Deck 20: Operations Control

Question 1

Kaizen,quality at the source,lean manufacturing,and six sigma are mutually exclusive quality improvement approaches.

Answer 1

False

Question 2

Kanban is a philosophy for quality improvement that applies the principles of participatory management toward incremental improvement of the current methods and processes.

Answer 2

False

Question 3

Total quality management is a process tool designed to improve the quality of specialized tasks in the production process.

Answer 3

False

Question 4

The objective of a zero-defects program is to heighten awareness of quality by making everyone aware of his or her potential impact on quality.

Question 5

Business process engineering refers to the search for and implementation of radical change in business processes to achieve breakthrough results in costs,speed,productivity,and service.

Question 6

Effective inventory control results in the reduction of the investment costs in inventories.

Question 7

Under product quality control,machines or processes are periodically checked to detect significant changes in the quality.

Question 8

Product quality control refers to quality control relating to the inputs or outputs of the system.

Question 9

Kaizen is a philosophy for quality improvement that involves a onetime concerted effort,initiated from the top of the organization,to make major improvements in processes used to produce products or services.

Question 10

The Malcolm Baldrige Award is administered by the American National Standards Institute (ANSI).

Question 11

Traditional organizations usually treat suppliers as partners.

Question 12

A cost control system indicates why a particular cost is out of control.

Question 13

A major advantage of the six sigma approach for improving quality is that it removes the adversarial relationship that often exists between quality control inspectors and production employees.

Question 14

For a customer,quality may comprise of variables such as service and appearance.

Question 15

The overall mission of traditional organizations is to meet or exceed customer satisfaction.

Question 16

The zero-defects approach for improving quality aims at cutting defects or defective service to zero.

Question 17

The ISO 14001:2004 is the standard companies use to establish their own environmental management systems.

Question 18

Sharing of financial progress reports is an initiative commonly cited by senior executives who have successfully implemented total quality management (TQM).

Question 19

Operations managers are primarily concerned with costs relating to labor,materials,and overhead.

Question 20

Traditional organizations are usually process-oriented whereas those using total quality management (TQM)are product-oriented.

Question 21

The material requirements planning (MRP)system differs from the just-in-time (JIT)inventory control system in that MRP generally produces to actual demands rather than to forecasts.

Question 22

Which of the following is an approach for implementing total quality management (TQM)?

A) The waterfall model approach
B) The iterative development method
C) The spiral model approach
D) The Juran method
E) The job shop scheduling method

Question 23

With independent demand items,inventory stocking requirements are determined directly from the production plan.

Question 24

In-process inventories serve as a buffer between purchasing and production.

Question 25

Which of the following includes costs related to travel,research and development,and rent?

A) Production overhead-variable
B) Direct labor-variable
C) Materials overhead-fixed
D) Production overhead-fixed
E) Materials overhead-variable

Question 26

Which of the following methods for implementing total quality management (TQM)emphasizes on statistical quality control through employee empowerment?

A) The Deming method
B) The Crosby method
C) The six sigma method
D) The ABC classification method
E) The lean manufacturing method

Question 27

_____ includes the costs of acquiring and maintaining information for providers of services.

A) Design overhead-fixed
B) Direct labor-variable
C) Materials-variable
D) Production overhead-fixed
E) Production overhead-variable

Question 28

Which of the following statements best describes the underlying philosophy of Deming's work in the area of quality assurance?

A) The cause of poor quality and low productivity is the system and not the employees.
B) The quality of an organization's goods and services can affect the organization in many ways.
C) Quality is determined in relation to the specifications or standards set in the design stages.
D) The system should be customer driven and involve only the top management.
E) Effective operations control is attained by applying the basic control concepts to the operations function of the organization.

Question 29

Which of the following methods for implementing total quality management (TQM)emphasizes on the reformulation of attitudes,comprehensive controls,and annual objective reviews?

A) The reengineering method
B) The Crosby method
C) The lean manufacturing method
D) The Juran method
E) The six sigma method

Question 30

Which of the following statements is true about the kaizen philosophy?

A) It states that the needed amount of each component of a product is figured on the basis of the amount of the final product to be produced.
B) It emphasizes conformance to requirements and zero defects.
C) It emphasizes redesigning of an organization's processes to better serve its customers.
D) It emphasizes comprehensive controls, increasing cost-cutting, and annual objective reviews.
E) It focuses on improvement through incremental refining of existing processes and extensive employee participation.

Question 31

The material requirements planning system manages inventories based on the total value of their usage per unit of time.

Question 32

Which of the following is a fixed overhead expense for an organization?

A) Training new employees
B) Wages and salaries
C) Payroll taxes
D) Depreciation
E) Safety training

Question 33

_____ includes payroll taxes,retirement funds,group health insurance,and repairs and maintenance.

A) Distribution costs-fixed
B) Direct labor-variable
C) Materials overhead-variable
D) Materials overhead-fixed
E) Production overhead-variable

Question 34

Sampling control is a method of predicting the quality of a batch or a large group of products from an inspection of a sample or group of samples taken from the batch.

Question 35

Acceptance sampling is concerned with monitoring quality while the product or service is being produced.

