Question 1

The company with the most efficient use of inventories is:
Consider the following information related to three manufacturing companies:

Accepted Answer

A)  Company A 
B)  Company B 
C)  Company C 
D)  More information is needed to determine the most efficient user of inventories 
A)  Company A 
B)  Company B 
C)  Company C 
D)  More information is needed to determine the most efficient user of inventories

Question 2

In computing average cycle time, companies should include the time of reworking defective units.

Accepted Answer

A) True 
 B)False

Question 3

The throughput time ratio measures the relative percentage of value-added time spent on processing a customer's order.

Accepted Answer

A) True 
 B)False

Question 4

A run chart is a chart that shows trends in variations in products or service attributes over time by reflecting measures of important quality features taken at defined points in time.

Accepted Answer

A) True 
 B)False

Question 5

A company that has implemented a just-in-time manufacturing system is utilizing the "push"
philosophy of manufacturing.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is a tangible feature of a product or service?

Accepted Answer

A)  Reputation 
B)  Taste 
C)  Style 
D)  Adherence to specifications 
A)  Reputation 
B)  Taste 
C)  Style 
D)  Adherence to specifications

Question 7

Manufacturers have found that the Just-in-Time (JIT) philosophy improves quality, lowers costs and improves profits. Those that have successfully implemented JIT have found that six components are necessary.
Required: Identify the six components necessary to the successful implementation of JIT and briefly comment on each.

Accepted Answer

The six components necessary to successf

Question 8

Holbrook Corporation is a manufacturer of electronic stereo equipment. The following represents financial information for the year 2008:
  
Required:
(a) Classify these items into costs of prevention (P), appraisal (A), internal failure (I) or external failure
(E) activities.
(b) Calculate the ratio of prevention, appraisal, internal failure and external failure costs to sales for the year 2008.
(c) Prepare a cost of quality report for the year 2008.

Accepted Answer

(a)
 @#IMG-DLM& 
(b)

Question 9

Total quality management (TQM) assumes that improvements in quality, as defined by customers, will always result in improved organizational performance.

Accepted Answer

A) True 
 B)False

Question 10

Control limits in a statistical control chart will always be symmetrical.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following statements describes a Pareto chart?

Accepted Answer

A)  Prioritizes the causes of problems or defects as bars of varying height, in order of frequency or size 
B)  Displays frequency distribution of an attribute's measures around an average attribute value 
C)  Reflects cause and effect and sequential linkages among process activities 
D)  Plots two measures that may be related to diagnose cause and effect outcomes and activities that may drive them 
A)  Prioritizes the causes of problems or defects as bars of varying height, in order of frequency or size 
B)  Displays frequency distribution of an attribute's measures around an average attribute value 
C)  Reflects cause and effect and sequential linkages among process activities 
D)  Plots two measures that may be related to diagnose cause and effect outcomes and activities that may drive them

Question 12

Consider the following annual information about three companies in the same manufacturing industry:
  
Required:
(a) Compute the following for each company:
(1) Sales per employee
(2) Inventory turnover
(3) Inventory as a percentage of sales
(b) Evaluate the relative performance of the three companies.
(c) Connolly is considering the implementation of a just-in-time (JIT) inventory system. What are the six factors necessary to successful implementation?

Accepted Answer

(a)
 @#IMG-DLM& (b) Ainsley and Berk are far more

Question 13

Which of the following activities would be found in a "pull"
Manufacturing environment?

Accepted Answer

A)  Production runs based on production schedules 
B)  Sales are forecast in advance of production to accommodate purchasing and production lead times 
C)  Manufacturer ships orders from finished goods inventory 
D)  Requirements for components trigger orders to suppliers, who ship parts immediately 
A)  Production runs based on production schedules 
B)  Sales are forecast in advance of production to accommodate purchasing and production lead times 
C)  Manufacturer ships orders from finished goods inventory 
D)  Requirements for components trigger orders to suppliers, who ship parts immediately

Question 14

Cycle time is the time from the receipt of an order of a unit of existing product or service to its packaging and shipment to the customer.

Accepted Answer

A) True 
 B)False

Question 15

The Malcolm Baldrige Quality Award is awarded to companies around the world that excel in quality improvement.

Accepted Answer

A) True 
 B)False

Question 16

Just-in-time (JIT) processes have short cycle times.

Accepted Answer

A) True 
 B)False

Question 17

Ruth Farrar has been hired as the new customer service manager at Dover Automotive. Ruth has recently instituted certain new policies and training procedures to improve customer telephone service. The following data have been gathered for the most recent 10-week period:
  
Required:
a) Prepare a run chart of the most recent 10-week period.
b) What does this chart indicate?

Accepted Answer

(a)
 
 @#IMG-DLM& (b) The chart shows a

Question 18

Companies using just-in-time inventory (JIT) systems generally experience lower inventory turnover than those not using JIT.

