Quality Final - CHAPTER EIGHT, Quality Final - CHAPTER SEVEN, Quality Final - CHAPTER SIX, Quality Final - CHAPTER FIVE, Quality Final - CHAPTER FOUR, Quality Final - CHAPTER TWO, Quality Final - CHAPTER ONE
The ________ process of business process benchmarking results in outputs that are eventually sold to customers. A) transformation B) conversion C) control D) reconstruction E) reengineering
B) conversion
The role of marketing in design has been to bring the voice of the ________ into the design process. A) supplier B) customer C) intermediary D) retailer E) producer
B) customer
The participation of a customer in the delivery of a service product is called ________. A) customer interaction B) customer coproduction C) customer conformity D) customer proactivity E) customer compliance
B) customer coproduction
Researchers use ________ to propose a model based on prior research and design an experiment to test the theoretical model. A) supposition B) deduction C) induction D) simulation E) abstraction
B) deduction
Quality loss function and robust design are concepts included in ________. A) Ishikawa's quality philosophy B) the Taguchi method C) Deming's 14 points for management D) the Juran trilogy E) Pareto's law
B) the Taguchi method
________ refers to the variables, definitions, components, and concepts that are included in the strategy. A) Content B) Process C) Prototype D) Paradigm E) Criterion
A) Content
________ include traditional process improvement as well as value stream mapping. A) Core process activities B) Upstream activities C) Inbound logistics D) Downstream activities E) Outbound logistics
A) Core process activities
________ validity indicates that your measuring instrument has the ability to predict or agree with constructs external to that which you are measuring. A) Criterion B) Conformance C) Content D) Control E) Construct
A) Criterion
The plan-do-check-act cycle is associated with ________. A) W. Edwards Deming B) Walter Shewhart C) Joseph Juran D) Armand Feigenbaum E) Kaoru Ishikawa
A) W. Edwards Deming
Gathering data through focus groups and surveys is an example of a(n) ________ data gathering. A) active B) open C) rational D) passive E) closed
A) active
What are the three phases included in the quality control sphere? A) analysis, relation, and generalization B) investigation, experimentation, and discovery C) investigation, relation, and collaboration D) analysis, synthesis, and discovery E) investigation, experimentation, and generalization
A) analysis, relation, and generalization
From an engineering perspective, engineers are primarily interested in ________. A) applying mathematical problem-solving skills and models to the problems of business and industry B) taking a strategic management approach to solving problems C) focusing on the perceived quality of products and services D) ordering new machinery and updating the current machinery to the latest technology E) training the workforce to develop and utilize its full potential to meet the company's objectives
A) applying mathematical problem-solving skills and models to the problems of business and industry
What is the first step in failure modes and effects analysis? A) assign each component an identifier B) list functions for each part C) identify highest risks D) list one or two failure modes for each function E) estimate likelihood of failure
A) assign each component an identifier
An arrow pointing from an independent variable to a dependent variable in a theoretical model typically implies ________. A) causality B) normality C) randomness D) proactivity E) synergy
A) causality
The idea behind fail-safing is to ensure that ________. A) certain errors will never occur B) customer expectations are met C) the highest risks are eliminated D) forward planning takes place E) the importance of quality is not neglected
A) certain errors will never occur
Which of the following is not a component of an effective guarantee? A) conditional B) meaningful C) understandable D) communicable E) painless to invoke
A) conditional
The second component of a complaint-resolution process is ________. A) contrition B) correction C) compensation D) communication E) correlation
A) contrition
According to Juran, ________ is a process-related activity that ensures processes are stable and provides a relatively consistent outcome. A) control B) organizing C) planning D) improvement E) scheduling
A) control
In the conversion process, the feedback loop that involves gathering, analyzing, and using the data to adjust the process is called the ________ process. A) control B) reengineering C) reconstruction D) development E) transformation
A) control
Prahlad and Hamel have identified the strategic concept of ________. A) core competence B) process engineering C) task management D) quality control E) employee empowerment
A) core competence
The two parts of the SERVQUAL survey are ________. A) customer expectations and customer perceptions B) service quality and product quality C) product integrity and customer service D) services liability and manufacturing liability E) service vision and high standards
A) customer expectations and customer perceptions
The principles for ________ include using fewer parts and fewer materials, and using snap-fits instead of screws. A) design for disassembly B) design for conformance C) design for reuse D) design for remanufacturing E) design for performance
A) design for disassembly
Which of the following steps in Xerox's 10-step process to benchmarking helps companies prioritize which areas are the first candidates for change and improvement? A) determine the current performance gap B) plan and conduct the investigation C) identify whom to benchmark D) decide what to benchmark E) develop action plans
A) determine the current performance gap
________ are subjective sensory characteristics such as taste, feel, sound, look, and smell. A) Intangibles B) Logistics C) Aesthetics D) Tangibles E) Features
C) Aesthetics
What is the final step in failure modes and effects analysis? A) describe effects of each failure mode B) estimate likelihood of failure C) eliminate or reduce highest risks D) estimate failure detection E) determine hazard likelihood and categorize
C) eliminate or reduce highest risks
The ________ perspective on quality is technically oriented, focusing on statistics and technical specification that are needed to produce high-quality products. A) marketing B) operations C) engineering D) strategic management E) financial
C) engineering
The ________ phase of customer-relationship management involves improving service to the customer through the use of information systems. A) acquisition B) retention C) enhancement D) transition E) response
C) enhancement
Failure after the customer takes possession of the product results in a(n) ________ failure cost. A) indirect B) generic C) external D) internal E) direct
C) external
Which of Garvin's dimensions of quality include the "bells and whistles" contained in products? A) performance B) conformance C) features D) aesthetics E) perceived quality
C) features
Which of the following is an example of a voluntary service? A) police department B) hospital C) gas station D) the IRS E) fire department
C) gas station
A method of manufacturing that minimizes waste and pollution is referred to as ________. A) renewable manufacturing B) clean manufacturing C) green manufacturing D) ecofriendly manufacturing E) sustainable manufacturing
C) green manufacturing
The ________ of a theoretical model involves the nature, direction, and extent of the relationship among the variables. A) why B) what C) how D) who-where-when E) which
C) how
What is the first step in performing a focus group session? A) develop questions B) narrow scope of questions C) identify purpose D) select target population E) run multiple groups
C) identify purpose
The systems view is associated with which of the following perspectives of quality? A) operations B) engineering C) marketing D) strategic management E) financial
A) operations
The key to the Hill model for strategic quality planning is reaching consensus on the ________. A) order-winning criterion B) Lundvall-Juran model C) supply chain model D) PAF paradigm E) forced-choice model
A) order-winning criterion
The marketer focuses on the ________ dimension of products and services. A) perceived quality B) durability C) conformance D) reliability E) performance
A) perceived quality
What are the three aspects of Juran's trilogy? A) planning, control, and improvement B) cost, quality, and customer satisfaction C) labor, management, and system D) organizing, management, and control E) leadership, cost, and quality
A) planning, control, and improvement
Experience with cross-functional teams has been difficult for many firms due to ________. A) poor communication skills B) lack of quality training C) increasing redundancy D) differing corporate goals E) increasing inflexibility
A) poor communication skills
Deming believed that poor quality resulted from ________. A) poor management of the system for continual improvement B) poor human resource management C) consumer complacency D) a lack of commitment on the part of management E) poor engineering and design
A) poor management of the system for continual improvement
SHORT ANSWER: What are multi-user CAD systems?
