Supply chain exam 2 final

Discipline: Business

Type of Paper: Question-Answer

Academic Level: Undergrad. (yrs 3-4)

Paper Format: APA

Pages: 1 Words: 275

Question

Business/Production/operations Management

Cost of inspectors, testing, test equipment,and labs are examples of appraisal costs.

True

ISO standards apply only to manufacturingorganizations.

False

Serviceability, Conformance and Reliabilityare dimensions of product quality

True

When considering service quality, convenienceoften is a major factor.

True

If the majority of service customers aresatisfied, it is likely that all service customers will be satisfied.

false

Customer expectations tend to change overtime affecting their perception of service quality.

True

Convenience, Reliability and Assurance aredimensions of service quality.

true

Broadlydefined, quality refers to the ability of a product or service to occasionallymeet or exceed customer expectations

. False

An organizationachieves quality by consistently meeting their competitor's standards.

False

Because'courtesy' is subjective, it can't be considered a factor in service quality.

False

Userinstructions and follow-up services after delivery are important elements ofoverall product or service quality.

True

Thedimensions of product and service quality are too abstract to be appliedoperationally.

True

Processmapping is part of process improvement.

True

Recentchanges to ISO guidelines stress continuous improvement regardless of how goodyou currently are.

True

Poorquality has a positive effect on productivity because it usually takes longerto produce a good part.

false

Qualityof conformance refers to the degree to which goods and services conform to theintent of the designers as documented in the specifications.

True

Qualityof design refers to the degree to which goods and services achieve the intentof the designers.

False

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.

False

ISOstandards aid in transferring technology to developing countries.

True

Firmsthat wish to do business with the European Community can benefit from having aquality management system that meets ISO 9000 standards.

True

Regardless of superior quality, consumerswon't pay premium prices.

False

High Quality and low prices are bothconsidered to be dimensions of quality.

False

Business organizations achieving good qualitybenefit in a variety of ways, including a positive reputation for quality,increased customer loyalty, and lower production costs.

True

Total quality management is a collection oftechniques, such as quality control charts, ISO 9000, and quality functiondeployment

.False

One criticism of total quality management isthat it may produce blind pursuit of quality to the neglect of other priorityconsiderations.

True

A major obstacle to implementing TQM can bean emphasis on long-term financial results

.False

The term "quality at the source"refers primarily to the practice of requiring each of our vendors to providequality parts and materials

.False

TQM is not just a collection of techniques.It is rather a whole new attitude toward quality.

True

When problems arise in a total qualitymanaged organization, it is important to assign blame and punish the workerresponsible for causing the problem.

False

Total quality management attempts to involveeveryone in an organization in the effort to achieve quality.

True

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

.True

Zero defects requires 100% inspection of thefinal product.

False

Suppliers are not included in qualityassurance and quality improvement efforts in TQM; they should worry about theirown problems.

False

Three key philosophies in TQM are continuousimprovement, involvement of everyone in the organization, and customersatisfaction

.True

So long as quality input resources are usedto make a product, we can expect quality output from the process.

False

Quality at the source means returning alldefects to the source - our vendors.

False

Continuous improvement attempts to achievemajor breakthroughs in product or service quality.

False

The customer is the focal point and customersatisfaction is the driving force in quality management.

True

Six sigma programs have both management andtechnical components

.True

The Baldrige award can only be won bymanufacturing organizations.

false

Patterns of data on a control chart suggestthat the process may have non-random variation.

True

Non-random variation is likely whenever allobservations are between the LCL and UCL.

False

The best way to assure quality is to useextensive inspection and control charts.

False

Approving the effort that occurs during theproduction process is known as acceptance sampling.

False

Statistical Process Control is themeasurement of rejection in the final product

False

The optimum level of inspection occurs whenwe catch at least 98.6 percent of the defects.

False

The optimum level of inspection minimizes thesum of inspection costs and the cost of passing defectives

.True

High-cost, low-volume items often requirecareful inspection since we make them so infrequently

.true

Low-cost, high-volume items often requiremore intensive inspection.

False

The amount of inspection we choose can rangefrom no inspection at all to inspecting each item numerous times.

True

The amount of inspection needed is governedby the costs of inspection and the expected costs of passing defective items.

True

Quality control is assuring that processesare performing in an acceptable manner.

True

Quality control is assuring that processesare performing in an acceptable manner.

False

Larger samples will require wider  control limits because there is moredata.

False

Attribute data are counted, variable data aremeasured.

True

Approximately 99.7% of sample means will fallwithin ± two standard deviations of the process mean if the process is undercontrol.

False

The sampling distribution can be assumed tobe approximately normal even when the underlying process distribution is notnormally distributed.

True

Processes that are in control eliminatevariations.

False

A lower control limit must by definition be avalue less than an upper control limit.

True

Attributes need to be measured, variable datacan be counted

.false

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.

false

Concludinga process is out of control when it is not is known as a Type I error

.true

"Assignable variation" is variationdue to a specific cause, such as tool wear.

