OPERATIONS MANAGEMENT EXAM 3 ACTUAL QUESTIONS
AND ANSWERS
Top Quality Management (TQM) - CORRECT ANSWER✅✅managing the entire organization to excel in
all dimensions important to the customer
two core goals of TQM - CORRECT ANSWER✅✅good design quality, systems that consistently produce
the design (conformance)
Quality at the source - CORRECT ANSWER✅✅workers are responsible for ensuring quality as they work
Design Quality - CORRECT ANSWER✅✅the inherent value of the product in the market place
Conformance quality - CORRECT ANSWER✅✅the degree to which the product or service design
specifications are met
Cost of Quality - CORRECT ANSWER✅✅expenses a firm incures to ensure products or servies meet
quality standards
Categories of COQ - CORRECT ANSWER✅✅prevention (training) , appraisal (inspections), internal
(rework, scrap), external (returns, warranty claims)
ISO standards - CORRECT ANSWER✅✅focuses on consistency, customer focus, leadership, and
continual improvement
Six Sigma Quality - CORRECT ANSWER✅✅approach to improve processes by reducing variation, +
defects. no more than 3.4 defects per million
DMAIC Method - CORRECT ANSWER✅✅Define, Measure, Analyze, Improve, Control
, Key concept of DMAIC - CORRECT ANSWER✅✅managers aim to remove special cause variation and
reduce common cause variation
Statistical process control - CORRECT ANSWER✅✅monitoring process output using samples to
determine if the process is in control
Control charts - CORRECT ANSWER✅✅used to distinguish types of variation and signal when a process
is out of control
x bar - CORRECT ANSWER✅✅control chart that tracks changes in a process's average (mean) over time
to detect shifts in central tendency
R chart - CORRECT ANSWER✅✅control chart that tracks changes in process's range (variability) over
time to detect shifts in dispersion
Lean Production - CORRECT ANSWER✅✅Philosophy focused on eliminating waste and improving flow
to deliver value efficiency
Value added - CORRECT ANSWER✅✅customer will pay for it, transform the product, and it is done right
the first time
Non value added - CORRECT ANSWER✅✅activities the customer would not pay for (pure waste)
Essential Non Value Added - CORRECT ANSWER✅✅required for quality or regulation (inspection)
Toyota Production System (TPS) - CORRECT ANSWER✅✅a foundational lean system emphasizing waste
elimination and respect for people
7 wastes - CORRECT ANSWER✅✅transportation, inventory, motion, waiting, over-processing, over-
production, defects
AND ANSWERS
Top Quality Management (TQM) - CORRECT ANSWER✅✅managing the entire organization to excel in
all dimensions important to the customer
two core goals of TQM - CORRECT ANSWER✅✅good design quality, systems that consistently produce
the design (conformance)
Quality at the source - CORRECT ANSWER✅✅workers are responsible for ensuring quality as they work
Design Quality - CORRECT ANSWER✅✅the inherent value of the product in the market place
Conformance quality - CORRECT ANSWER✅✅the degree to which the product or service design
specifications are met
Cost of Quality - CORRECT ANSWER✅✅expenses a firm incures to ensure products or servies meet
quality standards
Categories of COQ - CORRECT ANSWER✅✅prevention (training) , appraisal (inspections), internal
(rework, scrap), external (returns, warranty claims)
ISO standards - CORRECT ANSWER✅✅focuses on consistency, customer focus, leadership, and
continual improvement
Six Sigma Quality - CORRECT ANSWER✅✅approach to improve processes by reducing variation, +
defects. no more than 3.4 defects per million
DMAIC Method - CORRECT ANSWER✅✅Define, Measure, Analyze, Improve, Control
, Key concept of DMAIC - CORRECT ANSWER✅✅managers aim to remove special cause variation and
reduce common cause variation
Statistical process control - CORRECT ANSWER✅✅monitoring process output using samples to
determine if the process is in control
Control charts - CORRECT ANSWER✅✅used to distinguish types of variation and signal when a process
is out of control
x bar - CORRECT ANSWER✅✅control chart that tracks changes in a process's average (mean) over time
to detect shifts in central tendency
R chart - CORRECT ANSWER✅✅control chart that tracks changes in process's range (variability) over
time to detect shifts in dispersion
Lean Production - CORRECT ANSWER✅✅Philosophy focused on eliminating waste and improving flow
to deliver value efficiency
Value added - CORRECT ANSWER✅✅customer will pay for it, transform the product, and it is done right
the first time
Non value added - CORRECT ANSWER✅✅activities the customer would not pay for (pure waste)
Essential Non Value Added - CORRECT ANSWER✅✅required for quality or regulation (inspection)
Toyota Production System (TPS) - CORRECT ANSWER✅✅a foundational lean system emphasizing waste
elimination and respect for people
7 wastes - CORRECT ANSWER✅✅transportation, inventory, motion, waiting, over-processing, over-
production, defects
