Quality Management Exam Solutions
Course Introduction
Quality Management explores the principles, methodologies, and tools necessary to ensure that products and services meet or exceed customer expectations. This course examines concepts such as Total Quality Management (TQM), Six Sigma, and continuous improvement, highlighting how they contribute to organizational excellence and competitiveness. Students will learn about quality planning, control, assurance, and improvement processes across various industries. Emphasis will be placed on leadership, teamwork, process analysis, and the use of data-driven decision-making to solve quality-related challenges, preparing students to implement and manage effective quality systems in diverse professional settings.
Recommended Textbook Decision Sciences and Operations Management Coursemate 4th Edition by David A. Collier
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Chapter 1: Goods, Services, and Operations Management
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Sample Questions
Q1) Many business-to-business manufacturers think of the physical good they produce as peripheral to their service offerings.
A)True
B)False
Answer: True
Q2) Which one of the following has the lowest goods content?
A)automobile muffler replacement
B)computer diagnosis and repair
C)movie presentation
D)fast food restaurant
Answer: C
Q3) Time-based competition means providing new and innovative products that surprise and delight customers.
A)True
B)False
Answer: False
Q4) A product that typically lasts at least three years is called a durable good.
A)True
B)False
Answer: True
Page 3
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Chapter 2: Value Chains
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Sample Questions
Q1) The organization that outsources still retains ownership of the outsourced process or function.
A)True
B)False
Answer: False
Q2) The organization that outsources still retains ownership of the outsourced process or function.
A)True
B)False Answer: False
Q3) Global value chains face higher levels of risk and uncertainty, requiring more inventory and day-to-day monitoring to prevent product shortages.
A)True
B)False Answer: True
Q4) Forward integration might include acquiring a customer.
A)True
B)False Answer: True
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Chapter 3: Measuring Performance in Operations
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Sample Questions
Q1) A manufacturer of business copier workstations has a 75 percent customer retention rate. Their accounting department estimates the incremental contribution to profit and overhead as 40 percent. Customers purchase the workstations every three years at an average cost of $1,500.00. Determine the average value of a loyal customer.
Answer: VLC = P*CM*RF*BLC VLC = 1500)0.4)1/3)1/.25) = $800
Q2) In regard to the value chain model, efficiency, cost and cycle time would be most related to A)suppliers
B)inputs
C)value creation processes
D)outputs and outcomes
Answer: C
Q3) Empathy is the caring attitude and individualized attention provided to customers.
A)True
B)False
Answer: True
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Chapter 4: Operations Strategy
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Sample Questions
Q1) With regard to the three types of attributes customers use in evaluating the quality of goods and services, a vacation would best be classified as high in
A)Search attributes
B)Experience attributes
C)Credence attributes
D)Competitive advantage attributes
Q2) Families of goods or services having similar characteristics or methods of creation are called
A)Core competencies
B)Corporate strategy
C)Strategic business units
D)Functional strategy
Q3) What is the difference between corporate, business and functional strategy?
Q4) Operations design choices include all of the following except
A)Operating plans and controls
B)Type of processes
C)Value chain integration and outsourcing
D)Inventory and service capacity
Q5) What do we mean by core competencies?
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Chapter 5: Technology and Operations Management
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Sample Questions
Q1) CRM helps firms gain competitive advantage by all of the following except
A)providing real-time transaction processing
B)segmenting markets
C)tracking sales trends and advertising effectiveness
D)identifying which customers should be the focus of targeted marketing initiatives
Q2) E-Service refers to using the Internet and technology to provide services that create and deliver time, place, information, entertainment and exchange value to customers and/or support the sale of goods.
A)True
B)False
Q3) Bar code scanners are examples of soft-technology.
A)True
B)False
Q4) An integrated operating system can readily be transferred among different industries.
A)True
B)False
Q5) List some of the key issues that organizations face in using technology.
Q6) What are some of the benefits and challenges of technology?
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Chapter 6: Goods and Service Design
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Sample Questions
Q1) Explain the importance of service recovery and service guarantees.
Q2) Explain the concept of Design for Manufacturability DFM).
Q3) A kiosk at an airport that allows passengers to check their baggage would be an example of a lean servicescape environment.
A)True
B)False
Q4) Service recovery is the process of correcting a service upset and satisfying the customer.
A)True
B)False
Q5) Quality Function Deployment QFD) starts with
A)Competitive evaluation
B)Technical requirements
C)Voice of the customer
D)Technical requirement priorities
Q6) The House of Quality shows the interrelationships between any pair of technical features.
