Which of the following statements is NOT true about six sigma quality?

Which of the following statements is NOT true about six sigma quality? 

A. Six sigma corresponds to 3 standard deviations on either side of the mean
B. Six sigma is equivalent to a process capability of Cpk = 1.5
C. Motorola invented the term "six sigma quality" in the mid-80s
D. Six sigma can be applied to administrative and service processes as well
E. Six sigma results in 3.4 ppm defects


Answer: A. Six sigma corresponds to 3 standard deviations on either side of the mean

Under exponential smoothing, if we want forecasts to be very responsive to recent demand, the value of alpha should be:

Under exponential smoothing, if we want forecasts to be very responsive to recent demand, the value of alpha should be: 

A. Large
B. Small
C. Zero
D. The value of alpha does not matter.
E. Moderate


Answer: A. Large

A qualitative forecast would most likely be used for:

A qualitative forecast would most likely be used for: 

A. Process design
B. Inventory management
C. Scheduling
D. Aggregate planning


Answer: A. Process design

Which of the following is NOT part of the quality trilogy that Juran advocates?

Which of the following is NOT part of the quality trilogy that Juran advocates? 

A. Planning
B. Improvement
C. Operations
D. Control


Answer: C. Operations

Which of the following is the most important criterion (highest number of points) of the Malcolm Baldrige National Quality Award?

Which of the following is the most important criterion (highest number of points) of the Malcolm Baldrige National Quality Award? 

A. Customer focus
B. Leadership
C. Process management
D. Results
E. Measurement, analysis, and knowledge management


Answer: D. Results

The reasons for failure of quality improvement efforts include:

The reasons for failure of quality improvement efforts include: 

A. a and b
B. a, b, and c
C. Managers continue to focus on short-term financial results
D. Managers interfere with true teamwork
E. Managers instinctively blame employees when there is a quality failure


Answer: B. a, b, and c

A machining process is capable of producing a component with an average specification of 5 inches and a process standard deviation of 0.1 inch. Suppose the customer accepts the component as long as it falls between 4.8 inches and 5.2 inches, then the process capability is:

A machining process is capable of producing a component with an average specification of 5 inches and a process standard deviation of 0.1 inch. Suppose the customer accepts the component as long as it falls between 4.8 inches and 5.2 inches, then the process capability is: 

A. 1.333
B. 0.667
C. 1.5
D. 1.0
E. 4.0


Answer: B. 0.667

ABC analysis requires that inventory be classified according to:

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
E. None of the above


Answer: B. Annual dollar usage

_______ is a combination of reliability and maintainability.

_______ is a combination of reliability and maintainability. 

A. Mean time to repair
B. Field service
C. Quality of conformance
D. Warranty
E. Availability


Answer: E. Availability

Which of the following is NOT a general characteristic of a service?

Which of the following is NOT a general characteristic of a service? 

A. Production and consumption are simultaneous
B. The service cannot be stored
C. The service can be transported
D. No resale is possible


Answer: C. The service can be transported

Quality of design:

Quality of design: 

A. Is determined before production by a cross-functional product design team
B. Is one of the four decision areas of engineering
C. Is the prime responsibility of production
D. Means a product has high reliability, maintainability, and availability


Answer: A. Is determined before production by a cross-functional product design team

Estate planning would be an example of a:

Estate planning would be an example of a: 

A. Co-routed service
B. Customer-routed service
C. Provider-routed service
D. None of the above


Answer: B. Customer-routed service

With regards to suppliers, lean systems typically require:

With regards to suppliers, lean systems typically require: 

A. The lowest price possible
B. Buyer inspection of goods and materials
C. Multiple sources from which to purchase
D. Delivery of large lots at frequent intervals
E. Long-term relationships and commitments


Answer: E. Long-term relationships and commitments

An example of a service business/organization that has a high degree of customer contact, high customization, and a high degree of labor intensity is:

An example of a service business/organization that has a high degree of customer contact, high customization, and a high degree of labor intensity is: 

A. Schools
B. Law practice
C. Retailing
D. Hotels
E. Hospitals


Answer: B. Law practice

The ideal setup time for a lean system is:

The ideal setup time for a lean system is: 

A. 1 hour
B. 0 minutes
C. The time it takes the line to get ready
D. 5 minutes


Answer: B. 0 minutes

The categories for the Baldrige Award include:

The categories for the Baldrige Award include: 

A. Manufacturing companies
B. Small businesses
C. Healthcare organizations
D. All of the above


Answer: D. All of the above

|Demand - Forecast| is:

|Demand - Forecast| is: 

A. Mean absolute deviation of forecast error
B. Forecast error
C. Absolute deviation of forecast error
D. Mean absolute percentage error


Answer: C. Absolute deviation of forecast error

Which of the following statements about process quality control is NOT true?

Which of the following statements about process quality control is NOT true? 

A. Assignable cause variation is also referred as special cause variation
B. An observation outside the control limits is an example of a special cause of variation
C. Common cause variation can be eliminated from the process by removing the potential causes
D. The control limits will include 99.74% of the population under the normal probability distribution assuming that the process is in control
E. None of the above


Answer: C. Common cause variation can be eliminated from the process by removing the potential causes

If one time-series has low demand values and another has higher demand values, _____ will be an accurate way of comparing the errors for these two time-series.

