OPERATIONS AND SUPPLY CHAIN
MANAGEMENT 2026 PRACTICE QUESTION SET
TWO
◉ The Third Revolution. Answer: Also known as the post-industrial
era, this revolution began in the 1950s with the development of
computers. This technology has allowed fewer people to do more
work.
◉ Reliability. Answer: The ability to perform dependably and
accurately.
◉ Assurance. Answer: Knowledge and courtesy of employees and
their ability to convey trust and confidence.
◉ Process Redesign. Answer: The complete overhaul of a process to
improve performance.
◉ Percent Change in Productivity. Answer: [(New Productivity - Old
Productivity)/Old Productivity] * 100
,◉ Quality (internal). Answer: How quality is defined by the
business; often measured as the amount of a desired attribute;
objective.
◉ Quality (external). Answer: How quality is defined by the
customer and the product's fitness for use; meets customer's needs
and expectations; subjective.
◉ Questions for Customers when Improving Products. Answer: Ask
what they value (not just what they want), how do they work, what
makes them happy, and feedback on specific product attributes.
◉ Costs of Quality. Answer: Failure costs, appraisal costs, and
prevention costs.
◉ Failure Costs. Answer: Costs accrued by the organization or
customer as the result of a failure of the product.
◉ Appraisal Costs. Answer: Investments in measuring quality and
assessing customer satisfaction.
◉ Prevention Costs. Answer: Investments designed to prevent
defects from occurring.
,◉ Poka-yoke. Answer: Mistake proofing; an approach to prevent
defects, such as color-coding parts so that customers assemble the
product correctly.
◉ Design for Manufacture and Assembly (DFMA). Answer: Products
should be designed so that they are simple and inexpensive to
produce.
◉ Design for Operations (DFO). Answer: Services should be simple
and inexpensive.
◉ Statistical Process Control (SPC). Answer: The use of statistical
methods to determine when a process that produces goods is getting
close to producing too many defects.
◉ W. Edwards Deming. Answer: The most influential individual
within the specialty of quality; After World War II, he went to Japan
to help rebuild their economy, and he was heralded for his influence.
He went on to lecture in the United States in the 1980s; he
developed his 14 Points for the Transformation of Management.
◉ Deming's 14 Points for the Transformation of Management.
Answer: The system, not employees, cause defects; management is
responsible for changing the system, and they must take
responsibility instead of blaming employees; Deming also stressed
the use of Statistical Process Control (SPC) and encouraged training
, in its use. Other highlights include creating purpose, reduce fear,
provide training and leadership, break down barriers between
departments, and eliminate slogans, work standards, and quotas.
◉ Joseph M. Juran. Answer: He defined quality as "fitness for use",
from the customer's perspective; he emphasized the need for
continuous improvement and stressed that quality must be built on
quality planning, quality control, and quality improvement.
◉ Quality Planning. Answer: The development of products that
appeal to the changing wants and needs of customers.
◉ Quality Control. Answer: Ensure that the product fits the
customer's perception of fitness for use.
◉ Quality Improvement. Answer: Leadership ought to lead efforts to
eliminate waste and errors.
◉ Philip Crosby. Answer: Wrote Quality is Free; he emphasized the
complete elimination of failures to save money, as most firms
underestimate their failure costs and should evaluate all costs of
quality; "Do it right the first time".
◉ Genichi Taguchi. Answer: He helped develop Japan's telephone
system post-World War II. He designed experiments to extract more
MANAGEMENT 2026 PRACTICE QUESTION SET
TWO
◉ The Third Revolution. Answer: Also known as the post-industrial
era, this revolution began in the 1950s with the development of
computers. This technology has allowed fewer people to do more
work.
◉ Reliability. Answer: The ability to perform dependably and
accurately.
◉ Assurance. Answer: Knowledge and courtesy of employees and
their ability to convey trust and confidence.
◉ Process Redesign. Answer: The complete overhaul of a process to
improve performance.
◉ Percent Change in Productivity. Answer: [(New Productivity - Old
Productivity)/Old Productivity] * 100
,◉ Quality (internal). Answer: How quality is defined by the
business; often measured as the amount of a desired attribute;
objective.
◉ Quality (external). Answer: How quality is defined by the
customer and the product's fitness for use; meets customer's needs
and expectations; subjective.
◉ Questions for Customers when Improving Products. Answer: Ask
what they value (not just what they want), how do they work, what
makes them happy, and feedback on specific product attributes.
◉ Costs of Quality. Answer: Failure costs, appraisal costs, and
prevention costs.
◉ Failure Costs. Answer: Costs accrued by the organization or
customer as the result of a failure of the product.
◉ Appraisal Costs. Answer: Investments in measuring quality and
assessing customer satisfaction.
◉ Prevention Costs. Answer: Investments designed to prevent
defects from occurring.
,◉ Poka-yoke. Answer: Mistake proofing; an approach to prevent
defects, such as color-coding parts so that customers assemble the
product correctly.
◉ Design for Manufacture and Assembly (DFMA). Answer: Products
should be designed so that they are simple and inexpensive to
produce.
◉ Design for Operations (DFO). Answer: Services should be simple
and inexpensive.
◉ Statistical Process Control (SPC). Answer: The use of statistical
methods to determine when a process that produces goods is getting
close to producing too many defects.
◉ W. Edwards Deming. Answer: The most influential individual
within the specialty of quality; After World War II, he went to Japan
to help rebuild their economy, and he was heralded for his influence.
He went on to lecture in the United States in the 1980s; he
developed his 14 Points for the Transformation of Management.
◉ Deming's 14 Points for the Transformation of Management.
Answer: The system, not employees, cause defects; management is
responsible for changing the system, and they must take
responsibility instead of blaming employees; Deming also stressed
the use of Statistical Process Control (SPC) and encouraged training
, in its use. Other highlights include creating purpose, reduce fear,
provide training and leadership, break down barriers between
departments, and eliminate slogans, work standards, and quotas.
◉ Joseph M. Juran. Answer: He defined quality as "fitness for use",
from the customer's perspective; he emphasized the need for
continuous improvement and stressed that quality must be built on
quality planning, quality control, and quality improvement.
◉ Quality Planning. Answer: The development of products that
appeal to the changing wants and needs of customers.
◉ Quality Control. Answer: Ensure that the product fits the
customer's perception of fitness for use.
◉ Quality Improvement. Answer: Leadership ought to lead efforts to
eliminate waste and errors.
◉ Philip Crosby. Answer: Wrote Quality is Free; he emphasized the
complete elimination of failures to save money, as most firms
underestimate their failure costs and should evaluate all costs of
quality; "Do it right the first time".
◉ Genichi Taguchi. Answer: He helped develop Japan's telephone
system post-World War II. He designed experiments to extract more
