1. The problem of quality control is:
   a. One of designing specifications for a quality control system
   b. To ensure that specifications are met by operations during production
   c. Applying statistical methods to manufacturing
   d. The conflict between internal and external inspectors
2. Sampling inspection by attributes:
   a. Means each item sampled is classified as good or defective based on quality standards
   b. Can be used together with process control and variable measurement as part of a quality control system
   c. Utilizes a discrete scale of measurement
   d. A & C
   f. All of the above
3. A process control chart:
   a. Assumes that 99.74% of random variations observed will fall within an upper and lower limit
   b. Represents upper and lower control limits set at± 2 standard deviations from the center line
   c. Separates the assignable cause of variation from the common cause of variation
   d. Assigns causes of variation to operator, machine, or material
   f. A & C
4. Which of the following statements is not true about six-sigma quality?
   a. Six-sigma results in 3.4 ppm defects
   b. Six-sigma is equivalent to a process capability of Cpk = 1.5
   c. Six-sigma corresponds to 3 standard deviations on either side of the mean
   d. Six-sigma can be applied to administrative and service processes as well
   e. Motorola invented the term “six-sigma quality” in the mid-80s
5. Attribute control occurs when the product characteristic is measured on a continuous scale.
   T/F
6. The seven tools of quality control are equally applicable to both manufacturing and service industries.
   T/F
7. Six-sigma projects are typically managed by full-time black belts.
   T/F
8. The planning, design, and control of the sequence of business processes, information and materials from the suppliers through manufacturing and distribution to the customer is:
   a. Demand management
   b. Distribution channel management
   c. Supply chain management
   d. Logistics management
9. The average cash-to-cash cycle is defined as:
   a. Days in inventory + Days in account receivable + Days in accounts payable
   b. Days in inventory – Days in account receivable + Days in accounts payable
   c. Days in inventory + Days in account receivable – Days in accounts payable
   d. Days in inventory – Days in account receivable – Days in accounts payable
   e. None of the above
10. Which of the following is NOT true of vertical integration?
    a. Leads to greater flexibility
    b. Can result in loss of economies of scale
    c. Helps achieve control of the supply chain
    d. Reap profits of the supplier or distributor when there is an attractive return from investment
11. Which of the following is not a form of structural change of the supply chain?
    a. Forward and backward integration
    b. Changes to information systems
    c. Major process redesign
    d. Outsourcing logistics to a third party
    e. Major process simplification
12. Which of the following is a way to improve the infrastructure in the supply chain?
    a. Forward and backward integration
    b. Major process simplification
    c. Setup time reduction
    d. Major product redesign
    e. Outsourcing logistics to a third party
13. The objective of infrastructure change is the same as structural change: To remove sources of uncertainty, to reduce replenishment time, and to reduce total cost of supplying the market.
    T/F
14. In supply chain improvement it is often necessary to dramatically reduce the setup time of equipment so that smaller lots of the product can be economically produced.
    T/F
15. A qualitative forecast would most likely be used for:
    a. Aggregate planning
    b. Scheduling
    c. Process design
    d. Inventory management
16. If a sales representative tells his or her manager, “I hope to sell 20% more than last year,” this should be considered to be:
    a. A forecast
    b. A performance measure
    c. A goal
    d. A production plan
17. 26. All forecasts must include two estimates: An estimate of the demand and an estimate of the forecasting error.
    T/F
18. Facilities decisions:
    a. Are medium-range capacity decisions
    b. Should consider the four crucial questions independently
    c. Constrain all other capacity decisions
    d. Require only planning for one year
19. The level workforce strategy differs from the chase demand strategy in that:
    a. Labor skill level required is high
    b. Variations in demand are absorbed by inventory rather than changes in the workforce size
    c. Budgeting and forecasting are done only over the short-run
    d. Amount of supervision required is low
20. Which of the following is not a factor affecting the elements of a facilities strategy?
    a. Cost of facilities
    b. Likely behavior of competitors
    c. Business strategy
    d. Whether the company uses make-to-stock or assemble-to-order
    e. International considerations
21. One way of leveling the demand during the off-peak season is by employing a differential pricing strategy.
    T/F
22. Aggregate Planning assumes that the facility decisions are made and cannot be changed for a given product.
    T/F
23. Aggregate planning and scheduling differ in that:
    a. The former ensures capacity is efficiently used whereas the latter is the acquisition of resources
    b. The former makes estimates of costs, demand, and service levels desired while the latter concurrently allocates the needed resources
    c. The former is first in the hierarchy of capacity planning decisions and the latter is last
    d. The former deals with acquiring resources and the latter deals with allocating resources
24. According to Goldratt:
    A. An hour lost at the bottleneck is an hour lost in the entire system
    b. A product coming out of a non-bottleneck is precious and should not be wasted
    c. Maximizing the efficiency of all resources would generate money for the company
    d. Utilization, Productivity, and Operating Expenses are the three vital metrics of a process
25. Scheduling systems need not answer which of the following questions?
    a. What delivery date do I promise?
    b. How much will the schedule cost?
    c. When should I start each particular activity or task?
    d. How do I make sure that the job is completed on time?