If one time-series has low demand values and another has higher demand values, _____ will be an accurate way of comparing the errors for these two time-series. 

A. MAD
B. TS
C. CFE
D. MAPE
E. MSE


Answer: D. MAPE

The choice between P and Q systems should be based on:

The choice between P and Q systems should be based on: 

A. b and c- i think this is correct but the options don't make much sense (pg 389)
B. Timing of replenishment
C. Cost of the item
D. a, b, and c
E. a and b
F. Type of record keeping


Answer: A. b and c- i think this is correct but the options don't make much sense (pg 389)

___ contact services require employees with technical skills and efficient processing routines.

___ contact services require employees with technical skills and efficient processing routines. 

A. High
B. Low
C. Moderate
D. Both b and c
E. Both a and b


Answer: B. Low

Which of the following quality control sample statistics indicates a quality characteristic that is an attribute?

Which of the following quality control sample statistics indicates a quality characteristic that is an attribute? 

A. Mean
B. Standard deviation
C. Variance
D. Proportion
E. Range


Answer: B. Standard deviation

If a sales representative tells his or her manager, "I hope to sell 20% more than last year," this should be considered:

If a sales representative tells his or her manager, "I hope to sell 20% more than last year," this should be considered: 

A. A production plan
B. A performance measure
C. A goal
D. A forecast


Answer: C. A goal

Which of the following is incorrect about the cost of quality?

Which of the following is incorrect 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
E. Both b and d


Answer: B. Increasing prevention cost increases appraisal, internal and external failure costs

Average inventory under a Q system:

Average inventory under a Q system: 

A. Is set to cover average demand over lead time plus the review intervals
B. Tends to be less than under a system of periodic review at fixed internals
C. Is relatively flat in the neighborhood of the minimum
D. Is depleted at a constant rate


Answer: D. Is depleted at a constant rate

If a work center has no empty containers, the workers at the work center will do which of the following?

If a work center has no empty containers, the workers at the work center will do which of the following? 

A. Stop production
B. Produce enough inventory to meet the following day's demand
C. Continue to produce as much inventory as they can
D. Produce enough inventory to satisfy the master production schedule


Answer: A. Stop production

A service guarantee:

A service guarantee: 

A. Is like a product guarantee except that it is for a service
B. Specifies exactly what the service delivery system must provide
C. Builds loyalty
D. All of the above


Answer: D. All of the above

A Pareto chart:

A Pareto chart: 

A. Has both upper and lower specification limits
B. Shows the importance of the various types of defects that have been found
C. Is not useful when first studying a quality problem
D. Shows causes and effects of quality problems


Answer: B. Shows the importance of the various types of defects that have been found

The second step in designing a quality control system is to decide on:

The second step in designing a quality control system is to decide on: 

A. The amount of inspection to use
B. The type of measurement to be used
C. Whether to certify suppliers
D. The critical points in each of the processes where inspection is needed
E. Who should do the inspection


Answer: B. The type of measurement to be used

If an organization were having difficulty trying to get customers' opinions into the definition of quality, which of the following approaches would be most suitable?

If an organization were having difficulty trying to get customers' opinions into the definition of quality, which of the following approaches would be most suitable? 

A. ISO 9000 certification
B. TQM
C. Six-Sigma
D. Quality Function Deployment


Answer: D. Quality Function Deployment

The ability of the process to meet, or exceed, its specifications can be determined by:

The ability of the process to meet, or exceed, its specifications can be determined by: 

A. Pareto charts
B. Cause-and-effect diagrams
C. Histograms
D. Variable control charts
E. Cp index


Answer: E. Cp index

The ideal lot size for a lean system is:

The ideal lot size for a lean system is: 

A. Infinite
B. One
C. The capacity of the machine
D. Variable according to the production requirements
E. None of the above


Answer: B. One

Which of the following is incorrect about the philosophies advocated by Joseph Juran?

Which of the following is incorrect about the philosophies advocated by Joseph Juran? 

A. Juran originated the idea of the quality trilogy
B. Juran stressed the use of statistical methods to control quality
C. Juran believed that planning is an important part of quality improvement
D. Juran stressed the need to cease the dependence on inspection
E. None of the above


Answer: D. Juran stressed the need to cease the dependence on inspection

Which of the following is not required for a lean system?

Which of the following is not required for a lean system? 

A. Flexible workforce
B. Kanban pull system
C. A Type II MRP system
D. A stable master schedule


Answer: C. A Type II MRP system

The Baldrige Award criteria emphasize all of the following EXCEPT:

The Baldrige Award criteria emphasize all of the following EXCEPT: 

A. Zero defects
B. Customer focus
C. Strategic planning
D. Process management


Answer: A. Zero defects

If it takes 100 minutes to complete a circuit, demand at the next work center is 5 parts per minute, and a container will hold 20 parts, how many containers are required?

If it takes 100 minutes to complete a circuit, demand at the next work center is 5 parts per minute, and a container will hold 20 parts, how many containers are required? 

A. 20
B. 25
C. 5
D. 40


Answer: B. 25

In the basic EOQ model, if annual demand and carrying charge double, the effect on the EOQ is:

In the basic EOQ model, if annual demand and carrying charge double, the effect on the EOQ is: 

A. It doubles.
B. It increases by about 40%.
C. It is about 70% of its previous amount.
D. It is half of its previous amount.
E. It remains the same.


