Download Chapter 09 Management of Quality

Chapter 09 - Management of Quality
Chapter 09
Management of Quality
True / False Questions
1. Broadly defined, quality refers to the ability of a product or service to occasionally meet or
exceed customer expectations.
FALSE
Difficulty: Easy
TLO: 1
Taxonomy: Knowledge
2. An organization achieves quality by consistently meeting their competitor's standards.
FALSE
Difficulty: Medium
TLO: 1
Taxonomy: Knowledge
3. Because 'courtesy' is subjective, it can't be considered a factor in service quality.
FALSE
Difficulty: Easy
TLO: 1
Taxonomy: Knowledge
4. Recent changes to ISO guidelines stress continuous improvement regardless of how good
you currently are.
TRUE
Difficulty: Medium
TLO: 2
Taxonomy: Knowledge
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Chapter 09 - Management of Quality
5. The seven dimensions of quality are important for products but are not applicable in service
organizations.
FALSE
Difficulty: Easy
TLO: 2
Taxonomy: Knowledge
6. Regardless of superior quality, consumers won't pay premium prices.
FALSE
Difficulty: Medium
TLO: 4
Taxonomy: Knowledge
7. High Quality and low prices are both considered to be dimensions of quality.
FALSE
Difficulty: Easy
TLO: 2
Taxonomy: Knowledge
8. The Baldrige award can only be won by manufacturing organizations.
FALSE
Difficulty: Easy
TLO: 5
Taxonomy: Knowledge
9. Quality of conformance refers to the degree to which goods and services conform to the
intent of the designers as documented in the specifications.
TRUE
Difficulty: Easy
TLO: 1
Taxonomy: Knowledge
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Chapter 09 - Management of Quality
10. Quality of design refers to the degree to which goods and services achieve the intent of the
designers.
FALSE
Difficulty: Medium
TLO: 1
Taxonomy: Knowledge
11. In market research, a group of consumers who express their opinions about a product or
service is called a steering committee.
FALSE
Difficulty: Easy
TLO: 10
Taxonomy: Knowledge
12. Business organizations achieving good quality benefit in a variety of ways, including a
positive reputation for quality, increased customer loyalty, and lower production costs.
TRUE
Difficulty: Easy
TLO: 2
Taxonomy: Knowledge
13. User instructions and follow-up services after delivery are important elements of overall
product or service quality.
TRUE
Difficulty: Easy
TLO: 1
Taxonomy: Knowledge
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Chapter 09 - Management of Quality
14. Reducing the variations in our product or service is an important key to perceived quality.
TRUE
Difficulty: Medium
TLO: 3
Taxonomy: Knowledge
15. Product design choices are usually the result of inputs from accounting and human
resources.
FALSE
Difficulty: Easy
TLO: 3
Taxonomy: Knowledge
16. The dimensions of product and service quality are too abstract to be applied
operationally.
TRUE
Difficulty: Hard
TLO: 1
Taxonomy: Knowledge
17. The degree to which a product or service satisfies its intended purpose is determined by
design, conformance to design, cost, and reputation of the producer.
FALSE
Difficulty: Medium
TLO: 3
Taxonomy: Knowledge
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Chapter 09 - Management of Quality
18. The degree to which a product or service satisfies its intended purpose is determined by
service after delivery, ease of use, design, and conformance to design.
TRUE
Difficulty: Medium
TLO: 3
Taxonomy: Knowledge
19. Medical malpractice claims are an example of how poor quality can affect an organization
through liability.
TRUE
AACSB: EU
Difficulty: Medium
TLO: 4
Taxonomy: Knowledge
20. Convenience, Reliability and Assurance are dimensions of service quality.
TRUE
Difficulty: Easy
TLO: 1
Taxonomy: Knowledge
21. Poor quality has a positive effect on productivity because it usually takes longer to
produce a good part.
FALSE
Difficulty: Medium
TLO: 2
Taxonomy: Knowledge
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Chapter 09 - Management of Quality
22. If the majority of service customers are satisfied, it is likely that all service customers will
be satisfied.
FALSE
Difficulty: Easy
TLO: 1
Taxonomy: Knowledge
23. The primary difference between internal failures and external failures is time and place of
discovery of the failure.
TRUE
Difficulty: Medium
TLO: 2
Taxonomy: Knowledge
24. Customer expectations tend to change over time affecting their perception of service
quality.
