Accounting
Anthropology
Archaeology
Art History
Banking
Biology & Life Science
Business
Business Communication
Business Development
Business Ethics
Business Law
Chemistry
Communication
Computer Science
Counseling
Criminal Law
Curriculum & Instruction
Design
Earth Science
Economic
Education
Engineering
Finance
History & Theory
Humanities
Human Resource
International Business
Investments & Securities
Journalism
Law
Management
Marketing
Medicine
Medicine & Health Science
Nursing
Philosophy
Physic
Psychology
Real Estate
Science
Social Science
Sociology
Special Education
Speech
Visual Arts
Business Development
Q:
What is sometimes referred to as rated capacity?
A) efficiency
B) utilization
C) effective capacity
D) expected output
E) design capacity
Q:
Job shops are best suited for
a. short production runs.
b. long production runs.
c. special-purpose equipment.
d. standardized products.
Q:
A useful tactic for increasing capacity is to redesign a product in order to facilitate more throughput.
Q:
Rajs company can either make the components or buy them. He should decide to make the components rather than buy them from a supplier
a. when utilization of plant capacity permits more economical production.
b. when an outside supplier specializes in the production of that component.
c. if in-house operations can concentrate on the firm's specialty--the finished product.
d. if the risk of equipment obsolescence can be transferred to the supplier.
Q:
Price changes are useful for matching the level of demand to the capacity of a facility.
Q:
The approach that recognizes the assets and activities of the company are interdependent and should be managed so as to maximize the companys performance is
a. capacity management.
b. lean production.
c. synchronous management.
d. waste-less production.
Q:
Expected output is sometimes referred to as rated capacity.
Q:
Of the following, which is of greatest concern to a production manager?
a. a bottleneck
b. capacity waste
c. a constraint
d. overproduction
Q:
Capacity decisions are based on technological concerns, not demand forecasts.
Q:
The basic quality tool that Kaoru Ishikawa recognized that identifies potential causes of a problem while sorting them into categories is the
a. check sheet.
b. cause-and effect diagram.
c. control chart.
d. parento chart.
Q:
If a small plumbing company is installing a TQM program, management should be aware that
a. quality must become a very important goal of the entire business.
b. ISO 9000 will be the controlling criterion.
c. costs cannot be allowed to limit quality goals.
d. acceptance sampling may be necessary.
Q:
Design capacity is the theoretical maximum output of a system in a given period under ideal conditions.
Q:
Utilization is the number of units a facility can hold, receive, store, or produce in a period of time.
Q:
Rather than rely on the bartender to use the correct proportions of ingredients in mixed drinks, the owner installed a drink-mixing machine that automatically selects and measures the ingredients into the glass. This method is a type of:
a. idiot-proofing.
b. poka-yoke.
c. kan-ban
d. robotics.
Q:
Pierre's Motorized Pirogues and Mudboats is setting up an acceptance sampling plan for the special air cleaners he manufactures for his boats. His specifications, and the resulting plan, are shown on the POM for Windows output below. Pierre wants acceptance sampling to remove ALL defects from his production of air cleaners. Explain carefully why this won't happen.
Q:
Pierre's Motorized Pirogues and Mudboats is setting up an acceptance sampling plan for the special air cleaners he manufactures for his boats. His specifications, and the resulting plan, are shown on the POM for Windows output below. Pierre is a bit confused. He mistakenly thinks that acceptance sampling will reject all bad lots and accept all good lots. Explain why this will not happen.
Q:
Pierre's Motorized Pirogues and Mudboats is setting up an acceptance sampling plan for the special air cleaners he manufactures for his boats. His specifications, and the resulting plan, are shown on the POM for Windows output below. In relatively plain English (someone else will translate for Pierre), explain exactly what he will do when performing the acceptance sampling procedure, and what actions he might take based on the results.
Q:
The ABC method of inventory management is founded on the notion that
a. some inputs are more valuable or more critical to the firms operations than others.
b. inventory costs should be cut to an absolute minimum by reducing inventory on hand.
c. a firm should know its economic order quantity at all times.
d. the cost of placing an order is a fixed cost.
Q:
The most important reason why a small business should build good relationships with large suppliers is
a. forecasting can be made easier with the suppliers input.
b. it will make the small business stand out from other firms buying from the supplier.
c. the need for the small business to have prices as low as possible on purchases.
d. the relationship can make the small business more competitive.
Q:
What do the terms producer's risk and consumer's risk mean?
Q:
Repetitive operations in manufacturing use
a. general-purpose machines.
b. job-order schedules.
c. highly specialized equipment.
d. short production runs.
Q:
What four elements determine the value of average outgoing quality?
