Question 1

Which of the following is a similarity between total quality management and six sigma?

Accepted Answer

A)  They have a department­specific focus on quality. 
B)  They do not rely on training but instead support on­the­job experience. 
C)  They rely on teams of workers to carry out specific projects to improve quality. 
D)  They have simple methods of implementation and can be easily put into practice.

Question 2

A servicescape's ambience factor refers to the atmosphere a service provider creates for its customers.

Accepted Answer

A) True 
 B)False

Question 3

Items in inventory don't generate revenue until they're sold.

Accepted Answer

A) True 
 B)False

Question 4

When determining the type of process that works the best, and how these processes should be organized, one of the key considerations is the type of material used in that production.

Accepted Answer

A) True 
 B)False

Question 5

The Handy Cotton Candy store has a hard time estimating how much cotton candy to make each day. Lately, people have been buying a lot of cotton candy, and the store has run out of stock. Gerald, the owner, must consider making larger quantities of the product and holding the excess inventory to meet the surges in demand.

Accepted Answer

A) True 
 B)False

Question 6

Operations managers at Dragon Industries Inc. agree that the company is trying to handle too many supply chain functions on its own resulting in an inefficient use of resources. This suggests that the company may soon adopt the strategy of:

Accepted Answer

A)  acquisition. 
B)  outsourcing processes. 
C)  vertical integration. 
D)  cannibalization.

Question 7

CPM focuses on controlling inventory levels during the production process to ensure that enough parts and materials are available to support production.

Accepted Answer

A) True 
 B)False

Question 8

To participate in the Baldrige National Quality Program, firms are required to incorporate the Six Sigma quality program

Accepted Answer

A) True 
 B)False

Question 9

The use of robots in the manufacturing process has been slow since robots are inflexible and cannot be reprogrammed.

Accepted Answer

A) True 
 B)False

Question 10

From an operations management perspective, explain the differences between goods and services.

Accepted Answer

The answer of From an operations management perspective, explain the...

Question 11

In the long run, a firm must choose to either be effective or efficient, because it is impossible to achieve both objectives consistently within the same organization .

Accepted Answer

A) True 
 B)False

Question 12

Anne Miles owns a small business that produces gourmet candies that are popular with local households during the holiday party season­from Halloween through New Years. Although it is only mid­September, Anne's storage pantries are beginning to fill with boxes of her special candies. Given the nature of her business, the most likely explanation for Anne's large inventory of sweets is that she:

Accepted Answer

A)  expects an unexpected surge in demand for her candies in the month of September and she doesn't want to lose sales by running out of stock. 
B)  made a poor sales forecast and is now stuck with excess inventory. 
C)  builds up inventory during slower periods so that she'll have plenty of candy to sell during the peak season without having to invest in additional production capacity. 
D)  spent a lot of money on her storage facilities and wants to make sure they are fully utilized.

Question 13

Vertical integration means outsourcing all activities in the value chain with the exception of the very basic things a firm wants to do itself.

Accepted Answer

A) True 
 B)False

Question 14

A present­day example of the poka­yoke procedure would be:

Accepted Answer

A)  producing ground coffee with computer­ aided manufacturing techniques. 
B)  color­coding wires according to the color of their corresponding plug. 
C)  automatic­filling water purifiers that pass a visual inspection test. 
D)  replacing humans with robots that process ten times faster.

Question 15

_____ are experienced and not consumed.

Accepted Answer

A)  Tangible goods 
B)  Services 
C)  Durable goods 
D)  Perishables

Question 16

The goal of a(n)_____ approach is to integrate the information flows of all aspects of a business's operations.

Accepted Answer

A)  enterprise resource planning 
B)  materials requirement planning 
C)  critical path method 
D)  computer­aided manufacturing

Question 17

A vehicle wheel manufacturing company headquartered in Chicago is opening a new branch. If it decides to locate the branch overseas, _____ is most likely to be the location factor that influenced this decision.

Accepted Answer

A)  transportation distance 
B)  low­wage labor 
C)  climatic conditions 
D)  superior technology

Question 18

"Poka­yoke" is a Japanese term that refers to simple procedures built into the production process that prevent workers from making mistakes or allow them to catch and correct mistakes quickly if they do occur.

