OPS & SCM -- Chapter 9

Six sigma, a process improvement objective for many organizations, literally translate to how many defects per million opportunities? - 5.4 - 4.3 - 2.1 - 1.2 - 3.4

- 3.4 referring to a program designed to reduce the occurrence of defects to achieve lower costs and improved customer satisfaction

How do businesses with good or excellent quality products and/or services benefit? select all that apply - Ability to command premium prices - Greater customer loyalty - Higher liability costs - Fewer labor disputes - Increased market share

- Ability to command premium prices - Greater customer loyalty - Increased market share Business organizations with good or excellent quality typically benefit in a variety of ways: an enhanced reputation for quality, the ability to command premium prices, an increased market share, greater customer loyalty, lower liability costs, and fewer production or service problems—which yields higher productivity, fewer complaints from customers, lower production costs, and higher profits.

Who in an organization has responsibility for Quality? - Top Management - Manufacturing - Procurement - All Members - Quality Assurance

- All Members It is true that all members of an organization have some responsibility for quality, but certain parts of the organization are key areas of responsibility

Select the 3 different cost categories of Quality. - Appraisal costs - Failure costs - Prevention costs - Repair costs - Customer service costs

- Appraisal costs - Failure costs - Prevention costs Appraisal costs relate to inspection, testing, and other activities intended to uncover defective products or services, or to assure that there are none. Prevention costs relate to attempts to prevent defects from occurring. Failure costs are incurred by defective parts or products or by faulty services.

What is a good working definition of Quality? - Customer dependent - Value for price - One time improvement

- Customer dependent

Which of the following supply chain actions affect an organization's Quality? select all that apply - Defects in purchased parts - Late or missed deliveries - Lead times too short

- Defects in purchased parts - Late or missed deliveries

The 4 primary determinants of Quality such that a product or service satisfies its intended purpose are which of the following? - Design, conformance, ease of use and after-delivery service - Specifications, manufacturing, user instructions, shipping cost - Dimensions, shape, features, overall appearance

- Design, conformance, ease of use and after-delivery service

Definition of Process Improvement - Documentation, measurement and analysis of a process for the purpose of improving it - Applying the Plan-Do-Study-Act cycle to an organization's problems - Implementing total quality management at an organization's process level

- Documentation, measurement and analysis of a process for the purpose of improving it Typical goals of process improvement include increasing customer satisfaction, achieving higher quality, reducing waste, reducing cost, increasing productivity, and reducing processing time.

The dimensions of product quality are the same as for service quality. - True - False

- False Product quality is often judged on 9 dimensions of quality: Performance—main characteristics of the product Aesthetics—appearance, feel, smell, taste Special features—extra characteristics Conformance—how well a product corresponds to design specifications Reliability—dependable performance Durability—ability to perform over time Perceived quality—indirect evaluation of quality (e.g., reputation) Serviceability—handling of complaints or repairs Consistency—quality doesn't vary

SERVQUAL as a quality management audit tool focuses primarily on what type of feedback? - Courtesy and empathy of service employees to customers - Tangibles such as facilities and equipment in a service setting - Gaps between perceptions and expectations (customers, managment, etc)

- Gaps between perceptions and expectations (customers, managment, etc) Of particular interest are any gaps or discrepancies in service quality. It focuses on five of the previously mentioned service dimensions that influence customers' perceptions of service quality: tangibles, reliability, responsiveness, assurance, and empathy.

Failure to correct and/or report defective product or substandard service can cause which of the following? select all that apply - Increased productivity and higher profits - Increase in accident rates among employees - Inconveniences and injuries to customers - Decreased liability costs and fewer lawsuits

- Increase in accident rates among employees - Inconveniences and injuries to customers

What benefits to society in general result from widespread ISO certification? select all correct - Increase in levels of quality and reliability, productivity and safety - Provide a basis for health, safety and environmental legislation - Ensure regulation of currency exchange rates for international commerce - Facilitation of international trade with uniform standards

- Increase in levels of quality and reliability, productivity and safety - Provide a basis for health, safety and environmental legislation - Facilitation of international trade with uniform standards

Which of the following reasons explain why implementing Total Quality Management in an organization may not be successful? select multiple - Quality viewed as quick fix vs long-term commitment - Focus on long-term financial results - Lack of customer focus and company-wide definition of quality - Lack of managment support and leadership for change - Organization does not have a quality department

