Test 2 Managment 421 5,6,7,8,9
What is the percentage defective in an average lot of goods inspected through acceptance sampling? A. AOQ B. AQL C. LTPD D. OC curve
A. AOQ
Which of the following statements is NOT true? A. Adding flexibility to the production process can be a major competitive advantage. Building flexibility into a production process is usually inexpensive, but difficult. B. Selecting the best equipment requires understanding the specific industry and available processes and technology. C. The selection of equipment requires considering cost, cash flow, market stability, quality, capacity, and flexibility. D. Selection of a particular process strategy requires decisions about equipment and technology.
A. Adding flexibility to the production process can be a major competitive advantage. Building flexibility into a production process is usually inexpensive, but difficult.
Which of the following is a characteristic of the maturity phase of the product life cycle? A. Competitors are well established. B. Products are "fine-tuned." C. Product designs begin to stabilize. D. Products are considered for termination.
A. Competitors are well established.
Which of the following is NOT a regulatory agency that provides guidance and standards of operations for manufacturing and assembly activities? A. EUETS B. EPA C. OSHA D. state and local agencies that regulate workers rights and employment standards
A. EUETS
Which of the following is NOT one of the techniques for building employee empowerment? A. Eliminate formal organization structures such as teams and quality circles. B. Build communication networks that include employees. C. Build high-morale organizations. D. Develop open, supportive supervisors.
A. Eliminate formal organization structures such as teams and quality circles.
Which of the following statements is NOT true regarding process redesign? A. Process redesign is also called process reinvention. B. Process redesign is also called process reengineering. C. Process redesign also focuses on those activities that cross functional lines. D. Effective process redesign works only if the basic process and its objectives are reexamined.
A. Process redesign is also called process reinvention.
A house of quality would depict the strength of the relationship between which of the following two items? A. The customer's desire for a durable wallet and the company's choice of material for the wallet. B. The customer's need for a sealable change pocket and the customer's need for plastic inserts to display pictures. C. The design team's choice of material for a wallet and the materials that were considered but rejected by the design team. D. The stitching used in your company's new product and the stitching used in a competitor's wallet.
A. The customer's desire for a durable wallet and the company's choice of material for the wallet.
A flexible workweek is sometimes called A. a compressed workweek. B. a jellyfish workweek. C. flextime. D. a part-time workweek.
A. a compressed workweek.
Efficiency is given by A. actual output divided by effective capacity. B. design capacity divided by utilization. C. effective capacity divided by actual output. D. actual output divided by design capacity.
A. actual output divided by effective capacity.
A successful quality strategy begins with A. an organizational culture that fosters quality. B. engaging employees in the necessary activities to implement quality. C. an understanding of the principles of quality. D. satisfying customers and obtaining a competitive advantage.
A. an organizational culture that fosters quality.
What is a successful technique used by companies such as Ingall Ship Building Corporation to avoid some of the difficult problems producing items in fixed-position layouts? A. complete as much of the project as possible offsite B. use blanket purchase contracts that cover projected purchasing needs over a one-year time period C. hire time-flexible workers D. hire cross-trained workers
A. complete as much of the project as possible offsite
The transportation model A. determines the best pattern of shipments from several points of supply to several points of demand. B. determines the crossover point between two different locations. C. finds the location of a single distribution center that minimizes distribution costs. D. uses both qualitative and quantitative factors.
A. determines the best pattern of shipments from several points of supply to several points of demand.
How companies remain in business is referred to as A. economic sustainability. B. carbon footprint. C. social accounting. D. corporate social responsibility.
A. economic sustainability.
Which of the following moves production to a large work cell that remains part of the present facility? A. focused factory B. focused work center C. cross-docking D. fixed-position layout
A. focused work center
Methods analysis focuses on A. how a task is accomplished. B. the design of the machines used to perform a task. C. reducing the number of steps required to perform a task. D. the raw materials that are consumed in performing a task.
A. how a task is accomplished.
Which of the following could reduce costs and increase profit? A. increased productivity B. flexible pricing C. improved response D. improved reputation
A. increased productivity
Which of the following phases of the product life cycle has negative cash flow and increasing spending on development and production? A. introductory phase B. maturity phase C. decline phase D. growth phase
A. introductory phase
A product-oriented layout A. is organized around products or families of similar high-volume, low variety production. B. addresses the layout requirements of large, bulky projects such as ships and buildings. C. deals with low-volume, high-variety production. D. allocates shelf space and responds to customer behavior.
A. is organized around products or families of similar high-volume, low variety production.
Human resource strategy includes the decision areas of A. labor planning, job design, and labor standards. B. labor planning, scheduling, and labor standards. C. labor planning, job design, and scheduling. D. job design, labor standards, and scheduling.
