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61 Cards in this Set

  • Front
  • Back

Pricing does not help what

quality

Three Guru's of quality

Edwards Deming, Joseph Juran

"Quality is free"

Phillip Crosby

Costs of Achieving Good Quality

prevention, appraisal, internal, and external failure

Which is the most costly out of the four?

External, goes up every time from prevention to external

Who is in charge of setting and demonstrating standards within a company

CEO and executives

Sigma defect numbers

higher the sigma #, lower the defects per million are



What can quality not be improved by?

flexible pricing

True false, Product liability transfers from the manufacturer to the retailer once the retailer accepts delivery of the product

False

Regarding the quality of design, production, and distribution of products, an ethical requirement for management is to

determine whether any of the organization's stakeholders are violated by poor quality products

Suppose that a firm has historically been achieving "three-sigma" quality. If the firm later changes its quality management practices such that begins to achieve "six-sigma" quality, which of the following phenomena will result?

The average number of defects will be cut by 99.87%.

Total quality management emphasizes

a commitment to quality that goes beyond internal company issues to suppliers and customers

"Kaizen" is a Japanese term meaning

continuous improvement

Which of the following statements regarding "Six Sigma" is true?

The term has two distinct meanings—one is statistical; the other is a comprehensive quality system.

Pareto charts are used to

organize errors, problems, or defects

A production manager at a pottery factory has noticed that about 70 percent of defects result from impurities in raw materials, 15 percent result from human error, 10 percent from machine malfunctions, and 5 percent from a variety of other causes. This manager is most likely using

Pareto Chart

"Poka-yoke" is the Japanese term for

fool proof

Which of the following is false regarding control charts?

Values above the upper control limits always imply that the product's quality is exceeding expectations.

An organization's process strategy

will have long-run impact on efficiency and flexibility of productionb. is the same as its transformation strategyc. must meet various constraints, including costd. is concerned with how resources are transformed into goods and servicese. All of the above are true.

Three types of processes are

. process focus, repetitive focus, and product focus

A job shop is an example of

intermittent process

A product-focused process is commonly used to produce

high-volume, low-variety products

Which one of the following products is most likely made in a job shop environment?

paper forms

An assembly line is an example of a

repetitive process

Which of the following transformations generally has the highest equipment utilization?

product focused proicess

Which of the following phrases best describes product focus?

high fixed costs, low variable costs

Which of the following phrases best describes process focus?

low volume, high variety

Process A has fixed costs of $1000 and variable costs of $5 per unit. Process B has fixed costs of $500 and variable costs of $15 per unit. The crossover point between process A and process B is

50 units

Which of the following characteristics best describes repetitive focus?

Its output is a standardized product produced from modules.

Process X has fixed costs of $10,000 and variable costs of $2.40 per unit. Process Y has fixed costs of $9,000 and variable costs of $2.25 per unit. Which of the following statements is true?

Process Y is cheaper than process X at all volumes; there is no crossover point.

Product Focused processesa. allow more customization, but are not very efficient

are processes that are specialized for relatively few products or customer groups

Strategies for improving productivity in services are

separation, self-service, automation, and scheduling

Which of the following is true regarding opportunities to improve service processes?

None are true

In mass service and professional service, the operations manager should focus on

human resources

Which of the following statements regarding ethical and environmentally friendly processes is true?

Operations managers can be environmentally sensitive and still follow a low cost strategy.

Industrial location analysis typically attempts to

reduce costs

A location decision for an appliance manufacturer would tend to have a(n)

cost focus

location planning, environmental regulations, cost and availability of utilities, and taxes are

regional/community factors

Which of the following is usually not one of the top considerations in choosing a country for a facility location?

zoning

Which of these factors would be considered when making a location decision at the region/community level?

proximity to raw materials

Tangible costs include which of the following?

taxes

Intangible costs include which of the following?

quality of prospective employeesb. quality of educationc. availability of public transportation

A location decision for an appliance manufacturer would tend to have a(n)

cost focus

An approach to location analysis that includes both qualitative and quantitative considerations is

factor-rating

A firm is considering two location alternatives. At location A, fixed costs would be $4,000,000 per year, and variable costs 0.30 per unit. At alternative B, fixed costs would be $3,600,000 per year, with variable costs of $0.35 per unit. If demand is expected to be 10 million units, which plant offers the lowest total cost?

Plant B, because it is cheaper than Plant A for all volumes over 8,000,000 units

A jewelry store is more likely than a jewelry manufacturer to consider __________ in making a location decision.

parking and access

Which of the following is most likely to affect the location strategy of a manufacturing firm?

utility costs

The objective of layout strategy is to develop an effective and efficient layout that will meet the firm's competitive requirements.

true

. A process-oriented layout is the traditional way to support a product differentiation strategy.

true

14. Process-oriented layouts typically have low levels of work-in-process inventory.

false

Product-oriented layouts tend to have high levels of work-in-process inventories

false

The layout strategy that deals with low-volume, high-variety production is

none of the above

The fixed-position layout would be most appropriate in which of the following settings?

cruise ship assembly line

The type of layout which features departments or other functional groupings in which similar activities are performed is

process oriented

The major problem addressed by the process-oriented layout strategy is

minimizing difficulties caused by material flow varying with each product

A big advantage of a process-oriented layout is

. its flexibility in equipment and labor assignments

Which of the following does not support the retail layout objective of maximizing customer exposure to products?

maximum exposure to expensive items

Ambient conditions, spatial layout and functionality, and signs, symbols, and artifacts are all

servicescapes

The major problem addressed by the warehouse layout strategy is

addressing trade-offs between space and material handling

A disadvantage of product-oriented layout is that

All of the above