Supply chain exam 2 final
Discipline: Business
Type of Paper: Question-Answer
Academic Level: Undergrad. (yrs 3-4)
Paper Format: APA
Question
Business/Production/operations Management
Cost of inspectors, testing, test equipment,and labs are examples of appraisal costs.
ISO standards apply only to manufacturingorganizations.
Serviceability, Conformance and Reliabilityare dimensions of product quality
When considering service quality, convenienceoften is a major factor.
If the majority of service customers aresatisfied, it is likely that all service customers will be satisfied.
Customer expectations tend to change overtime affecting their perception of service quality.
Convenience, Reliability and Assurance aredimensions of service quality.
Broadlydefined, quality refers to the ability of a product or service to occasionallymeet or exceed customer expectations
An organizationachieves quality by consistently meeting their competitor's standards.
Because'courtesy' is subjective, it can't be considered a factor in service quality.
Userinstructions and follow-up services after delivery are important elements ofoverall product or service quality.
Thedimensions of product and service quality are too abstract to be appliedoperationally.
Processmapping is part of process improvement.
Recentchanges to ISO guidelines stress continuous improvement regardless of how goodyou currently are.
Poorquality has a positive effect on productivity because it usually takes longerto produce a good part.
Qualityof conformance refers to the degree to which goods and services conform to theintent of the designers as documented in the specifications.
Qualityof design refers to the degree to which goods and services achieve the intentof the designers.
Qualitycertification refers to a process of 100 percent inspection to catch alldefective products before they leave the company; this allows every item to becertified defect free.
ISOstandards aid in transferring technology to developing countries.
Firmsthat wish to do business with the European Community can benefit from having aquality management system that meets ISO 9000 standards.
Regardless of superior quality, consumerswon't pay premium prices.
High Quality and low prices are bothconsidered to be dimensions of quality.
Business organizations achieving good qualitybenefit in a variety of ways, including a positive reputation for quality,increased customer loyalty, and lower production costs.
Total quality management is a collection oftechniques, such as quality control charts, ISO 9000, and quality functiondeployment
One criticism of total quality management isthat it may produce blind pursuit of quality to the neglect of other priorityconsiderations.
A major obstacle to implementing TQM can bean emphasis on long-term financial results
The term "quality at the source"refers primarily to the practice of requiring each of our vendors to providequality parts and materials
TQM is not just a collection of techniques.It is rather a whole new attitude toward quality.
When problems arise in a total qualitymanaged organization, it is important to assign blame and punish the workerresponsible for causing the problem.
Total quality management attempts to involveeveryone in an organization in the effort to achieve quality.
TQM expands the traditional view of qualitybeyond looking only at the quality of the final product or service to lookingat the quality of every aspect of the process
Zero defects requires 100% inspection of thefinal product.
Suppliers are not included in qualityassurance and quality improvement efforts in TQM; they should worry about theirown problems.
Three key philosophies in TQM are continuousimprovement, involvement of everyone in the organization, and customersatisfaction
So long as quality input resources are usedto make a product, we can expect quality output from the process.
Quality at the source means returning alldefects to the source - our vendors.
Continuous improvement attempts to achievemajor breakthroughs in product or service quality.
The customer is the focal point and customersatisfaction is the driving force in quality management.
Six sigma programs have both management andtechnical components
The Baldrige award can only be won bymanufacturing organizations.
Patterns of data on a control chart suggestthat the process may have non-random variation.
Non-random variation is likely whenever allobservations are between the LCL and UCL.
The best way to assure quality is to useextensive inspection and control charts.
Approving the effort that occurs during theproduction process is known as acceptance sampling.
Statistical Process Control is themeasurement of rejection in the final product
The optimum level of inspection occurs whenwe catch at least 98.6 percent of the defects.
The optimum level of inspection minimizes thesum of inspection costs and the cost of passing defectives
High-cost, low-volume items often requirecareful inspection since we make them so infrequently
Low-cost, high-volume items often requiremore intensive inspection.
The amount of inspection we choose can rangefrom no inspection at all to inspecting each item numerous times.
The amount of inspection needed is governedby the costs of inspection and the expected costs of passing defective items.
Quality control is assuring that processesare performing in an acceptable manner.
Quality control is assuring that processesare performing in an acceptable manner.
Larger samples will require wider control limits because there is moredata.
Attribute data are counted, variable data aremeasured.
