QDM EXPERT ACTUAL EXAM LATEST 2024/2025
QUESTIONS AND VERIFIED CORRECT ANSWERS/ ALREADY
GRADED A++
Which of the following types of inventory describes inventory that has been
purchased but not processed?
A. work in process inventory
B. finished goods inventory
C. maintenance/repair/operating supply inventory
D. raw material inventory - ANSWER D. raw material inventory
ABC analysis divided an organization's on-hand inventory into three
classes based on
A. unit price
B. annual demand
C. annual dollar volume
D. the number of units on hand - ANSWER C. annual dollar volume
Policies based on ABC analysis might include investing
A. the most time and effort verifying the accuracy of records for B items
B. more in supplier development for A items
C. extra care in forecasting for C items
D. more in inventory security for C items - ANSWER B. more in supplier
development for A items
Cycle counting
A. is a process by which inventory records are verified
B. cannot be performed in an independent demand situation
C. increases annual inventory adjustments
D. involves shutting down production once per year to perform the annual
inventory count - ANSWER A. is a process by which inventory records are
verified
Which of the following doe NOT belong to holding costs?
A. insurance on inventory
B. order processing
C. pilferage, scrap, and obsolescence
D. storage costs - ANSWER B. order processing
,What is the cost to prepare a machine or process for production?
A. setup cost
B. ordering cost
C. preparation cost
D. holding cost - ANSWER A. setup cost
Inventory control models assume that demand for an item is
A. identical to the demand for other items
B. always independent on the demand for other items
C. always dependent on the demand for other items
D. either independent of or dependent on the demand for other items -
ANSWER D. either independent of or dependent on the demand for other
items
A system that triggers ordering on a uniform time basis is called
A. an EOQ system
B. a reorder point system
C. a fixed-period system
D. a fixed-quantity system - ANSWER C. a fixed-period system
A single-period inventory model is NOT applicable for
A. milk
B. furniture
C. newspaper
D. seasonal goods - ANSWER B. furniture
The appropriate level of safety stock is typically determined by
A. carrying sufficient safety stock so as to eliminate all stockouts
B. choosing the level of safety stock that assures a given service level
C. minimizing the expected stockout cost
D. taking the square root of the economic quantity - ANSWER B. choosing
the level of safety stock that assures a given service level
With a probabilistic model, increasing the service level
A. will have no impact on the cost of the inventory policy
B. will decrease the level of safety stock
C. will increase the cost of the inventory policy
D. will reduce the cost of the inventory policy - ANSWER C. will increase
the cost of the inventory policy
,QDM Principles - ANSWER > Customers Define Quality
> Be Scientific
> Measure, Measure, Measure
> Optimize Business Performance
> Quality Involves Teamwork
> View Failures as Opportunities
ABLE Problem Solving Process - ANSWER > ASSESS
> BUILD
> LAUNCH
> EVALUATE
ASSESS - ANSWER > ASSESS opportunities to improve the customer
experience or business performance - and focus on one.
> Focus on opportunity and initiating a team are the earliest steps in ABLE.
BUILD - ANSWER > BUILD understanding of the improvement opportunity
and build the solution.
> Selecting a solution and identifying how you will measure success are
important parts of BUILD.
LAUNCH - ANSWER > LAUNCH the solution successfully through careful
planning and control.
> The improvement effort proceeds through careful implementation and
control planning.
EVALUATE - ANSWER > EVALUATE the implementation to confirm its
real work success.
> Performance is measured and results shared.
Opportunity Statement - ANSWER a description of a quality problem, its
impact, and the benefits of solving it.
Opportunity Statement - Key Points - ANSWER a. Don't include causes
b. Don't attribute blame
c. Focus on a single problem
d. Don't offer solutions
e. Be realistic
QDM Methodologies - ANSWER a. ISO
, b. Baldridge
c. Lean
d. Six Sigma
A dissatisfied customer with any OpCo stands a ____________ of
switching to a competitor. - ANSWER 40% chance
QDM Mission - ANSWER To deliver market-leading customer experiences,
business excellence, and financial returns through a quality-oriented culture
and day-to-day application of quality science.
Quality Costs - Two very real types: - ANSWER a. The Cost of Poor Quality
b. The Cost of Good Quality
1:10:100 Rule: - ANSWER • $1 spent on doing the job right saves
• $10 on correction and
• $100 on the cost of a failure
In businesses generally, _____________________ in a business are due
to mistakes, errors, and replacing lost customers. - ANSWER 10-20% of
corporate expenses
QDM Quality Measures: - ANSWER a. Service Quality Index (SQI)
b. Key Process Indicators (KPI)
c. Dashboards and Scorecards
QAT - Quality Action Team - ANSWER a group of FedEx employees who
come together to work intensively on a quality issue, then disband once the
problem has been solved.
Applying QDM Summary: - ANSWER • When you see a problem, fix it.
• When you see something that can be done better, do it.
• Take ownership of work, do it in the best way possible.