An important advance in CAD systems has been the advent of multi-user CAD systems. Using a common database in a network, multiple designers in locations worldwide can work on a design simultaneously around the clock. Consider a multinational corporation developing a new product. When the U.S. designers sleep, Asian and European designers work. When the U.S. designers return to work, they can see the progress that has been made overnight.
SHORT ANSWER: What is the group technology component of a CAD system?
An important component of a CAD system is the group technology component that allows for the cataloging and standardization of parts and components for complex products. Standard parts can result in fewer suppliers, simpler inventory, and less variability in processes.
SHORT ANSWER: State the importance of the product data management (PDM) tool?
An important component of design software is the product data management (PDM) tool. PDM is a general extension of techniques commonly known as engineering data management, document management, and other similar names. PDM helps manage both product data and the product development process by tracking the masses of data needed to design, manufacture, support, and maintain products.
SHORT ANSWER: State the advantages of the SERVQUAL instrument.
Answer: An important tool developed by Parasuraman, Zeithamel, and Berry for assessing services quality is SERVQUAL. The SERVQUAL survey has been used by many firms and is an off-the-shelf approach that can be used in many services situations. The SERVQUAL instrument, a survey, has many advantages. Among these are the following: • It is accepted as a standard for assessing different dimensions of services quality. • It has been shown to be valid for a number of service situations. • It has been demonstrated to be reliable, meaning that different readers interpret the questions similarly. • Each instrument is parsimonious in that they have only 22 items. This means that it can be filled out quickly by customers and employees. • It has a standardized analysis procedure to aid both interpretation and results.
A particular customer requirement is associated with a technical requirement, has an importance of 3, a target value of 5, and a sales point value of 2. The absolute weight of this customer requirement is ________. A) 15 B) 30 C) 6 D) 10 E) 25
B) 30
Ajax Carpet Cleaning promises to clean 100 square feet of carpet for $20.00. Their work standard for such a job is $5.00 for labor and $2.50 for cleaning supplies. Since they use the customer's electricity, there are no other inputs in to the cleaning process. What is their labor productivity? A) 20.0 B) 4.00 C) 8.00 D) 2.50 E) 40.0
B) 4.00
Champion Cooling Co. signed an exclusive contract with a scrap metal dealer that is willing to pay 33 cents a pound for scrap copper. If the cost of goods sold reported by Champion amounts to $100,000 and the scrap cost is equal to $20,000 for their 3030 pounds of scrap copper, what is Champion's scrap efficiency? A) 7.60 B) 5.00 C) 6.26 D) 9.33 E) 3.18
B) 5.00
SHORT ANSWER: Describe the concept of 5w2h.
Business process benchmarking is based on the concept of 5w2h developed by Alan Robinson. The 5w2h concept is labeled as such because a business process benchmarking project should result in the answers to seven questions. Five of these questions begin with the letter "w" (who, what, when, where, and why) and the remaining two questions begin with the letter "h" (how and how much). The 5w2h concept is a good starting point because it focuses the participants in the benchmarking process on the "nuts and bolts" of what is being done.
The ________ process involves identifying measures, establishing time frames for future data collection, gathering data, and analyzing data on an ongoing basis to identify performance trends and changes. A) restructuring B) baselining C) reengineering D) reverse engineering E) benchmarking
B) baselining
SHORT ANSWER: State the importance of complementary products.
Complementary products are new products using similar technologies that can coexist in a family of products. Complementary products are needed for two reasons. First, product obsolescence requires that products be updated. Second, some products have seasonal demand necessitating counterseasonal products. Topic: Other Design Methodologies Learning Outcome: Discuss the total cost of quality and compare the common methods of managing quality
The "14 points for management" were articulated by ________. A) Philip Crosby B) Joseph M. Juran C) Genichi Taguchi D) W. Edwards Deming E) Armand Feigenbaum
D) W. Edwards Deming
________ costs include lab testing, inspection, test equipment and materials, and losses due to destructive tests. A) Assessment B) Failure C) Prevention D) Appraisal E) Process
D) Appraisal
Examining a design to see if different components in a product occupy the same space is called ________. A) process evaluation B) design analysis C) interference checking D) multilevel evaluation E) product testing
C) interference checking
________ involves the usage of heat-transfer calculations, stress calculations, or differential equations to determine the dynamic behavior of the system being designed. A) Process modeling B) Geometric modeling C) Concurrent engineering D) Engineering analysis E) Multilevel prototyping
D) Engineering analysis
SHORT ANSWER: Differentiate between design for reuse and design for disassembly.
Design for reuse refers to designing products so they can be used in later generations of products. The principles for design for disassembly include using fewer parts and fewer materials, using snap-fits instead of screws, making assembly efficient and improving disposal, using design for disassembly experts in concurrent design teams, and eliminating waste through better design.
SHORT ANSWER: Explain the concept of poka-yoke.
Dr. Richard Chase and Dr. John Grout have been influential in promoting the use of poka-yokes (fail-safes) in services. The idea behind fail-safing is to ensure that certain errors will never occur. Just as many processes seem to be designed to fail, they also can be designed not to fail. Poka-yokes represent a good amount of creativity and are very often used by Japanese and American companies to help ensure quality service. In a nutshell, you should isolate fail points in a process and then fail-safe the process to make sure that errors don't occur.
