BUSOBA 3130 Final Exam Questions and Correct Answers.

BUSOBA 3130: Final Exam Questions and
Correct Answers
Question 1
What is the purpose of a cause-and-effect diagram?
Correct Answer
Helps identify, sort, and display possible causes of a specific problem or quality
characteristic



Question 2
How can a Pareto chart or a cause-and-effect diagram be constructed?
Correct Answer
By making a bar chart that has an x-axis with factors that mess with a process by
descending order of frequency, a y-axis with the frequency of the defects, and a
second y-axis on the other side that shows the percentage of the total amount of
defects. This lets you see how much of a weight each problem has on the process



Question 3
Are competitive capabilities order winners or order qualifiers?
Correct Answer
order winners



Question 4
How is constraint management related to capacity planning and capacity
management?
Correct Answer
tool used by supervisors and other management personnel to help employees
maintain task focus.




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,Question 5
How can understanding these types of costs help managers make better decisions?
Correct Answer
how to create a better culture and also like where to invest time to save money later
on



Question 6
Productivity=
Correct Answer
Output / Inputs



Question 7
How is a Pareto chart similar or not similar to ABC analysis for inventory?
Correct Answer
Similar: Both place a certain amount of weight on what they are analyzing and use
the 80-20 method.
Difference:Pareto charts analyze what defects are the largest factors in a problem.
ABC analysis looks at SKUs.



Question 8
How is the product mix based on TOC different from the traditional approach?
Correct Answer
throughput and overall profitability depends more upon the contribution margin
(amount each product contributes to profits and overhead) generated at the
bottleneck than by the contribution margin of each individual product produced



Question 9
How is muda eliminated via Kaizen?

Correct Answer
The key is the understanding that excess capacity or inventory hides underlying
problems with the processes that produce a product/service




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,Question 10
In a transformation process, what are activities of storage?
Correct Answer
Occurs when something is put away until a later time



Question 11
How does the Plan-Do-Study-Act (PDSA) cycle reflect the principle of continuous
improvement?
Correct Answer
constantly analyzing a problem within the organization that can be fixed



Question 12
Based on the Quality Loss Function, where does poor quality occur?
Correct Answer
Poor quality occurs once you go past the lower and upper specification; think of U
chart



Question 13
Capacity requirement=
Correct Answer
sum[Dp + (D / Q)s]
M= ----------------------
N [ 1 - (C / 100)]



Question 14
Break-even=
Correct Answer
RQ = F + VQ
or
Q = F / (R-V)




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, Question 15
Is a 100% utilization good or bad?
Correct Answer
bad. it is usually a signal to increase capacity or decrease order acceptance to avoid
declining productivity



Question 16
What is capacity?
Correct Answer
the maximum rate of output of a process or a system



Question 17
What is a control chart?
Correct Answer
used to primarily to detect defective services or products or to indicate that the
process has changed and that services or products will deviate from their design
specifications unless something is done to correct the situation



Question 18
What is a lean system?
Correct Answer
Operations system that maximizes the value added by each of a company's
activities by removing waste and delays from them



Question 19
How is a layout related to these process strategy decisions?
Correct Answer
physical arrangement of operations (or departments) relative to each other




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