Question 1

Research and development (R&D) can help a company improve quality by:

Accepted Answer

R&D can improve quality by designing products that are easy to manufacture, which can lead to fewer defects and higher quality products.

Question 2

The Mountain Ski Lodge spent $100,000 marketing and advertising its new ski trails and on-site spa. The money used for marketing and advertising can be referred to as:

Accepted Answer

The money spent on marketing and advertising is a fixed cost because it does not vary with the number of guests utilizing the ski trails or spa.

Question 3

Which of the following statements regarding customer defection is NOT true?

Accepted Answer

The answer of Which of the following statements regarding customer...

Question 4

Just-in-time inventory (JIT) systems:

Accepted Answer

JIT systems are designed to reduce inventory holding costs by having inventory arrive just in time for production or sale, rather than keeping excess inventory on hand.

Question 5

Which of the following is NOT a role played by infrastructure leadership in implementing reliability improvement methodologies?

Accepted Answer

Lengthening production runs is not a role played by infrastructure leadership in implementing reliability improvement methodologies. The other options listed are all important roles played by infrastructure leadership in this process.

Question 6

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

Cream Cups is offering its customers the ability to personalize their cakes, which is an example of mass customization. Mass customization allows customers to have personalized products while still being produced in large quantities.

Question 7

Mass customization:

Accepted Answer

Mass customization refers to a company's ability to reconcile low cost and differentiation by utilizing technology to produce customized products at a large scale. It allows customers to personalize products based on their specific needs and preferences, while still maintaining cost efficiencies in the production process. None of the other options accurately describe mass customization.

Question 8

Which of the following is the final step in the five-step chain reaction on which the philosophy of total quality management (TQM) is based?

Accepted Answer

The answer of Which of the following is the final...

Question 9

Unlike traditional manufacturing, flexible manufacturing:

Accepted Answer

Flexible manufacturing allows for faster and more efficient production of different products, leading to lower unit costs compared to traditional manufacturing.

Question 10

Which of the following refers to unit cost increases associated with a large scale of output?

Accepted Answer

Diseconomies of scale refer to the unit cost increases associated with large scale of output, which is the opposite of Economies of scale. Learning effects refer to the reduction in unit costs as workers become more experienced with a particular task, while Flexible manufacturing and Mass customization refer to production processes that allow for greater flexibility and customization of products, respectively.

Question 11

Quality can best be thought of as:

Accepted Answer

Quality is best thought of as the attributes that customers perceive as superior in a product. While identifying customer needs and developing products based on those needs are important aspects of quality, quality itself is defined by the customer's perception of the product's attributes. Quantity of inputs and cost reductions do not necessarily correlate with quality.

Question 12

The experience-curve concept:

Accepted Answer

The experience-curve concept is particularly important in industries that mass-produce a standardized output. It suggests that as a company produces more units of a particular product, its unit costs of production will decrease, due to both learning effects and economies of scale.

Question 13

A company's hiring strategy:

Accepted Answer

A company's hiring strategy can directly affect employee productivity as it determines the quality of candidates selected for the job. Effective hiring strategies can lead to hiring the right candidates with the necessary skills and experience to perform their roles efficiently, while a poor hiring strategy can result in selecting the wrong candidates.

Question 14

Which of the following does the philosophy underlying total quality management (TQM) include?

Accepted Answer

The philosophy underlying total quality management (TQM) includes the idea that better quality leads to higher market share. TQM emphasizes the importance of meeting or exceeding customer expectations, and providing high-quality products and services. This can lead to increased customer loyalty, positive word-of-mouth advertising, and ultimately, higher market share.

Question 15

Employee productivity is:

Accepted Answer

Employee productivity is a key determinant of a company's efficiency, cost structure, and profitability. When employees are productive, they are able to produce more output in less time, which leads to cost savings for the company. Additionally, companies with productive employees are able to meet production deadlines, provide high-quality products or services, and ultimately increase their profitability.

Question 16

Which of the following steps in the five-step chain reaction, as articulated by Deming with regard to the philosophy underlying total quality management (TQM), enables a company to achieve a higher market share and raise prices?

Accepted Answer

The answer of Which of the following steps in the...

Question 17

Which of the following is NOT one of the principles commonly found in companies that have successfully embraced the total quality management (TQM) philosophy?

Accepted Answer

Total quality management philosophy requires defining work standards in terms of quality and not just numbers or quantity.

Question 18

Amazon has developed strategies for their distribution warehouses that minimizes the amount of inventory held at each location and maximizes the amount of inventory turnover. Through these strategies, they are utilizing:

Accepted Answer

Amazon's strategies for minimizing inventory and maximizing turnover align with the principles of supply chain management, which involves optimizing the flow of goods and information throughout the supply chain.

Question 19

Learning effects:

Accepted Answer

Learning effects refer to the improvement in productivity and efficiency that occurs as a worker gains experience with a particular task. This effect tends to be more significant when a technologically complex task is repeated, as the worker becomes more skilled and efficient in performing the task. Therefore, option D is the correct choice.

Question 20

Which of the following is a tactical step for getting down the experience curve ahead of competitors?

Accepted Answer

Adopting an aggressive marketing strategy to build up demand and accumulated volume quickly allows a company to move down the experience curve faster than competitors by increasing production volume, which in turn leads to lower costs per unit due to economies of scale and learning effects.

Quiz 4: Competitive Advantage Through Functional-Level Strategies