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SCM 301 exam 1 question set

Terms in this set (133)

Which of the following is NOT one of the processes included in operations management?
Design
Finance
Produce
Deliver
Finance
A supply chain is a global network of organizations and activities involved in:

Producing, buying, servicing, and disposing of goods and services.

Designing, transforming, consuming, and disposing of goods and services.

Financing, producing, and marketing of goods and services.

Designing, financing, selling, and disposing of goods and services
Designing, transforming, consuming, and disposing of goods and services
Designing, transforming, consuming, and disposing of goods and services

Workforce, capacity, and facilities

Workforce, production planning, and materials controls.

Capacity, facilities, and technology.

Materials controls, supply chain, and value definition.
Capacity, facilities, and technology.
Joe Jones was asked to undertake a project to determine the resources and capacity his firm would need in the next three to 10 years. These types of decisions are considered to be:

Infrastructural aspects of operations management.

Positional aspects of operations management.

Assessment aspects of operations management.

Structural aspects of operations management
Structural aspects of operations management.
Physical goods can be differentiated from services in the operations management process by:

Longer lead times and they can be inventoried.

More capital-intensive and shorter lead times.

More labor-intensive and longer lead times.

More expensive and easier to control.
Longer lead times and they can be inventoried
Which of the following functions would NOT have to think about "processes"?

Logistics management

Production management

Supply management

Accounting

All of these have to think about "processes.
All of these have to think about "processes."
Which of the following statements about operations management processes is NOT true?

Inputs to operations management processes can be materials, people, and/or information.

Outputs of operations management processes are always tangible goods.

Operations management processes involve transformation of inputs into valuable outputs.

Design of operations processes should reflect what customers want.
Outputs of operations management processes are always tangible goods.
Growth of the supply chain management perspective in operations management results from the advent of:

Technology and infrastructure advances.

Collaborative networks.

A focus on core capabilities.

All of these.
All of these.
During the "mass production" era, operations management focused primarily on:

Production and design.

Internal production.

The global supply chain.

Sales, production, and design.
Internal production.
While there is overlap between operations management and supply chain management, the two are different in that:

Operations management focuses on production, supply chain management focuses on supply and logistics.

Operations management focuses on tangible goods, supply chain management focuses on services.

Operations management focuses on processes, supply chain management focuses on relationships and flows.

All of these
Operations management focuses on processes, supply chain management focuses on relationships and flows.
To an operations manager, the "key customer" is:

The person who buys a product.

The person who has the greatest impact on design, sales, and growth opportunities for the product.

The Echelon 1 customer.

The person who uses the product.
The person who has the greatest impact on design, sales, and growth opportunities for the product.
Operations management is:

The management of production.

The management of services.

The management of processes.

The management of physicians.
The management of processes
Which of the following statements is a reason why operations management is important?

Efficient and productive operations drive the economic well-being of nations.

Operations management is responsible for much of the value created by organizations.

Operations management is a key source of competitive differentiation among firms.

All of these are reasons why operations management is important.
All of these are reasons why operations management is important.
A process is:

A set of planned steps used to achieve an objective.

A system of activities that transforms inputs into valuable outputs.

A system of decisions.

A combined effort by people who want to get something done.
A system of activities that transforms inputs into valuable outputs.
Which of the following statements is NOT true regarding supply chain management?

Globalization has slowed the growth of supply chain management.

Supply chain management is a way of viewing operations management.

Supply chain management has grown as a result of a focus on core capabilities.

Supply chain management is about making the most of relationships with suppliers.
Globalization has slowed the growth of supply chain management.
Which of the following factors is NOT a major change driver that supply chain managers are concerned about?

Technology changes

Regulatory changes

Global political changes

Supply chain managers are concerned about all of these changes.
Supply chain managers are concerned about all of these changes.
Different levels of planning in supply chain operations management include:

General and detailed planning.

Strategic, tactical, and operational planning.

Long-term and short-term planning.

