Chapter 6 Managing Quality Rapid Review
21) Total quality management emphasizes:
B) a commitment to quality that goes beyond internal company issues to suppliers and customers.
7) "Quality lies in the eyes of the beholder" is:
B) a user-based definition of quality.
Forecasts
B) are rarely perfect
When should product strategy focus on forecasting capacity requirements?
B) at the growth stage of the product life cycle
A problem that involves a sequence of decisions
B) can be better analyzed with a decision tree than by a decision table
The fundamental purpose of an organization's mission statement is to
B) define the organization's purpose in society
Which of the following would not be an operations function in a fast-food restaurant?
B) designing the layout of the facility
Which choice below best describes the counterseasonal demand option?
B) developing a mix of products that smoothes out their combined demands
According to the text, which of the following strategic concepts allow firms to achieve their missions?
B) differentiation, cost leadership, and quick response
18) One of Britain's largest children's hospitals working with Ferrari Racing is an example of:
B) external benchmarking.
"Poka-yoke" is the Japanese term for
B) foolproof.
In most acceptance sampling plans, when a lot is rejected, the entire lot is inspected and all defective items are replaced. When using this technique the AOQ (Average Outgoing Quality)
B) improves (AOQ becomes a smaller fraction)
A product whose EOQ is 40 experiences a decrease in ordering cost from $90 per order to $10. The revised EOQ is
B) one-third as large -q decreases by the square root of 1/9 which is 1/3
Among the tools of TQM, the tool ordinarily used to aid in understanding the sequence of events through which a product travels is a
B) process chart
Dependence on an external source of supply is found in which of the following aggregate planning strategies?
B) subcontracting
9) Three broad categories of definitions of quality are:
B) user based, manufacturing based, and product based.
Three broad categories of definitions of quality are
B) user-based, manufacturing-based, and product-based
Which of these aggregate planning strategies adjusts capacity to match demand?
B) using part-time workers
15) Basic break-even analysis typically assumes that
B) variable costs and revenues increase in direct proportion to the volume of production
A lot that is accepted by acceptance sampling is free of defects.
B. False
A p-chart is appropriate to plot the number of typographic errors per page of text.
B. False
If the process average is in control, then the process range must also be in control.
B. False
The x-bar chart indicates that a gain or loss of uniformity has occurred in dispersion of a production process.
B. False
27) Building high-morale organizations and building communication networks that include employees are both elements of:
C) employee empowerment.
A product-focused process is commonly used to produce
C) high-volume, low-variety products
For a given product demand, the time series trend equation is 53 - 4 X. The negative sign on the slope of the equation
C) is an indication that product demand is declining
3) If the actual order quantity is the same as the economic order quantity in a problem that meets the assumptions of the economic order quantity model shown below, the average amount of inventory on hand
C) is one-half of the economic order quantity
If the actual order quantity is the same as the economic order quantity in a problem that meets the assumptions of the economic order quantity model shown below, the average amount of inventory on hand
C) is one-half of the economic order quantity
Reducing the complexity of a product and improving a product's maintainability for use are activities of
C) manufacturability and value engineering
. Which of the following is not an advantage of level scheduling?
C) matching production exactly with sales
Standardization is an appropriate strategy in which stage of the product life cycle?
C) maturity
The Ten Critical Decisions of Operations Management include
C) process and capacity design
Three types of processes are
C) process focus, repetitive focus, and product focus
Which of the following does not represent reasons for globalizing operations?
C) reduce responsiveness
Which of the following did the authors of the text book not suggest as a reason for globalizing operations?
C) stockholder approval ratings
Which of the following did we not suggest might be a reason for globalizing operations?
C) stockholder approval ratings
Which answer choice uses the following three types of participants: decision makers staff personnel, and respondents?
C) the Delphi method
Adding a complementary product to what is currently being produced is a demand management strategy used when
C) the existing product has seasonal or cyclical demand
An operations manager is not likely to be involved in
C) the identification of customers' wants and needs
A shadow price (or dual value) reflects which of the following in a maximization problem?
C) the increase in profit that would accompany one added unit of a scarce resource
Which of the following aggregate planning models is based primarily upon a manager'ʹs past experience?
C) the management coefficients model
One fundamental difference between a process chart and a process map is that
C) the process chart is more like a table, while the process map is more like a
Variable Inspection
Classifications of the inspected items as falling on a continuum scale, such as dimension or strength. Measures dimensions such as weight, speed, size, or strength to see if an item falls within an acceptable range.
