Question1
Which one of the following statements about total quality management (TQM) is TRUE?
Select one:
a. Total quality management reduces the internal failure costs but not the external failure costs.
b. In total quality management, workers have the authority to stop a production line if they see quality problems.
c. Total quality management means inspectors are responsible for finding out who makes the defects.
d. Total quality management reduces the external failure costs but not the internal failure costs.

Question2
What is one reason that Six Sigma is more difficult to apply to service processes?
Select one:
a. There is no manual that suggests how Six Sigma can be applied to services.
b. The work product is more difficult to see.
c. There is no way to measure process capability of a service product.
d. The National Six Sigma Society cautions against using it for services.
Question3
Which of the following items would be considered as a prevention cost of quality?
Select one:
a. Issuing a recall of defective product before another customer is injured.
b. Performing a 24 hour burn-in on every item produced to make sure it works before it is shipped.
c. Training workers to perform their jobs.
d. Running a functional test on each item before it is boxed for shipment.

Question4
Which one of the following statements relating to quality is FALSE?
Select one:
a. A distribution of sample means has less variance than the process distribution itself.
b. A sampling plan is best for evaluating quality when inspection costs are high and destructive testing is required.
c. The distribution of sample means can be approximated by the normal distribution.
d. Sampling procedures based on measurement by variables should be used when quality specifications are complex.
Question5
Which of the following statements about the capacity cushions is FALSE?Select one:
a. Companies that have highly uncertain demand tend to have larger capacity cushions.b. Small capacity cushions are used extensively in capital intensive firms.
c. Companies that have high worker flexibility tend to have larger capacity cushions.
d. Companies that have considerable customization tend to have larger capacity cushions.
Question6
Which one of the following statements about the wait-and-see capacity strategy is FALSE?
Select one:
a. reduces the risk of overexpansion based on overly optimistic demand forecasts.
b. lags behind demand.
c. meet capacity shortfalls with overtime, temporary workers, subcontracting, and stockouts.
d. minimizes the chance of lost sales due to insufficient capacity.

Question7
The King Company is producing two types of products: A and B. Both products are produced on the same machining operation. The machines operate on two 8-hour shifts, 5 days per week, and 50 weeks
per year. The manager wants to maintain a 20 percent capacity cushion. The demand forecast, batch sizes, processing times, and setup times are given in the below table. What is the minimum number
of machines needed to meet demand?
Product A

Product B

Demand forecast (units/yr)

150,000

180,000

Batch size (units/batch)

100

40

Processing time (hr/unit)

0.3

0.15

Setup time (hr/batch)

1

1.2

Select one:
a. 24
b. 25
c. 19
d. 22
Question8
A production line that produces protein bars operates 7 days per week,with three 8-hour shifts per day. The line was designed to produce bars at a rate of 800 per hour. Last week the line produced 120,000 bars.What is the utilization of this production line?
Select one:
a. Less than 80%
b. Greater than 90%
c. Greater than 85%, but less than 90%
d. Greater than 80%, but less than 85%

Question9
The manager of a grocery store in the retirement community of Sunnyville is interested in providing good service to the senior citizens who shop in her store. Currently, the store has a separate checkout
counter for senior citizens. On average, 25 senior citizens per hour
arrive at the counter, according to a Poisson distribution, and are
served at an average rate of 30 customers per hour, with exponential
service times characteristics. On average, how long does a senior
citizen wait in line before being served?
a. More than 10 minutes, but less than 12 minutes
b. 10 minutes
c. More than 12 minutes
d. 8 minutes
Question10
A company makes four products that have the following
characteristics: Product A sells for $50 but needs $10 of materials and
$15 of labor to produce; Product B sells for $75 but needs $30 of
materials and $15 of labor to produce; Product C sells for $100 but
needs $50 of materials and $30 of labor to produce; Product D sells for
$150 but needs $75 of materials and $40 of labor to produce. The
processing requirements for each product on each of the four
machines are shown in the table.
Work centers W, X, Y, and Z are available for 40 hours per week and
have no setup time when switching between products. Market demand
for each product is 80 units per week. Using the bottleneck method, in
what sequence should products be scheduled for production? The
bottleneckmethodrefers to maximizing the contribution margin per
minute at the bottleneck for each product.
Processing Time (min/unit)
Work Center

A

B

C

D

W

6

1

3

12

X

9

7

4

8

Y

4

5

11

9

Z
Select one:
a. B,D,C,A
b. A,B,D,C
c. C,D,B,A
d. D,B,A,C

10

4

7

11