OM Exam 2

Question 1

____-based: better performance, more features. “quality is designed by the customer”

Answer 1

user-based

Question 2

____-based: specific and measurable attributes of the product

Answer 2

product-based

Question 3

____-based: conformance to standards, right the first time

Answer 3

manufacturing-based

Question 4

reducing the potential for defects

Answer 4

prevention costs

Question 5

evaluating products, parts, and services (inspection)

Answer 5

appraisal costs

Question 6

producing defective parts or service before delivery

Answer 6

internal failure

Question 7

defects discovered after delivery

Answer 7

external failure

Question 8

Stakeholders who are affected by the production and marketing of poor quality products include

Answer 8

stockholders, employees, customers

Question 9

ISO 9000 seeks standardization in terms of

Answer 9

procedures to manage quality

Question 10

the four M’s of cause and effect graphs

Answer 10

material, machinery/equipment, manpower, and methods

Question 11

Pareto charts are used to

Answer 11

organize errors, problems, or defects

sorts the “vital view” from the “trivial many”

Question 12

Up to three standard deviations above or below the centerline is the amount of variation that statistical process control allows for

Answer 12

natural variation

Question 13

The type of inspection that classifies items as being either good or defective is

Answer 13

attribute inspection

Question 14

X charts monitor variance in

Answer 14

central tendency

Question 15

R-charts monitor variance in

Answer 15

dispersion

Question 16

the process central line is the

Answer 16

average of sample means

Question 17

The statistical process chart used to control the number of defects per unit of output is the

Answer 17

c-chart

Question 18

strategies for improving productivity in services are

Answer 18

separation, self-service, automation, scheduling, training, modules, focus, postponement

Question 19

low volume, high variety process

Answer 19

process focus

Question 20

what is sometimes referred to as rated capacity

Answer 20

expected output

Question 21

is the capacity a firm expects to achieve given current operating constraints

Answer 21

effective capacity

Question 22

is the maximum theoretical output of a system

Answer 22

design capacity

Question 23

Supply chain savings exert ____ leverage as the firm has a lower net profit margin.

Answer 23

more

Question 24

buyers form longer term relationships with _____ suppliers

Answer 24

fewer

Question 25

What negotiation model has the supplier open their books to purchaser?

Answer 25

cost-based price model

Question 26

what negotiation model has price based on published, auction, or indexed price?

Answer 26

market-based price model

Question 27

what negotiation model is used for infrequent purchases but may make establishing long-term relationships difficult?

Answer 27

competitive bidding

Question 28

waterways are used when shipping cost is _____ important than speed

Answer 28

more

Question 29

practice of moving a business process to a foreign country but retaining control of it.

Answer 29

offshoring

Question 30

the practice of procuring from external sources services or products that are normally part of an organization.

Answer 30

outsourcing

Question 31

A firm that outsources its internal business activities

Answer 31

client firm

Question 32

states that you should allow another firm to perform work activities for your company if that company can do it more productively than you can.

Answer 32

comparative advantage

Question 33

Outsourcing is simply an extension of the long-standing practice of

Answer 33

subcontracting

Question 34

Attribute inspection measures

Answer 34

if the product is good or bad