1. Value added services include all of the following except:

A. Information

B. Problem solving

C. Sales support

D. Scientific management

_____2. Which is considered a component of productivity strategy?

1. Improve cost structure
2. Improve asset utilization
3. Both A and B
4. Neither A nor B

_____ 3. The Garden Caf made and sold 238 veggie pizzas last Saturday night. They employed two kitchen preparation employees and one cashier and two waitresses who together worked a total of 30 hours during Saturday night. Total labor productivity is:

A. 238

B. 7.93

C. 0.13

D. 71.40

_____ 4. A company may differentiate itself in the marketplace by:

1. Product leadership
2. Customer intimacy
3. Operational excellence
4. All of the above

______ 5. Which is an impact on competitiveness of quality?

1. Responsiveness to customers and competitors
2. Quality of design - close to market
3. Number of projects - freshness and breadth of line
4. Reputation - customer loyalty

_____ 6. Services differ from manufacturing in all the following ways except:

A. Customers typically interact directly with the service delivery process.

B. Consumption and production take place simultaneously.

C. Services are intangible.

1. Services can be stored.

_____ 7. A fashion designer has fixed costs of $300,000 on the latest production of fall handbags and a variable cost per bag of $8.00.The handbags wholesale for $23 each.How many bags must be sold to wholesalers to break even?

1. 20,000
2. 30,000
3. 24,000
4. 184,000

_____ 8. Which of the following is not a category for Malcolm Baldrige Awards?

A. Manufacturing

B. Service

C. Small Business

D. Heath Care

E. All of the above are Malcom Baldrige categories.

_____ 9. Reasons to outsource include:

A. To increase costs

B. To reduce investments in assets

C. To focus on new and different areas or activities

D. To increase investments in assets

E. All of the above

_____ 10. The first step in building the "house of quality" is to:

A. Ask the customer to compare the company's product to those of competitors.

B. Develop a set of technical characteristics.

C. Rank requirements in order of importance.

D. Develop a list of customer requirements for the product.

_____ 11. To enable the pull process of "just-in-time" lean manufacturing, to operate

effectively,

A. Quality must be high at each stage of the process.

B. The manufacturing facility needs strong vendor relations.

C. Demand for the end product should be predictable.

D. All of the above must be in place.

_____12. Forecasting by multiple regression is appropriate when:

A. A number of factors might influence a variable.

B. Demand is constant.

C. Data on variables is nonexistent.

D. Computer program packages for forecasting are not available.

_____13. Which of the following is not a major reason for the acceptance of exponential smoothing techniques?

A. Exponential models are surprisingly inaccurate.

B. Formulating an exponential model is easy.

C. The user can understand how the model works.

D. There is very little computation required.

_____ 14. Commercial printing shops, machine tool shops, and plants that make custom-designed printed circuit boards are examples of:

1. Batch shop
2. Job shop
3. Assembly Line
4. Continuous Flow

_____ 15. When the Pareto Principle is applied to inventory systems, we can conclude that twenty percent of the items account for what percent of the value of the inventory.

A. 50 percent

B. 60 percent

C. 80 percent

D. 90 percent