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Quality Management Practice Questions - 1926 Verified Questions

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Quality Management Practice

Questions

Course Introduction

Quality Management explores the principles, practices, and tools used to ensure that products and services consistently meet or exceed customer expectations. This course covers key concepts such as Total Quality Management (TQM), Six Sigma, ISO standards, and continuous improvement methodologies. Students will learn how to design quality control systems, utilize statistical process control, implement quality assurance protocols, and foster a culture of quality within organizations. Emphasis is placed on real-world applications across different industries, effective leadership in quality initiatives, and the strategic role of quality management in achieving organizational goals.

Recommended Textbook

OM 5 5th Edition by David Alan Collier

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23 Chapters

1926 Verified Questions

1926 Flashcards

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Page 2

Chapter 1: Goods, Services, and Operations Management

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Sample Questions

Q1) Explain the concept of a customer benefit package (CBP). Also, differentiate a primary good or service from a peripheral good or service.

Answer: A customer benefit package (CBP) is a clearly defined set of tangible (goods-content) and intangible (service-content) features that the customer recognizes, pays for, uses, or experiences. The CBP is a way to conceptualize and visualize goods and services by thinking broadly about how goods and services are bundled and configured together.

A CBP consists of a primary good or service coupled with peripheral goods and/or services. A primary good or service is the "core" offering that attracts customers and responds to their basic needs. For example, the primary service of a personal checking account is convenient financial transactions. Peripheral goods or services are those that are not essential to the primary good or service but enhance it. A personal checking account might be supported and enhanced by such peripheral goods as a printed monthly account statement, designer checks and checkbooks, a special credit card and such peripheral services as a customer service hotline and online bill payment.

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Chapter 2: Value Chains

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Sample Questions

Q1) Decentralizing value chain activities lessens the control that a firm has over cost, quality, and other important business metrics, and often leads to higher levels of risk.

A)True

B)False

Answer: True

Q2) Proportional increases or decreases in perceived benefits as well as price or cost result in no net change in value.

A)True

B)False

Answer: True

Q3) The success of the entire value chain depends on how it is designed and managed.

A)True

B)False Answer: True

Q4) Offshoring is the same as outsourcing in terms of transferring ownership and control.

A)True

B)False Answer: False

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Chapter 3: Measuring Performance in Operations

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Sample Questions

Q1) Reliability is the ability to perform a service dependably and accurately.

A)True

B)False

Answer: True

Q2) The value chain model is probably the dominant model for operations managers.

A)True

B)False Answer: True

Q3) Empathy is the caring attitude and individualized attention provided to customers.

A)True

B)False Answer: True

Q4) Which of the following is NOT a key dimension of service quality?

A) Conformance

B) Tangibles

C) Empathy

D) Reliability

Answer: A

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Page 5

Chapter 4: Operations Strategy

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Sample Questions

Q1) _____ represent the strategic emphasis that a firm places on certain performance measures and operational capabilities within a value chain.

A) Competitive priorities

B) Order satisfiers

C) Value chain processes

D) Order winners

Q2) Which of the following statements best represents McDonald's vision?

A) To be the world's best quick-service restaurant experience

B) To be the most innovate organization in the world

C) To develop and maintain a diverse workforce

D) To be the most efficient process-oriented organization in the world

Q3) Which one of the following statements is TRUE with respect to McDonald's operations and strategy?

A) McDonald's #1 competitive priority is demand flexibility.

B) Professor Terry Hill's strategy framework cannot be applied to a company such as McDonald's.

C) There is only one standardized way (process) to make french fries in 32,000 stores worldwide.

D) McDonald's vision is to produce the world's best hamburger.

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Chapter 5: Technology and Operations Management

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Sample Questions

Q1) Procter & Gamble use bricks-and-mortar intermediaries.

A)True

B)False

Q2) If the forecast annual production volume is 10,000 units, which technology alternative should you choose?

A) Manual

B) Semi-automatic

Q3) A sociotechnical system integrates technology, people, and processes.

A)True

B)False

Q4) What sales price must be charged for Alternative 3 to break even?