A. labor planning, job design, and labor standards.
The main objective of retail layout is to A. maximize profitability per square foot of floor space. B. build teams. C. provide for comfort, safety, and movement of information. D. minimize total costs.
A. maximize profitability per square foot of floor space.
Which of the following represents an internal product development strategy? A. migration of existing products B. joint ventures C. purchase technology or expertise by acquiring the developer D. alliances
A. migration of existing products
Which of the following measures the proportion of variation (3sigma) between the center of the process and the nearest specification limit? A. process capability index B. process capability ratio C. standard deviation of the process population D. process range
A. process capability index
What is a flowchart with time added on the horizontal axis? A. process mapping B. CNC C. service blueprinting D. process chart
A. process mapping
Taguchi's quality loss function is based on a A. quadratic equation. B. negative exponential distribution. C. linear equation. D. binomial distribution.
A. quadratic equation.
Which of the following is NOT a benefit generated by manufacturability and value engineering? A. reduced standardization of components B. improved job design and job safety C. reduced complexity of the product D. reduction of environmental impact
A. reduced standardization of components
Which of the following allocates display space and responds to customer behavior? A. retail layout B. warehouse layout C. office layout D. product-oriented layout
A. retail layout
Which of the following is NOT a production technology that enhances production and productivity? A. service blueprinting B. process control C. automatic identification systems D. vision systems
A. service blueprinting
What is the probability of accepting a bad lot? A. type II error (beta) B. AQL C. LTPD D. type I error (alpha)
A. type II error (beta)
A flow diagram is A. used to analyze the movement of people or material. B. used to examine the ergonomics of a job. C. a way of improving utilization of an operator and a machine. D. a chart depicting right- and left-hand motions.
A. used to analyze the movement of people or material.
A goods-producing location decision would likely emphasize the importance of which of the following? A. utility and labor costs B. parking and access C. security and lighting D. appearance and image
A. utility and labor costs
What is a review of successful products that takes place during the production process? A. value analysis B. CAD C. virtual reality D. LCA
A. value analysis
In many applications, human quality inspectors can be replaced effectively by A. vision systems. B. automated storage and retrieval systems. C. RFID tags. D. FMS.
A. vision systems.
Which of the following uses a variety of visual communication techniques to rapidly communicate information to stakeholders? A. visual workplace B. activity charts C. ergonomics workplace D. kanban workplace
A. visual workplace
Which of the following technologies is particularly useful for prototype development and small lot production? A. 3-D printing B. CAM C. STEP D. CAD
A. 3-D printing
Which of the following statements about the visual workplace is NOT correct? A. Well-designed printouts and paperwork root out confusion and replace displays and graphs. B. The visual workplace can eliminate non-value-added activities by making standards, problems, and abnormalities visual. C. The visual workplace needs less supervision because employees understand the standard, see the results, and know what to do. D. A visual workplace uses low-cost visual devices to share information quickly and accurately.
A. Well-designed printouts and paperwork root out confusion and replace displays and graphs.
A device or technique that ensures production of a good unit every time is a A. poka-yoke. B. control chart. C. zero defect. D. fail-safe.
A. poka-yoke.
The 3Rs for sustainability are A. reduce, reuse, and recycle. B. reputation, reuse, and recycle. C. reduce, reuse, and reputation. D. reduce, reputation, and recycle.
A. reduce, reuse, and recycle.
What is an electronically guided and controlled cart used to move materials? A. RFID B. AGV C. CNC D. AIS
B. AGV
Which of the following is NOT true regarding corporate social responsibility? A. Companies that practice corporate social responsibility introduce policies that consider environmental, societal, and financial impacts in their decision making. B. Corporate social responsibility only requires firms to focus on environmentally friendly product disposal. C. Corporate social responsibility means "doing what's right" and doing it properly, which can be beneficial to all stakeholders. D. The operations function plays a profound role in meeting corporate social responsibility.
B. Corporate social responsibility only requires firms to focus on environmentally friendly product disposal.
What is the key tool for reducing industrial greenhouse gas emissions in the European Union? A. GHG B. EUETS C. UNFCCC D. ISO
B. EUETS
Which of the following statements is NOT true regarding production technologies? A. Robots are mechanical devices that use electronic impulses to activate motors and switches. B. Flexible manufacturing systems and computer-integrated manufacturing are increasing the distinction between low-volume/high-variety and high-volume/low-variety production. C. Vision systems combine video cameras and computer technology and are often used in inspection roles. D. CNC is machinery with its own computer and memory.
B. Flexible manufacturing systems and computer-integrated manufacturing are increasing the distinction between low-volume/high-variety and high-volume/low-variety production.
