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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

9-23

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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