Chapter 6 SCM
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
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
) 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
Marketing issues such as advertising, image, and promotion are important to quality because: A) they define for consumers the tangible elements of a service. B) the intangible attributes of a product (including any accompanying service) may not be defined by the consumer. C) they educate consumers on how to use the product. D) they make the product seem more valuable than it really is. E) they raise expenses and therefore decrease profitability.
B
"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
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
) Which of the determinants of service quality involves having the customer's best interests at heart? A) access B) courtesy C) credibility D) responsiveness E) tangibles
C
"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
) 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
Arnold Palmer Hospital uses ________ to seek new ways to reduce readmission rates.
Continuous Improvement
) Which of the determinants of service quality involves performing the service right the first time? A) access B) courtesy C) credibility D) reliability E) responsiveness
D
In his book, Safe Patients, Smart Hospitals, Dr. Peter Pronovost emphasizes the use of what tool to reduce catheter infections? A) a Pareto chart B) a flowchart C) a cause-and-effect diagram D) a checklist E) a statistical process control chart
D
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
Companies with the highest levels of quality are how many times more productive than their competitors? A) 2 B) 3 C) 4 D) 5 E) none of the above
D. 5
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
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
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.
"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
What refers to training and empowering frontline workers to solve a problem immediately? A) just-in-time B) poka-yoke C) benchmarking D) kaizen E) service recovery
E
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
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. All of the above
) 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
) 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
Of the several determinants of service quality, access is the one that relates to keeping customers informed in language they can understand.
F
An improvement in quality must necessarily increase costs. T/F
False
Benchmarking requires the comparison of your firm to other organizations; it is not appropriate to benchmark by comparing one of your divisions to another of your divisions.
False
Conforming to standards is the focus of the product-based definition of quality.
False
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
Quality is mostly the business of the quality control staff, not ordinary employees.
False
________ costs result from production of defective parts or services before delivery to the customer.
Internal Failure
Identify the four costs of quality. Which one is hardest to evaluate?
Internal failure, external failure, prevention, and appraisal. External is hardest because hardest to quantify.
"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.
Philip B. Crosby
Security is the determinant of service quality that means freedom from danger, risk, or doubt.
T
) A cause-and-effect diagram helps identify the sources of a problem.
TRUE
) Continuous improvement is based on the philosophy that any aspect of an operation can be improved.
True
Improved quality can increase profitability via allowing flexible pricing.
True
Internal failure costs are associated with scrap, rework, and downtime.
True
Kaizen is similar to TQM in that both are focused on continuous improvement.
True
Philip Crosby is credited with both of these quality catch-phrases: "quality is free" and "zero defects."
True
Quality circles empower employees to improve productivity by finding solutions to work-related problems in their work area.
True
The definition of quality adopted by The American Society for Quality is a customer-oriented (i.e., user based) definition. T/F
True
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
) A hospital benchmarked against Ferrari Racing in an effort to: A) improve patient handoff quality. B) increase surgery prep time. C) lengthen surgery duration. D) reduce the number of doctors. E) all of the above
a
) PDCA, developed by Shewhart, stands for which of the following? A) Plan-Do-Check-Act B) Plan-Develop-Check-Accept C) Problem-Develop Solution-Check-Act D) Problem-Do-Continue-Act E) Prepare-Develop-Create-Assess
a
A Six Sigma program has how many defects per million? A) 3.4 B) 34 C) 1000 D) 6 times the standard deviation E) 2700
a
A checklist is a type of: A) poka-yoke. B) kaizen. C) kanban. D) Pareto chart E) flowchart
a
) Among the tools of TQM, the tool ordinarily used to aid in understanding the sequence of events through which a product travels is a: A) Pareto chart. B) flowchart. C) check sheet. D) Taguchi map. E) poka-yoke.
b
If a sample of parts is measured and the mean of the measurements is outside the control limits, the process is: A) in control, but not capable of producing within the established control limits. B) out of control and the process should be investigated for assignable variation. C) within the established control limits with only natural causes of variation. D) monitored closely to see if the next sample mean will also fall outside the control limits. E) none of the above.
