Business Process Performance Paper 8

1

All of the following are examples of benchmarking standards except






2

A company implemented a benchmarking program to compare itself to others in the industry. Through this program, the company management team discovered that a larger competitor has a lower overhead per unit sold. Based on this information, management concluded that steps must be taken to reduce overhead to remain competitive. Which one of the following is the best critique of this conclusion?






3


"A manufacturer of high-technology consumer goods incurred the following quality-related expenses last year."
Equipment maintenance $5,000
Spoilage 10,000
Liability claims 50,000
Supplier evaluations 5,000
Scrap 20,000
Customer support $50,000
Finished product testing 25,000
What is the total cost related to prevention?






4

A manufacturer that wants to improve its staging process compares its procedures against the check-in process for a major airline. Which of the following tools is the manufacturer using?






5

Which one of the following would be classified as an internal failure cost on a quality cost report?






6


"Hill Stand Company is currently performing a cost of quality analysis of its Memphis facilities. The following are costs compiled by the facility accountant."
Inspection $1,500
Warranty repair 2,800
Testing of new materials 400
Product testing 950
Abnormal spoilage 645
Scrap $150
Preventive equipment maintenance 590
Liability claims 1,870 Rework 1,285
Hill Standís total internal failure cost is






7

Which of the following statements are true with respect to continuous improvement?
I. Improvements should be made continuously until the goal is reached.
II. The continuous improvement should involve management and workers.
III. Standards should be evaluated regularly, and improvements should be ongoing.
IV. Continuous improvement initiatives should involve primarily the workers.






8

Which one of the following is a value-added activity for a company that manufactures bicycles?






9

Which one of the following statements about benchmarking is not correct?






10

The four factors that derive from a company distinctive competencies and which create competitive advantage are






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