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MQM 227 Exam 1

Terms in this set (98)

False
The supply chain processes discussed in the class are planning, sourcing, delivering, and returning.
False
Returning involves processes for receiving worn-out, defective, and excess products back from customers but does not involve support for customers who have problems with the product.
True
Services are intangible processes that cannot be weighed or measured.
True
"Product-service bundling" refers to a company building service activities into its product offerings for its customers.
False
The term "electronic commerce" refers to the buying and selling of electronic products and devices.
False
"Business analytics" involves the analysis of data through a unique combination of linear programming, game theory, and queuing theory to better solve business problems.
True
During a recession, efficient firms often have an opportunity to increase market share while maintaining profitability.
All managers should understand the basic principles that guide the design of transformation processes.
One reason for studying operations and supply chain management (OSCM) is which of the following?
Data storage systems
Which of the following are defined as core goods?
Selecting
Which of the following is not a way that operations and supply processes are categorized?
Earnings per chair
Which of the following is not a measure of operations and supply chain management efficiency used by Wall Street?
True
Within a sustainability framework, the economic dimension of the triple bottom line concept goes beyond just profit for the firm but also provides lasting economic benefit to society.
Management acumen
Which of the following is not a major strategic operational competitive dimension that forms a company's competitive position?

Cost or price
Delivery speed
Delivery reliability
Management acumen
Coping with changes in demand
Technical liaison
When developing an operations and supply chain strategy, which of the following is an important product-specific criterion to consider?
Straddling
When a company seeks to match the benefits of a successful position while maintaining its existing position in offering customers a variety of differing services, what is this process called?
Output/materials
Which of the following is a partial measure of productivity?
Output/inputs
Which of the following is a total measure of productivity?
Partial measure and Multifactor measure
If all you knew about a production system was that total daily output was 400 units and the total labor necessary to produce the 400 units was 350 hours, and the total materials used were 425 units, what kind of productivity measure could you use to compute productivity?
1.000
The total output from a production system in one day is 900 units and the total labor necessary to produce the 900 units is 900 hours. Using the appropriate productivity measure, what is the resulting productivity ratio?
Product life cycles are shorter
A reason that firms must develop more new products than ever is which of the following?
Starts with studying and listening to customers
Quality function deployment (QFD):
Responsiveness to customer needs
What dimension of competitiveness does time-to-market performance in product design and process selection affect?
Go/no-go milestones
Economic analysis of product development projects is useful in which of the following circumstances?
Financial analysis brings discipline and control to the product development process.
Advocates of financial modeling of product design projects argue that:
Platform products
Consumer electronics is an example of a product developed in which variant of the generic product development process?
Simplification of the product by reducing the number of separate parts
Design for manufacturing and assembly delivers product improvements by emphasizing which of the following?
Customized products
Similarity of projects allows for a streamlined and highly structured development process in which variant of the generic product development process?
Simplify products and processes
The purpose of value analysis/value engineering (VA/VE) is to:
Separate development teams working at once
Which of the following is a characteristic of concurrent engineering?
Work packages
A project can be subdivided into which of the following?
A definition of the hierarchy of project tasks, subtasks, and work packages
What is a work breakdown structure?
A team member can work on several projects
Some of the advantages of a functional project where the project is housed in a functional division include which of the following?
Matrix project
You have just been assigned to oversee a series of projects. Functional areas will loan you personnel for each project, and separate project managers will be responsible for separate projects. These project managers will report to you. Which project management structure is being used?
It specifies the relationships in the CPM network of activities.
A listing of immediate predecessor activities is important information in a CPM analysis for which of the following reasons?
Time
In a Gantt chart, the horizontal axis is usually which of the following?
Lines of communication are shortened.
An advantage of a pure project where self-contained teams work full time on a project is which of the following?
Pure project
You have been placed in charge of a large project. Shortened communication lines are required to ensure quick resolution of problems as they arise. You recognize that the project is going to take a lot of time and require a lot of team pride, motivation, and commitment by all members. Which project management structure should you use in this situation?
False
The time needed to respond to a customer's order is called the customer response time.
True
An example of an assemble-to-order firm is Dell Computer.
False
The essential issue in satisfying customers in the make-to-stock environment is to balance the cost of the finished item against the willingness of the consumer to pay for it.
True
A high-level map or diagram of a supply chain process can be useful to understand how material flows and where inventory is held.
Fabrication
Which of the following is not considered a major work flow structure?

Work center
Project
Assembly line
Fabrication
Continuous flow
1,000 units
Assume a fixed cost for a process of $15,000. The variable cost to produce each unit of product is $10, and the selling price for the finished product is $25. Which of the following is the number of units that has to be produced and sold to break even?
The company's total margin will be less than its investment.
You are hired as a consultant to decide if your client should purchase a new, highly specialized piece of equipment. The product to be produced by this equipment is forecast to have a total worldwide demand of 15,000 units over the entire product life. The initial investment to acquire and install the equipment is $256,000. The variable cost to produce each unit will be $15, and the selling price for the finished product will be $30. Which of the following best describes the situation the firm is facing?
Assembly line
Which of the following basic types of process structures is one in which equipment or work processes are arranged according to the progressive steps by which the product is made?
Emergency exits
The placement of which of the following is not determined by production process organization decisions?
Product-process matrix
Which of the following is not a basic type of process structure?

