SCMA 331 Chapter 6

5) Companies with the highest levels of quality are how many times more productive than their competitors with the lowest quality levels? A) 2 B) 3 C) 4 D) 5 E) None of the above because quality has no impact on productivity (units/labor hr.).

D) 5

6) A successful quality strategy features which of the following elements? A) an organizational culture that fosters quality B) an understanding of the principles of quality C) engaging employees in the necessary activities to implement quality D) A and C E) A, B, and C

E) A, B, and C

21) What is a set of quality standards developed by the International Organization for Standardization? A) Malcolm Baldrige National Quality Award B) Deming Prize C) ISO 14000 D) IOS 2009 E) ISO 9000

E) ISO 9000

11) Which of the following is NOT one of the major categories of costs associated with quality? A) prevention costs B) appraisal costs C) internal failure costs D) external failure costs E) None of the above; they are all major categories of costs associated with quality.

E) None of the above; they are all major categories of costs associated with quality.

4) Arnold Palmer Hospital uses which of the following quality management techniques? A) Pareto charts B) flowcharts C) benchmarking D) just-in-time E) The hospital uses all of the above techniques.

E) The hospital uses all of the above techniques.

18) Stakeholders who are affected by the production and marketing of poor quality products include: A) stockholders, employees, and customers. B) suppliers and creditors, but not distributors. C) only stockholders, creditors, and owners. D) suppliers and distributors, but not customers. E) only stockholders and organizational executives and managers.

A) stockholders, employees, and customers.

23) The work by ________ regarding how people learn from each other's successes led to the field of cross-functional teamwork

Armand Feigenbaum

15) Which of the following statements is NOT true? A) Self-promotion is not a substitute for quality products. B) Inferior products harm a firm's profitability and a nation's balance of payments. C) Product liability transfers from the manufacturer to the retailer once the retailer accepts delivery of the product. D) Quality-be it good or bad-will show up in perceptions about a firm's new products, employment practices, and supplier relations. E) Legislation such as the Consumer Product Safety Act sets and enforces product standards by banning products that do not reach those standards.

C) Product liability transfers from the manufacturer to the retailer once the retailer accepts delivery of the product.

8) "Making it right the first time" is: A) an unrealistic definition of quality. B) a user-based definition of quality. C) a manufacturing-based definition of quality. D) a product-based definition of quality. E) the definition of quality proposed by the American Society for Quality

C) a manufacturing-based definition of quality.

10) According to the manufacturing-based definition of quality: A) quality is the degree of excellence at an acceptable price and the control of variability at an acceptable cost. B) quality depends on how well the product fits patterns of consumer preferences. C) even though quality cannot be defined, you know what it is. D) quality is the degree to which a specific product conforms to standards. E) quality lies in the eyes of the beholder.

D) quality is the degree to which a specific product conforms to standards

2) An improvement in quality must necessarily increase costs.

False

Describe how ISO 9000 has evolved in the past several years.

In 2009, the latest modification of the standard, ISO 9004: 2009, emphasized how an organization can use a quality management approach to achieve sustained success. This version encourages organizations to plan for their economic survival through continuing and systematic improvement in performance, efficiency, and effectiveness.

In a sentence or two, summarize the contribution of Philip Crosby to quality management.

In his book, Quality Is Free, Crosby pointed out that the costs of poor quality are understated, and that understatement made it easier for firms to accept low quality results. He also promoted "zero defects" and doing the job right the first time.

22) ________ costs result from production of defective parts or services before delivery to the customer.

Internal failure

2) TQM is important because each of the ten decisions made by operations managers deals with some aspect of identifying and meeting customer expectations.

TRUE

3) The phrase Six Sigma has two meanings. One is statistical, referring to an extremely high process, product, or service capability; the other is a comprehensive system for achieving and sustaining business success.

TRUE

Continuous improvement is based on the philosophy that any aspect of an operation can be improved.

TRUE

Kaizen is similar to TQM in that both are focused on continuous improvement.

TRUE

Quality circles empower employees to improve productivity by finding solutions to work-related problems in their work area.

TRUE

25) Identify the four costs of quality. Which one is hardest to evaluate? Explain.

The four costs are internal failure, external failure, prevention, and appraisal. The hardest category to estimate is external failure costs, or costs that occur after delivery of defective parts or services. These costs are very hard to quantify.

Quality has at least three categories of definitions; identify them. Provide a brief explanation of each.

The three categories of quality are user based (in the eyes of the beholder), manufacturing based (conforming to standards), and product-based (measurable content of product).

26) State the American Society for Quality's definition of quality. Of the three "flavors" or categories of quality definitions, which type is it? Explain.

The totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs." This is user based, as evidenced by the reference to needs, not to specifications or ingredients.

8) Arnold Palmer Hospital uses ________ to seek new ways to reduce readmission rates.

continuous improvement

24) Not only customers, but stockholders, suppliers, and others, are among the ________ whose values must be protected in making ethical decisions concerning the quality of products.

stakeholders

The focus of ISO 9000 is to enhance success through what eight quality management principles?

(1) top management leadership, (2) customer satisfaction, (3) continual improvement, (4) involvement of people, (5) process analysis, (6) use of data-driven decision making, (7) a systems approach to management, and (8) mutually beneficial supplier relationships

19) Regarding the quality of design, production, and distribution of products, an ethical requirement for management is to: A) determine whether any of the organization's stakeholders are being wronged by poor quality products. B) gain ISO 9000 certification for the organization. C) obtain a product safety certificate from the Consumer Product Safety Commission. D) have the organization's legal staff write disclaimers in the product instruction booklets. E) compare the cost of product liability to the external failure cost.

A) determine whether any of the organization's stakeholders are being wronged by poor quality products

7) Quality can improve profitability by reducing costs. Which of the following is not an aspect of reduced costs by quality improvements? A) flexible pricing B) increased productivity C) lower rework and scrap costs D) lower warranty costs E) All of the above are aspects of reduced costs by quality improvements.

A) flexible pricing

7) "Quality lies in the eyes of the beholder" is: A) an unrealistic definition of quality. B) a user-based definition of quality. C) a manufacturing-based definition of quality. D) a product-based definition of quality. E) the definition of quality proposed by the American Society for Quality.

B) a user-based definition of quality.

9) Three broad categories of definitions of quality are: A) product quality, service quality, and organizational quality. B) user based, manufacturing based, and product based. C) internal, external, and prevention. D) low-cost, response, and differentiation. E) Pareto, Shewhart, and Deming.

B) user based, manufacturing based, and product based.

17) "Quality Is Free," meaning that the costs of poor quality have been understated, is the work of: A) W. Edwards Deming. B) Joseph M. Juran. C) Philip B. Crosby. D) Crosby, Stills, and Nash. E) Armand Feigenbaum.

C) Philip B. Crosby.

3) Which of the following statements regarding Arnold Palmer Hospital is FALSE? A) The hospital uses a wide range of quality management techniques. B) The culture of quality at the hospital includes employees at all levels. C) The hospital scores very highly in national studies of patient satisfaction. D) The hospital's high quality is measured by low readmission rates, not patient satisfaction. E) The design of patient rooms, even wall colors, reflects the hospital's culture of quality.

D) The hospital's high quality is measured by low readmission rates, not patient satisfaction.

16) "The employee cannot produce products that on average exceed the quality of what the process is capable of producing" expresses a basic philosophy in the writings of: A) Vilfredo Pareto. B) Armand Feigenbaum. C) Joseph M. Juran. D) W. Edwards Deming. E) Philip B. Crosby.

D) W. Edwards Deming.

20) To become ISO 9000 certified, organizations must: A) document quality procedures. B) have an onsite assessment. C) have an ongoing series of audits of their products or service. D) all of the above E) none of the above

D) all of the above

14) GE's recall of 3.1 million dishwashers cost the company more in repairs than the value of the actual dishwashers. This is an example of which quality principle? A) PDCA B) internal failure costs C) appraisal costs D) cost of poor quality is underestimated E) prevention costs

D) cost of poor quality is underestimated

13) Which of the four major categories of quality costs is particularly hard to quantify? A) prevention costs B) appraisal costs C) internal failure costs D) external failure costs E) None is hard to quantify.

D) external failure costs

12) All of the following costs are likely to decrease as a result of better quality EXCEPT: A) customer dissatisfaction costs. B) inspection costs. C) scrap costs. D) warranty and service costs. E) maintenance costs.

E) maintenance costs.

1) Quality is mostly the business of the quality control staff, not ordinary employees.

FALSE

1) Managers at Arnold Palmer Hospital take quality so seriously that the hospital typically is a national leader in several quality areas-so that continuous improvement is no longer necessary.

False

2) Conforming to standards is the focus of the product-based definition of quality.

False

5) Deming's writings on quality tend to focus on the customer and on fitness for use, unlike Juran's work that is oriented toward meeting specifications.

False

1) The definition of quality adopted by The American Society for Quality is a customer-oriented (i.e., user based) definition.

True

3) Internal failure costs are associated with scrap, rework, and downtime.

True

4) Philip Crosby is credited with both of these quality catch-phrases: "quality is free" and "zero defects."

True

6) Improved quality can increase profitability via allowing flexible pricing.

True