Ch 10 master
ISO __________ standard are concerned with business-to-business transactions while ISO __________ standards are concerned with environmental management
9000; 14000
A company known for delivering high-volume standardized services is 1
McDonald's
The cost of quality involves the cost of
warranties. rework. scrap.
Which of the following are assumptions that justify the costs of quality? 1. Failures occur 2. Prevention is cheaper 3. Performance can be measured
1, 2, and 3
How many defects per million units are permitted to meet Six Sigma standards?
3.4
In the acronym DMAIC, what does the C stand for?
Control
The best way to control quality is by inspection.
False
A process 1
Made up of one or more activities that transforms inputs in to outputs.
The ability to meet current resource needs without compromising the ability of future generations to meet their needs is known as 1
Sustainability
Often, a(n) ___________ in productivity occurs as a by-product of efforts to reduce the cost of quality.
increase
The cost of quality has been estimated at what percentage of every sales dollar?
15-20%
Which of the following is an example of a goods producing business? 1
An automobile manufacturer
The ratio of cost of goods sold to average inventory value is known as 1
Inventory turnover
To achieve quality at the source, in general, who is responsible for ensuring that quality specifications are met?
The person who does the work
Which is the best form of ISO certification?
Third party
Which of the following is not an efficiency measure used by wall street? 1
*Employee turnover Inventory turnover Asset turnover Receivables turnover
Which of the following is not a type of process in the supply chain? 1
*Evaluating Planning Sourcing Making
Which of the following people was not considered one of the quality gurus? 1
*Henry ford William deming Philip Crosby Joseph Juran
If the lower control limit for the c chart is negative, then which of the following values should be used?
0
If the lower control limit for the p chart is a negative value, then which of the following becomes the new value?
0
Total quality management became a national concern in the United States during what decade?
1980s
Total quality management became popular during what time frame? 1
1980s
The general belief is that the correct cost for a well-run quality management program is under
2.5%
What is the minimum number of samples suggested for control charts with variable measurement?
25
How many defects per million are permitted to meet six sigma standards?
3.4
ISO _______________, standards are concerned with business-to-business transactions dealing with quality, while ISO _______________ standards are concerned with environmental management
9000, 14000
Which of the following is an example of a service business? 1
A call center
Six sigma refers to
A description of the quality goal of no more than 3.4 defects per million opportunities; A quality improvement philosophy and program
The most important part of an operating characteristic curve is between the ________ and the LTPD.
AQL
In which step of the DMAIC cycle do you determine the most likely causes of defects and understand why defects are generated?
Analyze
In which step of the DMAIC do you determine the most likely causes of defects and understand why defects are generated?
Analyze
The classic "I Love Lucy" scene where they are inspecting the chocolates on the assembly line is an example of what type of quality cost?
Appraisal
Which of the following is not a dimension of quality?
Appraisal
The ratio of revenue to total assets is known as 1
Asset turnover
Which of the following is variation that is caused by factors that can be clearly identified?
Assignable variation
Quality characteristics that are classified as either conforming or not conforming to specification are known as?
Attributes
A process in which one company studies the processes of another company for best practices is known as 1
Benchmarking
When measurements from periodic samples stay _____________ the control limits the process can be assumed to be working properly.
Between
When the product or service can have more than one defect per unit, which of the following is the most appropriate chart?
C chart
Which of the following is the ratio of the range of values produced by a process divided by the range of values allowed by the design specification?
Capability index
Which of the following is variation that is inherent in the process itself?
Common variation
Quality at the source is often discussed in the context of _________ quality.
Conformance
Which quality term refers to the degree to which the product or service design specifications are met?
Conformance
What are the quality management principles in ISO 9000?
Customer focus, leadership, involvement of people, process approach, continual improvement, factual approach to decision making, and mutually beneficial supplier relationships
Which six sigma tool requires changing each individual variable to determine the most influential one?
Design of experiments (DOE)
What term refers to the inherent value of the product in the marketplace?
Design quality
Doing something at the lowest possible cost is known as 1
Efficiency
The process of looking outside the company to compare the firm to excellent performers is called _________ benchmarking.
External
Warranty costs and customer complaints are examples of which type of quality cost?
External failure costs
According to a rule of thumb, for every dollar that you spend in prevention, you can save $10 in what types of costs?
Failure and appraisal
Which tool in Six Sigma projects is a structured approach to identify, estimate, prioritize, and evaluate risk of possible failures at each stage of a process?
Failure mode and effect analysis
What are the assumptions that justify the costs of quality?
Failures are caused, prevention is cheaper, and performance can be measured
The Baldrige Quality Award is given annually in all of these categories except?
Film industry
Which of the following tools can be used in the Define step of the DMAIC cycle?
Flow charts Run charts
ISO documents provide detailed requirements for meeting the standards and describing the tools used for improving quality in the firm. These documents are:
Generic and applicable to any organization.
Which of the following people was not considered one of the quality gurus?
Henry Ford
Which is the ISO certification regarding quality management requirements in business-to-business dealings?
ISO 9000
In which step of the DMAIC cycle would you identify ways to remove the cause of defects and confirm key variables?
Improve
A process that cannot be weighed or measured is knows as 1
Intangible
Which type of quality costs deal with scrap, rework and repair?
Internal failure
Which type of quality cost deals with scrap, rework and repair?
Internal failure costs
which type of quality cost deals with scrap, rework and repair?