- Lack of customer focus and company-wide definition of quality - Quality viewed as quick fix vs long-term commitment - Lack of managment support and leadership for change

What are the various evaluation categories of the Malcolm Baldridge Award? select all correct - Customer focus & Business results - Leadership & Strategic planning - Information/Analysis & Process management - Quantity & Supply chain management - Human Resource Management - Debt repayment & After-delivery service

- Leadership & Strategic planning - Information/Analysis & Process management - Human Resource Management - Customer focus & Business results

The 4 major areas affected by poor quality are which of the following? - Liability, costs, marketing, productivity - Loss of business, liability, productivity, costs - Loss of business, costs, policy changes, loss of profit

- Loss of business, liability, productivity, costs

The dimensions of quality are too abstract to be operationalized (acted upon) and must subsequently be broken down and made what? - Conceptualized - Bulletized - Measurable - Performable

- Measurable

What are the responsibilities of Production/Operations with respect to Quality? select all that apply - Monitor processes and correct root causes of problems - Determine customer needs and report problems with products/services - Produce to design specifications - Provide quality training for the overall organization

- Monitor processes and correct root causes of problems - Produce to design specifications Business organizations with good or excellent quality typically benefit in a variety of ways: an enhanced reputation for quality, the ability to command premium prices, an increased market share, greater customer loyalty, lower liability costs, and fewer production or service problems—which yields higher productivity, fewer complaints from customers, lower production costs, and higher profits.

Which of the following is true about following the steps of problem solving? - Generate potential solutions before analyzing the problem - Monitor the solution to see if goal is accomplished after implementation - Establish performance measures and collect data comes before defining the problem

- Monitor the solution to see if goal is accomplished after implementation Step 1 Define the problem and establish an improvement goal. Give problem definition careful consideration; don't rush through this step because this will serve as the focal point of problem-solving efforts. Step 2 Develop performance measures and collect data. The solution must be based on facts. Possible tools include check sheet, scatter diagram, histogram, run chart, and control chart. Step 3 Analyze the problem. Possible tools include Pareto chart, cause-and-effect diagram. Step 4 Generate potential solutions. Methods include brainstorming, interviewing, and surveying. Step 5 Choose a solution. Identify the criteria for choosing a solution. (Refer to the goal established in Step 1.) Apply criteria to potential solutions and select the best one. Step 6 Implement the solution. Keep everyone informed. Step 7 Monitor the solution to see if it accomplishes the goal. If not, modify the solution, or return to Step 1. Possible tools include control chart and run chart.

Total Quality Management is not without its detractors. Which of the below are some criticisms? - Pursuit of incremental improvements when dramatic improvements may be warranted - Quality efforts may not be tied to results thus difficult in measuring success - Quality decisions may not be tied to market performance - Empowered employees may make unwise decisions about their work processes

- Quality efforts may not be tied to results thus difficult in measuring success - Pursuit of incremental improvements when dramatic improvements may be warranted - Quality decisions may not be tied to market performance

Which of the following determinants of quality refers to the inclusion or exclusion of certain product or service features? - Ease of use - Service after delivery - Quality of conformance - Quality of design

- Quality of design

Which dimension of quality is shared by both products and services? - Special Features - Tangibles - Reliability - Assurance

- Reliability

Which of the following statements is/are correct about the Deming Prize? - Named after a German quality guru - Senior management must be involved in quality to win - Focuses on statistical quality control - Only awarded to Japanese companies

- Senior management must be involved in quality to win - Focuses on statistical quality control

Global supply chain quality problems/risks include which of the following? select all that apply - Substandard materials or work methods used overseas - Lack of quality regulation and government inspections of producers - Variation too high in product output and does not meet specifications - Using supplier labor for quality assurance audits

- Substandard materials or work methods used overseas - Lack of quality regulation and government inspections of producers - Variation too high in product output and does not meet specifications

Successful management of quality requires what? - That managers have insights on various aspects of fixed and variable costs - That managers have insights on various aspects of quality - That managers have insights to employee performance

- That managers have insights on various aspects of quality

Failure to carefully plan a TQM program before embarking on it can lead to false starts, employee confusion, and meaningless results. - True - False

- True

Put the steps in the benchmarking approach in logical order - How can we change to match or exceed the best practices? - What organization do it best? - Given they are the best, how do they do it? - How do we do it now?