Accepted Answer

A) True 
 B)False

Question 19

Vertical integration occurs when a firm attempts to gain more control over its value chain by either developing the ability to perform processes previously performed by other organizations in the chain or by acquiring those organizations.

Accepted Answer

A) True 
 B)False

Question 20

Fifty years ago, a common production strategy was to produce small quantities of customized goods that met the needs of specific customers.

Accepted Answer

A) True 
 B)False

Exam 17: Om: Putting It All Together Endnotes

Which of the following is a similarity between total quality management and six sigma?

A servicescape's ambience factor refers to the atmosphere a service provider creates for its customers.

Items in inventory don't generate revenue until they're sold.

When determining the type of process that works the best, and how these processes should be organized, one of the key considerations is the type of material used in that production.

Operations managers at Dragon Industries Inc. agree that the company is trying to handle too many supply chain functions on its own resulting in an inefficient use of resources. This suggests that the company may soon adopt the strategy of:

CPM focuses on controlling inventory levels during the production process to ensure that enough parts and materials are available to support production.

To participate in the Baldrige National Quality Program, firms are required to incorporate the Six Sigma quality program

The use of robots in the manufacturing process has been slow since robots are inflexible and cannot be reprogrammed.

From an operations management perspective, explain the differences between goods and services.

In the long run, a firm must choose to either be effective or efficient, because it is impossible to achieve both objectives consistently within the same organization .

Vertical integration means outsourcing all activities in the value chain with the exception of the very basic things a firm wants to do itself.

A presentday example of the pokayoke procedure would be:

_____ are experienced and not consumed.

The goal of a(n) _____ approach is to integrate the information flows of all aspects of a business's operations.

A vehicle wheel manufacturing company headquartered in Chicago is opening a new branch. If it decides to locate the branch overseas, _____ is most likely to be the location factor that influenced this decision.

"Pokayoke" is a Japanese term that refers to simple procedures built into the production process that prevent workers from making mistakes or allow them to catch and correct mistakes quickly if they do occur.

Vertical integration occurs when a firm attempts to gain more control over its value chain by either developing the ability to perform processes previously performed by other organizations in the chain or by acquiring those organizations.

Fifty years ago, a common production strategy was to produce small quantities of customized goods that met the needs of specific customers.

Exam 17: Om: Putting It All Together Endnotes

Which of the following is a similarity between total quality management and six sigma?

A servicescape's ambience factor refers to the atmosphere a service provider creates for its customers.

Items in inventory don't generate revenue until they're sold.

When determining the type of process that works the best, and how these processes should be organized, one of the key considerations is the type of material used in that production.

Operations managers at Dragon Industries Inc. agree that the company is trying to handle too many supply chain functions on its own resulting in an inefficient use of resources. This suggests that the company may soon adopt the strategy of:

CPM focuses on controlling inventory levels during the production process to ensure that enough parts and materials are available to support production.

To participate in the Baldrige National Quality Program, firms are required to incorporate the Six Sigma quality program

The use of robots in the manufacturing process has been slow since robots are inflexible and cannot be reprogrammed.

From an operations management perspective, explain the differences between goods and services.

In the long run, a firm must choose to either be effective or efficient, because it is impossible to achieve both objectives consistently within the same organization .

Vertical integration means outsourcing all activities in the value chain with the exception of the very basic things a firm wants to do itself.

A present­day example of the poka­yoke procedure would be:

_____ are experienced and not consumed.

The goal of a(n) _____ approach is to integrate the information flows of all aspects of a business's operations.

A vehicle wheel manufacturing company headquartered in Chicago is opening a new branch. If it decides to locate the branch overseas, _____ is most likely to be the location factor that influenced this decision.

"Poka­yoke" is a Japanese term that refers to simple procedures built into the production process that prevent workers from making mistakes or allow them to catch and correct mistakes quickly if they do occur.

Vertical integration occurs when a firm attempts to gain more control over its value chain by either developing the ability to perform processes previously performed by other organizations in the chain or by acquiring those organizations.

Fifty years ago, a common production strategy was to produce small quantities of customized goods that met the needs of specific customers.

A presentday example of the pokayoke procedure would be:

"Pokayoke" is a Japanese term that refers to simple procedures built into the production process that prevent workers from making mistakes or allow them to catch and correct mistakes quickly if they do occur.