Deck 1: Certified Manager of Quality/Organizational Excellence

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Question
An organization's environmental scanning process has uncovered the following: They have an underutilized core competency. Their research and development capability is well recognized. Retention of their best performers is a problem. A new technology from another country can be employed in developing a whole new product family. What technique/tool was most likely used to categorize and analyze these and other similar data?

A) Priorities matrix
B) Process map
C) Quality function deployment
D) SWOT analysis
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Question
During the development of company strategy, input should be sought from:

A) Advertising agencies.
B) Competitors.
C) Stakeholders.
D) Public relations advisers.
Question
Three hospitals are located within the same metropolitan area. One hospital determined that both its cafeteria and its gift shop ranked lower in variety and convenience than the other two hospitals. Which of the following actions would be most appropriate?

A) Normalize the data based on any significant differences in the customers being served (for example, economic strata).
B) Subcontract the cafeteria and gift shop to outside sources that can provide greater attention to these nonmedical aspects of the hospital operations.
C) Collocate the cafeteria and the gift shop in order to share resources, reduce costs, simplify access, and allow a greater investment in variety.
D) Look at customer purchasing patterns and profit margins to maximize investment payback.
Question
Scenario planning is used for:

A) Deciding which continuous improvement project recommendations to implement first.
B) Determining which method of financial analysis to use.
C) Envisioning several alternative strategic viewpoints.
D) Analyzing the results of a SWOT analysis.
Question
Strategic planning may include all but which of the following?

A) A SWOT analysis
B) Hoshin planning and deployment
C) A seven-step problem-solving technique
D) Scenario planning
Question
Future technology advancements can affect:

A) The services the organization provides. II. The speed of communications and the response time expected. III. The mass obsolescence of major existing products and processes. IV. The increased human competence required to design processes that effectively utilize the advanced technology available.
B) I, II, and IV only
C) II only
D) I and IV only
E) I, II, III, and IV
Question
Organizational components that not only support other internal functions but also support external stakeholders are:

A) Information technology and human resources.
B) Finance and customer service.
C) Engineering and R&
D) D.Marketing and quality.
Question
Reasons for building an economic case for quality may include:

A) The case expresses quality in the language of management. II. The approach justifies quality initiatives in dollars and cents. III. The Sarbanes-Oxley Act requires it. IV. Quality is typically treated as a cost rather than as an investment.
B) The economic case for quality allows for comparison of it with other major investments or projects.
C) III only
D) I, II, IV, and V
E) IV and V only
F) I and II only
Question
The budgets of most internal staff and operations functions do not include figures for:

A) Cash received. II. Capital expenditures. III. Short-term liabilities. IV. Payroll expenses.
B) IV only
C) III only
D) I, II, and III
E) I and III
Question
In developing a private college's balanced scorecard, which four of the following information categories would be best to consider?

A) Alumni contributions II. Current student enrollments III. Percentage of students graduated IV. Faculty competence level
B) Academic rating among competitors VI. Cash flow VII. New and/or updated programs under development
C) III, IV, V, VI
D) I, II, III, VI
E) I, IV, V, VII
F) II, III, V, VI
Question
In preparation for strategic planning, organizations should look closely at their industry to determine:

A) The amount of excess capacity. II. Which competitors might join forces and become a greater threat. III. How employees perceive competitor advertisements. IV. What changes in regulatory requirements are likely to occur.
B) I and II
C) II and III
D) I, II, and IV
E) I, II, III, and IV
Question
The most critical consideration in the deployment of strategic plans is:

A) Sufficient resources can be made available to carry out the plans.
B) The strategic goals do not exceed the present organization's capabilities.
C) Middle management agrees with senior management that the strategic objectives are achievable.
D) A process for tracking and measuring achievement of strategic goals is in place.
Question
Of the following core values and concepts, which would be the most critical to apply to a newly mandated state emergency management agency?

A) Visionary leadership II. Customer-driven excellence III. Agility IV. Focus on the future
B) Focus on results and creating value VI. Management by fact VII. Managing for innovation
C) I, III, V, VII
D) II, V, VI
E) I, III, IV, V, VI, VII
F) V, VI
Question
A stakeholder analysis would:

A) Determine the appropriate dividend amount to be distributed to shareholders.
B) Assess the feasibility of a partnership with a key supplier.
C) Provide the basis to recommend the best strategy for dealing with pressure from a competitor.
D) Delineate the outputs and outcomes needed by customers and regulatory agencies affecting the business.
Question
Knowledge and application of which of the following management theories and styles would be most useful to a manager dealing with an employee who is performing poorly?

A) Maslow's hierarchy of needs II. Herzberg's two-factor theory III. McGregor 's theory X and theory Y IV. Kolb's experiential learning model
B) Behavior management - A-B-C analysis VI. Hersey-Blanchard's situational leadership model VII. Senge's systems thinking
C) II, IV, VII
D) I, II, V, VI
E) I, III
F) IV, VII
Question
Two human resource functions that typically are shared with other organizational components are:

A) Unemployment and relocation administration.
B) Union contract negotiation and OSHA compliance assessment.
C) Staffing and training.
D) Compensation and benefits administration.
Question
The role of the quality function in supporting strategic plans could include all but which of the following?

A) Institute and enforce a quality policy across all organizational functions.
B) Lead the implementation of an ISO 9001 QMS, as identified in the strategic plan.
C) Advise other functions in the setting of quality objectives that are linked to the organization's strategic plan.
D) Facilitate the deployment of the voice of the customer throughout the organization.
Question
Typical tools used as aids in selecting members for a process improvement team are:

A) DiSC and MBTI.
B) MBTI and process mapping.
C) Root cause analysis and fishbone chart.
D) Brainstorming and affinity diagram.
Question
The preferred technique/tool used to determine the strategies of organizations serving the same market as your own organization is:

A) Competitive analysis.
B) Benchmarking.
C) Industry trade association data research.
D) Survey of competitor 's customers.
Question
To establish the direction an organization's first strategic planning initiative should take, the organization should first create:

A) A mission statement.
B) Organizational objectives.
C) A vision statement.
D) Action plans.
Question
Which of the following factors would be most critical to consider early when contemplating a conversion of a "brick and mortar" retail business to an e-business?

