Republic of the Philippines

Province of Cebu
City of Talisay
TALISAY CITY COLLEGE
Poblacion, Talisay City, Cebu

REVISED FINAL EXAMINATION

BMEC 1 – OPERATION MANAGEMENT
Prepared by: MARL VINCENT L. LABITAD, MPA

I. MULTIPLE CHOICE. Read and analyze each item and circle the letter of your choice.

1. ______________ is not a process tools for TQM systems

A. process flow analysis

B. histograms
C. plier
D. control charts

2. Inspection, scrap, and repair are examples of ______________

A. internal costs
B. external costs
C. costs of dissatisfaction
D. societal costs

3. Customers are primarily concerned with ______________

A. Communication, courtesy, and credibility of the sales person

B. Competence, courtesy, and security of the sales person
C. Competence, responsiveness, and reliability of the sales person
D. Communication, responsiveness, and cleverness of the sales person

4. Assured quality is necessary for building customer confidence.

A. correct
B. correct to some extent
C. correct to great extent
D. incorrect

5. ______________ are the areas that will be covered by the organization's processes

A. process areas
B. product Areas
C. private areas
D. preset areas

6. "Quality is defined by the customer" is

A. An unrealistic definition of quality

B. A user-based definition of quality
 C. A manufacturing-based definition of quality
D. A product-based definition of quality

7. TQM stands for ______________

A. Total Quality Management

B. Total Quantity Management
C. Total Qualitative Management
D. To question management

8. Quality practices must be carried out ______________

A. at the start of the project

B. throughout the life of the project
C. at the end of the project
D. no need to carry out quality practices

9. Quality circles work best if employees are initially trained in ______________

A. Group dynamics
B. Motivation principles
C. Communications
D. All of the three. (Not sure)

10. production issues should be addressed early

A. correct (not sure)

B. correct to some extent
C. correct to great extent
D. incorrect

11. elements of quality management system are ______________

A. organizational structure
B. responsibilities
C. procedures
D. all the three (not sure)

12. At the time of making a purchase agreement with a vendor, what is important to mention about inspection?

A. the characteristics of the product that are to be inspected

B. the tolerances that would be allowed
C. the reputation of the vendor
D. a & b both (not sure)

13. Identify the cost not likely to reduce as a result of better quality.

A. Maintenance costs
B. Inspection costs
C. Scrap costs
D. Warranty and service costs
14. Quality management includes forming and directing a team of people to achieve a qualitative goal within an
effective cost and time frame that results in ______________

A. a project completed in shortest possible time.

B. a product or service that conforms to the required specifications.
C. an award-winning product that brings public recognition to the project
D. an innovative project that establishes qualification of the project team

15. establishing measurements based on customer needs for optimizing product design is known as ______________

A. Quality planning
B. quality improvement
C. quality control
D. Quality planning (Actual answer is Quality planning roadmap)

Test II. TRUE OR FALSE. Write the word true if the statement is correct while false if the statement is incorrect.

1. Waiting Time is classified as the greatest source of waste and is an outcome of producing more
than is needed by the next process.
2. Reverse Engineering is a systematic approach to dismantling and inspecting a competitor’s
product.
3. Market segmentation consists of evaluating the product concept with potential customers through
interviews, focus groups and other data collection methods.
4. Processes that produce products of high variety and low volume are termed projects.
5. Process unnecessary transportation or WIP is another source of waste. Layout changes can
substantially reduce transportation time.
6. The final design stage involves the use of a prototype to test the preliminary design until a final
design can be chosen.
7. The single card system uses only one type of Kanban called the conveyance Kanban which
authorities the movement of parts.
8. Modularization involves using components that can be used in a number of products again
reducing costs through economies of scale and minimizing inventory.
9. Just-In-Today (JIT) is a philosophy originating from the Japanese auto maker Toyota where Taiichi
Ohno developed the Toyota Production System.
10. Economic Analysis consists of developing estimates of production and demand costs and
comparing them with estimates of demands
11. Operational Analysis consists of determining whether technical capability to manufacture the
product.
12. Kaido is the Japanese term is a philosophy which believes that it is possible to get the ideals of JIT
by a continuous stream of improvement over time.
13. Waiting Time is the time spent by labor or equipment waiting to add value to a product. This may
be disguised by undertaking unnecessary operations like generating work in progress or WIP on a
machine which are not immediately needed and it was include the waste is converted from time to
WIP.
14. The timescale of the completion of the project is an important performance measure because each
projects is unique it is likely that transforming resources will comprise general purpose equipment
which can be used on a number of projects.
15. A processes that produce products of medium variety and medium volume are termed batch which
denotes that the products are grouped as they move through the design process. Motion is
simplification of work movement that will reduce waste caused by unnecessary motion of labor and
equipment.
16. Modern quality management in the United States began in the manufacturing sector.

17. Advances in service quality in the U.S. began to be observed after the year 2000.

18. In managing for quality, it is better to analyze systems by looking at their individual parts than to
analyze the interaction between parts of the system.

19. Given their complexity, production systems cannot be managed as being composed of a number of
smaller sub-systems.

20. The role of the marketing and sales function in a quality organization goes beyond advertising and
selling.

21. An important role of marketing and sales personnel is to determine the needs and expectations of
customers.

22. A customer’s unwillingness to pay for a product’s luxury features is an example of under
engineering.

23. Under-engineered products usually fail in the marketplace because they fail to meet customer
needs.

24. Customers need to be loyal first and then customer satisfaction will follow.

25. Studies have demonstrated that customer retention is related to profitability.

26. The total package of products and services offered by a company is often called the provider’s
benefit package.

27. Producers should focus on a customer’s perception of quality since perceived quality can influence
consumer behavior.

28. Expected quality is a measure of what a manufacturer thinks customers want in a product or
service.

29. Studies have demonstrated that customer retention is related to profitability.

30. The total package of products and services offered by a company is often called the provider’s
benefit package.

31. Producers should focus on a customer’s perception of quality since perceived quality can influence
consumer behavior.

32. Expected quality is a measure of what a manufacturer thinks customers want in a product or
service.

33. Process management consists of control and improvement but not design.

34. Value-creation (core processes) exit in manufacturing firms and not service firms.

35. Processes must be both measurable and repeatable to be improved.