All metrics, whether SQIs or KPIs, or tools such as dashboards or
scorecards, help meet the organization goals. - ANSWER True
QDM's two main goals: - ANSWER a. Exceed customer expectations
b. Optimize the processes by which work gets done
QUESTIONS AND VERIFIED CORRECT ANSWERS/ ALREADY
GRADED A++
Which of the following types of inventory describes inventory that has been
purchased but not processed?
A. work in process inventory
B. finished goods inventory
C. maintenance/repair/operating supply inventory
D. raw material inventory - ANSWER D. raw material inventory
ABC analysis divided an organization's on-hand inventory into three
classes based on
A. unit price
B. annual demand
C. annual dollar volume
D. the number of units on hand - ANSWER C. annual dollar volume
Policies based on ABC analysis might include investing
A. the most time and effort verifying the accuracy of records for B items
B. more in supplier development for A items
C. extra care in forecasting for C items
D. more in inventory security for C items - ANSWER B. more in supplier
development for A items
Cycle counting
A. is a process by which inventory records are verified
B. cannot be performed in an independent demand situation
C. increases annual inventory adjustments
D. involves shutting down production once per year to perform the annual
inventory count - ANSWER A. is a process by which inventory records are
verified
Which of the following doe NOT belong to holding costs?
A. insurance on inventory
B. order processing
C. pilferage, scrap, and obsolescence
D. storage costs - ANSWER B. order processing
,What is the cost to prepare a machine or process for production?
A. setup cost
B. ordering cost
C. preparation cost
D. holding cost - ANSWER A. setup cost
Inventory control models assume that demand for an item is
A. identical to the demand for other items
B. always independent on the demand for other items
C. always dependent on the demand for other items
D. either independent of or dependent on the demand for other items -
ANSWER D. either independent of or dependent on the demand for other
items
A system that triggers ordering on a uniform time basis is called
A. an EOQ system
B. a reorder point system
C. a fixed-period system
D. a fixed-quantity system - ANSWER C. a fixed-period system
A single-period inventory model is NOT applicable for
A. milk
B. furniture
C. newspaper
D. seasonal goods - ANSWER B. furniture
The appropriate level of safety stock is typically determined by
A. carrying sufficient safety stock so as to eliminate all stockouts
B. choosing the level of safety stock that assures a given service level
C. minimizing the expected stockout cost
D. taking the square root of the economic quantity - ANSWER B. choosing
the level of safety stock that assures a given service level
With a probabilistic model, increasing the service level
A. will have no impact on the cost of the inventory policy
B. will decrease the level of safety stock
C. will increase the cost of the inventory policy
D. will reduce the cost of the inventory policy - ANSWER C. will increase
the cost of the inventory policy
,QDM Principles - ANSWER > Customers Define Quality
> Be Scientific
> Measure, Measure, Measure
> Optimize Business Performance
> Quality Involves Teamwork
> View Failures as Opportunities
ABLE Problem Solving Process - ANSWER > ASSESS
> BUILD
> LAUNCH
> EVALUATE
ASSESS - ANSWER > ASSESS opportunities to improve the customer
experience or business performance - and focus on one.
> Focus on opportunity and initiating a team are the earliest steps in ABLE.
BUILD - ANSWER > BUILD understanding of the improvement opportunity
and build the solution.
> Selecting a solution and identifying how you will measure success are
important parts of BUILD.
LAUNCH - ANSWER > LAUNCH the solution successfully through careful
planning and control.
> The improvement effort proceeds through careful implementation and
control planning.
EVALUATE - ANSWER > EVALUATE the implementation to confirm its
real work success.
> Performance is measured and results shared.
Opportunity Statement - ANSWER a description of a quality problem, its
impact, and the benefits of solving it.
Opportunity Statement - Key Points - ANSWER a. Don't include causes
b. Don't attribute blame
c. Focus on a single problem
d. Don't offer solutions
e. Be realistic
QDM Methodologies - ANSWER a. ISO
, b. Baldridge
c. Lean
d. Six Sigma
A dissatisfied customer with any OpCo stands a ____________ of
switching to a competitor. - ANSWER 40% chance
QDM Mission - ANSWER To deliver market-leading customer experiences,
business excellence, and financial returns through a quality-oriented culture
and day-to-day application of quality science.
Quality Costs - Two very real types: - ANSWER a. The Cost of Poor Quality
b. The Cost of Good Quality
1:10:100 Rule: - ANSWER • $1 spent on doing the job right saves
• $10 on correction and
• $100 on the cost of a failure
In businesses generally, _____________________ in a business are due
to mistakes, errors, and replacing lost customers. - ANSWER 10-20% of
corporate expenses
QDM Quality Measures: - ANSWER a. Service Quality Index (SQI)
b. Key Process Indicators (KPI)
c. Dashboards and Scorecards
QAT - Quality Action Team - ANSWER a group of FedEx employees who
come together to work intensively on a quality issue, then disband once the
problem has been solved.
Applying QDM Summary: - ANSWER • When you see a problem, fix it.
• When you see something that can be done better, do it.
• Take ownership of work, do it in the best way possible.
All metrics, whether SQIs or KPIs, or tools such as dashboards or
scorecards, help meet the organization goals. - ANSWER True
QDM's two main goals: - ANSWER a. Exceed customer expectations
b. Optimize the processes by which work gets done