Product-process matrix
Work center
Manufacturing cell
Assembly line
Continuous process
Work center
Which of the following basic types of process structures is one in which similar equipment or functions are grouped together?
The size and bulk of the product
A difference between project and continuous flow categories of process flow structures is which of the following?
Services cannot be inventoried
Which of the following is a characteristic that can be used to guide the design of service systems?
Customer contact
Which of the following refers to the physical presence of the customer in a service system?
Service operations can be protected by patents; manufacturing operations cannot.
Which one of the following is not a major factor distinguishing service design and development from manufacturing design and development?
Internet
Which of the following is an alternative possible service encounter included in the service-system design matrix?
Low sales opportunity
In the service-system design matrix, a mail contact service encounter is expected to have which of the following?
High production efficiency
In the service-system design matrix, an Internet and on-site technology service encounter is expected to have which of the following?
Task
There are many applications of poka-yokes in service organizations. Which of the following is one of the three-T's used to classify poka-yokes?
Self service approach
One of the three approaches to delivering on-site service is _____
McDonald's corporation
Which company is mentioned in the text as a pioneering of the production line approach to delivering on-site service?
Physician practice
Which of the following is considered a high-contact service operation?
The department faculty in line at the copier
Which of the following is an example of a finite population in a queuing system?
Emergencies first
Which of the following queue disciplines is discussed in the textbook?
Multichannel, single phase
Buying a ticket for a college football game where there are multiple windows at which to buy the ticket features which type of queuing system line structure?
Single channel, single phase
Getting an autograph from a famous person might involve standing in which type of queuing line structure?
Multichannel, single phase
Standing in line to buy a ticket for a movie where there are multiple windows at which to buy tickets is which type of queuing system line structure?
0.2 hour
For an infinite queuing situation, if the arrival rate for loading trucks is 5 trucks per hour, what is the mean time between arrivals?
True
The central problem in virtually every waiting line situation is a decision balancing the costs of adding services with the costs of waiting.
True
The demand on a hospital's emergency medical services is considered an uncontrollable arrival pattern of the calling population.
True
Inventory turn is a better measure than the total value of inventory for comparative purposes because it is a relative measure.
Average time between completions of successive units
Which of the following best describes the term "cycle time"?
Diamond
A process flowchart uses which of the following symbols to represent a decision point in a flow diagram?
Rectangle
A process flowchart uses which of the following symbols to represent tasks or operations in a flow diagram?
Starving
Which of the following production process terms best describes the situation when activities in a stage of production must stop because there is no work?
Flow time
Which of the following terms describes the time a unit spends actually being worked on together with the time spent waiting in a queue?
Throughput rate x Flow time
According to Little's law, which of the following can be used to estimate inventory?
Change the sequence of activities
To reduce process throughput time, you might try which of the following actions?
False
A bottleneck occurs when a stage in a production process is starving.
False
Make-to-order production processes are well suited for high-volume production of a standardized product.
Customer focus
The philosophical leaders of the quality movement, Philip Crosby, W. Edwards Deming, and Joseph M. Juran, had the same general message about what it took to achieve outstanding quality. Which of the following was part of that message?
Define
A flowchart as part of a Six-Sigma quality improvement process might be found in which DMAIC category?
Improve
An opportunity flow diagram as part of a Six-Sigma quality improvement process might be found in which DMAIC category?
Pareto charts
Which of the following is an analytical tool used in 'Measure' phase of DMAIC Six-Sigma quality improvement programs?
Providing feedback to applicants by examiners
The Malcolm Baldrige Award selection process helps improve quality and productivity by which of the following means?
State highway patrol organizations
Which of the following are not eligible to be considered for the Baldrige Award?
Small businesses
Health care organizations
Educational institutions
State highway patrol organizations
Nuclear power plants
Analysis and remember management
Applicants for the Baldrige Award for total quality management must submit an application of up to 50 pages that details the processes and results of their activities under seven major categories. Which of the following is one of those categories?
Reliability
The dimension of design quality that concerns the consistency of performance over time or the probability of failing is which of the following?
Features
Which of the following is a dimension of design quality?
Failures are caused
Which of the following are basic assumptions that justify an analysis of the costs of quality?
Internal failure costs
Which of the following is the cost of quality classification for costs such as scrap, rework, or repair?
External failure costs
Which of the following is the cost of quality classification for costs such as defects that pass through the system (e.g., customer warranty replacements, loss of customer or goodwill, handling complaints, and product repair)?
The mean of the production process has shifted to the left of the design limits.
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?
The mean of the production process has shifted to the right of the design limits.
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 single plot falls above or below the control limits
Quality control charts usually have a central line and upper and lower control limit lines. Which of the following is a reason that the process being monitored with the chart should be investigated?
Defective electrical switches
For which of the following should we use a p-chart to monitor process quality?
Tire pressures in a auto assembly plant
For which of the following should we use an X-bar chart based on sample means to monitor process quality?
Student grades measured from 1 to 100
For which of the following should we use an R-chart to monitor process quality?
9.68
You are developing an X-bar chart based on sample means. You know the standard deviation of the sample means is 4, the desired confidence level is 99 percent, and the average of the sample means is 20. Which of the following is your LCL?
0.0
You want to develop a three-sigma R-chart. You know the average range is 12 based on several samples of size 6. Which of the following is the resulting LCL?
0.18
You are going to develop an R-chart based on range statistics, and you are using a sample size of 9 for your charting purposes. Which of the following is the lower control limit D3 factor for the chart?
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