Two ways that quality improves profitability are:
Sales gain via improved response, price flexibility, increased market share, and/or improved reputation. Reduced costs via increased productivity, lower rework and scrap costs, and/or lower warranty costs.
6) Quality circles empower employees to improve productivity by finding solutions to work-related problems in their work area.
True
8) Line employees need the knowledge of TQM tools
True
9) One of the ways that just-in-time (or JIT) influences quality is that by reducing inventory, bad quality is exposed
True
Internal failure costs are associated with scrap, rework, and downtime.
True
Two most well-known quality awards are
U.S. Malcolm Baldrige National Quality Award, named after a former secretary of commerce Japan: Deming Prize, named after an American, Dr. W. Edwards Deming
Natural variations
a. affect almost every production process b. are the many sources of variation that occur c. when a process is under control when grouped, form a pattern, or distribution d. are tolerated, within limits, when a process is under control e. *All of the above are true.
Which of the following determinants of service quality means approachability and ease of contact?
access
Inspections should NOT take place
after costly or irreversible processes
A successful quality strategy begins with
an organizational culure that fosters quality
5) Kaizen is similar to TQM in that both are focused on continuous improvement
True
6) Improved quality can increase profitability via allowing flexible pricing.
True
Taguchi's quality loss function is based on a
quadratic equation
International Strategy
-Import/export or license existing product -Examples U.S. Steel Harley Davidson
The American Society for Quality (ASQ) defines quality as
"The totality of features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs."
SERVQUAL
(1) A popular measurement scale for service quality that compares service expectations with service performance. (2) A multiple-item scale used to measure service quality across dimensions of tangibles, reliability, responsiveness, assurance, and empathy.
32) Identify the five steps of DMAIC.
(1) Define the project's purpose, scope, and outputs and then identify the required process information, keeping in mind the customer's definition of quality; (2) Measure the process and collect data; (3) Analyze the data, ensuring repeatability (the results can be duplicated), and reproducibility (others get the same result); (4) Improve, by modifying or redesigning, existing processes and procedures; and (5) Control the new process to make sure performance levels are maintained.
TQM in Services
(1) Determinants of service quality: reliability, responsiveness, competence, access, courtesy, communication, credibility, security, understanding/knowing the customer, and tangibles. (2) Service quality is more difficult to measure than for goods. Service quality perceptions depend on: - Expectations versus reality - Process and outcome - Types of service quality - Normal: Routine service delivery - Exceptional: How problems are handled 1. Intangible differences between products. 2. Intangible expectations customers have about those products.
Identify the seven major concepts of TQM
(1) continuous improvement, (2) Six Sigma, (3) employee empowerment, (4) benchmarking, (5) just-in-time (JIT), (6) Taguchi concepts, and (7) knowledge of TQM tools.
23) The focus of ISO 9000 is to enhance success through what eight quality management principles?
(1) top management leadership, (2) customer satisfaction, (3) continual improvement, (4) involvement of people, (5) process analysis, (6) use of data-driven decision making, (7) a systems approach to management, and (8) mutually beneficial supplier relationships
Transnational Strategy
-Move material, people, ideas across national boundaries -Economies of scale -Cross-cultural learning -Examples Coca-Cola Nestlé
What are some benefits of value engineering?
-Reduced complexity of products -Reduction of environmental impact -Additional standardization of products -Improved functional aspects of product -Improved job design and job safety -Improved maintainability (serviceability) of the product -Robust design
Global Strategy
-Standardized product -Economies of scale -Cross-cultural learning Examples: Texas Instruments Caterpillar Otis Elevator
Multidomestic Strategy
-Use existing domestic model globally -Franchise, joint ventures, subsidiaries Examples -Heinz -The Body Shop -McDonald's -Hard Rock Cafe
Seven Concepts of TQM
1. Continuous improvement 2. Six Sigma 3. Employee empowerment 4. Benchmarking 5. Just-in-time (JIT) 6. Taguchi concepts 7. Knowledge of TQM tools
Which of the following is true regarding the process capability index Cpk?
B) The larger the Cpk, the more units meet specifications.
The four major categories of costs which are associated with quality are
1. Prevention Costs 2. Appraisal Costs 1 and 2 are the Cost of Good Quality. 3. Internal failure costs 4. External failure costs 3 and 4 are the Costs of Poor Quality.