What is the first step to build a house of quality? A. Identify how the good/service will satisfy customer wants. B. Identify customer wants. C. Relate customer wants to product hows. D. Determine the desirable technical attributes.
B. Identify customer wants.
When ordering a new zagflatz, customers must choose the style of three major components, each of which has about ten variations. This is an example of A. CAD. B. modular design. C. robust design. D. environmentally friendly design.
B. Modular Design
Which of the following is NOT an approach to ensure a successful transition from development to production? A. Appoint a project manager. B. Segregation of the product development and manufacturing organizations. C. Integration of the product development and manufacturing organizations. D. Use product development teams.
B. Segregation of the product development and manufacturing organizations.
Which of the following is NOT one of the constraints on human resource strategy? A. The location decision may have an impact on the ambient environment in which the employees work. B. The location decision may determine seasonality and stability of employment. C. Technology, equipment, and processes may have implications for safety and job content. D. Layout decisions influence job content.
B. The location decision may determine seasonality and stability of employment.
Which of the following procedures is TRUE regarding the construction of a decision tree for product design? A. Payoffs are entered at the beginning of the appropriate branch. B. The possible alternatives include an alternative of "doing nothing." C. Be sure that all possible alternatives and states of nature (beginning on the right and moving left) are included in the tree. D. To determine the expected value of each course of action, we need to start at the beginning of the tree and work toward the end of the tree.
B. The possible alternatives include an alternative of "doing nothing."
An assembly chart is A. an instruction to make a given quantity of a particular item. B. a schematic showing how the product is assembled. C. an exploded view of the product. D. a listing of the operations necessary to produce the component.
B. a schematic showing how the product is assembled
The "A" on an office relationship chart means A. nothing; it is not used on an office relationship chart. B. absolutely necessary. C. across from. D. absolutely unimportant
B. absolutely necessary.
The difference between selling price and variable cost is called A. the break-even point. B. contribution. C. the bottleneck. D. fixed cost.
B. contribution.
What process uses warehousing to add value to a product through component modification, repair, labeling, and packaging? A. cross-docking B. customizing C. servicescaping D. ambient conditioning
B. customizing
To develop a standard or benchmark, firms need to start with A. forming a benchmark team. B. determining what to benchmark. C. identifying benchmarking partners. D. collecting benchmarking information.
B. determining what to benchmark.
Which of the following regions of a process chain includes the process steps that involve interaction between participants? A. substitute interaction region B. direct interaction region C. surrogate interaction region D. independent processing region
B. direct interaction region
In manufacturing, excess capacity can be used to A. do fewer setups, shorten production runs, and drive down inventory costs. B. do more setups, shorten production runs, and drive down inventory costs. C. do fewer setups, lengthen production runs, and drive down inventory costs. D. do more setups, lengthen production runs, and drive down inventory costs.
B. do more setups, shorten production runs, and drive down inventory costs.
Building morale and meeting staffing requirements that result in an efficient, responsive operation are easier if managers have: A. fewer job classifications and more work-rule constraints. B. fewer job classifications and fewer work-rule constraints. C. more job classifications and fewer work-rule constraints. D. more job classifications and more work-rule constraints.
B. fewer job classifications and fewer work-rule constraints.
The objective of warehouse layout is to A. maximize profitability per square foot of floor space. B. find the optimum trade-off between handling cost and costs associated with warehouse space. C. provides for comfort, safety, and movement of information. D. build teams.
B. find the optimum trade-off between handling cost and costs associated with warehouse space.
What is a drawing of the movement of material, product or people? A. process chart B. flowchart C. AIS D. RFID
B. flowchart
In acceptance sampling, the producer's risk is the risk of having a A. bad lot accepted. B. good lot rejected. C. bad lot rejected. D. good lot accepted.
B. good lot rejected.
Which of the following DOES NOT increase profit by improving quality? A. flexible pricing B. higher warranty costs C. increased productivity D. improved reputation
B. higher warranty costs
Which of the following TQM tools would be best suited for displaying the number of students majoring in each business discipline? A. scatter diagram B. histogram C. cause-and-effect diagram D. flowchart
B. histogram
Which of the following is an external product development strategy? A. enhancements to existing products B. joint ventures C. migrations of existing products D. new internally developed products
B. joint ventures
Which of the following is the Japanese term used to describe continuous improvement efforts? A. poka-yoke B. kaizen C. six sigma D. kanban
B. kaizen
The most aggressive and risky approach to capacity planning is A. attempts to have an average capacity that straddles demand with incremental expansion. B. leading demand with one-step expansion. C. leading demand with incremental expansion. D. lagging demand with incremental expansion.
