Question 1

Measuring quality in a service business is easier than measuring quality in a production business. All you have to do is ask the customer.

Accepted Answer

Measuring quality in a service business involves multiple dimensions such as reliability, responsiveness, assurance, empathy, and tangibles, which are not solely determined by customer feedback. It requires a comprehensive approach including surveys, observations, and performance metrics, making it complex and multifaceted.

Question 2

Cooperative purchasing organizations are firms that specialize in the purchasing function and provide this service to small businesses.

Accepted Answer

The answer of Cooperative purchasing organizations are firms that specialize...

Question 3

A genuine concern for customer needs and customer satisfaction can assist the TQM efforts of a small business.

Accepted Answer

A genuine concern for customer needs and satisfaction is a key principle of Total Quality Management (TQM). By focusing on meeting customer needs, a small business can improve its products and services, reduce waste, and increase customer loyalty and satisfaction, all of which are central to the TQM philosophy.

Question 4

Quality is best defined as the totality of features and characteristics of a product or service that impacts the firm's ability to satisfy stated or implied needs.

Accepted Answer

Quality is a comprehensive concept that includes all the features and characteristics of a product or service that contribute to meeting customer needs and expectations. Quality is not just limited to the physical attributes of a product; it also encompasses issues such as reliability, durability, customer service, and value for money. The ability of a firm to deliver quality products and services is a key determinant of its success in the marketplace.

Question 5

The quality of a finished product depends on the quality of the raw materials used to make it.

Accepted Answer

The quality of raw materials is a significant factor in the quality of the final product. If poor quality raw materials are used, the finished product will likely be poor quality as well.

Question 6

Unless a firm is planning to market products in Europe or supply components to automakers in the U.S., getting ISO 9000 certification is a waste of time and money.

Accepted Answer

While ISO 9000 certification may not be necessary for firms not operating in Europe or supplying components to U.S. automakers, it can still provide benefits such as improving internal processes and increasing customer confidence. Therefore, it is not always a waste of time and money.

Question 7

While large corporations have access to data mining techniques for insights into customer buying patterns, small companies typically cannot afford the software.

Accepted Answer

Small companies can also access data-mining techniques through affordable or even free, open-source software options, and cloud-based analytics services that have made these technologies more accessible to businesses of all sizes.

Question 8

Poka-yoke is a proactive approach that seeks to mistake-proof a firm's operations.

Accepted Answer

Poka-yoke, also known as mistake-proofing, is a proactive approach that seeks to prevent errors from occurring in a firm's operations. This is achieved through the use of mechanisms and processes that prevent mistakes and defects from happening or detecting and correcting them before they cause harm.

Question 9

Weighing bags of mulch during a production process is an example of an variable inspection.

Accepted Answer

Variable inspection involves measuring characteristics that may fluctuate during the production process, such as weight or dimensions. Weighing bags of mulch is an example of measuring the weight of a variable characteristic, making it an example of variable inspection.

Question 10

The simplest method of inventory record-keeping is called the perpetual inventory system.

Accepted Answer

The simplest method of inventory record-keeping is the periodic inventory system, not the perpetual inventory system. The perpetual system continuously updates inventory records, while the periodic system updates records at specific intervals.

Question 11

Acceptance sampling makes it possible to determine tolerance limits that allow for inherent variation due to chance.

Accepted Answer

The answer of Acceptance sampling makes it possible to determine...

Question 12

The Supply Chain Operations Reference model is a list of five critical factors when assessing a strategic alliance.

Accepted Answer

The answer of The Supply Chain Operations Reference model is...

Question 13

The cost of getting quality right may be more than a small business can bear.

Accepted Answer

The answer of The cost of getting quality right may...

Question 14

Buying components is preferable to making them when it is necessary to protect a secret design for a seasonal item.

Accepted Answer

Buying components can actually increase the risk of exposing a secret design, as it involves sharing information with external suppliers. Making components in-house helps in keeping the design confidential.

Question 15

Kaoru Ishikawa contends that 85% of the typical company's quality problems can be solved by using "The Basic Seven" quality tools.

Accepted Answer

The answer of Kaoru Ishikawa contends that 85% of the...

Question 16

The importance of purchasing rests on three areas: quality, delivery, and service.

Accepted Answer

The answer of The importance of purchasing rests on three...

Question 17

Because the small business owner must perform many functions that consume many hours each day, it is acceptable practice to decline a salesperson's request for an appointment.

Accepted Answer

The answer of Because the small business owner must perform...

Question 18

Firms who pay attention to operating details are stronger than those who empower their customers for quality improvement.

Accepted Answer

Empowering customers for quality improvement can lead to increased customer satisfaction and loyalty, as well as valuable feedback for the firm to improve their operations. Focusing only on operating details without considering customer input can lead to a lack of innovation and failure to meet evolving customer needs.

Question 19

Outsourcing non-competitive functions can free the entrepreneur to focus on his/her greatest strengths.

Accepted Answer

Outsourcing non-competitive functions allows entrepreneurs to delegate tasks that are not their strengths to others who may have more expertise in those areas. By doing so, entrepreneurs can focus on their greatest strengths and increase efficiency and productivity in their business operations.

Question 20

An example of associative forecasting is when a concert promoter predicts attendance based on the trend of attendance of the same event in the same location in previous years.

Accepted Answer

Associative forecasting involves using predictive models that incorporate variables or factors other than time to forecast future demand, such as weather conditions, economic indicators, or marketing efforts. Predicting attendance based on past trends of the same event is an example of time series forecasting, not associative forecasting.

Quiz 21: Managing Operations