A) Less than or equal to $2.00

B) More than $2.00 but less than or equal to $3.00

C) More than $3.00 but less than or equal to $4.00

D) More than $4.00 but less than or equal to $5.00

Q5) Enterprise resource planning systems are designed to build customer relationships and loyalty.

A)True

B)False

Q6) Discuss the role of technology in productivity.

Page 7

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Chapter 6: Goods and Service Design

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Sample Questions

Q1) Describe the market introduction/deployment step of an integrated framework for goods and service design.

Q2) The final step in using the House of Quality involves identifying those technical features that meet any of the following criteria EXCEPT:

A) the strongest relationship to customer requirements. B) the highest quality.

C) poor competitive performance.

D) strong selling points.

Q3) Reliability is formally expressed as a probability between 0 and 1.

A)True

B)False

Q4) A quality characteristic has a specification (in cm) of 0.400 ± 0.03. If the value of the quality characteristic exceeds 0.400 by the tolerance of 0.030 on either side, the product will require a $180.00 repair. What is the appropriate Taguchi loss function?

Q5) Implicit service guarantees are always in writing.

A)True

B)False

Q6) Explain the concept of reliability.

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Chapter 7: Process Selection, Design, and Analysis

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Sample Questions

Q1) A car rental company at a major airport has 80% of its fleet of 200 cars rented each day on average. Cars are rented for an average of 5 days. How many rentals are processed each day on average?

Q2) The Department of Motor Vehicle (DMV) testing center has ten (10) testers who test 75 drivers per day. Each tester can test eight (8) drivers per day. What would the service rate need to be in order to achieve 85% utilization?

Q3) As one moves up the hierarchy of work, the total number of tasks that must be coordinated becomes larger.

A)True

B)False

Q4) Flow time is the average time an entity takes to complete one cycle of a process

A)True

B)False

Q5) What is the implied service rate at a bank teller's window if demand is 26 customers per hour, and the bank staffs 3 tellers with an average utilization of 80%?

Q6) Some argue that modern technology invalidates the application of the product-process matrix. Explain their logic.

Q7) Define a value stream map. How does this differ from a regular process map?

Page 9

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Chapter 8: Facility and Work Designs

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Sample Questions

Q1) A Gallup study showed that workers who are allowed to personalize their workplaces were no more productive than those who are not allowed.

A)True

B)False

Q2) Services such as legal and medical specialties employ cellular layouts.

A)True

B)False

Q3) Flow-blocking and lack-of-work delays can be reduced by assigning an appropriate level of capacity at each workstation.

A)True

B)False

Q4) Explain the sociotechnical approach to job design and some ways to implement it.

Q5) Explain assembly-line balancing. Discuss the three types of information needed to balance an assembly line.

Q6) Process layouts generally require less investment in equipment than product layouts because the equipment is less specialized.

A)True

B)False

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Chapter 9: Supply Chain Design

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Sample Questions

Q1) Which one of the following statements is FALSE?

A) Boeing's new 787 Dreamliner airplane has encountered many startup and supply chain coordination problems.

B) General Motors pushes finished goods from its dealers to the customers.

C) Zappos uses third-party logistics for customer deliveries, return, and inbound shipping.

D) Federal Express has over one million pickup and delivery sites and therefore, is a good example of multisite management.

Q2) What are the key functions of a supply chain?

Q3) For Dell Inc., the push-pull boundary is very early in the supply chain, where suppliers store inventory for frequent deliveries to Dell factories.

A)True

B)False

Q4) The center-of-gravity method takes all the following into account EXCEPT the:

A) location of facilities and markets.

B) demand.

C) transportation costs.

D) production costs.

Q5) Explain the typical structure of a supply chain.

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Chapter 10: Capacity Management

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Sample Questions

Q1) The total process (throughput) capacity in units per hour for the four-stage process

A to D assuming 3 administrative clerks, 3 coding specialist, and 3 assistant managers on duty is:

A) less than 10 units per hour.

B) more than 10 units but less than or equal to 20 units.

C) more than 20 units but less than or equal to 30 units.

D) more than 30 units but less than or equal to 40 units.