Logistical, operational, and procurement planning
Strategic, tactical, and operational planning.
An example of strategic planning is:

Deciding where to locate a new manufacturing plant.

Forecasting next week's demand of a given product item.

Targeting customer demand for aggregate product families.

Setting inventory levels for a given product.
Deciding where to locate a new manufacturing plant.
Which of the following decisions would NOT be under the direct control of operations managers?

What resources will be used to satisfy customer demand?

What customers should be targeted with greatest priority?

What suppliers should provide needed inputs?

What mode of transportation should be used to ship products?
What customers should be targeted with greatest priority?
Customer service management connects what functional groups?

Supply management, marketing, and finance.

Logistics management, sales and distribution, and product engineering.

Marketing, logistics management, and sales and distribution.

Human resources management, marketing, and finance.
Marketing, logistics management, and sales and distribution.
Supply chain management has grown as a prevalent perspective on operations management because:

Purchasing managers now have stronger roles in companies.

Firms have become more vertically integrated.

Technology has facilitated globalization.

Governments have become less open to trade.
Technology has facilitated globalization.
Which of the following statements best describes "process thinking"?

It is a way to manage thought processes to make better decisions.

It is a way to view business as a system of interrelated activities.

It is a way to approach work systematically.

It is a way to categorize elements of work activities.
It is a way to view business as a system of interrelated activities.
Up until the latter parts of the 20th century, operations management mainly focused on:

Design

Internal production

External outsourcing

Globalization
Internal production
How is "supply chain management" different than "operations management"?

They are exactly the same thing

Supply chain management focuses mainly on supplier relationships, while operations management focuses mainly on production

Supply chain management is about relationships and flows, while operations management is about processes

Supply chain management is external, while operations management is internal
Supply chain management is about relationships and flows, while operations management is about processes
In working with downstream processes, internal operations managers typically work closely with:

Marketing and sales managers

Information technology managers

Human resource managers

Government regulators
Marketing and sales managers
Internal operations managers work with what function to coordinate inbound and outbound flows of materials and information?

Finance

Purchasing

Marketing

Logistics
Logistics
A supplier of materials used in manufactured goods is a member of:

A union

The product supply chain

The resource/technology supply chain

The tier 2 supply chain
The product supply chain
What kinds of questions does an operations manager who is responsible for tactical-level planning address?

What new technologies should the company buy?

What new customers should the company pursue?

How many workers should we hire or fire?

Which customer order should we work on first today?
How many workers should we hire or fire?
What kinds of questions does an operations manager who is responsible for strategic-level planning address?

Which employees should work the day shift tomorrow?

How should this process be organized?

How many manufacturing plants should the company operate?

Should we make this part or buy it?
How many manufacturing plants should the company operate?
Suppose that you are the general manager of a hotel. For which of the following issues would you first seek help from an operations manager in your firm?

Our prices seem to be too high.

Customers' complaints are rising.

We need a new insurance policy.

We are running out of cash.
Customers' complaints are rising.
Corporate strategic planning involves decisions related to:

What businesses should we be in?

What specific product- and market-based initiatives and goals should we establish?

What measures should we use to control strategic initiatives?

All of these
What businesses should we be in?
Functional strategic planning involves decisions related to:

What businesses should we be in?

Specific product- and market-based initiatives and goals.

What metrics should be used to ensure progress in operations management?

All of these.
What metrics should be used to ensure progress in operations management?
A well-designed value proposition possesses four characteristics. Which of the following is NOT one of those characteristics?

It offers the highest product quality in each quality dimension.

It differentiates the firm from its competition in a way that is difficult to imitate.

It satisfies the financial and strategic objectives of the firm.

It can be reliably delivered given the operational capabilities of the firm and its supporting supply chain.
It offers the highest product quality in each quality dimension.
Which of the following is NOT true about "order qualifiers"?

These are product traits that must meet a certain level in order for the product to even be considered by customers.

The firm must perform acceptably on these traits, usually at least as well as competitors' offerings.

Order qualifier traits may include availability, price, and conformance quality.

