C215 Flashcards
Which definition used for quality evaluates how well a product performs its intended function?
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Fitness for use
Support services
Value for price paid
Psychological criteria
Fitness for use
Which total quality management (TQM) process was developed to stress management’s responsibility for quality?
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Statistical quality control charts
Fitness quality for use
14 points for quality improvement
Product design quality
14 points for quality improvement
Which total quality management (TQM) process consists of several published standards and guidelines?
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ISO 1400
ISO 9002
ISO 9001
ISO 9000
ISO 9000
A company manufactures shoes using a quality management system. The company needs to put a process in place to measure any defects. The company would like to measure the number of defects and observe the number of occurrences to isolate the particular defect.
Which quality tool should the company use to focus on correcting this particular issue?
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Scatter diagram
Control chart
Flowchart
Checklist
Checklist
Which quality control tool should be used to monitor the current status or end result of a process?
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Checklist
Flowchart
Control chart
Scatter diagram
Control chart
Which group of keywords or phrases describes the critical role that marketing plays in the total quality management (TQM) process?
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Baseline for managing quality process; investment in preventative costs; budgeting
Enhance competition; understand consumer preferences; maintain communication with operations
Review and recommend product changes; satisfy customer needs; open communication
Reward employees; motivate staff performance; manage operations planned changes
Enhance competition; understand consumer preferences; maintain communication with operations
What is the common theme in total quality management (TQM) across all functions in an organization?
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To satisfy customer needs
To enhance management software
To reward people rather than teams
To ensure profit from product changes
To satisfy customer needs
Which concept of variation measures the central tendency of a set of data?
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Mean
Range
Standard deviation
Variable
Mean
What do assignable causes of variation indicate?
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A computer virus was found in the system.
Out-of-control signals were found in the process.
Human resources found an operator was at fault.
Equipment was found to be out of control.
Out-of-control signals were found in the process.
Which continuous improvement method does C pk measure?
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The most common measurement process
How close one is to a target and how consistent one is with the average performance
What a process is capable of and how long it will take to conclude
Parts per million on the capability index
How close one is to a target and how consistent one is with the average performance
What are two important aspects of Six Sigma?
Choose 2 answers
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Technical tools
People involvement
Job design
Facility location
Technical tools
People involvement
Which strategy is used by some emergency rooms to overcome customer frustrations about long waiting times?
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Screen patients and schedule follow-up appointments for those who have the most serious injuries
Screen patients and fast-track those with minor ailments
Screen patients and send the last 25 to another facility
See each patient in the order in which they arrived
Screen patients and fast-track those with minor ailments
Which two factors affect a service location decision?
Choose 2 answers
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Closeness to manufacturing facilities
Proximity to customers
Warehouse storage
Quality-of-life issues
Proximity to customers
Quality-of-life issues
Which location would be ideal for a hospital?
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Next to restaurants
Next to a public school
Next to other medical facilities
Next to a baseball stadium
Next to other medical facilities
What helps an organization identify and plan the actions necessary to meet current and future customer demands?
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Production capacity
Software development
Capacity planning
Current economic conditions
Capacity planning
Which capacity planning measurement tells how much capacity a company is using?
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Design capacity
Effective capacity
Capacity focus
Capacity utilization
Capacity utilization
Which two statements are true about effective capacity?
Choose 2 answers
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An effective capacity is lower than design capacity.
An effective capacity is a permanent measure used to achieve design capacity.
An effective capacity is a temporary measure used to achieve design capacity.
An effective capacity maintains a minimum output rate under normal conditions.
An effective capacity is lower than design capacity.
An effective capacity is a permanent measure used to achieve design capacity.
When is capacity measurement at the best operating level?
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At the minimum point of the cost curve
At maximum capacity
When the average unit cost is minimized
When the total cost is minimized
When the average unit cost is minimized
Which two capacity measurement concepts should a firm consider when conducting a location analysis?
Choose 2 answers
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Throughput time
Proximity to sources of supply
Building employee relations
Site considerations
Proximity to sources of supply
Site considerations
What is a major factor in the decision to locate a business near its primary market territory?
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Proximity to customers
Proximity to a community center
Proximity to parks
Proximity to labor
Proximity to customers
A manufacturing company decides to open a new distribution center location in order to minimize distribution costs to multiple warehouses or stores.