Q:
Linda creates websites for her customers. Each one is designed to meet the specific needs of the customer. This type of manufacturing is called:
a. continuous manufacturing.
b. flexible manufacturing.
c. project manufacturing.
d. repetitive manufacturing.
Q:
Define consumer's risk. Is it a Type I or Type II error? What is the symbol for its value?
Q:
A category C item in the ABC method of inventory management for a college bookstore would be
a. pens.
b. magazines.
c. shirts.
d. textbooks.
Q:
What is the AOQ of an acceptance sampling plan?
Q:
Work groups tend to be better at coordination than specialization.
a. True
b. False
Indicate the answer choice that best completes the statement or answers the question.
Q:
What is the purpose of the Operating Characteristics curve?
Q:
Purchasing and inventory management share the same objective by contributing to profitable operations.
a. True
b. False
Q:
What is acceptance sampling?
Q:
The ________ is the percentage defective in an average lot of goods inspected through acceptance sampling.
Q:
Unless a firm is planning to market products in Europe or supply components to U.S. automakers, getting ISO 9000 certification is a waste of time and money.
a. True
b. False
Q:
The ________ is the lowest level of quality that we are willing to accept.
Q:
The just-in-time inventory system classifies inventory into three categories based on value.
a. True
b. False
Q:
A(n) ________ is a graph that describes how well an acceptance plan discriminates between good and bad lots.
Q:
While large corporations have access to data mining techniques for insights into customer buying patterns, small companies typically cannot afford the software.
a. True
b. False
Q:
________ is a method of measuring samples of lots or batches of product against predetermined standards.
Q:
Operations refers to the processes used to create and deliver a good or service.
a. True
b. False
Q:
Which of the following is TRUE regarding the average outgoing quality level?
A) An AOQ value of 1 is ideal, because all defects have been removed.
B) AOQ is always greater than AQL but less than LTPD.
C) AOQ rises (worsens) following inspection of failed lots.
D) AOQ is very low (very good) for extremely poor quality lots.
E) None of the above is true.
Q:
The importance of purchasing rests on three areas: quality, service, and cost.
a. True
b. False
Q:
Powerful companies, whether they are large or small, gain power when satisfying customer needs and wants better than their competitors.
a. True
b. False
Q:
Which of the following statements about acceptance sampling is TRUE?
A) The steeper an OC curve, the better it discriminates between good and bad lots.
B) Acceptance sampling removes all defective items.
C) Acceptance sampling of incoming lots is replacing statistical process control at the supplier.
D) Acceptance sampling occurs continuously along the assembly line.
E) All of the above are true.
Q:
When a lot has been accepted by acceptance sampling, we know that:
A) it has more defects than existed before the sampling.
B) it has had all its defects removed by 100% inspection.
C) it will have the same defect percentage as the LTPD.
D) it has no defects present.
E) All of the above are false.
Q:
In order to achieve market success, a firm merely needs to concentrate on either providing an excellent product or service, or devising an insightful marketing strategy.
a. True
b. False
Q:
An acceptance sampling plan is to be designed to meet the organization's targets for product quality and risk levels. Which of the following is true?
A) n and c determine the AQL.
B) AQL, LTPD, α and β collectively determine n and c.
C) n and c are determined from the values of AQL and LTPD.
D) α and β are determined from the values of AQL and LTPD.
E) None of the above is true.
Q:
Measuring quality in a service business is easier than measuring quality in a production business. All you have to do is ask the customer.
a. True
b. False
Q:
In most acceptance sampling plans, when a lot is rejected, the entire lot is inspected and all defective items are replaced. When using this technique the AOQ:
A) worsens (AOQ becomes a larger fraction).
B) improves (AOQ becomes a smaller fraction).
C) is not affected, but the AQL is improved.
D) is not affected.
E) falls to zero.
Q:
The goal of lean production is to use the minimum amount of resources necessary to achieve a total bundle of satisfaction for the customer.
a. True
b. False
Q:
A Type II error occurs when:
A) a good lot is rejected.
B) a bad lot is accepted.
C) the population is worse than the LTPD.
D) the proportion of defectives is very small.
E) none of the above
Q:
Cooperative purchasing organizations are firms that specialize in the purchasing function and provide this service to small businesses.
a. True
b. False
Q:
Event management companies use project manufacturing.
a. True
b. False
Q:
A Type I error occurs when:
A) a good lot is rejected.
B) a bad lot is accepted.
C) the number of defectives is very large.
D) the population is worse than the AQL.
E) none of the above
Q:
Technology can adequately replace the human touch when the needs of the customer involve large amounts of data.
a. True
b. False
Q:
Under which of the following situations will the average outgoing quality (AOQ) decrease?
A) The true percentage defective of the lot increases.
B) The number of items in the sample decreases.
C) The number of items in the lot decreases.
D) The probability of accepting the lot for a given sample size and quantity defective increases.
