Production and Operations Management

451. Total Quality Management emphasizes

  1. the responsibility of the Quality Control staff to identify and solve all quality-related problems
  2. a commitment to quality that goes beyond internal company issues to suppliers and customers
  3. a system where strong managers are the only decision makers
  4. a process where mostly statisticians get involved
Correct answer: (B)
a commitment to quality that goes beyond internal company issues to suppliers and customers

452. The process of identifying other organizations that are best at some facet of your operations and then modeling your organization after them is known as

  1. continuous improvement
  2. employee empowerment
  3. benchmarking
  4. copycatting
  5. patent infringement
Correct answer: (C)
benchmarking

453. When a sample measurement falls inside the control limits, it means that

  1. each unit manufactured is good enough to sell
  2. the process limits cannot be determined statistically
  3. the process output exceeds the requirements
  4. if there is no other pattern in the samples, the process is in control
Correct answer: (D)
if there is no other pattern in the samples, the process is in control

454. Which of the following has been the main driver to the globalization of business?

  1. The higher standards of living in the U.S. and Europe
  2. Technology
  3. The NAFTA trade agreement
  4. The increasing ethnic diversity within countries
  5. Improved political stability
Correct answer: (B)
Technology

455. Which of the following is not an element of the management process?

  1. pricing
  2. staffing
  3. planning
  4. controlling
  5. leading
Correct answer: (A)
pricing

456. The three major functions of business organizations

  1. are mutually exclusive
  2. exist independently of each other
  3. overlap
  4. function independently of each other
  5. do not interface with each other
Correct answer: (C)
overlap

457. Gibson Valves produces cast bronze valves on an assembly line, currently producing 1600 valves each 8-hour shift. If the productivity is increased by 10%, it would then be

  1. 180 valves/hr
  2. 200 valves/hr
  3. 220 valves/hr
  4. 880 valves/hr
  5. 1760 valves/hr
Correct answer: (C)
220 valves/hr

458. Productivity can be improved by

  1. increasing inputs while holding outputs steady
  2. decreasing outputs while holding inputs steady
  3. increasing inputs and outputs in the same proportion
  4. decreasing inputs while holding outputs steady
  5. none of the above
Correct answer: (D)
decreasing inputs while holding outputs steady

459. The 5 pillars of TQM includes product,process,system,people and ______________

  1. communication
  2. Motivation
  3. leadership
  4. resource
Correct answer: (C)
leadership

460. Which of the following is not a key function that intermediaries play in completing transactions?

  1. negotiation
  2. information
  3. negotiation
  4. financing
Correct answer: (D)
financing
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