The ________ customers are the ultimate people the company is trying to satisfy with its work. A) capital B) internal C) primary D) external E) secondary
D) external
What is the major theoretical contribution of Kaoru Ishikawa? A) the concept of benchmarking B) his assertion that the entire organization should be involved in improving quality C) the zero-defects approach to quality improvement D) his emphasis on total involvement of the operating employees in improving quality E) the quality loss function and the concept of robust design
D) his emphasis on total involvement of the operating employees in improving quality
A theory that is generated by observation and description is said to have been developed by the process of ________. A) deduction B) abstraction C) simulation D) induction E) supposition
D) induction
Which of the following is an upstream activity in supply chain management? A) value stream mapping B) Six Sigma C) customer support D) international sourcing E) shipping and logistics
D) international sourcing
Services that individuals do not choose to engage are referred to as ________ services. A) internal B) voluntary C) intangible D) involuntary E) external
D) involuntary
Kanri refers to: A) quality control B) employee empowerment C) product development D) management control E) quality conformance
D) management control
The fail points in the service blueprint are often referred to as ________. A) defining events B) turning points C) poka-yokes D) moments of truth E) tangibles
D) moments of truth
A particular customer requirement has a strong association with a technical requirement, an importance of 6, a target value of 3, and a sales point value of 2. The absolute weight of this customer requirement is ________. A) 1 B) 6 C) 9 D) 18 E) 36
E) 36
________ includes all supplier-initiated contact with customers. A) Customer-relationship management B) Supplier rationalization C) Single sourcing D) Customer segmentation E) Actively solicited customer feedback
E) Actively solicited customer feedback
________ shows the difference between expected service and perceived service. A) Gap 1 B) Gap 2 C) Gap 3 D) Gap 4 E) Gap 5
E) Gap 5
Using the law of diminishing marginal returns, quality costs can be modeled to show the trade-offs between these costs. This trade-off model is called the ________. A) order-winning criterion B) supply chain model C) PAF paradigm D) forced-choice model E) Lundvall-Juran model
E) Lundvall-Juran model
________ was the first functional field of management to adopt quality as its own. A) Engineering B) Marketing C) Human resources D) Finance E) Operations
E) Operations
The SERVQUAL tool for assessing services quality was developed by ________. A) Hammer and Champy B) Juran, Deming, and Shewhart C) Ishikawa and Taguchi D) Feigenbaum, Crosby, and Peters E) Parasuraman, Zeithamel, and Berry
E) Parasuraman, Zeithamel, and Berry
________ is based on customers' opinion on products and services. A) Conformance B) Aesthetics C) Durability D) Performance E) Perceived quality
E) Perceived quality
According to Garvin's ________ definition of quality, quality is found in the components and attributes of a product. A) manufacturing-based B) value-based C) user-based D) transcendent E) product-based
E) Product-based
The package of tangibles and intangibles that make up a service is referred to as a(n) ________. A) quality output package B) internal services package C) service vision package D) fail-safe package E) customer benefits package
E) customer benefits package
Which of the following is a downstream activity in supply chain management? A) supplier qualification B) supplier development C) acceptance sampling D) international sourcing E) customer support
E) customer support
The view of the customer that asserts that he or she is a valued asset to be managed is referred to as ________. A) customer response B) customer intelligence C) customer data management D) reactive customer-driven quality E) customer-relationship management
E) customer-relationship management
Churn reduction involves the reduction of the loss of ________. A) raw materials B) suppliers C) funds D) products E) customers
E) customers
Quality experts agree that quality can be assured only during the ________ phase. A) production B) marketing C) analysis D) testing E) design
E) design
The gap refers to the differences between ________. A) corrective action and preventive action B) service quality and product quality C) empowered employees and employees managed by a hierarchy D) accurate quality projections and inaccurate quality projections E) desired levels of performance and actual levels of performance
E) desired levels of performance and actual levels of performance
What is the first step in performing quality function deployment? A) prioritize technical requirements B) identify the correlations between design elements in the roof of the house C) prioritize customer requirements D) develop a listing of technical design elements along the roof of the house E) develop a list of customer requirements
E) develop a list of customer requirements
Which of the following is not one of Garvin's eight quality dimensions? A) reliability B) performance C) conformance D) aesthetics E) efficiency
E) efficiency
A service provider that consistently provides caring, individualized attention to its customers would score high on the ________ dimension of service quality. A) assurance B) responsiveness C) tangibles D) service reliability E) empathy
E) empathy
Which of the following activities is related to quality assurance? A) providing leadership and support B) reducing process variability C) facilitating organizational communication D) performing acceptance sampling E) experimental design
E) experimental design
Return on assets (ROA) and return on investments (ROI) are examples of ________. A) structural measures B) market share data C) productivity ratios D) quality measures E) financial ratios
E) financial ratios
If a product is regional or is marketed to a particular segment of the population, then the generic strategy in use is ________. A) quality B) cost C) differentiation D) flexibility E) focus
E) focus
In a customer benefits package, tangibles are known as ________. A) service-content B) process-content C) product-content D) quality-content E) goods-content
E) goods-content
Measurement data such as height, weight, volume, and speed are referred to as ________ data. A) active B) passive C) rational D) soft E) hard
E) hard
The first stage of the service benefit package design process is ________. A) service concept investigation B) facilities requirement definition C) process definition and selection D) the definition of a services package E) idea/concept generation
E) idea/concept generation
Which of the following is an external source for product ideas? A) marketing B) employee suggestions C) research and development D) management E) industry experts
E) industry experts
According to the ________, there is a point at which investment in quality improvement will become uneconomical. A) Deming value chain B) contingency theory C) Juran cost-benefit analysis D) Garvin quality matrix E) law of diminishing marginal returns
E) law of diminishing marginal returns
The ________ stage of the product development process involves the selection of the process technologies that will result in a low-cost, high-quality product. A) final product definition B) technology selection for product development C) technology development for process selection D) product design and evaluation E) manufacturing system design
E) manufacturing system design
Which of the following activities is related to quality control? A) creating a quality organizational culture B) concurrent engineering C) providing employee recognition D) off-line experimentation E) performing acceptance sampling
E) performing acceptance sampling
Which of the following is not an example of a strategic content variable? A) time B) leadership C) quality costs D) generic strategies E) product development
E) product development
The ________ stage of the product development process often requires the design of after-sales processes such as maintenance, warranties, and repair processes that occur after the customer owns the product. A) final product definition B) product design and evaluation C) manufacturing system design D) technology selection for product development E) product marketing and supply chain preparation
E) product marketing and supply chain preparation
Which of the following is considered an appraisal cost? A) supplier assessment B) cost of troubleshooting C) process waste D) robust design E) product quality audits
E) product quality audits
The ________ process is based on the scientific method, which includes the phases of analysis, relation, and generalization. A) quality execution B) quality implementation C) quality assurance D) quality management E) quality control
E) quality control
Reject rates, capability information, and performance information are examples of ________. A) structural measures B) market share data C) productivity ratios D) financial ratios E) quality measures
E) quality measures
The acronym RCDQ stands for ________. A) restructured customer-driven quality B) relative customer-driven quality C) redesigned customer-driven quality D) receptive customer-driven quality E) reactive customer-driven quality
E) reactive customer-driven quality
TRUE OR FALSE: A gas station is an example of an involuntary service.
FALSE
TRUE OR FALSE: A hospital is an example of a voluntary service.
FALSE
TRUE OR FALSE: A leader with coercive power grants raises and promotions to employees.
FALSE
TRUE OR FALSE: A theory that is generated by observation and description is said to have been developed by the process of deduction.
FALSE
TRUE OR FALSE: Acceptance of diversity is an example of a vision skill exhibited by a leader.
FALSE
TRUE OR FALSE: According to Deming, poor quality was the fault of labor.
FALSE
TRUE OR FALSE: According to the contingency theory, there is a point at which investment in quality improvement will become uneconomical.
FALSE
TRUE OR FALSE: According to the economic quality level model, the pursuit of higher levels of quality will result in lower expenditures.
