Question 1

Manufacturing operations can be classified according to the depth of their inventory stock.

Accepted Answer

False

Question 2

The American National Standards Institute guarantees continued ISO 9000 certification for all the ISO certified American companies.

Accepted Answer

The American National Standards Institute does not guarantee continued ISO 9000 certification for American companies. Each company must maintain and renew their certification on their own.

Question 3

Durability is a characteristic that determines the quality of a service.

Accepted Answer

Durability refers to the ability of a product or item to withstand wear and tear over time. It is not a characteristic of a service, but rather of a physical product. Therefore, durability does not determine the quality of a service.

Question 4

ISO 9000 is a series of five international standards for achieving consistency in quality management and quality assurance in companies throughout the world.

Accepted Answer

ISO 9000 is indeed a series of five international standards for achieving consistency in quality management and quality assurance in companies throughout the world.

Question 5

Empowering workers means permanently passing decision-making authority and responsibility from managers to workers

Accepted Answer

Empowering workers involves giving them the authority and responsibility to make decisions rather than relying solely on management.

Question 6

Service capability is an ongoing commitment to increase product and service quality by constantly assessing and improving the processes and procedures used to create those products and services.

Accepted Answer

The answer of Service capability is an ongoing commitment to...

Question 7

LightLife uses 200,000 eggs a year. If the ordering cost is $1 per order and the holding cost is $0.4 per egg, then the optimal quantity to order eggs is _____.
A) 1,000 eggs
B) 1,500 eggs
C) 2,000 eggs
D) 2,500 eggs

Accepted Answer

The answer of LightLife uses 200,000 eggs a year. If...

Question 8

Woodlander is a chain of resorts where part of employees' monthly incentives depends on customer satisfaction. Sixty percent of the incentive is based on performance and the remaining forty percent is based on customer satisfaction ratings and the quality of service. In this case, Woodlander is committed to _____.
A) total quality management
B) line-flow production
C) implementing a just-in-time program
D) internal service quality

Accepted Answer

Woodlander is committed to total quality management, which is a management philosophy that emphasizes continuous improvement of processes and products, customer satisfaction, and employee empowerment. The fact that part of employees' monthly incentives depends on customer satisfaction demonstrates the company's commitment to providing high-quality service and meeting customer needs. Line-flow production and just-in-time programs are production strategies that focus on efficiency and reducing waste, which are not directly related to customer satisfaction. Internal service quality refers to the level of quality in the support services provided to employees within a company, which is important but not the main focus of Woodlander's commitment.

Question 9

Customer satisfaction and customer loyalty lead to long-term profits and growth.

Accepted Answer

When customers are satisfied with a company's products or services, they are more likely to become loyal to the brand and make repeat purchases. This leads to long-term profitability for the company as loyal customers tend to spend more and also become advocates for the brand, leading to new customer acquisition.

Question 10

The easier it is to maintain a working product or fix a broken product, the more _____ that product is.
A) reliable
B) serviceable
C) tangible
D) durable

Accepted Answer

Serviceability refers to the ease with which a product can be repaired or maintained. Thus, a product that is serviceable is easier to maintain or fix, hence more reliable. Tangibility refers to whether a product can be physically touched, while durability refers to a product's ability to withstand wear and tear over time. While both of these characteristics can affect a product's reliability, serviceability is the best fit for the given description.

Question 11

Ordering cost refers to the costs of downtime and lost efficiency that occur when a machine is changed or adjusted to produce a different kind of inventory.

Accepted Answer

Ordering cost refers to the costs associated with ordering and receiving inventory, such as processing purchase orders and receiving shipments. The cost referred to in the statement is actually called setup cost, which is incurred when a machine is adjusted to produce a different kind of inventory.

Question 12

A just-in-time (JIT) inventory system is used with independent demand systems.

Accepted Answer

The answer of A just-in-time (JIT) inventory system is used...

Question 13

As the Baldrige Award is directly based on the ISO 9000 standards, it is essentially the U.S. version of recognition for excellence in meeting the ISO 9000 standards.

Accepted Answer

The Baldrige Award is not directly based on the ISO 9000 standards, but rather it focuses on overall business performance and the criteria cover a wide range of organizational activities beyond quality management. However, organizations pursuing the Baldrige Award may use the ISO 9000 standards as a tool for quality management.

Question 14

Timothy is a manager in a footwear manufacturing company. He calculates the daily productivity by determining the amount of plastic required to produce a pair. This daily productivity is an example of _____.
A) partial productivity
B) internal service quality
C) multifactor productivity
D) service recovery

Accepted Answer

Timothy's calculation of the daily productivity is an example of partial productivity, which involves measuring outputs using only one input, such as the amount of plastic used in this case. Internal service quality, multifactor productivity, and service recovery do not apply to this scenario.

Question 15

Churchill Automobiles is a delivery truck manufacturer. It is a new company and wants to gather information on how to improve the standard of quality delivered by the company's production team. Based on this information, which of the following ISO standards must the company refer to?
A) ISO 15001
B) ISO 9000
C) ISO 10001
D) ISO 12000

Accepted Answer

ISO 9000 is the standard for quality management systems and provides guidelines for achieving consistent results and customer satisfaction. It is the most appropriate standard for Churchill Automobiles to refer to in order to improve their standard of quality.

Question 16

Economic order quantity (EOQ) formulas are intended for use with dependent demand systems.

Accepted Answer

The answer of Economic order quantity (EOQ) formulas are intended...

Question 17

Initial assembly is the process in which all the work-in-process inventories are assembled to create finished goods inventories.

Accepted Answer

Initial assembly is not the process in which work-in-process inventories are assembled to create finished goods inventories. It is actually the opposite, where raw materials are assembled to create work-in-process inventories.

Question 18

Which of the following is a kind of input that is frequently used when determining partial productivity?
A) Service quality
B) Labor
C) Finished goods
D) Profits

Accepted Answer

Labor is a common input used when determining partial productivity as it measures the output generated per unit of labor input. Service quality, finished goods, and profits are outputs, not inputs.

Question 19

Average aggregate inventory for a month can be determined by simply averaging the inventory counts at the end of each business day for that month.

Accepted Answer

The answer of Average aggregate inventory for a month can...

Question 20

Labor productivity typically indicates the cost or number of hours of labor it takes to produce an output.

Accepted Answer

Labor productivity is a measure of how efficiently individuals or groups of workers are able to produce goods or services. It is calculated by dividing the output produced by the number of labor hours used to produce it. Therefore, labor productivity does indicate the cost or number of hours of labor required to produce an output.

Quiz 18: Managing Service and Manufacturing Operations