Answer: E. It remains the same.

A good service guarantee:

A good service guarantee: 

A. Is often an advertising gimmick
B. Has many stipulations and conditions
C. Is an honest assurance that the customer will be satisfied
D. Costs a lot


Answer: C. Is an honest assurance that the customer will be satisfied

Which of the following is NOT a use of the error estimate?

Which of the following is NOT a use of the error estimate? 

A. To monitor erratic demand observations or outliers
B. To determine when the forecasting method is no longer tracking actual demand and needs to be revised
C. To set safety stocks or safety capacity
D. To determine parameter values that provide the most accurate forecasts
E. All the above are uses of the error estimate


Answer: E. All the above are uses of the error estimate

Which of the following statements is/are true about time-series forecasting?

Which of the following statements is/are true about time-series forecasting? 

A. Time-series methods are useful for long-range forecasts.
B. Time-series methods are used to make detailed analyses of past demand patterns over time and to project these patterns forward into the future.
C. a, b, and c
D. Under time-series methods, demand can be divided into components such as average level, trend, seasonality, cycle and error.
E. The basic strategy of time-series forecasting is to identify the magnitude and form of each component based on available past data.


Answer: C. a, b, and c

The quality cycle:

The quality cycle: 

A. Produces control points and inspection techniques
B. Begins with defining customer needs
C. Applies primarily to manufacturing organizations
D. Is stated as tolerances or minimum and maximum acceptable limits


Answer: B. Begins with defining customer needs

A regression model is an example of which type of forecasting method?

A regression model is an example of which type of forecasting method? 

A. Qualitative
B. Life-cycle analogy
C. Historical analogy
D. Causal


Answer: D. Causal

_____ models are usually more accurate than ______ models for medium-to-long-range forecasts.

_____ models are usually more accurate than ______ models for medium-to-long-range forecasts. 

A. Causal, time-series
B. Time-series, qualitative
C. Qualitative, time-series
D. Qualitative, causal
E. Time-series, causal


Answer: A. Causal, time-series

Why is production leveled in a lean system?

Why is production leveled in a lean system? 

A. To increase the time for scheduled maintenance
B. To create a uniform workload on all work centers
C. To allow for production of safety stock
D. To signal the need for more parts


Answer: B. To create a uniform workload on all work centers

Which of the following statements is incorrect about managing inventory in supply chains?

Which of the following statements is incorrect about managing inventory in supply chains? 

A. In a supply chain, a single firm typically controls all of the inventories that are required while manufacturing a product.
B. Coordination among supply chain partners is essential while managing inventory across the supply chain.
C. The total cost minimization approach can be applied while managing inventory across the supply chain.
D. None of the above


Answer: A. In a supply chain, a single firm typically controls all of the inventories that are required while manufacturing a product.

Which cost is not considered part of inventory ordering costs?

Which cost is not considered part of inventory ordering costs? 

A. Transportation costs
B. Receiving costs
C. Setup costs
D. Obsolescence costs


Answer: D. Obsolescence costs

Sampling inspection by attributes:

Sampling inspection by attributes: 

A. Could be used together with process control and variable measurement as part of a quality control system
B. a, b, and c
C. Utilizes a discrete scale of measurement
D. Means each item sampled is classified as defective or not defective based on quality standards
E. a and c


Answer: B. a, b, and c

Which of the following statements is true about the Q system?

Which of the following statements is true about the Q system? 

A. It does not have a reorder point but rather a target inventory.
B. The system is completely determined by the two parameters, Q and R.
C. It does not have an EOQ because the quantity varies according to demand.
D. The order interval is fixed—not the order quantity.
E. None of the above is true.


Answer: B. The system is completely determined by the two parameters, Q and R.

Which of the following is NOT part of Deming's 14 points?

Which of the following is NOT part of Deming's 14 points? 

A. Exhort the workers to improve the quality system
B. All employees should have on the job training
C. Create constancy of purpose
D. Cease dependence on mass inspection


Answer: A. Exhort the workers to improve the quality system

The appearance of a TV cabinet that is not satisfactory is an example of:

The appearance of a TV cabinet that is not satisfactory is an example of: 

A. Variable measurement
B. Mean chart
C. Range chart
D. Attribute measurement
E. None of the above


Answer: D. Attribute measurement

Independent demand inventory consists of:

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
E. None of the above


Answer: D. Inventory whose demand is determined by market conditions outside the firm

The degree of customer contact measures:

The degree of customer contact measures: 

A. The amount of time the customer is separated from the service delivery system
B. The amount of time the customer is in the service delivery system while the service is being produced
C. The customization abilities of the service system
D. None of the above


Answer: B. The amount of time the customer is in the service delivery system while the service is being produced

Which of the following is NOT an element of the service-product bundle?

Which of the following is NOT an element of the service-product bundle? 

A. Implicit service
B. Facilitating goods
C. Explicit service
D. Value of goods/service
E. Tangible service provided


Answer: D. Value of goods/service

Under lean, the ROI is increased by:

Under lean, the ROI is increased by: 

A. An increase in revenues
B. Cost reductions
C. Fewer investments
D. Both a and b
E. Both b and c
F. a, b, and c


Answer: F. a, b, and c

A computerized inventory system checks inventory levels at the end of the week and produces suggested orders for the coming week. What kind of system is this?

