1 According to the theory of constraints which of the following is a FINANCIAL measurement that can be used to measure the firm's ability to make money?

Inventory
Cash flow
Operating expenses
Sales

2 The DMAIC cycle of Six Sigma is similar to which of the following quality management topics?

Continuous improvement
SERQUAL
ISO 9000
External benchmarking

3 According to Goldratt, which of the following is defined as "any resource whose capacity is less than the demand placed on it"?

Bottleneck resource
Nonbottleneck resource
Buffer resource
Capacity-constrained resource

4 The idea that statistical methods of quality control, including six-sigma, does not prevent defects, is central to what alternative quality system?

Shingo System
Deming PDCA cycle
SQC methods
DMAIC cycle

5 Which of the following are examples of Goldratt's Rules of Production Scheduling?

Nonbottlenecks govern throughput
Balance flow, not capacity
Utilization and activation are the same
An hour saved at a bottleneck is a mirage

6 The Shingo system of quality control relies heavily on fail-safe procedures or devices called what?

DPMO's
Checklists
Poka-yokes
CTQs

7 The Shingo approach to quality control depends on which of the following?

Use of a sophisticated method of acceptance sampling
Use of statistically based approaches to quality control
Extensive use of control charts
Use of source inspection on 100% of the items produced

8 According to the theory of constraints, which of the following is an OPERATIONAL measurement that can be used to measure the firm's ability to make money?

Net Profit
Unit cost
Inventory
Operating revenue

9 Which of the following is a focusing step of Dr. Eli Goldratt's theory of constraints?

Align the whole system to support processes prior to the constraint.
Do not modify a process after improvement of a constraint is achieved.
Identify system constraints that prevent the system from achieving its goal.
Isolate constraints to reduce the constraint's capacity.

10 Identifying critical-to-quality characteristics (CTQs) takes place in which step of the DMAIC methodology?

Define
Improve
Analyze
Measure

11 A bottleneck in a manufacturing process may be targeted and eliminated by employing which of the following?

Install more efficient equipment where capacity is less than the demand.
Increase labor equally throughout the system.
Increase the capacity of a nonbottleneck resource.
Increase the idle time of a capacity-constrained resource in the system.

12 According to the theory of constraints which of the following can be a CCR?

Factory layout
An employee
Product design
A customer

13 Statistical Process Control (SPC) and data from the actual process to statistically monitor the process over time are employed during which step of the DMAIC cycle?

Define
Control
Measure
Improve

14 Goldratt's theory of constraints (TOC) could be restated using which of the following?

A system with constraints will not be able to achieve its goals
Any system is limited in achieving more of its goals by a very small number of constraints
A system constraint cannot be identified and thus cannot be improved
Continuous adjustments after a constraint problem is solved will cause more problems

15 According to the theory of constraints, which of the following would be included in the Throughput operational measurement?

Raw materials
Work in process
Goods sold
Finished goods