1.

Companies must prioritize and determine the performance dimensions on which they will focus
and excel. Each performance dimension has several sub-dimensions. Performance,
conformance, and reliability are sub-dimensions of
1. Quality
b. "Performance dimensions for which customers expect a minimum level of performance, but do
not provide a competitive advantage" is the definition of
1. Order qualifier
b. Will this be enough to make Supplier B competitive? Which supplier do you think will win the
business?
1. Increasing the conformance quality to above the qualifier level will allow Supplier B to
compete for the business.  Since Supplier B is better than Supplier A in 2 of the 3
categories, Supplier B will likely win the business if it is able to meet the qualifier.
However, it still ultimately depends on how the various customers value the different
order winners.
b. Managers at Supplier A have determined that if they increase the minimum order size to 100
liters, they can decrease their costs to $33 per liter. Should they do it?
1. Supplier A should not decrease their cost to $33 per liter by increasing the minimum
order quantity to 100 liters. Doing this will result in Supplier A being the leader in 0 of the
3 order winner categories and will likely lose the business. 
b. "Translates the business strategy into specific actions and coordinates with other areas" is the
definition of
1. Functional strategy
b. Which of the following is a structural element of a business strategy?
1. Computer systems 
b. The firm's targeted customers and the operations and supply chain functions needed to provide
value to them are identified in the
1. Business strategy 
b. McDonald's focuses the employee on a specific task such as cashier or grill cook. Subway
employees have broad skills and can run the entire restaurant by themselves. The choice of
employee roles is an example of which of the following types of business elements?
1. Infrastructural 
b. Which of the following is the formula for calculating takt time?
1. Available production time/ required output rate
b. A _______________ includes all the value-added physical and intangible activities that a service
organization provides to customer. 
1. Service package
b. The law of variability says that "the greater the random variability either demanded of the process
or inherent in the process itself or the items processed,
1. The less productive the process is
 
12. As the new facilities manager at Hardin Company, you have been asked to determine the layout
for four departments on the fourth floor of the company's headquarters. Following is a map of the
floor with distances between the areas. 
a. 24
b. 3210
12. As the degree of customer contact increases,
a. More of the service package is provided by front room operations
 
14. _______________ are highly automated batch processes that can reduce the cost of making
groups of similar products.
a. Flexible manufacturing systems
14. Which of the following products involve customization only at the very end of the manufacturing
process?
a. Assemble-to-order (ATO)
 
16. In _______________, resources are arranged sequentially according to the steps required to
make a product.
a. A product based layout
16. Burns Boats wants to assemble 70 boats per 6-hour day, using a production line. Total task time
for each boat is 60 minutes.
a. The takt time is 5 minutes per boat (EQUATION: (6)(60)/70= 5)
16.  (Apart of #17) The theoretical minimum number of workstations is 12 (EQUATION: 60/5).
a. Suppose the longest individual task takes 7 minutes. Will Burns be able to accomplish its
goal?
i. No because the longest task time is larger than the takt time. The takt time is
equal to the highest allowable cycle time in order to meet the required output
rate.
16. A customer support job requires workers to complete a particular online form in 370 seconds. Les
can finish the form in 670 seconds. What is his efficiency?
a. 55.2% (EQUATION: 370/670= 0.5522)
16. A detailed map that identifies the specific activities that make up the informational, physical
and/or monetary flows of a process is
a. Process map
16. Business process reengineering (BPR) is designed to change an existing process in an
incremental fashion. The process owners that use BPR should always feel that the process can
be performed a little better than it currently is.
a. False
16. In a swim lane process map, a decision is represented by which symbol?
a. diamond
 
23. "The total elapsed time needed to complete a business process (also known as throughput time)"
is the definition of
a. scatterplot
23. A business process that addresses the main value-added activities (activities for which customers
will pay) is defined as a _________ process.
a. Primary
23. "A set of logically related tasks or activities performed to achieve a defined business outcome" is
the definition of
a. A process
23. Marci spends 11 hours researching and writing a 18 page report for her philosophy class. Jack
brags that he has a “streamlined process” for performing the researching and writing. Jack takes
just 6 hours to research and write the paper, but his report is only 10 pages long. 
a. Marci’s productivity is 1.64 (EQUATION: 18/11=1.636)
i. Jack’s productivity is 1.67 (EQUATION: 10/6=1.666)
ii. This is a single factor productivity measure 
b. What’re the limitations of using productivity measures to evaluate Marci’s and Jack’s
performance?
i. The quality of the work is not assessed. 
 
27. Leah's Toys produces molded plastic baby rattles. These rattles must be completely smooth. That
is, there can be no rough edges where the molded halves fit together. Rattles are judged to be
either acceptable or defective with regard to this requirement. Leah's has determined that the
current process has an underlying p value of 0.07, meaning that, on average, 7 out of 100 rattles
is currently judged to be defective. Calculate the standard deviation for the process and the
resulting control limits for samples of 1,000 rattles each.
a. The standard deviation for the process is 
b. The UTL is 
c. The LTL is 
27. The standard that extends the benefits of quality management to all parties that are interested in
or affected by a business's operations is
 a. ….
27. A flange is to be machined at a diameter of 6.52 cm +/- 0.003 cm. The process  standard
deviation is 0.006 cm. What is the process capability ratio? 
a. 1.67 (EQUATION: )
27. In the Dittenhoefer Fine China case, a worker found that the plates had around 2.4 microns of
coating applied. Manufacturing was able to correct the problem and save these plates, but no one
knew how many plates had been shipped before the problem was discovered. The plates that
were already shipped before the problem was corrected resulted in which of the following type of
quality costs?
a. External failure 
27. "Managing the entire organization so that it excels in all dimensions important to the customer,
including product development, marketing and supply chain" is the definition of
a. Total quality management 
27. Which of the following is a principle of TQM that assumes there will always be room for
improvement, no matter how well an organization is doing?
a. Continuous Improvement
27. Regardless of whether the traditional view of the total cost of quality or the zero defects view of
the total cost of quality is taken,
a. As the defect level increases, the failure costs increase
27. __________ is the dimension of quality that addresses the additional characteristics of the
product or service beyond the base operating features.
a. Features
27. Which of the following statements regarding control charts is best?
a. Control charts are used to distinguish whether the process is operating normally or
requires attention
27. The American Society for Quality has a two part definition of quality. One perspective on quality is
"a product or service free from deficiencies; the product performs as intended." This is the
____________   perspective on quality.
a. Conformance
27. "A body of theory based on applied statistics that helps managers evaluate the relationship
between capacity decisions and important performance issues" is the formal definition of
a. Waiting line theory..
27. "The expenses an organization incurs regardless of the level of business activity" is the definition
of
a. Fixed costs 
27. A company is considering building a hotel in downtown Raleigh. They decide to build the hotel in
anticipation of demand because they want to make sure they have adequate capacity to meet all
demand and would like to preempt the competition. This capacity strategy is 
a. Lead strategy
27. "The maximum output capability, allowing for no adjustments for preventative maintenance or
unplanned downtime" is the definition of
a. theoretical capacity 
27. "For every doubling of cumulative output, there is a set percentage reduction in the amount of
inputs required" is the formal definition of
a. Learning curve theory
27. Which of the following will move rated capacity closer to theoretical capacity?
a. A decrease in product complexity
 
43. A capacity strategy in which capacity is added only after demand has materialized--typically a
good strategy for mature, cost sensitive products and services is the definition of 
a. Lag strategy