Spring 2003 - ugba 1O Principles of Business \\./ March...

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Unformatted text preview: ugba 1O Principles of Business \\./ March 2003 mm” “153/?” Module 3 Exam: Production & Quality David Robinson ’ Make sure your family _ name comes first! Instructlons ‘ o This is an exam—please do not talk 0 Your books and notes must be put completely -. c t of sight 0 Do not open the exam until you are told t og- 0 Keep the questions when you leave a u a o ' up the next syllabus 0 You need a Scantron 882 ES or E . o .- #2 pencil; ' if you are without eith Ise your hand ‘ 0 While you are waiting to /e. . ‘11, enter the following on your Scantron: Name: LAST, First M. Subject: 1234—5678 your 'Student Identification Number Test No.: {A, B, C, or D} This is the test version~you won’t know this until \_/' ,- you open the test Date: (1, 2, etc) This module number Hour: Your Section number: (101 116) ugba-10 Module 3, Spring 03 Southern states have attracted manufacturing plants by offering generous subsidies to firms that open new plants. According to a recent Wall Street Journal article, the disadvantage(s) of these subsidies is / are: a. b. C. @ The states have engaged in bidding wars, resulting in \/ unreasonable incentives The incentives give an unfair advantage to new firms versus/ ones that are already there The subsidies reduce the states’ revenue from taxes V All of the above are true Just—in-time manufacturing has many advantages, but a recent article in the New Yorker argues, that “lean production”: @ b. c. d. Shifts risks to suppliers ‘ I Does away with the need for suppliequx Is a myth—it can’t exist in reality Has failed to show any cost savings X A well—managed supply chain will achieve all except which one of the following, according to the text? a. @ c. d. Minimize “out of stock” situations at the customer 1eve1\/ Maximize inventory throughout the system X Reduce the total time to produce items] Decrease overall costs \/ According to the Ext, high—contact service processes should be staffed to meet , whereas many firms staff low—contact services to be able to meet Q 5; (:1. Peak demand, average demand Customer capacity, system capacity System capacity, customer capacity Average demand, peak demand Total Quality Management depends on of the following, (using the wording from the textbook): a. '2: “Quality ownership” the principle that quality belongs to the person doing the job \/ “Directing for Quality” the leadership of top management “Relying on the experts” the necessity to hire outside consultants A and B A and C ugba-10 Module» 3, Spring 03 6. We observe that the time to serve customers various exponentially, with only a few people taking a very long time to serve. In the vocabulary of Service Operations, the people who take a very long time to serve are termed: 13$ Obnoxious Things gone wrong Exceptions d. Outliers 7. Which of the following is important for the concept of “Empowerment” of front—line employees? a. Ownership of problems : Training in how to resolve problems \/ Holding people accountable b C. a All of the above 8. A recent print advertisement for ADP (a payroll processing company) makes fun of an executive trying to make his own paperclips. In practice, most firms paper-clip production. a. Vertically integrate b. Horizontally integrate @ Outsource d. Insource o\o 9. All except which one of the following are advantages of the “Virtual Corporation”: \/ V39 % 1/ a. Can switch suppliers quickly b. Can respond quickly to changes in customer tastes / ‘14" Wkwe" c. Develops relationships with its customers Excels at making one type of product 10. If a firm chooses the wrong type of manufacturing process, it is likely: . a. To have difficulty in making the Sight quantity \/ b. To have Very high per-unit costs c. To produce the wrong goodsx @ A and B are correct e A and C are correct ugba-10 Module 3, Spring 03 ('11.... 1 1. You are a manager recently assigned to a project in progress. On the first day, you inspect the Gantt chart for the project and you V, notice that two tasks overlap. You conclude: a. You will have to reschedule one Of the tasks, and ask your)( boss for a delay b. You will need to find out if the tasks are to be done by the \/ same people c. There is nothing to worry about, and no need for managerial 7Q intervention ‘ d. You will definitely need to seek more funding for this project.)< ()7 12. When a project fails to meet a milestone, managers should do which of the following, according to lecture: . Remind workers of the deadlines, and ask them to try harderX _/b’.' Alert senior management at once and prepare them that thy project won’t be completed on time Reallocate resources so that the next milestone is met A"\ ,9: k/d. None of the above ‘ W 13. You are developing a PERT Chart, and your field notes indicate that task B must be completed before task C can start and also that task B must be completed before task D can start. C takes 1 unit of time, and D takes 4 units of time. Both C and D must be ‘ “Sp/mpleted before task E can begin. Which of the following is true: . V' . C is constrained by D «(3,. 