All of the items are true.
All of the items are true.
Which of the following is considered a "process-related" competitive priority?

Flexibility

Quality

Cost

All of these
Flexibility
Xanadu Inc. claims that its manufacturing processes result in fewer greenhouse gases than those of its primary competitors. This suggests that Xanadu has a focus on:

Risk management.

Sustainability.

Flexibility.

Profitability.
Sustainability.
Which of the following is NOT considered a key characteristic of a core capability:

It is based on factors that are rare or unique to the firm.

It is hard to imitate.

It does not need to be extendable to many market opportunities.

There are few substitutes for it.
It does not need to be extendable to many market opportunities.
"When operational capabilities are consistent with and supportive of the value proposition and the outcomes desired by key customers" - this statement best describes the concept of:

Execution.

Flexibility.

Strategic planning.

Fit.
Fit.
A vice president of operations wants to evaluate the impact of reducing manufacturing expenses on the firm's return on assets. Which measurement should be examined?

Cost of goods sold

Asset turnover

Net profit margin

None of these
Cost of goods sold
You are an upper-level manager in a firm. You believe that corporate objectives are not effectively disseminated throughout the organization and that line-level managers do not take them into account in their decision making. Which of the following would best help you to try to correct this problem?

Hold a series of supervisory manager meetings.

Establish metric-based performance measures.

Evaluate personality indicators to ensure inter-departmental worker compatibility.

Evaluate and increase manager salaries and benefits.
Establish metric-based performance measures.
Which of the following is the most appropriate definition of a core capability?

A set of products unique to a firm.

Technical capabilities of a firm.

Reputation.

Production/design processes unique to the firm.
Production/design processes unique to the firm.
Which of the following is NOT a component of the business model?

Key customer

Value proposition

Desired outcome statement

System capabilities
Desired outcome statement
Currently, our system is characterized by a lack of fit between what the customer wants and what the SCM system is best able to provide. As a result, which of the following would apply? 1. The only way to restore fit is for the firm to change the market segment it is going after. 2. Unless something is done, our firm will not be the most effective and efficient long-term supplier. 3. Any firm can successfully counter such inconsistencies through the use of patents and aggressive advertising.

1 only.

2 only.

3 only.

1 and 2 only.

1, 2, and 3.
2 Only.
Which three elements make up the triple bottom line?

Planet, Pollution, Profit.

Pollution, Equality, People.

Profit, Equality, Pollution.

People, Profit, Planet
People, Profit, Planet.
Which of the following attributes is directly related to fitness for consumption by a customer?

Transaction Price

Timeliness

Performance

Availability
Performance
Under which component of the business model would people and culture fall?

Key customer

Value proposition

Environment

System capabilities
System capabilities
Within the supply chain and operations management system, the value proposition is most effectively communicated to the rest of the organization through which of the following mechanisms?

Performance measures

Mission statements

Management mandates

Corporate slogans and promotional materials.
Performance measures
An electronics firm produces smart phones for sale to the worldwide market. One of the most crucial process-related competitive operational priorities for this firm is:

Aesthetics

Cyber security

Flexibility

Durability
Flexibility
A manufacturer of generic prescription drugs must excel at delivering which of the following product traits?

Product performance

Features (unique attributes)

Durability

Low cost
Low cost
Decision making regarding customers and products is often led by the:

CEO

Board of Directors

Marketing Management

Financial Managers
Marketing Management
Internal questions that may be addressed in a SWOT analysis include:

What obstacles do we face?

What trends are we well positioned to take advantage of?

What do we do better than anyone else?

What changes in technology will affect us?
What do we do better than anyone else?
The three elements of Value Proposition, Key Customers, and Capabilities operate within an environment. Which of the following is NOT part of that environment?

Competition

Regulation

Technology

Founder's ideology
Founder's ideology
Which of the following is NOT a basic activity type in processes?

Delay

Operation

Reporting

Storage
Reporting
You walk into a hair stylist shop. All stylists are busy and you sit in the waiting area. You are in which of the following basic activity types in a process?