Which tool should the manufacturing company use to determine where the new distribution center should be located?
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The load-distance model
The transportation method
The center-of-gravity approach
The break-even analysis
The center-of-gravity approach
Which two types of operations include repetitive processes?
Choose 2 answers
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Project process
Line process
Batch process
Continuous process
Line process
Continuous process
A comprehensive automobile collision shop offers body and engine repair as well as custom vehicle paint options.
Which two operational processes would suit this shop?
Choose 2 answers
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Project process
Line process
Batch process
Continuous process
Project process
Batch process
What is a bottleneck in a flowchart?
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Two stages operating independently
The longest task in the process
The point where production is evened out
Multiple storage areas
The longest task in the process
Which formula would compute process velocity?
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Time a resource is used/time a resource is available
Actual output/standard output
Throughput time/value-added time
Output/input
Throughput time/value-added time
Which formula would indicate that a fast-food restaurant was performing at, above, or below its benchmark?
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Time a resource is used/time a resource is available
Actual output/standard output
Throughput time/value-added time
Output/input
Actual output/standard output
In which facility layout would one expect to see items arranged by type?
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Hybrid
Fixed
Process
Product
Process
A construction company produces furnished pre-fabricated manufactured homes. The production manager has discovered the following challenges within one of the facilities:
- Production qualities are low and only a small number of homes are built efficiently.
- The facility space allows for low handling of materials.
- There is limited space available for employees to operate.
Which hybrid layout should be used to address the company’s needs?
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Group technology
Process performance metrics
Manufacturing technology
Statistical reduction control
Group technology
Which instrument would use an allocation process for space requirements in an industry scenario?
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Block plan
From-to matrix
Relationship chart (REL)
Rectilinear distance
Block plan
What would be an organization’s next step after it has revised or implemented new operations?
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Follow up to make sure the new operation resolves quality problems
Reverse the order of the operation to determine that all workers know how to complete the operation
Revise the order of the operation before putting it into service to ensure the order of the operation
Conduct a final analysis of the existing operation one more time
Follow up to make sure the new operation resolves quality problems
Why is it beneficial for an organization to designate employees to communicate alternative ways to complete a job in a methods analysis?
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They may have suggestions for improving the operation.
They know how an operation has always been done with no need to change.
They are experts in their field.
They may resist training on new machines.
They may have suggestions for improving the operation.
Which factor determines how long it takes a qualified operator to perform a duty of the job requirements under the assumption that the operator is working at a sustainable pace with the proper tools for the process?
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Performance time
Observed time
Normal time
Standard time
Standard time
Which design work system minimizes repetitiveness in tasks by assigning employees the role of planning and scheduling?
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Job entitlement
Job enrichment
Job rotation
Job rating
Job enrichment
Which work system acknowledges the benefits of employee proficiency?
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Employee longevity
Enhanced employee relations
Labor specialization
Lower operating cost
Labor specialization
Which term means to schedule a job that starts immediately, regardless of the due date?
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Forward scheduling
Finite loading
Infinite loading
Backward scheduling
Forward scheduling
What is the third basic element in the just-in-time (JIT) system if the first element is total quality management (TQM) and the second is JIT manufacturing?
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Simply organized inventory
Quality circles
Respect for people
Capacity utilization
Respect for people
How do just-in-time (JIT) and lean systems add value?
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By improving lighting
By increasing simplicity
By reducing waste
By enhancing responsibility
By reducing waste
Which concept takes a total system approach to creating an efficient operation and combines concepts such as just-in-time (JIT), total quality management (TQM), and continuous improvement?
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Lean systems
Customer relationship management (CRM)
Enterprise resource planning (ERP)
ISO 9001 standards
Lean systems
Why is kan
Why is kanban significant to the “pull” system?
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It requires that all work items are sized the same.
It specifies the exact quantity of a product that needs to be produced.
It is a process that is only for support or maintenance.
It is a process that highlights the highest-performing organization.
ban significant to the “pull” system?
It specifies the exact quantity of a product that needs to be produced.
What are two product system differences between the push and pull processes?
Choose 2 answers
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Push moves the product forward in anticipation for demand.
Push lowers cost due to overproduction.