FALSE
TRUE OR FALSE: According to the theory of scientific management, the managers and engineers should be responsible for planning and executing the plans.
FALSE
TRUE OR FALSE: Active data collections tend to result in lower ratings of quality than passive data collections.
FALSE
TRUE OR FALSE: An operations perspective on quality involves a subjective assessment of the efficacy of every step of the process for the customer.
FALSE
TRUE OR FALSE: Annuity relationship results in the customer providing a short-term income stream to the provider.
FALSE
TRUE OR FALSE: Appraisal costs include costs such as training and quality planning.
FALSE
TRUE OR FALSE: As product life cycles become longer, product variety and change become much more important to a successful competitor.
FALSE
TRUE OR FALSE: Commitment to quality is measured in budget cycles.
FALSE
TRUE OR FALSE: Complementary products are new products using different technologies that can coexist in a family of products.
FALSE
TRUE OR FALSE: Component reliability is computed from the aggregation of multiple components.
FALSE
TRUE OR FALSE: Concurrent engineering has resulted in the simultaneous performance of product design and quality testing.
FALSE
TRUE OR FALSE: Conflict management is an example of a knowledge skill exhibited by a leader.
FALSE
TRUE OR FALSE: Conformance is the degree to which a product tolerates stress or trauma without failing.
FALSE
TRUE OR FALSE: Constancy of purpose means that management commits resources in order to achieve quick returns and bottom-line results.
FALSE
TRUE OR FALSE: Construct validity indicates that your measuring instrument has the ability to predict or agree with constructs external to that which you are measuring.
FALSE
TRUE OR FALSE: Core competencies diminish with use.
FALSE
TRUE OR FALSE: Credibility involves consistency of performance and dependability.
FALSE
TRUE OR FALSE: Criterion validity refers to whether the item really measures what we want to measure.
FALSE
TRUE OR FALSE: Customer contact leads to a decrease in variability in the process.
FALSE
TRUE OR FALSE: Customer requirements with high competitive assessments and low importance are candidates for improvement.
FALSE
TRUE OR FALSE: Customer satisfaction measures are poor indicators of financial performance.
FALSE
TRUE OR FALSE: Customers tend to be more involved in the production of goods than in the production of services.
FALSE
TRUE OR FALSE: Data processing, printing, and mail are examples of external services.
FALSE
TRUE OR FALSE: Deming proposes the need for mass inspection to improve quality.
FALSE
TRUE OR FALSE: Deming stressed the need for work standards on the factory floor.
FALSE
TRUE OR FALSE: Design for manufacture methods are designed to radically increase cycle times.
FALSE
TRUE OR FALSE: Designing for reliability means standardizing parts, modularizing, and using as few parts as possible in a design.
FALSE
TRUE OR FALSE: Downstream activities include all of those activities involving interaction with suppliers.
FALSE
TRUE OR FALSE: Empathy refers to the knowledge and courtesy of employees and their ability to inspire trust and confidence.
FALSE
TRUE OR FALSE: Employee empowerment involves removing decision-making responsibilities from the lowest levels in the organization, thereby freeing up those workers to accomplish more of their primary tasks.
FALSE
TRUE OR FALSE: External customers are employees receiving goods or services from within the same firm.
FALSE
TRUE OR FALSE: Failure costs are categorized into tangible failure costs and intangible failure costs.
FALSE
TRUE OR FALSE: Failure modes and effects analysis begins at the highest level of detail to which the system is designed and works downward.
FALSE
TRUE OR FALSE: Failure modes and effects analysis is an analytical tool that graphically renders the combinations of faults that lead to failure of a system.
FALSE
TRUE OR FALSE: Feigenbaum, Crosby, and Peters developed the survey instrument called SERVQUAL.
FALSE
TRUE OR FALSE: Financial benchmarking involves direct interaction between the initiator firm and the target firms.
FALSE
TRUE OR FALSE: Gap 4 is the difference between expected and perceived services.
FALSE
TRUE OR FALSE: Gathering data through focus groups and surveys are examples of passive data gathering.
FALSE
TRUE OR FALSE: Geometric modeling is used to develop a hand-drawn mathematical description of a part.
FALSE
TRUE OR FALSE: If a leader has power to punish the follower for not following rules or guidelines, the leader has referent power.
FALSE
TRUE OR FALSE: If a process is stable, it will exhibit nonrandom special cause variation instead of random or common cause variation.
FALSE
TRUE OR FALSE: In a benchmarking relationship, the initiator firm is the firm that is being studied.
FALSE
TRUE OR FALSE: In a customer benefits package, the tangibles that define the service are known as service-content.
FALSE
TRUE OR FALSE: In a services blueprint, the area above the line of visibility is referred to as the back office.
FALSE
TRUE OR FALSE: In performance benchmarking, the initiator firm focuses its observation and investigation on business processes.
FALSE
TRUE OR FALSE: In services liability issues center around safety concerns, whereas in manufacturing liability issues relate to malpractice.
FALSE
TRUE OR FALSE: In the control process, the inputs are aligned together to form the product or service.
FALSE
TRUE OR FALSE: Increasing prevention and appraisal costs could result in a significant increase in failure costs.
FALSE
TRUE OR FALSE: Internal customers are the bill-paying receivers of a company's work.
FALSE
TRUE OR FALSE: Internal services are those whose customers pay the bills.
FALSE
TRUE OR FALSE: Just-in-time purchasing increases the number of suppliers used, resulting in increased variability.
FALSE
TRUE OR FALSE: Kanri is the term used to describe the interactive nature of the Hoshin planning process.
FALSE
TRUE OR FALSE: Many companies use single sourcing as a way to increase the number of suppliers.
FALSE
TRUE OR FALSE: Marketing-generated ideas tend to be groundbreaking, risky, and technologically innovative as compared to R&D-generated ideas.
FALSE
TRUE OR FALSE: Outside consultants should not be used to provide training and coaching on benchmarking and other quality-related efforts.
FALSE
TRUE OR FALSE: Phone contacts and focus groups are referred to as hard data.
FALSE
TRUE OR FALSE: Product traceability increases product liability relating to safety hazards.
FALSE
TRUE OR FALSE: Quality development involves the processes that overarch and tie together the quality control and assurance activities.
FALSE
TRUE OR FALSE: Quality function deployment (QFD) describes a method for translating customer requirements into functional design.
FALSE
TRUE OR FALSE: Quality loss function and robust design are concepts included in Ishikawa's quality philosophy.
FALSE
TRUE OR FALSE: Quality measures include objectives, policies, and procedures followed by a firm.
FALSE
TRUE OR FALSE: R&D-generated ideas tend to be more incremental than marketing-generated ideas, and are better aligned with customer needs.
FALSE
TRUE OR FALSE: Reducing process variability and performing acceptance sampling are activities related to quality assurance.
FALSE
TRUE OR FALSE: Reengineering refers to the performance of all the design process steps simultaneously.