A computerized inventory system checks inventory levels at the end of the week and produces suggested orders for the coming week. What kind of system is this? 

A. A continuous review system
B. A periodic review system
C. An ABC inventory system
D. A service level system


Answer: B. A periodic review system

Which of the following is NOT a measure of forecast error?

Which of the following is NOT a measure of forecast error? 

A. Mean absolute percentage error
B. Mean absolute deviation of forecast error
C. Mean square error
D. Cumulative sum of forecast error
E. Cumulative absolute deviation of forecast error


Answer: E. Cumulative absolute deviation of forecast error

Reducing setup time is important because it:

Reducing setup time is important because it: 

A. Increases available capacity
B. Increases flexibility to meet schedule changes
C. Reduces inventory
D. Both a and b
E. Both b and c
F. a, b, and c


Answer: F. a, b, and c

Mean time between failure:

Mean time between failure: 

A. Is used to measure a product's maintainability
B. Is a measure of up time/(up time + down time)
C. Is used to measure a product's reliability
D. Is used to measure a product's maintainability and availability


Answer: C. Is used to measure a product's reliability

Capacity, as opposed to inventory:

Capacity, as opposed to inventory: 

A. Is a stock of raw materials, work in process, or finished goods used to facilitate production or satisfy customer demands
B. Covers anticipated changes in demand or supply
C. Is the rate at which a stock can be depleted
D. Is all idle resources, except for material, that provide the potential to produce items


Answer: D. Is all idle resources, except for material, that provide the potential to produce items

External setup time refers to:

External setup time refers to: 

A. The time it takes workers to set up a machine during scheduled maintenance
B. The time to complete setup activities that do not require that the machine be stopped
C. The time it takes equipment vendors to set up the machine
D. None of the above


Answer: B. The time to complete setup activities that do not require that the machine be stopped

Which of the following is not an element of lean?

Which of the following is not an element of lean? 

A. Kanban pull system
B. Modularized master schedule
C. Multifunction workers
D. Perfect or nearly perfect quality
E. Small-lot production


Answer: B. Modularized master schedule

Which of the following is not an example of a high labor-intensive service?

Which of the following is not an example of a high labor-intensive service? 

A. Personal services
B. Insurance agents and service
C. Auto repair
D. Business services
E. Retail trade


Answer: E. Retail trade

SERVQUAL is measured by:

SERVQUAL is measured by: 

A. Reliability, Tangibles, Responsiveness, Empathy, and Conformance Quality
B. Responsiveness, Tangibles, Empathy, Assurance, and Reliability
C. Reliability, Tangibles, Assurance, Empathy, and Conformance Quality
D. Performance Quality, Tangibles, Responsiveness, Reliability, and Assurance


Answer: B. Responsiveness, Tangibles, Empathy, Assurance, and Reliability

Suppose that you have taken 30 samples of 200 units each and calculated the proportion defective as p = .075. What is the upper control limit for a p-chart (rounded to 4 decimals)?

Suppose that you have taken 30 samples of 200 units each and calculated the proportion defective as p = .075. What is the upper control limit for a p-chart (rounded to 4 decimals)? 

A. .2192
B. .1309
C. .7500
D. .0191


Answer: B. .1309

A paint supplier that places orders for different colors of paint for delivery at the same time should use a:

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
E. None of the above


Answer: A. P system

A process control chart:

A process control chart: 

A. Assumes that 99.74% of random variations observed will fall within an upper and lower limit
B. Represents upper and lower control limits set at ± 2 standard deviations from the center line
C. Separates the assignable cause of variation from the common cause of variation
D. Assigns causes of variation to operator, machine, or material
E. Both a and c


Answer: E. Both a and c

Of the cost elements making up total inventory cost, which is the most difficult to estimate?

Of the cost elements making up total inventory cost, which is the most difficult to estimate? 

A. Carrying costs
B. Stockout costs
C. Holding costs
D. Item cost


Answer: B. Stockout costs

Costs of inspectors, testing, testing equipment, and labs are examples of:

Costs of inspectors, testing, testing equipment, and labs are examples of: 

A. Appraisal costs
B. Improvement costs
C. Internal failure costs
D. Prevention costs
E. External failure costs


Answer: A. Appraisal costs

Which of the following is NOT a significant difference between manufacturing and service operations?

Which of the following is NOT a significant difference between manufacturing and service operations? 

A. Resale
B. Ownership transfer
C. Cost per unit
D. Customer contact
E. Transportation


Answer: C. Cost per unit

A service recovery process:

A service recovery process: 

A. Always follows a service transaction
B. Is a part of the service delivery system
C. Is the ability to compensate a service failure slowly
D. None of the above


Answer: B. Is a part of the service delivery system

Which phrase most closely describes the Delphi forecasting technique?

Which phrase most closely describes the Delphi forecasting technique? 

A. Test markets
B. Individual opinions
C. Consumer survey
D. Rounds of anonymous data collection
E. Historic data


Answer: D. Rounds of anonymous data collection

Which of the following is/are assumptions of process control?

Which of the following is/are assumptions of process control? 