B. leading demand with one-step expansion.
Which of the following is an example of ambient conditions? A. Best Buy's wide center aisle B. leather chairs at Starbucks C. Walmart's greeter at the door D. Hard Rock cafe's wall of guitars
B. leather chairs at Starbucks
What is an analysis of environmental impacts of products from the design stage through end-of-life? A. product-by-value analysis B. life cycle assessment C. process-chain-network analysis D. value analysis
B. life cycle assessment
A route sheet A. is an instruction to make a given quantity of a particular item. B. lists the operations necessary to produce the component. C. shows in schematic form how a product is assembled. D. is a correction or modification of an engineering drawing or bill of materials.
B. lists the operations necessary to produce the component.
The objective of a human resource strategy is to A. comply with local and national labor laws. B. manage labor and design jobs so people are effectively and efficiently utilized. C. minimize labor costs. D. avoid the possiblity of workers forming a union.
B. manage labor and design jobs so people are effectively and efficiently utilized.
In process-oriented and fixed-position layouts, it is important to minimize the costs of A. skilled labor. B. material handling. C. special-purpose machinery. D. raw material.
B. material handling.
One hundred percent inspection A. is practical and an excellent fit for world-class manufacturers. B. means that every part is checked to see whether or not it is defective. C. catches all of the defective parts. D. means that only good parts will be shipped to a customer.
B. means that every part is checked to see whether or not it is defective.
What term means that both management and employees strive to meet common objectives? A. quality of work life B. mutual commitment C. mutual trust D. human resources
B. mutual commitment
The two popular measures for quantitatively determining if a process is capable are A. process mean and range. B. process capability ratio and process capability index. C. upper specification and lower specification. D. process mean and standard deviation of the process population.
B. process capability ratio and process capability index.
High-volume, low-variety production is best suited for which of the following process strategies? A. mass customization B. product focus C. repetitive focus D. process focus
B. product focus
Which of the following is NOT an example of tangible costs? A. labor B. public transportation facilities C. depreciation D. utilities
B. public transportation facilities
Work cells typically have A. increased direct labor needs due to specialization. B. reduced investment in machinery and equipment. C. increased work-in-process inventory. D. increased raw materials inventory.
B. reduced investment in machinery and equipment.
Which of the following costs is NOT a cost of quality? A. scrap B. research and development C. lost goodwill D. rework
B. research and development
What is a design that can be produced to requirements even with unfavorable conditions in the production process? A. DFMA B. robust design C. CAD D. modular design
B. robust design
Which of the following is a possible option to employ when demand exceeds capacity? A. increase advertising expenditures B. schedule long lead times C. temporarily lay-off workers D. lower prices
B. schedule long lead times
Which of the quadrants in the service process matrix has low labor intensity and low customization? A. service shop B. service factory C. professional service D. mass service
B. service factory
Moving a product from development to production is referred to as A. product definition. B. transition to production. C. product design. D. product development.
B. transition to production
Which of the following is an example of technology's impact on wholesale/retail trade industry? A. automatic teller machines B. bar-coded data C. automatic toll booths D. interactive TV
B. bar-coded data
Cause-and-effect diagrams are also known as A. target specification graphs. B. fish-bone charts. C. flowcharts. D. Pareto charts.
B. fish-bone charts.
Listing products in descending order of their individual dollar contribution to the firm is called A. product life cycle. B. product-by-value analysis. C. product decision. D. brainstorming.
B. product-by-value analysis.
Which of the following is NOT one of the tasks of random stocking systems? A. Maintaining a list of "open" locations. B. Sequencing items to minimize the travel time required to "pick" orders. C. Assigning certain items or classes of items to particular warehouse areas so that the total distance traveled within the warehouse is maximized. D. Maintaining accurate records of existing inventory and its locations.
C. Assigning certain items or classes of items to particular warehouse areas so that the total distance traveled within the warehouse is maximized.
Which of the following is NOT true regarding corporate social responsibility? A. Corporate social responsibility means "doing what's right" and doing it properly, which can be beneficial to all stakeholders. B. The operations function plays a profound role in meeting corporate social responsibility. C. Corporate social responsibility only requires firms to focus on environmentally friendly product disposal. D. Companies that practice corporate social responsibility introduce policies that consider environmental, societal, and financial impacts in their decision making.
C. Corporate social responsibility only requires firms to focus on environmentally friendly product disposal.
Which of the following statements is NOT true? A. Political/legal change brings about new trade agreements, tariffs, and government requirements. B. Understanding the customer is the premier issue in new-product development. C. Economic change brings increasing levels of affluence in the short run but economic cycles and price changes in the long run. D. Sociological and demographic change may appear in such factors as decreasing family size.
C. Economic change brings increasing levels of affluence in the short run but economic cycles and price changes in the long run.