b
One of Britain's largest children's hospitals working with Ferrari Racing is an example of: A) internal benchmarking. B) external benchmarking. C) Taguchi concepts. D) employee empowerment. E) corporate responsibility.
b
Poka-yoke is the Japanese term for: A) card. B) foolproof. C) continuous improvement. D) fishbone diagram. E) just-in-time production.
b
Members of quality circles are: A) paid according to their contribution to quality. B) external consultants designed to provide training in the use of quality tools. C) always machine operators. D) all trained to be facilitators. E) None of the above; all of the statements are false.
e
Techniques for building employee empowerment include: A) building communication networks that include employees. B) developing open, supportive supervisors. C) moving responsibility from both managers and staff to production employees. D) building high-morale organizations. E) All of the above are techniques for employee empowerment.
e
The philosophy of zero defects is: A) the result of Deming's research. B) unrealistic. C) prohibitively costly. D) an ultimate goal; in practice, 1 to 2% defects is acceptable. E) consistent with the commitment to continuous improvement.
e
Which of the following is not a typical inspection point? A) upon receipt of goods from your supplier B) when production or service is complete C) before the product is shipped to the customer D) at the supplier's plant while the supplier is producing E) after a costly process
e
) Source inspection is inferior to inspection before costly operations.
false
The Japanese use the term poka-yoke to refer to continuous improvement.
false
The quality loss function indicates that costs related to poor quality are low as long as the product is within acceptable specification limits.
false
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
Managers at Arnold Palmer Hospital take quality so seriously that the hopsital typically is a national leader in several quality areas- so that continuous improvement is no longer necessary. T/F
False
A fishbone chart is also known as a: A) cause-and-effect diagram. B) poka-yoke diagram. C) Kaizen diagram. D) Kanban diagram. E) Taguchi diagram.
a
A production manager at a pottery factory has noticed that about 70 percent of defects result from impurities in raw materials, 15 percent result from human error, 10 percent from machine malfunctions, and 5 percent from a variety of other causes. This manager is most likely using: A) a Pareto chart. B) a scatter diagram. C) a quality loss function. D) a cause-and-effect diagram. E) a flowchart.
a
A quality circle holds a brainstorming session and attempts to identify the factors responsible for flaws in a product. Which tool do you suggest they use to organize their findings? A) Ishikawa diagram B) Pareto chart C) flowchart D) control charts E) activity chart
a
A recent consumer survey conducted for a car dealership indicates that, when buying a car, customers are primarily concerned with the salesperson's ability to explain the car's features, the salesperson's friendliness, and the dealer's honesty. The dealership should be ESPECIALLY concerned with which determinants of service quality? A) communication, courtesy, and credibility B) competence, courtesy, and security C) competence, responsiveness, and reliability D) communication, responsiveness, and reliability E) understanding/knowing customer, responsiveness, and reliability
a
Costs of dissatisfaction, repair costs, and warranty costs are elements of cost in the: A) quality loss function. B) Pareto chart. C) ISO 9000 quality cost calculator. D) process chart. E) Ishikawa diagram.
a
If 1 million passengers pass through the St. Louis Airport with checked baggage each month, a successful Six Sigma program for baggage handling would result in how many passengers with misplaced luggage? A) 3.4 B) 6.0 C) 34 D) 2700 E) 6 times the monthly standard deviation of passengers
a
The "four Ms" of cause-and-effect diagrams are: A) material, machinery/equipment, manpower, and methods. B) material, methods, men, and mental attitude. C) named after four quality experts. D) material, management, manpower, and motivation. E) mentality, motivation, management, and manpower.
a
The goal of inspection is to: A) detect a bad process immediately. B) add value to a product or service. C) correct deficiencies in products. D) correct system deficiencies. E) all of the above
a
Which of the following is FALSE regarding control charts? A) Values above the upper control limits imply that the product's quality is exceeding expectations. B) Control charts are built so that new data can be quickly compared to past performance data. C) Control charts graphically present data. D) Control charts plot data over time. E) None of the above is false.
