Question 1

Inventory carrying costs include receiving, handling, storage and obsolescence.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following statements describes a scatter diagram?

Accepted Answer

A)  Shows trends in variation in product or service attributes over time by reflecting measures of 
B)  important quality features taken at defined points in time 
C)  Displays frequency distribution of an attribute's measures around an average attribute value 
D)  Describes variation in product or service attributes over time by measuring important quality features . and comparing to maximum and minimum desired levels 
E)  Plots two measures that may be related to diagnose cause and effect outcomes and activities that may drive them 
A)  Shows trends in variation in product or service attributes over time by reflecting measures of 
B)  important quality features taken at defined points in time 
C)  Displays frequency distribution of an attribute's measures around an average attribute value 
D)  Describes variation in product or service attributes over time by measuring important quality features . and comparing to maximum and minimum desired levels 
E)  Plots two measures that may be related to diagnose cause and effect outcomes and activities that may drive them

Question 3

Cause-and effect-analysis involves formulating diagnostic signals that identify potential causes of product or service defects.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following will not reduce customer response time?

Accepted Answer

A)  Electronic ordering 
B)  Eliminating non-value-added activities 
C)  Increasing production cycle time 
D)  Eliminating bottlenecks 
A)  Electronic ordering 
B)  Eliminating non-value-added activities 
C)  Increasing production cycle time 
D)  Eliminating bottlenecks

Question 5

Which of the following is compatible with Just-in-Time (JIT) manufacturing techniques?

Accepted Answer

A)  Non-value-added activities 
B)  Producing for inventory 
C)  Sales order triggers a production order 
D)  Sales forecast well in advance of production 
A)  Non-value-added activities 
B)  Producing for inventory 
C)  Sales order triggers a production order 
D)  Sales forecast well in advance of production

Question 6

Cook Corporation is trying to identify potential causes of product or service defects. Which of the following will be most useful to Cook:

Accepted Answer

A)  Flowchart 
B)  Pareto chart 
C)  Cause-and-effect diagram 
D)  Run chart 
A)  Flowchart 
B)  Pareto chart 
C)  Cause-and-effect diagram 
D)  Run chart

Question 7

Errors due to inadequate or outdated work instructions can be best diagnosed using run and control charts.

Accepted Answer

A) True 
 B)False

Question 8

Production cycle time is the elapsed time between starting and finishing a process, including any time to correct mistakes.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is not one of the three dimensions of time that successful organizations must focus on?

Accepted Answer

A)  The length of time of the average workweek 
B)  Customer response time 
C)  Cycle time 
D)  Service development time 
A)  The length of time of the average workweek 
B)  Customer response time 
C)  Cycle time 
D)  Service development time

Question 10

Use the following to answer questions:
Listed below are selected operating costs for Miskelly Products last month:
  
-Miskelly's total external failure costs for the month were

Accepted Answer

A)  $2,402 
B)  $ 3,914 
C)  $ 952 
D)  $2,962 
A)  $2,402 
B)  $ 3,914 
C)  $ 952 
D)  $2,962

Question 11

Variations in customer service leading to poor-quality service can be most effectively diagnosed using a histogram.

Accepted Answer

A) True 
 B)False

Question 12

The Malcolm Baldrige Award:

Accepted Answer

A)  Is awarded to companies around the world that excel in quality improvement 
B)  Is awarded to the company that does the best job of adhering to ISO 9000 standards 
C)  Recognizes U.S. firms with outstanding records of quality improvements and quality management 
D)  Is required to received ISO 9000 certification 
A)  Is awarded to companies around the world that excel in quality improvement 
B)  Is awarded to the company that does the best job of adhering to ISO 9000 standards 
C)  Recognizes U.S. firms with outstanding records of quality improvements and quality management 
D)  Is required to received ISO 9000 certification

Question 13

Use the following to answer questions:
Listed below are selected operating costs for Miskelly Products last month:
  
-Miskelly's total appraisal costs for the month were:

Accepted Answer

A)  $6,980 
B)  $1,572 
C)  $2,572 
D)  $5,408 
A)  $6,980 
B)  $1,572 
C)  $2,572 
D)  $5,408

Question 14

Wasted time would generally be categorized as an external failure activity.

Accepted Answer

A) True 
 B)False

Question 15

Practical capacity is always more than theoretical capacity.

Accepted Answer

A) True 
 B)False

Question 16

Dunn Corporation finds that 60% of the time spent in its manufacturing process is on non-value added activities such as moving parts and inspection. Dunn needs to improve:

Accepted Answer

A)  Its throughput 
B)  Its customer-response time 
C)  Its throughput time ratio 
D)  Its average cycle time 
A)  Its throughput 
B)  Its customer-response time 
C)  Its throughput time ratio 
D)  Its average cycle time

Question 17

A scatter diagram is a plot of two measures that may be related.

