Test 3 BUSI 411 (Chap 9-12)
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
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
A
In doing "aggregate planning" for a firm producing paint, the aggregate planners would most likely deal with: A. just gallons of paint, without concern for the different colors and sizes B. gallons of paint, but be concerned with the different colors to be produced C. gallons, quarts, pints, and all the different sizes to be produced D. all the different sizes and all the different colors by size E. none of the above
A
Linear programming to produce an aggregate plan: A. will produce the best plan if accurate inputs are used B. is the most widely used technique C. (a) and (b) D. will produce a plan that may not be the best plan E. requires an excel spread sheet
A
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
A
One option for altering the availability of capacity is: A. use of overtime or slack time B. pricing C. promotion D. backorders E. none of the above
A
One option for altering the pattern of demand is: A. backorders B. overtime C. part-time workers D. inventories E. subcontracting
A
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
A
Uncommitted inventory is called ... A. Available-to-promise inventory B. Free inventory C. Safety stock D. Lead time inventory E. Obsolete inventory
A
_______ variation is a variation whose cause can be identified. A. Assignable B. Controllable C. Random D. Statistical E. Theoretical
A
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
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
Aggregate planning is capacity planning for: A. the long range B. the intermediate range C. the short range D. typically one to three months E. typically one or more years
B
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
Essentially, the output of aggregate planning is the: A. marketing plan B. production plan C. rough-cut capacity plan D. assignment plan E. material requirements plan
B
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
B
If customer satisfaction doesn't always lead to customer loyalty, firms may need to focus additional effort on __________ strategies. A. remediation B. retention C. rework D. repatriation E. reprocessing
B
In a service setting, the aggregate plan results in a time-phased projection of __________ requirements. A. customer B. staff C. inventory D. subcontracting E. outsourcing
B
In practice, the more commonly used techniques for aggregate planning are: A. mathematical techniques B. informal trial-and-error techniques C. (a) and (b) about equally D. simulation models E. linear programming optimization
B
In using the "chase strategy" variations in demand could be met by: A. varying output during regular time without changing employment levels B. varying output during regular time by changing employment levels C. (a) and (b) D. varying inventory levels E. price increases
B
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
B
Moving from the aggregate plan to a master production schedule requires: A. rough cut capacity planning B. disaggregation C. sub-optimization D. strategy formulation E. chase strategie
B
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
B
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
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
B
The main disadvantage(s) of informal techniques used for aggregate planning is(are): A. they are expensive to do B. they may not result in the best plan C. they take a long time to do D. they require use of a computer E. lack of formal education of the planners
B
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
B
Which of the following raises quality risks? A. currency fluctuations B. outsourcing to less-developed countries C. empowering employees D. benchmarking E. streamlining the supplier base
B
Which term is most closely associated with the term disaggregation? A. subcontracting B. master schedule C. diversity D. varying inventory levels E. firing and laying off
B
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
C
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
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
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
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
C
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
A time-ordered plot of sample statistics is called a(n) ______ chart. A. Statistical B. Inspection C. Control D. SIMO E. Limit
C
A tool that depicts process variation graphically is a(n) _________. A. Affinity diagram B. Check list C. Control Chart D. Flow Chart E. Relationship diagram
C
Aggregate planners seek to match supply and demand: A. at minimum overall cost B. by staying within company policy C. (a) and (b) D. keeping inventories at a minimum E. all of the above
C
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
C
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
C
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
Loss of business, liability, productivity and costs are consequences of _______. A. Labor Unions B. Globalization C. Poor Quality D. Robotics E. Micro-factories
C
One area to which aggregate planning decisions relate is: A. job sequencing B. customer order quantities C. inventory levels D. location E. layout
C
That portion of projected inventory which enables marketing to make realistic commitments about delivery dates for new orders is: A. beginning inventory B. safety stock inventory C. available-to-promise inventory D. high margin inventory E. none of the above
C
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. benchmarking D. copycatting E. industrial espionage
C
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
C
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
C
When the opportunity cost of lost revenue is relatively high, _________ become(s) relatively more attractive. A. Layoffs B. Backorders C. Excess capacity D. Disaggregation E. Both B and C
C
Which isn't a cost of quality? A. Prevention cost B. External failure C. Extended Service Contracts D. Internal failure E. Appraisal costs
C
Which of the following differs between aggregate planning in services and aggregate planning in manufacturing? A. uncertainty in demand B. costs of storing inventory C. the perishability of capacity D. cost of overtime E. cost of hiring
C
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
