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TQM/Six Sigma

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1. Which one of the following does not affect the reject rates at a company’s plants?

-The installation of plant upgrade C
-Spending for best practices training
-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 The installation of plant upgrade C

2. the interest rate a company pays on loans outstanding depends on its credit ratings

3. The company’s shipments of newly-produced branded and private-label footwear from its plants to its regional distribution centers are subject to -any applicable import tariffs and exchange rate adjustments.

4. Which the following are factors in determining a company’s credit rating? -Its loans outstanding, dividend payout ratio, debt-equity ratio, and free cash flow -Its debt-equity ratio, current ratio, and gross profit margin -Its times-interest-earned ratio, debt-equity ratio, and return on investment -A company’s current ratio, accounts payable, operating profit margin, and the margin by which free cash flow exceeds interest payments -Its default risk ratio, debt-asset ratio, and interest coverage ratio -Its default risk ratio, debt-asset ratio, and interest coverage ratio

5. The factors that affect worker productivity include 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.

6. Which the following are the four geographic regions in which the company sells branded and private-label athletic footwear? North America, Latin America, Asia-Pacific, and Europe-Africa,

7. A footwear-maker’s price competitiveness in selling branded footwear to retailers in a particular geographic region is determined by whether its wholesale price is above or below the average wholesale price of all companies competing in that geographic region.

8. The market for private-label athletic footwear is projected to grow 10% annually in all four geographic regions during the Year 11-Year 15 period and 8.5% annually in all four regions during the Year 16-Year 20 period. 9. Which of the following are the 5 measures on which a company’s performance is judged/scored?

Earnings per share, ROE, stock price, credit rating, and image rating

10. Which of the following currencies are not involved in affecting the operations of your company’s business? Swiss francs, South African rand, Chilean pesos, and Turkish lira

11. At the end of Year 10, going into Year 11, the company’s production capability was 6 million pairs without the use of overtime and 7.2 million pairs with the use of overtime.

12. Which of the following best describes the materials the company uses to make its footwear? standard and superior materials

13. In Year 11, footwear companies can expect to sell an average of 4.84 million branded pairs and an average of 800,000 private-label pairs, although sales at some companies may run higher or lower than the averages due to differing levels of competitive effort.

14. Which of the following most accurately describes your company’s plant operations?

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.

15. The market for branded athletic footwear is projected to grow

9-11% annually in Latin America and the Asia-Pacific during the Year 11-Year 15 period and 5-7% annually in North America and Europe-Africa during the Year 11-Year 15 period.

16. The company currently has production facilities to make athletic footwear in asia-pacific and north America

17. Which of the following is the most important factor in determining a company’s unit sales and market share of private-label footwear in a particular geographic region? the company’s bid price

18. 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? the length of warrenties

19. The factors that affect a company’s S/Q rating include:
the percentage use of superior materials; a company’s cumulative spending for TQM/Six Sigma quality control programs; the use of best practices training; and expenditures for new styling/features per model.

20. Which of the following are components of the compensation package for production workers at your company’s plants? Base wages, incentive payments per non defective pair produced, and overtime pay

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