Purchasing Chapter 8

All of the following are factors that influence how much attention supply management should commit to managing supplier quality except _____.

*a. the physical distance between the supplier and buyer facilities b. the ability of a supplier to affect a buyer's total quality c. the internal resources available to support supplier quality management and improvement d. the ability of a buying firm to practice world-class quality e. a buyer's ability to collect and analyze quality-related data

The average North American manufacturing firm spends _____ percent of its cost of goods sold on purchased goods and services.

55%

68. _____ is the avoidance of nonconformance in products and services by not allowing errors or defects to occur in the first place. a. Detection b. Inspection c. Prevention d. The hidden factory e. Optimization

C. Prevention

A comprehensive supplier quality manual does not need to describe the supplier selection and evaluation processes.

False

A supplier quality manual may delineate the maximum process required for the supplier regarding inspections, use of statistical process control, continuous improvement, testing, sample evaluations, performance improvement, and the like.

False

An emphasis on finished product rather than process demands that a supplier provide evidence of its process capability to the buyer on an ongoing, regular basis.

False

Because of the nature of many cost accounting systems, quality costs are rarely aggregated into various overhead accounts, which would mask their real impact on the finances and operations of a company.

False

Companies that are unable to commit the necessary resources to assess or certify supplier quality on their own will never accept ISO 9000:2008 registration as proxy evidence of a supplier's quality management capability.

False

Deming indicates that the only proper way of dealing with defects is to inspect for and remove them from the process.

False

Deming's 14 Points constitute an à la carte menu of quality improvement activities, from which a company can pick and choose only those with which they agree.

False

Perhaps the most dramatic difference between traditional quality control methods and total quality management thinking involves a shift from a process orientation to a product orientation.

False

Reliance on a firm's suppliers for raw materials, components, subassemblies, and even finished products is steadily decreasing.

False

The Cpk value is always larger than the Cp index.

False

The TQM-focused organization must look at increasing process variation and seeking innovation in both product and process.

False

There is a minimal gap between real leadership and what we traditionally think of as management or supervision.

False

Working with more suppliers allows the supply manager to concentrate on building trusting, collaborative relationships and supplier loyalty while improving quality in purchased goods and services.

False

The concept of _____ consists of rework and disposal efforts that increase cost and decrease productivity.

The Hidden Factory

A buyer cannot realistically expect the highest levels of supplier performance when the supplier must respond to frequent or short lead time changes.

True

All delivery activities in a process can be considered wasteful.

True

Deming's quality philosophy has often been criticized because it does not prescribe specific firm-level actions and programs for management to follow

True

Designed-in systemic variation is a managerial concern, not a labor issue.

True

The MBNQA is a competition and implies that a winning organization excels not only in quality management but also in quality achievement.

True

The extensive use of corrective action requests supports prevention of nonconforming defects.

True

The focal point of the Deming philosophy is that the entire organization should be focused on satisfying customer needs, whether the customer is internal or external.

True

The performance appraisal systems in most organizations create real barriers to pride in workmanship as they promote competitive behavior and quantity of work over quality.

True

82. Which of the following is not an example of a prevention cost? a. Incoming material inspections. b. Quality planning. c. Equipment calibration. d. Development of a quality manual. e. Maintenance of a quality management system.

a. Incoming material inspections.

Which of the following is not one of Deming's 14 points?

a. Institute training. b. Drive out fear. *c. Optimize the efforts of individuals working alone. (LO #4) d. Stop making decisions purely on the basis of price. e. Improve constantly and forever.

Which of the following is not one of the expectations that suppliers have in a typical supply chain relationship?

a. Minimizing product design changes once production begins. b. Providing visibility to future purchase volume requirements. c. Sharing early access and visibility to new-product requirements. d. Valuing accurate and timely payment of invoices. *e. Having the buyer co-locate its buying, engineering, and quality staffs into a supplier's facility.

Which of the following is not one of the unique features of Deming's philosophy?

a. Variation is the primary source of quality nonconformance. b. Although quality is everyone's responsibility, senior management has the ultimate responsibility for quality improvement. c. Intrinsic motivation is more powerful than extrinsic motivation. *d. Interacting parts of a system must be treated individually, not as a whole. e. Predictions must be grounded in theory that helps to understand cause-and-effect relationships.

Which of the following is false concerning Deming's philosophy on numerical quotas and measurement by objective?

a. Workers may game the system to make their individual production and output goals. b. Many numerical based goals and objectives are often developed arbitrarily. c. Goals are often short term in their focus. *d. Output standards fully support TQM improvements and other quality initiatives. e. Many numerically-based goals and objectives are beyond the control of the worker.