Cost of Quality (COQ)
1. The cost of doing things wrong - that is, the price of nonconformance. 2. Expenditures related to achieving product or service quality, such as the costs of prevention, appraisal, internal failure, and external failure. 3. A framework for quantifying the total cost of quality-related efforts and deficiencies. Total Cost of Quality is the sum of Cost of Good Quality: Prevention and Appraisal + Cost of Poor Quality: Internal Failure Costs and External Failure Costs
Four leaders in the field of quality management are
1. W. Edwards Deming 2. Joseph M. Juran 3. Armand Feigenbaum 4. Philip B. Crosby
What % of sales from new products is indicative of industry leaders?
50%
The use of part-time workers as an aggregate planning option may be less costly than using full-time workers, but may also reduce quality levels.
A. True
A fishbone diagram 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 form 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 Taguchi loss function d. a cause and effect diagram e. a flow chart
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. process chart 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
Cost of dissatisfaction, repair costs, and warranty costs are elements of cost in the a. Taguchi Loss Function b. Pareto chart c. ISO 9000 Quality Cost Calculator d. process chart e. none of the above
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
If a sample of items is taken and the mean of the sample is outside the control limits the process is a. out of control and the cause should be established b. in control, but not capable of producing within the established control limits 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. producing high quality products
A
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 violated by poor quality products b. gain ISO 14000 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
Stakeholders who are affected by the production and marketing of poor quality products include a. stockholder, 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 stakeholders and organizational executives and managers
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. none of the above
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 productions 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 always 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
Flowchart
A block diagram that graphically describes a process or a system. Alternatives: A diagram that shows the step-by-step progression through a procedure or system, especially using connecting lines and a set of conventional symbols. A diagram that shows the different paths a program will take depending on data inputs. A diagram of the sequence of operations in a computer program or an accounting system.
PDCA
A continuous improvement model involving four stages: Plan, Do, Check, Act = PDCA
Control Chart
A graphic presentation of process data over time, with predetermined control limits. This chart of time-ordered values of sample statistics is used to determine whether observed variations are abnorma and assists in detecting a trend of plotted values toward either control limit.
Pareto Chart
A graphic that identifies the few critical items as opposed to many much less important ones. Alternative: Bar height reflects the frequency or impact of the causes. In statistics a vertical bar graph where the vertical bars are drawn in decreasing order of frequency or relative frequency.
Quality Circle (QC)
A group of employees meeting regularly with a facilitator to solve work-related problems in their work area. - This concept was devised in the 1950s and revived in the 1980s with the emergence of TQM (Total Quality Management). - Consists of a small voluntary group of employees who work together on a particular job and meet regularly to discuss job-related problems and solutions - Representatives from the group then present their solutions to management. - This has a positive impact on the employees' attitudes, but no effect on job performance. - A small group of employees who work voluntarily on company time, typically one hour per week, to address work-related problems.
Quality Loss Function (QLF)
A mathematical function that identifies all cost connected with poor quality and shows how these costs increase as product quality moves from what the customer wants. QLF estimates the cost of deviating from the target value.
Inspection
A means of ensuring that an operation is producing at the quality level expected.
Target-oriented quality
A philosophy of continuous improvement to bring a product exactly on target. Successful firms aim toward a perfect 'target' value.
Statistical Process Control (SPC)
A process used to monitor standards, make measurements and take corrective action as a product or service is being produced. The process of testing statistical samples of product components at each stage of the production process and plotting those results on a graph. Any variances from quality standards are recognized and can be corrected if beyond the set standards. Statistical evaluation of the output of a process. Helps us to decide if a process is "in control" or if corrective action is needed.
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 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
Six Sigma
A program to save time, improve quality, lower costs; increasing customer satisfaction. In statistics, Six Sigma describes a process, product, or service with an extremely high capability which as 99.9997% accuracy, or 3.4 defects per million.
Cause-and-effect diagram (Ishikawa diagram or fish-bone chart/diagram)
A schematic technique used to discover possible locations of quality problems. The 4 Ms Material, Machinery/equipment, Manpower, and Methods may be broad causes. Traces undesirable effect to its root cause, maps out factors that are thought to affect a problem or get desired outcome.
ISO 9000
A set of international standards developed by the International Organization for Standardization (ISO). A set of international standards on quality management and quality assurance, critical to international business. ISO 9000 is the only quality standard with international recognition. To do business globally, being listed in the ISO directory is critical.
Checklist
A type of poka-yoke that lists the steps needed to ensure consistency and completeness in a task. Records the frequency of occurrence of certain process failures
23) Which of the following is false regarding control charts?