Which of the following is NOT helpful for retail layout? A. Distribute what are known in the trade as "power items" to both sides of an aisle. B. Use prominent locations for high-impulse and high-margin items. C. Keep end-aisle locations empty to facilitate traffic flow. D. Locate the high-draw items around the periphery of the store
C. Keep end-aisle locations empty to facilitate traffic flow.
Which of the following is NOT an example of technology's impact on the financial services industry? A. Internet stock trading B. debit cards C. RFID D. electronic funds transfer
C. RFID
What is the major difference in focus between a location decision in the service sector vs. the manufacturing sector? A. The focus in manufacturing is on revenue maximization, while the focus in service is on cost minimization. B. There is no difference in focus. C. The focus in service is on revenue maximization, while the focus in manufacturing is on cost minimization. D. The focus in manufacturing is on labor, while the focus in service is on raw materials.
C. The focus in service is on revenue maximization, while the focus in manufacturing is on cost minimization.
Which of the following statements is NOT true regarding the importance of the role that an operations manager plays in addressing service quality? A. The operations manager should realize that the customer' expectations are the standard against which the service is judged. B. The tangible component of many services is important. C. The manager may be able to influence the quality of the service but has little control over the customers' expectation. D. Managers must expect exceptions.
C. The manager may be able to influence the quality of the service but has little control over the customers' expectation.
Which of the following statements is NOT true? A. The objective of the product decision is to develop and implement a product strategy that meets the demands of the marketplace with a competitive advantage. B. The product decision includes the selection, definition, and design of products. C. The term "products" refers to tangible goods only. D. Many service firms refer to their offerings as "products."
C. The term "products" refers to tangible goods only.
Which of the following is NOT true regarding layout decisions? A. Layout designs need to be viewed as dynamic because of our increasingly short-life-cycle and mass-customized world. B. An effective layout can help an organization achieve a strategy that supports differentiation, low cost, or response. C. To obtain flexibility in layout, operations managers could keep investments high. D. Layout is one of the key decisions that determines the long-run efficiency of operations.
C. To obtain flexibility in layout, operations managers could keep investments high.
The requirements of work cells do NOT include A. being self-contained, with its own equipment and resources. B. testing at each station in the cell. C. a high level of training and a low level of flexibility. D. identification of families of products.
C. a high level of training and a low level of flexibility.
Which of the following determinants of service quality means approachability and ease of contact? A. security B. courtesy C. access D. tangibles
C. access
A fixed-position layout A. allocates shelf space and responds to customer behavior. B. groups workers, their equipment, and spaces/offices to provide for movement of information. C. addresses the layout requirements of large, bulky, projects such as ships and buildings. D. seeks the best personnel and machine utilization in repetitive or continuous production.
C. addresses the layout requirements of large, bulky, projects such as ships and buildings.
An investment that generates a series of uniform and equal cash amounts is referred as A. future value. B. net present value. C. an annuity. D. cash flow.
C. an annuity.
Cross-docking A. locates stock wherever there is an open location. B. uses the warehouse to add value to the product through component modification, repair, labeling, or packaging. C. avoids placing the materials or supplies in storage by processing them as they are received for shipment. D. combines orders to reduce picking time.
C. avoids placing the materials or supplies in storage by processing them as they are received for shipment.
The visual workplace A. can eliminate value-added activities, and it needs less supervision. B. can eliminate non-value-added activities, and it needs more supervision. C. can eliminate non-value-added activities, and it needs less supervision. D. can eliminate value-added activities, and it needs more supervision.
C. can eliminate non-value-added activities, and it needs less supervision.
The objective of layout strategy is to A. improve the flow of information. B. improve customer interaction. C. develop an effective and efficient layout that will meet the firm's competitive requirements. D. improve employee morale.
C. develop an effective and efficient layout that will meet the firm's competitive requirements.
What does EMV stand for? A. expected maintenance volume B. expected machine valuation C. expected monetary value D. enterprise management valuation
C. expected monetary value
Which of the following is NOT classified as a work-environment factor? A. illumination B. noise and vibration C. feedback D. temperature and humidity
C. feedback
What term is often substituted for "ergonomics?" A. work environment B. time studies C. human factors D. worker economics
C. human factors
Attribute inspection measures A. whether or not the product attributes conform to the inspector's personal tastes. B. such dimensions as weight, speed, size, or strength to see if an item falls within an acceptable range. C. if the product is good or bad. D. if cause and effect are present.
C. if the product is good or bad.
Which of the following is NOT a limitation of job expansion? A. smaller labor pool B. higher capital cost C. lower wage rates D. individual differences
C. lower wage rates
Process capability A. is assured when the process is statistically in control. B. exists when CPK is less than 1.0. C. means that the natural variation of the process must be small enough to produce products that meet the standard. D. exists only in theory; it cannot be measured.