FALSE
TRUE OR FALSE: Reliability concerns the willingness or readiness of employees to provide service.
FALSE
TRUE OR FALSE: Reliability is perhaps the most traditional dimension of quality.
FALSE
TRUE OR FALSE: Restructuring is defined as a fundamental rethinking and redesign of business processes.
FALSE
TRUE OR FALSE: Robert C. Camp's approach to management is value-based in that he proposes that people in management live a life that balances professional with personal and spiritual growth.
FALSE
TRUE OR FALSE: Selective services packages are especially tailored for each customer.
FALSE
TRUE OR FALSE: Simplification of processes results in flows that are of lower productivity.
FALSE
TRUE OR FALSE: Soft data are measurement data such as height, weight, volume, or speed that can be measured on a continuous scale.
FALSE
TRUE OR FALSE: Strategic planning implies planning for the short term.
FALSE
TRUE OR FALSE: Strategic planning is at the core of quality management.
FALSE
TRUE OR FALSE: Supplier monitoring is an example of a preventive cost.
FALSE
TRUE OR FALSE: System reliability is defined as the propensity for a part to fail over a given time.
FALSE
TRUE OR FALSE: The "what" of a theoretical model involves the nature, direction, and extent of the relationship among the variables.
FALSE
TRUE OR FALSE: The 5w2h concept is labeled as such because a business process benchmarking project should result in the answers to five questions.
FALSE
TRUE OR FALSE: The Lundvall-Juran quality cost model states that as expenditures in appraisal activities increase, quality conformance should decrease.
FALSE
TRUE OR FALSE: The Unreliable Supplier Dilemma occurs because service companies receive most of their supplies from other service companies.
FALSE
TRUE OR FALSE: The acronym TQEM stands for Total Quality Engineering and Management.
FALSE
TRUE OR FALSE: The concept of interfacing implies that you must have something to offer the target firm in return for sharing information.
FALSE
TRUE OR FALSE: The cost of goods sold to scrap ratio is a multiple factor ratio.
FALSE
TRUE OR FALSE: The departmental approach to design results in fast design cycles.
FALSE
TRUE OR FALSE: The fail points in the services blueprints are referred to as turning points.
FALSE
TRUE OR FALSE: The first component of a complaint-resolution process is contrition.
FALSE
TRUE OR FALSE: The first stage of the service benefit package design process is the definition of a services package.
FALSE
TRUE OR FALSE: The first step in Xerox's 10-step process to benchmarking is identifying whom to benchmark.
FALSE
TRUE OR FALSE: The first step in failure modes and effects analysis is to estimate the likelihood of failure.
FALSE
TRUE OR FALSE: The first step in performing quality function deployment is to develop a listing of technical design elements along the roof of the house.
FALSE
TRUE OR FALSE: The first step in the development of a services blueprint is to isolate fail points.
FALSE
TRUE OR FALSE: The forced-choice model is only useful for companies that are experienced in strategic planning.
FALSE
TRUE OR FALSE: The multilevel prototyping component of the CAD system allows for the cataloging and standardization of parts and components for complex products.
FALSE
TRUE OR FALSE: The operations management view of quality is rooted in the marketing approach.
FALSE
TRUE OR FALSE: The order winning criterion cannot be applied to service strategy.
FALSE
TRUE OR FALSE: The outputs of service are homogeneous, which means that no two services are exactly the same.
FALSE
TRUE OR FALSE: The over-the-wall syndrome refers to difficulties that arise when the design products become complicated to build.
FALSE
TRUE OR FALSE: The primary marketing tools for influencing customer perceptions of quality are conformance and reliability.
FALSE
TRUE OR FALSE: The primary source for external product ideas is research and development.
FALSE
TRUE OR FALSE: The principles for design for reuse include using fewer parts and fewer materials, and using snap-fits instead of screws.
FALSE
TRUE OR FALSE: The process associated with resolving complaints is called the complaint-response process.
FALSE
TRUE OR FALSE: The reengineering approach focuses on the need for in-depth information gathering and analysis.
FALSE
TRUE OR FALSE: The reengineering process involves gathering and analyzing data on an ongoing basis to identify performance trends and changes.
FALSE
TRUE OR FALSE: The relation phase of quality control involves perceiving how interrelationships apply to the larger phenomenon of quality being studied.
FALSE
TRUE OR FALSE: The scrap efficiency can be calculated by dividing the cost of scrap by the cost of goods sold.
FALSE
TRUE OR FALSE: The theory of scientific management was proposed by Joseph Juran.
FALSE
TRUE OR FALSE: The three phases of customer-relationship management systems are response, transition, and feedback.
FALSE
TRUE OR FALSE: The two parts of a SERVQUAL survey are services liability and manufacturing liability.
FALSE
TRUE OR FALSE: The zero-defects approach to quality improvement was proposed by Armand Feigenbaum.
FALSE
TRUE OR FALSE: To segment markets means to distinguish customers or markets according to common characteristics.
FALSE
TRUE OR FALSE: Tom Peters is the principle pioneer of benchmarking.
FALSE
TRUE OR FALSE: Toyota developed the world-class production system known as business process reengineering.
FALSE
TRUE OR FALSE: Value stream mapping and Six Sigma are upstream activities in supply chain management.
FALSE
TRUE OR FALSE: W. Edwards Deming developed the SERVQUAL survey for assessing services quality.
FALSE
TRUE OR FALSE: When a retailer incorrectly feels that the majority of his customers are men shopping for tools when in fact most customers are women shopping for linens, they are experiencing gap 2.
FALSE
SHORT ANSWER: Differentiate between financial ratios and productivity ratios of benchmarking data.
Financial ratios such as return on assets (ROA) or return on investments (ROI) are probably the easiest to obtain and compare. For many financial ratios, all that is needed is an income statement of a firm and a balance sheet. Many of these statistics are available in annual reports and on the Internet. Productivity ratios are useful in measuring the extent to which a firm effectively uses the scarce resources that are available to the firm. These include single-factor, multifactor, and total-factor productivity measures.
SHORT ANSWER: Describe the concept of single sourcing. How is single sourcing related to strategic alliances?
Many companies use single sourcing as a way to reduce the number of suppliers. Single sourcing is a process for developing relationships with few suppliers for long contract terms. Increasingly, single-sourcing arrangements are developing into strategic alliances where the suppliers become de facto subsidiaries to their major customers. In these arrangements, not only are suppliers single-source providers, but they also integrate information systems and quality systems that allow close interaction at all levels.
SHORT ANSWER: Explain the concept of reengineering proposed by Michael Hammer and James Champy.
Michael Hammer and James Champy urged a form of deductive reasoning combined with entertainment that has resulted in unfortunate consequences for many people and companies. The product of this collaboration is termed reengineering. The underlying precept of reengineering is sound: Firms can become inflexible and resistant to change and must be able to change in order to become competitive.