A. Random variability cannot be eliminated unless the process is redesigned.
B. Common causes represent random variability.
C. Production processes are not usually found in a state of control.
D. Only a and c
E. a, b, and c


Answer: E. a, b, and c

Which of the following is NOT an assumption of the basic EOQ model?

Which of the following is NOT an assumption of the basic EOQ model? 

A. The item is a single product; there is no interaction with other products.
B. No stockouts are allowed.
C. Annual demand is constant and known.
D. Lead-time is constant and known.
E. Quantity discounts are available.


Answer: E. Quantity discounts are available.

A production center is available for 8 hours a day in a factory. It is comprised of several rotary parts, and the worker operating it is required to lubricate these rotary parts regularly each day. It takes 2 hours to remove these parts from the production center, lubricate them, and re-assemble them. The production center is not available for production during these times. The availability of the production center is:

A production center is available for 8 hours a day in a factory. It is comprised of several rotary parts, and the worker operating it is required to lubricate these rotary parts regularly each day. It takes 2 hours to remove these parts from the production center, lubricate them, and re-assemble them. The production center is not available for production during these times. The availability of the production center is: 

A. 50%
B. Cannot be computed with the given information
C. 25%
D. 40%
E. 75%


Answer: E. 75%

When should qualitative methods NOT be used?

When should qualitative methods NOT be used? 

A. When making major, costly decisions, such as facilities location
B. When it is impossible to obtain historic data
C. For short-range, repetitive decisions
D. When historic data are unreliable


Answer: C. For short-range, repetitive decisions

Which of the following is not a purpose of inventory?

Which of the following is not a purpose of inventory? 

A. To protect against uncertainties
B. To provide for transit
C. To uncouple phases of operations
D. To decrease obsolescence


Answer: D. To decrease obsolescence

For which of the following would a p-chart be used?

For which of the following would a p-chart be used? 

A. Measure the fraction defective
B. Measure the variability
C. Measure the number of defects per unit
D. Monitor dispersion in sample data
E. Measure the central tendency


Answer: A. Measure the fraction defective

Reduction of setup time is accomplished by separating internal and external setups and:

Reduction of setup time is accomplished by separating internal and external setups and: 

A. Implementing a Kanban system
B. Reducing lot sizes
C. Converting internal setup time to external setup time
D. Reducing inventory


Answer: C. Converting internal setup time to external setup time

Which cost is classified under the cost of capital?

Which cost is classified under the cost of capital? 

A. Storage cost
B. Item cost
C. Opportunity cost of investment in inventory
D. Deterioration


Answer: C. Opportunity cost of investment in inventory

The six-step quality cycle approach includes all of the following EXCEPT:

The six-step quality cycle approach includes all of the following EXCEPT: 

A. Define quality attributes on the basis of customer needs
B. Decide how to measure each attribute
C. Reward employees for quality improvement
D. Set quality standards
E. Find and correct causes of poor quality


Answer: C. Reward employees for quality improvement

The number of defects in a product would be used to measure the:

The number of defects in a product would be used to measure the: 

A. Reliability of the process
B. Conformance quality of the process
C. Repeatability of the process
D. Performance quality of the process


Answer: B. Conformance quality of the process

Which of the following is NOT a correct statement?

Which of the following is NOT a correct statement? 

A. Services are provided in a bundle of services and goods
B. The service delivery system should be designed primarily around the employees in the system
C. Low-contact services can usually be made more efficient than high-contact services
D. A service is produced and consumed simultaneously


Answer: B. The service delivery system should be designed primarily around the employees in the system

The five initiatives implemented by Motorola for achieving customer satisfaction include all of the following EXCEPT:

The five initiatives implemented by Motorola for achieving customer satisfaction include all of the following EXCEPT: 

A. Improve profitability
B. Reduce total cycle time in all activities
C. Produce products and services to a six-sigma standard
D. Reduce defects to no more than 5 defects per million actions
E. Provide a creative and cooperative workplace


Answer: D. Reduce defects to no more than 5 defects per million actions

A cause-and-effect diagram:

A cause-and-effect diagram: 

A. Identifies common causes of quality defects on its spines
B. Is often used in conjunction with a Pareto chart
C. Could be used to facilitate continuous improvement
D. Is also called a fishbone diagram
E. All of the above are true


Answer: E. All of the above are true

The time it takes a container to complete an entire circuit consists of:

The time it takes a container to complete an entire circuit consists of: 

A. Move time, time used, and wait time
B. Wait time, run time, setup time, and idle time
C. Fill time, wait time, move time, time used, and time to be returned to be filled again
D. None of the above


Answer: C. Fill time, wait time, move time, time used, and time to be returned to be filled again

Which of the following techniques are used for continuous improvement?

Which of the following techniques are used for continuous improvement? 

A. Pareto charts
B. Cause-and-effect diagrams
C. Process capability charts
D. Only a and b
E. a, b, and c


Answer: E. a, b, and c

A kanban card is used to signal that:

A kanban card is used to signal that: 

A. The next work center is stopped
B. Parts are needed by the subsequent work center
C. A machine has broken down
D. A machine is ready for preventive maintenance
E. A materials handler has run out of parts


Answer: B. Parts are needed by the subsequent work center

Which of the following are characteristics of a low-contact service delivery system?

