service volume is 200 trucks per day and the truck stop operates 24/7/365. It has been determined that the average purchase is 90 gallons and effective utilization is given as 60%. How many pumps should be available to accommodate this business volume?
Expansion will lead to economies of scale
An expansionist capacity strategy is NOT indicated when
expansion will lead to economies of scale
An expansionist capacity strategy is NOT indicated when
increase the efficiency of the servers
By devising improved work methods, management is attempting to
follow the leader
Chang and Chang observe that the competition is increasing the size of its warehouses. They have decided to do the same. They are following _______ strategy.
60-70%
In general, a less capital-intensive industry such as a hotel chain would do well with a utilization rate of
the entire quantity of items is accepted
In acceptance sampling, if the sample passes the test then
are flexible flow processes
Input measures of capacity are preferred when there
75
Jorge Ortega has been using a 10 percent capacity cushion, servicing 60 customers an hour. There is a good deal of customer contact, and customer service has been poor due to random fluctuations in demand. If he increases his capacity cushion to 20%, what will be the new capacity requirement?
investment in new facilities
Long-term capacity planning deals with which of the following factors?
20-30
Most experts on the costs of poor process performance and quality estimate losses in the range of ________ percent of gross sales for defective or unsatisfactory products.
Customer Satisfaction
TQM stresses three principles for achieving high levels of process performance and quality. Which of the following is one of them?
true
The overall focus of TQM is always on the needs of the customer through a culture of continuous improvement and an active engagement and involvement of employees at all levels.
2.0
The process capability index is compared to a critical value to judge whether a process is capable. Firms striving to achieve six-sigma performance use a critical value of
continuous improvement
The plan-do-study-act cycle illustrates
Prevention Costs
Training workers to do their jobs properly and working with suppliers to improve the quality of material they supply to you are examples of
Reduce the waiting time of select customers
What is the objective that managers are trying to attain when they decide to allow customer preemption?
acceptable quality level
What is the statement used to describe the proportion of defective items (outside of specifications) that the buyer will accept in a shipment?
when the number of customers in the system does not affect the rate at which the population generates new customers
When is the customer population of a waiting line problem said to be infinite?
results
Which of the Baldrige criteria is given the most weight in selecting winners?
A random-number generator
Which of the following elements are NOT common to waiting-line problems?
Differential pricing, advertising, special promotions
Which of the following is a way that managers may attempt to affect the rate of customer arrivals?
The transaction is intended to generate a disproportionate economic benefit to the provider at the expense of the customer. The provider conceals the truth based upon what is actually known to the provider. The conduct of the provider is intentional and motivated by a desire to exploit the customer.
Which of the following is an element of a deceptive business practice that presents a major concern for service or product quality?
appraisal
Which of the following is considered one of the four major cost of quality categories?
results
Which of the following is one of the seven major criteria for the Baldrige award?
Companies become certified by proving to a qualified external examiner that they comply with all the requirements. Compliance with ISO 9001:2008 standards indicates to customers that companies can provide documentation to support whatever claims they make about quality. Compliance with ISO 9001:2008 standards says nothing about the actual quality of a product.
Which of the following is true about ISO 9001:2008, the standards governing documentation of a quality program?
Customers are served based on a priority discipline
Which of the following situations requires the use of simulation as a key assumption of the multiple-server model is violated?
The mean arrival rate exceeds the mean service rate
Which of the following situations requires the use of simulation as a key assumption of the single-server model is violated?
Acceptance sampling is the application of statistical techniques to determine if a quantity of material from a supplier should be accepted or rejected.
Which of the following statements about acceptance sampling is true?
allocate service tasks to sequential phases, affect the rate of customer arrivals, assign more than one person to a service facility
Which of the following ways represents how management can improve a service system?