A) *Values above the upper control limits always 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.
Eli Whitney, in the __________, provided the foundations for __________ in operations management.
A) 1920s; statistical sampling
16) A Six Sigma program has how many defects per million?
A) 3.4
19) 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
Which of the following is the best example of competing on low-cost leadership?
A) A firm produces its product with less raw material waste than its competitors.
Which of the following is true regarding the two smoothing constants of the Forecast Including Trend (FIT) model?
A) One constant is positive, while the other is negative. B) They are called MAD and cumulative error. C) Alpha is always smaller than beta. D) One constant smoothes the regression intercept, whereas the other smoothes the regression slope. E) *Their values are determined independently.
13) PDCA, developed by Shewhart, stands for which of the following?
A) Plan-Do-Check-Act
PDCA, developed by Shewhart, stands for which of the following?
A) Plan-Do-Check-Act
Which of the following statements is true?
A) The person most responsible for initiating use of interchangeable parts in manufacturing was Eli Whitney.
24) 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.
Which of the following makes products that are friendlier to the environment?
A) Using less materials B) Using More recycled materials C) Using less energy D) Using less harmful ingredients E) All of the above E) All of the above
Which of the following is true regarding value engineering?
A) Value engineering occurs only after the product is selected and designed. B) Value engineering is the same as product-by-value analysis. C) *Value engineering is oriented toward improvement of design. D) Value engineering occurs during production when it is clear the product is a success. E) Value engineering can save substantial amounts of product cost, but quality suffers.
Which of the following is false regarding control charts?
A) Values above the upper control limits always imply that the product's quality is exceeding expectations
The dimensions, tolerances, materials, and finishes of a component are typically shown on a(n)
A) assembly chart
A restaurant kitchen contains a wall poster that shows, for each sandwich on the menu, a sketch of the ingredients and how they are arranged to make the sandwich. This is an example of a(n)
A) assembly drawing
19) 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.
The fundamental difference between cycles and seasonality is the
A) duration of the repeating patterns
The process improvement technique that sorts the "vital few" from the "trivial many"
B) Pareto analysis
The role of quality in limiting a firm's product liability is illustrated by
A) ensuring that contaminated products such as impure foods do not reach customers B) ensuring that products meet standards such as those of the Consumer Product Safety Act C) designing safe products to limit possible harm to consumers D) using processes that make products as safe or durable as their design specifications call for E)*All of the above are valid.
7) Quality can improve profitability by reducing costs. Which of the following is not an aspect of reduced costs by quality improvements?
A) flexible pricing
Quality can improve profitability by reducing costs. Which of the following is not an aspect of reduced costs by quality improvements?
A) flexible pricing
16) Which of the following are elements of inventory holding costs?
A) housing costs B) material handling costs C) investment costs D) pilferage, scrap, and obsolescence E) *All of the above are elements of inventory holding cost.
Which of the following are elements of inventory holding costs?
A) housing costs B) material handling costs C) investment costs D) pilferage, scrap, and obsolescence E)* All of the above are elements of inventory holding cost.
17) A hospital benchmarked against Ferrari Racing in an effort to:
A) improve patient handoff quality
30) Which of the following is not a service design technique used to reduce cost?
A) increasing customer interaction
Which of the international operations strategies uses the existing domestic model globally?
A) international strategy B) global strategy C) transnational strategy D) *multidomestic strategy E) none of the above
) A six-month moving average forecast is better than a three-month moving average forecast if demand
A) is rather stable
When a lot has been accepted by acceptance sampling, we know that
A) it has more defects than existed before the sampling B) it has had all its defects removed by 100% inspection C) it will have the same defect percentage as the LTPD D) it has no defects present E) *All of the above are false
The objective of aggregate planning is to meet demand while __________ over the planning period.
A) minimizing cost
20) A successful quality strategy features which of the following steps?
A) organization environment that fosters quality B) understanding the principles of quality C) engaging employees in the necessary activities for quality implementation D) A and C E)*A, B, and C
If a sample of items is taken and the mean of the sample is outside the control limits the process is
A) out of control and the cause should be established
29) Costs of dissatisfaction, repair costs, and warranty costs are elements of cost in the:
A) quality loss function.
9) Modern ATM machines are an automated example of a service design that
A) reduces customer interaction
Sensitivity analysis helps to
A) see the value of increased scarce resources B) determine even better solutions C) see the impact of parameter changes (such as changes in RHS values and changes to objective function coefficients) D) *A and C E) A, B, and C
18) Stakeholders who are affected by the production and marketing of poor quality products include
A) stockholders, employees, and customers.