Approximately 99.7% of sample means will fallwithin ± two standard deviations of the process mean if the process is undercontrol.
The sampling distribution can be assumed tobe approximately normal even when the underlying process distribution is notnormally distributed.
Processes that are in control eliminatevariations.
A lower control limit must by definition be avalue less than an upper control limit.
Attributes need to be measured, variable datacan be counted
The purpose of statistical process control isto ensure that historical output is random.
False
A process that exhibits random variabilitywould be judged to be out of control.
Concludinga process is out of control when it is not is known as a Type I error
"Assignable variation" is variationdue to a specific cause, such as tool wear.
Range control charts are used to monitorprocess central tendency.
Range charts are used mainly with attributedata.
Range charts and p-charts are both used forvariable data.
A p-chart is used to monitor the fraction ofdefectives in the output of a process
A c-chart is used to monitor the number ofdefects per unit for process output
"Process capability" compares"process variability" to the "tolerances."
The output of a process may or may notconform to specifications even though the process may be statistically "incontrol."
Type I and Type II errors refer to themagnitude of variation from the standard.
The greater the capability ratio, the higherthe rejects
"Quality of conformance" isconcerned with whether a product or service conforms to its specifications.
When a process is not centered, itscapability is measured in a slightly different way. The symbol for this case isCpk.
The process capability index (indicated by Cpk) can be used only when theprocess is centered.
The output of a process may or may notconform to specifications even though the process may be statistically "incontrol."
A c-chart is used to monitor the number ofdefects per unit for process output.
false
"Process capability" compares"process variability" to the "tolerances.
The optimum project length in crashing occurswhere the cumulative cost of crashing equals savings in the indirect costs.
Only activities on the critical path areinitial candidates for crashing.
Project managers are sometimes able to reduceindirect project costs by increasing direct costs.
The total cost of crashing any one activityshould never exceed 20% of the total cost of the original project.
Although PERT and CPM were originallydeveloped for somewhat different types of projects, they are now nearlyidentical in terms of analysis and procedures
The main function of dummy activities is toclarify relationships in network diagrams.
A disadvantage of activity-on-node diagramsis the occasional need for dummy activities
The higher the node number, the longer theactivity will take.
The network diagram describes sequentialrelationships among major activities on a project
The path in a network with the average lengthof time to completion is called the critical path.
The sum of times of the longest path in anetwork indicates expected project completion time, and the activitiesrepresent the critical activities.
In PERT, the expected project duration willnever exceed the expected duration of the critical path.
True
In PERT, the path with the fewest activitiesis referred to as the critical path.
Most likely time generally is more thanoptimistic time.
Simulation can be used for cases in whichnetwork activity times are dependent.
Path probabilities are calculated by dividingpath mean by path standard deviations.
The costs associated with risk events tend tobe lower near the beginning of a project, and higher near the end of theproject.
The higher the node number, the longer theactivity will take.
The latest starting time for an activity isequal to the latest finish time minus the activity time
The earliest finish time for an activity isequal to the latest finish time minus the activity slack.
The earliest finish time for an activity isequal to the latest finish time minus the activity time.
An advantage of Gantt charts in projectmanagement is that they identify which activities can be delayed withoutdelaying the overall project.
A Gantt chart is built using establishedprecedence relationships.
Project management software eliminatesconflicts when there are shared resources
Good project management is especiallyimportant with virtual teams.
.True
One way that project management differs frommanagement of more traditional activities is because of the limited lifetime ofprojects.
Once a project is approved and underway,project managers are only responsible for effectively managing time and costswhich, if done well, will assure project completion on time and on budget
Matrix organizations transfer control ofworkers to project managers for the duration of the project.
The task of identifying risks should involveeveryone associated with the project.
Some organizations use a matrix organizationto integrate the activities of specialists within a functional framework.
Slack time is equal to LS-ES or LF-EF
Activities not on the critical path have aslack time equal to zero
If two consecutive activities have sharedslack, this means that each of them can use only half of the slack withoutdelaying completion of the project.
Many activities have slack time; if we addthese slack times together, this represents the potential improvement in earlycompletion for the project.
If two consecutive activities on the samepath each have two days of activity slack, this means that each of them can bedelayed by two days without delaying the project.
False
If the expected length of a path is more than2.5 standard deviations less than a desired project completion time, the pathwould not be a factor in assessing the probability of finishing the project ontime.
