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Name: __________________ Class: Date: _____________

(First Page)
Name: __________________ Class: Date: _____________

(Subsequent Pages)
1.
_____ is a measure of performance that indicates how many inputs it takes to produce or create an output.
a. Accountability

b. Profitability

c. Productivity

d. Reliability
2.
Which of the following shows a correct mathematical relation between inputs, outputs, and productivity?
a. Productivity = Inputs/Outputs

b. Inputs = Outputs-Productivity

c. Productivity = Outputs/Inputs

d. Outputs = Inputs-Productivity
3.
Which of the following statements is true of productivity?
a. For companies, higher productivity can lead to lower costs.

b. For companies, higher productivity leads to lower profits.

c. Productivity is a ratio of benefits to costs.

d. A decrease in productivity makes products more affordable.

4.
_____ is a measure of performance that indicates how much of a particular kind of input it takes to produce an output.
a. Segregated productivity

b. Fractional productivity

c. Partial productivity

d. M ultifactor productivity
5.
Roger, a manager in a company that manufactures signboards, tries to determine how much glass tubing will be needed to produce a neon signboard. In
this scenario, Roger tries to determine _____.
a. fractional productivity

b. multifactor productivity

c. segregated productivity

d. partial productivity

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6.
Arthur, the production manager of a company that manufactures cutting boards, has instructed his subordinate, M elvin, to determine the quantity of
wood, labor, and electricity needed to make one maple wood cutting board. The resulting information from M elvin will help Arthur determine _____.
a. multifactor productivity

b. fractional productivity

c. partial productivity

d. differential productivity
7.
The American Society for Quality defines quality as:
a. a product or service obtained from error-free components.

b. a product or service free of deficiencies.

c. a product manufactured using eco-friendly techniques and materials.

d. a product with high benefits and low costs.

8.
A product's quality is determined by its:
a. validity, homogeneity, and efficiency.

b. popularity, validity, and effectiveness.

c. reliability, serviceability, and durability.

d. efficiency, tangibility, and homogeneity.

9.
Which of the following characteristics of product quality refers to how easy or difficult it is to fix a product?
a. Serviceability

b. Efficiency

c. Durability

d. Reliability
10.
In the context of the quality of a product, which of the following statements best defines durability?
a. It refers to how difficult it is to fix a product.

b. It refers to the ease of maintaining a working product.

c. It is defined as the mean time to a product failure.

d. It is the average time between product breakdowns.

11.
The ability to consistently perform a service well is referred to as _____.
a. serviceability

b. service responsiveness

c. service reliability

d. service validity

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12.
In the context of service quality, which of the following statements best defines responsiveness?
a. It is the ability of service providers to give information to customers.

b. It is the extent to which service providers give individual attention and care to customers' concerns.

c. It is the ability to consistently perform a service well.

d. It is the promptness and willingness with which service providers give good service.
13.
Which of the following statements best describes ISO 14000?
a. It is a series of five international standards for achieving consistency in quality management and quality assurance in companies throughout
the world.

b. It is the certificate given to manufacturers who have achieved the highest possible level of product quality and assurance.

c. It is a series of international standards for managing, monitoring, and minimizing an organization's harmful effects on the environment.

d. It is the interim ISO certification that is granted in the event that ISO 9000 certification is temporarily withdrawn.
14.
Which of the following statements is true of ISO 9000?
a. ISO 9000 certification is suspended or cancelled if previously certified companies fail to follow quality procedures.

b. The ISO 9000 standards are applicable exclusively to the manufacturing of goods and not to the delivery of services.

c. The ISO 9000 standards describe how to make a better quality car, computer, or widget.

d. ISO 9000 is the sole international standard for achieving consistency in quality management and quality assurance in companies throughout
the world.
15.
The purpose of _____ is to recognize U.S. companies for their achievements in quality and business performance and to raise awareness about the
importance of quality and performance excellence as a competitive edge.
a. ISO 14000 certification

b. ISO 9000 certification

c. the Baldrige Performance Excellence Awards

d. the Herzberg's award for excellence in quality management

16.
Which of the following is typically the most important criterion for judging a contestant for the Baldrige Award?
a. Leadership

b. Knowledge management

c. Strategic planning

d. Results
17.
Which of the following statements is true of total quality management (TQM )?
a. It is developed and monitored by the International Organization of Standards.

b. It is a specific technique used to reposition a company's product so as to justify higher prices.

c. It suggests that being socially responsible should be a company's primary goal.

d. It is characterized by customer focus and satisfaction, continuous improvement, and teamwork.

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18.
In the context of total quality management (TQM ), _____ is an organizational goal to provide products or services that meet or exceed customers'
expectations.
a. employee focus

b. employee satisfaction

c. customer focus

d. customer satisfaction
19.
Continuous improvement is achieved by:
a. inhibiting employee empowerment.

b. a flat organizational structure and a broad chain of command.

c. high deviation in the physical form of a product from the quality standard for the product.

d. a reduction in variation and higher customer satisfaction.

20.
In the context of total quality management, which of the following statements is true of variation?
a. Variation in products is necessary in order to meet quality standards.

b. Variation is inversely proportional to the quality of a product.

c. Reduction in variation is usually associated with low customer satisfaction.

d. Increase in variation is usually associated with continuous improvement.

