Question 1

Customer defection rates are:

Accepted Answer

A) not directly related to unit cost. 
B) an indication of a company's ability to satisfy its customers. 
C) irrelevant as they are unlikely to impact advertising and marketing costs. 
D) unlikely to affect sales volumes. 
E) not affected by cost of products.

Question 2

Identify the two dimensions of quality and describe how companies can achieve them.

Accepted Answer

The answer of Identify the two dimensions of quality and...

Question 3

The concept of economies of scale suggests that unit costs continue to fall indefmitely as output volume increases.

Accepted Answer

A) True 
 B)False

Question 4

Six Sigma encompasses the activities necessary to get inputs and components to a production facility, through the production process, and out through a distribution system to the end user.

Accepted Answer

A) True 
 B)False

Question 5

Poor positioning strategy arises when a company introduces a potentially attractive new product but sales fail to materialize because it is poorly positioned in the marketplace.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is the first step in the five-step chain reaction, as articulated by Deming, with regard to the philosophy underlying TQM?

Accepted Answer

A) hnprovement in productivity 
B) Increase in a company's profitability 
C) Higher market share due to superior quality of products 
D) Reduction of costs due to improved quality 
E) Creation of more jobs

Question 7

Self-managing teams:

Accepted Answer

A) are limited to only very large organizations. 
B) require members to coordinate their own activities and make decisions. 
C) typically increase the need for supervisors. 
D) create a tall organizational structure. 
E) show negligible increase in productivity and substantial decrease in product quality.

Question 8

Flexible production technologies allow a company to produce a wider variety of end products at a unit cost that at one time could be achieved only through the mass production of a standardized output

Accepted Answer

A) True 
 B)False

Question 9

You are a consultant offering advice to a large manufacturing firm about ways to increase its distinctive competency in innovation.What suggestions would you offer? Be specific and detailed in your answer.

Accepted Answer

The answer of You are a consultant offering advice to...

Question 10

Mass customization describes the ability of companies to use flexible manufacturing technology to reconcile the two goals of low cost and differentiation through product customization.

Accepted Answer

A) True 
 B)False

Question 11

Cream Cups bakes cakes in several varieties dedicated to special occasions.It also allows its customers to personalize the cakes according to their personal preferences.This is an example of:

Accepted Answer

A) learning effects. 
B) just-in-time inventory. 
C) customer defection. 
D) mass customization. 
E) diseconomies of scale.

Question 12

Explain the process by which increased production volume leads to lower costs.Give an example from a real or hypothetical firm.Can this process apply to a service organization as well as a manufacturing one? If so, give an
example.If not, explain why not.

Accepted Answer

The answer of Explain the process by which increased production...

Question 13

Production and materials-management functions need not be changed in response to unanticipated customer demands as they do not affect response time.

Accepted Answer

A) True 
 B)False

Question 14

Product attributes that collectively define product excellence include the form, features, performance, durability, and styling of the product.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following statements about customer focus is false?

Accepted Answer

A) It must start at the top of the organization. 
B) It is a central part of TQM. 
C) It can be facilitated by soliciting feedback from the customer. 
D) It requires that all employees see the customer as the focus of their activity. 
E) It can be achieved solely by demonstrating leadership .

Question 16

Diseconomies of scale are the unit cost increases associated with a large scale of output.

Accepted Answer

A) True 
 B)False

Question 17

The marketing strategy that a company adopts:

Accepted Answer

A) has little impact on the company's efficiency and cost structure. 
B) aims at attaining superior efficiency of the company's operations. 
C) should not take into account the impact the strategy has on the company's cost structure. 
D) aims at automating much of the work in the production process. 
E) refers to the position that the company takes with regard to a product's pricing and distribution.

Question 18

Learning effects tend to be more significant when a technologically complex task is performed only occasionally.

Accepted Answer

A) True 
 B)False

Question 19

One of the primary roles of research and development in achieving superior efficiency is:

Accepted Answer

A) facilitating cooperation among functions. 
B) limiting customer defection rates by building brand loyalty. 
C) designing products for ease of manufacture. 
D) instituting training programs to build skills. 
E) implementing pay for performance.

Question 20

Which of the following is not one of the principles commonly found in companies that have successfully embraced the TQM philosophy?

Accepted Answer

A) Building an organizational commitment to quality 
B) Finding ways to measure quality 
C) Giving more time for supervisors to work with employees 
D) Training new employees 
E) Defming work standards only in terms of numbers or quotas

Exam 4: Building Competitive Advantage Through Functional-Level Strategy

Customer defection rates are:

Identify the two dimensions of quality and describe how companies can achieve them.

The concept of economies of scale suggests that unit costs continue to fall indefmitely as output volume increases.

Six Sigma encompasses the activities necessary to get inputs and components to a production facility, through the production process, and out through a distribution system to the end user.

Poor positioning strategy arises when a company introduces a potentially attractive new product but sales fail to materialize because it is poorly positioned in the marketplace.

Which of the following is the first step in the five-step chain reaction, as articulated by Deming, with regard to the philosophy underlying TQM?

Self-managing teams:

Flexible production technologies allow a company to produce a wider variety of end products at a unit cost that at one time could be achieved only through the mass production of a standardized output

You are a consultant offering advice to a large manufacturing firm about ways to increase its distinctive competency in innovation.What suggestions would you offer? Be specific and detailed in your answer.

Mass customization describes the ability of companies to use flexible manufacturing technology to reconcile the two goals of low cost and differentiation through product customization.

Cream Cups bakes cakes in several varieties dedicated to special occasions.It also allows its customers to personalize the cakes according to their personal preferences.This is an example of:

Explain the process by which increased production volume leads to lower costs.Give an example from a real or hypothetical firm.Can this process apply to a service organization as well as a manufacturing one? If so, give an example.If not, explain why not.

Production and materials-management functions need not be changed in response to unanticipated customer demands as they do not affect response time.

Product attributes that collectively define product excellence include the form, features, performance, durability, and styling of the product.

Which of the following statements about customer focus is false?

Diseconomies of scale are the unit cost increases associated with a large scale of output.

The marketing strategy that a company adopts:

Learning effects tend to be more significant when a technologically complex task is performed only occasionally.

One of the primary roles of research and development in achieving superior efficiency is:

Which of the following is not one of the principles commonly found in companies that have successfully embraced the TQM philosophy?