A) What changes to the customer database are likely and what the ramifications of those changes are II. What image our new faceless organization will provide to the buying public III. Should IT be outsourced? IV. What internal impacts will the change from a personal service orientation to a transaction-processing orientation have on the workforce we employ and the technology approach we select?
B) III only
C) I, II, and IV
D) I and IV only
E) III and IV only
Question
Which of the following quality tools is most likely to identify a specific quality system effectiveness problem to be addressed?

A) Process map
B) Balanced scorecard
C) Quality management system audit
D) Employee performance appraisal
Question
Assessing and identifying exposure to risks should:

A) Be done prior to investing in a major capital expenditure. II. Be a continual process. III. Be undertaken as part of the feasibility analysis prior to purchasing another business. IV. Include financial, physical, safety, security, health, product liability, and proprietary information risk exposures.
B) I, III, IV only
C) I, III only
D) I, II, III, and IV
E) I only
Question
Which of the following is not an advantage of a formal project report?

A) They generally address a specific issue.
B) They are suitable for long-term retention.
C) They usually include additional background information.
D) They are useful to individuals not closely involved with the project.
Question
Which of the following is not generally a characteristic of communication in hierarchical organizations?

A) Communication is constrained by chain of command.
B) Messages are distorted many times by different frames of reference.
C) Competitive opportunities might be missed because of time delays.
D) Different functional departments communicate at a different pace.
Question
An external risk factor that might need to be considered when conducting project planning is:

A) Lack of resources.
B) Regulatory requirements.
C) Organizational rules.
D) Technological capabilities.
Question
In selecting among different projects, the time value of money is considered for which of the following reasons?

A) To perform a cost-benefit analysis II. To prioritize investments III. To predict cash flow IV. To reduce operating costs
B) I, II, and III only
C) I, II, III, and IV
D) III and IV only
E) I and II only
Question
Based only on the following data, which answer is correct? Purchased 12 delivery trucks for a total of $360,000 Estimated the payback from an ISO 9000 QMS project at $1,200,000 Net income for the year is $3,600,000 Spent $400,000 on implementing the ISO 9001-based QMS

A) ROI is $3: 1 RONA is $10: 1
B) ROI is 33% RONA is $9: 1
C) ROI is 30% RONA is $10: 1
D) ROI is $3: 1 RONA is $9: 1
Question
Bottom-to-top communication techniques include all the following except:

A) Employee suggestion boxes.
B) Quality circles.
C) Performance reviews.
D) Employee satisfaction surveys.
Question
Given a four-week project involving 22 tasks, a budget of $22,000, and a part-time team (project manager and two analysts), which project management tool will most likely be used to display project progress to management?

A) Work breakdown structure
B) Network diagram
C) Budget variance report
D) Gantt/milestone chart
Question
The Baldrige Award performance excellence criteria address which types of performance?

A) Procedural compliance II. Supplier related III. Customer related IV. Financial and marketplace
B) I and IV only
C) III and IV only
D) II, III, and IV only
E) III only
Question
Which of the following elements would be expected to be included in a good project plan?

A) Cost-benefit analysis II. Timetable for completion III. Description of required resources IV. Statement of project deliverables
B) I and II only
C) II and III only
D) I, III, and IV only
E) I, II, III, and IV
Question
The most critical use for project portfolio analysis is to:

A) Compare the net value of a new project relative to continuing previously approved projects
B) Determine the best time to start a new project
C) Assess the feasibility of starting a new project relative to the resources being allocated to existing projects as well as assessing the strategic fit of the new project
D) Make room for a new project by canceling or postponing an existing project that will not produce as high an ROI as the new project
Question
As part of your preparation for a business trip to another country it would be wise to do all but one of the following. Which one would that be?

A) Arrange for an interpreter to be available when you meet with your business contact, unless you are fluent in the language and knowledgeable of the culture and business customs of the country.
B) Plan an elaborate visual presentation that you will make shortly after arrival, and follow that by quickly striving to reach an agreement or make the sale.
C) Resolve to keep your political views and personal beliefs to yourself even though you have strong feelings about the political climate and beliefs prevalent in the country you will visit.
D) Obtain and study information about the country before leaving for your trip.
Question
Which of the following is the biggest problem in cost-benefit analysis?

A) It is easier to accurately estimate benefits than costs.
B) It is easier to accurately estimate costs than benefits.
C) It is an elaborate tool requiring extensive computer support.
D) It is too difficult to compute the time value of money.
Question
Which of the following are methods for mitigating risks?

A) Eliminate the condition that may cause a loss to occur II. Establish contingency plans III. Obtain insurance to cover some of the potential risk IV. Self-insure
B) I, II, III, and IV
C) I only
D) II, III, and IV only
E) I and II only
Question
To gain a competitive edge, a commercial flower grower seeks a technology solution that will improve productivity, quality, customer satisfaction, and profits. Which of the following actions would provide the best results within one year?

A) Contract with a call center to handle customer complaints.
B) Set up an informational Web site to display flowers available.
C) Implement a GIS mapping system to more effectively allocate growing space based on growth requirements of the flowers, soil conditions, sunlight, and irrigation channels.
D) Provide field workers with portable devices for recording flower growth, quality factors, and yield-for downloading nightly to a program to compute productivity, quality status, and potential yield by type of crop and when it will be available for shipment.
Question
All but one of the following represents good communicating skill. Which one does not?

A) Body language and voice convey the same message.
B) Use open-ended and closed questions at appropriate times.
C) Since the brain works much faster than speaking, use the time while another person is speaking to plan your next comment or question.
D) Use a paraphrasing technique to clarify your understanding of what was said.
Question
Knowledge management involves all but which of the following?

A) Recording and storing all the tacit knowledge of all the employees.
B) Documenting "lessons learned" from product development projects.
C) Determining what knowledge to record and store, and by whom and how it will be accessed and used.
D) Building and reinforcing an organization culture that supports and promotes reusing knowledge rather than reinventing knowledge.
Question
The mission statement for a quality function would best focus on:

A) Reducing defects.
B) Assessing the performance of production workers.
C) Companywide and departmental activities that collectively result in product and/or service quality.
D) Leading small teams that break down barriers and reach higher organizational goals.
Question
Theory of constraints:

A) Follows the steps in the process.
B) Follows the processes in the system.
C) Follows the flow of money.
D) Follows after process reengineering.
Question
All except one of the following could be a process goal for a for-profit service organization. Which one?

