SCMT Exam 2 - FLASHCARDS - Sample questions

Question 1

True or false: Concept development is one of the typical phases of product development?

Answer 1

TRUE. The process begins with a planning phase, which is the link to advanced research and technology development activities. The output of the planning phase is the project’s mission statement, which is the input required to begin the concept development phase

Question 2

True or false: One of the methodologies that can aid in designing a new product for customers is a house of quality matrix?

Answer 2

TRUE

Question 3

True or false: Core competencies are those things that everyone in the firm must be able to do well?

Answer 3

FALSE. A company’s core competency is the one thing that it can do better than its competitors

Question 4

Which of the following is not a typical phase of product development?
a. Concept development
b. Value engineering
c. System-level design
d. Testing and refinement
e. Production/ramp-up

Answer 4

Value engineering

Question 5

True or false: An event unit package is a subdivision of a project?

Answer 5

FALSE. An event unit package is not described in text

Question 6

True or false: The second step in managing a project is writing the statement of work?

Answer 6

FALSE. A project starts out as a statement of work

Question 7

True or false: One of the advantages of a functional project organizational structure is that a team member can work on several projects?

Answer 7

TRUE

Question 8

True or false: One of the assumptions made using CPM is that project activity times can be estimated accurately and that they do not vary?

Answer 8

TRUE. A network reflecting the precedence relationships needs accurate durations of activities

Question 9

An advantage of a pure project where self-contained teams work full time on a project is which of the following?
a. Team members can work on several projects.
b. Functional area is a “home” after the project is completed.
c. There are duplicated resources.
d. Lines of communication are shortened.
e. Overall organizational policies and goals can be ignored.

Answer 9

Lines of communication are shortened

Question 10

A project can be subdivided into which of the following?
a. Job orders
b. Sub-jobs
c. Work packages
d. Sub-paths
e. Events and decisions

Answer 10

Work packages

Question 11

True or false: Facility location analysis considers the competitive imperative of locating near the appropriate labor pool to take advantage of high technical skills?

Answer 11

TRUE. The educational and skill levels of the labor pool must match the company’s needs

Question 12

True or false: Because the world is becoming more highly interconnected, the proximity of an important supplier’s plants is not crucial in supporting lean production methods?

Answer 12

FALSE. A high-quality and competitive supplier base makes a given location suitable. The proximity of important suppliers’ plants also supports lean production methods

Question 13

True or false: Facility location decisions are made using analytical techniques that are able to weigh a large number of different variables equally?

Answer 13

FALSE. Analytical techniques assist the decisions but seldom weigh different variables equally

Question 14

Which of the following is not a criterion that influences manufacturing plant or warehouse facility location decisions?
A. Proximity to customers
B. Historical cost
C. Infrastructure of a country
D. Quality of labor
E. Business climate

Answer 14

Historical cost

Question 15

Which of the following is a plant location methodology good for locating a single facility within a set of existing facilities based in distances and volumes of goods shipped?
A. Factor-rating systems
B. Centroid method
C. Decision trees
D. Linear programming
E. Regression analysis

Answer 15

Centroid method. The centroid method is a technique for locating single facilities that considers the existing facilities, the distances between them, and the volumes of goods to be shipped

Question 16

True or false: Functional products include staples that people buy in a wide range of retail outlets, such as gas stations?

Answer 16

TRUE

Question 17

True or false: Logistics is a term indicating transportation choices for goods produced internationally but consumed domestically?

Answer 17

False. Logistics is a term that refers to the management functions that support the complete cycle of material flow, from the purchase and internal control of production materials; to the planning and control of work-in-process; to the purchasing, shipping, and distribution of the finished product

Question 18

True or false: An improvement-driven reason for outsourcing is that it can increase cycle time?

Answer 18

False. An improvement reason is to decrease cycle time

Question 19

Which of the following is an improvement-driven reason for outsourcing?
A. Shorten cycle time.
B. Improve effectiveness by focusing on what the firm does best.
C. Increase product and service value by improving response to customer needs.
D. Turn fixed costs into variable costs.
E. Reduce costs through a lower cost structure.

Answer 19

Shorten cycle time

Question 20

Within the total cost of ownership, ownership costs include which of the following costs?
A. Environmental costs
B. Warranty costs
C. Supply chain costs
D. Quality costs
E. Taxes

Answer 20

Supply chain costs

Question 21

True or false: Conformance quality is a strategic decision for a firm?