Accepted Answer

A) True 
 B)False

Question 19

Use the following to answer questions:
Le Francois Company developed the following information for its first quarter cost of quality report:
  
-The relevant percentage to be used to express internal failure activities at Le Francois is:

Accepted Answer

A)  27.9% 
B)  4.77% 
C)  4.2% 
D)  15.02% 
A)  27.9% 
B)  4.77% 
C)  4.2% 
D)  15.02%

Question 20

The diagnostic tool present above is known as a:
The Quality Control Department prepared the following diagnostic tool for the Production at McHugh Molding Company:

Accepted Answer

A)  Pareto chart 
B)  Scatter diagram 
C)  Run Chart 
D)  Control Chart 
A)  Pareto chart 
B)  Scatter diagram 
C)  Run Chart 
D)  Control Chart

The company with the most efficient use of inventories is: Consider the following information related to three manufacturing companies:

In computing average cycle time, companies should include the time of reworking defective units.

The throughput time ratio measures the relative percentage of value-added time spent on processing a customer's order.

A run chart is a chart that shows trends in variations in products or service attributes over time by reflecting measures of important quality features taken at defined points in time.

A company that has implemented a just-in-time manufacturing system is utilizing the "push" philosophy of manufacturing.

Which of the following is a tangible feature of a product or service?

Total quality management (TQM) assumes that improvements in quality, as defined by customers, will always result in improved organizational performance.

Control limits in a statistical control chart will always be symmetrical.

Which of the following statements describes a Pareto chart?

Which of the following activities would be found in a "pull" Manufacturing environment?

Cycle time is the time from the receipt of an order of a unit of existing product or service to its packaging and shipment to the customer.

The Malcolm Baldrige Quality Award is awarded to companies around the world that excel in quality improvement.

Just-in-time (JIT) processes have short cycle times.

Companies using just-in-time inventory (JIT) systems generally experience lower inventory turnover than those not using JIT.

Use the following to answer questions: Le Francois Company developed the following information for its first quarter cost of quality report: -The relevant percentage to be used to express internal failure activities at Le Francois is:

The diagnostic tool present above is known as a: The Quality Control Department prepared the following diagnostic tool for the Production at McHugh Molding Company:

Cost Management and Strategic Decision Making Evaluating Opportunities and Leading Change

Product Costing Systems: Concepts and Design Issues

Cost Accumulation for Job-Shop and Batch Production Operations

Activity-Based Costing Systems

Activity-Based Management

Managing Customer Profitability

Process-Costing Systems

Joint-Process Costing

Managing and Allocating Support-Service Costs

Cost Estimation

Financial and Cost-Volume-Profit Models

Cost Management and Decision Making

Strategic Issues in Making Long-Term Capital Investment Decisions

Budgeting and Financial Planning

Standard Costing, Variance Analysis, and Kaizen Costing

Flexible Budgets, Overhead Cost Management, and Activity-Based Budgeting

Organizational Design, Responsibility Accounting, and Evaluation of Divisional Performance

Transfer Pricing

Performance Measurement Systems Glossary Photo Credits

Filters

Exam 7: Managing Quality and Time to Create Value

The company with the most efficient use of inventories is: Consider the following information related to three manufacturing companies:

In computing average cycle time, companies should include the time of reworking defective units.

The throughput time ratio measures the relative percentage of value-added time spent on processing a customer's order.

A run chart is a chart that shows trends in variations in products or service attributes over time by reflecting measures of important quality features taken at defined points in time.

A company that has implemented a just-in-time manufacturing system is utilizing the "push" philosophy of manufacturing.

Which of the following is a tangible feature of a product or service?

Total quality management (TQM) assumes that improvements in quality, as defined by customers, will always result in improved organizational performance.

Control limits in a statistical control chart will always be symmetrical.

Which of the following statements describes a Pareto chart?

Which of the following activities would be found in a "pull" Manufacturing environment?

Cycle time is the time from the receipt of an order of a unit of existing product or service to its packaging and shipment to the customer.

The Malcolm Baldrige Quality Award is awarded to companies around the world that excel in quality improvement.

Just-in-time (JIT) processes have short cycle times.

Companies using just-in-time inventory (JIT) systems generally experience lower inventory turnover than those not using JIT.

Use the following to answer questions: Le Francois Company developed the following information for its first quarter cost of quality report: -The relevant percentage to be used to express internal failure activities at Le Francois is:

The diagnostic tool present above is known as a: The Quality Control Department prepared the following diagnostic tool for the Production at McHugh Molding Company:

Cost Management and Strategic Decision Making Evaluating Opportunities and Leading Change

Product Costing Systems: Concepts and Design Issues

Cost Accumulation for Job-Shop and Batch Production Operations

Activity-Based Costing Systems

Activity-Based Management

Managing Customer Profitability

Process-Costing Systems

Joint-Process Costing

Managing and Allocating Support-Service Costs

Cost Estimation

Financial and Cost-Volume-Profit Models

Cost Management and Decision Making

Strategic Issues in Making Long-Term Capital Investment Decisions

Budgeting and Financial Planning

Standard Costing, Variance Analysis, and Kaizen Costing

Flexible Budgets, Overhead Cost Management, and Activity-Based Budgeting

Organizational Design, Responsibility Accounting, and Evaluation of Divisional Performance

Transfer Pricing

Performance Measurement Systems Glossary Photo Credits

Filters