A)True
B)False
Q7) Discuss the concept of Design for Environment DfE).
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Chapter 7: Process Selection, Design, and Analysis
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Sample Questions
Q1) Ships, weddings and estate planning are examples of ____ goods and services
A)Make-to-order
B)Assemble-to-order
C)Make-to-stock
D)Continuous flow
Q2) A legal defense preparation is an example of a project.
A)True
B)False
Q3) A bottleneck is the work activity that effectively limits throughput of a process.
A)True
B)False
Q4) What are some management strategies to improve process designs?
Q5) Define reengineering. How does it differ from other approaches to process improvement?
Q6) A custom machine shop is able to process 25 orders per day. The average processing time is 4 days. What is the average number of orders that are in process at any time?
Q7) Explain why the product-process matrix does not transfer well to services.
Q8) Explain Little's Law and how it can be used.
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Chapter 8: Facility and Work Design
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Sample Questions
Q1) Explain assembly line balancing. Discuss the three types of information needed to balance an assembly line.
Q2) Which of the following is not a common approach for designing process layouts?
A)CRAFT
B)ALDEP
C)NIOSH
D)CORELAP
Q3) Describe approaches used for process layout design.
Q4) An assembly line with 28 activities is to be balanced. The total amount of time required for all 28 activities is 39 minutes. The longest activity is 2.2 minutes and the shortest is 0.8 minutes. The line will operate for 450 minutes per day. What is the assembly line efficiency with 11 stations and a product produced every 5 minutes?
Q5) Ergonomics is the science that is concerned with determining specific job tasks and responsibilities.
A)True
B)False
Q6) List the many questions that must be addressed in designing a workstation.
Q7) Discuss four reasons for conducting a facility-layout study.
Q8) Discuss the advantages and disadvantages of utilizing virtual teams.
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Chapter 9: Supply Chain Design
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Sample Questions
Q1) ____ is the process of delaying product customization until the product is closer to the customer at the end of a supply chain.
A)Postponement
B)Sourcing
C)Deferral
D)Multisite management
Q2) The basic purpose of a supply chain is to coordinate communication among employees and customers in order to maximize customer satisfaction.
A)True
B)False
Q3) Which is true regarding a responsive supply chain?
A)Demand is stable and predictable.
B)Product life cycles are short and change often because of innovation.
C)Customers require standardization.
D)Contribution margins are low.
Q4) Large order sizes and frequent price changes will reduce the bullwhip effect in a supply chain.
A)True
B)False
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Chapter 10: Capacity Management
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Sample Questions
Q1) Which of the following is not a key consideration in long-term capacity strategy?
A)Equipment sharing
B)Initial investment in facilities and equipment
C)Annual cost of operating and maintaining facilities and equipment
D)Opportunity loss incurred from lost sales and reduced market share
Q2) The capacity expansion approach that provides the most safety capacity is
A)One large capacity increase
B)Small capacity increases that match demand
C)Small capacity increases that lead demand
D)Small capacity increases that lag demand
Q3) In service organizations, capacity is more often viewed as ____
A)The maximum rate of output per unit time
B)Units of resource availability
C)The ability to meet any customer demand
D)The amount of overtime scheduled
Q4) Economies of scale occur when the average unit cost of the good or service begins to increase as the capacity and/or volume of throughput increases.
A)True
B)False
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Chapter 11: Forecasting and Demand Planning
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Sample Questions
Q1) Regular patterns in a data series that take place over long periods of time are called
A)Trends
B)Seasonal patterns
C)Cyclical patterns
D)Irregular variation
Q2) Another name for planning horizon is time bucket.
A)True
B)False
Q3) Describe some of the issues that managers must consider in applying forecasting methods in practice.
Q4) An R<sup>2</sup> of 0.70 mean 30% of the variability in the dependent variable was explained by the independent variable.
A)True
B)False
Q5) In a regression model, both the dependent and independent variables must be numerical.
A)True
B)False
Q6) Explain how forecasting is used at different levels of an organization.
Page 13
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Chapter 12: Managing Inventories
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Sample Questions
Q1) Which one of the following statements is true?
A)The EOQ is most accurate when both inventory and order costs are estimated on a full cost basis.
B)The EOQ is most accurate when both inventory and order costs are estimated on a pure variable cost basis.
C)The EOQ is most accurate when inventory costs are estimated on a full cost basis while order costs are estimated on a pure variable cost basis.
