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During a process improvement effort, the team discovers that machine X is underutilized, but it is not a bottleneck in the operation. Under the theory of constraints, the team should make which of the following recommendations?

A.

Increase the flow of parts to machine X to maximize Inventory build up

B.

Keep a backlog of stock available at machine X

C.

Allow machine X 10 continue to have idle time

D.

Remove machine X and have a vendor supply the part

A 500-employee company is being acquired by one of its competitors. How should the company president communicate this change to the employees?

A.

Alert them to pending media announcements

B.

Ask managers to notify employees in their own reporting line

C.

Publish a special issue of the company newsletter

D.

Hold a companywide meeting

Stratified sampling is an appropriate method to use in which of the following circumstances?

A.

The inspector is examining product from a single lot.

B.

The lot contains product from different machines, production shifts, or operators

C.

The samples are drawn from a continuous flow of product.

D.

The plan requires samples to be drawn from random containers.

An analysis of a company’s strengths, weakness, opportunities and threats (SWOT) is designed to be used to

A.

identify decisions that affect the entire organization

B.

define complex projects that are not well scoped

C.

optimize internal processes

D.

plan strategic initiatives

Which of the following is an example of an operating expense?

A.

Inventory

B.

Raw materials

C.

Purchased pans

D.

Labor

Which of the following would be the focus of a competitive analysis?

A.

Business practices that seem to work effectively

B.

Strategies and market position

C.

Market requirements and customer needs

D.

Industry segments and customer groups

To be effective, a knowledge management system should include which of the following elements?

A.

A means of rewarding people who share what they know

B.

A data management system that can be accessed by only the information technology staff

C.

Experienced knowledge management consultants

D.

Experts who can review and approve be

Which of the following metrics can be used to measure the internal performance of various departments at the operational level?

A.

Inventory turns

B.

Earned value

C.

Return on investment

D.

Throughput

In an effort to reduce quality costs, a quality manager has implemented a cross-functional process improvement team. Which of the following activities should the team perform first?

A.

Create a method of reporting progress

B.

Identify the problem

C.

Identify ways to measure the effectiveness of changes

D.

Implement a change management system

Which of the following statements describes an effective relationship between an organization's strategic plan and its quality plan?

A.

The strategic plan supports the quality plan.

B.

The quality plan supports the strategic plan.

C.

Each plan supports the other equally.

D.

Each plan is developed and implemented independently.