Operation

Delay

Storage

You are not in a process activity
Delay
Most processes involve two basic types of flows:

Information flows and material flows.

Product flows and decision flows.

Information flows and operator flows.

Physical flows and security flows.
Information flows and material flows.
A manager is currently unhappy with the capabilities of a particular process and wants to improve its capabilities. To accomplish this, the manager needs to focus on the process:

Inputs, outputs, and flows.

Activities.

Management metrics.

Structure
Structure.
Joe Jones, plant manager at Waco Industries, told a friend that if it was necessary, his plant could produce 1,000 items a day if all conditions were just right. Joe is describing his plant's:

Effective capacity.

Yield rate.

Utilization.

Maximum capacity.
Maximum capacity.
The following sequence shows four operations for a computer chip assembly process and the effective capacity of each. Which step is the bottleneck?
Step 1: 500 chips/hour
Step 2: 250 chips/hour
Step 3: 200 chips/hour
Step 4: 550 chips/hour

Step 1
Step 2
Step 3
Step 4
Step 3
The following sequence shows four operations for a computer chip assembly process and the effective capacity of each. Step 1: 500 chips/hour Step 2: 250 chips/hour Step 3: 200 chips/hour Step 4: 550 chips/hour Suppose the utilization is 70 percent of effective capacity. What is the actual output of the process?

140 chips/hour

350 chips/hour

175 chips/hour

200 chips/hour
140 chips/hour
A bottleneck activity in a process is generally the activity with:

The smallest number of resources devoted to it.

The least capacity.

No delays in front of it.

The highest cost.
The least capacity.
If a company can eliminate all sources of variance in a process:

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.
An example of a short-term capacity increase decision is:

Adding specialized labor.

Installing new equipment.

Adding new facilities.

Adding low-skilled labor
Adding low-skilled labor.
Which of the following statements about economies of scale is NOT true?

One reason economies of scale occur is because fixed costs can be spread over more units of production as output increases.

One reason economies of scale occur is because employees become more efficient as volume increases.

Economies of scale refers to the fact that as volume increases, total cost of production decreases.

Economies of scale may not exist at all levels of production.
Economies of scale refers to the fact that as volume increases, total cost of production decreases.
Floor space used to store items to be inspected belongs to which of the following elements of a process?

Activities

Inputs/outputs/flows

Process structure

Management policies
Inputs/outputs/flows
Under Juran's Law, whenever a problem occurs, what percentage of the time is the problem the result of a system/process error?

15 percent

50 percent

85 percent

100 percent
85 percent
Subcontracting is typically considered at what time horizon when doing capacity planning?

Short-term

Medium-term

Long-term

It is not part of the capacity planning process.
Medium-term
Which of the following actions will NOT increase output?

Increasing capacity through physical additions.

Outsourcing.

Managing the flow of work into the system.

Changing the processes to eliminate unnecessary steps.
Managing the flow of work into the system.
Which of the following statements best differentiates a delay from storage?

There is no difference - they both refer to the same concept.

Delays are planned activities; storages are not.

Delays are uncontrolled; storage is a planned part of a process.

Delays require control; storages does not.
Delays are uncontrolled; storage is a planned part of a process.
Space on the shop floor, bins, carts, or racks are capacity-limiting resources most frequently associated with which of the following process activities?

Delays

Transportation

Inspections

Operations.
Delays
Which two of the following effects directly result from bottlenecks?

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.
A process having the same activity being performed by two or more resources simultaneously is said to have what kind of structure?

Serial

Parallel

Helping

Flexible
Parallel
Inventory held due to bottlenecks in a process causes:

Increased storage requirements

Quality issues

Increased labor costs

All of these
All of These
Continual improvement of processes is important because:

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.)?
...
_______________ transform product specifications and new process technology into a new or revised production system.

New process design and development projects

New product design and development projects

Concurrent engineering projects

Operations management projects
New process design and development projects
Fast innovators typically gain which advantages?