TRUE
Difficulty: Easy
TLO: 1
Taxonomy: Knowledge
25. Cost of inspectors, testing, test equipment, and labs are examples of prevention costs.
FALSE
Difficulty: Medium
TLO: 4
Taxonomy: Knowledge
26. Cost of inspectors, testing, test equipment, and labs are examples of appraisal costs.
TRUE
Difficulty: Medium
TLO: 4
Taxonomy: Knowledge
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Chapter 09 - Management of Quality
27. Modern quality management emphasizes finding and correcting mistakes before they
reach the customer – catching the errors before they are shipped.
FALSE
Difficulty: Medium
TLO: 7
Taxonomy: Knowledge
28. Deming stresses that workers are primarily responsible for poor quality because very often
they fail to follow instructions.
FALSE
Difficulty: Easy
TLO: 6
Taxonomy: Knowledge
29. According to Deming, it is the systems that management puts into place that are primarily
responsible for poor quality, not employees.
TRUE
Difficulty: Medium
TLO: 6
Taxonomy: Knowledge
30. Juran describes quality management as a trilogy that consists of quality planning, quality
control, and quality improvement.
TRUE
Difficulty: Medium
TLO: 6
Taxonomy: Knowledge
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Chapter 09 - Management of Quality
31. Juran describes quality management as a trilogy that consists of quality planning, control
of quality costs, and quality improvement.
FALSE
Difficulty: Hard
TLO: 6
Taxonomy: Knowledge
32. Quality at the source means returning all defects to the source – our vendors.
FALSE
Difficulty: Medium
TLO: 7
Taxonomy: Knowledge
33. Six sigma programs have both management and technical components.
TRUE
Difficulty: Medium
TLO: 7
Taxonomy: Knowledge
34. Crosby's concept of "quality is free" means that it is less expensive to do it right initially
than to do it over.
TRUE
Difficulty: Medium
TLO: 6
Taxonomy: Knowledge
35. The causes of variation in any process can be identified through the general categories of
people, procedures, education and age.
FALSE
Difficulty: Medium
TLO: 8
Taxonomy: Knowledge
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Chapter 09 - Management of Quality
36. Quality certification refers to a process of 100 percent inspection to catch all defective
products before they leave the company; this allows every item to certified defect free.
FALSE
Difficulty: Easy
TLO: 10
Taxonomy: Knowledge
37. The customer is the focal point and customer satisfaction is the driving force in quality
management.
TRUE
Difficulty: Easy
TLO: 7
Taxonomy: Knowledge
38. When considering service quality, convenience often is a major factor.
TRUE
Difficulty: Medium
TLO: 1
Taxonomy: Knowledge
39. Serviceability, Conformance and Reliability are dimensions of product quality.
TRUE
Difficulty: Easy
TLO: 1
Taxonomy: Knowledge
40. Firms that wish to do business with the European Community can benefit from having a
quality management system that meets ISO 9000 standards.
TRUE
Difficulty: Medium
TLO: 2
Taxonomy: Knowledge
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Chapter 09 - Management of Quality
41. Continuous improvement attempts to achieve major breakthroughs in product or service
quality.
FALSE
Difficulty: Easy
TLO: 7
Taxonomy: Knowledge
42. So long as quality input resources are used to make a product, we can expect quality
output from the process.
FALSE
Difficulty: Easy
TLO: 7
Taxonomy: Knowledge
43. Three key philosophies in TQM are continuous improvement, involvement of everyone in
the organization, and customer satisfaction.
TRUE
Difficulty: Easy
TLO: 7
Taxonomy: Knowledge
44. Suppliers are not included in quality assurance and quality improvement efforts in TQM;
they should worry about their own problems.
FALSE
Difficulty: Medium
TLO: 7
Taxonomy: Knowledge
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Chapter 09 - Management of Quality
45. Zero defects requires 100% inspection of the final product.
FALSE
Difficulty: Easy
TLO: 7
Taxonomy: Knowledge
46. The PDSA cycle forms the conceptual basis for continuous improvement.
TRUE
Difficulty: Easy
TLO: 8
Taxonomy: Knowledge
47. A control chart is a visual representation of the various states in a process.
FALSE
Difficulty: Easy
TLO: 10
Taxonomy: Knowledge
48. The purpose of benchmarking is to establish a standard against which the organization's
performance can be judged, and to identify a model for possible improvement.
