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MGSC 395 Practice Exam 1

A credit? card-processing firm would be likely to list the following competitive priorities for its external? customers:

A.
Concurrent engineering
B.
Mass customization
C.
Consistent quality
D.
Postponement

c
Which of the following events from the twentieth century defines the history of operations and supply chain? management?

A.
The invention of the assembly line for the Model T car by Henry Ford.
B.
Alfred? Sloan’s introduction of strategic planning for achieving product proliferation and variety.
C.
The Toyota Production System for removing wasteful activities from an organization.
D.
All of the above.

d
SSS is a local restaurant serving the needs of college? students, faculty, and staff. The manager is considering adding a website so? carry-out customers can order in advance more easily. Which process would be a core process in this new? undertaking?

A.
Scheduling wait staff
B.
Web design
C.
Budgeting
D.
Creating file system for recipes

b
Gymtastic was able to serve large crowds of customers and then adjust operations to serve very few customers thanks to their competitive capability related to

A.
cost.
B.
flexibility.
C.
quality.
D.
time.

b
A? ________ process is a set of activities that delivers value to external customers.

A.
strategic
B.
line manufacturing
C.
core
D.
service

c
What do all processes? have?

A.
inputs and outputs
B.
purchased materials and services
C.
workers and managers
D.
equipment and facilities

a
United States business operations? (i.e., product? design) in an international area based on the local standard rather than U.S. standards is an example of a decision based on? _______ considerations.

A.
productivity
B.
diversity
C.
ethical
D.
environmental

c
Technological change is proceeding at a rapid? rate, but there are many challenges such as

A.
robots have not proven useful in manufacturing.
B.
the Internet is too difficult to use.
C.
employees may resist technological change if it is not managed well.
D.
technology cannot provide a competitive advantage.

c
The three mainline functions of any business are

A.
?operations, accounting, and management.
B.
?operations, marketing, and information technology.
C.
?operations, marketing, and management.
D.
?operations, marketing, and finance.

d
If? “every process and every person in an organization has? customers,” then

A.
external suppliers provide only to external customers.
B.
no customers can have both internal and external suppliers.
C.
internal suppliers provide products to external customers.
D.
some customers are external and some are internal.

d
In market? analysis, the needs assessment step identifies

A.
psychological factors.
B.
demographic factors.
C.
?product/service attributes.
D.
market segments.

c
Core competencies reflect the collective learning of the organization. Core competencies include

A.
an abundance of competitors.
B.
a? well-trained, flexible workforce.
C.
employee benefits.
D.
an abundance of customers.

b
Which of the following statements about productivity is? correct?

A.
The value of the input resources used divided by the values of the outputs produced.
B.
Multifactor inputs must be expressed in a common unit of measure.
C.
The number of items produced.
D.
The number of workers used.

b
A customer service package would exclude which of the? following?

A.
Explicit services
B.
Supporting facility
C.
Marketing
D.
?Delivery/installation

c
The foundation for managing processes and value chains is

A.
operations strategy.
B.
project management.
C.
globalization.
D.
a market orientation.

a
Which of the following are characteristics of service provider? operations?

A.
Perishable outputs
B.
Tangible output
C.
Low customer contact
D.
Low labor requirements

a
_______ are the fundamental activities that organizations use to do work and achieve their goals.

A.
Operations
B.
Inputs
C.
Processes
D.
Tasks

c
Which core process includes the activities required to produce and deliver the service or product to the external? customer?

A.
customer relationship process
B.
order fulfillment process
C.
new? service/product development process
D.
supplier relationship process

b
Selecting the transportation mode? (train, ship,? truck, airplane, or? pipeline) and scheduling both? in-bound and outbound shipments is typically accomplished by which supply chain? process?