False
In order to determine the probability oftimely project completion, it is sometimes necessary to take into account pathsother than the critical path.
The probability that the project will gobeyond the desired time is equal to one minus the joint probability that allpaths will be completed within the desired time.
Deterministic networks use three timeestimates - shortest, most likely and longest - for each activity in order tobest determine the activity's estimated time
The standard deviation of the critical pathis equal to the sum of the standard deviations of all of the activities on thecritical path.
If customer satisfaction doesn'talways lead to customer loyalty, firms may need to focus additional effort on__________ strategies.
reprocessing
repatriation
retention
rework
remediation
Before a dimension of quality canbe made operationally useful, it must be restated in some ___________ form.
measurable
certifiable
manipulative
marketable
qualitative
The 4 dimensions of quality thatare sometimes used to determine fitness for use of a product are _.
special feats, conformance, reliability, and durability
performance, special feats, durability, and service aftersale
performance, special feats, conformance, and reliability
performance, conformance, reliability, and durability
special feats, conformance, durability, and service after sale
A quality improvement techniquethat involves the sharing of thoughts and ideas in a way that encouragesunrestrained collective thinking is:
a check sheet
a control chart
Pareto analysis
brainstorming
benchmarking
A tool that depicts processvariation graphically is a(n) _________.
Flow Chart
Check list
Affinity diagram
Control Chart
Relationship diagram
A quality circle is ________.
responsible for quality
total quality control
an inspection stamp found on meat
a group of employees
none of these
The quality control improvementtool which distinguishes between the "important few" and the"trivial many" is __________.
check sheets
Pareto analysis
brainstorming
cause-and-effect diagrams
fail-safe methods
The qualitycontrol improvement tool that resembles a "fishbone" is ________.
Paretoanalysis
fail-safemethods
check sheets
brainstorming
cause-and-effectdiagrams
A tool that is not used for qualitymanagement is ________.
Flowchart
Redesign
Histogram
Perato Analysis
Check sheets
The tool that is useful in thecollection and organization of data is:
a control chart
a Pareto chart
a check sheet
a flow chart
none of these
The tool that is useful indocumenting the current process is:
a flow chart
a check sheet
a simo chart
a control chart
a Pareto chart
A chart showing the number ofoccurrences by category would be used in:
Pareto analysis
interviewing
cause-and-effect diagrams
benchmarking
none of these
The process of identifying otherorganizations that are best at some facet of your operations, and then modelingyour organization after them is known as:
industrial espionage
copycatting
employee empowerment
benchmarking
continuous improvement
Cause-and-effect diagrams aresometimes called:
Pareto diagrams
fishbone (Ishikawa) diagrams
run charts
control charts
none of these
Focusing attention on the mostimportant problem areas is referred to as:
Pareto analysis
quality circles
cause-and-effect analysis
quality assurance
brainstorming
Deciding how much to invest in theprevention of defects can be analyzed using ________.
Weighted Factor Analysis
Breakeven Analysis
EVPI
Net Present Value
Return on Quality
Which isn't a cost of quality?
Extended Service Contracts
External failure
Prevention cost
Internal failure
Appraisal costs
Extended Service Contracts
Costs of inspectors, testing, testequipment, and labs are examples of ________.
prevention costs
internal failure costs
replacement costs
appraisal costs
external failure costs
Warranty service, processing ofcomplaints, and costs of litigation are examples of ________.
replacement costs
appraisal costs
internal failure costs
prevention costs
external failure costs
Loss of business, liability,productivity and costs are consequences of _______.
Labor Unions
Poor Quality
Robotics
Globalization
Micro-factories
Quality planning andadministration, quality training, and quality control procedures are examplesof _______.
prevention costs
external failure costs
appraisal costs
internal failure costs
replacement costs
Lost production time, scrap, andrework are examples of ________.
replacement costs
appraisal costs
prevention costs
external failure costs
internal failure costs
Focusing a supply chain on________________ is a modern way of ensuring high quality inputs and a readysupply of process-improvement ideas.
ISO 14000 customers
close, collaborative ties with suppliers
suppliers that emphasizedcontinuous-flow production
lowest cost-per unit sourced
partners pursuing similar strategies
Mngrs have obligations to varietyof stkhlders, shareholders, employees and customr. Considering outsourcing productionto offshore supplrs, managers have to weigh .
