Question 1

Productivity is measured by multiplying inputs by the outputs.

Accepted Answer

Productivity is measured by dividing outputs by inputs, not multiplying them.

Question 2

The cost of poor quality is typically 20 to 30 percent of revenues.

Accepted Answer

The cost of poor quality can vary depending on the industry and company, but studies have shown that it can range from 15 to 40 percent of revenues. The 20 to 30 percent range is a commonly cited estimate.

Question 3

The Pareto Principle states that when performance is out of control,manufacturers should first look at the usual "vital few" reasons (20 percent),and most of the time (80 percent)they will have a standing-plan solution.

Accepted Answer

This is the correct statement of the Pareto Principle, which is also known as the 80/20 rule. It suggests that in many situations, 80% of effects come from 20% of causes, and the "vital few" factors should be prioritized for improvement.

Question 4

Philip B.Crosby emphasized quality as a virtue of design.

Accepted Answer

Philip B. Crosby emphasized quality as conformance to requirements, not as a virtue of design.

Question 5

Productivity is a performance measure relating outputs to inputs.

Accepted Answer

Productivity is indeed a performance measure that compares the amount of output produced to the amount of inputs used to produce that output. This can be expressed in a formula such as output/input, which provides a quantitative measure of how efficiently resources are being utilized.

Question 6

The use of strategies to increase the speed with which an organization goes from creativity to delivery is known as:
A) operations.
B) time-based competition.
C) process improvements.
D) concurrent development.

Accepted Answer

Time-based competition refers to strategies that focus on reducing the time it takes to move from idea generation to product delivery, enhancing competitiveness.

Question 7

Haircuts,dry cleaning,and legal advice are __________ products.
A) tangible
B) intangible
C) mixed
D) both tangible and intangible

Accepted Answer

Haircuts, dry cleaning, and legal advice are services, which are examples of intangible products. They cannot be touched or physically possessed, unlike tangible products such as clothes or furniture.

Question 8

Most goods in retail stores are from __________ operations.
A) make-to-stock
B) make-to-order
C) assemble-to-order
D) assemble-to-stock

Accepted Answer

Most goods in retail stores are produced using the make-to-stock operation, where products are manufactured in large quantities in advance and stored in inventory until they are sold to customers. This allows retailers to have a readily available supply of products to meet customer demand without having to wait for manufacturing lead times. Retailers may also use assemble-to-stock operations for certain products or variations, but make-to-stock is the most common approach.

Question 9

Six Sigma's goal is only 1.4 defects or mistakes per million operations.

Accepted Answer

Six Sigma's goal is 3.4 defects per million opportunities, not 1.4.

Question 10

Statistical process control (SPC)is the process of ensuring that all types of inventory meet standards.

Accepted Answer

Statistical process control (SPC) is not related to ensuring that all types of inventory meet standards. It is a method of monitoring and controlling a process to ensure it stays within specified limits and produces consistent results. It is commonly used in manufacturing and quality control to detect and prevent defects or variations in products or processes.

Question 11

Burger King emphasizing "having it your way" illustrates which level of customer involvement?
A) make-to-stock
B) make-to-order
C) assemble-to-order
D) assemble-to-stock

Accepted Answer

"Having it your way" at Burger King refers to customizing orders based on customer preferences, which aligns with the assemble-to-order approach where products are assembled only after receiving a customer's order.

Question 12

Maintaining the value of the outputs while decreasing the value of the inputs is one way to increase productivity.

Accepted Answer

This statement is true. Increasing productivity means achieving more output with the same or decreased amount of input. By maintaining the value of the outputs while decreasing the value of the inputs, one can achieve this goal of improved productivity.

Question 13

__________ operations have the highest level of customer involvement.
A) Make-to-stock
B) Make-to-order
C) Assemble-to-order
D) Assemble-to-stock

Accepted Answer

Make-to-order operations involve the highest level of customer involvement because the product is not produced until the customer places the order and specifies their unique requirements. This requires more communication and collaboration between the customer and the manufacturer, resulting in a higher level of customer involvement.