67. All of the following are positive results from early supplier design involvement except _____. a. longer lead-times in order to find and fix product defects before they get to the customer b. better quality and product design c. establishing reasonable tolerances d. suppliers can anticipate and begin preproduction work e. improved product quality and manufacturability

a. longer lead-times in order to find and fix product defects before they get to the customer

80. Which of the following is not an example of an internal failure cost? a. Process troubleshooting. b. Equipment calibration. c. Re-inspection following detection of a defect. d. Production downtime caused by defects. e. Scrap and process waste.

b. Equipment calibration.

90. Which of the following is not one of the benefits to the buyer of a supplier achieving ISO 9001:2008 registration? a. Few buying firms have sufficient size or resources to independently develop and implement their own comprehensive supplier certification audits. b. The supplier may develop interest from other buyers wanting to do business with it. (LO #5) c. Third party registration may provide insight into a supplier's quality system conformance that a buyer may otherwise lack. d. The buying firm receives the benefit of a supplier quality certification without actually having to conduct its own quality certification audits. e. The supplier assumes responsibility for meeting the ISO standards and paying its own registration fees.

b. The supplier may develop interest from other buyers wanting to do business with it. (LO #5)

89. In ISO 9000:2008, (the) _____ consists of a quality manual, related procedures, and work instructions. a. third-party registration b. quality management system c. environmental management system d. supplier certification e. All of the above.

b. quality management system

69. A _____ program is the formal process of verifying, usually through an intensive cross-functional on-site audit, that a supplier's processes and methods actually produce consistent and conforming quality. a. supplier selection and evaluation program b. supplier certification c. Six Sigma d. process capability e. zero defects

b. supplier certification

75. _____ include the direct, out-of-pocket costs of measuring quality, specifically checking for possible defects. a. Six Sigma costs b. Internal failure costs c. Appraisal costs d. External failure costs e. Prevention costs

c. Appraisal costs

79. All of the following are examples of appraisal costs except _____. a. laboratory testing of prototypes and samples b. production inspection activities c. development and maintenance of a quality management system d. development and maintenance of a quality management system e. incoming materials inspections

c. development and maintenance of a quality management system

To remain current registration, ISO 9001:2008 registration must be accomplished every _____. a. 10 years b. 5 years c. 2 years d. 3 years e. There is no expiration date for ISO 9001:2008 registration.

d. 3 years

71. The _____ process capability index quantifies the relationship between the process's natural tolerance limits and the product's specifications using a two-sided approach, regardless of process centering. a. Cpk b. x-bar c. MRP d. Cp e. Six Sigma

d. Cp

83. In _____, there is an intense focus on identifying and eliminating common causes of waste that add cost, time, and effort to the product or service while not adding value to the customer. a. supplier evaluation and selection process b. the MBNQA c. SIO 14000:2004 d. the Honda BP process e. None of the above.

d. the Honda BP process

72. The _____ process capability index does not adequately account for situations where the process is not closely centered on the nominal specification target value. a. Cxy b. optimization c. Six Sigma d. Cpk e. Cp

e. Cp

91. The _____ series of standards, originally established in 1993, is designed to promote environmental awareness and protection as well as pollution prevention. a. MBNQA b. ISO 9001:2008 c. Zero defects d. Six Sigma e. ISO 14001:2004

e. ISO 14001:2004

70. _____ is the ability of a process to generate outputs that meet engineering specifications and/or customer requirements and refers to the normal behavior of a process when operating in a state of statistical control. a. Process optimization b. Six Sigma c. Supplier certification d. Quality at the source e. Process capability

e. Process capability

Which of the following is not one of the seven wastes identified by the Honda BP process? a. Overproduction. b. Delivery. c. Waste in the work itself. d. Inventory. e. Product advertising and promotion.

e. Product advertising and promotion.

86. _____ is the organized and systematic study of every element of cost in a part, material, process, or service to ensure that it fulfills its design and operational functions at the lowest possible total cost. a. Six Sigma b. Process capability c. New product development d. CAD/CAM e. VA/VE

e. VA/VE

94. An effective supplier quality manual will contain all of the following except _____. a. documentation control b. testing and acceptance procedures c. metrics and measurement protocols d. basic responsibilities of both the buyer and the supplier e. approved accounting expenses

e. approved accounting expenses