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SCM 303 Exam 2 HW Questions

Terms in this set (102)

Capacity is directly related to: (Choose all that apply)

Output
Machines
Time
Processes
Output
Machines
Time
Processes
Equipment utilization is normally expressed as a percentage of design capacity. T/F
True
Which of these in not an approach to capacity planning?
Multiple Choice

Tracking
Leading
Forecasting
Following
Forecasting
"Economies of scale" means that large factories operating a planned capacity are able to make many different products at the same time and promise short delivery times. T/F
False
Foundries owe much of their success to:

Multiple Choice
Location
Flexibility
Volume purchases of materials and supplies
Diseconomies of scale
Flexibility
Benefits received from "economies of scale" include: (Choose all that apply):

Check All That Apply
-Volume purchases of materials and supplies
-Lower cost per unit produced
-A steady stream of customer orders
-The more you do something, the better you get at it
-Lower cost per unit produced
-The more you do something, the better you get at it
The learning curve measures:

Multiple Choice
Overall factory performance
Reduction in direct labor costs
Reduction in production costs per unit
Increase in production volume
Reduction in direct labor costs
Which of these is a proper application of the learning curve? (Choose all that apply)
When production processes are highly automated
When labor content is high
When the supplier is using a new process
When the supplier has a stable direct-labor workforce
When labor content is high
When the supplier is using a new process
When the supplier has a stable direct-labor workforce
Because they are paying for the contract, the buyer's company should receive the cost savings from a learning-curve application. T/F
False
The output of a factory can be no higher than the output of the slowest machine, the constraint of the system. T/F
True
The first step in the Theory of Constraints is to:

Multiple Choice
Make the constraint of the system more efficient
Measure the output of the factory
Identify the bottleneck
Build a buffer inventory in front of the constraint
Identify the bottleneck
Which of these is a true statement? (Choose all that apply)

Check All That Apply
A system can have more than one bottleneck.
Constraints can be eliminated by applying proper scheduling techniques.
A factory's bottleneck can change depending on what products are being made.
According to the Theory of Constraints, each machine should operate at its maximum throughput.
-A system can have more than one bottleneck.
-A factory's bottleneck can change depending on what products are being made.
The simplest way to think about throughput is the quantity of work completed. T/F
False
Throughput is generally equal to which thing?
Multiple Choice
Time to completion
The number of process steps
Inventory buildup
Arrival rate
Arrival rate
Throughput is a ...?
Multiple Choice
Rate
Correct
Number
Time
Proportion
Rate
Little's Law states there is a relationship between: (Choose all that apply)
Check All That Apply
Inventory
Flow time
Output
Throughput
Inventory
Flow time
Throughput
Throughput, sometimes referred to as output rate, is expressed in units produced per hour. T/F
False
If you maintain inventory at a constant level and keep the throughput rate constant:
Multiple Choice
Cycle time will decrease
Customer delivery dates become more reliable
You are following a push operating system
Your processes are operating under normal conditions
Customer delivery dates become more reliable
"Queuing" means the scientific study of the use of the letter Q in the English language. T/F
False
Which of the following results in waiting lines?
Multiple Choice
Hungry patrons
Small doors
Variability
System age
Variability
Which of the following are the components of a queuing system? (select all that apply)
Check All That Apply
Servers
Waiting area
Arrivals
Computers
Servers
Waiting area
Arrivals
What can managers do with queuing theory?
Multiple Choice
Calculate net profits
Measure and predict performance
Create better marketing
Eat at fancy restaurants
Measure and predict performance
The "C's" in the equation for the general queue stand for "Coefficient of Variation." T/F
True
"tp" stands for "average service" time and can be found by taking the inverse of which thing?

Multiple Choice
Arrival Rate
Service Rate
Utilization
Coefficient of Variation
Service Rate
The second, simpler formula is only valid for which condition?
Multiple Choice
The arrival and service rates are derived from a Normal distribution
The arrival and service rates are derived from a Chi-Square distribution
The arrival and service rates are derived from a Poisson distribution
The arrival and service rates are derived from a Beta distribution
The arrival and service rates are derived from a Poisson distribution
Utilization is equal to which of the following?
Multiple Choice
Arrival rate divided by service rate
Service rate divided by arrival rate
Arrival rate times service rate
Service rate minus arrival rate
Arrival rate divided by service rate
The saturation effect says that queuing performance changes with utilization in a steady, straight line.
True or False
False
Increasing which of the following causes degraded queuing performance according to the saturation effect? (choose all that apply)
Check All That Apply
Variability
Utilization
Line length
System size
Variability
Utilization
Which statement best describes the performance curve of a queuing system as system utilization approaches 100%:
Multiple Choice
It flattens out
Performance drastically improves
System performance is not impacted by utilization
Congestion and delays skyrocket
Congestion and delays skyrocket
An example of a short-term capacity increase decision is:

Multiple Choice
Adding specialized labor.
Installing new equipment.
Adding new facilities.
Adding low-skilled labor.
Adding low-skilled labor.
Continual improvement of processes is important because:

Multiple Choice
Competitors are improving their processes.
Customer preferences change over time.
Technology is constantly changing.
All of these.
All of these.
In process improvement projects, why should we focus our efforts on those processes that consume the most resources (e.g., labor, space, capital, etc.)?

Multiple Choice
Because those are the processes most visible to the customer
Because those are the processes that use our firm's core capabilities
Because that is where we get "the most bang for our buck."
All of these
Because that is where we get "the most bang for our buck."
Subcontracting is typically considered at what time horizon when doing capacity planning?

Multiple Choice
Short-term
Medium-term
Long-term
It is not part of the capacity planning process.
Medium-term
Which of the following is NOT a basic activity type in processes?

Multiple Choice
Delay
Operation
Reporting
Storage
Reporting
If a company can eliminate all sources of variance in a process:

Multiple Choice
It will be able to operate at maximum capacity at all times.
There will be no constraints in the process.
Continuous improvement will not be necessary.
None of these are true.
None of these are true.
Which two of the following effects directly result from bottlenecks?

Multiple Choice
Increase in costs and increase in defects.
Increase in output and increase in lead-times.
Decrease in inspections and increase in costs.
Decrease in output and increase in lead-times.
Decrease in output and increase in lead-times.
Under Juran's Law, whenever a problem occurs, what percentage of the time is the problem the result of a system/process error?

Multiple Choice
15 percent
50 percent
85 percent
100 percent
85 percent
Inventory held due to bottlenecks in a process causes:

Multiple Choice
Increased storage requirements
Quality issues
Increased labor costs
All of these
All of these
Process thinking causes managers to address critical process elements, including:

Multiple Choice
If you don't like the outcome, focus on the people.
Processes are guidelines to thinking about to best staff activities.
Processes drive measurement.
If you don't like the outcome, change the process.
If you don't like the outcome, change the process.
A process having the same activity being performed by two or more resources simultaneously is said to have what kind of structure?

Multiple Choice
Serial
Parallel
Helping
Flexible
Parallel
Total Quality Management: (Choose all that apply)
Check All That Apply
Is managed proactively
Involves only production processes
Focuses on the customer
Ensures on-time delivery
Is managed proactively
Focuses on the customer
Which of these is not a cost of quality?
Multiple Choice
External failure cost
Prevention cost
Design cost
Inspection cost
Design cost
Design-for-Six-Sigma programs offer a set of quality standards accepted by all industries.
True or False
False
Which of the following statements is false?

Multiple Choice
Quality dimensions are easy to measure for tangible goods, while they are difficult to measure for services.
Many dimensions of service quality are similar to the dimensions of quality for tangible goods.
Some firms still have a poor understanding of quality and quality management.
All of these are false.
Quality dimensions are easy to measure for tangible goods, while they are difficult to measure for services.
The idea that variability is the source of most quality problems was a major contribution of which quality management thought leader?

Multiple Choice
Juran
Imai
Crosby
Deming
Deming
"Zero defects" is a concept of quality management of which thought leader?

Multiple Choice
Deming
Juran
Crosby
Imai
Crosby
The TQM view of organizational structure states that:

Multiple Choice
Employees must support management decisions.
Management must support employees.
Customers want quality products.
Middle management must support and enforce top management decisions.
Management must support employees.
At the heart of the Six Sigma program is a five-step process called D-M-A-I-C. These letters denote a major activity that must be completed to achieve the objectives of Six Sigma. These activities are:

Multiple Choice
Define, Measure, Analyze, Improve, and Control.
Define, Measure, Analyze, Inquire, and Compare.
Define, Measure, Analyze, Involve, and Cost.
Define, Measure, Analyze, Improve, and Compare.
Define, Measure, Analyze, Improve, and Control.
ISO 9000 defines a set of internationally accepted standards for:

Multiple Choice
Product quality.
Quality control.
Operations management quality.
Business quality management.
Business quality management.
If a product includes features that customers care most about, we would say that it has high:

Multiple Choice
Conformance quality.
Design quality.
Reliability.
Aesthetics.
Design quality.
If a tangible good or service performs the promised function dependably, we say that it has high:

Multiple Choice
Conformance.
Durability.
Reliability.
Perceived quality.
Reliability.
The types of costs included in a cost of quality analysis include:

Multiple Choice
Production, delivery, and marketing.
Internal and external.
Direct and indirect.
Prevention, appraisal, and failure.
Prevention, appraisal, and failure.
The Plan-Do-Check-Act cycle is best defined as:

Multiple Choice
A rigorous procedure for strategic planning.
A method used to guide problem identification and solution.
A method first proposed by Joseph Juran.
All of these statements apply to the definition.
A method used to guide problem identification and solution.
The focus of the first step in the DMAIC process is on:

Multiple Choice
Process variability.
Cost.
Critical-to-quality characteristics.
Problem solving.
Critical-to-quality characteristics.
An application of the DMAIC process to product design is known as:

Multiple Choice
Design for Six Sigma.
Design for Quality.
Quality Function Deployment.
None of these answers are correct.
Design for Six Sigma.
A process with Six Sigma quality is expected to produce how many defects?

Multiple Choice
3.4 defects per million opportunities
6 defects per million opportunities
66,807 defects per million opportunities
Zero defects
3.4 defects per million opportunities
Implementation of a Six Sigma program typically involves:

Multiple Choice
Applying for the Malcolm Baldrige Award.
Setting up training at various levels including green belt and black belt training.
A cost of quality analysis.
None of these are usually involved in implementing Six Sigma.
Setting up training at various levels including green belt and black belt training
Factors affecting the success of a TQM effort do not include:

Multiple Choice
An existing crisis
A charismatic leader
An uncomplicated product
Trust between labor and management
An uncomplicated product
The degree to which the product meets its' design specifications is called:

Multiple Choice
Performance quality
Aesthetic quality
Conformance quality
Perceived quality
Total quality
Conformance quality
Two dimensions of product quality are hard to measure objectively and are therefore subject to subjective assessment. One of those subjective dimensions is:

Multiple Choice
Reliability
Perceived quality
Support
Features
Perceived quality
An organizational culture is shaped by:

Multiple Choice
The experiences of certain charismatic leaders
Leadership memos and meeting statements
The organization's value statement or motto
The actions taken by leadership
The actions taken by leadership
A Push system requires a high degree of coordination between production stations. T/F
False
A Pull system is likely to struggle to meet demand during demand spikes.
True or False
True
Which of the following statements is true of Push and Pull systems?
Multiple Choice
Push and Pull systems are opposites and can not be used together
Push and Pull systems are opposite but can still be used together
Push and Pull systems are essentially the same system
Push and Pull systems are only good for controlling machines on a shop floor
Push and Pull systems are opposite but can still be used together
Good reasons to reduce your setup times in a factory are: (Choose all that apply)
Check All That Apply
A down machine has no output.
Throughput increases after a machine change-over.
Setup times are constant and cannot be controlled.
Long setup times create additional inventory.
-A down machine has no output.
-Long setup times create additional inventory.
Which of these is a concept for reducing setup times?
Multiple Choice
RFID tags
Single minute exchange of die
Multi-product factories
Manufacturing production processes
Single minute exchange of die
Scheduling major change-overs sequentially helps to shorten overall setup times for the factory.
True or False
False
Achieving the goal of producing at the output rate that matches the rate of customer demand is the goal of:

Multiple Choice
Jidoka.
Poka-yoke.
Total productive maintenance.
TAKT time flow balancing
TAKT time flow balancing
Which phrase/word best captures what lean is?

Multiple Choice
A set of effective, well defined tools designed to reduce waste
A quantitative methodology for attacking variance
A procedure to be used within operation management and supply chain systems
A corporate philosophy
A corporate philosophy
Taichi Ohno, the founder of lean/just-in-time, when he came to America in the 1950s was most impressed with which of the following American developments?

Multiple Choice
The assembly line
Ford's River Rouge assembly plant
The productivity of American workers
The American supermarket
The American supermarket
In which operational setting has lean/just-in-time experienced the lowest levels of acceptance/implementation?