A) Ensure that the design of a service to customers follows industry safety standards.
B) Ensure that the service delivered produces a profit.
C) Dedication to continual process improvement.
D) Discipline any employee who fails to meet the service standards of the organization.
Question
Lean tools are primarily focused on:

A) Eliminating waste.
B) Better workplace management.
C) Increasing customer value.
D) Reducing resources.
Question
One of the best tools for assessing the impacts of identified risks in the design of a hydroelectric dam and power station is:

A) Failure mode and effects analysis
B) Mean time between failure
C) Cost of poor quality
D) Reliability studies
Question
All but one of the following tool sets could be used to help an educational institution identify the cause of excessive student tardiness. Which one could not?

A) Brainstorming and an Ishikawa diagram
B) Five whys and a problem-solving model
C) FMEA and DMAIC
D) Check sheet and affinity diagram
Question
Which of the following would be the best tool to use to understand the process linkage from supplier to customer?

A) PDSA
B) DMAIC
C) FMEA
D) SIPOC
Question
Long-range trend analysis is typically used in performing which of the following activities?

A) Control charting
B) Management review
C) Internal auditing
D) Design review
Question
A more accurate accounting of the costs to produce a product can be achieved with:

A) Traditional cost accounting methods
B) Activity-based costing
C) Correctly distinguishing between internal and external failure costs
D) Correctly differentiating between prevention and appraisal costs
Question
Process analysis is to a flowchart as brainstorming is to a:

A) Checklist
B) Scatter diagram
C) Mind map
D) Pareto chart
Question
In an insurance claims processing unit, which quality tool would be most useful to analyze the amount of variation in the process used to code claims for computer entry and in determining whether the process is stable prior to embarking on an improvement effort?

A) Control chart
B) Histogram
C) Process map
D) PDPC
Question
Categorizing the cost of quality into failure costs, appraisal costs, and prevention costs is essential to be able to:

A) Reduce the total cost of quality to as near zero as possible.
B) Allocate efforts to effectively balance reduction of failures with detection of failures, as well as preventing failures.
C) Substantially increase appraisal costs to detect failures before shipment.
D) Virtually eliminate appraisal costs by adding to prevention efforts.
Question
Looking at the following data: 40, 20, 10, 20, 50, 90, 80, 30, 20, 40 the mean is , the median is ,

A) 40, 35, 20
B) 40, 20, 40
C) 20, 40, 40
D) 45, 70, 20
Question
Data that is derived from counting is derived from measuring is data.

A) Attribute, variable
B) Numeric, verbal
C) Variable, attribute
D) Quantitative, qualitative
Question
Which of the following correctly describes the sequence of events, from beginning to end, for reducing special causes of variation?

A) Search for the cause. II. Develop a long-term remedy. III. Gather data to identify special causes. IV. Put an immediate remedy in place to contain any damage.
B) I, III, IV, II
C) IV, III, II, I
D) II, I, III, IV
E) III, IV, I, II
Question
The best technique for analyzing qualitative data is to:

A) Designate meaningful categories and assign each response to a category, then sum the number of responses in each category as the indication of the category's importance to the population responding.
B) Assign a value rating to each response, then sum the ratings for all responses, and use the mean as representative of the responses of the total population.
C) Score each response according to personality type.
D) Search for keywords, significant to the research being done, in each response. Count the number of each keyword used and take the keyword usage totals as representative of the population studied.
Question
Takt time:

A) Is a measure of the time between each operation in a cycle.
B) Sets the pace of production to coincide with customer demand.
C) Is another term for cycle time.
D) Is the total sequential processing time to produce one item in a work cell.
Question
A way to ensure a near 100 percent response rate for a survey is to conduct the survey with the group targeted for study at a time and place when everyone in the group is present and everyone is required to complete the survey. There may still be problems possible with this approach that could cause poor decisions to be made from false data, such as:

A) Some persons may refuse to take the survey or they may intentionally corrupt their answers if they resent the method used. II. Some persons may find that the pressure of having to complete the survey without lagging behind most of the group may distort or inhibit clear thinking, and prevent a well-thought-through response. III. In their haste to get it over with, some respondents, without thought, may just randomly answer the questions. IV. Even though response documents may not show respondent identification, some respondents may feel they have to furnish the answers they think management wants to see.
B) IV only
C) II and III only
D) I only
E) I, II, III, and IV
Question
Which of the following statements are essential to understanding the theory of constraints?

A) The system, similar to a chain, is only as strong as its weakest link. II. Not much improvement can occur until the weakest link is addressed. III. Success or failure is dictated by the interaction of the process with the system. IV. Once the weakest link is fixed, the system requires no further improvement.
B) I, II, and III only
C) I, II, and IV only
D) I, II, III, and IV
E) I and II only
Question
A common approach to understanding and improving a process is to:

A) Convene a focus group to study the process.
B) Form a cross-functional ad hoc team to map the existing process, then after analysis, map the process as it might appear after improvement.
C) Implement statistical process control.
D) Audit the process to the ISO 9001 standard.
Question
Disposition of a product using go/no-go data is based on what type of sampling plan?

A) Variable
B) Attribute
C) Reduced
D) Tightened
Question
Which of the following lists is most representative of "external customers" of the town's public high school?

A) Students, parents, colleges, potential employers, town school board, and community volunteer agencies
B) Students, parents, teachers, potential employers
C) Students, parents, colleges, potential employers
D) Students, parents, town school board
Question
In the development of a consumer appliance product survey which of the following data would likely aid the process?

A) An analysis of customer complaints received II. Satisfaction data from a customer focus group III. Number of product defects detected prior to shipments IV. Warranty registration data
B) I only
C) I, II, III, and IV
D) I and II only
E) I, II, and IV only
Question
One of the most important customer service principles to apply is:

A) "The customer is always right."
B) When dealing with a problem, thank the customer for bringing the problem to you and allowing you to help resolve the problem.
C) State your organization's policy regarding handling of such problems.
D) Be sure the customer realizes you are not responsible for the problem.
Question
In medical device manufacturing and in pharmaceutical production, strict traceability is mandated by regulation. What type of actions may draw upon this requirement?

