Which definition is used for quality evaluates how well a product performs its intended function?
Fitness for use
Which total quality management (TQM) process was developed to stress management’s responsibility for quality?
14 points for quality improvement
Which total quality management (TQM) process consists of 13 published standards and guidelines?
A company manufactures shoes using a quality management system. The company needs to put a process in place to measure any defects. The company would like to measure the number of defects and observe the number of occurrences to isolate the particular defect.
Which quality tool should the company use to focus on correcting this particular issue?
Which quality control tool should be used to monitor the current status or end result of a process?
Which group of keywords or phrases describes the crucial role that marketing plays in the total quality management (TQM) process?
Review and recommend product changes, satisfy customers needs, open communication
What is the common theme in total quality management (TQM) across all functions in an organization?
To satisfy customer needs
Which concept of variation measures the central tendency of a set of data?
What do assignable causes of variation indicate?
Equipment was found out of control
Which continuous improvement method does Cpk measure?
How close one is to a target and how consistent one is with the average performance
What are two important aspects of Six Sigma?
Which strategy is used by some emergency rooms to overcome customer frustrations about long waiting times?
Screen patients and fast-track those with minor ailments
Which two factors affect a service location decision?
Proximity to customers
Quality of life issues
Which is a key factor of a location analysis for a service company?
Proximity to customers
What helps an organization identify and plan the actions necessary to meet current and future customer demands?
Which capacity planning measurement tells how much capacity a company is using?
Which two statements are true about effective capacity?
An effective capacity maintains a minimum output rate under normal conditions.
An effective capacity is lower than design capacity
When is capacity measurement at the best operating level?
When the average unit cost is minimized
Which two capacity measurement concepts should a firm consider when conducting a location analysis?
proximity to sources of supply
What is a major factor in the decision to locate a business near its primary market territory?
proximity to customers
A manufacturing company decides to open a new distribution center location in order to minimize distribution costs to warehouses or stores.
What tool should the manufacturing company use to determine where the new distribution center should be located?
by using the load-distance model
Which two types of operations include repetitive processes?
A comprehensive automobile collision shop offers body and engine repair as well as custom vehicle paint options.
Which two operational processes would suit this shop?
What is a bottleneck in a flowchart?
The longest task in the process
Which formula would compute process velocity?
throughput time/value-added time
Which formula would indicate that a fast-food restaurant was performing at, above, or below its benchmark?
actual output/standard output
In which organizational layout would one expect to see items arranged by type?
A construction company produces pre-fabricated homes. The manager has discovered the following challenges within one of the facilities:
-production qualities are low and only a small number of homes are built efficiently
-the facility space allows for low handling of materials
-there is limited space available for employees to operate
Which hybrid layout should be used to address the company’s needs?
Which instrument would use an allocation process for space requirements in an industry scenario?
What would be an organizations next step after it has revised or implemented new operations?
follow up to make sure the new operation resolves quality problems
Why is it beneficial for an organization to designate employees to communicate alternative ways to complete a job in a methods analysis?
they may have suggestions for improving the operation
Which factor determines how long it takes a qualified operator to perform a duty of the job requirements under the assumption that the operator is working at a sustainable pace with the proper tools for the process?
Which design work system minimizes repetitiveness in tasks be assigning employees the role of planning and scheduling?
Which work system acknowledges the benefits of employee proficiency?
Which term means to schedule a job that starts immediately, regardless of the due date?
What is the third basic element in the just in time (JIT) system if the first element is the total quality management (TQM) and the second is JIT manufacturing?
respect for people
How do just in time (JIT) and lean systems add value?
by reducing waste
Which concept takes a total system approach to creating an efficient operation and combines concepts such as just in time (JIT), total quality management (TQM), and continuous improvement?
enterprise resource planning (ERP)
Why is kanban significant to the “pull” system?
It specifies the exact quantity of a product that needs to be produced
What are two product system differences between the push and pull processes?
push moves the product forward in anticipation for demand
pull eliminates excessive inventory
Which function does marketing play in a just in time (JIT) organization?
JIT marketing focuses on customer driven quality
How does a just in time (JIT) system influence all functional areas within a company?
companies are able to reduce waste
companies enhance workers ability to perform
What are two ways management can assist employees focus in a just in time (JIT) processing environment?
ensure that workers receive multifunctional training
develop an incentive system to reward workers for their efforts
Which tier-level supplier directly supplies materials or services to a processing and packaging plant?
tier one suppliers
Which role do third party logistics providers play in the supply chain?
A company manufactures and distributes its own products.
When should the company consider outsourcing distribution?
when the company determines that distribution is no longer a core function
What is the measure of how much supply chain is owned or operated by the manufacturer?
Which two areas should managers consider in order to adapt to the business dynamics affecting their company?
their control over internal operations
their advertising costs
What are two strategic objectives for every member of the supply chain?
becoming more efficient
reducing production and delivery times
How does the status of overall customer satisfaction support supply chain objectives?
it measures efficency
What is the name of the model that has been created to examine the four different supply chain perspectives of reliability, flexibility, expenses, and asset/utilization?
SCOR (Supply Chain Operations Reference)
The annual cost of goods sold for a company is $8,400,000 and the average inventory is $1,200,000.
What is the number of weeks of supply?
A manufacturing firm uses warehouses and shippers in their supply chain.
At which stage of the firm’s inventory management system would the statement “percentage of the line items shipped on schedule” be used?
How does inventory management differ for manufacturing organizations compared to service organizations?
manufacturing organizations must keep a large amount of product on hand at all times, regardless of demand
What is one advantage of a periodic review system?
less inventory is needed to protect against stockouts
A company’s monthly widgets demand has been consistent for the past few years but now a variable shift in demand is forecasted.
The demands are predicted to be:
-Jan 20,000 units
-Feb 17,000 units
-Mar 19,000 units
-Apr 21,000 units
-May 22,000 units
June 24,000 units
Beginning inventory of 10,000 units should be maintained.
What is the average monthly new widget production demand for the company?
A company suddenly finds demand has increased to 140% of its previous capacity. It has been able to hire only a fraction of the employees previously laid off, and a warehouse fire destroyed 80% of its inventory.
Which two options does the company have to rapidly meet the new demand?
subcontract a portion of production capacity
hire temporary workers
What are two reasons a company might be hesitant to provide overtime as a capacity-based option?
overtime is not a long term solution
overtime is typically a 50% wage premium
Why might a company avoid using demand-based options such as inventory and backorders over a long period of time?
it is more risky
Which element is part of a financial plan?
Why is the marketing plan essential to the creation of the aggregate plan?
the marketing plan provides insight into operations goals and activities for the year
What is meant by “duration of the change”?
the length of time one expects to need the different level of capacity
Which type of aggregated plan is preferable when a company produces custom or special purpose equipment, one of a kind, or highly perishable products?
a chase aggregated plan
What are two common drawbacks of implementing an enterprise resource planning (ERP) solution?
it requires extensive , often complex, training
it takes a long time to implement and to see any benefits
What is the primary purpose in using the master production schedule (MPS) in the marketing department of an organization?
to identify new product demand
A company is experiencing an unusual amount of deliveries that are either late or an incorrect quantity.
Which type of system is used to identify and manage this typ of problem?
CRP (capacity requirements planning)
Which statement is true about capacity requirements planning (CRP)?
production capacity is created for future production time
Why is capacity requirements planning (CRP) important?
it provides the ability to compare available production capabilities to the planned workload
Which project life cycle phase includes identifying the need for a project?
A company decides and makes plans to enter into a new market.
Which project life cycle phase does this strategy relate to?