1) In any operation, variability can be buffered by all except: a) Time b) Capacity c) Cost reduction programs d) Inventory e) None of the above
2) A process control chart: a) Assumes that 99.74% of special cause variation will fall between upper and lower limits b) Has upper and lower control limits set at ± 2 standard deviations from the center line c) Separates the special cause of variation from the common cause of variation d) Assigns causes of variation to operator, machine, or material
3) According to Senge, all are true except a) It is fairly easy for company’s to fall into the trap of the “The Boiled Frog Parable” b) Many times, a manager that appears to be proactive may actually behave in a tacit reactive manner c) Good managers can notice gradual processes that could be a longer term threat d) Business teams often tend to work effectively and collaboratively and solve tough business problems e) All are true
4) The average global output of an dependent system with variation will always be: a) Equal to average output of its local operations b) Totally unpredictable c) Will be less than the average output of its local operations d) Greater than average output of its components e) None of the above
5) A company states that it’s primary goal is to increase customer service. Which of the following are necessary conditions? I. Customer satisfaction II. Employee satisfaction III. Profit requirements IV. Government regulatory compliance a) I and III b) II and IV c) II, III and IV d) All
6) Baumol’s disease predictions include all except: a) Prices of health will relatively rise b) Prices of college tuition will relatively rise c) Wage for luxury personal-service jobs will likely relatively rise d) Wages for ordinary personal- service jobs will increase dramatically e) All are true predictions