Question 14

Which of the following is NOT a level of customer involvement?
A) assemble-to-stock
B) make-to-stock
C) assemble-to-order
D) make-to-order

Accepted Answer

Assemble-to-stock, make-to-stock, assemble-to-order, and make-to-order are all levels of customer involvement in the manufacturing process. Assemble-to-stock and make-to-stock refer to mass production with little or no customization, while assemble-to-order and make-to-order involve more customization based on customer demand.

Question 15

__________ process operations produce outputs in an assembly-line structure,where employees and equipment are quite specialized in function and location.
A) Project
B) Repetitive
C) Batch
D) Individual

Accepted Answer

Repetitive process operations involve a continuous and standardized production process, where the equipment and employees are specialized in their functions and are located in a fixed assembly-line structure. This is unlike batch or individual processes, where the production process is more flexible and may involve a variety of equipment and employee functions. Project processes are unique, one-time productions and do not involve a standardized assembly-line structure.

Question 16

__________ is the function concerned with transforming resource inputs into product outputs.
A) Production
B) Transformation
C) Operations
D) Technology

Accepted Answer

The answer of __________ is the function concerned with transforming...

Question 17

Automobiles,computers,and books are __________ products.
A) tangible
B) intangible
C) mixed
D) both tangible and intangible

Accepted Answer

Tangible products refer to physical objects that can be touched, seen, and felt. Automobiles and books are physical objects, while computers may have intangible components (such as software) but still have tangible parts (such as the hardware). Therefore, the most appropriate choice is A, tangible products.

Question 18

Armand V.Feigenbaum said that maintaining quality is expensive and focusing on improving quality will not lower costs.

Accepted Answer

Armand V. Feigenbaum believed in the concept of Total Quality Control which focuses on improving quality while also lowering costs. He believed that improving quality can lead to improved efficiency, reduced waste and ultimately cost savings.

Question 19

The balanced scorecard (BSC)measures financial,customer service,and internal business performance,as well as learning and growth performance.

Accepted Answer

This statement is true. The balanced scorecard framework was developed to address the limitations of traditional financial metrics by incorporating measures related to customer, internal business processes, and learning and growth perspectives.

Question 20

The production of gas and oil,electricity,and chemicals exemplify __________ process operations.
A) continuous
B) repetitive
C) batch
D) project

Accepted Answer

The production of gas and oil, electricity, and chemicals are continuous process operations because they involve the continuous flow of materials and the production process is not interrupted. Continuous processes often require specialized equipment and are used to produce large quantities of a product.

Quiz 14: Operations,quality,and Productivity

Productivity is measured by multiplying inputs by the outputs.

The cost of poor quality is typically 20 to 30 percent of revenues.

The Pareto Principle states that when performance is out of control,manufacturers should first look at the usual "vital few" reasons (20 percent),and most of the time (80 percent)they will have a standing-plan solution.

Philip B.Crosby emphasized quality as a virtue of design.

Productivity is a performance measure relating outputs to inputs.

The use of strategies to increase the speed with which an organization goes from creativity to delivery is known as:

Haircuts,dry cleaning,and legal advice are __________ products.

Most goods in retail stores are from __________ operations.

Six Sigma's goal is only 1.4 defects or mistakes per million operations.

Statistical process control (SPC)is the process of ensuring that all types of inventory meet standards.

Burger King emphasizing "having it your way" illustrates which level of customer involvement?

Maintaining the value of the outputs while decreasing the value of the inputs is one way to increase productivity.

__________ operations have the highest level of customer involvement.

Which of the following is NOT a level of customer involvement?

__________ process operations produce outputs in an assembly-line structure,where employees and equipment are quite specialized in function and location.

__________ is the function concerned with transforming resource inputs into product outputs.

Automobiles,computers,and books are __________ products.

Armand V.Feigenbaum said that maintaining quality is expensive and focusing on improving quality will not lower costs.

The balanced scorecard (BSC)measures financial,customer service,and internal business performance,as well as learning and growth performance.

The production of gas and oil,electricity,and chemicals exemplify __________ process operations.