Essay questions

1. Explain what is ISO standards
2. Explain what is a Malcolm Baldrige award
3. Once Fig 9.2 Chart is established how soul you use it to accept or reject order
4. Explain the difference between a chase strategy and a level strategy
5. Explain batch processing and how to prevent bottlenecks at work stations.
6. …

1. The problem of quality control is:
   a. One of designing specifications for a quality control system
   b. To ensure that specifications are met by operations during production
   c. Applying statistical methods to manufacturing
   d. The conflict between internal and external inspectors
2. Sampling inspection by attributes:
   a. Means each item sampled is classified as good or defective based on quality standards
   b. Can be used together with process control and variable measurement as part of a quality control system
   c. Utilizes a discrete scale of measurement
   d. A & C
   f. All of the above
3. A process control chart:
   a. Assumes that 99.74% of random variations observed will fall within an upper and lower limit
   b. Represents upper and lower control limits set at± 2 standard deviations from the center line
   c. Separates the assignable cause of variation from the common cause of variation
   d. Assigns causes of variation to operator, machine, or material
   f. A & C
4. Which of the following statements is not true about six-sigma quality?
   a. Six-sigma results in 3.4 ppm defects
   b. Six-sigma is equivalent to a process capability of Cpk = 1.5
   c. Six-sigma corresponds to 3 standard deviations on either side of the mean
   d. Six-sigma can be applied to administrative and service processes as well
   e. Motorola invented the term “six-sigma quality” in the mid-80s
5. Attribute control occurs when the product characteristic is measured on a continuous scale.
   T/F
6. The seven tools of quality control are equally applicable to both manufacturing and service industries.
   T/F
7. Six-sigma projects are typically managed by full-time black belts.
   T/F
8. The planning, design, and control of the sequence of business processes, information and materials from the suppliers through manufacturing and distribution to the customer is:
   a. Demand management
   b. Distribution channel management
   c. Supply chain management
   d. Logistics management
9. The average cash-to-cash cycle is defined as:
   a. Days in inventory + Days in account receivable + Days in accounts payable
   b. Days in inventory – Days in account receivable + Days in accounts payable
   c. Days in inventory + Days in account receivable – Days in accounts payable
   d. Days in inventory – Days in account receivable – Days in accounts payable
   e. None of the above
10. Which of the following is NOT true of vertical integration?
    a. Leads to greater flexibility
    b. Can result in loss of economies of scale
    c. Helps achieve control of the supply chain
    d. Reap profits of the supplier or distributor when there is an attractive return from investment
11. Which of the following is not a form of structural change of the supply chain?
    a. Forward and backward integration
    b. Changes to information systems
    c. Major process redesign
    d. Outsourcing logistics to a third party
    e. Major process simplification
12. Which of the following is a way to improve the infrastructure in the supply chain?
    a. Forward and backward integration
    b. Major process simplification
    c. Setup time reduction
    d. Major product redesign
    e. Outsourcing logistics to a third party
13. The objective of infrastructure change is the same as structural change: To remove sources of uncertainty, to reduce replenishment time, and to reduce total cost of supplying the market.
    T/F
14. In supply chain improvement it is often necessary to dramatically reduce the setup time of equipment so that smaller lots of the product can be economically produced.
    T/F
15. A qualitative forecast would most likely be used for:
    a. Aggregate planning
    b. Scheduling
    c. Process design
    d. Inventory management
16. If a sales representative tells his or her manager, “I hope to sell 20% more than last year,” this should be considered to be:
    a. A forecast
    b. A performance measure
    c. A goal
    d. A production plan
17. 26. All forecasts must include two estimates: An estimate of the demand and an estimate of the forecasting error.
    T/F
18. Facilities decisions:
    a. Are medium-range capacity decisions
    b. Should consider the four crucial questions independently
    c. Constrain all other capacity decisions
    d. Require only planning for one year
19. The level workforce strategy differs from the chase demand strategy in that:
    a. Labor skill level required is high
    b. Variations in demand are absorbed by inventory rather than changes in the workforce size
    c. Budgeting and forecasting are done only over the short-run
    d. Amount of supervision required is low
20. Which of the following is not a factor affecting the elements of a facilities strategy?
    a. Cost of facilities
    b. Likely behavior of competitors
    c. Business strategy
    d. Whether the company uses make-to-stock or assemble-to-order
    e. International considerations
21. One way of leveling the demand during the off-peak season is by employing a differential pricing strategy.
    T/F
22. Aggregate Planning assumes that the facility decisions are made and cannot be changed for a given product.
    T/F
23. Aggregate planning and scheduling differ in that:
    a. The former ensures capacity is efficiently used whereas the latter is the acquisition of resources
    b. The former makes estimates of costs, demand, and service levels desired while the latter concurrently allocates the needed resources
    c. The former is first in the hierarchy of capacity planning decisions and the latter is last
    d. The former deals with acquiring resources and the latter deals with allocating resources
24. According to Goldratt:
    A. An hour lost at the bottleneck is an hour lost in the entire system
    b. A product coming out of a non-bottleneck is precious and should not be wasted
    c. Maximizing the efficiency of all resources would generate money for the company
    d. Utilization, Productivity, and Operating Expenses are the three vital metrics of a process
25. Scheduling systems need not answer which of the following questions?
    a. What delivery date do I promise?
    b. How much will the schedule cost?
    c. When should I start each particular activity or task?
    d. How do I make sure that the job is completed on time?

Essay questions

1. Explain what is ISO standards
2. Explain what is a Malcolm Baldrige award
3. Once Fig 9.2 Chart is established how soul you use it to accept or reject order
4. Explain the difference between a chase strategy and a level strategy
5. Explain batch processing and how to prevent bottlenecks at work stations.
6. …