TRUE
Difficulty: Medium
TLO: 10
Taxonomy: Knowledge
49. TQM expands the traditional view of quality beyond looking only at the quality of the
final product or service to looking at the quality of every aspect of the process.
TRUE
Difficulty: Medium
TLO: 7
Taxonomy: Knowledge
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Chapter 09 - Management of Quality
50. The benchmark organization must be chosen from the same industry in order for its
methods to be applicable.
FALSE
Difficulty: Medium
TLO: 10
Taxonomy: Knowledge
51. A quality circle is a cross-functional team focused on quality.
FALSE
Difficulty: Medium
TLO: 8
Taxonomy: Knowledge
52. Total quality management attempts to involve everyone in an organization in the effort to
achieve quality.
TRUE
Difficulty: Easy
TLO: 7
Taxonomy: Knowledge
53. There is a positive link between quality and productivity.
TRUE
Difficulty: Easy
TLO: 2
Taxonomy: Knowledge
54. The term "quality at the source" refers primarily to the practice of requiring each of our
vendors to provide quality parts and materials.
FALSE
Difficulty: Medium
TLO: 7
Taxonomy: Knowledge
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Chapter 09 - Management of Quality
55. ISO standards aid in transferring technology to developing countries.
TRUE
AACSB: MD
Difficulty: Hard
TLO: 2
Taxonomy: Knowledge
56. TQM is not just a collection of techniques. It is rather a whole new attitude toward
quality.
TRUE
Difficulty: Easy
TLO: 7
Taxonomy: Knowledge
57. The PDSA cycles is also referred to as the Baldrige Wheel.
FALSE
Difficulty: Medium
TLO: 8
Taxonomy: Knowledge
58. When problems arise in a total quality managed organization, it is important to assign
blame and punish the worker responsible for causing the problem.
FALSE
Difficulty: Medium
TLO: 8
Taxonomy: Knowledge
59. ISO standards apply only to manufacturing organizations.
FALSE
Difficulty: Easy
TLO: 2
Taxonomy: Knowledge
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Chapter 09 - Management of Quality
60. One of the major obstacles to implementing TQM is the emphasis on long-term financial
results.
FALSE
Difficulty: Medium
TLO: 7
Taxonomy: Knowledge
61. One criticism of total quality management is that it may produce blind pursuit of quality to
the neglect of other priority considerations.
TRUE
Difficulty: Medium
TLO: 7
Taxonomy: Knowledge
62. Process mapping is part of process improvement.
TRUE
Difficulty: Easy
TLO: 10
Taxonomy: Knowledge
63. Total quality management is a collection of techniques, such as quality control charts, ISO
9000, and quality function deployment.
FALSE
Difficulty: Medium
TLO: 7
Taxonomy: Knowledge
Multiple Choice Questions
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Chapter 09 - Management of Quality
64. A tool that is not used for quality is ___.
A. Flowchart
B. Histogram
C. Parato Analysis
D. Redesign
E. Check sheets
Difficulty: Medium
TLO: 10
Taxonomy: Knowledge
65. The four dimensions of quality that are sometimes used to determine fitness for use of a
product are ___.
A. performance, special features, durability, and service after sale
B. performance, special features, conformance, and reliability
C. special features, conformance, reliability, and durability
D. performance, conformance, reliability, and durability
E. special features, conformance, durability, and service after sale
Difficulty: Hard
TLO: 1
Taxonomy: Knowledge
66. A tool used to organize data into logical categories is called a(n) ___.
A. Affinity diagram
B. Check list
C. Control Chart
D. Flow Chart
E. Relationship diagram
Difficulty: Medium
TLO: 10
Taxonomy: Knowledge
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Chapter 09 - Management of Quality
67. Which isn't a cost of quality?
A. Prevention cost
B. External failure
C. Extended Service Contracts
D. Internal failure
E. Appraisal costs
Difficulty: Hard
TLO: 4
Taxonomy: Knowledge
68. The Deming Prize was established by the ___.
A. American Statistical Association
B. Japanese
C. North American Free Trade Association
D. American Quality Society
E. World Trade Organization
Difficulty: Medium
TLO: 5
Taxonomy: Knowledge
69. Lost production time, scrap, and rework are examples of ___.
A. internal failure costs
B. external failure costs
C. appraisal costs
D. prevention costs
E. replacement costs
Difficulty: Medium
TLO: 4
Taxonomy: Knowledge
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Chapter 09 - Management of Quality
