Chapter 2: Quality Management
7 76. The Six Sigma quality goal is 3.4 defects per ___________________ opportunities. a. hundred b. thousand c. million d. billion
C Difficulty: Easy
8 41. Which of the following is not a dimension of quality for a manufactured good? a. performance b. reliability c. courtesy d. durability
C Difficulty: Easy
1 45. Making sure that the product meets the design specifications during production is referred to as a. quality of design. b. process capability. c. fitness for use. d. quality of conformance.
D Difficulty: Easy
1 25. In a general sense the supplier makes the final judgment regarding quality.
False Difficulty: Easy
2 15. Deming believed that only suppliers are responsible for improving quality.
False Difficulty: Easy
5 10. Some companies enter into long-term relationships with suppliers who in return commit to meet delivery deadlines but not quality targets.
False Difficulty: Easy
4 32. Employees' role in quality management is becoming less important due to the implementation of supplier partnerships.
False Difficulty: Moderate
7 39 Quality management principles often do not apply to services because the customer has lower quality expectations.
False Difficulty: Moderate
1 22. The courtesy and competence of the repair person can be one aspect of maintainability.
False Difficulty: Easy
2 13. Deming emphasized final product inspection as a way to improve process quality.
False Difficulty: Easy
2 18. How well the product or service does what it is intended to do is known as quality of reliability.
False Difficulty: Easy
5 11. Globalization and foreign competition began to change consumers' attitudes toward quality in the 1950s.
False Difficulty: Easy
8 6. Companies that have adopted Six Sigma view it as a short-term strategy for incremental quality improvement.
False Difficulty: Easy
8 5. Six Sigma is a recognized quality program based strictly on statistical process control.
False Difficulty: Easy
1 23. The probability that a product will operate properly within an expected time frame is known as quality of performance.
False Difficulty: Moderate
2 17. From the producer's perspective, quality is determined by what the consumer wants and is willing to pay for.
False Difficulty: Moderate
6 34. One principle of total quality management (TQM) is that upper management is solely responsible for providing the leadership for quality.
False Difficulty: Moderate
8 3. With Six Sigma, a teacher and mentor is known as a Green Belt.
False Difficulty: Moderate
2 16. The Deming Wheel is also known as the plan-do-check-act (PDCA) cycle.
True Difficulty: Easy
12 29. Statistical process control monitors and controls quality for both qualitative and quantitative variables.
True Difficulty: Hard
3 30. Today, total quality management has been displaced by quality management systems.
True Difficulty: Hard
5 9. Most members of a supply chain understand the importance of high quality because they are both customers and suppliers.
True Difficulty: Moderate
6 35. Two team approaches to quality improvement are quality circles and process improvement teams.
True Difficulty: Moderate
6 36. Benchmarking involves comparing a company's quality to the best level of quality achieved by another company in the same industry.
True Difficulty: Moderate
7 38. McDonald's has a reputation for high-quality service resulting from the application of quality management principles.
True Difficulty: Moderate
8 8. To satisfy a customer's quality requirements companies often require the commitment to quality of their suppliers.
True Difficulty: Moderate
9 28. ISO 9000 certification is a major consideration for doing business within the United States Europe Union.
True Difficulty: Moderate
1 26. The cost of measuring, testing, and analyzing are collectively known as appraisal costs.
True Difficulty Hard
1 19. The degree to which quality characteristics are designed into the product is known as quality of design.
True Difficulty: Easy
1 20. Quality of performance relates to the basic operating characteristics of a product.
True Difficulty: Easy
1 21. The degree to which a product meets pre-established standards is known as quality of conformance.
True Difficulty: Easy
2 14. Deming emphasized the use of statistical quality control techniques to reduce variability in the output of a process.
True Difficulty: Easy
4 31. Total quality management represents a set of management principles that focus on quality improvement in all the functional areas within a company.