Accepted Answer

A) True 
 B)False

Question 18

(Adapted from "Becoming a Lean Enterprise, A Tale of Two Firms,"
Strategic Finance, November, 2002)
Cessna, the world's largest manufacturer of single-engine aircraft and business jets, recently implemented a program to improve its production system with the goal of eliminating wasted activities throughout the company. The company's goal was to improve all aspects of product delivery from design, supply channels, production, and distribution. In a structured, 10-month process, the company took the following actions:
(1) Conducted workshops and on-site events to train employees in the new system.
(2) Implemented techniques to reduce the setup time required changing over machines from one product to the next.
(3) Implemented visual work instructions and quality control checks in the manufacturing process.
(4) Made tool, fixture and engineering design changes to prevent quality defects from occurring.
(5) Redesigned the groupings of machines to shorten the flow time required to finish a product.
(6) Trained operators to perform multiple jobs to distribute work according to demand.
(7) Implemented quality methods assuring that defects were not passed from one workstation to another.
(8) Empowered employees with decision-making powers regarding production processes by developing standard work and other metrics in the production process.
(9) Implemented a "pull"
system of delivering components to the manufacturing floor.
(10) Implemented systems to improve order fulfillment and meet customers' demands.
Required:
(a) For each of the 10 numbered items, indicate whether the action taken by Cessna was a Prevention activity, Appraisal activity, Internal failure activity, or External failure activity.
(b) What is meant by a "pull"
system of manufacturing? Briefly describe the differences between a pull system and a traditional manufacturing system. What are the major benefits of a pull system?

Accepted Answer

(a)
 @#IMG-DLM& (b) In a pull system, the manufact

Question 19

A flowchart is a plot of two measures that may be related that helps to diagnose cause-and-effect between outcomes and activities that may drive them.

Accepted Answer

A) True 
 B)False

Question 20

The throughput time ratio is the ratio of time spent adding customer value to products divided by total cycle time.

Accepted Answer

A) True 
 B)False

Inventory carrying costs include receiving, handling, storage and obsolescence.

Which of the following statements describes a scatter diagram?

Cause-and effect-analysis involves formulating diagnostic signals that identify potential causes of product or service defects.

Which of the following will not reduce customer response time?

Which of the following is compatible with Just-in-Time (JIT) manufacturing techniques?

Cook Corporation is trying to identify potential causes of product or service defects. Which of the following will be most useful to Cook:

Errors due to inadequate or outdated work instructions can be best diagnosed using run and control charts.

Production cycle time is the elapsed time between starting and finishing a process, including any time to correct mistakes.

Which of the following is not one of the three dimensions of time that successful organizations must focus on?

Use the following to answer questions: Listed below are selected operating costs for Miskelly Products last month: -Miskelly's total external failure costs for the month were

Variations in customer service leading to poor-quality service can be most effectively diagnosed using a histogram.

The Malcolm Baldrige Award:

Use the following to answer questions: Listed below are selected operating costs for Miskelly Products last month: -Miskelly's total appraisal costs for the month were:

Wasted time would generally be categorized as an external failure activity.

Practical capacity is always more than theoretical capacity.

Dunn Corporation finds that 60% of the time spent in its manufacturing process is on non-value added activities such as moving parts and inspection. Dunn needs to improve:

A scatter diagram is a plot of two measures that may be related.

A flowchart is a plot of two measures that may be related that helps to diagnose cause-and-effect between outcomes and activities that may drive them.

The throughput time ratio is the ratio of time spent adding customer value to products divided by total cycle time.

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

Inventory carrying costs include receiving, handling, storage and obsolescence.

Which of the following statements describes a scatter diagram?

Cause-and effect-analysis involves formulating diagnostic signals that identify potential causes of product or service defects.

Which of the following will not reduce customer response time?

Which of the following is compatible with Just-in-Time (JIT) manufacturing techniques?

Cook Corporation is trying to identify potential causes of product or service defects. Which of the following will be most useful to Cook:

Errors due to inadequate or outdated work instructions can be best diagnosed using run and control charts.

Production cycle time is the elapsed time between starting and finishing a process, including any time to correct mistakes.

Which of the following is not one of the three dimensions of time that successful organizations must focus on?

Use the following to answer questions: Listed below are selected operating costs for Miskelly Products last month: -Miskelly's total external failure costs for the month were

Variations in customer service leading to poor-quality service can be most effectively diagnosed using a histogram.

The Malcolm Baldrige Award:

Use the following to answer questions: Listed below are selected operating costs for Miskelly Products last month: -Miskelly's total appraisal costs for the month were:

Wasted time would generally be categorized as an external failure activity.

Practical capacity is always more than theoretical capacity.

Dunn Corporation finds that 60% of the time spent in its manufacturing process is on non-value added activities such as moving parts and inspection. Dunn needs to improve:

A scatter diagram is a plot of two measures that may be related.

A flowchart is a plot of two measures that may be related that helps to diagnose cause-and-effect between outcomes and activities that may drive them.

The throughput time ratio is the ratio of time spent adding customer value to products divided by total cycle time.

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