Which of the following most closely describes dependent demand? A. demand generated by suppliers B. estimates of demand using regression analysis of independent variables C. derived demand D. demands placed on suppliers by their customers E. net material requirements
C
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
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
D
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
D
A tool that is not used for quality management is ________. A. Flowchart B. Histogram C. Perato Analysis D. Redesign E. Check sheets
D
As regards quality risks, which of the following would be least likely to involve outsourcing to less-developed countries? A. rubber processing B. repetitive assembly C. packaging D. pharmaceuticals E. steel manufacturing
D
Before a dimension of quality can be made operationally useful, it must be restated in some ___________ form. A. qualitative B. manipulative C. certifiable D. measurable E. marketable
D
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
D
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
D
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
ISO 9000 standards do not have a requirement for ________. A. resource B. remedial C. systems D. training E. management
D
In order to use the "level capacity strategy," variations in demand are met by: A. varying output during regular time without changing employment levels B. varying output during regular time by changing employment levels C. (a) and (b) D. using combination of inventories, overtime, part time, and back orders E. price adjustments
D
One option for altering the availability of manufacturing capacity is: A. pricing B. promotion C. backorders D. inventories E. none of the above apply to manufacturing capacity
D
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
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
D
Simulation to produce an aggregate plan: A. will produce the best plan B. is the most widely used technique C. both (a) and (b) D. will produce a plan that may not be the best plan E. requires a minimum of 4 iterations to be accurate
D
TQM stands for: A. Taguchie Quality Methods B. Tactical Quality Measurements C. The Quality Matrix D. Total Quality Management E. Total Quantity Measurement
D
The direct result of disaggregating the aggregate plan is the: A. marketing plan B. production plan C. rough-cut capacity plan D. master schedule E. material requirements plan
D
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
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
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
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
D
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
D
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
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
D
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
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
Which of the following best describes aggregate planning? A. the link between intermediate term planning and short term operating decisions B. a collection of objective planning tools C. make or buy decisions D. an attempt to respond to predicted demand within the constraints set by product, process and location decisions E. manpower planning
D
Which of the following is an input to aggregate planning? A. beginning inventory B. forecasts for each period of the schedule C. customer orders D. all of the above E. quantity discounts
D
Which of the following is not a basic option for altering the availability of capacity in a service environment? A. overtime B. hiring/layoff C. part time D. inventory E. All of these are basic capacity options.
D
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.
D
Which of the following is not an input to the aggregate planning process? A. resources available B. demand forecast C. policies on work force changes D. master production schedules E. cost information
D
Which one of the following is not a basic option for altering demand? A. promotion B. backordering C. pricing D. subcontracting E. All are demand options
D
Which one of the following would not be considered a decision option for purposes of aggregate planning? A. inventory levels B. manpower levels C. pricing D. production costs E. promotion
D
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
Accommodating peak demands and effectively using labor resources during periods of low demand would be the goal of aggregate planners in ... A. Manufacturing B. Military C. Archeology D. Libraries E. Financial Services
E
Aggregate planners attempt to balance: A. demand and inventories B. demand and costs C. capacity and inventories D. capacity and costs E. capacity and demand
E
Aggregate planning requires which of the following information? A. a forecast of expected demand B. current levels of inventory C. (a) and (b) D. policies regarding employment levels E. all of the above
E
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
E
In order for TQM to be successful, it is essential that most of the organization be _________. A. members of quality circles B. under contract C. ISO certified D. trained in error detection techniques E. in agreement with the philosophy and its goals
E
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
E
Proactive and Reactive aggregate planning strategies are best associated with: A. Input and Output B. Make and Buy C. Quantitative and Qualitative D. Exact and Approximate E. Demand and Capacity options
E
The more __________ demand is, the more the aggregate plan will tend to reflect the ____________ strategy. A. Stable; Level B. Aggregated; Outsourcing C. Variable; Chase D. Complex; Uncommitted E. Both A and C
E
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
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
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
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
Which of the following steps is necessary to ensure that a master schedule is valid? A. worker scheduling B. order promising C. inventory counting D. order booking E. rough-cut capacity planning
E
Which of the following would not be a strategy associated with adjusting aggregate capacity to meet expected demand? A. subcontract B. vary the size of the workforce C. vary the intensity of workforce utilization D. allow inventory levels to vary E. use backorders
E