C. means that the natural variation of the process must be small enough to produce products that meet the standard.
Management should foster a work environment based on A. intimidation. B. disloyalty. C. mutual trust and commitment. D. nepotism.
C. mutual trust and commitment.
Low-volume, high-variety production is best suited for which of the following process strategies? A. mass customization B. product focus C. process focus D. repetitive focus
C. process focus
What is the fundamental rethinking of business processes to bring about dramatic improvements in performance? A. process design B. process analysis C. process redesign D. process strategy
C. process redesign
Which of the quadrants in the service process matrix has high labor intensity and high customization? A. service shop B. mass service C. professional service D. service factory
C. professional service
Which of the following terms describes the physical surroundings in which a service takes place, and how they affect customers and employees? A. service decor B. landscape C. servicescape D. ambience
C. servicescape
What is a means of finding the point, in dollars and units, at which costs equal revenues? A. zero-sum analysis B. capacity analysis C. break-even analysis D. bottleneck analysis
C. break-even analysis
Which of the following methods is a mathematical technique used for finding the best location for a single distribution point that services several stores or areas? A. transportation model B. factor-rating method C. center-of-gravity method D. locational cost-volume analysis
C. center-of-gravity method
Managing quality helps build successful strategies of A. differentiation, low cost and service. B. differentiation, time and response. C. differentiation, low cost and response. D. differentiation, time and service.
C. differentiation, low cost and response.
The visual workplace uses A. high-cost visual devices. B. high-cost braille devices. C. low-cost visual devices. D. low-cost braille devices.
C. low-cost visual devices.
Which of the following approaches is also called a "job shop?" A. fixed-position layout B. product-oriented layout C. process-oriented layout D. work-cell layout
C. process-oriented layout
Group technology identifies components by a coding scheme that specifies the A. shape and type of processing. B. size and shape. C. size, shape, and type of processing. D. size and type of processing.
C. size, shape, and type of processing.
Which of the following statements is NOT true regarding a bill of material (BOM)? A. A BOM lists the hierarchy of components and their description. B. A BOM lists the quantity of each coponent required to make one unit of a product. C. In the food-service industry, BOMs manifest themselves in portion-control standards. D. A BOM cannot be referenced on other bills of material.
D. A BOM cannot be referenced on other bills of material.
Which of the following statements is NOT true about the process capability ratio? A. The process capability ratio is a ratio for determining whether a process meets design specifications. B. The process capability ratio is computed as the difference of the upper and lower specification limits divided by six standard deviations. C. The process capability ratio is a ratio of the specification to the process variation. D. A capable process has a process capability ratio less than one.
D. A capable process has a process capability ratio less than one.
Which is the best statement regarding an operating characteristic curve? A. As the lot tolerance percent defective decreases, the consumer's risk also decreases. B. As the fraction defective decreases, the probability of accepting the lot also decreases. C. As the fraction defective increases, the probability of accepting the lot also increases. D. As the AQL decreases, the producer's risk also decreases.
D. As the AQL decreases, the producer's risk also decreases.
Which of the following statements is NOT true regarding decision trees? A. A decision tree is a great tool for thinking through a problem. B. Decision trees are particularly helpful when there are a series of decisions and various outcomes that lead to subsequent decisions followed by other outcomes. C. Decision trees can be used for other management problems besides product design. D. Decision trees should only be used for new-product decisions when no uncertainty is present.
D. Decision trees should only be used for new-product decisions when no uncertainty is present.
Which of the following statements is NOT true? A. Understanding the customer is the premier issue in new-product development. B. Sociological and demographic change may appear in such factors as decreasing family size. C. Political/legal change brings about new trade agreements, tariffs, and government requirements. D. Economic change brings increasing levels of affluence in the short run but economic cycles and price changes in the long run.
D. Economic change brings increasing levels of affluence in the short run but economic cycles and price changes in the long run.
What is a system that stores and displays information that can be linked to a geographic location? A. ASRS B. RFID C. CIM D. GIS
D. GIS
Which of the following statements is NOT true? A. Flextime allow employees, within limits, to determine their own schedules. B. Following demand exactly keeps direct labor costs tied to production but incurs other costs. C. Holding employment levels constant maintains a trained workforce and keeps hiring, layoff, and unemployment costs to minimum. D. Implementing a flexible workweek often moves employees to part-time status.
D. Implementing a flexible workweek often moves employees to part-time status.
Which of the following statements is TRUE regarding the approach Japanese organizations use for product development? A. The Japanese approach to product development is an organization with distinct departments. B. Japanese organizations use teams to develop products. C. Japanese organizations assign a product manager to "champion" the product. D. Japanese organizations bypass the team issue by not subdividing organizations into research and development, engineering, production, and so forth.