SHORT ANSWER: Describe the relevance of the "systems view" to our understanding of quality management.
Operations management utilizes the systems view that underlies modern quality management thinking. The systems view involves the understanding that product quality is the result of the interactions of several variables, such as machines, labor, procedures, planning, and management. As a result, managers need to understand that it is the "system" and the interactions between the various components of the system that is responsible for quality, rather than a single functional area, such as manufacturing, personnel, or marketing.
TRUE OR FALSE: 360-degree evaluation is a performance evaluation process in which an employee's peers, supervisors, and subordinates are involved in evaluating the worker's performance.
TRUE
TRUE OR FALSE: A benchmark is an organization recognized for its exemplary operational performance.
TRUE
TRUE OR FALSE: A focus group allows a supplier to gather feedback from a group of consumers at one time.
TRUE
TRUE OR FALSE: A guarantee outlines the customer's rights.
TRUE
TRUE OR FALSE: A low-cost orientation is based on continual learning and production competence.
TRUE
TRUE OR FALSE: A method of manufacturing that minimizes waste and pollution is referred to as green manufacturing.
TRUE
TRUE OR FALSE: A services blueprint is a flowchart that isolates potential fail points in a process.
TRUE
TRUE OR FALSE: According to Kaoru Ishikawa, the ideal state of quality control is when inspection is no longer necessary.
TRUE
TRUE OR FALSE: According to the user-based definition of quality, if the customer is satisfied, the product has good quality.
TRUE
TRUE OR FALSE: According to the value-based definition of quality, if the product is perceived as providing good value for the price, it has good quality.
TRUE
TRUE OR FALSE: Actively solicited customer feedback includes all supplier-initiated contact with customers.
TRUE
TRUE OR FALSE: Aesthetics are subjective sensory characteristics such as taste, feel, sound, look, and smell.
TRUE
TRUE OR FALSE: Alignment refers to consistency between different operational subplans and the overall strategic plan.
TRUE
TRUE OR FALSE: An arrow pointing from an independent variable to a dependent variable in a theoretical model typically implies causality.
TRUE
TRUE OR FALSE: Appraisal costs are associated with the direct costs of measuring quality.
TRUE
TRUE OR FALSE: Assertiveness is an example of a communication skill exhibited by a leader.
TRUE
TRUE OR FALSE: Automated drafting results in the creation of a final drawing of the designed product and its components.
TRUE
TRUE OR FALSE: Baselining requires the monitoring of key internal firm performance measures over time to identify trends such as improvement to inform managerial decision making.
TRUE
TRUE OR FALSE: Because business process reengineering affects multiple levels in a firm, abrupt organizational changes are reflected in baselining results.
TRUE
TRUE OR FALSE: Breadth refers to the impact of the reengineering process to the entire organization.
TRUE
TRUE OR FALSE: Breakthrough improvement implies the process has been studied and that some major improvement has resulted in large nonrandom improvement to the process.
TRUE
TRUE OR FALSE: Business process maps are used to identify the exact performance measures and metrics needed from the target firm.
TRUE
TRUE OR FALSE: Capricious labor occurs because many services customers provide themselves as labor inputs into the production process.
TRUE
TRUE OR FALSE: Catchball involves reporting from teams and feedback from management.
TRUE
TRUE OR FALSE: Change is the magnitude of the differences in a product when measured at two different times.
TRUE
TRUE OR FALSE: Commitment to quality means that leaders provide funding, slack time, and resources for quality improvement efforts to be successful.
TRUE
TRUE OR FALSE: Competence means possession of the required skills and knowledge to perform the service.
TRUE
TRUE OR FALSE: Computer-aided inspection is performed by infrared and noncontact sensors.
TRUE
TRUE OR FALSE: Concurrent engineering leads to increased interaction with the customer.
TRUE
TRUE OR FALSE: Control involves gathering data about a process to ensure the process is consistent.
TRUE
TRUE OR FALSE: Core competency is built on the foundation of a long-term commitment to quality and continual process improvement.
TRUE
TRUE OR FALSE: Criticality prioritizes how the design team should be spending its resources.
TRUE
TRUE OR FALSE: Customer rationalization results from agreement between marketing and operations as to which customers add the greatest advantage and profits over time.
TRUE
TRUE OR FALSE: Customer retention is measured as the percentage of customers who return for more service.
TRUE
TRUE OR FALSE: Customer-driven quality represents a proactive approach to satisfying customer needs that is based on gathering data about the customers to learn their needs and preferences.
TRUE
TRUE OR FALSE: Customer-initiated contact, such as submitting an inquiry via a company's Web site, is considered passively solicited customer feedback.
TRUE
TRUE OR FALSE: Customers can exert control over the service provider and achieve customization.
TRUE
TRUE OR FALSE: Cycle times and waste-reduction measures are examples of operating results of benchmarking data.
TRUE
TRUE OR FALSE: Depth refers to organizational elements such as responsibilities, measurements, information technology, and skills.
TRUE
TRUE OR FALSE: Design for manufacture means to design products so that they are cost-effective and simple to build.
TRUE
TRUE OR FALSE: Determining the current performance gap helps the company prioritize which areas are the first candidates for change and improvement.
TRUE
TRUE OR FALSE: Differentiation is achieved by a competitor if the consumer merely perceives the product or service to be unique.
TRUE
TRUE OR FALSE: Dismantling competitors' products to understand the strengths and weaknesses of their designs is called reverse engineering.
TRUE
TRUE OR FALSE: During the technology selection for product development stage of the product development process, preliminary work can be performed to identify key quality characteristics and potential for variability with each of the different materials.
TRUE
TRUE OR FALSE: Electronic data interchange is used to link customer purchasing systems to supplier enterprise resource planning systems.
TRUE
TRUE OR FALSE: Enterprise resource planning systems are used to integrate financial, planning, and control systems into a single architecture.
TRUE
TRUE OR FALSE: Examining a design to see if different components in a product occupy the same space is called interference checking.
TRUE
TRUE OR FALSE: External failure costs are associated with product failure after the production process.
TRUE
TRUE OR FALSE: Fact-based improvement refers to an approach that favors information gathering and analysis.
TRUE
TRUE OR FALSE: Failure modes and effects analysis results in reduction in product development cost.
TRUE
TRUE OR FALSE: Feigenbaum's three-step process to improve quality include quality leadership, quality technology, and organizational commitment.
TRUE
TRUE OR FALSE: Firms that are successful in improving quality take a contingency approach.
TRUE
TRUE OR FALSE: Focus groups draw individuals with similar characteristics or demographics.
TRUE
TRUE OR FALSE: For both manufacturing and service firms, the customer is the core of the business.
TRUE
TRUE OR FALSE: Gap 1 shows that there can be a difference between actual customer expectations and management's idea or perception of customer expectations.
TRUE
TRUE OR FALSE: Gap 3 is the difference between service delivery and service quality specifications.
TRUE
TRUE OR FALSE: Generic services packages are of the one-size-fits-all variety.
