Six Sigma Question Paper

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MGT 561 - Operations Management
Exam B

Student Name: ____________________________Date: _________

Operations and Productivity (each question is worth 1 point)

1) Manufacturing and service organizations differ chiefly because manufacturing is goods-oriented and service is act-oriented.
TrueFalse

2) Operations, marketing, and finance need to function independently of each other in most organizations if they are to be truly effective as an organization.
TrueFalse

3) “How much inventory of this item should we have?” is within the critical decision area of quality management?
TrueFalse

4) Customer interaction is often high for manufacturing processes, but low for services.
TrueFalse

5) Productivity is the total value of outputs produced divided by the total value of all inputs to the transformation process.
TrueFalse

The operations function includes which of the following activities. a) forecasting
b) capacity planning
c) scheduling
d) managing inventories
e) all of the above

Manufacturing-related jobs are decreasing in America for which of the following reasons. a) global competition
b) technology advances
c) because manufacturing workers in California earn $25K/yr less than service workers d) a and b
e) b and c

Which of the following is not a typical service attribute?
a) easy to store
b) intangible product
c) customer interaction is high
d) simultaneous production and consumption
e) difficult to resell

Operations Strategy in a Global Environment (each question is worth 1 point)

One reason to globalize is to learn to improve operations.
TrueFalse

10) Decisions that involve what is to be made and what is to be purchased fall under the heading of supply chain management.
TrueFalse

The use of a SWOT analysis is only applicable to manufacturing organizations?
TrueFalse

The product life cycle phases include introduction, growth, maturity, and decline.
TrueFalse

Which of the following is true about business strategies?
a) an organization should maintain its strategy for the life of the business b) all firms within an industry will adopt the same strategy c) well defined missions make strategy development much easier d) strategies are formulated independently of SWOT analysis

e) organizational strategies depend on operations strategies

The ability of an organization to produce services that, by utilizing the consumer’s five senses, have some uniqueness in their characteristics is a) mass production
b) time-based competition
c) differentiation
d) flexible response
e) experience differentiation

Which of the following is the best example of competing on low-cost leadership? a) a firm produces its product with less raw material waste than its competitors b) a firm offers more reliable products than its competitors c) a firm’s products are introduced into the market faster than its competitors d) a firm advertises less than its competitors

Which of these is not one of the characteristics of high return on investment organizations? a) high product quality
b) high capacity utilization
c) low investment intensity
d) low direct cost per unit
e) global location

Design of Goods and Services (each question is worth 1 point)

Studies confirm that firms considered to be industry leaders typically generate 15-20 percent of their overall sales from new products released over the last 5 years. True False

18) QFD stands for quality for development.
True False

Value analysis focuses on design improvement during production.
True False

20) The analysis tool that helps determine what products to develop, and by what strategy, by listing products in descending order of their individual dollar contribution to the firm is
a) decision tree analysis
b) pareto analysis
c) breakeven analysis
d) product-by-value analysis...
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