OM 300 Exam 2 Chillcut Questions And Answers With Real Tests
INTRODUCTION
This question bank is designed for business students preparing for the OM
300 Exam 2 (Chilcutt) and related operations management course exams
at universities across the United States. It contains unique multiple-
choice questions with verified answers and detailed rationales, covering
the full exam blueprint: quality management fundamentals (quality costs,
TQM, Six Sigma, DMAIC, quality gurus, SERVQUAL, ISO 9000/14000,
Baldrige Award), quality tools and techniques (Pareto charts, fishbone
diagrams, check sheets, scatter diagrams, flowcharts, SPC charts,
control charts, process capability, sampling plans, OC curves, AQL, LTPD),
statistical quality control (SPC, natural vs. assignable variation, p-charts,
c-charts, x-bar charts, R-charts, process capability studies, Cp/Cpk,
acceptance sampling), project management (critical path, slack, CPM,
PERT, Gantt charts, crashing, WBS, network diagrams, EVM, project
closure), forecasting (qualitative and quantitative methods, time horizons,
Delphi method, moving averages, exponential smoothing, time-series
components, forecast error, tracking signal), and aggregate planning and
capacity (chase and level strategies, capacity planning, bottlenecks,
theory of constraints, yield management, scheduling rules, MRP, MPS).
,SECTION 1: QUALITY MANAGEMENT FUNDAMENTALS
Question 1
Managing quality helps build successful strategies of:
A) differentiation, time and response
B) differentiation, low cost and service
C) differentiation, low cost and response
D) differentiation, time and service
Correct Answer: C
Rationale: Managing quality helps build successful strategies of
differentiation, low cost, and response. Quality enables a firm to
compete on multiple dimensions simultaneously.
Question 2
A successful quality strategy begins with:
A) satisfying customers and obtaining a competitive advantage
B) an understanding of the principles of quality
C) an organizational culture that fosters quality
D) an understanding of the competitive environment
Correct Answer: C
Rationale: A successful quality strategy begins with an
organizational culture that fosters quality. Without cultural buy-in,
quality initiatives cannot be sustained.
,Question 3
Which of the following is NOT an external failure cost?
A) Lost goodwill
B) Scrap
C) Returned goods
D) Costs to society
Correct Answer: B
Rationale: Scrap is an internal failure cost, incurred before the
product reaches the customer. External failure costs occur after
delivery.
Question 4
Which of the following DOES NOT increase profit by improving quality?
A) Increased productivity
B) Higher warranty costs
C) Improved response
D) Increased profits
Correct Answer: B
Rationale: Higher warranty costs decrease profit. Improving quality
should reduce warranty costs by preventing defects.
, Question 5
What is the Japanese term used to describe continuous improvement?
A) Kaizen
B) Kanban
C) Jidoka
D) Poka-yoke
Correct Answer: A
Rationale: Kaizen is the Japanese term for continuous improvement.
It is a core principle of quality management and lean operations.
Question 6
What is the Japanese term for mistake-proofing?
A) Kaizen
B) Kanban
C) Jidoka
D) Poka-yoke
Correct Answer: D
Rationale: Poka-yoke is the Japanese term for mistake-proofing. It
uses simple, low-cost devices to prevent errors from occurring.
Question 7
What is the Japanese term for stopping production when a defect occurs?
INTRODUCTION
This question bank is designed for business students preparing for the OM
300 Exam 2 (Chilcutt) and related operations management course exams
at universities across the United States. It contains unique multiple-
choice questions with verified answers and detailed rationales, covering
the full exam blueprint: quality management fundamentals (quality costs,
TQM, Six Sigma, DMAIC, quality gurus, SERVQUAL, ISO 9000/14000,
Baldrige Award), quality tools and techniques (Pareto charts, fishbone
diagrams, check sheets, scatter diagrams, flowcharts, SPC charts,
control charts, process capability, sampling plans, OC curves, AQL, LTPD),
statistical quality control (SPC, natural vs. assignable variation, p-charts,
c-charts, x-bar charts, R-charts, process capability studies, Cp/Cpk,
acceptance sampling), project management (critical path, slack, CPM,
PERT, Gantt charts, crashing, WBS, network diagrams, EVM, project
closure), forecasting (qualitative and quantitative methods, time horizons,
Delphi method, moving averages, exponential smoothing, time-series
components, forecast error, tracking signal), and aggregate planning and
capacity (chase and level strategies, capacity planning, bottlenecks,
theory of constraints, yield management, scheduling rules, MRP, MPS).
,SECTION 1: QUALITY MANAGEMENT FUNDAMENTALS
Question 1
Managing quality helps build successful strategies of:
A) differentiation, time and response
B) differentiation, low cost and service
C) differentiation, low cost and response
D) differentiation, time and service
Correct Answer: C
Rationale: Managing quality helps build successful strategies of
differentiation, low cost, and response. Quality enables a firm to
compete on multiple dimensions simultaneously.
Question 2
A successful quality strategy begins with:
A) satisfying customers and obtaining a competitive advantage
B) an understanding of the principles of quality
C) an organizational culture that fosters quality
D) an understanding of the competitive environment
Correct Answer: C
Rationale: A successful quality strategy begins with an
organizational culture that fosters quality. Without cultural buy-in,
quality initiatives cannot be sustained.
,Question 3
Which of the following is NOT an external failure cost?
A) Lost goodwill
B) Scrap
C) Returned goods
D) Costs to society
Correct Answer: B
Rationale: Scrap is an internal failure cost, incurred before the
product reaches the customer. External failure costs occur after
delivery.
Question 4
Which of the following DOES NOT increase profit by improving quality?
A) Increased productivity
B) Higher warranty costs
C) Improved response
D) Increased profits
Correct Answer: B
Rationale: Higher warranty costs decrease profit. Improving quality
should reduce warranty costs by preventing defects.
, Question 5
What is the Japanese term used to describe continuous improvement?
A) Kaizen
B) Kanban
C) Jidoka
D) Poka-yoke
Correct Answer: A
Rationale: Kaizen is the Japanese term for continuous improvement.
It is a core principle of quality management and lean operations.
Question 6
What is the Japanese term for mistake-proofing?
A) Kaizen
B) Kanban
C) Jidoka
D) Poka-yoke
Correct Answer: D
Rationale: Poka-yoke is the Japanese term for mistake-proofing. It
uses simple, low-cost devices to prevent errors from occurring.
Question 7
What is the Japanese term for stopping production when a defect occurs?