True Difficulty: Easy
6 33. The training and education of all employees on quality improvement is a basic principle of total quality management.
True Difficulty: Easy
1 24. The dimension of quality related to the lifespan of a product before replacement is known as durability.
True Difficulty: Moderate
1. Six Sigma quality uses a statistical measure with a goal that equates to only 3.4 defects per million.
True Difficulty: Moderate
5 12. Deming advocated continuous process improvement to reduce variability and achieve conformance to design specifications.
True Difficulty: Moderate
7 37. Service quality is more directly related to the interaction between customer and employee than is manufacturing quality.
True Difficulty: Moderate
8 2. With Six Sigma, the project team leader is known as a Black Belt.
True Difficulty: Moderate
8 4. Quality levels in the United States were generally measured in defects per hundred before Six Sigma.
True Difficulty: Moderate
8 7. The fundamental objective of Six Sigma is to focus on improvement by reducing process variation.
True Difficulty: Moderate
9 27. Customer complaint costs are an example of external failure costs.
True Difficulty: Moderate
1 44. The degree to which a product meets pre-established standards is known as a. conformance. b. performance. c. reliability. d. None of these answer choices is correct.
A Difficulty: Easy
2 48. W. Edwards Deming's overall philosophy for achieving quality is embodied in a. his 14 points. b. his statement of purpose. c. his use of statistical control. d. None of these answer choices is correct.
A Difficulty: Easy
10 Solution: 500*(0.95*0.95*0.93*097)=407 units 54. A production process consists of the following four stages with the average percentage of good quality at each stage as shown. Stage Average Percentage of Good Quality 1 0.95 2 0.95 3 0.93 4 0.97 How many units must the company put into production each day to achieve a daily yield of 350 good units? a. approximately 430 units b. approximately 415 units c. approximately 468 units d. approximately 361 units
A Difficulty: Hard
10 Solution: Yield=0.92*0.95*0.96*0.93*200=156 units. 52. A production process consists of the following four stages with the average percentage of good quality at each stage as shown Stage Average Percentage of Good Quality 1 0.98 2 0.97 3 0.96 4 0.92 How many units must the company put into production each day to achieve a daily yield of 100 good units? a. approximately 119 units b. approximately 108 units c. approximately 106 units d. approximately 104 units
A Difficulty: Hard
1 46. __________________ advocated continuous improvement to the production process to achieve conformance to specifications and reduce variability. a. W. Edwards Deming b. Philip Crosby c. Kaoru Ishikawa d. Frederick Taylor
A Difficulty: Moderate
10 Solution: QPR=190/($16000+$100)*100=1.18 64. Modern Inc. manufactures low-cost tables at a processing cost of $80 per table. The company produces 100 units per day and averages 90% good quality resulting in 10% defective items. Fifty percent of the defective units are reworked prior to shipment to Modern's distribution center. The rework cost is $10 per unit. If the percent good quality increases from 90% to 95%, the quality productivity ratio (QPR) is a. approximately 1.20. b. approximately 1.40. c. approximately 1.60. d. approximately 180.
A Difficulty: Moderate
3 60. Which of the following quality tools displays the steps in a process on a graph a. Process flow chart b. Fishbone diagram c. Histogram d. Scatter diagram
A Difficulty: Moderate
4 68. A ____________________ is a system that achieves customer satisfaction and complements other company systems. a. quality management system b. total quality system c. quality productivity system d. None of these answer choices is correct.
A Difficulty: Moderate
5 73. The customer of ________________ firm(s) interacts directly with the production process. a. a service b. a manufacturing c. both service and manufacturing d. None of these answer choices is correct.
A Difficulty: Moderate
7 75. _____________________ is an important measure of service quality that is not difficult to measure. a. Timeliness b. Benchmarking c. Kaizen d. Participative problem solving
A Difficulty: Moderate
9 79. The cost of achieving good quality includes a. prevention costs. b. internal failure costs. c. external failure costs. d. None of these answer choices is correct.