D. Japanese organizations bypass the team issue by not subdividing organizations into research and development, engineering, production, and so forth
Which of the following statements is NOT true regarding joint ventures? A. Joint ventures are firms establishing joint ownership to pursue new products or markets. B. Joint ventures are usually between just two firms. C. Ownership can be 50-50, or one owner can assume a larger portion to ensure tighter control. D. Joint ventures are more likely to work when the risks are unknown.
D. Joint ventures are more likely to work when the risks are unknown
What is a means of determining the discounted value of a series of future cash receipts? A. future value B. cash flow C. variable cost D. net present value
D. Net Present Value
Which of the following statements is NOT true regarding location decisions? A. Location decisions to support a low-cost strategy require particularly careful consideration. B. Location often has the power to make or break a company's business strategy. C. Location decisions are important because location has a major impact on the overall risk and profit of the company. D. Once management is committed to a specific location, many costs become relatively easy to reduce.
D. Once management is committed to a specific location, many costs become relatively easy to reduce
Which of the following statements is NOT true about the ethics in the workplace? A. Management's role is to educate employees; specify the necessary equipment, work rules, and work environment; and then enforce those requirements, even when employees think it is not necessary to wear safety equipment. B. The issues of fairness, equity, and ethics in the workplace are pervasive. C. Human resource and legal departments are available for help and guidance through the labyrinth of laws and regulations. D. Operations managers are responsible for ensuring safe working conditions, while human resource managers ensure equal opportunity.
D. Operations managers are responsible for ensuring safe working conditions, while human resource managers ensure equal opportunity.
A c-chart is based on the A. normal distribution. B. Erlang distribution. C. binomial distribution. D. Poisson distribution.
D. Poisson distribution.
Which of the following statements is NOT true about sustainability? A. Sustainability is often associated with corporate social responsibility. B. Sustainability refers to meeting the needs of the present without compromising the ability of future generations to meet their needs. C. Green manufacturing is part of sustainability. D. Sustainability focuses only on environmental resources.
D. Sustainability focuses only on environmental resources.
Which of the following is NOT one of the reasons that the techniques for addressing fixed-position layout are complicated? A. There is limited space at virtually all sites. B. Different items become critical as the project develops. C. At different stages of a project, different materials are needed. D. The volume of materials needed is constant.
D. The volume of materials needed is constant.
Which of the following would NOT be produced or offered using a fixed-position layout? A. a hospital operating room B. a highway C. a ship D. a hospital emergency room
D. a hospital emergency room
Inspections should NOT take place A. at your supplier's plant while the supplier is producing. B. at your facility upon receipt of goods from your supplier. C. during the step-by-step production process. D. after costly or irreversible processes.
D. after costly or irreversible processes.
What are cooperative agreements that allow firms to remain independent, but pursue strategies consistent with their individual missions? A. acquisitions B. joint ventures C. enhancements and migration D. alliances
D. alliances
Which service strategy describes separating services that may lend themselves to some type of automation? A. modules B. focus C. separation D. automation
D. automation
What term refers to the location of competing companies near each other? A. neighboring B. centralizing C. battling D. clustering
D. clustering
Resources that are held by the public are said to be resources in the A. sharing. B. domain. C. joint. D. common.
D. common.
Self-checkout at a grocery store is an example of A. complete automation. B. customer participation in service design. C. delayed customization. D. customer participation in service delivery.
D. customer participation in service delivery.
Which type of control chart should be used when it is possible to have more than one mistake per item? A. x-bar chart B. R-chart C. p-chart D. c-chart
D. c-chart
A process-oriented layout A. deals with high-volume, low-variety production. B. addresses the layout requirements of large, bulky projects such as ships and buildings. C. seeks the best personnel and machine utilization in repetitive or continuous production. D. deals with low-volume, high-variety production.
D. deals with low-volume, high-variety production.
Operation of a hair salon is an example of A. modularization. B. automation. C. an assembly line. D. delayed customization.
D. delayed customization.
Which among the following has the highest level of job expansion along the job design continuum? A. specialization B. enrichment C. enlargement D. empowerment
D. empowerment
The five core elements of ISO 14000 are A. environmental management, auditing, performance evaluation, labeling, and value analysis. B. environmental management, planning, performance evaluation, labeling, and life cycle assessment. C. environmental management, planning, performance evaluation, labeling, and value analysis. D. environmental management, auditing, performance evaluation, labeling, and life cycle assessment.
D. environmental management, auditing, performance evaluation, labeling, and life cycle assessment.
What is the ability to respond with little penalty in time, cost, or customer value? A. postponement B. mass customization C. repetitive process D. flexibility
D. flexibility
Job enrichment A. means the same thing as job rotation. B. is a concept promoted by Adam Smith and Charles Babbage in books they wrote. C. includes job enlargement. D. includes some of the planning and control necessary for job accomplishment.