Pull develops additional products.
Pull eliminates excessive inventory.
Push enhances employee relations.
Pull initiates quality control.
Push moves the product forward in anticipation for demand.
Pull eliminates excessive inventory.
Which function does marketing play in a just-in-time (JIT) organization?
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JIT marketing focuses on producer-driven quality.
JIT marketing simplifies inventory flow.
JIT marketing focuses on customer-driven quality.
JIT marketing synchronizes product demand with assembly.
JIT marketing focuses on customer-driven quality.
How does a just-in-time (JIT) system influence all functional areas within a company?
Choose 2 answers
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Companies are able to reduce waste.
Companies develop new ways to generate revenue.
Companies enhance workers’ promotion opportunities.
Companies’ workers demonstrate intrinsic values.
Companies can participate when it is convenient.
Companies are able to reduce waste.
Companies develop new ways to generate revenue.
What are two ways management can assist employees’ focus in a just-in-time (JIT) processing environment?
Choose 2 answers
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Ensure that workers receive multifunctional training
Separate the cultures in the organization so there will be no conflicts
Require workers to use free time to do quality control charting
Develop an incentive system to reward workers for their efforts
Ensure that workers receive multifunctional training
Develop an incentive system to reward workers for their efforts
Which tier-level supplier directly supplies materials or services to a processing and packaging plant?
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Tier one suppliers
Tier two suppliers
Tier three suppliers
Tier four suppliers
Tier five suppliers
Tier one suppliers
Which role do third-party logistics providers play in the supply chain?
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Internal distributors
External distributors
Tier two distributors
Tier three distributors
External distributors
A company manufactures and distributes its own products.
When should the company consider outsourcing its distribution?
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When the company can no longer accurately forecast its transportation costs
When the company’s distribution costs are the lowest in the industry
When the company determines that distribution is no longer a core function
When new federal regulations give the company a competitive advantage
When the company determines that distribution is no longer a core function
What is the measure of how much supply chain is owned or operated by the manufacturer?
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Vertical integration
Horizontal integration
Insource integration
Outsource integration
Vertical integration
Which two areas should managers consider in order to adapt to the business dynamics affecting their company?
Choose 2 answers
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Their control over internal operations
Their influence and leverage over supplies
Their influence over future legislation and regulations
Their advertising costs
Their control over internal operations
Their influence and leverage over supplies
What are two strategic objectives for every member of the supply chain?
Choose 2 answers
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Increasing cost effectiveness
Becoming more efficient
Increasing end-customer demand
Finding the best distribution location
Reducing production and delivery times
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ANSWER
Increasing cost effectiveness
Becoming more efficient
How does the status of overall customer satisfaction support supply chain objectives?
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It measures space requirements.
It measures efficiency.
It measures compliance.
It measures capacity utilization.
It measures efficiency.
What is the name of the model that has been created to examine the four different supply chain perspectives of reliability, flexibility, expenses, and assets/utilization?
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SCOR (Supply Chain Operations Reference)
RFEAU (Reliability Flexibility Expenses and Asset Utilization)
SCAM (Supply Chain Accreditation Model)
SCM (Supply Chain Metrics)
SCOR (Supply Chain Operations Reference)
The annual cost of goods sold for a company is $8,400,000 and the average inventory is $1,200,000.
What is the number of weeks of supply?
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5
6
7
8
9
7
A manufacturing firm uses warehouses and shippers in their supply chain.
At which stage of the firm’s inventory management system would the statement “percentage of line items shipped on schedule” be used?
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Work-in-progress
Raw materials
Finished goods
Sold goods
Finished goods
How does inventory management differ for manufacturing organizations compared to service organizations?
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Service organizations must maintain work in progress types of inventory.
Manufacturing organizations must maintain tangible inventory.
Manufacturing organizations must keep large amounts of product on hand at all times, regardless of demand.
Service organizations are concerned with managing idle time due to material and component shortages.
Manufacturing organizations must maintain tangible inventory.
What is one advantage of a periodic review system?
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All items are reviewed during the same time interval.
Items are handled individually.
Less inventory is needed to protect against stockouts.
Inventory balances are updated after every transaction.
All items are reviewed during the same time interval.
A company’s monthly widgets demand has been consistent for the past few years but now a variable shift in demand is forecasted.