70. Warranty service, processing of complaints, and costs of litigation are examples of ___.
A. internal failure costs
B. external failure costs
C. appraisal costs
D. prevention costs
E. replacement costs
Difficulty: Medium
TLO: 4
Taxonomy: Knowledge
71. Costs of inspectors, testing, test equipment, and labs are examples of ___.
A. internal failure costs
B. external failure costs
C. appraisal costs
D. prevention costs
E. replacement costs
Difficulty: Medium
TLO: 4
Taxonomy: Knowledge
72. Loss of business, liability, productivity and costs are consequences of ___.
A. Labor Unions
B. Globalization
C. Poor Quality
D. Robotics
E. Micro-factories
Difficulty: Medium
TLO: 4
Taxonomy: Knowledge
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Chapter 09 - Management of Quality
73. Quality planning and administration, quality training, and quality control procedures are
examples of ___.
A. internal failure costs
B. external failure costs
C. appraisal costs
D. prevention costs
E. replacement costs
Difficulty: Medium
TLO: 4
Taxonomy: Knowledge
74. The purpose of the Malcolm Baldrige National Quality Award is to ___.
A. stimulate efforts to improve quality
B. recognize quality achievements of U.S. companies
C. publicize successful quality programs
D. all of the above
E. distribute the grant money available for improved quality
Difficulty: Medium
TLO: 5
Taxonomy: Knowledge
75. Fixing a problem will often cost money; to minimize these costs it is best to find and fix
the problem ___.
A. just before shipping our product to the customer
B. immediately after we complete the last operation
C. during the design phase
D. just before we begin the first production operation
E. regardless of when you fix the problem, costs are about the same
Difficulty: Hard
TLO: 7
Taxonomy: Knowledge
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Chapter 09 - Management of Quality
76. Deciding how much to invest in the prevention of defects can be analyzed using ___.
A. EVPI
B. Net Present Value
C. Weighted Factor Analysis
D. Return on Quality
E. Breakeven Analysis
Difficulty: Hard
TLO: 10
Taxonomy: Knowledge
77. The Baldrige award is based on seven categories. Which is not one of those?
A. Relative profitability
B. Strategic planning
C. Human resource focus
D. Information and Analysis
E. Leadership
Difficulty: Hard
TLO: 5
Taxonomy: Knowledge
78. ISO 9000 standards do not have a requirement for ___.
A. resource
B. remedial
C. systems
D. training
E. management
Difficulty: Hard
TLO: 2
Taxonomy: Knowledge
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Chapter 09 - Management of Quality
79. A quality circle is ___.
A. responsible for quality
B. total quality control
C. an inspection stamp found on meat
D. a voluntary group of employees
E. none of the above
Difficulty: Easy
TLO: 8
Taxonomy: Knowledge
80. ISO 9000 currently requires _____ of a certified organization.
A. Quarterly reporting
B. Product diversity
C. Annual audits
D. A minimum of four supervisory levels
E. Continuous improvement
Difficulty: Hard
TLO: 2
Taxonomy: Knowledge
81. The quality control improvement tool which distinguishes between the "important few"
and the "trivial many" is ___.
A. brainstorming.
B. check sheets.
C. Pareto analysis.
D. cause-and-effect diagrams.
E. fail-safe methods.
Difficulty: Easy
TLO: 10
Taxonomy: Knowledge
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Chapter 09 - Management of Quality
82. The quality control improvement tool that resembles a "fishbone" is ___.
A. brainstorming
B. check sheets
C. Pareto analysis
D. cause-and-effect diagrams
E. fail-safe methods
Difficulty: Medium
TLO: 10
Taxonomy: Knowledge
83. TQM stands for:
A. Taguchie Quality Methods
B. Tactical Quality Measurements
C. The Quality Matrix
D. Total Quality Management
E. Total Quantity Measurement
Difficulty: Easy
TLO: 7
Taxonomy: Knowledge
84. Which of the following is an element of TQM?
A. continual improvement
B. competitive benchmarking
C. operations Manager empowerment
D. team approach
E. all of the above
Difficulty: Medium
TLO: 7
Taxonomy: Knowledge
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Chapter 09 - Management of Quality
85. Management behaviors supporting an organizational culture that encourages continuous
improvement include which of the following?