D. includes some of the planning and control necessary for job accomplishment.
What are groups or batches of parts processed together? A. customized lots B. work cells C. cross-docking jobs D. job lots
D. job lots
A fast food restaurant is an example of A. high customization and low degree of labor. B. high customization and high degree of labor. C. low customization and high degree of labor. D. low customization and low degree of labor.
D. low customization and low degree of labor.
Generally the goal of assembly line balancing is to A. minimize the efficiency of the line. B. determine the maximum time that an item is allowed at a workstation. C. maximize the number of workstations. D. minimize imbalance between machines or personnel while meeting a required output from the line.
D. minimize imbalance between machines or personnel while meeting a required output from the line.
Which of the following is NOT one of the advantages of ISO 14000? A. good systematic approach to pollution prevention through minimization of ecological impact of products and activities B. compliance with regulatory requirements and opportunities for competitive advantage C. reduction in the need for multiple audits D. positive public image and increased exposure to liability
D. positive public image and increased exposure to liability
Which of the following determinants of service quality means the firm performs the service right the first time and that the firm honors its promises? A. responsiveness B. credibility C. competence D. reliability
D. reliability
Which of the following is NOT an external failure cost? A. costs to society B. returned goods C. lost goodwill D. scrap
D. scrap
What is training and empowering frontline employees to solve a problem immediately? A. courtesy B. employee empowerment C. quality circle D. service recovery
D. service recovery
Which of the following is a requirement to be able to compute expected monetary value? A. each decision alternative needs at least two states of nature B. each state of nature is equally likely to occur C. the probability of each decision alternative is known D. the probability of each state of nature is known
D. the probability of each state of nature is known
As an example of ergonomics, controls and instrumentation in race cars have migrated to A. the floor. B. the windshield. C. the door. D. the steering wheel.
D. the steering wheel.
The American Society for Quality defines quality as A. how well a product fits patterns of consumer preferences. B. the degree of excellence at an acceptable price and the control of variability at an acceptable cost. C. even though it cannot be defined, you know what it is. D. the totality of features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs.
D. the totality of features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs.
Defining a product means A. to identify components by a coding scheme that specifies size, shape, and the type of processing. B. to decide to produce a component or service or purchase from an outside source. C. to list the hiearchy of components, their description, and the quantity of each required to make one unit of a product. D. to define the new good's or service's function.
D. to define the new good's or service's function.
Which of the following techniques might a service or retail organization use to make a location decision? A. locational cost-volume analysis B. crossover charts C. transportation method D. traffic counts
D. traffic counts
What are the three Ps in the triple bottom line of the three Ps? A. people, product, and profit B. product, planet, and profit C. people, planet, and product D. people, planet, and profit
D. people, planet, and profit
What is analysis that focuses on the ways in which processes can be designed to optimize interaction between firms and their customers? A. value analysis B. value engineering C. product-by-value analysis D. process-chain-network analysis
D. process-chain-network analysis
Workspace can inspire informal and productive encounters if it balances three physical and social aspects: A. product, privacy, and permission. B. product, people, and permission. C. proximity, people, and permission. D. proximity, privacy, and permission.
D. proximity, privacy, and permission
Which of the following is NOT one of the five elements for each city that geographic information systems use to analyze location decision factors? A. cultural and entertainment centers B. residential areas C. transportation options D. rivers, mountains, lakes, and forests
D. rivers, mountains, lakes, and forests
Which of the following arranges machinery and equipment to focus on production of a single product or group of related products? A. fixed-position layout B. process-oriented layout C. product-oriented layout D. work-cell layout
D. work-cell layout
To provide better access and possibly reduce the number of workers needed, work cells may be designed in the shape of what letter of the alphabet? D V O U
U
The difference between job enrichment and job enlargement is that A. enlarged jobs contain a larger number of similar tasks, while enriched jobs include some of the planning and control necessary for job accomplishment. B. enriched jobs enable an employee to do a number of boring jobs instead of just one. C. enriched jobs contain a larger number of similar tasks, while enlarged jobs include some of the planning and control necessary for job accomplishment. D. These terms mean the same thing.
enlarged jobs contain a larger number of similar tasks, while enriched jobs include some of the planning and control necessary for job accomplishment.
Labor planning is determining staffing policies that deal with all EXCEPT which of the following? A. quality of work life B. employment stability C. work rules D. work schedules
quality of work life
Ergonomics is the study of A. ergos. B. the human interface with the environment and machines. C. work. D. the management of technology.
the human interface with the environment and machines
