Bus 140 SJSU Exam 2
A production manager at a pottery factory has noticed that about 70 percent of defects
result from impurities in raw materials, 15 percent result from human error, 10 percent
from machine malfunctions, and 5 percent from a variety of other causes. This manager
is most likely using: ____
A) a Pareto chart.
B) a scatter diagram.
C) a quality loss function.
D) a cause-and-effect diagram.
E) a flowchart. - ✔️✔️A) a Pareto chart.
The transportation model, when applied to location analysis:
A) minimizes total fixed costs.
B) minimizes total production and transportation costs.
C) minimizes total transportation costs.
D) maximizes revenues.
E) minimizes the movement of goods. - ✔️✔️B) minimizes total production and
transportation costs.
Which of the following is true regarding value engineering?
A) Value engineering occurs only after the product is selected and designed.
B) Value engineering creates fragile design.
C) Value engineering is oriented toward improvement of design.
D) Value engineering occurs during production when it is clear the product is a success.
E) Value engineering can save substantial amounts of product cost, but quality suffers. -
✔️✔️C) Value engineering is oriented toward improvement of design.
Which of the following typically shows the hierarchy of components, their description,
and the quantity of each required to make one unit of a product?
A) an engineering drawing
B) an assembly drawing
C) a bill of material
D) an assembly chart
E) a route sheet - ✔️✔️C) a bill of material
According to PCN analysis, service operations exist only within the area(s) of:
A) independent processing.
B) independent processing and surrogate interaction.
C) independent processing and direct interaction.
D) surrogate interaction and direct interaction.
E) independent processing, surrogate interaction, and direct interaction. - ✔️✔️D)
surrogate interaction and direct interaction.
, A company is deciding if it should design an advertising system for use on Twitter©. The
first option is to skip out on designing, with no net costs or gains. The second option is
System A, which would result in additional sales of either $50,000 under good
conditions or $10,000 under bad conditions. The final choice is System B, which would
increase sales by $20,000 under both good and bad conditions. Suppose that good
conditions are twice as likely as bad conditions. Which option should the company
pursue if developing a system costs $25,000?
A) Develop System A
B) Develop System B
C) Do nothing
D) Develop System A and System B
E) Not enough data are given to support a decision - ✔️✔️A) Develop System A
________ is used to rank a company's products to determine which products represent
the best use of the firm's resources, or, perhaps, to determine which products are to be
eliminated.
A) Value analysis
B) Value engineering
C) Financial analysis
D) Product-by-value analysis
E) Product cost justification - ✔️✔️D) Product-by-value analysis
In location planning, environmental regulations, cost and availability of utilities, and
taxes are:
A) global factors.
B) country factors.
C) regional/community factors.
D) site-related factors.
E) none of the above. - ✔️✔️C) regional/community factors.
________ and ________ are to key country success factors as ________ and
________ are to key region success factors.
A) Cultural issues, location of markets; site size and cost, zoning restrictions
B) Exchange rates, labor availability; site size and cost, environmental impact
C) Labor cost, currency risk; government incentives, proximity to customers
D) Land costs, proximity to customers; labor cost, air and rail systems
E) All of the above are accurate relationships. - ✔️✔️C) Labor cost, currency risk;
government incentives, proximity to customers
All of the following costs are likely to decrease as a result of better quality EXCEPT:
____
A) customer dissatisfaction costs. B) inspection costs. C) scrap costs.
D) warranty and service costs. E) maintenance costs. - ✔️✔️E) maintenance costs.
Which of the four major categories of quality costs is particularly hard to quantify? ____
A production manager at a pottery factory has noticed that about 70 percent of defects
result from impurities in raw materials, 15 percent result from human error, 10 percent
from machine malfunctions, and 5 percent from a variety of other causes. This manager
is most likely using: ____
A) a Pareto chart.
B) a scatter diagram.
C) a quality loss function.
D) a cause-and-effect diagram.
E) a flowchart. - ✔️✔️A) a Pareto chart.
The transportation model, when applied to location analysis:
A) minimizes total fixed costs.
B) minimizes total production and transportation costs.
C) minimizes total transportation costs.
D) maximizes revenues.
E) minimizes the movement of goods. - ✔️✔️B) minimizes total production and
transportation costs.
Which of the following is true regarding value engineering?
A) Value engineering occurs only after the product is selected and designed.
B) Value engineering creates fragile design.
C) Value engineering is oriented toward improvement of design.
D) Value engineering occurs during production when it is clear the product is a success.
E) Value engineering can save substantial amounts of product cost, but quality suffers. -
✔️✔️C) Value engineering is oriented toward improvement of design.
Which of the following typically shows the hierarchy of components, their description,
and the quantity of each required to make one unit of a product?
A) an engineering drawing
B) an assembly drawing
C) a bill of material
D) an assembly chart
E) a route sheet - ✔️✔️C) a bill of material
According to PCN analysis, service operations exist only within the area(s) of:
A) independent processing.
B) independent processing and surrogate interaction.
C) independent processing and direct interaction.
D) surrogate interaction and direct interaction.
E) independent processing, surrogate interaction, and direct interaction. - ✔️✔️D)
surrogate interaction and direct interaction.
, A company is deciding if it should design an advertising system for use on Twitter©. The
first option is to skip out on designing, with no net costs or gains. The second option is
System A, which would result in additional sales of either $50,000 under good
conditions or $10,000 under bad conditions. The final choice is System B, which would
increase sales by $20,000 under both good and bad conditions. Suppose that good
conditions are twice as likely as bad conditions. Which option should the company
pursue if developing a system costs $25,000?
A) Develop System A
B) Develop System B
C) Do nothing
D) Develop System A and System B
E) Not enough data are given to support a decision - ✔️✔️A) Develop System A
________ is used to rank a company's products to determine which products represent
the best use of the firm's resources, or, perhaps, to determine which products are to be
eliminated.
A) Value analysis
B) Value engineering
C) Financial analysis
D) Product-by-value analysis
E) Product cost justification - ✔️✔️D) Product-by-value analysis
In location planning, environmental regulations, cost and availability of utilities, and
taxes are:
A) global factors.
B) country factors.
C) regional/community factors.
D) site-related factors.
E) none of the above. - ✔️✔️C) regional/community factors.
________ and ________ are to key country success factors as ________ and
________ are to key region success factors.
A) Cultural issues, location of markets; site size and cost, zoning restrictions
B) Exchange rates, labor availability; site size and cost, environmental impact
C) Labor cost, currency risk; government incentives, proximity to customers
D) Land costs, proximity to customers; labor cost, air and rail systems
E) All of the above are accurate relationships. - ✔️✔️C) Labor cost, currency risk;
government incentives, proximity to customers
All of the following costs are likely to decrease as a result of better quality EXCEPT:
____
A) customer dissatisfaction costs. B) inspection costs. C) scrap costs.
D) warranty and service costs. E) maintenance costs. - ✔️✔️E) maintenance costs.
Which of the four major categories of quality costs is particularly hard to quantify? ____
