Quiz Answers 2016 - Quiz 2
The factors that affect a company's S/Q rating include: whether materials are produced in-house or outsourced; overall footwear quality; how much is spent to inspect newly-produced pairs and avoid shipping defective shoes; the size of the incentives paid to production workers.
- the size of annual base pay increases; reject rates; expenditures for best practices training; whether plant upgrade B has been installed.
- how well compensated its work force is; whether shoes are produced with standard materials or superior materials; the durability and quality of the footwear, and how many models/styles are included in its product line.
- the number of performance features built into branded models/styles annually; the durability of its athletic shoes; how much best practices training the average production worker has had; and plant reject rates.
- whether plant upgrade C has been installed; a company's cumulative spending for TQM/Six Sigma quality control programs; and expenditures for new styling/features per model.
Which of the following is not an accurate characteristic of your company's plant operations?
- The company makes most all of its footwear materials and components in-house, uses 100-person assembly lines to make branded shoes at the rate of 500 pairs per day, and outsources private-label footwear from contract manufacturers in the Asia-Pacific.
- Standard and superior materials are sourced from outside suppliers at prices that vary according to global demand-supply conditions.
- The company compensates production workers on the basis of both base pay and incentive payments per non-defective pair produced.
- TQM/Six Sigma quality control programs and best practices training are used to promote better workmanship and reduce the number of pairs rejected due to defects.
- Plants can produce 50, 100, 150, 200, 250, 350, or 500 branded models/styles.
The factors that affect worker productivity include
- the size of a plant's work force, whether workers are making branded or private-label shoes, whether a plant has been upgraded and modernized within the past three years, and the complexity of the new features and styling that has been designed into the models/styles of footwear being produced.
- S/Q ratings, the warranty claim rate on recently-sold footwear, the amount of overtime used, the percentage of pairs outsourced, and how many pairs each worker is able to make during a year.
- worker experience, base pay increases, reject rates, how much the company spends for TQM/Six Sigma training to enhance worker skills, and the S/Q ratings on the footwear being produced.
- the size of incentive payments per non-defective pair, base pay increases, how favorably a company's compensation package compares with the industry-average compensation package, and expenditures for best practices training.
- the percentage use of overtime, the percentage of newly-hired workers, the percentage use of superior materials, and the S/Q ratings on the footwear being produced.
The company currently has production facilities to make athletic footwear in
- Latin America and Asia-Pacific.
- North America and Europe-Africa.
- North America and Latin America.
- North America and Asia-Pacific.
- Middle East, India, and China.
5. Which one of the following does not affect the reject rates at a company's plants?
- The installation of plant upgrade C
- Spending for TQM/Six Sigma quality control efforts
- The number of models/styles comprising the company's product line The size of the incentive payment per non-defective pair produced Spending for best practices training
6. Which of the following are factors in determining a company's credit rating?
- Its times-interest-earned ratio, debt-equity ratio, and return on capital investment
- A company's current ratio, how much it has in accounts receivable and accounts payable, and how many times it has cut its dividend
- Its loans outstanding, dividend payout ratio, annual interest payments, and debt-equity ratio Its debt-equity ratio, current ratio, free cash flow, and gross profit margin
- Its default-risk ratio, debt-asset ratio, and interest coverage ratio
7. Which the following are the four geographic regions in which the company sells branded and private-label athletic footwear?
- Italy, Mexico, the U.S., and Australia
- The United States, Middle East, Great Britain, and Japan
- Western Europe, Asia, North America, and South America
- The European Union, North America, Southeast Asia, and Latin America
- Latin America, North America, Europe-Africa, and Asia-Pacific
8. Which one of the following is not a factor in determining a company's unit sales and market share of branded footwear in a particular geographic region?
- Expenditures on advertising
- Performance/durability (P/D) ratings
- Delivery times to retailers (1, 2, 3, or 4 weeks)
- The number of models/styles in the company's product line Mail-in rebate offers
9. The reject rates at the company's footwear plants are a function of
- the S/Q rating, worker experience, incentive bonuses for teamwork and perfect attendance, best practices training, spending for new features and styling, and the use of plant upgrade option B.
- the size of worker's annual base pay, year-end incentive bonuses, best practices training, the plant's D/P (performance/durability) rating, and the number of models/styles comprising the company's product line.
- the size of the incentive payment per non-defective pair produced, spending for best practices training, spending for TQM/Six Sigma quality control, the number of models/styles comprising the company's product line, and the installation of plant upgrade option A.
- best practices training, overtime pay, spending for TQM/Six Sigma quality control, the number of models/styles comprising the company's product line, and the use of plant upgrade option C.
- workers' total compensation package, the number of plants, and the installation of upgrade option D.
10. Which of the following most accurately describes your company's plant operations?
- Workers are organized into 3-person teams; each team has the capability to make 5,000 pairs annually; teams are compensated at the rate of $10 per pair produced.
- Standard and superior materials are sourced from outside suppliers at prices that vary according to global demand-supply conditions; the company's production workers are compensated on the basis of both base pay and incentive payments per pair produced.
- Branded production is done during regular time and private-label footwear is produced only during overtime.
- All footwear production teams must go through 40 hours of best practices training annually.
- The company makes most all of its footwear materials and components in-house and uses 25-person assembly lines to make branded shoes at the rate of 5000 pairs per week.