I) Cost benefits that makeshareholders wealthier
II) Quality issues that make firmsless productive and riskier
III) The investm already inrelationships with existing suppliers
II
I, II and III
I and II only
I
III
Giving workers responsibility forquality improvements and authority to make changes is known as:
employee empowerment
benchmarking
passing the buck
employee involvement
continuous improvement
Management behaviors supporting anorganizational culture that encourages continuous improvement include which ofthe following?
(I) devel a vision statement forthe org
(II) devel a reward system thatpromotes the philos
(III) institute continuous trainingprograms
(IV) make decisions that adhere tothe philosophy
I, II, III, and IV
I, II, and IV
I and III
II, III, and IV
II and IV
TQM stands for:
Total Quantity Measurement
Total Quality Management
Tactical Quality Measurements
Taguchie Quality Methods
The Quality Matrix
Which of thefollowing is an element of TQM?
continuousimprovement
competitive benchmarking
employee empowerment
team approach
All of these
Fixing a problem will often costmoney; to minimize these costs it is best to find and fix the problem _______.
during the design phase
regardless of when you fix the problem, costs are about thesame
just before we begin the first production operation
immediately after we complete the last operation
just before shipping our product to the customer
The Baldrige award is based onseven categories. Which is not one of those?
Relative profitability
Human resource focus
Strategic planning
Leadership
Information and Analysis
The purpose of the Malcolm BaldrigeNational Quality Award is to _______.
stimulate efforts to improve quality
recognize quality achievements of U.S. companies
publicize successful quality programs
All of these
distribute the grant money available for improved quality
The Deming Prize was established bythe _________.
World Trade Organization
American Statistical Association
North American Free Trade Association
American Quality Society
Japanese
Which of thefollowing is not a goal of process improvement?
increasingcustomer satisfaction
reducing waste
achievinghigher quality
identifyingthe cause of a problem
none of theseare the goals
In order for TQM to be successful,it is essential that most of the organization be _________.
under contract
members of quality circles
ISO certified
in agreement with the philosophy and itsgoals
trained in error detection techniques
The typicaldifference between "quality circles" and "continuous improvementteams" is ________.
There is nodifference-they are just the same
Quality circles work on product designonly
Continuous improvement teams work onproduct and process design
Continuous improvement teams use onlyengineers while quality circles use just the workers doing the work
the amount of employee empowerment
Which of the following qualitycontrol sample statistics indicates a quality characteristic that is anattribute?
variance
mean
proportion
standard deviation
range
A time-ordered plot ofrepresentative sample statistics is called a:
Control Chart
Gantt chart
SIMO-chart
Standard deviation table
Up-Down Matrix
A control chart used to monitor theprocess mean is the:
X chart
p-chart
Gantt chart
c-chart
R-chart
A control chart used to monitor thefraction of defectives generated by a process is the:
x-bar chart
Gantt chart
c-chart
R-chart
p-chart
control chart used to monitor thenumber of defects per unit is the:
p-chart
chart
R-chart
Gantt chart
c-chart
A c-chart is used for:
fraction defective per unit
number of defects per unit
percent defective
ranges
means
A p-chart would be used to monitor_______.
the range of values
the fraction defective
dispersion in sample data
the number of defects per unit
average shrinkage
The probability of concluding thatassignable variation exists when only random variation is present is:
(I) the probability of a Type Ierror
(II) known as the alpha risk
(III) highly unlikely
(IV) the sum of probabilities inthe two tails of the normal distribution
I and IV
I, II, and IV
I and II
II and III
I, III, and IV
______ variation is a variation whosecause can be identified.
Statistical
Assignable
Random
Theoretical
Controllable
A time-ordered plot ofrepresentative sample statistics is called a:
Control Chart
Gantt chart
SIMO-chart
Standard deviation table
Up-Down Matrix
The purpose of control charts isto:
weed out defective items
distinguish between random variation andassignable variation in the process
provide meaningful work for qualityinspectors
determine if the output is withintolerances/specifications
estimate the proportion of output thatis acceptable
The range chart (R-chart) is mostlikely to detect a change in:
sample size
number defective
variability
mean
proportion
A process results in a few defectsoccurring in each unit of output. Long-run, these defects should be monitoredwith ___________.
R-charts
c-charts
p-charts
o-charts
x charts
The basis for a statistical processcontrol chart is a(the) __________.
sampling distribution
sample mean
control limit
sample range
process capability
The specifications for a product are 6 mm± 0.1 mm. The process is known to operate at a mean of 6.05 with a standarddeviation of 0.01 mm. What is the Cpkfor this process?