A graphic technique for defining the relationship between customer desires and product/service is
A) the House of Quality
What % of sales from new products is indicative of industry leaders?
A)* 50% B) below 25% C) 25 to 35% D) above 60% E) 35 to 45%
A cause-and-effect diagram helps identify the source of a problem.
A. True
In acceptance sampling, a manager can reach the wrong conclusion if the sample is not representative of the population it was drawn from.
A. True
In aggregate planning, the amount of overtime and the size of the work force are both adjustable elements of capacity.
A. True
Mistakes stemming from workers'ʹ inadequate training represent an assignable cause of variation.
A. True
One of the ways that Just-In-Time (or JIT) influences quality is that by reducing inventory, bad quality is exposed.
A. True
Pareto charts are a graphical way of identifying the few critical items from the many less important ones.
A. True
The phrase Six Sigma has two meanings. One is statistical, referring to an extremely high process capability; the other is a comprehensive system for achieving and sustaining business success.
A. True
Attribute Inspection
An inspection that classifies items as being either good or defective
"Poka-yoke" is the Japanese term for a. card b. foolproof c. continuous improvement d. fishbone diagram e, just-in-time production
B
A customer service manage 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 categories. This is most closely related to the _______ tool of TQM a. Taguchi loss function b. cause and effect diagram c. scatter diagram d. histogram e. process control chart
B
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. process chart 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 with in 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
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
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
Three broad categories of definition 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
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
"Making it right the first time" is a. an unrealistic definition of quality b. a user-based definition of quality c. manufacturing-based definition of quality d. a product-based definition of quality e. the definition proposed by the American Society for Quality
C
"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
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
Pareto charts are used for a. identify inspection points in a process b. outline production schedules c. organize errors, problems, or defects d. show material flow e. all of the above
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
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
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
13) A certain type of computer costs $1,000, and the annual holding cost is 25%. Annual demand is 10,000 units, and the order cost is $150 per order. What is the approximate economic order quantity?
C) 110
6) Which of the following is an example of competing on quick response?
C) A firm's products are introduced into the market faster than its competitors' products.
A graphic technique for defining the relationship between customer desires and products/services is
C) House of Quality
__________ expresses the error as a percent of the actual values, undistorted by a single large value.
C) MAPE
Bridget's Hamburger Stand uses only 7 ingredients but offers 15 different burgers. This process is known as
C) Modular Design
17) "Quality Is Free," meaning that the costs of poor quality have been understated, is the work of:
C) Philip B. Crosby
15) Which of the following statements is NOT true?
C) Product liability transfers from the manufacturer to the retailer once the retailer accepts delivery of the product
Which of the following statements is not true?
C) Product liability transfers from the manufacturer to the retailer once the retailer accepts delivery of the product.
20) 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?
C) The average number of defects will be cut by 99.9997%.
Which of the following statements about organizational missions is false?
C) They are formulated after strategies are known.
Jars of pickles are sampled and weighed. Sample measures are plotted on control charts. The ideal weight should be precisely 11 oz. Which type of chart(s) would you recommend?
C) X- and R-charts
8) "Making it right the first time" is:
C) a manufacturing-based definition of quality
28) 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:
C) benchmarking
The x-bar chart tells us whether there has been a
C) change in the central tendency of the process output
14) PDCA is most often applied with regard to which aspect of TQM
C) continuous improvement
Source Inspection
Controlling or monitoring at the point of production or purchase at the source. Inspection of materials, components, products, or documents at the supplier's facility by an individual not employed by the supplier.
