Business Questions - BSOP 326 Final Exam

1.(TCO 1) Which of the following factors allowed Frederick Taylor's scientific management philosophy to work well at the turn of the 20th century? (Points : 6)

Hourly workers lacked education.
Unionization of workers did not exist.
Hand labor was dominant in manufacturing.
Production quality was of greater concern than production quantity.

Question 2. 2.(TCO 1) Which of the following stakeholders require companies to make long-term commitments to, in the context of total quality? (Points : 6)

Customers
Employees
Suppliers
All of the above

Question 3. 3.(TCO 2) Which of the following practices would NOT be found in a TQM company? (Points : 6)

Selecting a supplier based entirely on who bids the lowest price on a supply contract
Training suppliers in quality improvement methodology
Retaining suppliers that meet expectations for superior quality
Requiring suppliers to provide proof of capable processes

Question 4. 4.(TCO 2) Which of the following is NOT a purpose of final product inspection? (Points : 6)

To allow other workers to concentrate on output quantity rather than quality
To ensure that no defective items reach the customer
To discover and help resolve production problems
To judge the quality of the manufacturing

Question 5. 5.(TCO 3) In which of the following categories can companies receive a Malcolm Baldrige National Quality Award? (Points : 6)

Small business
Manufacturing
Service
All of the above

Question 6. 6.(TCO 3) ISO 9000 recertification is required every _____. (Points : 6)

three years
five years
seven years
nine years

Question 7. 7.(TCO 4) _____ considered top management's commitment to quality an absolute necessity for TQM. (Points : 6)

Deming
Crosby
Juran
All of the above

Question 8. 8.(TCO 4) The primary reason for Deming's position that slogans should be eliminated is which of the following? (Points : 6)

Most problems are a result of the system and cannot be eliminated without redesigning the system.
Slogans take up valuable space in the production department.
Slogans are costly to maintain and periodically update.
Workers don't always understand the slogans.

Question 9. 9.(TCO 5) Measurable performance levels that define the quality of customer contact with an organization's representatives are known as which of the following? (Points : 6)

Customer contact requirements
Quality function deployments
Indexed service standards
Consumer benefits packages

Question 10. 10.(TCO 5) Which of the following relates to the net present value of the customer? (Points : 6)

The cost to keep the customer minus the cost to replace the customer
The profit gained from the customer minus the cost to keep the customer
The total profits gained from the customer discounted over time
The revenue gained from the customer after deducting rebates

Question 11. 11.(TCO 6) A _____ is an approach that integrates an organization's major goals, policies, and action sequences into a cohesive whole. (Points : 6)

tactic
program
mission
strategy

Question 12. 12.(TCO 6) That the leaders develop the ability to inspire their subordinates to exert extraordinary efforts to achieve organizational goals is suggested by the _____ theory of leadership: (Points : 6)

attributional
transactional
substitutes for leadership
emotional intelligence

Question 13. 13.(TCO 7) Which of the following would not be considered a leading practice in human resource management? (Points : 6)

Promoting teamwork
Encouraging employee empowerment
Being concerned about employee motivation
Focusing on cost control

Question 14. 14.(TCO 7) GE's "Work-Out" program is an example of _____. (Points : 6)

team-based training
360 feedback
performance appraisal
employee involvement

Question 15. 15.(TCO 8) The key stages of a team's life cycle include which of the following? (Points : 6)

Forming
Storming
Adjourning
All of the above

Question 16. 16.(TCO 8) In firms that implement Six Sigma efforts, _____ are often targeted as future leaders. (Points : 6)

team members
Black belts
champions
Green belts

Question 17. 17.(TCO 9) Which of the following is not part of a process control system? (Points : 6)

Comparison of actual results with the standard
A means of measuring accomplishment
A standard or goal
A backup process

Question 18. 18.(TCO 9) All the following are reasons for high error rates in manual inspection, except for _____. (Points : 6)

high product complexity
high worker turnover
high defect rate
high inspection rate