Answer 21

FALSE. Conformance quality refers to the degree to which the product or service design specifications are met. The activities involved in achieving conformance are of a day-to-day nature

Question 22

True or false: Design quality refers to the inherent value of the product in the marketplace?

Answer 22

TRUE. Design quality refers to the inherent value of the product in the marketplace and is thus a strategic decision for the firm.

Question 23

True or false: One six sigma tool used in total quality management is the Pareto chart?

Answer 23

TRUE. The tools common to all quality efforts, including Six Sigma, are flowcharts, run charts, Pareto charts, histograms, checksheets, cause-and-effect diagrams, and control charts

Question 24

The dimension of design quality that concerns the consistency of performance over time or the probability of failing is which of the following?
A. Response
B. Serviceability
C. Reliability
D. Reputation
E. Perceived quality

Answer 24

Reliability

Question 25

Which of the following is the cost of quality classification for costs such as defects that pass through the system (e.g., customer warranty replacements, loss of customer or goodwill, handling complaints, and product repair)?
A. Appraisal costs
B. Prevention costs
C. External failure costs
D. Customer return cost
E. Workmanship costs

Answer 25

External failure costs. External failure costs include costs for defects that pass through the system: customer warranty replacements, loss of customers or goodwill, handling complaints, and product repair

Question 26

True or false: Acceptance sampling is performed on goods that already exist to determine what percentage of items conforms to specifications?

Answer 26

TRUE

Question 27

True or false: It is impossible to have zero variability in production processes?

Answer 27

TRUE. As noted in class, it is impossible to have zero variability

Question 28

For which of the following should we use an R-chart to monitor process quality?
A. Weighing trucks at a highway inspection station to determine if they are overloaded
B. Deciding whether an airliner has sufficient fuel for its trip
C. Student grades measured from 1 to 100
D. Determining whether vehicles from a motor pool will run
E. Determining the accuracy of a forecast of “snow”

Answer 28

Student grades measured from 1 to 100. We are looking at things that have continuous types of numbers. In attribute sampling, we determine whether something is good or bad, fits or doesn’t fit—it is a go/no-go situation. In variables sampling we measure the actual weight, volume, number of inches, or other variable measurements, and we develop control charts to determine the acceptability or rejection of the process based on those measurements. X-bar and R-charts are used with variable measurements

Question 29

You are developing an X-bar chart based on sample means. You know the standard deviation of the sample means is 100, the desired confidence level is 99.7 percent, and the average of the sample means is 400. Which of the following is your UCL?
A. 500
B. 300
C. 600
D. 200
E. None of these

Answer 29

None of the above. From the notes (and book), we know the rule of thumb z = 3 (which is the 99.7% level). Using Equation 13.12 from the book, X-bar = 400, standard deviation = 100 and z = 3. UCL = 400 + (3 x 100) = 700

Question 30

True or false: One of the basic purposes of inventory analysis in manufacturing and stock keeping services is to determine the level of quality to specify?

Answer 30

False. The basic purpose of inventory analysis in manufacturing and stock keeping services is to specify (1) when items should be ordered and (2) how large the order should be.

Question 31

True or false: Fixed-time-period inventory models are “event triggered”?

Answer 31

False. The basic distinction is that fixed-order-quantity models are “event triggered” and fixed- time-period models are “time triggered.”

Question 32

True or false: Safety stock is not necessary in any fixed-time-period system?

Answer 32

False. Fixed-time-period models generate order quantities that vary from period to period, depending on the usage rates. These generally require a higher level of safety stock than a fixed-order-quantity system

Question 33

In making any decision that affects inventory size, which of the following costs do not need to be considered?
A. Holding costs
B. Setup costs
C. Ordering costs
D. Fixed costs
E. Shortage costs

Answer 33

Fixed costs. In making any decision that affects inventory size, the following costs must be considered: 1. Holding (or carrying); 2. Setup (or production change); 3. Ordering; 4. Shortage.

Question 34

If annual demand is 1,000 units, the ordering cost is $500 per order, and the holding cost is $1 per unit per year, which of the following is the optimal order quantity using the fixed- order-quantity model?
A. 500
B. 1000
C. 5000
D. 50,000
E. 1,000,000

Answer 34

From Equation 20.3, Q = 1000 = Square root of ((2 x 1,000 x 500)/1).