True

Range control charts are used to monitorprocess central tendency.

False

Range charts are used mainly with attributedata.

false

Range charts and p-charts are both used forvariable data.

False

A p-chart is used to monitor the fraction ofdefectives in the output of a process

.true

A c-chart is used to monitor the number ofdefects per unit for process output

.True

"Process capability" compares"process variability" to the "tolerances."

True

The output of a process may or may notconform to specifications even though the process may be statistically "incontrol."

False

Type I and Type II errors refer to themagnitude of variation from the standard.

False

The greater the capability ratio, the higherthe rejects

.false

"Quality of conformance" isconcerned with whether a product or service conforms to its specifications.

True

When a process is not centered, itscapability is measured in a slightly different way. The symbol for this case isCpk.

True

The process capability index (indicated by Cpk) can be used only when theprocess is centered.

False

The output of a process may or may notconform to specifications even though the process may be statistically "incontrol."

True

A c-chart is used to monitor the number ofdefects per unit for process output.

false


"Process capability" compares"process variability" to the "tolerances.

"True

The optimum project length in crashing occurswhere the cumulative cost of crashing equals savings in the indirect costs.

True

Only activities on the critical path areinitial candidates for crashing.

True

Project managers are sometimes able to reduceindirect project costs by increasing direct costs.

True

The total cost of crashing any one activityshould never exceed 20% of the total cost of the original project.

False

Although PERT and CPM were originallydeveloped for somewhat different types of projects, they are now nearlyidentical in terms of analysis and procedures

.True

The main function of dummy activities is toclarify relationships in network diagrams.

True

A disadvantage of activity-on-node diagramsis the occasional need for dummy activities

.False

The higher the node number, the longer theactivity will take.

False

The network diagram describes sequentialrelationships among major activities on a project

.True

The path in a network with the average lengthof time to completion is called the critical path.

False

The sum of times of the longest path in anetwork indicates expected project completion time, and the activitiesrepresent the critical activities.

True

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.

False

Most likely time generally is more thanoptimistic time.

True

Simulation can be used for cases in whichnetwork activity times are dependent.

True

Path probabilities are calculated by dividingpath mean by path standard deviations.

False

The costs associated with risk events tend tobe lower near the beginning of a project, and higher near the end of theproject.

True

The higher the node number, the longer theactivity will take.

False

The latest starting time for an activity isequal to the latest finish time minus the activity time

.True

The earliest finish time for an activity isequal to the latest finish time minus the activity slack.

True

The earliest finish time for an activity isequal to the latest finish time minus the activity time.

False

An advantage of Gantt charts in projectmanagement is that they identify which activities can be delayed withoutdelaying the overall project.

False

A Gantt chart is built using establishedprecedence relationships.

False

Project management software eliminatesconflicts when there are shared resources

.False

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.

True

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

.False

Matrix organizations transfer control ofworkers to project managers for the duration of the project.

False

The task of identifying risks should involveeveryone associated with the project.

True

Some organizations use a matrix organizationto integrate the activities of specialists within a functional framework.

True

Slack time is equal to LS-ES or LF-EF

.True

Activities not on the critical path have aslack time equal to zero

.false

If two consecutive activities have sharedslack, this means that each of them can use only half of the slack withoutdelaying completion of the project.

False

Many activities have slack time; if we addthese slack times together, this represents the potential improvement in earlycompletion for the project.

False

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.

True

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.

True

Deterministic networks use three timeestimates - shortest, most likely and longest - for each activity in order tobest determine the activity's estimated time

.False

The standard deviation of the critical pathis equal to the sum of the standard deviations of all of the activities on thecritical path.

False

If customer satisfaction doesn'talways lead to customer loyalty, firms may need to focus additional effort on__________ strategies.

reprocessing

repatriation

retention

rework

remediation

retention

Before a dimension of quality canbe made operationally useful, it must be restated in some ___________ form.

measurable

certifiable

manipulative

marketable

qualitative

measurable

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

performance, special feats, 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

brainstorming

A tool that depicts processvariation graphically is a(n) _________.

Flow Chart

Check list

Affinity diagram

Control Chart

Relationship diagram

Control Chart

A quality circle is ________.

responsible for quality

total quality control

an inspection stamp found on meat

a group of employees

none of these

a group of employees

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

Pareto analysis

The qualitycontrol improvement tool that resembles a "fishbone" is ________.

Paretoanalysis

fail-safemethods

check sheets

brainstorming

cause-and-effectdiagrams

cause-and-effect diagrams

A tool that is not used for qualitymanagement is ________.