E) The difference between the number of items in the lot and the number of items in the sample increases.
Q:
Because close interactions with customers allow employees to better understand them, management should be sent in the field periodically.
a. True
b. False
Q:
Which of the following is true regarding the relationship between AOQ and the true population percent defective?
A) AOQ is greater than the true percent defective.
B) AOQ is the same as the true percent defective.
C) AOQ is less than the true percent defective.
D) There is no relationship between AOQ and the true percent defective.
E) The relationship between these two cannot be determined.
Q:
Bottlenecks in a process are responsible for slower throughput times for the entire process.
a. True
b. False
Q:
Producer's risk is the probability of:
A) accepting a good lot.
B) rejecting a good lot.
C) rejecting a bad lot.
D) accepting a bad lot.
E) none of the above.
Q:
An operating characteristics curve shows:
A) upper and lower product specifications.
B) product quality under different manufacturing conditions.
C) how the probability of accepting a lot varies with the population percent defective.
D) when product specifications don't match process control limits.
E) how operations affect certain characteristics of a product.
Q:
The cost of getting quality right may be more than a small business can bear.
a. True
b. False
Q:
An operating characteristic (OC) curve describes:
A) how many defects per unit are permitted before rejection occurs.
B) the sample size necessary to distinguish between good and bad lots.
C) the most appropriate sampling plan for a given incoming product quality level.
D) how well an acceptance sampling plan discriminates between good and bad lots.
E) none of the above.
Q:
Obsolescence is a cost of inventory.
a. True
b. False
Q:
Acceptance sampling is usually used to control:
A) the number of units of output from one stage of a process that are then sent to the next stage.
B) the number of units delivered to the customer.
C) the quality of work-in-process inventory.
D) incoming lots of purchased products.
E) all of the above.
Q:
Which of the following statements about acceptance sampling is true?
A) Acceptance sampling draws a sample from a population of items, tests the sample, accepts the entire population if the sample is good enough, and rejects it if the sample is poor enough.
B) The sampling plan contains information about the sample size to be drawn and the critical acceptance or rejection numbers for that sample size.
C) The steeper an operating characteristic curve, the better its ability to discriminate between good and bad lots.
D) All of the above are true.
E) All of the above are false.
Q:
Continuous manufacturing refers to assembly lines that run 24 hours a day, seven days a week.
a. True
b. False
Q:
Acceptance sampling:
A) may involve inspectors taking random samples (or batches) of finished products and measuring them against predetermined standards.
B) may involve inspectors taking random samples (or batches) of incoming raw materials and measuring them against predetermined standards.
C) is more economical than 100% inspection.
D) may be either of a variable or attribute type, although attribute inspection is more common in the business environment.
E) All of the above are true.
Q:
Buying components is preferable to making them when it is necessary to protect a secret design for a seasonal item.
a. True
b. False
Q:
An acceptance sampling plan's ability to discriminate between low quality lots and high quality lots is described by:
A) a Gantt chart.
B) the Central Limit Theorem.
C) a process control chart.
D) an operating characteristic curve.
E) a range chart.
Q:
Firms who pay attention to operating details are stronger than those who empower their customers for quality improvement.
a. True
b. False
Q:
Acceptance sampling's primary purpose is to:
A) estimate process quality.
B) identify processes that are out of control.
C) detect and eliminate defectives.
D) decide if a lot meets predetermined standards.
E) determine whether defective items found in sampling should be replaced.
Q:
A demand management strategy is the use of pagers by restaurants to notify persons on the waiting list that a table is ready.
a. True
b. False
Q:
Acceptance sampling:
A) is the application of statistical techniques to the control of processes.
B) was developed by Walter Shewhart of Bell Laboratories.
C) is used to determine whether to accept or reject a lot of material based on the evaluation of a sample.
D) separates the natural and assignable causes of variation.
E) is another name for 100% inspection.
Q:
A genuine concern for customer needs and customer satisfaction can assist the TQM efforts of a small business.
a. True
b. False
Q:
Consumer's risk is the probability of:
A) accepting a good lot.
B) rejecting a good lot.
C) rejecting a bad lot.
D) accepting a bad lot.
E) none of the above
Q:
The quality of a finished product depends on the quality of the raw materials used to make it.
a. True
b. False
Q:
The steeper an OC curve, the better it discriminates between good and bad lots.
Q:
When Kentucky Chocolates mixes ingredients for their candies, this act is part of operations.
a. True
b. False
Q:
The acceptable quality level (AQL) is the average level of quality we are willing to accept.
Q:
The Supply Chain Operations Reference model is a list of five critical factors when assessing a strategic alliance.
a. True
b. False
Q:
An acceptance sampling plan must define "good lots" and "bad lots" and specify the risk level associated with each one.