3.33
1.67
5.00
2.50
none of these
Organizations should work to improve process capability so thatquality control efforts can become more ________.
effective
widespread
efficient
necessary
unnecessary
Which of thefollowing is not characteristic of good risk management?
planning to eliminate chance events.
identifying potential chance events.
analyzing the consequences of chance events.
formulating contingency plans in theevent of chance events.
estimating the likelihood of chanceevents occurring.
Which of thefollowing is not typically treated as part of a project life cycle?
incubation
planning
maturity
alternative generation
feasibility analysis
Which of thefollowing is not a form of risk reduction in project management?
backup system
outsourcing
risk-sharing
scenario analysis
none of these
Once a project isunderway, the project manager usually is not responsible for effectivelymanaging:
the people
project priority
resources
costs
time
Projectmanagement differs from management of more traditional activities mainlybecause of:
its limited time frame
its unique, defined set of activities
its limited time frame and its unique, defined set ofactivities
the requirement for use of theappropriate resources
the need for planning and execution
Shorteningactivity durations is called:
Crashing
Null nodes
Expediting
Vendor management
Trade-off analysis
Gantt charts aremost closely associated with
MRP
Six Sigma
MRPII
JIT
PERT
Which of thefollowing is not a limitation of PERT and similar project-schedulingtechniques?
The use of a computer is essential forlarge projects.
One or more important activities may beomitted from the network.
Time estimates may contain a "fudgefactor."
They force the manager to organize andquantify information.
Precedence relationships may not all becorrect as shown.
Concerning PERTand CPM:
These are twodifferent names for essentially the same technique.
CPM tends to focus more on the criticalpath; PERT focuses on the parallel paths.
PERT gives a clearer indication ofactivity slack, while CPM gives a better picture of path slack.
Because of its recent discovery, muchless is known about CPM than PERT.
All of these are true
In a projectnetwork the critical path is the sequence of activities which has the:
greatest variance
most events
most activities
longest time
most nodes
Question 55,58
Which of thefollowing is not true about the use of dummy activities in projectnetworking?
They preserve the separate identities ofactivities.
They have an activity time varianceequal to zero.
They have an activity time equal tozero.
They are used in activities-on-nodes (AON) networkdiagrams.
They clarify precedence relationshipsamong activities.
A sequence ofactivities that leads from the starting node to the finishing node is called a_______.
Sequel
Path
Trail
Time line
Critical sequence
The advantage(s)a precedence diagram has over a Gantt chart is(are):
its ability to reveal relationshipsamong activities.
it can easily show networks.
its ability to reveal relationshipsamong activities and it can easily show networks.
its simplicity.
all of these
A popular toolfor planning and scheduling simple projects, and for initial planning on morecomplex projects, is the:
critical path method
program evaluation and review technique
activity-on-nodes network
Gantt chart
activity-on-arrows network
A method used forestablishing a logical framework for identifying the required activities forthe project is called:
crashing
planning matrix
PERT
Work breakdown structure
critical path analysis
A hierarchicallisting of what must be done in a project is called:
critical path
planning matrix
work breakdown structure (WBS)
crashing
PERT
Which of thefollowing would probably not involve the use of PERT?
preparing for the visit of a foreigndignitary
developing an advertising campaign for anew product
writing a poem
planning and constructing a new cityhall
designing andconstructing a subway system
Developing a work breakdown structure would be next to impossibleIf an activity isdetermined to be on the critical, that means that it, and perhaps other, willaffect project ____________.
conflict
duration
direct costs
quality
perform
Which of thefollowing are advantages of PERT?
(I) It is visual.
(II) It isautomatically updated.
(III) Activitiesthat need to be watched closely can be identified.
III only
I and II
II and III
I, II, and III
I andIII
Which of thefollowing are limitations of PERT?
(I) Timeestimates may include a fudge factor.
(II) Importantactivities may be overlooked.
(III) It is anafter-the-fact analysis.
II and III
I only
I and II
I and III
I, II, andIII
In projectnetwork analysis, "slack" refers to the difference between:
observed and predicted times
latest and earliest times
finish and start times
optimistic and pessimistic times
mean and modal times
Given thisinformation about activity 3-4: ES = 10, EF = 15, LS = 16, and LF = 21, we candetermine that the amount of slack associated with the activity is:
11
5
1
6
0