A.
logistics
B.
warehousing
C.
sourcing
D.
?cross-docking

a
Which of the following scenarios illustrates an order? winner?
A.
Ken had always been fascinated by shiny? objects, so he plucked the? chrome-plated thermos from the shelf and raced to the nearest checkout line.
B.
A safety conscious customer considers only vehicles that have side air bags and? anti-lock brakes.
C.
As part of her initial? search, Janice screened mutual funds based on a? five-year return of twenty percent and the manager tenure of at least ten years. She planned to study the prospectus for each of those funds before investing her nest egg.
D.
A company specifies that they will purchase materials only from suppliers that have achieved a specific certification.
a
Regardless of how departments and functions are individually? managed, they are always linked together through

A.
information systems.
B.
procedures.
C.
executive oversight.
D.
processes.

d
The finance function influences operating decisions about

A.
employee training.
B.
capacity expansion.
C.
delivery promises.
D.
demand forecasts.

b
Low manufacturing volumes typically dictate the following process? decision:

A.
More vertical integration.
B.
A line process.
C.
Less capital intensity and automation.
D.
Less resource flexibility.

c
Which of the following statements is generally true for manufacturing processes when volumes are high and process divergence is? low?

A.
Line flow is possible.
B.
Flexibility is not needed to utilize resources effectively.
C.
Less discretion is allowed in order to avoid the unpredictable demands required by customized orders.
D.
All of the above statements are true.

d
Among the data analysis? tools, the one used to record the frequency of occurrence of certain product or service characteristics is a

A.
graph.
B.
Pareto chart.
C.
histogram.
D.
checklist.

d
Some important metrics to consider for a financial advising firm might include

A.
integration.
B.
customer satisfaction.
C.
reengineering.
D.
benchmarking.

b
Economies of scope are characterized by

A.
high capital intensity and low resource flexibility.
B.
high capital intensity and high resource flexibility.
C.
low capital intensity and high resource flexibility.
D.
low capital intensity and low resource flexibility.

b
Letting a group of people knowledgeable about the process propose ideas for change is an example of

A.
strategic fit.
B.
brainstorming.
C.
benchmarking.
D.
continuous process improvement.

b
The result of a? firm’s splitting large? plants, which produced all the? company’s products, into several specialized smaller plants is

A.
cells.
B.
PWPs.
C.
focused factories.
D.
vertical integration.

c
What would be the likely process characteristics of the typical college dining? hall?

A.
Highly customized service
B.
Considerable process divergence
C.
Flexible flows
D.
Line flows

d
The difference between? people-processing service and? possession-processing services is that

A.
services are provided for the customer in? both, but the customer must be present only in? people-processing.
B.
services are provided for the customer who must be present in? people-processing; services are provided to the customer who does not need to be present in? possession-processing services.
C.
services are provided to the customer who must be present in? people-processing; services are provided for the customer who does not need to be present in? possession-processing services.
D.
services are provided to the customer in? both, but the customer must be present only in? people-processing.

c
Which service process structure typically involves work flows with steps that vary from one customer to the? next?

A.
back office
B.
automated office
C.
hybrid office
D.
front office

d
Which of the following conditions is generally associated with a job? process?

A.
High product or service volume.
B.
Resources are allocated to specific products.
C.
High resource flexibility.
D.
Relatively standardized products.

c
A primary enabler of process reengineering is

A.
fixed automation.
B.
ISO 14001.
C.
information technology.
D.
the? service-product matrix.

c
There are several types of benchmarking. These? include:

A.
technical benchmarking.
B.
integration benchmarking.
C.
distributive benchmarking.
D.
functional benchmarking.

d
A? high-volume manufacturing process typically means all of the following? EXCEPT:

A.
a? line, or? continuous, process.
B.
less resource flexibility.
C.
more customer involvement.
D.
greater capital intensity.

c
The six step blueprint for process analysis begins? with:

A.
Define scope
B.
Identify opportunity
C.
Redesign process
D.
Document process

b
A major supplier to an auto manufacturer would most likely adopt which production and inventory? strategy?

A.
Postponement strategy
B.
?Make-to-order strategy
C.
?Assemble-to-order strategy
D.
?Make-to-stock strategy

d
The Pareto concept refers to

A.
competitive benchmarking.
B.
the probability that a product will be functional when used.
C.
a large percent? (say 80%) of the problems being caused by a small percent? (say 20%) of the factors.
D.
quality at the source.

c
A good brainstorming session has the following? characteristic:

A.
Ability to think of creative? ideas, no matter how far fetched
B.
Good judgment skills
C.
Ability to analyze a process analytically
D.
Skill in identifying the best payoffs

a
Specialization results in benefits such as

A.
less training time per employee.
B.
a? slower, deliberate work pace.
C.
higher wages.
D.
high employee morale.

a
A high? customer-contact service process typically indicates all of the following? EXCEPT:

A.
a? front-office process structure.
B.
diverse work flows.
C.
more resource flexibility.
D.
low complexity.

d
Which of the following statements about a high customer contact? front-office service process is? true?