They produce a more continuous stream of new product introductions that create a greater and more constant market awareness of their brands.

They have fewer problems in launching new products and fewer failures in the marketplace.

They can sell at lower prices or lower the total sales needed for a new product to pay back its initial development costs.

All of these.
They produce a more continuous stream of new product introductions that create a greater and more constant market awareness of their brands.
High-quality innovators typically gain which advantages?

They can fund more new design and development projects than other firms.

They satisfy customers more effectively, building strong brand image and customer loyalty.

They can sell at lower prices or lower the total sales needed for a new product to pay back its initial development costs.

None of these.
They satisfy customers more effectively, building strong brand image and customer loyalty.
Acton Corporation has identified a way to combine several existing technologies into a new product. This is most likely to have occurred in a:

Research and advanced development project.

Radical breakthrough development project.

Next generation or platform development project.

Enhancement development project.
Next generation or platform development project.
An advantage of "early supplier involvement" is that it:

Generally leads to higher-quality products.

Decreases time to launch new products.

Avoids supply problems once the product is launched.

All of these.
All of these.
The stage of a product/process innovation in which managers determine the target values of product attributes, volume, and price is

Product and market testing.

Product and process planning.

Detailed design and development.

Concept development.
Concept development.
"Concurrent engineering" is best described as:

The simultaneous implementation of engineering projects critical to the manufacture of new products.

Assigning multiple engineers to a project to ensure the accuracy of the work.

The simultaneous design and development of all the processes and information needed to manufacture a product, to sell it, to distribute it, and to service it.

Engineering techniques that seek to capture leading-edge knowledge and technology in the design phase of a new product.
The simultaneous design and development of all the processes and information needed to manufacture a product, to sell it, to distribute it, and to service it.
Sequential product development projects are likely to have ____________ development costs and ____________ development times than concurrent engineering product development projects

Higher; longer

Higher; shorter

Lower; longer

Lower; shorter
Lower; longer
The main purpose of quality function deployment (QFD) is:

To base product and process design decisions more directly on what the customer thinks is important.

To clearly identify the functional groups within the organization that have a direct influence on quality.

To expand the quality function and eliminate the need for statistical process control.

To set up a plan for the deployment of statistical quality control tools throughout the organization.
To base product and process design decisions more directly on what the customer thinks is important
Overall, it is clear that well-managed innovation projects:

Apply only to manufacturing firms.

Increasingly involve input from multiple functions in a company.

Should always be executed sequentially.

All of these.
Increasingly involve input from multiple functions in a company.
A disadvantage of "component standardization" is that it:

Increases development time.

Increases development cost.

Increases the difficulty of inventory management.

None of these are disadvantages.
None of these are disadvantages.
Which of the following statements is true regarding product/process innovation?

Innovation projects are operational processes.

Product and process development activities are usually closely linked.

Product/process design is a part of the resource/technology supply chain.

All of these statements are true.
All of these statements are true.
The stage of the product life cycle in which process innovation becomes an important way to increase efficiencies is:

Launch

Growth

Maturity

Decline
Maturity
An emphasis on involving supply chain partners in product/process innovation is known as:

Portfolio planning

Launch and learn

Codevelopment

Design outsourcing
Codevelopment
Cross-functional integration is needed in innovation projects because:

All functions have a stake in the success of a new product.

It is cheaper to solve problems uncovered early in development.

Process design decisions are dependent on product design decisions.

All of these are correct.
All of these are correct.
The primary difference between integrated/concurrent engineering development and functional/sequential development is:

Integrated development spends more money up front in order to save money in later stages.

Sequential development is more thorough in addressing development steps.

In sequential development, multiple functions comanage design and testing.

Integrated development usually leads to higher sustaining and warranty costs
Integrated development spends more money up front in order to save money in later stages.
XYZ Corporation is using customer interviews and surveys to gather perceptions regarding new product concepts. This approach is known as:

Quality function deployment.

Beta testing.

Voice of the customer.