Question 36

The economic order quantity (EOQ)is determined by the point at which carrying costs goes higher than production costs.

Question 37

The optimal size of the safety stock is determined by the relative costs of a stock-out of the item versus the costs of carrying the additional inventory.

Question 38

Which of the following methods for implementing total quality management (TQM)emphasizes conformance to requirements and zero defects?

A) The Deming method
B) The Crosby method
C) The kaizen method
D) The Juran method
E) The lean manufacturing method

Question 39

Raw material inventories are used to buffer differences in the rates of flow through the various production processes.

Question 40

The major advantage of the ABC method is that it concentrates on controlling those items that are most important to the operation.

Question 41

Which of the following refers to a set of quality standards created in 1987 by the International Organization for Standardization,in Geneva,Switzerland?

A) AS9100
B) ISO 14000
C) ISO 9000
D) BS 7799
E) SA 8000

Question 42

Which of the following approaches for improving quality has the advantage of removing the adversarial relationship that often exists between quality control inspectors and production employees?

A) The six sigma approach
B) The continuous improvement approach
C) The quality at the source approach
D) The kaizen approach
E) The lean manufacturing approach

Question 43

Which of the following set of quality standards outlined the quality system requirements necessary to meet quality requirements in varying situations and focused on the design and operation processes but not on the end product or service?

A) TL 9000
B) ISO 14000:2000
C) ISO 9000:1994
D) ISO 9001:2000
E) ISO 14001:2004

Question 44

_____ is a method of predicting the quality of a batch or a large group of products from random checks of finished products.

A) Kanban system analysis
B) Just-in-time analysis
C) Acceptance sampling
D) Census check
E) ABC analysis

Question 45

The goal of ISO 14000 is to provide international _____ standards that are globally compatible.

A) technical
B) auditing
C) environmental
D) financial
E) operational

Question 46

Which of the following interrelated series of quality standards emphasized international organization and in-house performance,rather than engineering,as the best way to deliver a product or service?

A) QS 19000:2008
B) ISO 9000:1994
C) ISO 9000:2000
D) ISO/IEC 15408
E) QS 4000:1987

Question 47

Harry is the CEO of Pine and Acorn Consultancy.Of late,he has noticed a steady decrease in Pine and Acorn's revenues.He consults with the other members of the top management and instead of refining the existing processes incrementally,they decide to redesign Pine and Acorn's processes.This change was to be implemented to better serve their customers,reduce costs,increase speed,and improve their products.Which of the following approaches for improving quality has Harry decided to implement?

A) Reengineering
B) Zero-defects program
C) Quality at the source approach
D) The Deming approach
E) The kaizen method

Question 48

Which of the following statements is true about DMAIC?

A) It is a continuous process improvement sequence used as part of the six sigma approach.
B) It is the specifications standard set by ANSI (American National Standards Institute).
C) It is the international body that rewards and recognizes excellence in quality initiatives.
D) It is a process specification regarding environmental standards for engineering companies.
E) It is the management tool that focuses exclusively on increasing the production quantities.

Question 49

Which of the following approaches refers to a systematic approach to identify and eliminate waste and non-value-added activities while focusing on cost reduction through process optimization?

A) Six sigma approach
B) Quality at the source approach
C) Management by objectives method
D) Critical incident method
E) Lean manufacturing approach

Question 50

Which of the following refers to the search for and implementation of radical change in business processes to achieve breakthrough results in costs,speed,productivity,and service?

A) Reengineering
B) Zero-defects program
C) Quality at the source approach
D) The Deming approach
E) The kaizen method

Question 51

Which of the following approaches for improving quality is both a precise set of statistical tools and a rallying cry for continuous improvement?

A) The six sigma approach
B) The management by objectives approach
C) The quality at the source approach
D) The kanban approach
E) The lean manufacturing approach

Question 52

Which of the following statements is true about a zero-defects program?

A) It refers to a onetime concerted effort to make major improvements in processes used to produce products or services.
B) It emphasizes on strict conformance to requirements and zero defects.
C) It particularly focuses on redesigning of an organization's processes to better serve its customers.
D) It exclusively emphasizes on cutting defects and defective services to zero.
E) It attempts to create a positive attitude toward the prevention of low quality.

Question 53

Which of the following statements is true about ISO 14000?

A) It is a series of voluntary international standards covering environmental management tools and systems.
B) It states the requirements for a new system of manufacturing quality standards.
C) It emphasizes on engineering as the best way to deliver a product or service.
D) It is a new system of quality standards designed specifically for public sector organizations.
E) It deals with the fundamentals and vocabulary of a new system of service sector quality standards.

Question 54

Extensive communication regarding the importance of quality,organizationwide recognition of high-quality work,problem identification by employees,and employee goal setting are characteristics of the _____ approach to improving quality.

A) reengineering
B) lean manufacturing
C) Crosby
D) zero-defects
E) critical incident

Question 55

The objective of _____ is to heighten awareness of quality by making everyone aware of his or her potential impact on quality.

A) reengineering
B) lean manufacturing
C) the six sigma approach
D) a zero-defects program
E) the critical incident method

Question 56

Which of the following statements is true about ISO 9004:2000?