A) Fulfillment of an unconditional guarantee II. Replacement of failed product under warranty III. A product recall that is needed to safeguard product users IV. Analysis of problems leads to process improvement
B) II, III, and IV only
C) III and IV only
D) I, II, and III only
E) I, II, III, and IV
Question
At a distributor of plumbing supplies, which one of the following actions will have the most positive influence on employees to improve products, processes, and services?

A) Provide rubber mats to relieve the fatigue of counter service personnel.
B) Implement an inventory system that will ensure that all commonly ordered items are in stock when needed.
C) Train all employees in the seven basic quality tools.
D) Establish and support cross-functional process improvement teams to address processes where potential improvement is indicated.
Question
Which of the following is true about the relationship between Cp and Cpk?

A) Cp = Cpk when the process is centered. II. Cpk is always less than or equal to Cp. III. Cp is always less than or equal to Cpk. IV. There is no direct relationship between Cp and Cpk.
B) I only
C) IV only
D) I and II only
E) III and IV only
Question
Typical factors chosen as criteria for supplier selection would include all but:

A) Quality award winner.
B) Financial stability of supplier.
C) Capability to meet current and future demands.
D) Supplier 's track record for on-time delivery and incoming quality.
Question
A condition under which a supplier appearing on the customer 's "OK to buy from" list would not be issued an order would be:

A) Item needed is not available from any of OK'd suppliers. II. Supplier 's quality rating has dropped below acceptable standards on last two shipments. III. OK'd supplier does not have the capacity to fulfill the customer 's demands for the item needed. IV. One or more factors from the selection criteria will not now be met by the supplier.
B) I and III only
C) I and II only
D) I, II, and III only
E) I, II, III, and IV
Question
For a bookseller that sells entirely through a Web site, managing the diversity of customers would entail which of the following?

A) Adopting lean techniques to reduce cycle time II. Continually developing new service features to take the place of services that have become "must haves" III. Responding to the needs of a diverse customer base IV. Understanding and working closely with multiple publishers
B) III only
C) II and III only
D) II, III, and IV only
E) I, II, III, and IV
Question
The first step in a successful customer satisfaction program is to:

A) Hire and train qualified staff and reward them based on performance.
B) Get to know the customers' most pressing needs.
C) Develop a strategic alliance/partnership with key customers.
D) Get management commitment to a focus on customers.
Question
Which of the following techniques is most useful for measuring the test- retest reliability of a survey?

A) Calculate Cronbach's coefficient alpha.
B) Use differently worded items to measure the same attribute.
C) Have the same respondents complete a survey at two different points in time.
D) Conduct an organized review of the survey to ensure that it includes everything it should.
Question
Some of the metrics that could be used to measure performance of a commercial painting contractor are:

A) On-time completion of a painting contract. II. Quality rating resulting from customer 's third-party on-site inspection. III. Amount (time and cost) or rework required. IV. Accuracy of billing.
B) I, II, III, and IV
C) I and III only
D) I, II, and III only
E) I, III, and IV only
Question
Facts pertaining to which of the following would be critical in developing a system of supplier performance measurement for an aircraft engine manufacturer?

A) Amount of technical support provided by the supplier II. Supplier Cpk III. Defective product reworked before shipment IV. MTBF of product after installation
B) II and IV only
C) I, II, III, and IV
D) I and II only
E) I, II, and IV only
Question
In planning the strategy for improving supplier performance, which of the following should be considered?

A) How the supplier will receive performance feedback II. How effective is the supplier 's corrective and preventive action system III. Whether the supplier 's quality management system is certified to an industry-pertinent standard IV. How much of this organization's resources will be needed to assist suppliers in improving performance
B) I, II, III, and IV
C) III and IV only
D) I and IV only
E) II, III, and IV only
Question
Management's goal is to continually improve customer service and satisfaction. Their actions include the following. Which of these actions is least likely to help achieve the goal?

A) Provide for positive reinforcement to employees who are trying to satisfy customers.
B) Encourage and support cooperation and conformance to quality standards amongst internal customers.
C) Establish an employee suggestion box system.
D) Ensure that employees have the training, information, and physical things they need to do their jobs well.
Question
The best use of the cost of lost banking customers is to:

A) Compare this cost from one accounting period to another.
B) Compare lost-customer costs with costs to obtain new customers, and if the cost of obtaining new customers is greater, refocus efforts on customer retention.
C) Use these figures to reprimand employees responsible for lost customers.
D) Justify an initiative to contact lost customers and entice them to come back.
Question
An action of highest priority is for suppliers to:

A) Implement a system that ensures that customers' needs and the supplier 's terms of sale are mutually understood and agreed to.
B) Emphasize that the purchase order is the legal contract between buyer and seller.
C) Be sure that the customer 's order form meets supplier 's specifications.
D) Automatically reject an order if the customer makes demands the supplier deems unacceptable.
Question
To further improve customer loyalty, an investment service organization may effectively use which of the following strategies?

A) A lost-customer analysis II. Free lessons for customers on how to make wise investments III. A customer panel to determine acceptability of a free quarterly newsletter highlighting the lives of long-term investors IV. Direct computer access to market information and investment analysis data for high-value customers
B) I and III only
C) I, II, III, and IV
D) II, III, and IV only
E) I only
Question
A listening post is a:

A) Physical place in the facility where employees gather to discuss comments heard from customers.
B) Place where customer comments, pro and con, are posted for all employees to see.
C) Practice whereby surveillance personnel periodically listen in to ongoing conversations between employees and customers for the purpose of identifying employee behavior that can be improved.
D) Designated individual or group trained to listen carefully to customer comments, and record the comments in a process where the comments can be analyzed (trended) and actions taken to improve customer satisfaction.
Question
All except one of the following could be a benefit to a supplier in a partnership or alliance with a customer. Which one?