Q2) An assembly line normally operates two shifts a day, five days per week. The planned capacity of the assembly line is 380 units/shift. Determine the average safety capacity if 700 items are assembled a day, on average.

Q3) An order fulfillment process normally operates two shifts a day, six days per week. Under normal conditions, 380 orders can be processed per shift. The weekly capacity is

A) less than 1,000 orders per week

B) more than 1,000 orders but less than or equal to 2,000 order per week

C) more than 2,000 orders but less than or equal to 3,000 orders per week

D) more than 3,000 orders per week.

Q4) Define the Theory of Constraints (TOC). How does TOC view throughput differently from the traditional OM perspective?

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Chapter 11: Forecasting and Demand Planning

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Sample Questions

Q1) Ed Rogers owns an appliance store. Sales data on a particular model of a DVD player for the past six months are shown below along with the results of two different forecasting models that were developed. \(\begin{array}{|l|c|c|c|}

\hline \text { Month } & \text { Sales } & \text { Forecast 1 } & \text { Forecast 2 } \\

\hline \text { Jan } & 35 & 30 & 25 \\

\hline \text { Feb } & 29 & 28 & 27 \\

\hline \text { Mar } & 39 & 43 & 40 \\

\hline \text { Apr } & 42 & 40 & 39 \\

\hline \text { May } & 51 & 48 & 41 \\

\hline \text { Jun } & 56 & 55 & 53 \\

\hline

\end{array}\) Which is the better forecasting model, based on the MAD criterion?

Q2) The method of least squares maximizes the sum of the squared deviations between the actual time-series values and the estimated values of the dependent variable.

A)True

B)False

Q3) Define regression analysis and explain how it is an approach to forecasting.

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Chapter 12: Managing Inventories

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Sample Questions

Q1) Given the information below, conduct an ABC analysis and determine which items should be classified as A, B, and C. \(\begin{array}{|c|r|r|}

\hline\text { SKU } & \text { Annual Usage } & \text { Item Value (\$) } \\

\hline \text { A } & 2,800 & 0.22 \\

\hline \mathrm{B} & 300 & 50.00 \\

\hline \mathrm{C} & 275 & 11.00 \\

\hline \mathrm{D} & 700 & 8.00 \\

\hline \mathrm{E} & 45 & 400.00 \\

\hline \mathrm{F} & 1,250 & 0.80 \\

\hline \mathrm{G} & 2,000 & 0.60 \\

\hline \end{array}\)

Q2) Airline flights to ski areas near Denver, Colorado, probably have different means and variances throughout the year. This is an example of dynamic demand.

A)True

B)False

Q3) Dependent demand, unlike independent demand, needs to be forecasted.

A)True

B)False

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Chapter 13: Resource Management

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Sample Questions

Q1) A hardware company is interested in developing a net requirement schedule for one of its products, a claw hammer. The beginning inventory for the product is 1500 units, and the safety stock is 300 units. The weekly demand over a six-week planning horizon is 400, 850, 560, 900, 600, and 700 units.

a.What would the net requirements be for Week 2?

b.What is the ending inventory in Week 4?

Q2) In a bill of materials (BOM), each component is comprised of one or more parent items.

A)True

B)False

Q3) Resource management deals primarily with managing inventories in a value chain. A)True

B)False

Q4) A chase demand aggregate planning strategy may result in substantial overtime, undertime, and rate-change costs.

A)True

B)False

Q5) Differentiate between a level production strategy and a chase demand strategy.

Q6) Explain the three levels of resource planning.

Page 15

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Chapter 14: Operations Scheduling and Sequencing

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Sample Questions

Q1) Using Johnson's rule to sequence the patients, and if your uncle is patient B, he will be finished with surgery in _____.

A) less than or equal to 5 hours

B) more than 5 but less than or equal to 10 hours

C) more than 10 but less than or equal to 15 hours

D) more than 15 but less than or equal to 20 hours

Q2) Appointments systems usually overbook to maximize revenue when no-show percentage reaches 10 percent or more.

A)True

B)False

Q3) The time needed to process a given set of jobs is called:

A) flow time.

B) ready time.

C) makespan.

D) due date.