21.
The key concept behind the service-profit chain is _____.
a. service capability

b. service recovery

c. serviceability

d. internal service quality

22.
According to the service-profit chain, which of the following leads to customer satisfaction and customer loyalty?
a. Delegation

b. Autonomy

c. High-value service

d. Customer dissonance
23.
According to the service-profit chain, which of the following leads to long-term profits and growth?
a. Customer loyalty

b. Customer dissonance

c. Providing complete autonomy to service employees

d. Increasing deviation in form of products from their quality standards

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24.
Restoring customer satisfaction to strongly dissatisfied customers is known as _____.
a. service recovery

b. customer focus

c. customer reengineering

d. service enhancement
25.
In the context of service operations, which of the following statements is true of service recovery?
a. It increases the cost of selecting and hiring service workers who are capable of solving problems and dealing with irate customers.

b. It is different from performing heroic services that far surpass the expectations of dissatisfied customers.

c. It lays emphasis on restoring employee satisfaction to strongly dissatisfied employees.

d. It can be achieved by empowering service employees to make decisions that immediately solve customer problems.
26.
In the context of manufacturing operations, the highest degree of processing occurs in _____.
a. make-to-order operations

b. assemble-to-order operations

c. make-to-stock operations

d. assemble-to-batch operations
27.
In the context of manufacturing operations, which of the following statements is true of a company using assemble-to-order operations?
a. They produce standardized products by assembling finished products before the receipt of an order.

b. They order parts and combine modules of manufacturing operations ahead of customer orders.

c. They produce highly specialized products for customers.

d. They do not start processing until they receive a customer order.

28.
Which of the following manufacturing operations is most dependent on the accuracy of sales forecasts?
a. M ake-to-order operations

b. Assemble-to-order operations

c. M ake-to-stock operations

d. Line-flow operations
29.
Which of the following statements is true of line-flow production?
a. It is flexible in nature because of its ability to change itself with respect to product configurations.

b. It is typically dedicated to manufacturing one kind of product.

c. It involves the manufacture of different types of products in small lot sizes.

d. It involves the manufacture of large batches of different products in standard lot sizes.

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30.
In the context of flexible manufacturing processes, which of the following is a difference between batch productions and job shops?
a. Unlike batch production, a job shop is typically a small manufacturing operation that handles a small lot size.

b. Unlike batch production, a job shop is typically a large manufacturing operation that handles a large lot size.

c. Unlike batch production, a job shop is a continuous manufacturing operation.

d. Unlike batch production, a job shop is an intermittent manufacturing operation.

31.
Which of the following scenarios best illustrates a job shop production?
a. Raydor, a company that sells various parts and components, performs turning, drilling, and milling of plastics and alloy steels to make fifty
different parts in a day.

b. Alvend, a company that supplies raw materials to the machinery manufacturing industry, finishes the production of hundred bolts, hundred
nuts, and two hundred shafts in two hours.

c. M ilkest, a company that sells dairy products, uses standard packaging for processed cheese.

d. Dantor, an automobile manufacturing company, performs the assembly of automobile parts in an assembly line.
32.
_____ include the basic inputs in a manufacturing process.
a. Work-in-process inventories

b. Component parts inventories

c. Average aggregate inventories

d. Raw material inventories

33.
Pamela and Co., a manufacturer of cloth dolls, receives an order of 250 dolls. For this particular project, its total inventory includes 200 yards of
fabric, 100 yards of ribbon, a box of 500 plastic eyes, 100 kilograms of cotton, 115 dolls in various stages of manufacturing, and 50 completed dolls. In
the context of this scenario, how many dolls can be considered work-in-process inventory?
a. 115

b. 85

c. 50

d. 250
34.
Which of the following is one of the basic measures of inventory?
a. Pace of obsolescence

b. Inventory depreciation

c. Inventory amortization

d. Weeks of supply
35.
Clyders Inc., an apparel manufacturer, decided to reduce its inventory by lowering prices. The plan to get rid of the excess inventory was so successful
that the company ran out of inventory in just a couple of days. In other words, the company experienced:
a. aggregated turnover.

b. a loss of amortization.

c. a stockout.

d. negative sales.

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36.
In the context of inventory costs, which of the following is considered an ordering cost?
a. The cost incurred in shipping when a company runs out of products

b. The cost associated with phone calls made to bring inventory

c. The cost of storing batteries to be used in finished products

d. The cost incurred in adjusting a machine

37.
In the context of inventory costs, which of the following is considered a setup cost?
a. The cost incurred in getting competing bids

b. The cost incurred in shipping when a company runs out of products

c. The cost incurred in adjusting a machine

d. The cost of storing raw materials to be used in finished products

38.
In the context of inventory costs, which of the following is considered a holding cost?
a. The cost incurred in shipping when a company runs out of products

b. The cost of storing batteries to be used in finished products

c. The cost of completing paperwork to order inventory

d. The cost incurred in adjusting a machine

39.
Iceaul Inc., an ice-cream manufacturer, uses 810,000 gallons of milk a year. If the ordering cost is $64 per order and holding cost is $18 per gallon, then
the optimal quantity to order milk is _____.
a. 2,400 gallons

b. 4,800 gallons

c. 3,600 gallons

d. 1,200 gallons
40.
Brickett Inc., a company that manufactures construction materials, uses 2,500 tons of steel per year to make reinforced rods. Its ordering cost is $40
per order and holding cost is $5 per ton. According to the economic order quantity (EOQ) model, approximately how often should the company place
a fresh order for steel?
a. Every 29 days

b. Every 28 days

c. Every 26 days

d. Every 27 days

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