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


Answer: D. Both a and c

Transportation cost is an example of:

Transportation cost is an example of: 

A. Carrying cost
B. Storage cost
C. Ordering cost
D. Stockout cost
E. Item cost


Answer: C. Ordering cost

A complete system of quality control:

A complete system of quality control: 

A. Must include both variable and attribute measurements
B. Involves a zero defects philosophy
C. Requires a continuous scale for measurement of defects
D. Is defined by critical control points, inspectors, measurements, costs, and other considerations


Answer: D. Is defined by critical control points, inspectors, measurements, costs, and other considerations

The principal objective of a lean system is:

The principal objective of a lean system is: 

A. Reduction of inventory
B. Improve the ROI of the firm
C. Worker participation
D. Reduction of setup times


Answer: B. Improve the ROI of the firm

A product's conformance to specifications:

A product's conformance to specifications: 

A. Determines sales price to the customer
B. Is in response to customers' needs
C. Is independent of the quality of design
D. Is defined as continuity of service to the customer


Answer: C. Is independent of the quality of design

Given that unit cost = $25, annual carrying charge = 10%, annual demand = 4000 units and ordering cost = $15 per order, the EOQ is:

Given that unit cost = $25, annual carrying charge = 10%, annual demand = 4000 units and ordering cost = $15 per order, the EOQ is: 

A. 300 units
B. 21.91 units
C. 154.92 units
D. 219.09 units


Answer: D. 219.09 units

In the basic EOQ model, if the lead time doubles, the EOQ will:

In the basic EOQ model, if the lead time doubles, the EOQ will: 

A. Decrease by half
B. Double
C. Remain the same
D. Increase, but not double
E. None of the above


Answer: C. Remain the same

Which of the following is NOT one of the most important factors in selecting a forecasting model?

Which of the following is NOT one of the most important factors in selecting a forecasting model? 

A. Data pattern
B. User and system sophistication
C. Customer sophistication
D. Data availability
E. Time and resources available


Answer: C. Customer sophistication

The carrying cost consists of the following three cost components:

The carrying cost consists of the following three cost components: 

A. Storage cost, handling cost, and obsolescence cost
B. Obsolescence cost, capital cost, and stockout cost
C. Obsolescence cost, storage cost, and capital cost
D. Capital cost, obsolescence cost, and ordering cost


Answer: C. Obsolescence cost, storage cost, and capital cost

A small company that manufactures plastic containers is attempting to select a method of forecasting yearly demand for the next 10 years. The company typically uses forecasts from sales representatives for yearly forecasts. The company has expanded its facilities, doubling capacity over the past years. Sales data for the last fifteen years are readily available. Which of the following forecasting methods would be preferred?

A small company that manufactures plastic containers is attempting to select a method of forecasting yearly demand for the next 10 years. The company typically uses forecasts from sales representatives for yearly forecasts. The company has expanded its facilities, doubling capacity over the past years. Sales data for the last fifteen years are readily available. Which of the following forecasting methods would be preferred? 

A. Qualitative
B. Econometric
C. Box-Jenkins
D. Simple exponential smoothing


Answer: A. Qualitative

The service-profit chain shows that _____ is the key to profitability.

The service-profit chain shows that _____ is the key to profitability. 

A. employee retention
B. customer satisfaction
C. customer contact
D. employee productivity
E. customer loyalty


Answer: E. customer loyalty

For production control, lean pull systems are best suited for:

For production control, lean pull systems are best suited for: 

A. Repetitive manufacturing
B. Job shop production
C. Semi-repetitive batch manufacturing
D. None of the above


Answer: A. Repetitive manufacturing

A method of forecasting that best describes the flows from one sector of the economy to another is called:

A method of forecasting that best describes the flows from one sector of the economy to another is called: 

A. Econometric model
B. Time-series model
C. Simulation model
D. Input-output model
E. Regression


Answer: D. Input-output model

Unlike the requirements philosophy of inventory management, the replenishment philosophy:

Unlike the requirements philosophy of inventory management, the replenishment philosophy: 

A. Applies to raw materials inventories
B. Is appropriate given independent demand
C. Causes demand to be dependent
D. Calls for orders based on higher-level items


Answer: B. Is appropriate given independent demand

Which of the following is not included in internal service quality?

Which of the following is not included in internal service quality? 

A. Workplace design
B. Product design
C. Job design
D. Employee recognition
E. Employee selection


Answer: B. Product design

Which of the following is NOT a characteristic of service operations?

Which of the following is NOT a characteristic of service operations? 

A. The buyer can perform part of the production
B. Product cannot be stored
C. Intangible output
D. Ownership is transferred at time of purchase
E. No resale is possible


Answer: D. Ownership is transferred at time of purchase

Which of the quality gurus advocated that organizations should drive out fear from the employees?

Which of the quality gurus advocated that organizations should drive out fear from the employees?

A. Ishikawa
B. Crosby
C. Deming
D. Juran
E. Taguchi


Answer: C. Deming

Lean emphasizes all of the following except:

Lean emphasizes all of the following except: 

A. Setup time reductions
B. Cross training of workers
C. Increased utilization of machines
D. Supplier development
E. Lot size reduction
F. Elimination of waste


Answer: Increased utilization of machines

What did General Mills do to integrate family considerations into its operations?

What did General Mills do to integrate family considerations into its operations? 