Q4) A lateness measure can only be zero (0) or a positive number.

A)True

B)False

Q5) What are the four decisions that are considered in designing an appointment system?

16

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Chapter 15: Appendix: Quality Management

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Sample Questions

Q1) For a time study, it is assumed that distribution of task times follows a Poisson distribution.

A)True

B)False

Q2) Personal fatigue and delay allowances are added to _____ to arrive at _____.

A) standard time; normal time

B) standard time; desired time

C) normal time; desired time

D) normal time; standard time

Q3) The people best suited to set work standards are managers with input from industrial engineers.

A)True

B)False

Q4) A manufacturer made a commitment to supply 20 units of a product. The first unit took 1,200 hours to make, the second unit took 900 hours, and the third unit took 768 hours. How many hours should it take to make the 20th unit?

Q5) A job had a normal time of 2.43 minutes, an allowance of 20 percent, and a forecast demand of 120 units per day. How long should it take to produce one day's output?

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Chapter 15: Quality Management

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Sample Questions

Q1) Define Six Sigma, and explain the key concepts used to implement a Six Sigma quality initiative.

Q2) Using color-coded wires to reduce mistakes associated with assembling complex electronic products is an example of an application of the poka-yoke concept.

A)True

B)False

Q3) The recognized leader and benchmark for successful Six Sigma implementation is _____.

A) Sears, Roebuck and Co.

B) Starbucks

C) General Electric

D) Target

Q4) Which of the following is NOT one of W. Edwards Deming's 14 Points?

A) Create a vision and demonstrate commitment.

B) Create an environment that drives out fear.

C) Continuously improve products and processes.

D) Adopt Zero Defects as the only performance standard.

Q5) Discuss Kaizen and how it differs from a kaizen event.

Q6) Explain the four components of the cost of quality.

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Chapter 16: Quality Control and Spc

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Sample Questions

Q1) An operator has determined the percentage of defectives for a machine which she operates. Based on several samples of 75 observations, she found the p-bar to be 10 percent. She wants to set up a control chart using 3 standard deviation control limits.

a.What is the upper control limit for a p-chart?

b.What is the lower control limit for a p-chart?

Q2) In developing process control charts, if special causes are present, then they are not representative of the true state of statistical control, and the calculations of the center line and control limits will be biased.

A)True

B)False

Q3) The lower the rate of defects, the higher the sample size should be in p-charts.

A)True

B)False

Q4) Which of the following suggests a process that is NOT in control?

A) Points follow a smooth pattern from the lower control limit to the upper control limit.

B) The number of points above and below the center line is about the same.

C) Points fall randomly above and below the center line.

D) No points are outside the control limits.

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Chapter 16: Appendix: Queuing Analysis

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Sample Questions

Q1) For the multiple-server queuing model to apply, the overall mean service rate should be greater than the mean arrival rate.

A)True

B)False

Q2) An ice cream shop is quite busy after the neighborhood high school lets out each day. From 3 pm to 5 pm customers arrive at the rate of 50 per hour, on average. Currently, the clerk can serve one customer per minute, on average. The store manager can buy an electrically heated scoop with an automatic ice cream ejector which will decrease the serving time to one custom-er per 45 seconds, on average.

a. What is the current time (in minutes) spent waiting in line?

b. What will the waiting time (in minutes) become using the automatic ice cream ejector?

c. What fraction of time is the clerk currently idle?

d. What fraction of time will the clerk be idle using the automatic ice cream ejector?

e. How many customers, on average, are in the shop under the current system?

f. How many customers would be in the shop, on average, using the automatic ice cream ejector?

Q3) Compare and contrast wait cost with server cost. Which is harder to estimate?

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Chapter 17: Appendix: Modeling Using Linear Programming

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Sample Questions

Q1) A company is considering a rate change, either an increase or a decrease in production, where X<sub>t</sub> = production in a time period; R<sub>t</sub> = increase in production rate from Period t 1 to Period t; D<sub>t</sub> = decrease in production rate from Period t 1 to Period t. Which of the following is correct?