A) Enabled to plan long-term production volume based on customer 's forecast of demand
B) Eliminate legal risks
C) Win-win relationship
D) Sharing of resources
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Deck 1: Certified Manager of Quality/Organizational Excellence
1
An organization's environmental scanning process has uncovered the following: They have an underutilized core competency. Their research and development capability is well recognized. Retention of their best performers is a problem. A new technology from another country can be employed in developing a whole new product family. What technique/tool was most likely used to categorize and analyze these and other similar data?

A) Priorities matrix
B) Process map
C) Quality function deployment
D) SWOT analysis
D
2
During the development of company strategy, input should be sought from:

A) Advertising agencies.
B) Competitors.
C) Stakeholders.
D) Public relations advisers.
C
3
Three hospitals are located within the same metropolitan area. One hospital determined that both its cafeteria and its gift shop ranked lower in variety and convenience than the other two hospitals. Which of the following actions would be most appropriate?

A) Normalize the data based on any significant differences in the customers being served (for example, economic strata).
B) Subcontract the cafeteria and gift shop to outside sources that can provide greater attention to these nonmedical aspects of the hospital operations.
C) Collocate the cafeteria and the gift shop in order to share resources, reduce costs, simplify access, and allow a greater investment in variety.
D) Look at customer purchasing patterns and profit margins to maximize investment payback.
A
4
Scenario planning is used for:

A) Deciding which continuous improvement project recommendations to implement first.
B) Determining which method of financial analysis to use.
C) Envisioning several alternative strategic viewpoints.
D) Analyzing the results of a SWOT analysis.
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5
Strategic planning may include all but which of the following?

A) A SWOT analysis
B) Hoshin planning and deployment
C) A seven-step problem-solving technique
D) Scenario planning
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6
Future technology advancements can affect:

A) The services the organization provides. II. The speed of communications and the response time expected. III. The mass obsolescence of major existing products and processes. IV. The increased human competence required to design processes that effectively utilize the advanced technology available.
B) I, II, and IV only
C) II only
D) I and IV only
E) I, II, III, and IV
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7
Organizational components that not only support other internal functions but also support external stakeholders are:

A) Information technology and human resources.
B) Finance and customer service.
C) Engineering and R&
D) D.Marketing and quality.
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8
Reasons for building an economic case for quality may include:

A) The case expresses quality in the language of management. II. The approach justifies quality initiatives in dollars and cents. III. The Sarbanes-Oxley Act requires it. IV. Quality is typically treated as a cost rather than as an investment.
B) The economic case for quality allows for comparison of it with other major investments or projects.
C) III only
D) I, II, IV, and V
E) IV and V only
F) I and II only
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9
The budgets of most internal staff and operations functions do not include figures for:

A) Cash received. II. Capital expenditures. III. Short-term liabilities. IV. Payroll expenses.
B) IV only
C) III only
D) I, II, and III
E) I and III
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10
In developing a private college's balanced scorecard, which four of the following information categories would be best to consider?

A) Alumni contributions II. Current student enrollments III. Percentage of students graduated IV. Faculty competence level
B) Academic rating among competitors VI. Cash flow VII. New and/or updated programs under development
C) III, IV, V, VI
D) I, II, III, VI
E) I, IV, V, VII
F) II, III, V, VI
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11
In preparation for strategic planning, organizations should look closely at their industry to determine:

A) The amount of excess capacity. II. Which competitors might join forces and become a greater threat. III. How employees perceive competitor advertisements. IV. What changes in regulatory requirements are likely to occur.
B) I and II
C) II and III
D) I, II, and IV
E) I, II, III, and IV
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12
The most critical consideration in the deployment of strategic plans is:

A) Sufficient resources can be made available to carry out the plans.
B) The strategic goals do not exceed the present organization's capabilities.
C) Middle management agrees with senior management that the strategic objectives are achievable.
D) A process for tracking and measuring achievement of strategic goals is in place.
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13
Of the following core values and concepts, which would be the most critical to apply to a newly mandated state emergency management agency?

A) Visionary leadership II. Customer-driven excellence III. Agility IV. Focus on the future
B) Focus on results and creating value VI. Management by fact VII. Managing for innovation
C) I, III, V, VII
D) II, V, VI
E) I, III, IV, V, VI, VII
F) V, VI
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14
A stakeholder analysis would:

A) Determine the appropriate dividend amount to be distributed to shareholders.
B) Assess the feasibility of a partnership with a key supplier.
C) Provide the basis to recommend the best strategy for dealing with pressure from a competitor.
D) Delineate the outputs and outcomes needed by customers and regulatory agencies affecting the business.
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15
Knowledge and application of which of the following management theories and styles would be most useful to a manager dealing with an employee who is performing poorly?

A) Maslow's hierarchy of needs II. Herzberg's two-factor theory III. McGregor 's theory X and theory Y IV. Kolb's experiential learning model
B) Behavior management - A-B-C analysis VI. Hersey-Blanchard's situational leadership model VII. Senge's systems thinking
C) II, IV, VII
D) I, II, V, VI
E) I, III
F) IV, VII
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16
Two human resource functions that typically are shared with other organizational components are:

A) Unemployment and relocation administration.
B) Union contract negotiation and OSHA compliance assessment.
C) Staffing and training.
D) Compensation and benefits administration.
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17
The role of the quality function in supporting strategic plans could include all but which of the following?

A) Institute and enforce a quality policy across all organizational functions.
B) Lead the implementation of an ISO 9001 QMS, as identified in the strategic plan.
C) Advise other functions in the setting of quality objectives that are linked to the organization's strategic plan.
D) Facilitate the deployment of the voice of the customer throughout the organization.
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18
Typical tools used as aids in selecting members for a process improvement team are:

A) DiSC and MBTI.
B) MBTI and process mapping.
C) Root cause analysis and fishbone chart.
D) Brainstorming and affinity diagram.
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19
The preferred technique/tool used to determine the strategies of organizations serving the same market as your own organization is:

A) Competitive analysis.
B) Benchmarking.
C) Industry trade association data research.
D) Survey of competitor 's customers.
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20
To establish the direction an organization's first strategic planning initiative should take, the organization should first create:

A) A mission statement.
B) Organizational objectives.
C) A vision statement.
D) Action plans.
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21
Which of the following factors would be most critical to consider early when contemplating a conversion of a "brick and mortar" retail business to an e-business?