a
Which of the following statements regarding "Six Sigma" is TRUE? A) The term has two distinct meanings-one is statistical; the other is a comprehensive quality system. B) Six Sigma means that about 94 percent of a firm's output is free of defects. C) The Six Sigma program was developed by Toyota in the 1970s. D) The Six Sigma program is for manufacturing firms and is not applicable to services. E) Six Sigma certification is granted by the International Standards Organization (ISO).
a
) A customer service manager at a retail clothing store has collected numerous customer complaints from the forms they fill out on merchandise returns. To analyze trends or patterns in these returns, she has organized these complaints into a small number of sources or factors. This is most closely related to the ________ tool of TQM. A) quality loss function B) cause-and-effect diagram C) scatter diagram D) histogram E) process control chart
b
The process improvement technique that sorts the vital few from the trivial many is: A) Taguchi analysis. B) Pareto analysis. C) benchmarking. D) Deming analysis. E) Yamaguchi analysis.
b
Total quality management emphasizes: A) the responsibility of the quality control staff to identify and solve all quality-related problems. B) a commitment to quality that goes beyond internal company issues to suppliers and customers. C) a system where strong managers are the only decision makers. D) a process where mostly statisticians get involved. E) ISO 14000 certification.
b
) PDCA is most often applied with regard to which aspect of TQM? A) Six Sigma B) employee empowerment C) continuous improvement D) benchmarking
c
) Pareto charts are used to: A) identify inspection points in a process. B) outline production schedules. C) organize errors, problems, or defects. D) show material flow. E) show the range of values of a measurement and the frequency with which each value occurs.
c
Building high-morale organizations and building communication networks that include employees are both elements of: A) ISO 9000 certification. B) Six Sigma certification. C) employee empowerment. D) Taguchi methods. E) the tools of TQM.
c
The process of identifying other organizations that are best at some facet of your operations and then modeling your organization after them is known as: A) continuous improvement. B) employee empowerment. C) benchmarking. D) copycatting. E) patent infringement.
c
) A manager tells her production employees, "It's no longer good enough that your work falls anywhere within the specification limits. I need your work to be as close to the target value as possible." Her thinking is reflective of: A) internal benchmarking. B) Six Sigma. C) ISO 9000. D) Taguchi concepts. E) process control charts.
d
) Based on his 14 Points, Deming is a strong proponent of: A) inspection at the end of the production process. B) an increase in numerical quotas to boost productivity. C) looking for the cheapest supplier. D) training and knowledge. E) all of the above.
d
) When sample measurements falls inside the control limits, it means that: A) each unit manufactured is good enough to sell. B) the process limits cannot be determined statistically. C) the process output exceeds the requirements. D) if there is no other pattern in the samples, the process is in control. E) the process output does not fulfill the requirements.
d
A quality loss function includes all of the following costs EXCEPT: A) the cost of scrap and repair. B) the cost of customer dissatisfaction. C) inspection, warranty, and service costs. D) sales costs. E) costs to society.
d
A successful TQM program incorporates all EXCEPT which of the following? A) continuous improvement B) employee involvement C) benchmarking D) centralized decision-making authority E) JIT
d
Suppose that a firm has historically been achieving "Three Sigma" quality. If the firm later changes its quality management practices such that it begins to achieve "Six Sigma" quality, which of the following phenomena will result? A) The average number of defects will be cut in half. B) The specification limits will be moved twice as far from the mean. C) The average number of defects will be cut by 99.9997%. D) The average number of defects will be cut by 99.87%. E) The average number of defects will be cut by 99.73%.
d
) 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
A good description of source inspection is inspecting: A) materials upon delivery by the supplier. B) the goods at the production facility before they reach the customer. C) the design specifications. D) goods at the supplier's plant. E) one's own work.
e
Kaizen is a Japanese term meaning: A) a foolproof mechanism. B) just-in-time (JIT). C) a fishbone diagram. D) setting standards. E) continuous improvement.
e
________ is doing the job properly with the operator ensuring that this is so.
source inspection
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
) A checklist is a type of poka-yoke to help ensure consistency and completeness in carrying out a task.
true
) Pareto charts are a graphical way of identifying the few critical items from the many less important ones.
true
Line employees need the knowledge of TQM tools.
true
One of the ways that just-in-time (or JIT) influences quality is that by reducing inventory, bad quality is exposed.
true
