Question 1

COQ measures such as measures of customer satisfaction and employee satisfaction are useful indicators of long-run performance.

Accepted Answer

Nonfinancial measures such as measures of customer satisfaction and employee satisfaction are useful indicators of long-run performance.

Question 2

Which of the following correctly describes manufacturing cycle time?

Accepted Answer

Manufacturing cycle time is the amount of time it takes from when an order is ready to start on the production line to when it becomes a finished good plus its waiting time. This includes the time needed for all processing and handling steps involved in producing an item or completing a service.

Question 3

Which of the following true of nonfinancial measures of quality?

Accepted Answer

Nonfinancial measures of quality provide immediate short-run feedback on whether quality-improvement efforts are succeeding.

Question 4

Without nonfinancial quality measures, ________.

Accepted Answer

The answer of Without nonfinancial quality measures, ________.
...

Question 5

An advantage of nonfinancial measures of quality include that they ________.

Accepted Answer

Nonfinancial measures of quality, such as customer satisfaction and product/service reliability, provide insight into the overall performance and sustainability of a company in the long-run, as opposed to just focusing on short-term financial gains.

Question 6

Which of the following correctly describes customer-response time?

Accepted Answer

Customer-response time is the amount of time from when a customer places an order for a product or requests a service to when the product or service is delivered to the customer. Option A describes production lead time, option B describes delivery time, and option D describes manufacturing lead time.

Question 7

Customer response time comprises of ________.

Accepted Answer

Customer response time includes receiving the order (receipt time), manufacturing the product (manufacturing cycle time), and delivering the product (delivery time). Therefore, option C is the correct answer as it includes all three components of customer response time. Options A, B, and D do not include all three components, and they are not the complete definition of customer response time.

Question 8

Which of the following is an advantage of COQ measures?

Accepted Answer

COQ (Cost of Quality) measures help managers understand the trade-offs between different types of costs, such as prevention and appraisal costs versus internal and external failure costs, to improve quality and reduce overall costs.

Question 9

Which of the following is an advantage of nonfinancial measures of quality?

Accepted Answer

Nonfinancial measures of quality, such as customer satisfaction surveys, can provide immediate feedback on whether quality-improvement efforts are succeeding. This allows managers to make adjustments in real time rather than waiting for financial reports to show the impact of quality improvements.

Question 10

Distribution of questionnaires to customers regarding product quality and improving the product on certain key areas based on the inferences drawn from the questionnaires is an example of a nonfinancial measure of quality.

Accepted Answer

The distribution of questionnaires and analyzing customer feedback related to product quality is a nonfinancial measure of assessing the quality of the product. This method helps to understand customer perceptions and to identify key areas of improvement.

Question 11

Which of the following is the mathematical expression for calculating manufacturing cycle efficiency (MCE)?

Accepted Answer

Manufacturing Cycle Efficiency (MCE) is calculated by dividing the value-added manufacturing time by the total manufacturing cycle time, to measure the proportion of the manufacturing cycle that is adding value.

Question 12

Without financial quality measures, ________.

Accepted Answer

The answer of Without financial quality measures, ________.
...

Question 13

Total costs of quality help managers aggregate costs to evaluate the tradeoffs of incurring prevention costs and appraisal costs to eliminate internal and external failure costs.

Accepted Answer

Total costs of quality do help managers aggregate costs to evaluate the tradeoffs of incurring prevention costs and appraisal costs to eliminate internal and external failure costs.

Question 14

Any factor where a change in the factor causes a change in the speed with which an activity is undertaken is referred to as ________.

Accepted Answer

A time driver is any factor that causes a change in the speed of an activity.

Question 15

The time from which a machine is setup for order till the product becomes a manufactured good is ________.

Accepted Answer

The answer of The time from which a machine is...

Question 16

The amount of time from when an order is ready to start on the production line to when it becomes a finished good is referred to as ________.

Accepted Answer

Manufacturing time refers to the time taken from when an order is ready for production to when it is completed as a finished good. The other options do not specifically refer to this time duration. Time driver is a measurement used to identify how long a process takes, customer-response time is the time it takes for a business to respond to a customer's request or issue, and delivery time is the time it takes for a finished product to be transported to the customer.

Question 17

The amount of time from when a customer places an order for a product to when the product or service is delivered to the customer is referred to as ________.

Accepted Answer

Customer-response time refers to the total time elapsed from when a customer places an order until the product or service is delivered to the customer. This encompasses all processes involved in fulfilling the order, including production, packaging, and shipping.

Question 18

The time it takes the marketing department to specify to the manufacturing department the exact requirements of the customer's order is referred as ________.

Accepted Answer

The answer of The time it takes the marketing department...

Question 19

Which of the following is true of a bottleneck?

Accepted Answer

A bottleneck occurs when the work to be performed approaches or exceeds the capacity available to do it. This can lead to delays in the operation, increased lead times, and decreased efficiency. Option B is not correct because a bottleneck is the opposite of having excess capacity. Option C is incorrect because it refers to demand uncertainty, not a bottleneck. Option D is not a complete definition of a bottleneck, as it only refers to one aspect of it (the time taken by a manufacturing department).

Question 20

Which of the following is true of COQ measures?

Accepted Answer

COQ measures, or Cost of Quality measures, are used to help managers evaluate the costs and benefits of incurring prevention and appraisal costs. They identify the costs associated with preventing defects or finding and correcting them before they reach customers. They also identify the costs associated with defects that do reach customers, such as warranty repairs and customer dissatisfaction. While they may indirectly impact customer and employee satisfaction, their primary purpose is to evaluate the costs of quality control measures. They do not provide immediate short-run feedback but are used to evaluate long-term performance. They may highlight financial processes that need improvement, but their focus is on quality control costs.

Quiz 19: Balanced Scorecard: Quality and Time