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1. What is it called when a publishing company has decided to send the
technical information development elsewhere and have no in-house
capability? - ANSWER ✓ Outsourcing
2. Which of the following best describes subcontracting? - ANSWER ✓ It
provides additional output capacity during periods of high demand.
3. Deming's 14 points for management - ANSWER ✓ TQM process was
developed to stress management's responsibility for quality.
4. A company manufactures and distributes its own products. When should it
consider outsourcing its distribution? - ANSWER ✓ When the company
determines that distribution is no longer a core function.
5. 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.
6. What are two important aspects of Six Sigma? - ANSWER ✓ People
involvement, Technical tools
,7. Which strategy is used by some emergency rooms to overcome customer
frustrations about long waiting times? - ANSWER ✓ Screen patients and
fast-track those with minor ailments
8. Which two factors affect a service location decision? - ANSWER ✓
Proximity to customers and Quality of Life Issues
9. What is a key factor of a location analysis for a service company? -
ANSWER ✓ Proximity to customers
10.What helps an organization identify and plan the actions necessary to meet
current and future customer demands? - ANSWER ✓ Capacity planning
11.Which capacity planning measurement tells how much capacity a company
is using? - ANSWER ✓ Capacity utilization
12.Which two statements are true about effective capacity? - ANSWER ✓ An
effective capacity is lower than design capacity. and An effective capacity is
a permanent measure used to achieve design capacity.
13.When is capacity measurement at the best operating level? - ANSWER ✓
When the average unit cost is minimized
14.Which two capacity measurement concepts should a firm consider when
conducting a location analysis? - ANSWER ✓ Proximity to sources of
supply and Site considerations
15.What is a major factor in the decision to locate a business near its primary
market territory? - ANSWER ✓ Proximity to customers
16.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? - ANSWER ✓ By using the center-of-
gravity approach
17.Which two types of operations include repetitive processes? - ANSWER ✓
Line process & Continuous process
,18.A comprehensive automobile collision shop offers body and engine repair as
well as custom vehicle paint options. - ANSWER ✓ Project process & Batch
process
19.What is a bottleneck in a flowchart? - ANSWER ✓ The longest task in the
process
20.Which formula would compute process velocity? - ANSWER ✓ Throughput
time/value-added time
21.Which formula would indicate that a fast-food restaurant was performing at,
above, or below its benchmark? - ANSWER ✓ Actual output/standard
output
22.In which organizational layout would one expect to see items arranged by
type? - ANSWER ✓ Process
23.Which two options does the company have to rapidly meet the new demand?
- ANSWER ✓ Hire Temporary Workers
a. Subcontract a portion of production capacity
24.An inventory management team has analyzed quality problems within the
organization. The team developed a chart based upon the causes and ranked
them in descending order based upon the percentage of deficiencies. What
quality control tool did the inventory management team use? - ANSWER ✓
Pareto analysis
25.The subjective point of viewpoint of quality that depends on the viewpoint
of the people defining it - ANSWER ✓ Psychological criteria
26.What diagram can be used to show specific causes of an event? - ANSWER
✓ Fishbone diagram
27.Which continuous improvement method does Cpk measure? - ANSWER ✓
How close one is to a target and how consistent one is with the average
performance.
, 28.What is the primary goal of the international organization for
standardization? - ANSWER ✓ To provide manufacturing standards for
companies across a global setting
29.Caldwell Company has decided to improve the quality of their product.
Based on a customer survey they learned that the customers value
friendliness of the employees and responsiveness to their needs as the most
important characteristics of the product. Caldwell Company is probably an
example of what type of an organization? - ANSWER ✓ Service
30.Burns Industries had to recall 1,200 product units from their warehouse
because of a problem in the production process and the high possibility of
defects. What type of quality control costs is Burns incurring? - ANSWER
✓ Internal failure costs
31.Globex company has applied for the Malcolm Baldrige National Quality
Award (MBNQA). The Baldrige examiners want to know how the company
orders products from its suppliers. They are asking the following questions:
What departments are involved? How do they interact? How is product
quality controlled? What MBNQA category is being evaluated by the
examiners? - ANSWER ✓ Process management
32.Which group of keywords or phrases describes the critical role that
marketing plays in the total quality management (TQM) process? -
ANSWER ✓ Enhance competition; understand consumer preferences;
maintain communication with operations
33.What are two important aspects of Six Sigma? - ANSWER ✓ people
involvement
34.technical tools
35.Fang and Bone is implementing Six Sigma to improve the quality of
customer service. Information about current processes was already collected
and Fang and Bone are trying to recognize the main causes of the customer
service problem. What step of the DMAIC plan is the company currently at?
- ANSWER ✓ Analyze
36.Burns Industries wants to know information about the diameter of tires they
produce. A sample of 100 tires was taken and the diameters were measured.