What issue must management deal with when implementing quality into daily operations?
Ensuring commitment to quality from all levels of the organization
Which approach leads to process improvement?
Deming Cycle
Which of the following is one of the eight principles of a quality management system?
involvement, customer focused, leadership, process approach, system approach to management, continual improvement, Factual approach, beneficial supplier relations
A car manufacturer tests the first 1,000 cars coming off the assembly line to see if their new anti-lock braking system works correctly. Use the typical values for control limits.

What percentage would be an expected outcome in a sample mean that is within ±3 standard deviations of the distribution mean?
To what category of quality costs do costs of problem solving, scrap, and waste belong?
Internal failure
At what point should quality improvement expenditures cease?
Costs of quality improvement exceed production costs
A manager is concerned about process variation as it pertains to employees' use of time.

Which loss in this situation results from excessive process variation?
Why was the International Organization for Standardization (ISO) created?
To promote the development of standardization and related activities in the world with a view to facilitating the international exchange of goods and services
What principles are used to create the standards for the International Organization for Standardization (ISO)?
Employee focus, leadership, involvement of customers, and continual improvement
Which statement correctly lists the practices employed by the International Organization for Standardization (ISO)?
Quality document review, on-site audits, interviews, and recertification
What steps are required for a company to receive International Organization for Standardization (ISO) certification?
Provide quality systems documentations for assessment and have the company's quality systems and manufacturing audited
What are three characteristics of a customer-oriented business?
Collects information on customer expectations, disseminates the information widely within the company, and uses the information to improve products or services
What is one of the three key philosophies of Total Quality Management (TQM)?
Continuous improvement
What goals are appropriate for a process improvement team?
The team will have a well-defined purpose, set goals, a definite plan of action, top management team members, and use a management approach.
What steps should a company take to create a process improvement team?
Focus on the processes, recognize external customers, involve and educate management, increase hierarchy, and use quality councils
Which of the following is an individual team member's responsibility?
Have technical knowledge of the problem to be solved
What do the blue areas represent in the graphic below?
Standard deviation
What do flowcharts help companies to do?
Identify possible decision points or process points where problems occur
What kind of chart would a company use to see the distribution of observed values?
What is the purpose of a run chart?
Identifying trends or other patterns that may be occurring over time
A manufacturer wants to record the number of bad headlights in the cars coming off an assembly line.

What type of chart or diagram is appropriate for the task?
Control chart
Which of the following would be scrutinized during a supplier audit?
Management style and process improvement policies
What type of business would select a location close to its source of raw materials
Mining operation
What is the sequence of steps for selecting a production site?
Decide on criteria for evaluating locations, identify important factors, develop location alternatives, evaluate alternatives, and make a selection
What type of software is used for evaluating potential facility locations?
Geographical information system
What factors should be considered when designing warehouse and storage layouts?
Frequency of order, number and width of aisles, and rail and/or truck loading and unloading
What tool might capacity planners use when designing service systems
Waiting-line analysis
What does the scientific approach to management indicate work systems should be designed emphasize?
A manager can purchase one, two, three, or four machines. Fixed costs, potential volumes, and break-even points are as follows:

Machines Total Fixed Costs Range of Output Break-even Point
1 2400 0 - 200 120
2 6200 201 - 500 310
3 9600 501 - 750 480
4 15000 751 - 1000 750

The projected range of annual demand is 220-690.

How many machines should the manager purchase?
What project planning tool enables a manager to schedule project activities and then monitor start and finish times for each activity but does not show the relationships among activities?
Gantt chart
What operations management tactic does the map depict?
How do inventories influence aggregate planning?
Can be built up when production exceeds demand and drawn down when demand exceeds production
What combination of tactics would an aggregate planner use as part of a level capacity strategy
Inventories, overtime, part-time workers, subcontracting, and back orders
What economic factor applies to aggregate planning?
Expected demand
How does carrying cost affect inventory management?
Large carrying costs mean the company is holding a lot of inventory
What economic order quantity (EOQ) model identifies the order size that will minimize the sum of the annual costs of holding and ordering inventory?
Economic production quantity model
A firm that produces wood shutters has received two orders: one for 100 shutters due for delivery at the start of week 4 and one for 150 shutters due for delivery at the start of week 8.

What would a master schedule for these orders look like?
Week number: 1 2 3 4 5 6 7 8
Quantity: 100 150
What issue influences scheduling in intermediate volume systems?
Run-size of jobs
Why is it important to carefully move through the step-by-step process of problem solving?
Serves as the focal point of the team's efforts
A task force has been formed to find a solution to the problem of low customer satisfaction. The task force distributes meeting minutes to the entire organization every week.

What challenge to problem solving implementation is overcome by distributing the minutes of the task force meetings?
Informing organizational members how the solution was developed
What nonverbal behavior is associated with the assertive communication style
Maintaining good eye contact
What is the trade-off when complexity is compromised in a problem response
What problem-solving strategy should a manager use to overcome the barrier of competition?
Team orientation without acknowledging each member's value
A staff member addresses problem-solving situations by first describing the problem and its effects, then introducing a solution and describing its benefits. This allows the staff member to gain the cooperation of others involved in the decision-making process.

What type of problem solver is this staff member?
What problem-solving skill is most important when solving complex and lengthy problems
What condition encourages creative thinking
Toleration of failure
What can enhance the self-esteem and confidence of creative thinkers
Challenging their minds
Which of the following is characteristic of the nominal group technique for making decisions?
The brainstorming and evaluation phases are separated.
What is an advantage of group decision making?
What group decision-making process would be most efficient for a company that employs a large number of off-site personnel?
Nominal group technique
What is a trait of the directive decision-making style?
Focuses on the short term
A manager likes to consider alternatives and tends to scrutinize every element of a situation.

What decision-making style will this manager most likely use?