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Multiple Choice Questions (1 Mark Each) 1. Which of the following statement is "FALSE" a) For a company if prevention cost is high then its internal or external failure costs should be low. b) ISO 9000 is a quality management standard that is recognized internationally. c) PDCA cycle is used to achieve continuous improvement. d) Quality robust products are products that are produced using six-sigma DMAIC method. 2. Which of the following statement is "FALSE" a) A company uses material that has variable lead-time and variable demand. To maintain high service levels for its customers, it should maintain high safety stock. b) Basic EOQ model has several assumptions. c) If a company keeps its service level low, there is a high probability of stockout. d) A successful company would have low raw material inventory and low work-in-process inventory. 3. A Manager in Hamad Hospital has collected data about quality problem. He wants to use quality tools to focus on the most important issues and then to find relationship among training of employees and quality problems. Which tools should the manager use in this case? a) Check Sheets and Scatter Diagram b) Cause and Effect Diagram and Statistical Process Control c) Pareto Charts and Scatter Diagram d) Pareto Charts and Flowcharts 4. Which of the following statement is "FALSE" a) Higher utilization means that design capacity is high. b) Higher efficiency means actual output is close to effective capacity. c) Design capacity is the output from the system under ideal conditions. d) Maximum output from an assembly line cannot be more than the capacity of the bottleneck. 5. Which of the following statement is "FALSE" about crossover charts? a) We can find the total cost of producing a given quantity of products. b) We can find the variable cost of producing a given quantity of products. c) We can find the volume at which the total cost of two processes is the same. d) We can find the profits for different processes for different volumes. Hamad Medical purchases flu-vaccine from Switzerland. If the standard deviation of demand and lead-time this product decreases, which of the following statements is "FALSE" a) Hamad Medical can decrease the reorder point to maintain same service level. b) Hamad Medical can decrease the safety stock to maintain same service level. c) The risk of stock-out of this medicine will increase if Hamad Medical do not change the reorder point. d) None of the above