"Employees cannot produce goods that on average exceed the quality of what the process is capable of producing" expresses a basic element in the writings of a. Vilfredo Pareto b. Armand Feigembaum c. Joseph M. Juran d. W. Edwards Deming e. Philip B. Crosby
D
"Quality is defined by the customer" 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 proposed by the American Society for Quality
D
A manger tells her production employees, "It's no longer good enough that your work fall 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
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 cost e. costs to society
D
A successful TQM program incorporates all of the following except a. continuous improvement b. employee involvement c. benchmarking d. centralized decision-making authority e. non of the above; a successful TQM program incorporates all of the above
D
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
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
ISO 9000 seeks standardization in terms of a. products b. production procedures c. suppliers' specifications d. procedures to manage quality e. all of the above
D
Suppose that a firm has historically been achieving "three-sigma" quality. If the firm later changes its quality management practices such that 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
The causes of variation in statistical process control are a. cycles, trends, seasonality, and random variations b. producer's causes and consumer's causes c. mean and range d. natural causes and assignable causes e. Type I and Type II
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
When a sample measurement 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
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
Which of the following statements best describes the relationship between quality management and product strategy? a. Product strategy is set by top management; quality management is an independent activity b. Quality management is important to the low-cost product strategy, but not to the response or differentiation strategies c. High quality is important to all three strategies, but it is not a critical success factor d. Managing quality helps build successful product strategies e. Companies with the highest measures of quality were no more productive than other firms
D
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
15) A Three Sigma program has how many defects per million?
D) 2700
A Cp of 1.67 indicates how many sigma limits
D) 4
5) Companies with the highest levels of quality are how many times more productive than their competitors with the lowest quality levels?
D) 5
16) Which of the following statements about aggregate planning is true?
D) Aggregate planning uses the adjustable part of capacity to meet production requirements.
In the case "Process Control at Polaroid" we examined a shift in Polaroid's quality model from ___________ to _________.
D) Logic control to statistical control
Which of the following technologies would enable a cashier to scan the entire contents of a shopping cart in seconds?
D) RFID
A manager tells her production employees, "It's no longer good enough that your work fall anywhere within the specification limits. I need your work to be as close to the target value as possible." Her thinking is reflective of
D) Taguchi concepts
31) 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:
D) Taguchi concepts.
3) Which of the following statements regarding Arnold Palmer Hospital is FALSE?
D) The hospital's high quality is measured by low readmission rates, not patient satisfaction.
Which of the following is true regarding value engineering?
D) Value engineering occurs during production when it is clear the product is a success.
16) "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:
D) W. Edwards Deming
20) To become ISO 9000 certified, organizations must:
D) all of the above
Which of the following is least likely to be a Cost Leadership competitive advantage?
D) broad product line
The number of defects after a hotel room cleaning (sheets not straight, smears on mirror, missed debris on carpet, etc) should be measured using a(n)
D) c-chart
22) A successful TQM program incorporates all EXCEPT which of the following?
D) centralized decision-making authority
A successful TQM program incorporates all of the following except
D) centralized decision-making authority
18) Which of the following aggregate planning strategies is a "capacity option"?
D) changing inventory levels
14) 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?
D) cost of poor quality is underestimated
Productivity can be improved by
D) decreasing inputs while holding outputs steady
13) Which of the four major categories of quality costs is particularly hard to quantify?
D) external failure costs
Which of the following phrases best describes process focus?
D) high fixed costs, low variable costs
A firm uses the pure chase strategy of aggregate planning. It produced 1000 units in the last period. Demand in the next period is estimated at 800, and demand over the next six periods (its aggregate planning horizon) is estimated to average 900 units. In following the chase strategy, the firm will
D) lay off workers to match the 200 unit difference
Which of the following are the primary functions of all organizations?
D) marketing, operations, and finance/accounting
Which of the following is not one of The Ten Critical Decisions of Operations Management?
D) mass customization
The "four Ms" of cause-and-effect diagrams are
D) material, machinery/equipment, manpower, and methods.
A university has several technicians in the repair station to care for the computers in the student labs. This system is most likely
D) multi-channel, limited population system
7) Which of the international operations strategies uses the existing domestic model globally?
D) multidomestic strategy
An operations task performed at Hard Rock Café is
D) preparing employee schedules
Which of the following would represent an operations task performed at Hard Rock Café is
D) preparing employee schedules
10) According to the manufacturing-based definition of quality:
D) quality is the degree to which a specific product conforms to standards.
A quality loss function includes all of the following costs except
D) sales costs
30) A quality loss function includes all of the following costs EXCEPT:
D) sales costs.
12) Based on his 14 Points, Deming is a strong proponent of:
D) training and knowledge
Managing quality helps build successful strategies
Differentiation, low cost, and Response.