A) Established an on-site infant care center.
B) Established on-site health care services.
C) Offered exercise classes at the company's health and fitness center.
D) All of the above.


Answer: All of the above.

Which of the following is (are) true about child care programs?

Which of the following is (are) true about child care programs? 

A) They help reduce employee absenteeism and tardiness.
B) They aid in recruiting by improving the company's image.
C) They help retain talented employees.
D) All of the above.


Answer: All of the above.

According to one study, approximately how many businesses run some sort of flexed schedule:

According to one study, approximately how many businesses run some sort of flexed schedule: 

A) Twenty percent
B) Fifty percent
C) Sixty percent
D) Eighty percent


Answer: Eighty percent

What percentage of Fortune 500 companies have diversity programs to promote sensitivity and awareness?

What percentage of Fortune 500 companies have diversity programs to promote sensitivity and awareness? 

A) 25 percent.
B) 50 percent.
C) 75 percent.
D) 90 percent.


Answer: 75 percent.

Which of the following is an action that companies should take to manage diversity effectively?

Which of the following is an action that companies should take to manage diversity effectively? 

A) Only recruit at primarily minority colleges.
B) Set up a diversity council to monitor the company's goals.
C) Replace existing workers with ethnically diverse workers.
D) All of the above.


Answer: Set up a diversity council to monitor the company's goals.

Which of the following is not a benefit of managing diversity effectively?

Which of the following is not a benefit of managing diversity effectively? 

A) These businesses get tax breaks from the federal government.
B) These businesses can often more effectively serve customers.
C) These businesses are better able to attract and retain workers from a variety of backgrounds.
D) None of the above. Each of these is a benefit of managing diversity effectively.


Answer: These businesses get tax breaks from the federal government.

About what percent of incidents of sexual harassment are never reported?

About what percent of incidents of sexual harassment are never reported? 

A) 20 percent.
B) 40 percent.
C) 65 percent.
D) 90 percent.


Answer: 65 percent.

Sexual harassment applies to:

Sexual harassment applies to: 

A) Only men who are being harassed.
B) Only women who are being harassed.
C) Either men or women who are being harassed.
D) Only attractive employees who are being harassed.


Answer: Either men or women who are being harassed.

In a 2009 case involving Frank Rizzo, the Supreme Court held that:

In a 2009 case involving Frank Rizzo, the Supreme Court held that:

A) Affirmative Action is Constitutional.
B) Reverse discrimination is Constitutional.
C) A city can discard test scores if they lead to a discriminatory result.
D) You cannot discriminate against a person solely because he is white.


Answer: You cannot discriminate against a person solely because he is white.

Which of the following is true about the ADA:

Which of the following is true about the ADA: 

A) It was passed in 1992.
B) Discrimination against someone with AIDs Is prohibited.
C) Despite its passage, the percentage of disabled Americans has not changed.
D) Businesses have complained about the cost of compliance.


Answer: Businesses have complained about the cost of compliance.

Which of the following is not true about the Equal Employment Opportunity Commission (EEOC)?

Which of the following is not true about the Equal Employment Opportunity Commission (EEOC)? 

A) It is charged with enforcing federal equal employment opportunity laws and executive orders.
B) It was created in 1964.
C) It monitors foreign governments' employment practices.
D) It was given added enforcement powers in 1972 and 1990.


Answer: It monitors foreign governments' employment practices.

The Equal Employment Opportunity Commission was created in:

The Equal Employment Opportunity Commission was created in: 

A) 1932.
B) 1964.
C) 1972.
D) 1990.


Answer: 1964.

Which of the following government rules on equal treatment of employees does not apply to businesses?

Which of the following government rules on equal treatment of employees does not apply to businesses? 

A) Discrimination on the basis of race, color, religion, sex, national origin, disability or age is prohibited in all employment practices.
B) Government contractors must have written positive affirmative action plans to overcome the past and present effects of discrimination in their work force.
C) Women and men must receive equal pay for performing equal work.
D) Affirmative action plans must be permanent.


Answer: Affirmative action plans must be permanent.

How many people are employed by female headed businesses?

How many people are employed by female headed businesses? 

A) 11 million
B) 13 million
C) 16 million
D) 19 million


Answer: 13 million

How do "glass walls" differ from "glass ceilings?"

How do "glass walls" differ from "glass ceilings?" 

A) They don't; they are the same thing.
B) Glass walls do not exist, only glass ceilings are real.
C) Glass walls apply to mid- and lower-level women managers.
D) Glass walls focus on sideways promotions in the organization.


Answer: Glass walls focus on sideways promotions in the organization.

"Glass walls" refers to:

"Glass walls" refers to: 

A) Fewer opportunities for upward advancement.
B) Fewer opportunities to move sideways into jobs that lead to the top.
C) Reliance on word of mouth by recruiters for top positions -- "the old boys' network" from which women are excluded.
D) A company's lack of commitment to diversity.


Answer: Fewer opportunities to move sideways into jobs that lead to the top.

The first African American to lead a major US company was

The first African American to lead a major US company was 

A) Beyonce Knowles
B) Ursula Burns
C) Sandra Franklin
D) Kelly Washington


Answer: Ursula Burns

Which of the following is not true about occupational segregation?

Which of the following is not true about occupational segregation? 

