Chapter 3 Controlling Processes

10. Which of the following is FALSE regarding statistical sampling for control purposes?

a) The more samples are taken, the higher the likelihood of accidentally selecting a sample with excessive values when the process actually is still under control

b) Deciding what indicators are high or low enough to be considered out of control is the simplest of the problems facing operation managers

c) Measuring upper and lower control limits are the basis for management by exception

d) Using high thresholds for control increases the risk of not detecting processes that are getting out of control

11. Which of the following is NOT a step in constructing control charts?

a) Initial samples of the process to be monitored need to be taken

b) Means and ranges for the samples must be calculated

c) Deriving the means by the ranges previously calculated

d) Graphing sample means and ranges chronologically

12. Which of the following distributions can best represent the number-of-defects c chart?

a) Dichotomous

b) Poisson

c) Binomial

d) Chi square

13. Which of the following characteristics makes it EASIER to measure the quality of a service, relative to that of a product or facilitating good?

a) Service portions are abstract, rather than concrete

b) Service portions are transient, rather than permanent

c) Service portions are psychological, rather than physical

d) None of the above characteristics make it easier to measure service quality

14. Among the best-known companies that use customer satisfaction surveys to evaluate service quality in various industries is:

a) J.D. Power and Associates

b) McDonald’s

c) American Express

d) Alaska Airlines

15. Service defections are important in process control for services because:

a) No advertising is necessary to get the business of long-term customers

b) They are equally important to organizations that produce tangible outputs

c) A customer who takes their business elsewhere is analogous to a product defect

d) Long-time customers are more likely to purchase additional products

True/False

16. One of the most common errors when monitoring data is to gather information that has little or no probability of changing significantly from one collection period to the next.

17. There are five stages of effectiveness in terms of the role their operations play in terms of strategic business objectives.

18. Departments within a stage 2 organization may exhibit a stage 3 orientation, thereby upgrading the organization to a stage 3 categorization.