D)The EOQ is most accurate when inventory costs are estimated on a pure variable cost basis while order costs are estimated on a full cost basis.
Q2) Stochastic demand inventory models are easier to analyze and solve than deterministic models.
A)True
B)False
Q3) Summarize the characteristics of the inventory environment that management considers when developing an inventory management system.
Q4) Explain the difference between independent demand and dependent demand.
Q5) Explain the different types of inventories maintained throughout a value chain.
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Page 14
Chapter 13: Resource Management
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Sample Questions
Q1) ____ are the total demand for an item derived from all of its parents.
A)Planned order releases
B)Gross requirements
C)Scheduled receipts
D)Planned order receipts
Q2) Assigning people to tasks, setting priorities for jobs and scheduling equipment fits best with which level of the generic framework for resource planning?
A)Aggregate planning - Level 1
B)Disaggregation - Level 2
C)Execution - Level 3
D)Capacity requirements planning
Q3) Increasing the output rate without changing existing resources is an example of demand management.
A)True
B)False
Q4) A company currently has no items in inventory. The demand for the next four months is 200, 400, 250 and 350 units. Assuming a level production rate of 250 units per month, determine the month in which a backorder will materialize.
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Chapter 14: Operations Scheduling and Sequencing
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Sample Questions
Q1) In practice, whenever processing times of a set of jobs are about equal, managers typically use a first-come, first-serve rule.
A)True
B)False
Q2) High flow times reduce WIP inventory.
A)True
B)False
Q3) Scheduling and sequencing methods used in manufacturing are more beneficial in low-contact, than high-contact, service processes.
A)True
B)False
Q4) Give at least five examples of service organizations and employee type) where, due to high variability in customer demand, staff scheduling problems are prevalent.
Q5) Explain the three categories of criteria used to evaluate job sequencing performance. For each category, provide two example measures.
Q6) Staff scheduling attempts to match available personnel with the needs of the organization by performing what four steps?
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Page 16
Chapter 15: Quality Management
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Sample Questions
Q1) Empathy relates to the "knowledge and courtesy of service providers and their ability to convey trust and confidence."
A)True
B)False
Q2) Which of the following is not directly related to W. Edwards Deming?
A)Quality leads to a sustainable market
B)Quality is free
C)Higher quality leads to higher productivity and lower cost
D)Plan, Do, Study, Act
Q3) Corporate sponsors who support Six Sigma activities are typically called "black belts."
A)True
B)False
Q4) Over the last year, 1,100 oral medications were administered at a health clinic. Quality is measured by the proper amount of dosage and the use of the correct drug. In three 3) instances, the incorrect amount was given, and in two 2) instances, the wrong drug was selected. What is the epmo metric?
Q5) Define Six Sigma and explain the key concepts used to implement a Six Sigma quality initiative.
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Chapter 16: Quality Control and Spc
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Sample Questions
Q1) Regarding special cause variability, all are true except
A)Disrupt the random patterns of common cause variation
B)Arises from external sources that are not inherent in the process
C)Appear sporadically
D)Hard to detect using statistical methods
Q2) Over-adjusting a process that is in control will usually increase the variation in the output.
A)True
B)False
Q3) To account for the process centering, a two-sided capability index is often used.
A)True
B)False
Q4) Indications in a control chart of an out-of-control situation include all of the following except
A)Six or seven consecutive points that increase or decrease in value
B)About the same number of points above and below the center line
C)There are points outside control limits
D)There are no more points near the center line than there are close to the control limits
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Chapter 17: Lean Operating Systems
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Sample Questions
Q1) Lean operating systems seek to apply the principles of continuous flow to the production of discrete parts by reducing batch size, ideally to a size of one.
A)True
B)False
Q2) A company is using Kanban containers. There are two adjacent work centers, a downstream using) and an upstream producing) one. The using work center has a production rate of 200 parts per day and each container holds 20 parts. It takes .5 days for a container to make the entire cycle from the time it leaves the upstream center until it is returned, filled with production, and leaves again. The manager wants a safety factor \(\alpha\)) of 20%. The company is interested in reducing the number of containers.
a. What is the number of containers currently in use?
b. If the number of parts a container holds is increased to 24 parts, how many containers are needed?
c. If the company wants the number of containers holding 20 parts each) to be 5, what must the safety factor become?
Q3) Define lean enterprise and the four principles of lean operating systems.
Q4) Contrast batching with single-piece flow.
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Chapter 18: Project Management
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Sample Questions
Q1) Explain the purpose of Gantt charts.
