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OPM160-01 Mid-Term Exam Version B The following questions are worth three (3) points each. 11 1. Service quality is more difficult to define than product quality. A.. True B. False 2 Quality experts agree that quality can be assured only during the design phase. A. True B. False 3 Customer focus is at the core of quality management. A. True B. False 4 The focus of the Deming Prize is on statistical methods. A. True B. False 5 73. Prevention costs are those costs associated with preventing defects and imperfections fr occurring. A. True B. False 6 The voice of the customer represents the wants, opinions, perceptions, and desires of the customer. A. True B. False 7 Customers are the only source of information about the market. A. True B. False 8 Product life cycles are becoming longer. A.. True B. False 9 One of the ways to improve customers’ perceptions of quality is to improve the process of delivery of the service. A. True B. False 1 10 __________ refers to the propensity for a product to perform consistently over its useful life. A. Conformance B. Durability C. Perceived quality D. Reliability E. Serviceability OPM160-01 Mid-Term Exam Version B 11 An improved understanding of the operations / marketing interface has resulted in an increased focus on the ________ in many firms. A. supplier B. associate C. quality control director D. customer E. human resource director 12 The core of quality management variables contains: A. leadership B. environmental characteristics C. team approach D. information analysis E. strategic planning 13 Which Baldrige criteria focuses on how the company establishes strategic direction and how it sets its tactical action plans to implement the strategic plan. A. leadership B. strategic planning C. customer and market focus D. information and analysis E. process management 14 6 A productive system whose focus is on optimizing processes through the philosophy of continual improvement is referred to as: A. lean production B. reengineering C. benchmarking D. preventive maintenance E. statistical process control 6 115 Nothing can damage a quality improvement effort faster than management’s failure to consider ._________________ A implementing changes that employees recommend.: B an appropriate reward system C meeting times during working hours D Pareto analysis E semi-annual reviews 16 There are two broad categories of quality costs, namely: A. production costs and service costs B. design costs and control costs C. inspection costs and manufacturing costs D. those costs due to quality inspection and those costs due to quality design E. those costs due to poor quality and costs associated with improving quality OPM160-01 Mid-Term Exam Version B 17 __________ customers are employees receiving goods or services from a firm. A. Exogenous B. Fringe C. External D. Introverted E. Internal 9 18 The differences between desired levels of performance and actual levels of performance is referred to as the: A. breach B. gap C. quality divide D. conformance divide E. chasm 19 A __________ is an organization recognized for its exemplary operational performance. A. benchmark B. milestone C. landmark D. model E. relic 20. Conformance based quality information such as reject rates, capability information, and performance information are examples of: A. structural measures B. market share data C. productivity ratios D. financial ratios E. quality measures 21. __ ________ describes a method for translating customer requirements into functional design. A. Product design and evaluation B. Customer design assessment C. Quality function deployment D. Process design deployment E. Customer future needs projection 122 The __________ concept demonstrates the need for developing new products by showing product design, redesign, and complementary product development on a continuum. A. product life cycle B. idea life cycle C. process life cycle D. industry life cycle E. conceptual cycle OPM160-01 Mid-Term Exam Version B 123 The intangible nature of services means that they cannot: . A. be replicable; in other words, no two services can be exactly the same B. obtain high levels of customer satisfaction C. be as innovative as manufactured goods D. produce as high of a net return as manufactured goods E. be inventoried or carried in stock over long periods of time 24 In general, ________ is the primary measurement available in service environments. A. length B. width C. temperature D. time E. weight The following questions are worth ten (10) points each, Choose any THREE for your exam! 1 Describe the meaning of quality circles. How does the use of quality circles improve quality? Quality circles are natural work teams made up of workers that are empowered to improve processes that they use and are used by Japanese companies to involve employees in improving processes and process capability. Using quality circles, Japanese employees brainstorm quality improvement methods and identify causes of quality problems. 2 Does quality lead to better business results? Why? The effects of quality on business are mixed; some firms have been wildly successful with their quality efforts and others have been unsuccessful in gaining bottom-line results. W. Edwards Deming proposed the Deming Chain which indicates that quality will pay off. The two primary reasons for mixed results are that many variables other than quality affect profitability and that many companies implement quality incorrectly. 3 What are the components and activities associated with the complaint resolution process? The first component is to compensate people for their losses. This may be as small as an easy return policy with no questions asked. The second component is contrition; the firm should apologize to the customer for the mistakes made. Third, the complaint-resolution process must be designed to be very easy for complaints to reach resolution to simple complaints. 4 4 Describe the concept of performance benchmarking. Performance benchmarking allows initiator firms to assess their competitive position by comparing products and services with target firms. Performance issues may include things as cost structures, various types of productivity performance, speed of concept to market, quality measures, and other performance evaluations.