Deck 3: Controlling Processes

Question 1

The balanced scorecard approach relies not only on financial performance measures,but includes customers,internal business processes,and organizational learning and growth.

Answer 1

True

Question 2

Among the best-known companies that use customer satisfaction surveys to evaluate service quality in various industries is:

A)J)D.Power and Associates
B)McDonald's
C)American Express
D)Alaska Airlines

Answer 2

A

Question 3

Which of the following is NOT a problem commonly found when monitoring?

A)Organizations collect data that are easily gathered
B)Gathered data are not the most important to reach the organization's goals
C)There is an undue emphasis on measuring objective output performance
D)Inputs measurements are used as a proxy for output completion

Answer 3

C

Question 4

Benchmarking is a process that helps compare a company against its competitors on a variety of relevant indicators.

Question 5

There are five stages of effectiveness in terms of the role their operations play in terms of strategic business objectives.

Question 6

Which one of the following perceptual measures corresponds to a company that is in the internally neutral stage of operational effectiveness?

A)Outside experts are called in for strategic decisions
B)Aim is to achieve competitive parity
C)A manufacturing strategy is formulated and pursued
D)Goal is to achieve competitive superiority

Question 7

As control involves both mechanistic and human elements,it is one of the manager's most difficult tasks.Which of the following is the best answer about desirable characteristics of control systems?

A)Should be as simple as possible to operate and maintain
B)Should signal managers if they go out of order
C)Should be focused and admit the least amount of variation
D)Both A and B

Question 8

Which of the following characteristics makes it EASIER to measure the quality of a service,relative to that of a product or facilitating good?

A)Service portions are abstract,rather than concrete
B)Service portions are transient,rather than permanent
C)Service portions are psychological,rather than physical
D)None of the above characteristics make it easier to measure service quality

Question 9

Departments within a stage 2 organization may exhibit a stage 3 orientation,thereby upgrading the organization to a stage 3 categorization.

Question 10

Which one of the following perceptual measures corresponds to a company that is in the internally supportive stage of operational effectiveness?

A)Outside experts are called in for strategic decisions
B)Aim is to achieve competitive parity
C)A manufacturing strategy is formulated and pursued
D)Goal is to achieve competitive superiority

Question 11

Which of the following statements is FALSE?

A)ISO is a strictly European standard
B)ISO 9000 and ISO 14000 are two of the best known ISO standards
C)ISO 14000 has been updated in December 2008 and is known as ISO 14000:2008
D)Over 630,000 organizations in 152 countries have implemented ISO standards

Question 12

In this stage of operational effectiveness,organizations use core capabilities residing in the operations area to obtain a sustainable competitive advantage.

A)Stage 1,internally supportive
B)Stage 2,externally neutral
C)Stage 3,internally supportive
D)Stage 4,externally supportive

Question 13

Some benefits of the balanced scorecard include:

A)It helps align departmental and personal goals to the organization
B)It is an effective way to clarify and gain authority within the organization
C)It is a mechanism for aligning personal goals with societal goals
D)It helps organizations track their competitors

Question 14

One of the most common errors when monitoring data is to gather information that has little or no probability of changing significantly from one collection period to the next.

Question 15

Which of the following distributions can best represent the number-of-defects c chart?

A)Dichotomous
B)Poisson
C)Binomial
D)Chi square

Question 16

Which of the following is NOT a step in constructing control charts?

A)Initial samples of the process to be monitored need to be taken
B)Means and ranges for the samples must be calculated
C)Deriving the means by the ranges previously calculated
D)Graphing sample means and ranges chronologically

Question 17

Which of the following is FALSE regarding statistical sampling for control purposes?

A)The more samples are taken,the higher the likelihood of accidentally selecting a sample with excessive values when the process actually is still under control
B)Deciding what indicators are high or low enough to be considered out of control is the simplest of the problems facing operation managers
C)Measuring upper and lower control limits are the basis for management by exception
D)Using high thresholds for control increases the risk of not detecting processes that are getting out of control

Question 18

With respect to strategy maps and balanced scorecards,which of the following is FALSE?

A)Both address four perspectives: financial,customer,internal business process,and learning and growing perspectives
B)Strategy maps represent an easier way to develop a balanced scorecard
C)Both serve to monitor the cause-and-effect relationships identified through the development of a balanced scorecard
D)Employees' understanding of strategy interactions is enhanced through their use

Question 19

Service defections are important in process control for services because:

A)No advertising is necessary to get the business of long-term customers
B)They are equally important to organizations that produce tangible outputs
C)A customer who takes their business elsewhere is analogous to a product defect
D)Long-time customers are more likely to purchase additional products

Question 20

FMEA stands for:

A)Fail safe Mode and Effectuation Analysis
B)Failure in Massive Effects Analysis
C)Failure Mode in Eviction Analytics
D)Failure Mode and Effect Analysis

Question 21

In services,a product defect is analogous to a defecting customer-a customer who takes their business elsewhere.

Question 22

ISO 9000 is a series of standards covering environmental management systems,auditing,labeling,and life-cycle assessment.

Question 23

When calculating ranges for particular variables,it is mathematically possible to obtain negative variables; in such an event,one should set zero for that variable range.

Question 24

A useful tool for controlling processes such as quality,scrap,turnover,revenues,progress,costs,and so on is the _________ _________.

Question 25

Strategy maps can help define a balanced scorecard.

Question 26

Measuring _________ _________ is analogous to product defects in service quality.

Question 27

In quality control there are two major types of inspection: measurement of a scaled variable and existence of a characteristic.