A) What changes to the customer database are likely and what the ramifications of those changes are II. What image our new faceless organization will provide to the buying public III. Should IT be outsourced? IV. What internal impacts will the change from a personal service orientation to a transaction-processing orientation have on the workforce we employ and the technology approach we select?
B) III only
C) I, II, and IV
D) I and IV only
E) III and IV only
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22
Which of the following quality tools is most likely to identify a specific quality system effectiveness problem to be addressed?

A) Process map
B) Balanced scorecard
C) Quality management system audit
D) Employee performance appraisal
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23
Assessing and identifying exposure to risks should:

A) Be done prior to investing in a major capital expenditure. II. Be a continual process. III. Be undertaken as part of the feasibility analysis prior to purchasing another business. IV. Include financial, physical, safety, security, health, product liability, and proprietary information risk exposures.
B) I, III, IV only
C) I, III only
D) I, II, III, and IV
E) I only
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24
Which of the following is not an advantage of a formal project report?

A) They generally address a specific issue.
B) They are suitable for long-term retention.
C) They usually include additional background information.
D) They are useful to individuals not closely involved with the project.
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25
Which of the following is not generally a characteristic of communication in hierarchical organizations?

A) Communication is constrained by chain of command.
B) Messages are distorted many times by different frames of reference.
C) Competitive opportunities might be missed because of time delays.
D) Different functional departments communicate at a different pace.
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26
An external risk factor that might need to be considered when conducting project planning is:

A) Lack of resources.
B) Regulatory requirements.
C) Organizational rules.
D) Technological capabilities.
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27
In selecting among different projects, the time value of money is considered for which of the following reasons?

A) To perform a cost-benefit analysis II. To prioritize investments III. To predict cash flow IV. To reduce operating costs
B) I, II, and III only
C) I, II, III, and IV
D) III and IV only
E) I and II only
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28
Based only on the following data, which answer is correct? Purchased 12 delivery trucks for a total of $360,000 Estimated the payback from an ISO 9000 QMS project at $1,200,000 Net income for the year is $3,600,000 Spent $400,000 on implementing the ISO 9001-based QMS

A) ROI is $3: 1 RONA is $10: 1
B) ROI is 33% RONA is $9: 1
C) ROI is 30% RONA is $10: 1
D) ROI is $3: 1 RONA is $9: 1
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29
Bottom-to-top communication techniques include all the following except:

A) Employee suggestion boxes.
B) Quality circles.
C) Performance reviews.
D) Employee satisfaction surveys.
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30
Given a four-week project involving 22 tasks, a budget of $22,000, and a part-time team (project manager and two analysts), which project management tool will most likely be used to display project progress to management?

A) Work breakdown structure
B) Network diagram
C) Budget variance report
D) Gantt/milestone chart
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31
The Baldrige Award performance excellence criteria address which types of performance?

A) Procedural compliance II. Supplier related III. Customer related IV. Financial and marketplace
B) I and IV only
C) III and IV only
D) II, III, and IV only
E) III only
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32
Which of the following elements would be expected to be included in a good project plan?

A) Cost-benefit analysis II. Timetable for completion III. Description of required resources IV. Statement of project deliverables
B) I and II only
C) II and III only
D) I, III, and IV only
E) I, II, III, and IV
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33
The most critical use for project portfolio analysis is to:

A) Compare the net value of a new project relative to continuing previously approved projects
B) Determine the best time to start a new project
C) Assess the feasibility of starting a new project relative to the resources being allocated to existing projects as well as assessing the strategic fit of the new project
D) Make room for a new project by canceling or postponing an existing project that will not produce as high an ROI as the new project
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34
As part of your preparation for a business trip to another country it would be wise to do all but one of the following. Which one would that be?

A) Arrange for an interpreter to be available when you meet with your business contact, unless you are fluent in the language and knowledgeable of the culture and business customs of the country.
B) Plan an elaborate visual presentation that you will make shortly after arrival, and follow that by quickly striving to reach an agreement or make the sale.
C) Resolve to keep your political views and personal beliefs to yourself even though you have strong feelings about the political climate and beliefs prevalent in the country you will visit.
D) Obtain and study information about the country before leaving for your trip.
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35
Which of the following is the biggest problem in cost-benefit analysis?

A) It is easier to accurately estimate benefits than costs.
B) It is easier to accurately estimate costs than benefits.
C) It is an elaborate tool requiring extensive computer support.
D) It is too difficult to compute the time value of money.
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36
Which of the following are methods for mitigating risks?

A) Eliminate the condition that may cause a loss to occur II. Establish contingency plans III. Obtain insurance to cover some of the potential risk IV. Self-insure
B) I, II, III, and IV
C) I only
D) II, III, and IV only
E) I and II only
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37
To gain a competitive edge, a commercial flower grower seeks a technology solution that will improve productivity, quality, customer satisfaction, and profits. Which of the following actions would provide the best results within one year?

A) Contract with a call center to handle customer complaints.
B) Set up an informational Web site to display flowers available.
C) Implement a GIS mapping system to more effectively allocate growing space based on growth requirements of the flowers, soil conditions, sunlight, and irrigation channels.
D) Provide field workers with portable devices for recording flower growth, quality factors, and yield-for downloading nightly to a program to compute productivity, quality status, and potential yield by type of crop and when it will be available for shipment.
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38
All but one of the following represents good communicating skill. Which one does not?

A) Body language and voice convey the same message.
B) Use open-ended and closed questions at appropriate times.
C) Since the brain works much faster than speaking, use the time while another person is speaking to plan your next comment or question.
D) Use a paraphrasing technique to clarify your understanding of what was said.
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39
Knowledge management involves all but which of the following?

A) Recording and storing all the tacit knowledge of all the employees.
B) Documenting "lessons learned" from product development projects.
C) Determining what knowledge to record and store, and by whom and how it will be accessed and used.
D) Building and reinforcing an organization culture that supports and promotes reusing knowledge rather than reinventing knowledge.
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40
The mission statement for a quality function would best focus on:

A) Reducing defects.
B) Assessing the performance of production workers.
C) Companywide and departmental activities that collectively result in product and/or service quality.
D) Leading small teams that break down barriers and reach higher organizational goals.
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41
Theory of constraints:

A) Follows the steps in the process.
B) Follows the processes in the system.
C) Follows the flow of money.
D) Follows after process reengineering.
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42
All except one of the following could be a process goal for a for-profit service organization. Which one?

