OM Exam III - True False
52) Philip Crosby is credited with both of these quality catch-phrases: "quality is free" and "zero defects." ( T , F )
T
53) Line employees need the knowledge of TQM tools. ( T , F )
T
56) Pareto charts are a graphical way of identifying the few critical items from the many less important ones. ( T , F )
T
57) Security is the determinant of service quality that means freedom from danger, risk, or doubt. ( T , F )
T
58) Mean charts and range charts complement one another, one detecting shifts in process average, the other detecting shifts in process dispersion. ( T , F )
T
61) A c-chart is appropriate to plot the number of flaws in a bolt of fabric. ( T , F )
T
65) The tool that calculates which process has the lowest cost at any specified production volume is a crossover chart. ( T , F )
T
66) A firm's process strategy is its approach to transforming resources into goods and services. ( T , F )
T
67) Fixed costs are those costs that continue even if no units are produced. ( T , F )
T
71) 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. ( T , F )
T
75) Design capacity is the theoretical maximum output of a system in a given period under ideal conditions. ( T , F )
T
76) The definition of quality adopted by The American Society for Quality is a customer-oriented (i.e., user based) definition. ( T , F )
T
77) Acceptance sampling accepts or rejects an entire lot based on the information contained in the sample. ( T , F )
T
79) The theory of constraints is a body of knowledge that deals with anything that limits an organization's ability to achieve its goals. ( T , F )
T
69) Substantial research has proved that the only successful method of dealing with bottlenecks is to increase the bottleneck's capacity. ( T , F )
F
70) 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. ( T , F )
F
72) A process that is in statistical control will always yield products that meet their design specifications. ( T , F )
F
73) A process is said to be in statistical control when assignable causes are the only sources of variation. ( T , F )
F
74) Activity times should not be included in a service blueprint. ( T , F )
F
78) Production technology has had a major impact on services, but as yet there has been little reduction in service labor requirements. ( T , F )
F
80) Of the several determinants of service quality, access is the one that relates to keeping customers informed in language they can understand. ( T , F )
F
51) An improvement in quality must necessarily increase costs.
F
54) The quality loss function indicates that costs related to poor quality are low as long as the product is within acceptable specification limits. ( T , F )
F
55) Source inspection is inferior to inspection before costly operations. ( T , F )
F
59) An x-bar chart is used when we are sampling attributes. ( T , F )
F
60) A lot that is accepted by acceptance sampling is certified to be free of defects. ( T , F )
F
62) The x-bar chart indicates that a gain or loss of uniformity has occurred in dispersion of a production process. ( T , F )
F
63) Flowcharts use distance, but not time, to show the movement of material, product, or people through a process. ( T , F )
F
64) Harley-Davidson, because it has so many possible combinations of products, utilizes the process strategy of mass customization. ( T , F )
F
68) Break-even analysis identifies the volume at which fixed costs and revenue are equal. ( T , F )
F