"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
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 goods as soon as a problem occurs d. goods at the supplier's plant e. one's own work, as well as the work done at the previous work station
E
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
Arnold Palmer Hospital uses which of the following quality management techniques? a. Pareto charts b. flow charts c. benchmarking d. Just-in-Time e. The hospital uses all of the above techniques
E
Quality circles members 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
The role of quality in limiting a firms's product liability is illustrated by a. ensuring that contaminated products such as impure foods do not reach customers b. ensuring that products meet standards such as those of the Consumer Product Safety Act c. designing safe products to limit possible harm to consumers d. using processes that make products as safe or as durable as their design specification call for e. all of the above are valid
E
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
Which of the following is not a typical inspection point a. upon reciept of goods from your supplier b. during the production process 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
Which of the following is not one of the major categories of cost associated with quality? a. prevention costs b. appraisal costs c. internal failures d. external failures e. none of the above; they are all major categories of costs associated with quality
E
Which of the following is true about ISO 14000 certification a. it is not a prerequisite for ISO 9000 certification b. it deals with environmental management c. it offers a good systematic approach to pollution prevention d. one of its core elements is life-cycle assessment e. all of the above are true
E
6) A successful quality strategy features which of the following elements?
E) A, B, and C
26) Techniques for building employee empowerment include:
E) All of the above are techniques for employee empowerment
14) Which of the following is not one of the four principles of bottleneck management?
E) Bottlenecks should be moved to the end of the system process.
21) What is a set of quality standards developed by the International Organization for Standardization?
E) ISO 9000
A process that is assumed to be in control with limits of 89 +/- 2 had sample averages of the following- 87.1, 87, 87.2, 89, 90, 89.5, 88.5, and 88. Is the process in control?
E) No, two or more consecutive points are very near the lower (or upper) limit.
25) Members of quality circles are:
E) None of the above; all of the statements are false.
Which of the following is not one of the major categories of costs associated with quality?
E) None of the above; they are all major categories of costs associated with
11) Which of the following is NOT one of the major categories of costs associated with quality?
E) None of the above; they are all major categories of costs associated with quality.
Which of the following is not one of the major categories of costs associated with quality?
E) None of the above; they are all major categories of costs associated with quality.
2) Which of the following is not an assumption of the M/M/1 model?
E) Service times occur according to a normal curve.
4) Arnold Palmer Hospital uses which of the following quality management techniques?
E) The hospital uses all of the above techniques.
Which of the following is true regarding the two smoothing constants of the Forecast Including Trend (FIT) model?
E) Their values are determined independently.
Which of the following is not a typical inspection point?
E) after a costly process
Cost cutting in international operations can take place because of
E) all of the above
Ethical and environmentally friendly processes include which of the following?
E) all of the above
A primary advantage of decision trees compared to decision tables is that decision trees
E) can be used for sequential problems
11) The philosophy of zero defects is
E) consistent with the commitment to continuous improvement.
23) Kaizen is a Japanese term meaning:
E) continuous improvement.
12) All of the following costs are likely to decrease as a result of better quality EXCEPT:
E) maintenance costs
15) When quantity discounts are allowed, the total cost-minimizing order quantity
E) minimizes the sum of holding, ordering, and product costs
Break-even is the number of units at which
E) total revenue equals total cost
Which of the following is NOT one of the techniques for building employee empowerment?
Eliminate formal organization structures such as teams and quality circles
Employee Empowerment
Enlarging employee jobs so that the added responsibility and authority are moved to the lowest level possible in the organization. This also gives employees more responsibility and authority to execute decisions in all aspects of product development and, or customer service.
1) Managers at Arnold Palmer Hospital take quality so seriously that the hospital typically is a national leader in several quality areas-so that continuous improvement is no longer necessary.
False
1) Quality is mostly the business of the quality control staff, not ordinary employees.
False
10) The quality loss function indicates that costs related to poor quality are low as long as the product is within acceptable specification limits.
False
2) An improvement in quality must necessarily increase costs
False
2) Conforming to standards is the focus of the product-based definition of quality.
False
5) 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
7) 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
An improvement in quality must necessarily increase costs.
False
An x-bar control chart was examined and no data points fell outside of the limits. Can this process be considered in control?
I) No, there could be a pattern to the points. II) No, the R-chart must be checked. A) Both I & II
33) Explain how just-in-time processes relate to the quality of an organization's outputs.
JIT reduces costs of quality by lowering waste and scrap. JIT improves quality by shortening the time between error detection and error correction. Meanwhile, better quality means less inventory and a better JIT system.
Poka-yoke (mistake-proofing)
Literally translated, "mistake-proofing" in Japanese; it has come to mean a device or technique that ensures the production of a good unit every time. These methods are aimed at designing fail-safe systems (safeguards) built into a process to reduce the possibility of errors. A poka-yoke is any mechanism in a lean manufacturing process that helps an equipment operator avoid (yokeru) mistakes. Its purpose is to eliminate product defects by preventing, correcting, or drawing attention to human errors as they occur.