Internal failure costs
Just-in-time production was pioneered by which country? 1
Japan
The Malcolm Baldrige National Quality Award was created as a response to the US quality shortfalls compared with which country?
Japan
The Malcolm Baldrige National Quality Award was created as a response to the US quality shortfalls versus which country?
Japan
When a service is being provided, who is typically responsible for ensuring quality at the source?
Location operations manager
Where can statistical quality control be applied?
Logistics, manufacturing, and service processes
Expenditures related to achieving product or service quality include all of the following except:
Manufacturing costs
The ability to produce a unique product exactly to a particular customers requirements is known as 1
Mass customization
Which of the following companies made process capability and product design famous by adopting six sigma limits?
Motorola
You are a manager that has calculated the DPMO to be 10,000. Is this process meeting Six Sigma standards?
No
The graphical display of the probability of accepting lots with varying percentages of defects is termed?
Operating characteristic curve
Which of the following control charts must use a sample large enough to allow counting of the attribute?
P chart
Which of the following is the control chart that measures the fraction defective of each individual sample tested?
P chart
Which analytical tool of Six Sigma breaks down a problem into the relative contributions of its components?
Pareto charts
Which analytical tool of six sigma breaks down a problem into the relative contributions of its components?
Pareto charts
Brand name recognition is an example of which dimension of quality?
Perceived quality
What are the dimensions of quality?
Performance, features, reliability/durability, serviceability, aesthetics, perceived quality
Who are considered the quality gurus?
Phil Crosby, W. Edwards Deming, Joseph M. Juran
Expenditures related to achieving product/service quality include:
Prevention, appraisal, and internal/external costs
Building service activities in to a firm's product offering is known as 1
Product-service bundling
Which of the following is a quality management standard developed specifically for the automobile industry?
QS-9000
Which of the following is defined as the difference between the highest and lowest numbers in a sample?
Range
When a customer audits its supplier in regards to ISO certification, this is referred to as ___________ certification.
Second party
Which dimension of design quality refers to the ease of repair?
Serviceability
When measuring variables, it is often preferable to use a small sample size because
Small samples are less costly and can be gathered quickly
Which of the following processes involves the selection of suppliers? 1
Sourcing
The range of allowable values associated with a process (given the intended use of the product) is known as:
Specification limits
What covers the quantitative aspects of quality management?
Statistical quality control (SQC)
True or false: Total quality management requires companies to deal with all dimensions of products and services that are important to the customer.
T
Which of the following is a quality management standard developed specifically for the telecommunications industry?
TL 9000
Which of the following is a quality management standard specifically for the telecommunications industry?
TL 9000
ISO, international standards for quality management and assurance, was developed by?
The International Organization of Standardization
Business analytic's 1
The analysis of data to better solve business problems.
What are the four main issues to address in creating a control chart?
The size of samples, the number of samples, the frequency of samples, and the control limits
Electric commerce 1
The use of the internet as an essential element of business activity
(T/F) The effect of setting specification limits on product design allows businesses to monitor processes against these limits.
True
(T/F) the lot size has little effect on the risk associated with an acceptance sampling plan.
True
The concept of quality at source indicates that the person who does the work should take responsibilities ensuring conformance quality of his or her output.
True
True or false: A product can have high design quality with low conformance quality, and vice versa.
True
True or false: An operations and supply chain manager helps firms determine the best way to deliver its goods and services. 1
True
True or false: Many product offerings are a combination of goods and services 1
True
True or false: Operations and supply chain management is focused on the systems that create and deliver an organizations products and services. 1
True
What pieces of information are needed to calculate DPMO?
Unit, Defect, Opportunity
_________ are characteristics that can be measured numerically, such as weight, length, or diameter.
Variables
Six Sigma programs attempt to reduce the number of defects produced by reducing the _________ of a process
Variation
What do Six Sigma programs seek to reduce in processes?
Variation
What do six sigma programs seek to reduce in processes?
Variation
What are examples of when to use a c-chart?
When it is desired to monitor the number of defects per unit
Which of the following is a plot of the averages of the samples that were taken from a process?
X- chart
Which two control charts are typically used together?
X- chart and R chart
According to a rule of thumb, for every dollar that you spend in prevention, you can save $10 in what type(s) of costs?
appraisal failure
Which letter denotes the maximum number of defective items that can be found in the sample before the lot is rejected?
c
There are two aspects to analyzing the data for benchmarking, they are
comparing actual processes. comparing performance of the process against certain measures.
Each step or activity, when using six sigma, a company performs represents an opportunity for a(n) _________ to occur.
defect
ISO 14000 addresses the need to be __________responsible.
environmentally
The process of looking outside the company to compare the firm to excellent performers is called __________ benchmarking.
external
Cost of quality (COQ) is a primary function for the
manufacturing manager.
which of the following is not a quality management principle in ISO 9000?
product design
Which of the following are typical objectives of process control plans?
provide information about whether items are meeting design specifications; detect shifts in the process
When a customer audits its supplier in regards to ISO certification, this is referred to as a ____________ certification.
second party
Design quality is considered a(n) __________ for the firm.
strategic decision
ISO 14000 has a three-pronged approach that includes
the development of environmentally friendly products and services. standards for monitoring air, water, and soil. environmental management requirements.
A purist view of the cost of quality is one that references all costs until 100% perfection is attained. A less stringent viewpoint is defined as
the difference between expected excellent performance and the current costs.
