Page 459 - The Handbook for Quality Management a Complete Guide to Operational Excellence

446 A p p e n d i x D S i m u l a t e d C e r t i f i c a t i o n E x a m Q u e s t i o n s 447

c. the critical chain considers dependent activities in series, as well
conflicting resource needs.
d. there is no fundamental difference between the two.

164. Throughput may be expressed:
a. as the rate at which a system generates money.
b. as the marginal contribution of sales to profit.
c. for an entire company.
d. as sales revenue minus variable cost.
e. all of the above

165. In constraint management, operating expense:
a. is the amount of money spent converting inventory into throughput.
b. includes labor costs.
c. includes fixed costs and overhead.
d. all of the above
e. choices a and c
166. According to constraint management theory, as inventory costs
increase:
a. Net profit decreases.
b. Return on investment decreases.
c. Net profit remains the same.
d. choices a and b
e. choices b and c
167. Six Sigma methodologies:
a. can only be applied to companies that produce goods with large
volume.
b. concentrate on cost savings rather than customer needs.
c. have not been successfully applied to service companies.
d. all of the above
e. none of the above
168. A Six Sigma level of quality:
a. implies 99.73 percent of the output will meet customer requirement.
b. equates to a capability index of 1.33.
c. represents 3.4 defects per million opportunities.
d. provides half the defects of a 3 Sigma level of quality.
e. all of the above

169. As an organization’s sigma level increases:
a. the cost of quality increases.
b. the cost of quality decreases.
c. the cost of quality is not affected.
d. none of the above

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