Question 1

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.

Accepted Answer

The answer of A category "C" item in the ABC...

Question 2

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.

Accepted Answer

The cause-and-effect diagram, also known as the Ishikawa diagram or fishbone diagram, is a tool used to identify potential causes of a problem and sort them into categories. It helps to visually represent the various factors involved in a problem and is a useful tool for root cause analysis. The check sheet, control chart, and Pareto chart are also quality tools, but they do not specifically sort potential causes into categories like the cause-and-effect diagram does.

Question 3

A small business owner decides that her firm has a good customer focus and adequate tools and techniques needed for a TQM program. To be assured of a strong quality program, she must also have the proper
A) benchmarking.
B) marketing research.
C) organizational culture.
D) statistical quality control.

Accepted Answer

The proper organizational culture is essential for a strong TQM program. This refers to the values, beliefs, and behaviors of the business and its employees that support the pursuit of quality. It includes a commitment to continuous improvement, customer satisfaction, and employee involvement. While benchmarking, marketing research, and statistical quality control are important tools for TQM, they are not sufficient for a strong quality program without a supportive organizational culture.

Question 4

In March, chassis prep counts its inventory.  In June, the cabinet shop does the same thing.  In September, appliances counts its inventory.  This inventory system is known as:
A) cycle counting.
B) perpetual.
C) physical.
D) two-bin.

Accepted Answer

Cycle counting is a method where inventory is counted at regular intervals throughout the year. In this case, chassis prep counts inventory in March, cabinet shop counts inventory in June, and appliances counts inventory in September. This method is more efficient than physical inventory counting, where all inventory is counted at once, as it allows for more frequent updates and corrections to inventory levels. Therefore, the best choice is A) cycle counting.

Question 5

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.

Accepted Answer

The installation of a drink-mixing machine that automatically measures and selects the ingredients is an example of poka-yoke, which is a method used to prevent errors or mistakes by designing a process in such a way that it is impossible to make an error or mistake. The machine ensures the correct proportion of ingredients, reducing the possibility of human error. Idiot-proofing refers to the process of designing a product or system in such a way that it is impossible to use it incorrectly, which is not entirely applicable in this scenario. Kan-ban is a lean manufacturing method used to manage inventory, and robotics refer to the use of machines to automate tasks that were previously done by humans, which is not necessarily applicable in this scenario.

Question 6

Twice a year the entire production line shuts down and a complete count is taken of every inventory item.  This inventory system is called:
A) cycle counting.
B) perpetual inventory.
C) physical inventory.
D) two-bin inventory.

Accepted Answer

The inventory system described is physical inventory, which involves a complete count of all inventory items at a specific point in time. Cycle counting involves counting only a portion of inventory on a regular basis, while perpetual inventory involves continuously updating inventory records. Two-bin inventory involves having two containers of each inventory item, with one being used while the other is restocked, and does not involve periodic counts of all inventory items.

Question 7

The ABC method of inventory management is founded on the notion that
A) some inputs are more valuable or more critical to the firm's 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.

Accepted Answer

The ABC method of inventory management is based on the idea that some inputs are more crucial to the firm's operations than others, and therefore should receive more attention and resources when it comes to inventory control. This allows the firm to prioritize its investments in inventory and reduce the risk of stockouts for critical items while also optimizing the overall inventory investment. Options B, C, and D are not correct because they do not accurately describe the ABC method of inventory management.

Question 8

A reason to buy component parts is
A) closer coordination between scheduling and production.
B) equipment obsolescence.
C) improved plant utilization.
D) the parts are a specialty of the supplier.

Accepted Answer

The answer of A reason to buy component parts is
A)...

Question 9

The traditional method of maintaining product quality has been the
A) check sheet.
B) control chart.
C) inspection.
D) histogram.

Accepted Answer

The answer of The traditional method of maintaining product quality...

Question 10

In his retail store, Jose's point-of-sale software relieves inventory for each item purchased.  At any time, Jose can look at the inventory records on his computer and know exactly how many of each item are in stock.  This type of inventory system is called:
A) cycle counting.
B) perpetual.
C) physical.
D) two-bin.

Accepted Answer

The type of inventory system that Jose's store is using is called perpetual, as it continuously updates inventory levels as items are sold. Cycle counting involves randomly counting a portion of inventory at regular intervals. Physical inventory involves physically counting all items in stock at a specific point in time. Two-bin inventory involves using two bins of inventory and reordering when the first bin runs out. Therefore, option B is the correct answer.

Question 11

Which of the following is an example of "quality"?
A) The taste of a restaurant's food
B) Turn time at an auto repair shop
C) Product fail rate for a manufacturer
D) All of the above

Accepted Answer

The answer of Which of the following is an example...

Question 12

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.

Accepted Answer

Total Quality Management (TQM) focuses on improving the overall quality of a company's products or services by involving everyone in the organization in continuous improvement efforts. For a small plumbing company, implementing a TQM program means that everyone in the organization must make quality a top priority. This includes management, employees, and even suppliers. The goal is to improve customer satisfaction by delivering high-quality plumbing services consistently. ISO 9000 is a set of international standards that outline the requirements for a Quality Management System (QMS). While TQM incorporates the ISO 9000 principles, it is broader in scope, focusing on continuous improvement efforts across the entire organization. Cost is an important consideration in any business, but it cannot be allowed to limit quality goals. Finally, acceptance sampling may be necessary to ensure that the plumbing services delivered to customers meet the quality standards set by the company.