Multiple Choice
Manufacturing
Services
Across the supply chain
Turbulent business settings
Turbulent business settings
Misuse of automation is a root cause of which of the following types of waste?

Multiple Choice
Overproduction
Process
Motion
Rework
Overproduction
Which of the following would you NOT expect to find in a company attempting to implement lean/just-in-time production?

Multiple Choice
Emphasis on flexible, cross-trained workers
Inspections after each piece is produced
Frequent changeovers from one product to another
Emphasis on preventive maintenance for equipment
Inspections after each piece is produced
We have a situation where we have many different processes; high quantities are required to deliver the product's value both on the factory floor and in the customer's use. Which of the following categories of waste in product design have we encountered in this situation?

Multiple Choice
Complexity
Precision
Danger
Sensitivity
Complexity
The purpose of the kanban card is to:

Multiple Choice
Be a signal from the user authorizing the maker to start producing the required parts.
Keep track of defective products.
Inform the maker of the exact specification of the required parts.
Keep track of the total labor hours spent on a finished product.
Be a signal from the user authorizing the maker to start producing the required parts.
Kaizen events are most effective when applied to problems involving which of the following elements?

Multiple Choice
Processes
Products
Customers
Measures
Processes
Which of the following lean principles best communicates the notion of demand synchronization?

Multiple Choice
Produce only the products that the customer wants.
Build with perfect quality.
Build only as quickly as customers want them.
Build only with features that the customers want and no others.
Build only as quickly as customers want them.
An initial step in implementing lean is:

Multiple Choice
Lower the break-even point so smaller quantities can be economically produced.
Outsource any non-core activity that can be done more efficiently by a supplier than by the firm.
Increase the contribution margin of product being sold.
Empower Kaizen teams to improve specific processes/activities.
Outsource any non-core activity that can be done more efficiently by a supplier than by the firm.
McGreen Burger Shop sells about two burgers per minute. Although the cook can cook up to 10 burgers per minute, he starts to cook another burger only after the salesperson removes a burger from the ramp. The ramp is large enough to hold only five burgers and keep them warm until a sale is made. This is an example of a:

Multiple Choice
Pull system.
Push system.
Group technology.
Poka-yoke.
Pull system.
In the lean systems approach, as a system improves, it should have ____________ inventory on hand.

Multiple Choice
More
The same amount of
Less
Twice the amount of
Less
Lean design strives to achieve which of the following objectives?

Multiple Choice
Design products at the lowest cost
Design products that can be built with existing equipment
Design products that exactly meet customers' needs
Design products with the fewest number of options
Design products that exactly meet customers' needs
A production kanban authorizes a worker to:

Multiple Choice
Add an empty bin.
Withdraw a standard lot of a specific item.
Withdraw any item he feels is needed.
Replenish an empty bin.
Replenish an empty bin.
The best type of inspection to use is:

Multiple Choice
dependent on the nature of the purchase.
100 percent inspection.
sequential sampling.
continuous sampling.
carried out by a commercial testing laboratory.
dependent on the nature of the purchase.
The match between a commercially available material, good or service and the intended function is known as:

Multiple Choice
quality.
best buy.
suitability.
reliability.
functionality.
suitability.
An example of an external failure cost is:

Multiple Choice
returns to suppliers.
warranty costs.
lost labor.
scrap and rework costs.
returns to suppliers and lost labor.
warranty costs.
Supply may contribute to the containment of the costs of poor quality by addressing:

Multiple Choice
appraisal costs.
internal costs.
external costs.
prevention costs.
appraisal costs, internal costs, external costs and prevention costs.
appraisal costs, internal costs, external costs and prevention costs.
A sampling technique that is based on the cumulative effect of information that every additional item in the sample adds as it is inspected is called:

Multiple Choice
random sampling.
100 percent testing.
cumulative sampling.
sequential sampling.
additive testing.
sequential sampling.
The characteristic of a service that has the greatest impact on the ability to define, measure and control service quality is:

Multiple Choice
degree of tangibility.
nature of the demand.
monetary value of the service.
degree of repetitiveness.
direction of the service.
degree of tangibility.
Lean quality management philosophy is based on:

