Chapter 10 Quality Management and Six Sigma
The cost of quality has been estimated at what percentage of every sales dollar?
15-20%
The general belief is that the correct cost for a well-run quality management program is under
2.5%
Which of the following is not a dimension of quality?
Appraisal
Which of the following is an operational goal of total quality management (TQM)? 1. Careful design of the product or service. 2. Ensuring that the organization's systems can consistently produce the design.
Both 1 and 2
Which quality term refers to the degree to which the product or service design specifications are met?
Conformance
What term refers to the inherent value of the product in the marketplace?
Design quality
Warranty costs and customer complaints are examples of which type of quality cost?
External failure costs
The Baldrige Quality Award is given annually in all of these categories except?
Film industry
Which of the following people was not considered one of the quality gurus?
Henry Ford
The Malcolm Baldrige National Quality Award was created as a response to the US quality shortfalls compared with which country?
Japan
When a service is being provided, who is typically responsible for ensuring quality at the source?
Location operations manager
Expenditures related to achieving product or service quality include all of the following except:
Manufacturing costs
Which dimension of design quality refers to the ease of repair?
Serviceability
ISO, international standards for quality management and assurance, was developed by?
The International Organization of Standardization
To achieve quality at the source, in general, who is responsible for ensuring that quality specifications are met?
The person who does the work
True or false: A product can have high design quality with low conformance quality, and vice versa.
True
Often, a(n)___ in productivity occurs as a by-product of efforts to reduce the cost of quality.
increase
The cost of quality involves the cost of
scrap rework warranties
Design quality is considered a(n) __________ for the firm.
strategic decision
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.