A.
When volume is? higher, capital intensity is less likely.
B.
The customer? (internal or? external) is? present, actively? involved, and receives personal attention.
C.
The service created for each customer is standardized.
D.
All of the above statements are true.

b
Which of the following is NOT one of seven mistakes to avoid when managing? processes?

A.
not connecting with strategic issues
B.
not involving the right people in the right way
C.
not creating an infrastructure for continuous process improvement
D.
being satisfied even when fundamental? “reengineering” changes are not made

d
An example of a plant within a plant? (PWP) is

A.
the metropolitan library as part of city government.
B.
the marketing department at your business school.
C.
an emergency department at a large municipal hospital.
D.
the French fry operation at a fast food franchise.

c
A back office service structure is most similar to

A.
a job process in manufacturing.
B.
a line process.
C.
a small batch process.
D.
a large batch process.

b
A systematic approach to process analysis would include the following? step:

A.
Reengineering
B.
Define scope
C.
Integration
D.
Order fulfillment

b
The common denominator for decisions on service processes is? _______, but for manufacturing processes it is? _______.

A.
customer? variety; output volume
B.
customer? variety; product variety
C.
customer? contact; output volume
D.
customer? contact; product variety

c
A control chart typically does NOT show which of the following? values?

A.
Upper control limit
B.
Lower control limit
C.
Outer limit
D.
Target line

c
What is the statement used to describe the proportion of defective items? (outside of? specifications) that the buyer will accept in a? shipment?

A.
value standard
B.
acceptance sample ratio
C.
batch acceptance rate
D.
acceptable quality level

d
Which of the following is one of the seven major criteria for the Baldrige? award?

A.
results
B.
process expertise
C.
industry standing
D.
vendor management

a
Which of the following is true about ISO? 9001:2008, the standards governing documentation of a quality? program?

A.
Companies become certified by proving to a qualified external examiner that they comply with all the requirements.
B.
Compliance with ISO? 9001:2008 standards says nothing about the actual quality of a product.
C.
Compliance with ISO? 9001:2008 standards indicates to customers that companies can provide documentation to support whatever claims they make about quality.
D.
All of the above are true.

d
Most experts on the costs of poor process performance and quality estimate losses in the range of? ________ percent of gross sales for defective or unsatisfactory products.

A.
20 to 30
B.
30 to 40
C.
0 to 10
D.
10 to 20

a
TQM stresses three principles for achieving high levels of process performance and quality. Which of the following is one of? them?

A.
customer satisfaction
B.
continuous employee improvement
C.
?life-long employment
D.
management leadership

a
In acceptance? sampling, if the sample passes the test then

A.
the entire quantity is returned to the supplier.
B.
the entire quantity of items is accepted.
C.
the supplier is producing? 100% high quality output.
D.
the remaining quantity of items is subjected to 100 percent inspection.

b
Which of the following is considered one of the four major cost of quality? categories?

A.
lost goodwill
B.
defects
C.
appraisal
D.
postponement

c
A? firm’s internal program in employee involvement includes which of the following? considerations?

A.
Defining who the customer is
B.
Psychological impressions
C.
Supplier management
D.
Product availability

a
The process capability index is compared to a critical value to judge whether a process is capable. Firms striving to achieve? six-sigma performance use a critical value of

A.
2.0.
B.
6.0.
C.
1.33.
D.
1.0.

a
A process failure that results in the? process’s inability to meet advertised performance standards violates which of the five definitions of? quality?

A.
fitness for use
B.
conformance to specifications
C.
value
D.
psychological impressions

b
The application of statistical techniques to determine whether a quantity of material should be accepted or rejected based on the inspection or test of a sample is known as

A.
benchmarking.
B.
acceptance sampling.
C.
the Deming Wheel.
D.
specification review.

b
The ISO? 14001:2004 standards require documentation of a? firm’s environmental program. Which component requires a plan to improve performance in resource use and pollutant? output?

