Quality Management and
Operations Strategy Exam Review
Prevention costs - ANSWER-Costs associated with reducing the potential for defects (e.g.,
training, quality improvement programs).
Pilot in quality management - ANSWER-To verify or validate the impact of changes before
fully incorporating them.
R-charts - ANSWER-They track changes in the dispersion of a process.
X-bar chart - ANSWER-A chart used in SPC to monitor the changes in the central tendency of
a process.
Six Sigma - ANSWER-A term that came from the statistics.
Voice of the Customer (VOC) - ANSWER-Refers to gathering customer feedback to
understand their quality expectations.
Pareto chart - ANSWER-A chart used to prioritize problems or defects based on their
frequency of occurrence.
Supply chain management - ANSWER-The primary objective is optimizing the overall
performance of the supply chain.
Six Sigma's applicability - ANSWER-It has been applied to both manufacturing and service
industries.
Mean Absolute Error (MAE) - ANSWER-A forecast accuracy measure that captures the
absolute value of the difference between forecasted and actual values.
, Sustainability - ANSWER-The evaluation and mitigation of an operation's effect on the
environment.
Seasonality - ANSWER-A component of a time series that involves shorter-term fluctuations,
often based on regular time intervals.
Quantitative methods of forecasting - ANSWER-Expert interview is not one of the
quantitative methods of forecasting.
Operations Strategy - ANSWER-Supports Business Strategy through the determination of
operational practices that support the business strategy.
Direct downstream partner - ANSWER-In the basketball supply chain, if you are a
manufacturer, your direct downstream partner is distributors.
PDCA cycle - ANSWER-A process that is not a one-time process used for solving specific
problems in an organization.
Price strategy - ANSWER-An operational approach that focuses on reducing operational
costs and efficiency.
Countermeasure - ANSWER-An action or device designed to negate another action or device,
describing one or more possible solutions to a problem.
Responsiveness strategy - ANSWER-At the firm level, it typically emphasizes flexibility and
delivery.
Operations management - ANSWER-The primary focus is efficiently converting inputs into
outputs.
Order cost - ANSWER-The shipping cost is not the only cost included in the order cost.
Enterprise Resource Planning (ERP) systems - ANSWER-The primary objective is integrating
and streamlining business processes across an entire organization.
Operations Strategy Exam Review
Prevention costs - ANSWER-Costs associated with reducing the potential for defects (e.g.,
training, quality improvement programs).
Pilot in quality management - ANSWER-To verify or validate the impact of changes before
fully incorporating them.
R-charts - ANSWER-They track changes in the dispersion of a process.
X-bar chart - ANSWER-A chart used in SPC to monitor the changes in the central tendency of
a process.
Six Sigma - ANSWER-A term that came from the statistics.
Voice of the Customer (VOC) - ANSWER-Refers to gathering customer feedback to
understand their quality expectations.
Pareto chart - ANSWER-A chart used to prioritize problems or defects based on their
frequency of occurrence.
Supply chain management - ANSWER-The primary objective is optimizing the overall
performance of the supply chain.
Six Sigma's applicability - ANSWER-It has been applied to both manufacturing and service
industries.
Mean Absolute Error (MAE) - ANSWER-A forecast accuracy measure that captures the
absolute value of the difference between forecasted and actual values.
, Sustainability - ANSWER-The evaluation and mitigation of an operation's effect on the
environment.
Seasonality - ANSWER-A component of a time series that involves shorter-term fluctuations,
often based on regular time intervals.
Quantitative methods of forecasting - ANSWER-Expert interview is not one of the
quantitative methods of forecasting.
Operations Strategy - ANSWER-Supports Business Strategy through the determination of
operational practices that support the business strategy.
Direct downstream partner - ANSWER-In the basketball supply chain, if you are a
manufacturer, your direct downstream partner is distributors.
PDCA cycle - ANSWER-A process that is not a one-time process used for solving specific
problems in an organization.
Price strategy - ANSWER-An operational approach that focuses on reducing operational
costs and efficiency.
Countermeasure - ANSWER-An action or device designed to negate another action or device,
describing one or more possible solutions to a problem.
Responsiveness strategy - ANSWER-At the firm level, it typically emphasizes flexibility and
delivery.
Operations management - ANSWER-The primary focus is efficiently converting inputs into
outputs.
Order cost - ANSWER-The shipping cost is not the only cost included in the order cost.
Enterprise Resource Planning (ERP) systems - ANSWER-The primary objective is integrating
and streamlining business processes across an entire organization.