A) It concentrates women in traditionally female-dominated jobs.
B) The pay gap in American businesses persists, in part, because of it.
C) White men have traditionally help most of the high paying jobs in a position.
D) The large pay gap for Hispanic workers partly reflects their concentration in several high-paying occupations.


Answer: The large pay gap for Hispanic workers partly reflects their concentration in several high-paying occupations.

Women have entered the workforce:

Women have entered the workforce: 

A) For income to support their families.
B) Due to the inadequacies of retirement plans and health care programs.
C) To sustain an accustomed standard of living.
D) All of the above.


Answer: All of the above.

Which of the following is NOT an adjective used to describe Millenials?

Which of the following is NOT an adjective used to describe Millenials? 

A) Collaborative
B) Pragmatic
C) Technologically Savvy
D) Globally Networked


Answer: Pragmatic

Women working outside the home rose dramatically just after:

Women working outside the home rose dramatically just after: 

A) World War I.
B) World War II.
C) The Korean War.
D) The Vietnam War.


Answer: World War II.

By 2016, the Bureau of Labor Statistics estimates that what percentage of all workers will be women?

By 2016, the Bureau of Labor Statistics estimates that what percentage of all workers will be women? 

A) 25 percent.
B) 36 percent.
C) 47 percent.
D) 58 percent.


Answer: 47 percent.

Age, ethnicity, gender, mental or physical abilities, race, and sexual orientation are what dimensions of diversity?

Age, ethnicity, gender, mental or physical abilities, race, and sexual orientation are what dimensions of diversity? 

A) Primary.
B) Secondary.
C) Tertiary.
D) None of the above.


Answer: Primary.

The variation in the important human characteristics that distinguish people from one another is called:

The variation in the important human characteristics that distinguish people from one another is called: 

A) Workforce.
B) Diversity.
C) Difference.
D) Affirmative action.


Answer: Diversity.

The growing diversity in the U.S. workforce is due to:

The growing diversity in the U.S. workforce is due to: 

A) More women working than ever before.
B) Immigration has reshaped the workplace.
C) An aging workforce.
D) All of the above.


Answer: All of the above.

Under the Family Medical Leave Act, companies that employ 50 or more people must grant unpaid, job-protected leaves for up to 12 weeks to employees with serious family needs, including the birth or adoption of a baby.

Under the Family Medical Leave Act, companies that employ 50 or more people must grant unpaid, job-protected leaves for up to 12 weeks to employees with serious family needs, including the birth or adoption of a baby. 

A) True
B) False


Answer: True

Roughly half of all mothers hold jobs in the United States.

Roughly half of all mothers hold jobs in the United States. 

A) True
B) False


Answer: False

A diversity council is a group of managers and employees responsible for developing and implementing specific action plans to meet an organization's diversity goals.

A diversity council is a group of managers and employees responsible for developing and implementing specific action plans to meet an organization's diversity goals. 

A) True
B) False


Answer: True

More sexual harassment complaints are filed than sexual harassment cases.

More sexual harassment complaints are filed than sexual harassment cases. 

A) True
B) False


Answer: True

Racial Discrimination is illegal under Title 11 of The Civil Rights Compact.

Racial Discrimination is illegal under Title 11 of The Civil Rights Compact. 

A) True
B) False


Answer: False

It is believed that 40 to 70 percent of working women have told researchers that they have been sexually harassed on the job.

It is believed that 40 to 70 percent of working women have told researchers that they have been sexually harassed on the job. 

A) True
B) False


Answer: True

Under the 1996 McGruff Act, sexual harassment is limited to overt acts of individual coworkers or supervisors.

Under the 1996 McGruff Act, sexual harassment is limited to overt acts of individual coworkers or supervisors. 

A) True
B) False


Answer: False

Affirmative action occurs when one group is unintentionally discriminated against in an effort to help another group.

Affirmative action occurs when one group is unintentionally discriminated against in an effort to help another group. 

A) True
B) False


Answer: False

The agency charged with enforcing equal opportunity laws and executive orders in the United States is the ADC.

The agency charged with enforcing equal opportunity laws and executive orders in the United States is the ADC. 

A) True
B) False


Answer: False

Beginning on a major scale in the 1960s, U.S. presidents issued executive orders and Congress enacted laws intended to promote equal treatment of employees.

Beginning on a major scale in the 1960s, U.S. presidents issued executive orders and Congress enacted laws intended to promote equal treatment of employees. 

A) True
B) False


Answer: True

Slightly more than 9 million U.S. women were working as managers by the late 2000s.

Slightly more than 9 million U.S. women were working as managers by the late 2000s. 

A) True
B) False


Answer: True

The pay gap for Hispanic women declined by almost five percent since 2000.

The pay gap for Hispanic women declined by almost five percent since 2000.

A) True
B) False


Answer: True

The pay gap refers to the inequitable concentration of a group, such as minorities or women, in a particular job category.

The pay gap refers to the inequitable concentration of a group, such as minorities or women, in a particular job category.

A) True
B) False


Answer: False

Today the U.S. workforce is as diverse as it has ever been.

Today the U.S. workforce is as diverse as it has ever been. 

A) True
B) False


Answer: True

The term diversity refers to variation in the important human characteristics that distinguish people from one another.

The term diversity refers to variation in the important human characteristics that distinguish people from one another. 

A) True
B) False


Answer: True