Total Management Quality (TQM)
Management of an entire organization so that it excels in all aspects of products and services that are important to the customers.
Quality Robust
Products that are consistently and uniformly built to meet customer needs, despite adverse manufacturing and environmental conditions in the production process.
Benchmarking
Selecting a demonstrated standard of performance or benchmark that represents the very best performance for a process or an activity. The firm compares its practices, processes, products, and performance with the standards or benchmarks of other high-performing organizations.
Which of the following is not an assumption of the M/M/1 model?
Service times occur according to a normal curve.
Tools of TQM
TQM tools that generate ideas include check sheets (organized method of recording data), scatter diagrams (graph of the value of one variable versus another variable), cause-and-effect diagrams. Tools for organizing data are Pareto charts and flowcharts. Tools for identifying problems are the Histogram (distribution showing the frequency of occurrences of a variable) and statistical process control (SPC).
quality
The ability of a product or service to consistently meet or exceed customer expectations.
4) Continuous improvement is based on the philosophy that any aspect of an operation can be improved.
True
4) Philip Crosby is credited with both of these quality catch-phrases: "quality is free" and "zero defects.
True
Cost of Quality (COQ)
The cost of doing things wrong that is, the price of nonconformance. Expenditures related to achieving product or service quality, such as the costs of prevention, appraisal, internal failure, and external failure. A framework for quantifying the total cost of quality-related efforts and deficiencies. Total Cost of Quality plus Cost of Good Quality equals Costs of Quality (COQ).
22) Identify the four costs of quality. Which one is hardest to evaluate? Explain.
The four costs are internal failure, external failure, prevention, and appraisal. The hardest category to estimate is external failure costs, or costs that occur after delivery of defective parts or services. These costs are very hard to quantify
Which of the following statements is NOT true regarding the importance of the role that an operations manager plays in addressing service quality?
The manager may be able to influence the quality of the service but has little control over the customers expectation
Just-in-time (JIT)
The philosophy of just-in-time (JIT) involves: continuing improvement and enforced problem-solving. JIT systems are designed to produce or deliver goods just as they are needed. Subassemblies and components are to be manufactured in very small numbers, delivered to the next stage of production process
Which of the following statements regarding "ʺSix Sigma"ʺ is true?
The term has two distinct meanings-one is statistical; the other is a comprehensive quality system.
Service Recovery
Training and empowering frontline workers to solve a problem immediately. Method: Listen to the customer, resolve problems quickly, provide a fair solution. This restores customer satisfaction to strongly dissatisfied customers.
1) Pareto charts are a graphical way of identifying the few critical items from the many less important
True
1) The definition of quality adopted by The American Society for Quality is a customer-oriented (i.e., user based) definition
True
2) A cause-and-effect diagram helps identify the sources of a problem.
True
2) TQM is important because each of the ten decisions made by operations managers deals with some aspect of identifying and meeting customer expectations
True
3) Internal failure costs are associated with scrap, rework, and downtime.
True
3) 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
Disaggregation
breaks the aggregate plan into greater detail
To develop a standard or benchmark, firms need to start with
determining what to benchmark
Managing quality helps build successful strategies of
diffeentiation, low cost, and response
Cause-and-effect diagrams are also known as
fish-bone charts or ishwaka charts
Which of the following DOES NOT increase profit by improving quality?
higher warranty costs
Which of the following TQM tools would be best suited for displaying the number of students majoring in each business discipline?
histogram
Attribute inspection measures
if the product is good or bad
Which of the following could reduce costs and increase profit?
increased productivity
Which of the following is the Japanese term used to describe continous imporvement efforts?
kaizen
One hundred percent inspection
means that every part is checked to see whether or not it is defective
When quantity discounts are allowed, the total cost-minimizing order quantity
minimizes the sum of holding, ordering, and product costs
A university has several technicians in the repair station to care for the computers in the student labs. This system is most likely
multi-channel, limited population system
A device or technique that ensures production of a good unit every time is a
poka-yoke
Which of the following determinants of service quality means the firm performs the service right the first time and the firm honors its promises?
reliability
Which of the following costs is not a cost of quality?
research and development
Which of the following is NOT an external failure cost?
scrap
What is training and empowering frontline employees to solve a problem immediately?
service recovery
The American Society for Quality defines quality as
the totality of features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs
