C720 - SUPPLY CHAIN - UNIT 3

Which aspect of a new car best illustrates the reliability dimension of product quality? Side-impact airbags 185-hp engine 10-year powertrain warranty LED interior lights

10-year powertrain warranty

Which of the following tools is used to collect raw data during statistical process control (SPC)? a scatter plot A Histogram A check sheet A run chart

A check sheet

Which of the following is an example of an internal failure cost? A yoga studio distributing customer satisfaction surveys A restaurant discarding spoiled dairy products A grocery store providing on-the-job training to new employees A computer company repairing a laptop under warranty

A restaurant discarding spoiled dairy products

Managers at Taco Rico, a national fast-food chain, are implementing the Plan-Do-Check-Act cycle to ensure consistent food and service. So far, the managers have determined that the length of time that orders are filled at the drive-through window is too long. New procedures for taking food orders have been implemented and changes have been documented. What should occur next in the Plan-Do-Check-Act cycle? Train all drive-through workers on using the new process. Empower all drive-through workers to modify the new process as needed. Analyze the new process to determine if orders are being filled faster. Document and standardize the new process to ensure consistent results.

Analyze the new process to determine if orders are being filled faster.

________ are incurred when a company evaluates customer satisfaction. External failure costs Internal failure costs Prevention costs Appraisal costs

Appraisal costs

Massey Floor Coverings wants to understand the expectations that customers have about their products. What is the first step the firm should take to accomplish this goal? Manufacturing quality products for customers Determining the most effective product supply chain Testing new product ideas on customers Asking customers what they want in a product

Asking customers what they want in a product

Which of the following would a total quality management (TQM) company most likely use to evaluate quality? Reliability of manager intuition Number of returned products Content of employee training Length of the supply chain

Number of returned products

Managers at Delicious Nature Foods are considering the idea of changing product packaging and portion sizes. Prior to implementing this decision, the marketing department needs to gather information about the voice of Delicious Nature Foods customers. Which of the following would most likely enable the marketing department to accomplish this task? Forming Delicious Nature Foods quality circles to brainstorm new product ideas. Asking regional focus groups to discuss their expectations of Delicious Nature Foods products. Establishing a Delicious Nature Foods frequent buyer club to encourage repeat purchases. Monitoring social media sites for comments about Delicious Nature Foods products.

Asking regional focus groups to discuss their expectations of Delicious Nature Foods products.

Which of the following best explains the main purpose of using a house of quality matrix? Assessing the trade-offs between customer needs and product design features Reducing the impact of employee errors on product and service quality Identifying customer perceptions of product and service performance Determining the steps required to improve quality for goods and services

Assessing the trade-offs between customer needs and product design features

During a routine physical exam, Dr. Dodd politely answers Mark's questions about heart disease. Dr. Dodd discusses the benefits of exercise and a healthy diet as well as medications that are available to prevent heart disease. Dr. Dodd seems confident and knowledgeable. Which service quality dimension does this example best illustrate? Reliability Conformance Empathy Assurance

Assurance

The managers of large plastics manufacturing firm, Solo Industries, feel that employee empowerment would boost employee morale and organizational efficiency. What should managers do at Solo to empower employees? Shift authority from front-line workers to managers Replace time-consuming team projects with individual tasks Standardize and document all processes and procedures Implement team performance evaluations

Implement team performance evaluations

ow does a total quality management company promote continuous improvement throughout the organization? Comply with ISO 9000:2000 manufacturing guidelines and recommendations. Encourage suppliers to standardize their performance measurement systems. Ensure that the documentation and standardization for key tasks remains unchanged. Change the documentation and standardization when better work procedures are found.

Change the documentation and standardization when better work procedures are found.

In the scenario, the firm received positive results from the change they made as a result of the quality management process. What was the recommended change that led to a decline in monthly warranty costs? Thicker corrugated boxes were used for shipping. The package straps were redesigned. They switched to recycled cardboard for their shipping boxes. Components were put in a tray for shipping.

Components were put in a tray for shipping.

_____________ is the philosophy that organizational performance can always be better according. Continuous improvement Quality function deployment

Continuous improvement

Statistical process control is being used by the managers at Miller Tools to reduce the number of defects in the power tools that the firm manufactures. Front-line supervisors need the ability to determine instantly when the manufacturing process is heading towards instability so that corrective measures can be taken before products become defective. Which tool is best for this task? Histogram Scatter plot Control chart Pareto chart

Control chart

Modern companies that rely on a philosophy of total quality management (TQM) primarily use ______ to measure quality. Management intuition Customer feedback

Customer feedback

If a firm measures quality from an external orientation, which of the following is most relevant? Corporate values Proper procedures Product specifications Customer needs

Customer needs

According to the textbook scenario, what is the firm's primary problem? Employees of the paint department are misplacing critical product parts. Customers are receiving and returning a high number of defective products. Customers are complaining about the firm's strict product return policy. The firm's warranty covers too many product failure possibilities.

Customers are receiving and returning a high number of defective products.

Which quality management activity clarifies the task to accomplish? Defining the problem Making a recommendation Measuring the variables Analyzing the raw data

Defining the problem

Over the last six months, Slopes Bicycles received an increased number of feedback regarding product defects from its customers. The firm hired an expert to implement the Six Sigma methodology. What should the Six Sigma expert do as the first step? Measure current process performance with a process map. Create a histogram to determine the cause of the problem. Conduct multiple regression testing to identify process variations. Develop a project charter to define the specific problem.

Develop a project charter to define the specific problem.

Companies that adopt a philosophy of continuous improvement support it by participating in which of the following activities? Utilizing the house of quality tool Using profits to assess performance Documenting revised procedures Empowering employees to make decisions

Documenting revised procedures

Dr. W. Edwards Deming developed 14 points for the transformation of management. Which of the following is one of Deming's points? Eliminate management by numbers and management by objective Eliminate costly employee education programs Establish regular quality inspections Award supplier contracts based solely on input costs

Eliminate management by numbers and management by objective

Which quality management strategy involves giving decision-making authority to front-line workers? Employee benchmarking Continuous improvement Employee empowerment Quality function deployment

Employee empowerment

For a company that has implemented total quality management, which of the following would most likely create customer delight? Focusing on accurate metrics for quality conformance and reliability Adhering to strict quality function deployment guidelines Providing annual training to quality control department managers Ensuring that all organizational members take responsibility for quality

Ensuring that all organizational members take responsibility for quality

Which of the following best explains the primary purpose of documentation and standardization? Providing workers with problem-solving techniques Providing management with external quality measures Ensuring that tasks are performed with consistency Analyzing revised processes and procedures

Ensuring that tasks are performed with consistency

What do managers do in the "check" stage of the Plan-Do-Check-Act cycle? Evaluate the new process to determine if objectives were accomplished. Document and standardize all current processes. Identify problems and opportunities for process improvements. Communicate process changes to organizational members.

Evaluate the new process to determine if objectives were accomplished.

Which of the following best describes employee empowerment? Extending employee responsibility and authority to the lowest levels of an organization Comparing the performance of individual employees to an established industry standard Forming cross-functional quality circles to evaluate organizational performance Providing frequent job training opportunities for both new and experienced employees

Extending employee responsibility and authority to the lowest levels of an organization

True or False. According to Dr. W. Edwards Deming, in a manufacturing environment, quality improves when management establishes very specific work quotas. True False

False

True or False. According to Genichi Taguchi, high levels of quality are achieved when a company closely inspects products after they are manufactured and before they are sold to customers. True False

False

True or False. After analyzing the data for warranty claims, the company decided to ship products in thicker corrugated boxes to protect items from damage. Once the recommendation was implemented, monthly warranty costs dropped from 5% to 4.5%.

False

True or False. In an organization that fully implements total quality management, the quality control department maintains sole responsibility for product and service quality. True False

False

True or False. Joseph Juran asserted that quality is based on four components: quality improvement, quality control, quality planning, and quality circles. True False

False

True or False. The first step in the Six Sigma methodology involves measuring current processes to determine the frequency of problems.

False

True or False. When collecting data for statistical process control, a histogram is the primary tool for recording raw data at the location where data is generated.

False

rue or False. For the benchmarking process to provide useful information, the two companies being compared must be direct competitors in the same industry. True False

False

After analyzing the measurements, which of the following LEAST likely caused the firm's warranty costs to increase? Missing product parts Flexible box straps Torn packaging Thin packaging

Flexible box straps

Which of the following is primarily attributed to Joseph Juran? Stressing that quality requires the elimination of all errors Developing a "fishbone" diagram to identify quality Focusing on customers by describing quality as "fitness for use" Emphasizing the need to design quality into products

Focusing on customers by describing quality as "fitness for use"

Which tool enables a firm to evaluate the relationship between customer expectations and product design characteristics? BCG matrix SWOT analysis Voice of customer analysis House of quality matrix

House of quality matrix

Managers at General Media, a company who practices total quality management (TQM), have requested updated internal measurements of quality. Which of the following questions is most relevant for this task? How many customer complaints did General Media receive this month? What was the profit margin of General Media in the last two quarters? What customer comments have been made on social media about General Media? How many customers of General Media submitted product reviews this month?

How many customer complaints did General Media receive this month?

Margiano's Italian Restaurant has a full menu of Italian specialties. Most of their delivery orders are pizza. They uses an internally oriented definition of quality. Which question is most relevant to the Margiano's manager when conducting a monthly quality assessment about their delivery business? Which pizza deals are most popular? What time of day do most pizza orders occur? How many pizzas are delivered on time? Which pizza toppings were most requested?

How many pizzas are delivered on time?

What tool is used to categorize and rank product defects on customer warranty claims? Histogram Scatter plot Check sheet Pareto chart

Pareto chart

Which statistical process control (SPC) tool would be most useful to get a visual representation of the most frequent occurrences in descending order among all data points? Histogram Pareto chart Check sheet Scatter plot

Pareto chart

In the textbook scenario, what information is included in the problem statement? Primary causes for products having inadequate quality Expected time to decrease overall warranty costs Percentage of gross revenue lost from product return costs Number of customers lost due to defective products

Percentage of gross revenue lost from product return costs

The ___________ stage of the Plan-Do-Check-Act cycle involves identifying opportunities for improvement. Check Do Plan Act

Plan

When customers place product orders at SpringtimeFlowers.com, the retailer's computer system requires customers to enter their e-mail addresses twice. If the two addresses match, then a customer is allowed to proceed to the next screen. What cost of quality does this example illustrate? Internal failure cost Prevention cost External failure cost Appraisal cost

Prevention cost

Which of the following is an example of a problem-solving tool that can be used in continuous improvement? Process flow analysis The Voice of the Customer Focus Groups Documentation

Process flow analysis

Managers at Taylor Tool Company are using the philosophy of Dr. W. Edwards Deming to improve product quality. As part of the firm's efforts, which of the following actions will most likely be implemented? Developing an annual rating system for workers Providing on-the-job training to new employees Establishing numerical goals for employees Developing a management by objective program

Providing on-the-job training to new employees

After conducting customer surveys, managers at a beachfront resort, Sunset Palms, determine that the resort needs to improve its service quality, primarily in the area of responsiveness. Which of the following would most likely help the company achieve this goal? Updating the appearance of the lobby Providing room service orders quickly Offering discounts for online reservations Answering customer questions politely

Providing room service orders quickly

Which statement best summarizes a key aspect of Taguchi's philosophy about quality? Quality variations can be eliminated through robust design. Quality can improve when a firm considers fitness for use. On-the-job training can increase overall product quality. The formation of quality circles can reduce internal failure costs.

Quality variations can be eliminated through robust design.

hat advice about quality control would Philip Crosby most likely give to a manufacturing firm? Eliminate quality variations by investing in product design Enhance productivity by eliminating department barriers Reduce failure costs by making products correctly the first time Improve work standards by providing effective leadership

Reduce failure costs by making products correctly the first time

Which of the following is LEAST likely to be a characteristic of team problem solving? Resolving issues quickly Dividing tasks among members Brainstorming a variety of solutions Allowing different perspectives

Resolving issues quickly

Which statement best describes the purpose of benchmarking? Setting a performance standard for a business activity Determining a company's market share Analyzing the stability or instability of a process or procedure Identifying an organization's primary competitor

Setting a performance standard for a business activity

In the textbook scenario, the most relevant process variables are _______ . Poor paint quality and damaged packing trays Shipping damage and spare parts packing

Shipping damage and spare parts packing

After analyzing the data and measuring the process variables for the warranty claims, what conclusion can be made about the warranty claims described in the scenario? Careless package handling resulted in customers returning half of all shipped products. The number of warranty claims increased because the majority of shipped products were missing parts. Weak packaging straps increased the number of packages that were dropped and damaged during shipment. The overly thin corrugated boxes caused the majority of damage to products that customers returned.