Multiple Choice
maximizing customer value.
minimizing waste.
statistical process control (SPC).
maximizing customer value and minimizing waste.
maximizing customer value, minimizing waste and statistical process control (SPC).
maximizing customer value and minimizing waste.
Quality control in services is:

Multiple Choice
more difficult for standardized services delivered by low-skilled workers.
performed exactly the same for small, medium, and large service providers.
more difficult for customized services delivered by highly skilled workers.
especially difficult if the service is a combination of tangible and intangible.
most easily done on the buyer's premises after the service is delivered.
more difficult for customized services delivered by highly skilled workers.
Quality improvement programs for goods are initiated by a desire to:

Multiple Choice
achieve ISO 9001 certification.
achieve ISO 14001 certification.
eliminate incoming inspection
reduce incoming inspection.
increase prices.
eliminate incoming inspection
ISO 9001: 2015:

Multiple Choice
provides common quality standards across all sectors of the United States economy.
was established by the International Supply Organization to focus quality efforts on supplier relationships.
defines the requirements a quality system must meet but does not dictate how they should be met.
was developed and first issued in the United States, and later adopted worldwide.
was designed to recognize U.S. organizations that excel in quality achievements and quality management.
defines the requirements a quality system must meet but does not dictate how they should be met
A formal service quality evaluation process:

Multiple Choice
measures the gap between service expectations and performance perceptions.
is relatively simple and applicable for all types of services.
is performed exactly the same as it is for goods.
is impossible to quantify if the service is highly intangible.
is most easily done on the buyer's premises.
measures the gap between service expectations and performance perceptions.
A six sigma (6σ) approach to quality:

Multiple Choice
means there are no more than 25 defects per million opportunities.
was developed by Japanese companies in the 1950s.
has no connection to the concept of zero defects.
focuses on preventing defects by using data to reduce variation and waste.
has soft goals such as happier customers and employees.
focuses on preventing defects by using data to reduce variation and waste.
Process variation that are intrinsic to the process are:

Multiple Choice
common, nonassignable causes of variation.
special or assignable causes of variation.
prevention costs.
internal failure costs.
external failure costs.
common, nonassignable causes of variation.
Determination of the "best buy" is based on:

Multiple Choice
suitability for a given use.
a balance between price and quality.
technical considerations only.
the internal user or specifier's perceptions.
trade-offs among stakeholders (e.g., marketing, operations, and supply).
trade-offs among stakeholders (e.g., marketing, operations, and supply).
Some estimates place the total costs of quality to be:

Multiple Choice
insignificant to the cost of the final product.
10-20 percent of the final product cost.
20-30 percent of the final product cost.
30-40 percent of the final product cost.
40-50 percent of the final product cost.
30-40 percent of the final product cost.
ISO 9001:2015 provides a tested framework for a systematic approach to consistently delivering product that satisfies customers' expectations by:

Multiple Choice
dictating how quality requirements should be met in every organization.
dictating scope and flexibility for quality system implementation.
assuming all national cultures will meet quality requirements the same way.
assuming all business sectors will meet quality requirements the same way.
providing a set of standardized requirements a quality system must meet.
providing a set of standardized requirements a quality system must meet.
A supplier certification program:

Multiple Choice
-adds cost to the supplier, but provides few benefits to the supplier.
-may improve quality, but at best will not raise costs.
always improves quality, but usually at a higher purchase price.
-may enable the buyer and seller to lower costs and improve quality.
-typically costs more to implement than the value of the quality improvement.
may enable the buyer and seller to lower costs and improve quality.
The real costs of quality:

Multiple Choice
tend to rise significantly with the cost of prevention.
rise significantly as defects increase in the finished product.
are incurred in the quality control department.
are easily identified by the accounting department.
are frequently overstated in an organization.
rise significantly as defects increase in the finished product.
Quality function deployment:

Multiple Choice
-seeks to understand what value represents to the customer.
-is a system for deploying quality at supplier facilities.
-provides direction on the appropriate level of product performance and which features should be included.
-seeks to understand what value represents to the customer and is a system for deploying quality at supplier facilities.
-seeks to understand what value represents to the customer, and provides direction on the appropriate level of product performance and which features should be included.
seeks to understand what value represents to the customer, and provides direction on the appropriate level of product performance and which features should be included.
A sampling technique in which every element in the population has an equal chance of being selected is called:

Multiple Choice
additive sampling.
sequential sampling.
100 percent testing.
random sampling.
cumulative sampling.
random sampling.
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