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Exam 2

1. Arnold Palmer Hospital uses which of the following quality management techniques?

a. Pareto charts
b. flow charts
c. benchmarking
d. Just-in-Time
e. The hospital uses all of the above techniques

2. Which of the following statements best describes the relationship between quality management and product strategy?

Managing quality helps build successful product strategies.

3. "Making it right the first time" is

a manufacturing-based definition of quality

4. According to the manufacturing-based definition of quality,

quality is the degree to which a specific product conforms to standards

5. Which of the following is not one of the major categories of costs associated with quality?

prevention costs
b. appraisal costs
c. internal failures
d. external failures
e. none of the above; they are all major categories of costs associated with quality

6. Inspection, scrap, and repair are examples of

internal costs

7. "Quality Is Free," meaning that the costs of poor quality have been understated, is the work of

Philip B. Crosby

8. Based on his 14 Points, Deming is a strong proponent of

training and knowledge

9. Stakeholders who are affected by the production and marketing of poor quality products include

stockholders, employees, and customers

10. Regarding the quality of design, production, and distribution of products, an ethical requirement for management is to

determine whether any of the organization's stakeholders are violated by poor quality products

11. A successful TQM program incorporates all of the following except

centralized decision-making authority

12. Which of the following statements regarding "Six Sigma" is true?

The term has two distinct meanings. One is statistical, and the other is a comprehensive system

13. Quality circles members are

paid according to their contribution to quality
b. external consultants designed to provide training in the use of quality tools
c. always machine operators
d. all trained to be facilitators
e. none of the above; all of the statements are false

14. Building high-morale organizations and building communication networks that include employees are both elements of

employee empowerment

15. An organization that has successfully used both internal and external benchmarking is


16. Costs of dissatisfaction, repair costs, and warranty costs are elements of cost in the

Taguchi Loss Function

17. Pareto charts are used to

organize errors, problems, or defects

18. Among the tools of TQM, the tool ordinarily used to aid in understanding the sequence of events through which a product travels is a

process chart

19. A production manager at a pottery factory has noticed that about 70 percent of defects result from impurities in raw materials, 15 percent result from human error, 10 percent from machine malfunctions, and 5 percent from a variety of other causes. This manager is most likely using

a Pareto chart

20. A fishbone diagram is also known as a

cause-and-effect diagram

21. A quality circle holds a brainstorming session and attempts to identify the factors responsible for flaws in a product. Which tool do you suggest they use to organize their findings?

Ishikawa diagram

22. Which of the following is true regarding control charts?

a. Values above the upper and lower control limits indicate points out of adjustment.
b. Control charts are built so that new data can be quickly compared to past performance data.
c. Control charts graphically present data.
d. Control charts plot data over time.
e. All of the above are true.

23. Which of the following is not a typical inspection point?

after a costly process

24. "Poka-yoke" is the Japanese term for


25. A worker operates a shear press. She notices that the metal sheets she is cutting have curled edges. Who should get the first "shot" at solving the problem?

a member of the quality control department

26. Marketing issues such as advertising, image, and promotion are important to quality because

the intangible attributes of a product (including any accompanying service) may not be defined by the consumer

27. Which of the determinants of service quality involves performing the service right the first time?


1. If a sample of items is taken and the mean of the sample is outside the control limits the process is

out of control and the cause should be established

2. Natural variations

affect almost every production process
b. are the many sources of variation that occur when a process is under control
c. when grouped, form a pattern, or distribution
d. are tolerated, within limits, when a process is under control
e. All of the above are true.

3. Assignable variation

is to be identified and eliminated

4. Control charts for variables are based on data that come from

averages of small samples

5. Statistical process control charts

display upper and lower limits for process variables or attributes, and signal when a process is no longer in control

6. The Central Limit Theorem

allows managers to use the normal distribution as the basis for building some control charts

7. Up to three standard deviations above or below the centerline is the amount of variation that statistical process control allows for

natural variation

8. The type of inspection that classifies items as being either good or defective is

attribute inspection

9. The x-bar chart tells us whether there has been a

change in the central tendency of the process output

10. Jars of pickles are sampled and weighed. Sample measures are plotted on control charts. The ideal weight should be precisely 11 oz. Which type of chart(s) would you recommend?

- and R-charts

11. The usual purpose of an R-chart is to signal whether there has been a

gain or loss in dispersion

12. Plots of sample ranges indicate that the most recent value is below the lower control limit. What course of action would you recommend?

Variation is not in control; investigate what created this condition.

13. To set -chart upper and lower control limits, one must know the process central line, which is the

average of the sample means

14. According to the text, the most common choice of limits for control charts is usually

± 3 standard deviations

15. A run test is used

to examine points in a control chart to check for nonrandom variability

1. A job shop is an example of a(n)

intermittent process

2. Three types of processes are

process focus, repetitive focus, and product focus

3. A product-focused process is commonly used to produce

high-volume, low-variety products

4. Which one of the following products is most likely made in a job shop environment?

paper forms

5. An assembly line is an example of a

repetitive process

6. Which of the following transformations generally has the highest equipment utilization?

product-focused process

7. Which of the following is false regarding repetitive processes?

They allow easy switching from one product to the other

8. Which of the following phrases best describes product focus?

high fixed costs, low variable costs

9. Which of the following characteristics best describes repetitive focus?

Its output is a standardized product produced from modules.