Failure modes and effects analysis.
Voice of the customer.
Understanding the product life cycle is important because:

Innovation investments need to be matched to the phase of a product's life

All products follow the same pattern of innovation

Major process innovations typically occur in the growth stage

The time between product launch and decline is typically very long
Innovation investments need to be matched to the phase of a product's life
Understanding the product life cycle is important because:

Innovation investments need to be matched to the phase of a product's life

All products follow the same pattern of innovation

Major process innovations typically occur in the growth stage

The time between product launch and decline is typically very long
Innovation investments need to be matched to the phase of a product's life
Why is product/process innovation an important driver of firm performance?

Innovative firms typically have stronger brands

Product design decisions largely affect supply chain costs

Strong innovators can respond to market opportunities faster

All of these are reasons why innovation drives firm performance
All of these are reasons why innovation drives firm performance
What attributes are important measures of a firm's innovative prowess?

Speed, quality, and efficiency of innovation

The "wow" factor of innovation

The ability to imitate as well as innovate

Relentless pursuit of perfection
Speed, quality, and efficiency of innovation
"Crowdsourcing" is:

A way to design products that satisfy the largest number of people

A way to get ideas or services from a large number of sources, usually online

Not used for process innovation, mostly only for product innovation

A way to identify and hire the best and brightest new employees
A way to get ideas or services from a large number of sources, usually online
Operations managers view innovation as a "funnel" because:

Small ideas grow to become broad new strategies

It often takes many new ideas to yield a few really good innovations

Good innovators invest in as many new projects as they can afford

Innovation means launching many new products so that the market can sort out the winners and losers
It often takes many new ideas to yield a few really good innovations
Which of the following statements is true regarding innovation portfolio planning?

Each innovation project should be evaluated on its own merits, independent of other projects a firm is pursuing

Product enhancement projects typically require greater resource investments than platform development projects do

Operations managers play different roles on different types of innovation projects

In order to be fair, all innovation projects should be assessed using the same metrics
Operations managers play different roles on different types of innovation projects
The main benefit of a stage-gate process for product development is that it:

Is faster

Helps to reduce risk

Allows for greater parallel processing of development stages

Reduces management overhead costs
Helps to reduce risk
If you want to minimize up-front development costs in a new product development and launch project, which approach would you use?

Concurrent engineering

Product life cycle management

Sequential product development

Quality function deployment
Sequential product development
The main benefit of integrated/concurrent product development is:

Faster product development

Earlier problem solving

Reduced launch and production costs

All of these are benefits
All of these are benefits
A technology that produces prototypes quickly without the cost of production tooling is:

3D printing

CAD/CAE

VOC

Group technology
3D printing
"Design for X" is:

A short way to say "design for excellence"

An approach that ensures that customers' needs are met

A collection of design approaches that address specific areas of supply chain management

The same thing as design for manufacture
A collection of design approaches that address specific areas of supply chain management
A product design approach that uses digital connectivity to deliver services is known as:

Service platform

Modular design

Product platform

Design for service
Service platform
Which of the following statements is false?

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.
Stu Johnson, CEO of Johnson, Inc., attended a seminar on Total Quality Management. Which of the following is NOT something he is likely to have learned at that seminar?

Some aspects of quality are difficult to measure because they depend on customers' judgments.

Quality is primarily the responsibility of operations management.

Quality results from design as well as operations and delivery.

Cross-functional teams are important in TQM decision making.

He is likely to have learned all of these things.
Quality is primarily the responsibility of operations management.
The idea that variability is the source of most quality problems was a major contribution of which quality management thought leader?

Juran

Imai

Crosby

Deming
Deming
"Zero defects" is a concept of quality management of which thought leader?

Deming

Juran

Crosby

Imai
Crosby
Sanford Corp. bought new technological systems to inspect the quality of products as they come off the production line. The expense of operating these systems would be an example of which of the following types of quality-related costs?