TRUE
TRUE OR FALSE: Guarantees should be designed prior to beginning business.
TRUE
TRUE OR FALSE: High customer involvement plays a major role in the determination of service quality.
TRUE
TRUE OR FALSE: Hothouse quality refers to quality programs that receive a lot of hoopla and no follow-through.
TRUE
TRUE OR FALSE: Ideal quality refers to a reference point for determining the quality level of a product or service.
TRUE
TRUE OR FALSE: If a component has a relatively high probability for failure that will affect the overall function of a product, then redundancy is applied.
TRUE
TRUE OR FALSE: If a process is capable, it will consistently produce products that meet specification.
TRUE
TRUE OR FALSE: In functional benchmarking, a company focuses its benchmarking efforts on a single function to improve the operation of that function.
TRUE
TRUE OR FALSE: Industry experts are external sources for product ideas.
TRUE
TRUE OR FALSE: Intangible service attributes cannot be inventoried or carried in stock over long periods of time.
TRUE
TRUE OR FALSE: Internal and external services are similar in that competitive pressures can result in the possible loss of customers.
TRUE
TRUE OR FALSE: Internal failure costs are the costs associated with online failure.
TRUE
TRUE OR FALSE: Just-in-time purchasing involves the usage of long-term contracts that result in the ability to develop and certify suppliers.
TRUE
TRUE OR FALSE: Kaoru Ishikawa is credited with democratizing statistics.
TRUE
TRUE OR FALSE: Knowledge management involves managing the mountain of information generated by Web site usage in a way to improve marketing to key customers.
TRUE
TRUE OR FALSE: Leaders with service vision view service quality as the force underlying profitability and business success.
TRUE
TRUE OR FALSE: Leading involves a power-sharing relationship between two or more individuals where the power is distributed unevenly.
TRUE
TRUE OR FALSE: Legitimate power is derived from the position an individual holds in an organization.
TRUE
TRUE OR FALSE: Life testing is a facet of reliability engineering that determines whether a product will fail under controlled conditions during a specified life.
TRUE
TRUE OR FALSE: Management by fact dictates that decisions are made based on the sound collection and analysis of data.
TRUE
TRUE OR FALSE: Management by objective refers to a process of setting annual goals that are binding on the employee.
TRUE
TRUE OR FALSE: Manufacturing system design is the selection of the product technologies that will result in a low-cost, high-quality product.
TRUE
TRUE OR FALSE: Measurable dimensions, such as height and weight, are often unavailable in services.
TRUE
TRUE OR FALSE: Michael Hammer and James Champy are most closely identified with reengineering.
TRUE
TRUE OR FALSE: Nothing can damage a quality improvement effort faster than management's failure to consider implementing changes that employees recommend.
TRUE
TRUE OR FALSE: Openness can create a competitive advantage through creating psychological barriers to competition.
TRUE
TRUE OR FALSE: Operations was the first functional field of management to adopt quality as its own.
TRUE
TRUE OR FALSE: Ordinal data are ranked so one measure is higher than the next.
TRUE
TRUE OR FALSE: Performance refers to the efficiency with which a product achieves its intended purpose.
TRUE
TRUE OR FALSE: Product idea generation is the first step in the project development process.
TRUE
TRUE OR FALSE: Productivity ratios are useful in measuring the extent to which a firm effectively utilizes the scarce resources that are available to the firm.
TRUE
TRUE OR FALSE: Providing employee recognition and planning for quality improvement are activities related to quality management.
TRUE
TRUE OR FALSE: Quality at the source means that all workers are responsible for their own work and perform needed inspections at each stage of the process to maintain process control.
TRUE
TRUE OR FALSE: RCDQ is the acronym for reactive customer-driven quality.
TRUE
TRUE OR FALSE: Referent power is derived from personal charisma or charm.
TRUE
TRUE OR FALSE: Responsiveness is the willingness of the service provider to be helpful and prompt in providing service.
TRUE
TRUE OR FALSE: Service reliability differs from product reliability in that it relates to the ability of the service provider to perform the promised service dependably and accurately.
TRUE
TRUE OR FALSE: Service supply chains are bidirectional, which means that service customers actually provide inputs to the supply chain.
TRUE
TRUE OR FALSE: Services have more diverse quality attributes than products.
TRUE
TRUE OR FALSE: Services process blueprinting places the focus on front-office activities.
TRUE
TRUE OR FALSE: Simultaneous production and consumption of services means that you have to do it right the first time.
TRUE
TRUE OR FALSE: Single-sourcing arrangements are developing into strategic alliances where suppliers become de facto subsidiaries to their major customers.
TRUE
TRUE OR FALSE: Strategic benchmarking involves observing how others compete.
TRUE
TRUE OR FALSE: Superordinate goals pertain to achieving a higher end that benefits not just the individual but the group.
TRUE
TRUE OR FALSE: Sustainability is the ability to meet the needs of the current generation without compromising the ability of future generations to meet their needs.
TRUE
TRUE OR FALSE: TQEM systems involve a holistic systems view of the processes causing environmental degradation.
TRUE
TRUE OR FALSE: Tangibles include the physical evidence of the service.
TRUE
TRUE OR FALSE: The "why" of a theory is the theoretical model that holds the model together.
TRUE
TRUE OR FALSE: The 5w2h questions should be viewed in the context of a process.
TRUE
TRUE OR FALSE: The SERQUAL instrument is useful for performing gap analysis.
TRUE
TRUE OR FALSE: The SERVQUAL instrument is accepted as a standard for assessing different dimensions of services quality.
TRUE
TRUE OR FALSE: The Taguchi concept of robust design states that products and services should be designed so that they are inherently defect-free and of high quality.
TRUE
TRUE OR FALSE: The Taguchi method provides a method for adjusting the mean of a process by optimizing controllable variables.
TRUE
TRUE OR FALSE: The advantage of the conformance definition of quality for products is that it is easily quantified.
TRUE
TRUE OR FALSE: The aspect of customer-relationship management asserts that he or she is a valued asset to be managed.
TRUE
TRUE OR FALSE: The complaint-resolution process involves the transformation of a negative situation into one in which the complainant is restored to the state existing prior to the occurrence of a problem.
TRUE
TRUE OR FALSE: The contingency approach to quality helps settle the different perceptions concerning the definition of quality.
TRUE
TRUE OR FALSE: The conversion process results in outputs that are eventually sold to customers.
TRUE
TRUE OR FALSE: The core values of an organization refer to guiding operating principles that simplify decision making in that organization.
TRUE
TRUE OR FALSE: The enhancement phase of customer-relationship management involves improving service to the customer through the use of information systems.
TRUE
TRUE OR FALSE: The external customers are the ultimate people the company is trying to satisfy with its work.
TRUE
TRUE OR FALSE: The first step a benchmarking firm must take is to document current performance.
TRUE
TRUE OR FALSE: The four elements of a theory are what, how, why, and who-where-when.