A) Ensure that the design of a service to customers follows industry safety standards.
B) Ensure that the service delivered produces a profit.
C) Dedication to continual process improvement.
D) Discipline any employee who fails to meet the service standards of the organization.
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43
Lean tools are primarily focused on:

A) Eliminating waste.
B) Better workplace management.
C) Increasing customer value.
D) Reducing resources.
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44
One of the best tools for assessing the impacts of identified risks in the design of a hydroelectric dam and power station is:

A) Failure mode and effects analysis
B) Mean time between failure
C) Cost of poor quality
D) Reliability studies
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45
All but one of the following tool sets could be used to help an educational institution identify the cause of excessive student tardiness. Which one could not?

A) Brainstorming and an Ishikawa diagram
B) Five whys and a problem-solving model
C) FMEA and DMAIC
D) Check sheet and affinity diagram
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46
Which of the following would be the best tool to use to understand the process linkage from supplier to customer?

A) PDSA
B) DMAIC
C) FMEA
D) SIPOC
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47
Long-range trend analysis is typically used in performing which of the following activities?

A) Control charting
B) Management review
C) Internal auditing
D) Design review
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48
A more accurate accounting of the costs to produce a product can be achieved with:

A) Traditional cost accounting methods
B) Activity-based costing
C) Correctly distinguishing between internal and external failure costs
D) Correctly differentiating between prevention and appraisal costs
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49
Process analysis is to a flowchart as brainstorming is to a:

A) Checklist
B) Scatter diagram
C) Mind map
D) Pareto chart
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50
In an insurance claims processing unit, which quality tool would be most useful to analyze the amount of variation in the process used to code claims for computer entry and in determining whether the process is stable prior to embarking on an improvement effort?

A) Control chart
B) Histogram
C) Process map
D) PDPC
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51
Categorizing the cost of quality into failure costs, appraisal costs, and prevention costs is essential to be able to:

A) Reduce the total cost of quality to as near zero as possible.
B) Allocate efforts to effectively balance reduction of failures with detection of failures, as well as preventing failures.
C) Substantially increase appraisal costs to detect failures before shipment.
D) Virtually eliminate appraisal costs by adding to prevention efforts.
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52
Looking at the following data: 40, 20, 10, 20, 50, 90, 80, 30, 20, 40 the mean is , the median is ,

A) 40, 35, 20
B) 40, 20, 40
C) 20, 40, 40
D) 45, 70, 20
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53
Data that is derived from counting is derived from measuring is data.

A) Attribute, variable
B) Numeric, verbal
C) Variable, attribute
D) Quantitative, qualitative
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54
Which of the following correctly describes the sequence of events, from beginning to end, for reducing special causes of variation?

A) Search for the cause. II. Develop a long-term remedy. III. Gather data to identify special causes. IV. Put an immediate remedy in place to contain any damage.
B) I, III, IV, II
C) IV, III, II, I
D) II, I, III, IV
E) III, IV, I, II
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55
The best technique for analyzing qualitative data is to:

A) Designate meaningful categories and assign each response to a category, then sum the number of responses in each category as the indication of the category's importance to the population responding.
B) Assign a value rating to each response, then sum the ratings for all responses, and use the mean as representative of the responses of the total population.
C) Score each response according to personality type.
D) Search for keywords, significant to the research being done, in each response. Count the number of each keyword used and take the keyword usage totals as representative of the population studied.
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56
Takt time:

A) Is a measure of the time between each operation in a cycle.
B) Sets the pace of production to coincide with customer demand.
C) Is another term for cycle time.
D) Is the total sequential processing time to produce one item in a work cell.
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57
A way to ensure a near 100 percent response rate for a survey is to conduct the survey with the group targeted for study at a time and place when everyone in the group is present and everyone is required to complete the survey. There may still be problems possible with this approach that could cause poor decisions to be made from false data, such as:

A) Some persons may refuse to take the survey or they may intentionally corrupt their answers if they resent the method used. II. Some persons may find that the pressure of having to complete the survey without lagging behind most of the group may distort or inhibit clear thinking, and prevent a well-thought-through response. III. In their haste to get it over with, some respondents, without thought, may just randomly answer the questions. IV. Even though response documents may not show respondent identification, some respondents may feel they have to furnish the answers they think management wants to see.
B) IV only
C) II and III only
D) I only
E) I, II, III, and IV
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58
Which of the following statements are essential to understanding the theory of constraints?

A) The system, similar to a chain, is only as strong as its weakest link. II. Not much improvement can occur until the weakest link is addressed. III. Success or failure is dictated by the interaction of the process with the system. IV. Once the weakest link is fixed, the system requires no further improvement.
B) I, II, and III only
C) I, II, and IV only
D) I, II, III, and IV
E) I and II only
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59
A common approach to understanding and improving a process is to:

A) Convene a focus group to study the process.
B) Form a cross-functional ad hoc team to map the existing process, then after analysis, map the process as it might appear after improvement.
C) Implement statistical process control.
D) Audit the process to the ISO 9001 standard.
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60
Disposition of a product using go/no-go data is based on what type of sampling plan?

A) Variable
B) Attribute
C) Reduced
D) Tightened
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61
Which of the following lists is most representative of "external customers" of the town's public high school?

A) Students, parents, colleges, potential employers, town school board, and community volunteer agencies
B) Students, parents, teachers, potential employers
C) Students, parents, colleges, potential employers
D) Students, parents, town school board
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62
In the development of a consumer appliance product survey which of the following data would likely aid the process?

A) An analysis of customer complaints received II. Satisfaction data from a customer focus group III. Number of product defects detected prior to shipments IV. Warranty registration data
B) I only
C) I, II, III, and IV
D) I and II only
E) I, II, and IV only
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63
One of the most important customer service principles to apply is:

A) "The customer is always right."
B) When dealing with a problem, thank the customer for bringing the problem to you and allowing you to help resolve the problem.
C) State your organization's policy regarding handling of such problems.
D) Be sure the customer realizes you are not responsible for the problem.
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64
In medical device manufacturing and in pharmaceutical production, strict traceability is mandated by regulation. What type of actions may draw upon this requirement?

