Operations and Supply Chain Management final Exam Que & Ans

Which aspect of quality is demonstrated by a vehicle that has a useful life of 165,000 miles? - ANS Durability A quality improvement team is trying to illustrate to upper management how a process is varying over time as measurements are collected.Which two statistical process control (SPC) tools should the team use? - ANS Run charts Control charts The CEO of a service company wants to change the strategy of the company from volume sales to high-quality products. Which philosophy should the CEO implement to emphasize quality over volume? - ANS Deming's 14 points A company sells garage doors through a national retailer and contracts with local installers to complete the installations. The operations manager is responsible for completing the installations in a 14-day period after the sale. The company will be penalized financially if it fails to achieve these objectives. The operations manager's daily responsibilities include contacting installers to expedite orders and ensure deadlines are met. Which two tools should be used to measure installer performance? - ANS Control charts to measure the time elapsed to completion Run charts to chart output around the 14-day central tendency A company makes rulers that are designed to be 20 cm in length with allowance ±0.1 cm. If the actual length of a ruler is 20.2 cm, which factor will the company use to judge the quality of the length of the rulers? - ANS Conformance Which quality management philosophy uses cause-and-effect fishbone diagrams for root-cause analysis, emphasizes a bottom-up approach to quality, and considers standardization and quality control to move together in improvement? - ANS Ishikawa's quality circle Which quality management philosophy assigns cost to quality, defines quality by how well a product can be used for its intended purpose, and uses Pareto charts? - ANS Juran Institute's management theory Which quality tool examines patterns, flow, and causes of variation of data points over time? - ANS Statistical process control A vice president of a major retailer is trying to reduce the wait time for customers in the checkout line by appropriately opening checkout lines. To do this, the VP needs to know the relationship and degree of correlation between monthly customer visits and area population. Which tool should be used in this situation? - ANS Scatter plot Which two company practices reflect the guiding principles of Six Sigma? - ANS A company tries to reduce variation in the quality of products it offers. A company emphasizes the quality of suppliers because the quality of outputs are determined by the quality of inputs. Six Sigma is adopted by a manufacturing company. How can the company use Six Sigma to establish quality improvement? - ANS There should be no more than 3.4 defects per million products from a manufacturing company statistically. A clothing retailer sends out evaluations to customers to rate quality as "outstanding," "good," "average," and "bad." If the retailer wants to know the annual frequency of each evaluation category, which tool should the retailer use? - ANS Histogram A manager is planning staffing needs for a seasonal ice cream stand. The manager expects to have the following number of customers per day each month:January: 20February: 23March: 30April: 60May: 90Jun: 120July: 130August: 150September: 100October: 80November: 60December: 30Which capacity planning strategy should the manager use to achieve this customer demand? - ANS Match The original capacity in each process for a computer manufacturer's operations is as follows:Parts inventory: 500 units available per dayAssembly: 300 units assembled per dayDelivery: 450 units processed per dayAfter the computer manufacturer upgrades the assembly system, it can assemble 550 units per day.According to this information, what is the throughput for this computer manufacturer? - ANS 450 units/day A rental company has a fleet of 50 cars that can be rented daily if all vehicles have been washed and inspected and are free of mechanical and electrical defects. Due to maintenance requirements and late returns by customers, the rental company is, in general, able to prepare 45 cars per day for rental. On average, 30 cars are rented daily. What is the efficiency rate for this company? - ANS 67% An auto service center that specializes in oil changes has two service bays that serve, on average, a total of 24 cars per eight-hour business day. On average, each bay can finish one oil change in 30 minutes.What is the design capacity? - ANS 32 oil changes A company makes garage door tracks for residential and commercial customers. The production manager prefers to run all the footage for residential requirements first each day and then change over for the commercial size after the residential orders are completed. The tooling is changed back to the residential size before the end of business each day.Which process strategy is this company using? - ANS Batch processing with some product variety on moderately flexible equipment An oil refinery receives crude oil on a regular basis, which must be refined into five different octane-rated gasoline formulas and diesel. Demand for these fuels is easy to predict. The cost to refine the oil decreases rapidly depending on the size of the refinery that refines the oil. Based on this information, which process strategy should the oil refinery use in its refining process? - ANS Continuous flow A furniture company receives an order for 100 dining tables with four legs each. The planner has determined that the projected number of legs on hand is 60 units. If there is no previously scheduled production for legs, what will be the planned production of legs? - ANS 340 A computer company receives an order for 100 computers from a customer inside of its lead time. The production planner agrees to support the order. Which two outputs will the MRP system issue? Choose 2 answers - ANS Planned order receipts Expedite notice A bicycle company receives an order to deliver 200 bicycles by the end of the month. Which planning process will help this company to decide the required quantity of bicycle tires to meet the order? - ANS MRP A computer company needs to order 50 computer screens from a vendor so they can assemble 100 computers by the end of the month.What does the computer company need to know to ensure the parts arrive when they are needed? - ANS Lead time A hospital administr