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Question
Which of the following is NOT true about the cost of quality?
A. Cost of quality is actually the cost of poor quality
B. Increasing prevention cost increases appraisal, internal and external failure costs
C. Training cost is an example of prevention cost
D. Warranty is an example of external failure cost
Answer
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Related questions
Q:
The average inventory level is defined as the difference between the cycle stock and the safety stock.
Q:
The choice between P and Q systems should be based on:
A. Timing of replenishment
Q:
ABC analysis requires that inventory be classified according to:
A. Alphabetical order by item name
B. Annual dollar usage
C. Activity-based costs
D. Due date
Q:
A paint supplier that places orders for different colors of paint for delivery at the same time should use a:
A. P system
B. Q system
C. Dependent demand inventory model
D. Quantity discount model
Q:
Which of the following is NOT an assumption of the basic EOQ model?
A. Annual demand is constant and known.
B. Lead-time is constant and known.
C. No stockouts are allowed.
D. Quantity discounts are available.
Q:
Independent demand inventory consists of:
A. Inventory whose demand comes from independent suppliers
B. Inventory that is independent of any known rules of demand and supply
C. Demand that is related to the demand for another item
D. Inventory whose demand is determined by market conditions outside the firm
Q:
Which of the following is NOT a purpose of inventory?
A. To protect against uncertainties
B. To allow economic production of batches
C. To provide for transit
D. To decrease obsolescence
Q:
A work-breakdown structure is used in the scheduling activity of project management.
Q:
Given that unit cost = $25, annual carrying charge = 10%, annual demand = 4000 units and ordering cost = $15 per order, the EOQ is:
A. 22 units
B. 155 units
C. 219 units
D. 300 units
Q:
Project management requires:
A. Scheduling, planning, and controlling
B. Quantitative skills
C. Behavioral skills
D. All of the above
Q:
An assumption of the PERT method is:
A. Activity times are not constant.
B. There is uncertainty in individual activity time estimates.
C. Distribution of project completion times and the probability that each activity is on the critical path can be computed.
D. All of the above
Q:
Which of the following statements about Little's Law is NOT include?
A. Little's Law cannot be applied to service operations
B. Little's Law relates the average number of units in the system to average throughput time and average flow rate
C. Little's Law includes processing and waiting time
D. Little's Law assumes that the system is in steady state
Q:
One step in process flow analysis is to describe the existing process. If a new system is being developed, (there is no existing system):
A. This step is simply omitted
B. Process flow analysis cannot be performed
C. A socio-technical design must be used
D. The analysis must include a hypothetical process for comparison
Q:
Which of the following statements regarding business process reengineering (BPR) is NOT true?
A. BPR is a term coined by Hammer and Champy in the book called "Reengineering the Corporation."
B. BPR refers to extensive process redesign.
C. BPR simplifies processes and eliminates the non-value added elements from the process.
D. BPR is synonymous to the Total Quality Management approach of process improvement.
Q:
The major difference between the service delivery system matrix and the product-process matrix is that service process design generally does not vary with customer volume.
Q:
If I denotes the average inventory in the system, T denotes the average throughput time, and R denotes the average flow rate of the system, then by Little's Law:
A. I = T/R
B. T = I + R
C. I = R/T
D. R = I/T
Q:
Which of the following is NOT an example of a high contact service?
A. Retail trade
B. Personal services
C. Business services
D. Auto repair
Q:
A service recovery process:
A. Follows every service transaction
B. Is an implicit service
C. Is rapid compensation for a service failure
D. None of the above
Q:
Which of the following are characteristics of a low-contact service delivery system?
A. Lower costs and more standardization
B. Greater flexibility, need for people who are highly skilled in interpersonal relations, and a customer orientation
C. Need for people with a high level of technical skills oriented toward efficient processing, well-defined procedures, and smooth flow
D. Both a and c
E. All of the above
Q:
What are the three areas of process selection decisions that affect environmental impact?
Q:
An example of an industry that produces a few major discrete products and uses a product layout is:
A. Commercial printer
B. Heavy equipment
C. Automotive assembly
D. Sugar refinery
Q:
The four common objectives of operations are:
A. Quality, delivery, cost, and innovation
B. Quality, cost, flexibility, and agility
C. Quality, cost, delivery, and flexibility
D. Cost, quality, capacity, and flexibility
Q:
According to Michael Porter, the generic types of business strategies include:A. Differentiation, low cost, focusB. High-price, high quality, fast deliveryC. Focus, quality, imitationD. All of the above
Q:
The transformation view of the Operations function provides a unified approach for studying the manufacturing and service industries.
Q:
As price increases and benefits remain constant, the value of a product increases.
Q:
The contemporary operations themes signify that:
A. More emphasis should be placed on manufacturing than on service industries
B. Every operation should be externally directed to meet the customers' requirements
C. Operations decisions should precede decisions in other functions in an organization
D. To be competitive, strategies for operations should exclude broader supply chain issues
Q:
Approximately, what percentage of the American workforce works in service industries?
A. 20%
B. 40%
C. 80%
D. 90%
Q:
The master production schedule for Product A shows a need for 30 units, and Product B shows a need of 25 units. To manufacture a unit of Product A, three units of component C are required. To manufacture a unit of Product B, four units of component C are required. Determine the gross requirements for component C to complete production.
A. 55
B. 190
C. 110
D. 380
E. None of the above
Q:
In MRP "scheduled receipts" are:
A. Identical to "planned order receipts"
B. Identical to "planned order releases"
C. Identical to "net requirements"
D. Open orders not delivered yet
Q:
MRP is a type of pull system.