Question 1

At Fidelity Enterprises, raw materials, parts, and components are acquired from suppliers as they are needed in the manufacturing process so that Fidelity does not have to store large inventories.Which of the following does Fidelity most likely use?

Accepted Answer

Fidelity is most likely using the just-in-time (JIT) approach, where materials are acquired as they are needed in the manufacturing process to minimize the amount of inventory held by the company.

Question 2

Which of the following elements is often overlooked when firms estimate the costs of outsourcing to low-wage countries?

Accepted Answer

Long distances can lead to increased transportation costs, delays, and logistical challenges, which are often underestimated when outsourcing to low-wage countries.

Question 3

The Malcolm Baldrige National Quality Award is an example of a general standard that is presented annually to companies that demonstrate quality strategies and achievements.

Accepted Answer

The Malcolm Baldrige National Quality Award is indeed a general standard that is presented annually to companies that demonstrate quality strategies and achievements.

Question 4

What are the three levels of quality standards?

Accepted Answer

The three levels of quality standards are general (applicable across various industries), industry-specific (tailored to particular industry requirements), and company (specific to a company's internal standards and processes).

Question 5

Electronic data interchange (EDI)is an online collaboration model that brings manufacturers, distributors, value-added retailers, and customers together to execute trading transactions.

Accepted Answer

EDI (Electronic Data Interchange) is a standardized method for exchanging business documents, such as purchase orders and invoices, between companies electronically, not a collaboration model for bringing various parties together for trading transactions.

Question 6

How has technology altered supply chain management? Discuss some of the available tools.

Accepted Answer

The answer of How has technology altered supply chain management?...

Question 7

Before the strong emphasis on zero defects, U.S.companies operated under the premise of ________, which allowed a level of poor quality with the assumption that service warranties and repair facilities would deal with product defects.

Accepted Answer

Acceptable quality level (AQL) was the premise that allowed a level of poor quality with the assumption that service warranties and repair facilities would deal with product defects, before the strong emphasis on zero defects. Six Sigma, Just-in-Time Inventory Management (JIT), and ISO 9000 are all quality management strategies that were developed later, after the emergence of zero defects.

Question 8

Most U.S.companies have moved from a total quality management (TQM)approach to an acceptable quality level (AQL)approach.

Accepted Answer

This statement is not entirely accurate. While some companies may have shifted from TQM to AQL, it is not a universal trend. Some companies still use TQM or a combination of TQM and AQL. It ultimately depends on the specific needs and goals of each company.

Question 9

EDI is software that can link information flows from different parts of a business and from different geographic areas.

Accepted Answer

EDI (Electronic Data Interchange) is a system for exchanging business documents between organizations in a standardized electronic format, not software for linking information flows within a business.

Question 10

Six Sigma is a highly focused system of quality control that scrutinizes a company's entire production system.

Accepted Answer

Six Sigma is a data-driven approach to quality control that analyzes and improves all aspects of a company's production system. It aims to eliminate defects and reduce variability in processes to improve overall efficiency and customer satisfaction.

Question 11

Gibson Enterprises is an MNE that relies on just-in-time inventory management and lean manufacturing systems to optimize quality and efficiency.For the last few years, Gibson has used the same foreign sources for its raw materials.What is the most likely risk faced by Gibson because of foreign sourcing?

Accepted Answer

The most likely risk faced by Gibson because of foreign sourcing is the uncertainty of arriving parts. Dependence on a foreign source for raw materials can result in unpredictable delays due to factors such as shipping disruptions, customs issues, or unexpected production problems at the supplier's end. This uncertainty can disrupt the just-in-time inventory management and lean manufacturing systems used by Gibson, potentially leading to quality and efficiency issues. While quality of incoming inventory is also a risk, it is not the most likely one given that Gibson has been using the same sources for the last few years. Few available suppliers and high inventory costs are not mentioned as relevant factors in the scenario.

Question 12

________ is an idea perfected by Japanese manufacturers to ensure quality in products.

Accepted Answer

The answer of ________ is an idea perfected by Japanese...

Question 13

Independent suppliers can connect to a company's intranet to help automate and organize delivery of components to that company.

Accepted Answer

The answer of Independent suppliers can connect to a company's...

Question 14

Quality is defined as ________.

Accepted Answer

Quality is ultimately about meeting the expectations of the customer, which can involve factors such as performance, reliability, and satisfaction. While meeting international and internal standards can be important for ensuring consistency and efficiency, these do not necessarily guarantee a high level of quality from the customer's perspective. Similarly, everyday low prices may be an important consideration for some customers, but this is a separate issue from quality.

Question 15

The three levels of quality standards are general, international, and industry-specific.

Accepted Answer

The three levels of quality standards are general (ISO 9000), industry-specific (AS9100 for aerospace, TS 16949 for automotive, etc.), and national standards (such as ANSI in the United States). There is no specific level called "international" standards, as many national and industry-specific standards have been adopted globally.

Question 16

A kanban system is best described as a system that ________.

Accepted Answer

A kanban system is a lean manufacturing system that uses cards to signal the need for materials or parts in the production process. The system facilitates Just in Time (JIT) production by controlling the flow of work and materials through production, and minimizing inventory and waste. Therefore, D is the best choice. A, B, and C are not accurate descriptions of a kanban system.

Question 17

An element of total quality management (TQM)that focuses on continuous improvement by identifying problems and enlisting employees to help eliminate them is known as ________.

Accepted Answer

The concept of continuous improvement is known as kaizen in TQM. It involves identifying problems and encouraging all employees to contribute to the solution. Six Sigma is a specific data-driven methodology used to improve processes and reduce defects. Kanban is a lean manufacturing technique used to manage inventory and production flow. Acceptable quality level (AQL) is the maximum number of defects or errors allowed in a batch of products or services.

Question 18

Fortis Manufacturing Systems uses a highly focused system of quality control that takes a statistical approach and scrutinizes the firm's entire production system.Fortis most likely uses ________.

Accepted Answer

Fortis Manufacturing Systems uses a statistical approach to quality control, which is a key characteristic of Six Sigma processes.

Question 19

Which of the following is a set of universal standards for a globally accepted quality assurance system?

Accepted Answer

ISO 9000 is a globally accepted set of standards for quality management systems that can be applied to any organization, regardless of industry or size, to ensure consistency and customer satisfaction. JIT inventory management, Six Sigma, and TQM are all quality methodologies and approaches, but they are not universal standards like ISO 9000.

Question 20

The Japanese approach to quality is total quality management (TQM), which stresses which of the following principles?

Accepted Answer

The Japanese approach to quality is based on Total Quality Management (TQM), which emphasizes continuous improvements, customer satisfaction, and employee involvement. This means that employees at all levels are encouraged to contribute to improving the quality of products and services, with a focus on meeting or exceeding customer expectations. Japanese companies also place a strong emphasis on teamwork and collaboration, as well as on the use of quality control tools and techniques to identify and solve problems. Commitment to international quality standards may be a part of TQM, but it is not a primary principle of the Japanese approach to quality. Similarly, while warranties may be used to ensure customer satisfaction, they are not a core principle of TQM.

Quiz 18: Global Manufacturing and Supply Chain Management