Flowchart

Redesign

Histogram

Perato Analysis

Check sheets

Redesign

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

a check sheet

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 flow chart

A chart showing the number ofoccurrences by category would be used in:

Pareto analysis

interviewing

cause-and-effect diagrams

benchmarking

none of these

Pareto analysis

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

benchmarking

Cause-and-effect diagrams aresometimes called:

Pareto diagrams

fishbone (Ishikawa) diagrams

run charts

control charts

none of these

fishbone (Ishikawa) diagrams

Focusing attention on the mostimportant problem areas is referred to as:

Pareto analysis

quality circles

cause-and-effect analysis

quality assurance

brainstorming

Pareto analysis

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

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

appraisal costs

Warranty service, processing ofcomplaints, and costs of litigation are examples of ________.

replacement costs

appraisal costs

internal failure costs

prevention costs

external failure costs

external failure costs

Loss of business, liability,productivity and costs are consequences of _______.

Labor Unions

Poor Quality

Robotics

Globalization

Micro-factories

Poor Quality

Quality planning andadministration, quality training, and quality control procedures are examplesof _______.

prevention costs

external failure costs

appraisal costs

internal failure costs

replacement costs

prevention costs

Lost production time, scrap, andrework are examples of ________.

replacement costs

appraisal costs

prevention costs

external failure costs

internal 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

close, collaborative ties with suppliers

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

I, II and III

Giving workers responsibility forquality improvements and authority to make changes is known as:

employee empowerment

benchmarking

passing the buck

employee involvement

continuous improvement

employee empowerment

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

I, II, III, and IV

TQM stands for:

Total Quantity Measurement

Total Quality Management

Tactical Quality Measurements

Taguchie Quality Methods

The Quality Matrix

Total Quality Management

Which of thefollowing is an element of TQM?

continuousimprovement

competitive benchmarking

employee empowerment

team approach

All of these

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

during the design phase

The Baldrige award is based onseven categories. Which is not one of those?

Relative profitability

Human resource focus

Strategic planning

Leadership

Information and Analysis

Relative profitability

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

All of these

The Deming Prize was established bythe _________.

World Trade Organization

American Statistical Association

North American Free Trade Association

American Quality Society

Japanese

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

identifying the cause of a problem

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

in agreement with the philosophy and its goals

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

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

proportion

A time-ordered plot ofrepresentative sample statistics is called a:

Control Chart

Gantt chart

SIMO-chart

Standard deviation table

Up-Down Matrix

Control Chart

A control chart used to monitor theprocess mean is the:

X chart

p-chart

Gantt chart

c-chart

R-chart

X 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

p-chart

control chart used to monitor thenumber of defects per unit is the:

p-chart

chart

R-chart

Gantt chart

c-chart

c-chart

A c-chart is used for:

fraction defective per unit

number of defects per unit

percent defective

ranges

means

number of defects per unit

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 fraction defective

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

I, II, and IV

______ variation is a variation whosecause can be identified.

Statistical

Assignable

Random

Theoretical

Controllable

Assignable

A time-ordered plot ofrepresentative sample statistics is called a:

Control Chart

Gantt chart

SIMO-chart

Standard deviation table

Up-Down Matrix

Control Chart

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

distinguish between random variation and

The range chart (R-chart) is mostlikely to detect a change in:

sample size

number defective

variability

mean

proportion

variability

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

c-charts

The basis for a statistical processcontrol chart is a(the) __________.

sampling distribution

sample mean

control limit

sample range

process capability

sampling distribution

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

1.67

Organizations should work to improve process capability so thatquality control efforts can become more ________.

            effective

            widespread

            efficient

            necessary

unnecessary

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.

planning to eliminate chance events.

Which of thefollowing is not typically treated as part of a project life cycle?

            incubation

            planning

            maturity

            alternative generation

            feasibility analysis

maturity

Which of thefollowing is not a form of risk reduction in project management?

            backup system

            outsourcing

            risk-sharing

            scenario analysis

            none of these

scenario analysis

Once a project isunderway, the project manager usually is not responsible for effectivelymanaging:

            the people

            project priority

            resources

            costs

            time

project priority

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

its limited time frame and its unique, defined set of activities

Shorteningactivity durations is called:

            Crashing

            Null nodes

            Expediting

            Vendor management

            Trade-off analysis

Crashing

Gantt charts aremost closely associated with

            MRP

            Six Sigma

            MRPII

            JIT

            PERT

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.

They force the manager to organize and quantify information.

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

These are two different names for essentially the same technique.

In a projectnetwork the critical path is the sequence of activities which has the:

            greatest variance

            most events

            most activities

            longest time

            most nodes

longest time

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.

They are used in activities-on-nodes (AON) network diagrams.

A sequence ofactivities that leads from the starting node to the finishing node is called a_______.

            Sequel

            Path

            Trail

            Time line

            Critical sequence

Path

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

  its ability to reveal relationships among activities and it can easily show network

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

Gantt chart

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

Work breakdown structure

A hierarchicallisting of what must be done in a project is called:

            critical path

            planning matrix

            work breakdown structure (WBS)

            crashing

            PERT

work breakdown structure (WBS)

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 impossible
writing a poem

If an activity isdetermined to be on the critical, that means that it, and perhaps other, willaffect project ____________.

            conflict

            duration

            direct costs

            quality

            perform

duration

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

I and III

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

I and II

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

latest and earliest 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

6