A.
Environmental Performance Evaluation
B.
?Life-Cycle Assessment
C.
Environmental Labeling
D.
Environmental Management System

d
Which of the following is an element of a deceptive business practice that presents a major concern for service or product? quality?

A.
The transaction is intended to generate a disproportionate economic benefit to the provider at the expense of the customer.
B.
The conduct of the provider is intentional and motivated by a desire to exploit the customer.
C.
The provider conceals the truth based upon what is actually known to the provider.
D.
All of the above.

d
A process that is in statistical control? ________ be producing services or products according to their design specifications.

A.
can not
B.
may not
C.
will not
D.
will always

b
Which of the Baldrige criteria is given the most weight in selecting? winners?

A.
results
B.
workforce focus
C.
leadership
D.
customer focus

a
The PDCA cycle illustrates

A.
the rise and fall of points in a process that is exhibiting only common cause variation.
B.
continuous improvement.
C.
the type of chart to make for each process control situation.
D.
the improvement in costs associated with implementation of ISO 9000.

b
Training workers to do their jobs properly and working with suppliers to improve the quality of material they supply to you are examples of

A.
prevention costs.
B.
appraisal costs.
C.
internal failure costs.
D.
external failure costs.

a
Which of the following statements about acceptance sampling is? true?

A.
Acceptance sampling limits the? seller’s risk of producing? poor-quality materials.
B.
Acceptance sampling eliminates the chance of accepting? bad-quality materials.
C.
Acceptance sampling is the application of statistical techniques to determine if a quantity of material from a supplier should be accepted or rejected.
D.
All of the above are true.

c
When plotting values on a control? chart, the first point that falls outside of the lower control limit? (LCL) means

A.
a run has been encountered.
B.
the process owner should take samples more frequently.
C.
the cause should be investigated.
D.
a type I error has occurred.

c
An expansionist capacity strategy is NOT indicated when

A.
capacity expansion is consistently ahead of demand.
B.
a preemptive marketing strategy is used.
C.
expansion is made in large increments.
D.
expansion will lead to economies of scale.

d
?Long-term capacity planning deals with which of the following? factors?

A.
Overtime budgets
B.
Investment in new facilities
C.
Workforce size
D.
Inventories

b
A measure of the reserve capacity a process has to handle in unexpected increases in demand is the

A.
capacity utilization rate.
B.
capacity cushion.
C.
capacity bottleneck.
D.
capacity constraint limit.

b
Using input measures of capacity is most appropriate in which of the following? situations?

A.
product variety and process divergence is low
B.
productivity rates are expected to change
C.
the product or service mix is changing
D.
significant learning effects are expected

a
?Waiting-line models often are used in capacity planning in order to

A.
understand why forecast accuracy declines as the forecasting horizon lengthens.
B.
analyze the payoff of a series of? events, such as? competitors’ actions, which requires a sequence of decisions regarding capacities.
C.
select an appropriate capacity cushion for a high? customer-contact process.
D.
evaluate different capacity expansion alternatives when demand is uncertain.

c
Waiting-line problems that cannot be studied with? waiting-line models must be analyzed with which analytical? tool?

A.
regression analysis
B.
decision trees
C.
simulation
D.
forecasting tools

c
Chang and Chang observe that the competition is increasing the size of its warehouses. They have decided to do the same. They are following? _______ strategy.

A.
an expansionist
B.
a? wait-and-see
C.
a Theory of Constraints
D.
a follow the leader

d
When evaluating alternative capacity? decisions, qualitative concerns exclude

A.
technology change.
B.
cash flow.
C.
uncertainties about demand.
D.
competitive reaction.

b
Input measures of capacity are preferred when there

A.
are flexible flow processes.
B.
are? high-volume processes.
C.
is low customization.
D.
are service processes.

a
?Anna’s landscaping business has a capacity? gap; which alternative can best be described as? “simply to do? nothing”?

A.
?Follow-the leader strategy
B.
Expansionist strategy
C.
?Base-case strategy
D.
?Wait-and-see strategy

c

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