The demands are predicted to be:
- January 20,000 units
- February 17,000 units
- March 19,000 units
- April 21,000 units
- May 22,000 units
- June 24,000 units
Beginning inventory of 10,000 units should be maintained.
What is the average monthly net widget production demand for the company?
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ANSWER
20,000
20,500
21,667
22,167
20,500
A company suddenly finds demand has increased to 140% of its previous capacity. It has been able to hire only a fraction of the employees previously laid off, and a warehouse fire destroyed 80% of its inventory.
Which two options does the company have to rapidly meet the new demand?
Choose 2 answers
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ANSWER
Hire temporary workers
Build new production facilities
Subcontract a portion of production capacity
Hire and train new full-time employees
Hire temporary workers
Subcontract a portion of production capacity
What are two reasons a company might be hesitant to provide overtime as a capacity-based option?
Choose 2 answers
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ANSWERCORRECT
ANSWER
Overtime results in a buildup of excess inventory.
Overtime is not a long-term solution.
Overtime is typically a 50% wage premium.
Overtime decreases the labor cost per unit.
Overtime is not a long-term solution.
Overtime is typically a 50% wage premium.
Why might a company avoid using demand-based options such as inventory and backorders over a long period of time?
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It is more risky.
It is time consuming.
It negatively affects subcontracting.
It negatively affects hiring and firing.
It is more risky.
Which element is part of a financial plan?
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ANSWER
Budget projections
SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis
Product pricing
Compensation planning
Budget projections
Why is the marketing plan essential to the creation of the aggregate plan?
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The actual market demand in the marketing plan is required to make adjustments to other plans.
Accurate cash flow objectives in the marketing plan are needed to achieve profitability levels.
The marketing plan provides insight into operations goals and activities for the year.
Research and development in the marketing plan drives new products.
The marketing plan provides insight into operations goals and activities for the year.
What is meant by “duration of the change”?
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The length of time one expects to need the different level of capacity
The size of the change needed
The percentage of normal operating capacity
The fiscal impact of the change on the strategic plan
The length of time one expects to need the different level of capacity
Which type of aggregate plan is preferable when a company produces custom or special purpose equipment, one-of-a-kind items, or highly perishable products?
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A level aggregate plan
A chase aggregate plan
A hybrid aggregate plan
A modified sales and operations plan
A chase aggregate plan
What are two common challenges of implementing an enterprise resource planning (ERP) solution?
Choose 2 answers.
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ANSWERCORRECT
ANSWER
It takes a long time to implement and to see any benefits.
It requires extensive, often complex, training.
The cost savings or payback is impossible to measure in terms of bottom line.
It must always be customized and too much customization may slow down projects.
It takes a long time to implement and to see any benefits.
It requires extensive, often complex, training.
What is the primary purpose in using the master production schedule (MPS) in the marketing department of an organization?
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To manage the demand for promised deliveries
To create demand for promised deliveries
To identify new product demand
To control the production department
To manage the demand for promised deliveries
A company is experiencing an unusual amount of deliveries that are either late or an incorrect quantity.
Which type of system is used to identify and manage this type of problem?
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ANSWER
ERP (enterprise resource planning)
CRP (capacity requirements planning)
FMS (flexible manufacturing system)
MRP (material requirements planning)
MRP (material requirements planning)
Which statement is true about capacity requirements planning (CRP)?
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Production capacity is created for future production items.
Human capital adequacy is analyzed for given work centers and production items.
Each product item is individually addressed regardless of relevant holistic processes.
Available capacity is compared to calculated workloads of relevant items.
Available capacity is compared to calculated workloads of relevant items.
What is true about capacity requirements planning (CRP)?
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It is identical to rough-cut capacity planning.
It enables evaluation of work centers for critical usage.
Its purpose is to maintain priorities.
It determines the quantity requirements for materials.
It enables evaluation of work centers for critical usage.
Which project life cycle phase includes identifying the need for a project?
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ANSWER
Planning
Conception
Feasibility analysis
Execution
Conception
A company decides and makes plans to enter into a new market.
Which project life cycle phase does this strategy directly relate to?
YOUR
ANSWERCORRECT
ANSWER
Feasibility analysis
Planning
Conception
Execution
Conception