A Difficulty: Moderate
9 81. The Baldridge Award was created in 1987 to _________________ in the U.S. a. stimulate growth of quality management b. stimulate economic growth c. recognize the best quality gurus d. None of these answer choices is correct.
A Difficulty: Moderate
1 43. The probability that a product will operate properly within an expected timeframe is the dimension of quality known as a. durability. b. reliability. c. performance. d. serviceability.
B Difficulty: Easy
10 Solution: QPR=97.5/($8000+$25)*100=1.21 65. Modern Inc. manufactures low-cost tables at a processing cost of $80 per table. The company produces 100 units per day and averages 90% good quality resulting in 10% defective items. Fifty percent of the defective units are reworked prior to shipment to Modern's distribution center. The rework cost is $10 per unit. If the rework cost is increased to $50 the quality productivity ratio (QPR) is a. approximately 1.10. b. approximately 1.15. c. approximately 1.20. d. approximately 125.
B Difficulty: Moderate
3 58. Which of the following quality tools displays the frequency of data related to a quality problem? a. Fishbone diagram b. Histogram c. Scatter diagram d. Process flow chart
B Difficulty: Moderate
4 69. Research has shown that companies achieving high customer satisfaction ratings a. attract new suppliers. b. retain existing customers. c. attract new employees. d. None of these answer choices is correct.
B Difficulty: Moderate
5 72. ACSI measures ________________ the goods and services of seven economic sectors. a. product quality of b. customer satisfaction with c. product demand for d. market share for
B Difficulty: Moderate
5 70. A relationship between a company and a supplier based on mutual quality standards is called a. sourcing. b. partnering. c. sourcing and partnering d. None of these answer choices is correct.
B Difficulty: Moderate
8 77. At the heart of Six Sigma is the ____________________ strategy, a five-step process applied to improvement projects. a. continuous improvement b. breakthrough c. champion d. None of these answer choices is correct.
B Difficulty: Moderate
9 56. ______ failure costs include scrap, rework, and downtime. a) External b) Internal c) Process d) System
B Difficulty: Moderate
9 57. Which of the following quality tools display major causes of poor quality on a graph? a. Process flow chart b. Fishbone diagram c. Histogram d. Scatter diagram
B Difficulty: Moderate
9 80. The cost of achieving poor quality includes a. prevention costs. b. appraisal costs. c. internal failure costs. d. All of these answer choices are correct.
B Difficulty: Moderate
10 Solution: 100/(0.98*0.97*0.96*0.92)=119 units 53. A production process consists of the following four stages with the average percentage of good quality at each stage as shown. Stage Average Percentage of Good Quality 1 0.95 2 0.95 3 0.93 4 0.97 What is the daily production yield for the company if daily input is 500 units? a. 485 units b. 465 units c. 407 units d. 400 units
C Difficulty: Hard
10 Solution: 350/(0.95*0.95*0.93*097)=430 units 55. The costs associated with developing a quality management system are known as a) training costs. b) design costs. c) quality planning costs. d) information costs.
C Difficulty: Hard
10 Solution: QPR=95/($8000+$250)*100=1.15 66. Modern Inc. manufactures low-cost tables at a processing cost of $80 per table. The company produces 100 units per day and averages 90% good quality resulting in 10% defective items. Fifty percent of the defective units are reworked prior to shipment to Modern's distribution center. The rework cost is $10 per unit. If the production cost is decreased to $70 the quality productivity ratio (QPR) is a. approximately 1.15. b. approximately 1.25. c. approximately 1.35. d. approximately 1.45.
C Difficulty: Moderate
10 Solution: QPR=95/($8000+$50)*100=1.18 63. Modern Inc. manufactures low-cost tables at a processing cost of $80 per table. The company produces 100 units per day and averages 90% good quality resulting in 10% defective items. Fifty percent of the defective units are reworked prior to shipment to Modern's distribution center. The rework cost is $10 per unit. If production is increased to 200 units per day, the quality productivity ratio (QPR) is a. approximately 1.00. b. approximately 1.10. c. approximately 1.20. d. approximately 1.30.
C Difficulty: Moderate
10 Solution: Yield=100*0.90+10*0.50=95 62. Modern Inc. manufactures low-cost tables at a processing cost of $80 per table. The company produces 100 units per day and averages 90% good quality resulting in 10% defective items. Fifty percent of the defective units are reworked prior to shipment to Modern's distribution center. The rework cost is $10 per unit. The quality productivity ratio (QPR) is a. approximately 1.00. b. approximately 1.10. c. approximately 1.20. d. approximately 1.30.
C Difficulty: Moderate
11 82. ISO in ISO 9000 is a. not an acronym for International Organization for Standardization. b. a word derived from a Greek word meaning equal. c. both a word derived from a Greek word meaning equal and not an acronym for International Organization for Standardization. d. None of these answer choices is correct.
C Difficulty: Moderate
2 49. A relationship between a firm and its supplier where the supplier agrees to meet the firms' quality standards and the firm enters into a long-term purchasing agreement with the supplier is known as a. Outsourcing. b. vertical integration. c. partnering. d. conformance.
C Difficulty: Moderate
7 74. A(n) ____________ is the best level of quality achievement in one company that others seek to match or exceed. a. attribute b. target value c. benchmark d. variable
C Difficulty: Moderate
8 78. Quality costs include the cost of _____________________. a. achieving good quality b. poor quality c. both achieving good quality and generating poor quality d. None of these answer choices is correct.
C Difficulty: Moderate
10 Solution: QPR=95/($7000+$50)*100=1.35 67. Total quality management (TQM) was originated in the 1980s as a _____________ management approach to improve quality. a. Korean b. American c. Japanese d. European
CDifficulty: Moderate Learning Objective; LO 4 Which of the following is not a basic principle of total quality management (TQM)? a. Quality must be measured. b. The quality standard is no defects. c. Quality can and must be managed. d. The producer defines quality. Ans: D Difficulty: Moderate
6 51. A production process consists of the following four stages with the average percentage of good quality at each stage as shown. Stage Average Percentage of Good Quality 1 0.92 2 0.95 3 0.96 4 0.93 What is the daily production yield for the company if daily input is 200 units? a. 192 units b. 188 units c. 184 units d. 156 units
D Difficulty: Hard
1 42. All of the following are dimensions of quality for manufactured products, except a. conformance. b. reliability. c. durability. d. feasibility.
D Difficulty: Moderate
2 47. W. Edwards Deming believed that primary responsibility for quality improvement rested with a. the firm's employees only. b. the fIrm's management only. c. research engineers and consulting statisticians only. d. both the employees and management of the firm.
D Difficulty: Moderate
3 59. Which of the following quality tools displays the relationship between two variables on a graph a. Process flow chart b. Fishbone diagram c. Histogram d. Scatter diagram
D Difficulty: Moderate
3 61. Modern Inc. manufactures low-cost tables at a processing cost of $80 per table. The company produces 100 units per day and averages 90% good quality resulting in 10% defective items. Fifty percent of the defective units are reworked prior to shipment to Modern's distribution center. What is the product yield? a. 80 b. 85 c. 90 d. 95
D Difficulty: Moderate
5 71. The primary means for gathering information from customers and measuring customer satisfaction is a. a sampling program. b. a phone interview. c. feedback from competitors. d. a survey.
D Difficulty: Moderate
40. All of the following are parts of DMAIC except a) define. b) measure. c) analyze. d) improvise.
D. Difficulty: Moderate
5 50. Directly involving employees in the quality management process is referred to as a. partnering. b. a quality circle. c. Six Sigma. d. participative problem solving.
d Difficulty: Easy
