OM 300 Final Exam Questions
with 100% Complete Solutions
What is a prevention cost? - Answer-Costs associated with reducing the potential for
defective parts or services (Example: training, quality improvement programs)
What is an appraisal cost? - Answer-Costs related to evaluating products, processes,
parts, and services. (Example: testing, labs, inspectors)
What are internal failure costs? - Answer-Costs that result from production of defective
parts or services before delivery to customers. (Example: rework, scrap, downtime)
What are external failure costs? - Answer-Costs that occur after the delivery of defective
parts or services. (Example: rework, returned goods, liabilities, lost goodwill, costs to
society)
What is TQM? - Answer-TOTAL QUALITY MANAGEMENT.
Management of an entire organization so that it excels in all aspects of products and
services that are important to the customer.
What is Six Sigma? - Answer-A program designed to reduce defects to help lower
costs, save time, and improve customer satisfaction.
What is Continuous Improvement? - Answer-Every aspect of an operation can be
improved. The end goal is perfection, which is never achieved but always sought.
What is Employee Empowerment? - Answer-Involving employees in every step of the
production process.
(research suggests 85% of quality problems come from materials and processes... not
employee performance)
What is Benchmarking? - Answer-The process of comparing an organization's
processes, products, and/or performance metrics against industry best practices or
leading competitors to identify areas for improvement.
What are the steps for developing benchmarks? - Answer-1. Determine what to
benchmark
2. Form a benchmark team
3. Identify benchmarking partners
4. Collect and analyze benchmarking information
5. Take action to match or exceed the benchmark
, What is JIT? - Answer-Just-In-Time: Systems designed to produce or deliver goods just
as they are needed.
In what three ways is JIT related to quality? - Answer-- JIT cuts the cost of quality.
(Scrap, rework, inventory investment, and damage costs are directly related to inventory
on hand. Because their is less inventory on hand with JIT, costs are lower.)
- JIT improves quality. (Shrinks lead time and creates an early warning system for
quality problems.)
- Better quality means less inventory and a better, easier-to-employ JIT system.
What is Statistical Process Control? - Answer-A method used to monitor and control a
process by taking measurements and implementing corrective actions to maintain
product or service quality during production.
What is a process strategy? - Answer-An organization's approach to transforming
resources into goods and services.
The objective is to create a process that can produce offerings that meet customer
requirements within cost and other managerial constraints.
What are the four factors of process strategy? - Answer-a. Process Focus
b. Repetitive Focus
c. Product Focus
d. Mass Customization
What is process focus (process strategy)? - Answer-A production facility organized
around processes to facilitate low-volume, high-variety production.
Examples: Projects, Job Shops (Machine, Print, Hospitals, Restaurants)
What is repetitive focus (process strategy)? - Answer-The classic assembly line. Widely
used in the assembly of virtually all automobiles and household appliances, it has more
structure and consequently less flexibility than a process-focused facility.
What is the product focus (process strategy)? - Answer-When facilities are organized
around their products.
They are also called continuous processes because they have very long, continuous
production runs. Products such as glass, paper, tin sheets, lightbulbs, bear, and potato
chips are made via a continuous process.
What is the mass customization focus (process strategy)? - Answer-A rapid, low-cost
production of goods and services that fulfill unique customer desires.
What is Capacity? - Answer-The "throughput," or the number of units a facility can hold,
receive, store, or produce in a given time.
with 100% Complete Solutions
What is a prevention cost? - Answer-Costs associated with reducing the potential for
defective parts or services (Example: training, quality improvement programs)
What is an appraisal cost? - Answer-Costs related to evaluating products, processes,
parts, and services. (Example: testing, labs, inspectors)
What are internal failure costs? - Answer-Costs that result from production of defective
parts or services before delivery to customers. (Example: rework, scrap, downtime)
What are external failure costs? - Answer-Costs that occur after the delivery of defective
parts or services. (Example: rework, returned goods, liabilities, lost goodwill, costs to
society)
What is TQM? - Answer-TOTAL QUALITY MANAGEMENT.
Management of an entire organization so that it excels in all aspects of products and
services that are important to the customer.
What is Six Sigma? - Answer-A program designed to reduce defects to help lower
costs, save time, and improve customer satisfaction.
What is Continuous Improvement? - Answer-Every aspect of an operation can be
improved. The end goal is perfection, which is never achieved but always sought.
What is Employee Empowerment? - Answer-Involving employees in every step of the
production process.
(research suggests 85% of quality problems come from materials and processes... not
employee performance)
What is Benchmarking? - Answer-The process of comparing an organization's
processes, products, and/or performance metrics against industry best practices or
leading competitors to identify areas for improvement.
What are the steps for developing benchmarks? - Answer-1. Determine what to
benchmark
2. Form a benchmark team
3. Identify benchmarking partners
4. Collect and analyze benchmarking information
5. Take action to match or exceed the benchmark
, What is JIT? - Answer-Just-In-Time: Systems designed to produce or deliver goods just
as they are needed.
In what three ways is JIT related to quality? - Answer-- JIT cuts the cost of quality.
(Scrap, rework, inventory investment, and damage costs are directly related to inventory
on hand. Because their is less inventory on hand with JIT, costs are lower.)
- JIT improves quality. (Shrinks lead time and creates an early warning system for
quality problems.)
- Better quality means less inventory and a better, easier-to-employ JIT system.
What is Statistical Process Control? - Answer-A method used to monitor and control a
process by taking measurements and implementing corrective actions to maintain
product or service quality during production.
What is a process strategy? - Answer-An organization's approach to transforming
resources into goods and services.
The objective is to create a process that can produce offerings that meet customer
requirements within cost and other managerial constraints.
What are the four factors of process strategy? - Answer-a. Process Focus
b. Repetitive Focus
c. Product Focus
d. Mass Customization
What is process focus (process strategy)? - Answer-A production facility organized
around processes to facilitate low-volume, high-variety production.
Examples: Projects, Job Shops (Machine, Print, Hospitals, Restaurants)
What is repetitive focus (process strategy)? - Answer-The classic assembly line. Widely
used in the assembly of virtually all automobiles and household appliances, it has more
structure and consequently less flexibility than a process-focused facility.
What is the product focus (process strategy)? - Answer-When facilities are organized
around their products.
They are also called continuous processes because they have very long, continuous
production runs. Products such as glass, paper, tin sheets, lightbulbs, bear, and potato
chips are made via a continuous process.
What is the mass customization focus (process strategy)? - Answer-A rapid, low-cost
production of goods and services that fulfill unique customer desires.
What is Capacity? - Answer-The "throughput," or the number of units a facility can hold,
receive, store, or produce in a given time.