Question 19. 19.(TCO 10) During Final Inspection at a shirt manufacturer, more than 1,500 shirts were found with incorrect buttons. The manufacturer sold the shirts at 70 percent of the normal price to a retailer who specializes in factory seconds. The revenue lost by the manufacturer is considered which of the following? (Points : 6)

An internal failure cost
An appraisal cost
An external failure cost
A prevention cost

Question 20. 20.(TCO 10) The additional labor that is used when a machined part is returned to the drilling department for rework to correct a quality problem is considered which of the following? (Points : 6)

A prevention cost
An appraisal cost
An internal failure cost
An external failure cost

Question 21. 21.(TCO 11) The Deming cycle is based on the premise that improvement comes from which of the following? (Points : 6)

The application of knowledge
Financial investment
Automation
Clearly defined numerical performance goals

Question 22. 22.(TCO 11) Which of the following was NOT illustrated by the Red Bead Experiment? (Points : 6)

Management is responsible for the system.
All the variation in the production of red beads came entirely from the process itself.
Special cause variation can be predicted.
Numerical goals are often meaningless.

Question 23. 23.(TCO 12) Which of the following constitutes an approach to reducing sampling error? (Points : 6)

Cross-checking research designs with knowledgeable analysts
Questioning the assumption that tomorrow's and today's populations are comparable
Taking a larger sample from the population
Reducing conditions that contribute to dissimilar population segments

Question 24. 24.(TCO 12) Determine the upper control limit (UCL) and lower control limit (LCL) for an X-Bar chart if six samples of subgroup size 6 (n=6) were collected, and the mean of the sample averages is 4.7 and mean of the sample ranges is 0.35. (Points : 30)

UCL = 4.86905, LCL = 4.53095
UCL = 4.90195, LCL = 4.49805
UCL = 4.72250, LCL = 4.14350
UCL = 5.05805, LCL = 4.34195

Question 25. 25.(TCO 12) Twenty samples of subgroup size 6 (n=6) were collected for a variable measurement. Determine the upper control limit (UCL) and lower control limit (LCL) for an R-chart if the mean of the sample ranges equals 4.4. (Points : 30)

UCL = 9.3016, LCL = 0.3344
UCL = 1.4696, LCL = 0.0000
UCL = 11.3256, LCL = 0.0000
UCL = 8.8176, LCL = 0.0000

Question 26. 26.(TCO 13) Which of the following are the phases of the Six Sigma problem solving approach? (Points : 6)

Define, Monitor, Analyze, Improve, Confirm

Define, Monitor, Analyze, Invest, Control

Define, Measure, Analyze, Improve, Control

Define, Measure, Analyze, Invest, Control

Question 27. 27.(TCO 14) Current research suggests leadership will have to change from: (Points : 6)

Process to position
Focus throughout the organization to a focus at the top
Power resulting from position to power resulting from knowledge
Feeling and emotional to logical and rational

1.(TCO 3) Answer the following questions concerning ISO 9000:

Discuss the basic premise behind ISO 9000. (10 points)
Discuss three of the five objectives of ISO 9000. (10 points)
Discuss the three documents that make up ISO 9000. (10 points)

3.(TCO 4) Answer the following three parts relating Peter Scholtes's observations in regard to the failure to understand Deming's Profound Knowledge, which can result in severe problems.

Discuss what happens when people do not understand variation. (10 points)
Discuss what happens when people do not understand systems. (10 points)
Discuss what happens when people do not understand psychology. (10 points
2.(TCO 14) Answer the following questions concerning cultural change and the workforce:
1. Discuss three of the five behaviors that Juran and others suggest are needed to develop quality cultural change. (10 points)
2. Discuss ownership at the workforce level and why it is important to the implementation of TQM. (10 points)
3. Discuss how increased ownership requires increased sharing of information. (10 points)

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