A) Fulfillment of an unconditional guarantee II. Replacement of failed product under warranty III. A product recall that is needed to safeguard product users IV. Analysis of problems leads to process improvement
B) II, III, and IV only
C) III and IV only
D) I, II, and III only
E) I, II, III, and IV
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65
At a distributor of plumbing supplies, which one of the following actions will have the most positive influence on employees to improve products, processes, and services?

A) Provide rubber mats to relieve the fatigue of counter service personnel.
B) Implement an inventory system that will ensure that all commonly ordered items are in stock when needed.
C) Train all employees in the seven basic quality tools.
D) Establish and support cross-functional process improvement teams to address processes where potential improvement is indicated.
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66
Which of the following is true about the relationship between Cp and Cpk?

A) Cp = Cpk when the process is centered. II. Cpk is always less than or equal to Cp. III. Cp is always less than or equal to Cpk. IV. There is no direct relationship between Cp and Cpk.
B) I only
C) IV only
D) I and II only
E) III and IV only
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67
Typical factors chosen as criteria for supplier selection would include all but:

A) Quality award winner.
B) Financial stability of supplier.
C) Capability to meet current and future demands.
D) Supplier 's track record for on-time delivery and incoming quality.
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68
A condition under which a supplier appearing on the customer 's "OK to buy from" list would not be issued an order would be:

A) Item needed is not available from any of OK'd suppliers. II. Supplier 's quality rating has dropped below acceptable standards on last two shipments. III. OK'd supplier does not have the capacity to fulfill the customer 's demands for the item needed. IV. One or more factors from the selection criteria will not now be met by the supplier.
B) I and III only
C) I and II only
D) I, II, and III only
E) I, II, III, and IV
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69
For a bookseller that sells entirely through a Web site, managing the diversity of customers would entail which of the following?

A) Adopting lean techniques to reduce cycle time II. Continually developing new service features to take the place of services that have become "must haves" III. Responding to the needs of a diverse customer base IV. Understanding and working closely with multiple publishers
B) III only
C) II and III only
D) II, III, and IV only
E) I, II, III, and IV
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70
The first step in a successful customer satisfaction program is to:

A) Hire and train qualified staff and reward them based on performance.
B) Get to know the customers' most pressing needs.
C) Develop a strategic alliance/partnership with key customers.
D) Get management commitment to a focus on customers.
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71
Which of the following techniques is most useful for measuring the test- retest reliability of a survey?

A) Calculate Cronbach's coefficient alpha.
B) Use differently worded items to measure the same attribute.
C) Have the same respondents complete a survey at two different points in time.
D) Conduct an organized review of the survey to ensure that it includes everything it should.
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72
Some of the metrics that could be used to measure performance of a commercial painting contractor are:

A) On-time completion of a painting contract. II. Quality rating resulting from customer 's third-party on-site inspection. III. Amount (time and cost) or rework required. IV. Accuracy of billing.
B) I, II, III, and IV
C) I and III only
D) I, II, and III only
E) I, III, and IV only
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73
Facts pertaining to which of the following would be critical in developing a system of supplier performance measurement for an aircraft engine manufacturer?

A) Amount of technical support provided by the supplier II. Supplier Cpk III. Defective product reworked before shipment IV. MTBF of product after installation
B) II and IV only
C) I, II, III, and IV
D) I and II only
E) I, II, and IV only
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74
In planning the strategy for improving supplier performance, which of the following should be considered?

A) How the supplier will receive performance feedback II. How effective is the supplier 's corrective and preventive action system III. Whether the supplier 's quality management system is certified to an industry-pertinent standard IV. How much of this organization's resources will be needed to assist suppliers in improving performance
B) I, II, III, and IV
C) III and IV only
D) I and IV only
E) II, III, and IV only
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75
Management's goal is to continually improve customer service and satisfaction. Their actions include the following. Which of these actions is least likely to help achieve the goal?

A) Provide for positive reinforcement to employees who are trying to satisfy customers.
B) Encourage and support cooperation and conformance to quality standards amongst internal customers.
C) Establish an employee suggestion box system.
D) Ensure that employees have the training, information, and physical things they need to do their jobs well.
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76
The best use of the cost of lost banking customers is to:

A) Compare this cost from one accounting period to another.
B) Compare lost-customer costs with costs to obtain new customers, and if the cost of obtaining new customers is greater, refocus efforts on customer retention.
C) Use these figures to reprimand employees responsible for lost customers.
D) Justify an initiative to contact lost customers and entice them to come back.
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77
An action of highest priority is for suppliers to:

A) Implement a system that ensures that customers' needs and the supplier 's terms of sale are mutually understood and agreed to.
B) Emphasize that the purchase order is the legal contract between buyer and seller.
C) Be sure that the customer 's order form meets supplier 's specifications.
D) Automatically reject an order if the customer makes demands the supplier deems unacceptable.
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78
To further improve customer loyalty, an investment service organization may effectively use which of the following strategies?

A) A lost-customer analysis II. Free lessons for customers on how to make wise investments III. A customer panel to determine acceptability of a free quarterly newsletter highlighting the lives of long-term investors IV. Direct computer access to market information and investment analysis data for high-value customers
B) I and III only
C) I, II, III, and IV
D) II, III, and IV only
E) I only
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79
A listening post is a:

A) Physical place in the facility where employees gather to discuss comments heard from customers.
B) Place where customer comments, pro and con, are posted for all employees to see.
C) Practice whereby surveillance personnel periodically listen in to ongoing conversations between employees and customers for the purpose of identifying employee behavior that can be improved.
D) Designated individual or group trained to listen carefully to customer comments, and record the comments in a process where the comments can be analyzed (trended) and actions taken to improve customer satisfaction.
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80
All except one of the following could be a benefit to a supplier in a partnership or alliance with a customer. Which one?

A) Enabled to plan long-term production volume based on customer 's forecast of demand
B) Eliminate legal risks
C) Win-win relationship
D) Sharing of resources
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Unlock for access to all 150 flashcards in this deck.