Internal failure cost

Appraisal cost

External failure cost

Prevention cost
Appraisal cost
Xanadu Inc. decided to increase the training received by new employees. The expense of this training is an example of which of the following costs of quality?

Appraisal costs

External failure costs

Internal failure costs

Prevention costs

Quality control costs
Prevention costs
The TQM view of organizational structure states that:

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.
All of the following represent external failure cost EXCEPT the cost of:

Scrapping defective raw material.

Repairing items covered by warranty.

Replacing defective items found by customers.

Loss of goodwill and reputation.
Scrapping defective raw material.
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:

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.
Which of the following statements that might be made by a business executive best expresses the overall philosophy of Total Quality Management?

"We've achieved Six Sigma. That's good enough."

"There's always room for improvement."

The workers need to work harder to prevent quality problems."

"We never sell defective products to customers."
"There's always room for improvement."
If a product includes features that customers care most about, we would say that it has high:

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:

Conformance.

Durability.

Reliability.

Perceived quality.
Reliability.
Why is product quality sometimes poorly defined in a firm?

Managers are not clear on what characteristics customers care most about.

Holistic measures of quality are difficult to develop.

Managers in different functional areas tend to emphasize different dimensions of quality.

All these answers are correct.
All these answers are correct.
When buying from suppliers, what decisions do supply managers make that potentially impact quality?

Design of manufacturing and service processes

Design of contracts and associated incentives and penalties

Design of packaging

Design of product prototyping procedures
Design of contracts and associated incentives and penalties
The types of costs included in a cost of quality analysis include:

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:

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.
A process with Six Sigma quality is expected to produce how many defects?

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
"Product quality" is best explained as:

The result of both design quality and conformance quality

Absence of defect

Customer satisfaction

Desirable features
The result of both design quality and conformance quality
"Quality management" is:

A measure of how well managers achieve goals

An approach that develops culture and tools with a focus on quality

Six sigma

The achievement of all dimensions of quality
An approach that develops culture and tools with a focus on quality
Bill wants to purchase a new machine that is expected to hold tighter tolerances on production parts. What functional managers are likely to have a stake in this decision?

Logistics, Human Resources, Manufacturing

Engineers, Manufacturing, Marketing

Finance, Manufacturing, Engineering

Sales, Finance, Logistics
Finance, Manufacturing, Engineering
In a Cost of Quality analysis, "failure costs" refers to:

Costs associated with defects

Costs of not achieving goals

Costs of not considering customer needs

Costs associated with mistakes
Costs associated with defects
Training $10,000 Rework $30,000 Material scrap $20,000 Product redesign $40,000 Warranty $50,000Process improvement $10,000After digging through many expense reports, Marsha identified the costs shown above. If these costsare accurate, then the total cost of prevention would be:

$160,000

$80,000

$60,000

$100,000
$60,000
Which of the following statements is NOT consistent with core values of TQM?

Front line workers usually have the best ideas for solving problems.

Every employee has a stake in product quality.

Managers should support workers, not the other way around.

Opinions are as important as data.
Opinions are as important as data.
Persons with responsibilities in which business function will make decisions regarding new product testing programs?

Marketing

Finance

Logistics

Manufacturing
Marketing
Two dimensions of product quality are hard to measure objectively and are therefore subject to subjective assessment. One of those subjective dimensions is:

Reliability

Perceived quality

Support

Features
Perceived quality
An organizational culture is shaped by:

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
You are involved in the implementation of a quality improvement program. Your immediate goal is to identify what problems you should focus on (ideally you want to focus on those that give you the biggest bang for the buck). Which of the following quality control procedures is the most appropriate?

Fishbone diagrams

Process flow charts

Pareto analysis

Histograms
Pareto analysis
Which of the following quality improvement tools is most appropriate for identifying patterns in the data?

Cause and effect diagrams.

Process flow analysis.

Check sheets.

Process capability analysis.
Check sheets.
Effective quality management requires:

Data

Workers skilled in statistics and math

Charismatic leadership

Willingness to spend time and money measuring output
Data
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