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.