(I) develop a vision statement for the organization
(II) develop a reward system that promotes the philosophy
(III) institute continuous training programs
(IV) make decisions that adhere to the philosophy
A. I, II, and IV
B. I, II, III, and IV
C. I and III
D. II, III, and IV
E. II and IV
Difficulty: Medium
TLO: 7
Taxonomy: Knowledge
86. The tool that is useful in documenting the current process is:
A. a control chart
B. a Pareto chart
C. a check sheet
D. a flow chart
E. a simo chart
Difficulty: Medium
TLO: 10
Taxonomy: Knowledge
87. The tool that is useful in the collection and organization of data is:
A. a control chart
B. a Pareto chart
C. a check sheet
D. a flow chart
E. none of the above
Difficulty: Medium
TLO: 10
Taxonomy: Knowledge
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Chapter 09 - Management of Quality
88. A quality improvement technique that involves the sharing of thoughts and ideas in a way
that encourages unrestrained collective thinking is:
A. Pareto analysis
B. benchmarking
C. brainstorming
D. a control chart
E. a check sheet
Difficulty: Easy
TLO: 10
Taxonomy: Knowledge
89. The "5W2H approach" involves:
A. measuring width and height
B. using 7 people
C. using 2 people
D. using 9 people
E. asking questions
Difficulty: Easy
TLO: 8
Taxonomy: Knowledge
90. Asking questions about the current process in the hope that it will lead to important
insights about why the current process isn't working as well as it could is called:
A. the "5W2H approach"
B. using quality circles
C. benchmarking
D. PDCA cycle
E. none of the above
Difficulty: Easy
TLO: 8
Taxonomy: Knowledge
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Chapter 09 - Management of Quality
91. Focusing attention on the most important problem areas is referred to as:
A. quality circles
B. quality assurance
C. brainstorming
D. Pareto analysis
E. cause-and-effect analysis
Difficulty: Easy
TLO: 10
Taxonomy: Knowledge
92. A chart showing the number of occurrences by category would be used in:
A. Pareto analysis
B. interviewing
C. cause-and-effect diagrams
D. benchmarking
E. none of the above
Difficulty: Medium
TLO: 10
Taxonomy: Knowledge
93. Cause-and-effect diagrams are sometimes called:
A. Pareto diagrams
B. fishbone (Ishikawa) diagrams
C. run charts
D. control charts
E. none of the above
Difficulty: Easy
TLO: 10
Taxonomy: Knowledge
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Chapter 09 - Management of Quality
94. The process of identifying other organizations that are best at some facet of your
operations, and then modeling your organization after them is known as:
A. continuous improvement
B. employee empowerment
C. competitive benchmarking
D. copycatting
E. industrial espionage
Difficulty: Medium
TLO: 10
Taxonomy: Knowledge
95. Giving workers responsibility for quality improvements and authority to make changes is
known as:
A. continuous improvement
B. passing the buck
C. benchmarking
D. employee empowerment
E. employee involvement
Difficulty: Medium
TLO: 7
Taxonomy: Knowledge
96. The typical difference between "quality circles" and "continuous improvement teams" is
___.
A. Quality circles work on product design only.
B. Continuous improvement teams work on product and process design.
C. Continuous improvement teams use only engineers while quality circles use just the
workers doing the work.
D. the amount of employee empowerment
E. There is no difference-they are just the same.
Difficulty: Hard
TLO: 9
Taxonomy: Knowledge
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Chapter 09 - Management of Quality
97. Which of the following is not a goal of process improvement?
A. increasing customer satisfaction
B. reducing waste
C. achieving higher quality
D. identifying the cause of a problem
E. All are the goals.
Difficulty: Medium
TLO: 9
Taxonomy: Knowledge
98. Managers have obligations to a wide variety of stakeholders such as shareholders,
employees and customers. When considering outsourcing production to offshore suppliers,
managers have to weigh ___.
I) Cost benefits that might make shareholders wealthier
II) Quality issues that might make firms less productive and/or products riskier
III) The investments already tied up in relationships with existing suppliers
A. I
B. II
C. III
D. I and II only
E. I, II and III
AACSB: EU
Difficulty: Medium
TLO: 7
Taxonomy: Knowledge
99. Focusing a supply chain on ________________ is a modern way of ensuring high quality
inputs and a ready supply of process-improvement ideas.
A. lowest cost-per unit sourced
B. close, collaborative ties with suppliers
C. suppliers that emphasized continuous-flow production
D. ISO 14000 customers
E. partners pursuing similar strategies
AACSB: RT
Difficulty: Medium
TLO: 7
Taxonomy: Knowledge
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