Question 13

Bobbi Jo pulls one part from the production line every 15 minutes and measures its dimensions against the specifications.  Bobbi Jo is using:
A) acceptance sampling.
B) a control chart.
C) statistical process control.
D) TQM.

Accepted Answer

The answer of Bobbi Jo pulls one part from the...

Question 14

Bettina would like to improve the quality of the dining experience in her cafe.  To achieve this, Bettina's efforts should begin with a focus on
A) customers.
B) employees.
C) management.
D) operations.

Accepted Answer

The dining experience is primarily for the customers, so it would make sense for Bettina to begin by focusing on their needs and expectations. By understanding their preferences and feedback, she can make informed decisions about improving the quality of the dining experience.

Question 15

Adoption of the just-in-time inventory system requires
A) the elimination of raw materials wherever possible.
B) an emphasis on work in progress.
C) a reduction in the firm's finished goods.
D) close cooperation with suppliers.

Accepted Answer

The just-in-time inventory system requires close cooperation with suppliers to ensure that materials and components are delivered exactly when they are needed in the production process. This helps to minimize inventory levels and reduce the risk of excess inventory or stockouts. While it may also involve reducing raw materials and finished goods, these are not necessarily a requirement for implementing the just-in-time system.

Question 16

Service businesses are typically more concerned with _____ costs than with the cost of materials for operations.
A) equipment
B) fixed asset
C) labor
D) leasing

Accepted Answer

Service businesses usually require more human labor than material resources. Therefore, their primary concern is the cost of labor rather than the cost of materials or equipment.

Question 17

A method that judges products as acceptable or unacceptable is known as
A) poka-yoke.
B) attribute inspection.
C) acceptance sampling.
D) variable inspection.

Accepted Answer

The answer of A method that judges products as acceptable...

Question 18

By conforming to ISO 9000, a small manufacturing firm could achieve improvements in
A) sales to Walmart.
B) export sales.
C) product design.
D) quality of incoming raw materials.

Accepted Answer

ISO 9000 is a set of international standards on quality management and quality assurance developed to help companies effectively document the quality system elements to be implemented to maintain an efficient quality system. They are not specific to any one industry and can be applied to organizations of any size. ISO 9000 can help a company improve its product quality, enhance customer satisfaction, and increase its export sales by ensuring the products meet international quality standards, making them more competitive in the global market. It does not directly affect sales to any specific company, product design, or the quality of incoming raw materials, although indirectly, the focus on quality might lead to improvements in these areas over time.

Question 19

If a small fencing company wants to check the length of fence posts to determine if they are acceptable, a(n) ______ should be used.
A) poka-yoke.
B) an attribute inspection.
C) acceptance sampling.
D) a variable inspection.

Accepted Answer

A variable inspection measures the actual length of the fence posts, which is a continuous variable. This would be the most appropriate method for checking the acceptability of fence posts. A poka-yoke is a mistake-proofing method, an attribute inspection examines the presence or absence of a certain characteristic, and acceptance sampling involves testing a random sample of items to determine if they meet specifications. None of these methods would be as appropriate as a variable inspection for measuring the length of the fence posts.

Question 20

ISO 9000
A) is more important for large global firms than small firms with domestic markets.
B) measures how companies have improved their environmental footprint.
C) is challenging to earn but is rewarding from a marketing viewpoint.
D) reflects international excellence in quality management standards.

Accepted Answer

ISO 9000 reflects international excellence in quality management standards. It is a set of standards that companies can adhere to in order to ensure consistent quality in their products and services. While it can be challenging to earn, it is viewed as a symbol of quality and can be beneficial for marketing purposes. It is relevant for both large global firms and small firms with domestic markets. However, it does not measure a company's environmental footprint.

Quiz 21: Managing Small Business Operations

A category "C" item in the ABC method of inventory management for a college bookstore would be

The basic quality tool that Kaoru Ishikawa recognized that identifies potential causes of a problem while sorting them into categories is the

A small business owner decides that her firm has a good customer focus and adequate tools and techniques needed for a TQM program. To be assured of a strong quality program, she must also have the proper

In March, chassis prep counts its inventory. In June, the cabinet shop does the same thing. In September, appliances counts its inventory. This inventory system is known as:

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:

Twice a year the entire production line shuts down and a complete count is taken of every inventory item. This inventory system is called:

The ABC method of inventory management is founded on the notion that

A reason to buy component parts is

The traditional method of maintaining product quality has been the

In his retail store, Jose's point-of-sale software relieves inventory for each item purchased. At any time, Jose can look at the inventory records on his computer and know exactly how many of each item are in stock. This type of inventory system is called:

Which of the following is an example of "quality"?

If a small plumbing company is installing a TQM program, management should be aware that

Bobbi Jo pulls one part from the production line every 15 minutes and measures its dimensions against the specifications. Bobbi Jo is using:

Bettina would like to improve the quality of the dining experience in her cafe. To achieve this, Bettina's efforts should begin with a focus on

Adoption of the just-in-time inventory system requires

Service businesses are typically more concerned with _____ costs than with the cost of materials for operations.

A method that judges products as acceptable or unacceptable is known as

By conforming to ISO 9000, a small manufacturing firm could achieve improvements in

If a small fencing company wants to check the length of fence posts to determine if they are acceptable, a(n) ______ should be used.

ISO 9000