The number of warranty claims increased because the majority of shipped products were missing parts.

Six Sigma is different from other management strategies because________. it collects information with check sheets. it involves a five-step methodology. it relies on statistical analysis. it interprets data using histograms.

it involves a five-step methodology.

Once an analysis of the measurements was complete, it was discovered that the primary cause for an increase in warranty costs is ________. products shipped without plastic parts trays. packages shipped without all essential parts. suppliers not providing the correct screw packs. paint that was scratched during manufacturing.

packages shipped without all essential parts.

A company with an internal orientation towards quality primarily focuses on ________. product characteristics market expectations customer needs consumer demands Correct. Quality wit

product characteristics

In statistical process control, check sheets are used to ________. demonstrate the frequency of data observations record raw data from the source in real time interpret data points over a period of time provide a visual interpretation of data

record raw data from the source in real time

In his book Quality is Free, Philip Crosby primarily asserts that firms can save money by ________. increasing prevention costs reducing failure costs implementing robust design assessing fitness for use

reducing failure costs

Executives at AXI Electronics have implemented a new quality management effort based on the philosophy of Genichi Taguchi. The company is building a manufacturing facility and hiring hundreds of workers to build a new tablet. Which of the following best illustrates the philosophy of Taguchi? Implementing procedures for inspecting and testing AXI tablets to reduce both internal and external costs. Using production equipment that eliminates variations in the quality of AXI tablets caused by employee errors. Developing quality circles that consist of managers and line workers to improve the quality of AXI tablets. Providing extensive on-the-job training to new employees to improve the quality of AXI tablets.

Using production equipment that eliminates variations in the quality of AXI tablets caused by employee errors.

TXZ Semiconductor manufactures computer chips used in cell phones. Recently, the company has had an increasing number of defective computer chips. Which of the following would likely enable TXZ Semiconductor to correct this costly problem? Ensuring that all TXZ processes have been documented and standardized Establishing focus groups at TXZ to brainstorm potential causes of the problem Using statistical process control to monitor the chip manufacturing process at TXZ Gathering chip industry information for the purpose of establishing a benchmark

Using statistical process control to monitor the chip manufacturing process at TXZ

The Six Sigma "define" phase uses what tool to provide an overview of the entire process and identify what is necessary to meet customer needs? Pareto chart Value stream mapping Fishbone chart Measurement system analysis

Value stream mapping

A company adheres to a philosophy of total quality management and encourages all employees and suppliers to share responsibility for quality. What is the likely result of these efforts by the firm? Employees work in teams rather than departments. The company's quality control department handles all customer complaints. The firm meets customers' needs and expectations. The company uses customer feedback to alter services.

The firm meets customers' needs and expectations.

In the scenario, what recommendation for improvement best addresses one of the secondary causes of high warranty expenses? Customers should receive additional screw packages with their orders. Product components should be placed in individually labeled plastic bags. The type of paint used on the products should be changed. The firm should change the type of packaging straps their package handlers use to carry boxes.

The firm should change the type of packaging straps their package handlers use to carry boxes.

A historgram, which is also known as a __________, illustrates the frequency of data observations within a preset range of values. check sheet box chart control chart scatter plot

box chart

A company needs to evaluate its warranty claims. What is the best method for measuring these types of variables? Check sheets and Pareto charts could be used to evaluate warranty claims. The company needs to analyze the type of packaging that would best protect products during shipping. First, they should compare past, present, and future revenue losses caused by warranty repairs. The company should first identify the cost of warranty claims on monthly employee productivity.

check sheets and Pareto charts could e used to evaluate warranty claims

When applying Six Sigma, _______________ is a tool used to improve process performance by solving problems in real time. Off-line simulations Scatter plots 5S methodology design of experiments (DOE)

design of experiments (DOE)

Employee training that focuses on the use of Pareto charts will most likely enable employees to ________. calculate quality conformance and reliability split the workload for a project among co-workers determine the likely causes of quality problems brainstorm possible solutions with team members

determine the likely causes of quality problems

During the "improve" stage of Six Sigma, an organization can be expected to ________________. use kaizen teams to make immediate process changes. use failure modes and effects analysis to isolate problems. control the workplace visually with the 5S methodology gather customer feedback regarding product satisfaction.

use kaizen teams to make immediate process changes.