- What organization do it best? - Given they are the best, how do they do it? - How do we do it now? - How can we change to match or exceed the best practices?

TQM implementation involves a cultural change from traditional organizations. Select all which correctly contrast the shift from traditional to TQM approaches - from having small or absent quality dept to large - from getting shipments from suppliers every day to less frequent - from assigning blame and punishing to identifying and resolving problems - from being product oriented to process oriented - from being focused on the bottom-line only to focus on customer satisfaction

- from being focused on the bottom-line only to focus on customer satisfaction - from assigning blame and punishing to identifying and resolving problems - from being product oriented to process oriented

Select all the phrases closely associated with fail-safing, a technique use in Total Quality Management - benchmarking - kaizen - pokayoke - standardizing - mistake proofing

- pokayoke - mistake proofing

Put the stages of quality management evolution in order with 1 being the earliest and 5 being the latest. - Scientific Management applied observation methods and inspection to manufacturing. - In the guild era, skilled craftsmen produced the entire product with pride of workmanship. - During World War II and post-war era, industries used statistical sampling methods on products & raw materials - Quality efforts turned to product design evaluation, expanded to service industry then evolved to prevention techniques - With division of labor after the industrial revolution workers felt less responsible for the final product.

1. In the guild era, skilled craftsmen produced the entire product with pride of workmanship. 2. With division of labor after the industrial revolution workers felt less responsible for the final product. 3. Scientific Management applied observation methods and inspection to manufacturing. 4. During World War II and post-war era, industries used statistical sampling methods on products & raw materials 5. Quality efforts turned to product design evaluation, expanded to service industry then evolved to prevention techniques

Match the quality award with the issuing government Baldridge Award Deming Prize European Quality Award USA European Union Japan

Baldridge Award -- USA Deming Prize -- Japan European Quality Award -- European Union

One dimension of Quality is product Performance. Match the customer expectation result with the different performance relationship: Meets Exceeds Does not meet Performance < Expectations Performance > Expectations Performance = Expectations

DOES NOT MEET Performance < Expectations EXCEEDS Performance > Expectations MEETS Performance = Expectations

Match the quality management guru with their key contribution. Shewhart Deming Feigenbaum Crosby Ishikawa - Quality is total field; customer defines quality - Cause-and-effect diagrams; quality circles - 14 points; special vs. common cause of variation - Quality is free; zero defects - Statistical control charts

Feigenbaum - Quality is total field; customer defines quality Ishikawa - Cause-and-effect diagrams; quality circles Deming - 14 points; special vs. common cause of variation Crosby - Quality is free; zero defects Shewhart - Statistical control charts

Match the Quality Tool with the description Flowchart Check Sheet Histogram Pareto Chart Empirical frequency distribution chart Diagram of process A tally of problems/events by category Diagram arranging category frequencies from highest to lowest

HISTOGRAM = Empirical frequency distribution chart FLOWCHART = Diagram of process CHECK SHEET = A tally of problems/events by category PARETO CHART = Diagram arranging category frequencies from highest to lowest

Match the ISO certification number with the title. ISO 9000 ISO 14000 ISO 24700 Environmental Management Quality Management Quality & Performance of Office Equipment

ISO 14000 = Environmental Management concerns what an organization does to minimize harmful effects to the environment caused by its operations ISO 9000 = Quality Management It concerns what an organization does to ensure that its products or services conform to its customers' requirements ISO 24700 = Quality & Performance of Office Equipment specifies product characteristics for use in an original equipment manufacturer/3rd party declaration of conformity to demonstrate that a marketed product that contains reused components performs equivalent to new, meets equivalent-to-new component specifications/performance criteria, and continues to meet all the safety and environmental criteria required by responsibly built products

Math the steps of the problem solving Plan-Do-Study-Act cycle with the defined activities PLAN DO STUDY ACT - Implement change plan on a small scale and collect data for evaluation. - Given successful results, standardize the new plan and communicate change. Provide training. - Evaluate the data collected during implementation and check against plan goals - Define problem then document, collect and analyze data to determine possible causes.

PLAN - Define problem then document, collect and analyze data to determine possible causes. DO - Implement change plan on a small scale and collect data for evaluation. STUDY - Evaluate the data collected during implementation and check against plan goals ACT - Given successful results, standardize the new plan and communicate change. Provide training.