3 «K D is constrained by C @ There are 3 units of slack for task C 4 d There are 3 units of slack for task D , I.» 14. Most firmgfno ‘ use large software systems that coordinate production: uppliers, and accounting. These systems are known as: a. MRP (materials requirement planning) b. MRP—II (manufacturing resource planning) g _ ERP (enterprise resource planning) ' ADP (automatic data processing) 15. In a PERT chart, the minimum time to complete theyoject is / are: \a. The sum of the times along the critical path \/ b. The sum of times for the longest tasks in each time frame The sum of times of the shortest tasks of each time frame @ A and B are correct e. A and C are correct ugba-10 Module'3, Spring 03 16. The aphorism: “Write what you do, do what you write,” is most often associated with which of the following parts of quality management: a. Ishikawa diagrams (fi) ISO 9000 certification c. The Baldrige Award d. The Deming Prize (Japan) 17. A student has a laptop that has broken down repeatedly. The manufacturer reassures him: “Don’t worry, it’s under warranty—— whatever it needs, we’ll fix it for free!” This does not delight the customer (student) because: a. It doesn’t compensate him for being without his laptop while \/ it’s being fixed \/ b. It ignores the student’s “transaction costs” c. Reliability is one of the “eight dimensions of quality’ propose by Garvin All of the above are true w—k? 18. What is most true about the quality of US manufactured goods @ It is very high, but not yet as good as for Japanese manufactured goods /b./ It’s still atrociously low, because American firms just don’t “get it” when it comes to quality c. It now surpasses the quality of Japanese goods fi/ It’s low and getting wors§< 19. You have completed data gathering (making observations) for a M quality improvement study. The next step would be: (in a. Construct a Fishbone Diagram ( ‘ Mk, Sort events observed into “things gone right/ things gone 0)}! wrong” 4” ‘ V V“ c. Draw a flow chart 2 {fir} d. Draw a Pareto Chart ' W about Quality: , \/ g a. Variation of procedures often leads yoor quality 20. Which of the following is in general not true as a general rule Q )Q/KO 6? Complexity is the enemy of Quality C , Re-work adds value I )0 Waits do not add value/ ugba-1O Module 3, Spring 03 21. What has enabled even small firms to outsource production cheaply and efficiently, according to recent business press reports? a. Widespread adoption of ERPs 69 Use of the Internet to connect suppliers to firms c. Belated adoption of TQM techniques d. None of the above 22. BART Customer Service Agents are notoriously unhelpful, perhaps due to the structure of their positions or due to the, process of selection and training. According to an article summarizing lessons on service excellence from the best firms, who would be best _to give input on redesigning the Service Agent’s job? Customer Service Agents BART Management a b. @ BART customers d. Consultants who have expertise with service operations . ' 23. In a Fishbone diagram, causes of errors (poor quality) are grouped 9? together. In a complex system, such as improving quality for the SF Muni trolley system, the purpose of these groupings is: (\ka ‘29,". a. To identify who should be firedX ’ 43‘ b. To find the machines/ equipment that break down most often .5 K To document how top-management has failedX To assign the problems to groups of workers who can com? ‘ up with improvements that reduce the number of errors ' ‘ 7., 'M ‘ I ‘.., _ ‘ “ ‘ . .m‘ ~‘»..7:.,-:‘.~.‘ 24. Joseph J uran said: “Don’t let the important many distract you from the vital few.” In TQM circles, this is often paraphrased as: . Slay the dragons first b. Pick the low—hanging fruit /2: Nothing succeeds like success 12K A good theory beats a plan of action We? 25. The Scantron machine used for this exam is old and only moderately reliable. The error rate for mis-reads has been stable (’on .3 L) for 5 years (50 exams). What would be the best way to get a amatic increase in Quality (reduction in errors)? ’ Re-engineer the exam scoring process Benchmark ourselves against other schools using 20 year— old Scantrons / Enter the Baldrige Competition % 7 Apply Statistical Process Control (SPC) ugba-10 Module 3, Spring 03 f 26. You are asked to advise SF Mayor Willie Brown on how to deal ’ with the problem the city is facing: the Public Works department is spending more than $6 million a year picking up errant shopping carts from city streets.- Which statement would you most likely make? f This is an example of the “Aesthetics of Quality,” discussed by Garvin The 80/20 rule probably applies here ISO 9000 would give us some good ideas of how to fix this one d. The problem is likely insoluble because the city is so big 27. Subway stores have a very limited menu and an efficient production process. One person makes sandwiches while the other ri gs up each order. This is an example of: Professional service &> Service factory /e./ Batch processing ' . Continuous flowmanufacturing r 28. Not every student enrolled in ugba—10 turns up to every lecture. As service managers delivering the course, we should know: /a’./ The number of people showing up is essentially random g? The number of people showing up can be predicted ~ according to the day of the week, the point in the semester and the weather c. How to reduce the demand d. How to use demand-shifting 29. W. Edwards Deming is considered the “father” of the Quality movement in the US. Which of the following is not one of his “14 points”? a. Measure everything 1/ b. Eliminate quotas / c. Always seek continuous improvement ‘2/ § The customer is always right 30. This is version C; bubble in —C— for this question and write “C” in the identification section of your Scantron. If you do not answer this question, you lose the point. No exceptions ...
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This note was uploaded on 04/02/2008 for the course BUSINESS 10 taught by Professor Robinson during the Spring '01 term at Berkeley.

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Spring 2003 - ugba 1O Principles of Business \\./ March...

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