True or false. Although the quantitative tools and techniques used in Six Sigma to reduce defects are highly effective, the Six Sigma methodology lacks a useful qualitative component.

false

A Six Sigma organization uses a fishbone chart to ________. find the underlying cause of a problem identified by a customer. explain the voice of the customer and prioritize customer needs. maintain the stability of a recently improved process. determine the best method for solving a problematic process.

find the underlying cause of a problem identified by a customer.

A company's attempt to get to know its customers by contacting them to discuss their needs, wants, and expectations is done in a _________. plan-do-check-act cycle ISO 9000:2000 standards meeting focus group benchmarking session

focus group

In an effort to improve its warehousing capabilities, managers at Harden Paints are considering looking to find a competitor to use as a benchmark for their warehousing processes. Which question is most relevant in this situation? What process does the competitor use for warehousing? Is this the top competitor for Harden? Is the competitor considered the best at warehousing? Does the competitor engage in benchmarking?

Is the competitor considered the best at warehousing?

According to Joseph Juran, ________ are primarily responsible for ensuring that a company manufactures quality products. Workers Managers

Managers

Which statement best explains why companies should probe customers about their product needs? Many customers have unspoken product expectations and desires. Most customers are interested in keeping product prices low. Many customers are highly loyal to name-brand products. Most customers understand the value-creation chain of products.

Many customers have unspoken product expectations and desires.

An organization focused on continuous improvement should create preset procedures for job tasks. This is referred to as ____________. Documentation Standardization

Standardization

_____ uses methods and tools to determine the stability of a manufacturing process and reduce the number of product defects

Statistical process control (SPC)

Which statement best explains why team problem solving facilitates the implementation of a decision? Teams tend to design numerous alternative solutions before choosing the best approach to the problem. Dividing the work among team members enables the decision-making process to move at a fast pace. Team members involved in the decision-making process typically feel committed to making a chosen approach work. Team efforts to develop a solution encourage more creativity due to a wide range of individual knowledge.

Teams tend to design numerous alternative solutions before choosing the best approach to the problem.

Which of the following could be an example of how a theme-park team solved the problem of customer dissatisfaction with waiting in long lines for rides? Offering a theme-park credit card that provides discounts for admission and concessions in the park. The park maintenance and garden crews keep the grounds immaculate. Television monitors are placed along the wait line with interesting stories and animated content to entertain the visitors. Admission prices are lowered during the off-season.

Television monitors are placed along the wait line with interesting stories and animated content to entertain the visitors.

What is the primary goal of Six Sigma? To reduce the number of defects. To collect and analyzing raw data. To foster employee empowerment. To promote continuous improvement.

To reduce the number of defects.

What is the primary reason a company would use statistical process control? To identify opportunities for design improvement. To reduce the number of product or service defects. To integrate customer needs and product design. To establish a standard for performance goals.

To reduce the number of product or service defects.

Managers at Johnson Electric Company have decided to organize employees into teams for the purpose of addressing recent quality problems. Which of the following would promote the effectiveness of the teams? Providing Pareto charts to assess customer satisfaction Training employees in the use of group problem-solving tools Saving time and money by eliminating excessive job training Ensuring that team members are from the same department

Training employees in the use of group problem-solving tools

Quality function deployment refers to a method of transforming customer needs and expectations into product design characteristics. True False

True

True or False. According to Deming, today's organizations benefit from training employees to use statistical process control tools. True False

True

True or False. According to Philip Crosby, most firms underestimate their failure costs and would benefit from evaluating all costs of quality. True False

True

True or False. Organizations that adhere to a philosophy of continuous improvement are likely to assemble cross-functional teams for the purpose of assessing current conditions, evaluating organizational activities, identifying problems, and developing solutions. True False

True

True or False. Understanding how customers use products and services helps companies to develop new innovations that improve and achieve external quality. True False

True

Companies primarily hold focus groups for the purpose of ________. soliciting new product ideas from employees determining the needs and wants of customers reducing internal and external failure costs providing product samples to potential customers

determining the needs and wants of customers