1 Functional managers are responsible for managing the organization's operating system.

A) True

B) False

2 Profit organizations have customers, but non-profit organizations do not have customers.

A) True

B) False

3 The concept of "measuring quality" makes sense in manufacturing organizations, but is not applicable to service organizations.

A) True

B) False

4 The implementation of TQM requires the cooperation of all of the managers in an organization.

A) True

B) False

5 Labor productivity measures are rarely used in comparing the efficiency performance of different organizations.

A) True

B) False

6 The idea that a company is a collection of functional activities that transform inputs into outputs of goods and services that customers value is called:

A) value chain.

B) product layout.

C) quality gap.

D) quality circles.

7 According to the price-attribute relationship, the ________ the price a customer is willing to pay for a product, the ________ desired attributes the customer will receive.

A) lower; more

B) higher; more

C) higher; less

D) none of these

8 High-quality products are:

A) reliable

B) satisfying.

C) dependable.

D) all of these.

9 The idea that everyone in the organization should be continuously trying to improve the quality of the goods and services offered by the organization is known as:

A) SOP.

B) PERT.

C) TQM.

D) MBO.

10 What type of facilities layout is used when a Ford Mustang sedan comes down an assembly line as it is produced?

A) Process layout

B) Fixed-position layout

C) Product layout

D) None of these

Thank you,