A) It provides guidance for implementation of a new system of quality standards.
B) It states the requirements for a new system of quality standards.
C) It emphasizes on engineering as the best way to deliver a product or service.
D) It is a new system of quality standards designed specifically for public sector organizations.
E) It deals with fundamentals and vocabulary of a new system of quality standards.

Question 57

Which of the following awards is administered by the National Institute of Standards and Technology to encourage efforts to improve quality and to recognize the quality achievements of U.S.companies?

A) The Edwards Deming award
B) The Joseph Juran award
C) The Malcolm Baldrige award
D) The Fred Fiedler award
E) The Philip Crosby award

Question 58

Which of the following is true about lean six sigma?

A) Its goal is growth.
B) It emphasizes statistical quality control exclusively through employee empowerment.
C) It aims to make each employee responsible for the quality of his or her work.
D) It is a onetime concerted effort that makes major improvements in the production processes.
E) It focuses merely on cost-cutting.

Question 59

_____ is a onetime concerted effort,initiated from the top of the organization,to make major improvements in the company's processes.

A) Lean manufacturing
B) Zero-defects program
C) ABC classification system
D) The kaizen method
E) Reengineering

Question 60

Harry is a senior operations manager in Pine and Acorn Toys.His team regularly conducts random quality checks of unsold finished wooden toys that Pine and Acorn manufactures.Through this method,his team predicts the quality of a batch of toys before releasing them to the sales department.Which of the following methods of quality control is Harry's team implementing?

A) Kanban system analysis
B) Just-in-time analysis
C) Acceptance sampling
D) Census check
E) ABC analysis

Question 61

_____ inventories serve as a buffer between purchasing and production.

A) Raw material
B) Independent demand
C) In-process
D) Just-in-time
E) Finished-goods

Question 62

_____ inventories are used to buffer differences in the rates of flow through the various production processes.

A) Raw material
B) Production standard
C) In-process
D) Continuous flow
E) Finished-goods

Question 63

Pure Machine Parts Inc.(PMP)has decided to launch a zero-defects program in their Michigan plant.The plant employs 122 employees on the shop-floor with four supervisors and two managers.Discuss how the firm's management should proceed with the implementation of the program.

Question 64

Discuss the need for a total customer response program and outline the keys for successful implementation of the program.

Question 65

Which of the following systems manages inventories based on the total value of their usage per unit of time?

A) The process control chart system
B) The ABC classification system
C) The material requirements planning system
D) The master schedule push system
E) The economic order quantity system

Question 66

Accuracy in inventory tracking has greatly improved with the use of _____.

A) X-charts
B) R-charts
C) just-in-time inventory control
D) six sigma techniques
E) bar coding

Question 67

Define quality from an operational point-of-view and outline the six possible dimensions of design quality.

Question 68

Discuss total quality management (TQM)and outline different quality improvement approaches that have relevance to TQM.

Question 69

_____ is determined by the point at which ordering costs equal carrying costs,or where total cost (ordering costs plus carrying costs)is at a minimum.

A) Demand order forecast
B) Economic order quantity
C) Break even point order
D) Just-in-time order schedule
E) Variable order expense

Question 70

Outline the benefits of material requirements planning (MRP).

Question 71

Which of the following refers to a special type of inventory system in which the needed amount of each component of a product is figured on the basis of the amount of the final product to be produced?

A) The six sigma system
B) The economic order quantity system
C) The material requirements planning system
D) The ABC classification system
E) The kaizen system

Question 72

Discuss the features of the ISO 14000 standards and outline its goals.

Question 73

Which of the following statements signify a demand pull system?

A) Inventory control based on the requirements of the successive stages in production
B) Increasing the costs of the manufactured items when the demand for the product is low
C) Market analysis using software to determine the demand for the product in the market
D) Quality control using demand sheets based on employee feedback
E) Monitoring quality while the product or service is being distributed to customers

Question 74

Define fixed and variable overhead costs and list the types of cost with their components.

Question 75

Discuss just-in-time inventory control.Outline its strengths and weaknesses.

Question 76

Discuss the types of costs that are considered when determining the optimal number of units to order.Outline economic order quantity (EOQ)and its weakness(es).

Question 77

Outline the features of the new ISO 9000 standards that were implemented in the year 2000.

Question 78

Which of the following is true about the ABC approach to managing inventory?

A) It involves determining inventory stocking requirements directly from the financial plan.
B) It involves managing inventories based on the total value of their usage per unit of time.
C) It involves maintaining safety stocks to accommodate unexpected changes in demand and supply.
D) It involves determining the point at which ordering costs equal carrying costs.
E) It involves quantifying the amount of each component needed on the basis of the product demand forecast.

Question 79

Just-in-time inventory control systems are also referred to as _____ systems.

A) kanban
B) Ishikawa
C) Crosby
D) Juran
E) lean

Question 80

Most organizations maintain _____ to accommodate unexpected changes in demand and supply and allow for variations in delivery time.

A) safety stocks
B) just-in-time inventories
C) economic order quantities
D) ISO standards
E) lean manufacturing processes