MGMT 435 CH 7

Planning, control, and ___________ are the three-component cycle required for ISO 9000 implementation. a. Reporting b. Documentation c. Testing d. Budgeting

B

Which of the following statements is not part of Deming's 14-point philosophy? a. Create constancy of purpose for improvements of product and service. b. Promote numerical goals for the workforce. c. Constantly and forever improve the system of production and service. d. Cease dependence on mass inspection.

B

Which one the following is not a guiding principle of lean philosophy? a. Satisfy the needs of customers by doing only value-added activities. b. Be flexible in response to customer demands. c. Define the value stream by flowcharting the process. d. Eliminate waste.

B

What are the two dimensions in the DEA strategic matrix? a. Efficiency and profit b. Efficiency and quality c. Profit and quality d. Profit and location

A

Which of the following is not an element of a Quality Improvement Program? a. Emphasizing subjective data over difficult-to-analyze objective data b. Maintaining SOPs for routine and crisis situations c. Assuming employees are self-motivated and innovative d. Focusing on customer satisfaction

A

Because customers participate directly in the service process, the success of technological innovation is dependent upon: a. the user-friendliness of the innovation. b. the ability of customers to pay for the service. c. customer acceptance. d. market research.

C

Which one of the following is not a principle of Deming's philosophy? a. Customer satisfaction b. Management by facts c. Employee loyalty d. Respect for people

C

All but one of the following are quality tools for analysis and problem solving. a. Run chart b. Control chart c. Flow chart d. Bar chart

D

Data Envelopment Analysis (DEA) is a method for: a. measuring a firm's quality performance by comparing it with other companies that are recognized as "best in class." b. determining the feasibility of technological innovations in service operations. c. analyzing the gap between the service customer's expectations and perceptions. d. comparing the efficiency of multiple service units that provide similar services.

D

Which among the following is not a category that is eligible for the Malcolm Baldrige National Quality award? a. Manufacturing companies b. Service firms c. Small businesses d. Government agencies

D

Which of the following categories carries the highest point value on the examination paper for the Malcolm Baldrige National Quality Award? a. Leadership b. Strategic quality planning c. Management of process quality d. Customer focus and satisfaction

D

Which pair of parameters describes the "candidates for divestiture" quadrant in the DEA strategic matrix? a. Low efficiency, low profit b. Low efficiency, high profit c. High efficiency, high profit d. High efficiency, low profit

D

11. The objective of Six Sigma is to eliminate variation in process performance.

FALSE

15. The objective of lean service is a purposeful flow of satisfied customers.

FALSE

2. Data envelopment analysis (DEA) is best used in an environment of low divergence and high complexity.

FALSE

4. Continuous improvement is a valuable concept, but it lacks measurement techniques.

FALSE

5. The Malcolm Baldrige Quality Award measures the quality of products manufactured or services delivered.

FALSE

7. Pareto chart is an arrangement of data where the causes of a problem are arranged in ascending frequency of occurrence in order to highlight the most likely cause.

FALSE

1. DEA circumvents the need to develop standard costs for each service when comparing the efficiency of multiple service units that provide similar services.

TRUE

10. The Deming wheel is a repetitive cycle where quality improvements result from continuous incremental turns of the wheel.

TRUE

13. A process capability index of two centered on the mean just meets Six Sigma standards.

TRUE

14. Lean service is based upon the Toyota Production System.

TRUE

3. Data Envelopment Analysis (DEA), when used repeatedly, can facilitate the competitive strategy of cost leadership.

TRUE

6. Benchmarking measures a firm's quality performance by comparing it to the performance of other companies that are known for being "best in class."

TRUE

8. ISO 9002 does not apply to organizations that perform design and service activities.

TRUE

9. The fishbone chart offers a structured approach for a team to identify, explore, and display graphically all of the possible causes of a problem.

TRUE