Q2) Explain the role of the project managers and some principles for success.
Q3) In a matrix organization, functional managers may be reluctant to provide the resources and employees, and the employees assigned to projects may relegate a project to a lower priority than their daily functional job.
A)True
B)False
Q4) Strong leadership is an impediment to project management success because of the team-based nature of most projects.
A)True
B)False
Q5) Define a project. Give some non-manufacturing or non-construction examples.
Q6) Activity times must be estimated from historical data of similar work tasks to provide realism for a project.
A)True
B)False
Q7) Project managers need to be specialists, not generalists.
A)True
B)False
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Chapter 19: Work Measurement, Learning Curves, and Standards
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Sample Questions
Q1) Explain the concept of learning curves using an 80% learning curve as an example.
Q2) For work sampling, p will never be known exactly since it is the population parameter that is being estimated.
A)True
B)False
Q3) Based on data from a work sampling study, an office worker spends 21.5% of his time filing. Over the work sampling period, he was idle 12% of the time. If the worker filed 420 items in a 40-hour work week while performing other activities, and if his performance rating factor for filing was 0.95, determine the standard time, in minutes, that it took him to file an item.
Q4) Discuss several factors that can affect the application of the learning curve or experience curve and/or the amount of learning that occurs.
Q5) How do predetermined standards differ from time studies?
Q6) Define work sampling. Give both manufacturing and service applications.
Q7) Normal time needs to be adjusted for personal time and avoidable delays. A)True
B)False
Q8) Differentiate between an experience curve and the traditional learning curve.
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Chapter 20: Queuing Analysis
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Sample Questions
Q1) By using two-servers for airport check-ins instead of one, the imputed cost of waiting goes up.
A)True
B)False
Q2) ____ is the use of a criterion that allows new arrivals to displace members of the current queue and become the first to receive service.
A)Shortest Processing Time SPT)
B)A random queue discipline
C)Preemption
D)A reservation
Q3) Since most service times follow an exponential distribution, there is no need to collect data on actual service times.
A)True
B)False
Q4) The arrival rate in queuing formulas is expressed as:
A) a fraction of the service rate
B) arrivals per unit of time
C) total number of arrivals
D) average time between arrivals
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Chapter 21: Modeling Using Linear Programming
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Sample Questions
Q1) Deciding on how much of each grade of gasoline to produce is an example of the linear programming model for blending applications.
A)True
B)False
Q2) Solutions to a linear programming model that satisfy all constraints are referred to as optimal.
A)True
B)False
Q3) X<sub>1</sub>, X<sub>2</sub> \(\ge\) 0 refers to
A)Feasibility
B)Maximization
C)Production-rate changes
D)Non-negativity
Q4) If for a given (month overtime units O<sub>t</sub>) = under-(time units
U<sub>t</sub>),
A)Non-negativity would not allow this
B)Only possible with subcontracting
C)There was no over- or under-time
D)Will work if one is positive and the other is negative in the same magnitude
Q5) Explain the essence of a blending problem.
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Chapter 22: Simulation
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Sample Questions
Q1) Discuss a simulator. How does it differ from simulation software such as ProcessModel?
Q2) Under what situation would an analytical queuing model be used? When would a simulation model be used?
Q3) Which of the following is not correct regarding next-event simulation models?
A)Used more commonly in practice
B)Basis for most commercial simulation software
C)Waste computer time
D)More accurate than fixed-time-increment simulation
Q4) Define simulation and give some operations management examples.
Q5) 'Balking' means a customer finds the wait while in line too long and thus leaves the line.
A)True
B)False
Q6) Validation consists of all of the following except
A)Developing a model with high face validity
B)Validating model assumptions
C)Developing logical flow charts
D)Validating model output
Q7) Discuss three advantages and three disadvantages of simulation models.
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Chapter 23: Work Measurement, Learning Curves, and Standards
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Sample Questions
Q1) Uncertainty refers to not knowing what will happen in the future. Which of the following least applies to uncertainty?
A)Usually does not involve a sequence of decisions
B)Little or no data available
C)Some data is very expensive
D)Some data is time-consuming to obtain
Q2) An aggressive or risk-taking approach to one-time decisions without probabilities is called maximin.
A)True
B)False
Q3) The expected value of a decision alternative cannot be negative.
A)True
B)False
Q4) Which of the following is not a similarity between a decision matrix and a decision tree?
A)Time
B)States of nature
C)Alternatives
D)Probabilities
Q5) Define the four major elements of a decision problem.
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