A) X<sub>t</sub> X<sub>t - 1</sub> = D<sub>t</sub> R<sub>t</sub>

B) X<sub>t - 1</sub> X<sub>t</sub> = D<sub>t</sub> R<sub>t</sub>

C) X<sub>t - 1</sub> X<sub>t</sub> = R<sub>t</sub> D<sub>t</sub>

D) X<sub>t</sub> X<sub>t - 1</sub> = R<sub>t</sub> D<sub>t</sub>

Q2) Which of the following is generally TRUE of the transportation problem of linear programming?

A) A specified quantity of goods is needed at each demand location.

B) The objective is to maximize profit.

C) The shipping cost from each source to each destination is the same.

D) An exponential loading/unloading distribution is assumed.

Q3) Since price is usually set by market conditions, the blending problem's use of linear programming attempts to meet the demand at a minimum cost.

A)True

B)False

Q4) Discuss the concept of optimization models with examples.

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Chapter 17: Lean Operating Systems

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Sample Questions

Q1) In a just-in-time (JIT) system, the computer inventory data is the interface and control point between customers and supply cycles.

A)True

B)False

Q2) Which of the following is NOT a best practice and prerequisite for implementing a just-in-time system?

A) Maximizing the number of parts or items

B) Good calibration of all gauges and testing equipment

C) Clean and uncluttered workplaces

D) Minimizing setup/changeover time

Q3) Timken Company illustrates the application of lean principles when it _____.

A) reduces the total cycle time for new product development

B) increases safety stock in its inventory system

C) expands factories and distribution centers

D) maximizes the number of parts or items in its systems

Q4) Knowledge bottlenecks and equipment breakdowns are a form of waste in organizations.

A)True

B)False

Q5) Define lean thinking and the four principles of lean operating systems.

Page 22

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Chapter 18: Appendix: Simulation

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Sample Questions

Q1) Discuss two advantages and three disadvantages of simulation models.

Q2) If variable demand were the only source of uncertainty, the order-quantity and reorder-point decision could be based on a single-period inventory model.

A)True

B)False

Q3) Which of the following statements is CORRECT regarding a simulation model for inventory management?

A) Only demand varies, while the lead time remains constant.

B) The goal is to minimize waiting time.

C) It looks at a combination of order quantity and reorder point.

D) It does not allow backorders of stockouts.

Q4) A simulator is a general-purpose simulation model.

A)True

B)False

Q5) All of the following are verification techniques EXCEPT:

A) developing logical flowcharts.

B) developing a model with high face validity.

C) conceptualizing a problem into smaller pieces or modules.

D) enabling people other than the programmer to check codes.

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Chapter 18: Project Management

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Sample Questions

Q1) Slack for activity E is:

A) less than 4.

B) between 4 and 6.

C) between 6 and 8.

D) greater than 8.

Q2) Brian is assigned his first project. If things go well, he should get promoted. The CEO is aware of this project, so he has a chance for high visibility. His first task is to define the work break down structure by interviewing project activity managers, and the firm's friendly, yet boring accountants, to get "good estimates" of project activity times and costs. For Activity Z, the crash cost per week is _____, given the following data: normal time = 5 weeks, crash time = 2, normal cost = $7,560, and crash cost = $17,365.

A) less than or equal to $1,000 per week

B) more than $1,000 but less than or equal to $2,500

C) more than $2,500 but less than or equal to $3,000

D) more than $3,000 but less than or equal to $3,500

Q3) The critical path is the sequence of activities that takes the longest time.

A)True

B)False

Q4) Describe the four major steps in the project-planning process.

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Chapter 19: Appendix: Decision Analysis

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Sample Questions

Q1) Making decisions in an emergency room of a hospital is an example of a decision analysis situation.

A)True

B)False

Q2) Explain the concept of expected value of perfect information (EVPI). How does it help a decision maker?

Q3) A numerical value associated with a decision coupled with some event is called a decision tree.

A)True

B)False

Q4) Which of the following is NOT a similarity between the elements of a decision problem and a decision tree?

A) Time

B) States of nature

C) Alternatives

D) Probabilities

Q5) Risk is a form of uncertainty associated with an unexpected good.

A)True

B)False

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