10. A quasi-custom product

a. gets its apparent customization from the combinations available from a small number of modules
b. is often the output of repetitive focus facilities
c. is a valid description of a fast food sandwich

11. Process X has fixed costs of $10,000 and variable costs of $2.40 per unit. Process Y has fixed costs of $9,000 and variable costs of $2.25 per unit. Which of the following statements is true?

Process Y is cheaper than process X at all volumes; there is no crossover point.

12. Product Focused processes

are processes that are specialized for relatively few products or customer groups

13. One fundamental difference between a process chart and a process map is that

the process chart is more like a table, while the process map is more like a schematic diagram

14. A drawing of the movement of material, product, or people is a

flow diagram

15. In mass service and professional service, the operations manager should focus on

human resources

16. Which of the following is true regarding opportunities to improve service processes?

Automation can do little to improve service processes, because services are so personal.
b. Layout is of little consequence, since services seldom use an assembly line.
c. If a work force is strongly committed, it need not be cross-trained and flexible.
d. All of the above are true.
e. None of the above is true.

17. Which of the following is true regarding vision systems?

a. They are consistently accurate.
b. They are modest in cost.
c. They do not become bored.

18. Which of the following statements regarding automated guided vehicles is false?

They are used to move workers from one side of the plant to the other.

19. Computer-integrated manufacturing (CIM) includes manufacturing systems that have

computer-aided design, a flexible manufacturing system, inventory control, warehousing and shipping integrated

20. A system using an automated work cell controlled by electronic signals from a common centralized computer facility is called a(n)

flexible manufacturing system

21. Throughput is

synonymous with capacity

22. Design capacity is the

maximum theoretical output of a system in a given period under ideal conditions

23. Finding the optimum operating level (or volume)

is based on the concept of economies and diseconomies of scale

24. Krispy Kreme's experiences with capacity taught them that

there is an optimum operating level—a right size—for their stores

25. Adding a complementary product to what is currently being produced is a demand management strategy used when

the existing product has seasonal or cyclical demand

26. Of the four approaches to capacity expansion, the approach that "straddles" demand

a. uses incremental expansion
at some times leads demand, and at other times lags

1. FedEx chose Memphis, Tennessee, as its U.S. hub because

the city is in the center of the U.S., geographically
b. the airport has relatively few hours of bad weather closures
c. it needed a means to reach cities to which it did not have direct flights
d. the firm believed that a hub system was superior to traditional city-to-city flight scheduling
e. All of the above are true.

2. Industrial location analysis typically attempts to

reduce costs

3. A location decision for an appliance manufacturer would tend to have a(n)

cost focus

4. Globalization of the location decision is the result of all of the following except

higher quality of labor overseas

5. A manufacturing firm finds a location that has a significant cost advantage over alternatives, but rejects that location because the educational infrastructure was insufficient to train the firm's workers in its special production technologies. The firm's action illustrates the link between __________ and location.


6. When making a location decision at the country level, which of these would be considered?

a. corporate desires
b. land/construction costs
c. air, rail, highway, waterway systems
d. zoning restrictions
e. location of markets

7. When making a location decision at the region/community level, which of these would be considered?

cost and availability of utilities

8. Tangible costs include which of the following?


9. Which of the following statements regarding "proximity" in the location decision is false?

Clustering among fast food chains occurs because they need to be near their labor supply

10. Which of the following is the best example of clustering?

Software firms locate in Silicon Valley because of the abundance of scientific and technical college graduates.

11. Which of the following methods best considers intangible costs related to a location decision?

factor rating analysis

13. On the crossover chart where the costs of two or more location alternatives have been plotted, the quantity at which two cost curves cross is the quantity at which

total costs are equal for two alternative locations

14. The center-of-gravity method is used primarily to determine what type of locations?

distribution center locations

15. Production and/or shipping costs are always considered in which of the following location decision methods?

transportation method

16. Which of the following is not among the eight components of revenue and volume for a service firm?

shipment cost of finished goods

17. Traffic counts and purchasing power analysis of drawing area are techniques associated with

a retail or professional service location decision

18. LaQuinta Motor Inns has a competitive edge over its rivals because it

uses regression analysis to determine which variables most influence profitability

19. Which one of the following factors does not affect the volume and revenue for a service firm?

environmental regulations

20. Which of the following is most likely to affect the location decision of a service firm rather than a manufacturing firm?

parking and access

21. A jewelry store is more likely than a jewelry manufacturer to consider __________ in making a location decision.

parking and access

22. Which of these assumptions is not associated with strategies for goods-producing location decisions?

High customer contact issues are critical.

23. Geographic Information Systems can assist the location decision by

combining geography with demographic analysis

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