TRUE
TRUE OR FALSE: The gap refers to the differences between desired levels of performance and actual levels of performance.
TRUE
TRUE OR FALSE: The greater potential for increasing customer satisfaction lies in addressing tangibles first.
TRUE
TRUE OR FALSE: The idea behind fail-safing is to ensure that certain errors will never occur.
TRUE
TRUE OR FALSE: The major theoretical contribution of Ishikawa is his emphasis on total involvement of the operating employees in improving quality.
TRUE
TRUE OR FALSE: The objective of customer benefits package design is to evaluate each attribute in terms of process and service encounter capability.
TRUE
TRUE OR FALSE: The over-the-wall syndrome is demonstrated by looking at the design process sequentially.
TRUE
TRUE OR FALSE: The primary goal of failure modes, effects, and criticality analysis is to develop priorities for corrective action based on estimated risk.
TRUE
TRUE OR FALSE: The production and consumption of services often occur simultaneously.
TRUE
TRUE OR FALSE: The pursuit of quality does not safeguard a company against bad management.
TRUE
TRUE OR FALSE: The reactive customer-driven quality shows that a firm's quality performance is increasing while customers' expectations also are increasing.
TRUE
TRUE OR FALSE: The scrap efficiency formula normalizes the cost of scrap based on the volume of business that a firm does.
TRUE
TRUE OR FALSE: The three aspects of the Juran trilogy are planning, control, and improvement.
TRUE
TRUE OR FALSE: The three spheres of quality are quality control, quality assurance, and quality management.
TRUE
TRUE OR FALSE: The trait dimension of leadership deals with variables, such as height, productivity, and intelligence.
TRUE
TRUE OR FALSE: The two dimensions of strategic planning are content and process.
TRUE
TRUE OR FALSE: The ultimate goal of strategic quality planning is to aid an organization to achieve sustainable competitive advantage.
TRUE
TRUE OR FALSE: The underlying precept of re-engineering is that firms can become inflexible and resistant to change.
TRUE
TRUE OR FALSE: To be effective, a guarantee should be conditional.
TRUE
TRUE OR FALSE: To begin the management process, a strategy statement outlining the goals and strategies to be used is developed.
TRUE
TRUE OR FALSE: Total factor productivity is less sensitive to differences in costing conventions and accounting practices.
TRUE
TRUE OR FALSE: Using deduction, researchers propose a model based on prior research and design an experiment to test the theoretical model.
TRUE
TRUE OR FALSE: Variety refers to the differences in products that are produced and marketed by a single firm at any given time.
TRUE
TRUE OR FALSE: Voluntary services are services that we actively seek out and employ of our own accord.
TRUE
TRUE OR FALSE: W. Edwards Deming enumerated the 14 points for management.
TRUE
TRUE OR FALSE: Warranties and concessions are examples of failure costs.
TRUE
TRUE OR FALSE: When analyzing the results of a survey, open-ended questions are analyzed with Pareto analysis using bar charts of the various categories of responses.
TRUE
SHORT ANSWER: What are the four stages of the service benefit package design process?
A customer benefits package consists of both tangibles that define the service and intangibles that make up the service. The tangibles are known as goods-content. Intangibles are referred to as service-content. The four stages of the service benefit package design process are as follows: • Idea/concept generation • The definition of a services package • Process definition and selection • Facilities requirement definition
SHORT ANSWER: Discuss the value-added perspective on quality.
A customer-based perspective on quality that is used by services, manufacturing, and public sector organizations involves the concept of value. A value-added perspective on quality involves a subjective assessment of the efficacy of every step of the process for the customer. A value-added activity can be pinpointed by asking, "Would this activity matter to the customer?" In other words, in most cases, a value-added activity will have economic value to the customer.
SHORT ANSWER: What is the function of a focus group?
A focus group allows a supplier to gather feedback from a group of consumers at one time. The groups are focused in two ways: First, focus groups narrowly address a single topic or group of topics. Second, focus groups draw individuals with similar characteristics or demographics. This limits the discussion to subjects and market segments that are of particular interest to the firm.
SHORT ANSWER: Explain the relationship between quality and cost.
A fundamental difference exists between a low-price strategy, which is based on competitive pricing, and a low-cost orientation that is based on continual learning and production competence. Because of the possible relationship between pricing and low-cost structure, we anticipate that quality will tend to provide a competitive advantage relative to other competitors by allowing firms with a high-quality strategy to incur lower costs they can pass along to the customers.
SHORT ANSWER: Explain the use of performance measures or indicators in performance improvement.
A major consideration in performance improvement involves the creation and use of performance measures or indicators. Performance measures or indicators are measurable characteristics of products, services, processes, and operations the company uses to track and improve performance. The measures or indicators should be selected to best represent the factors that lead to improved customer, operational, and financial performance. A comprehensive set of measures or indicators tied to customer and/or company performance requirements represents a clear basis for aligning all activities with the company's goals. Through the analysis of data from the tracking processes, the measures or indicators themselves may be evaluated and changed to better support such goals.
SHORT ANSWER: Explain the concept of baselining.
A methodology that can be applied in assessing business process reengineering impacts is baselining. Baselining requires the monitoring of key internal firm performance measures over time to identify trends such as improvement (or decline) to inform managerial decision making. The baselining process involves identifying measures, establishing time frames for future data collection, gathering data, and analyzing data on an ongoing basis to identify performance trends and changes.
SHORT ANSWER: What is services blueprinting?
A services blueprint is a flowchart that isolates potential fail points in a process. There are four steps to developing a services blueprint: (1) identify processes, (2) isolate fail points, (3) establish a time frame, and (4) analyze profits. It is recommended that services blueprints be kept on every process in a service, and that a "keeper of the blueprint" makes the blueprints available for others in the firm.
________ is a process for developing relationships with few suppliers for long contract terms. A) Single sourcing B) Gap analysis C) Supplier rationalization D) Segmentation E) Source loyalty
A) Single sourcing
Ajax Carpet Cleaning promises to clean 100 square feet of carpet for $15.00. Their work standard for such a job is $5.00 for labor and $2.00 for cleaning supplies. Since they use the customer's electricity, there are no other inputs in to the cleaning process. What is their labor productivity? A) 3.00 B) 7.50 C) 20.00 D) 10.0 E) 50.0
A) 3.00
Make-Do, a national automotive painting service, paints cars for $199. Their work standard for such a job is $20.00 for labor and $30.00 for paint. They consume $10 worth of supplies and $3 of energy during their service. What is their total factor productivity? A) 3.16 B) 9.95 C) 5.83 D) 13.6 E) 18.24
A) 3.16
A particular customer requirement is associated with a technical requirement, has an importance of 3, a target value of 1, and a sales point value of 3. The absolute weight of this customer requirement is ________. A) 9 B) 45 C) 6 D) 90 E) 81
A) 9
________ requires the monitoring of key internal firm performance measures over time to identify trends such as improvement to inform managerial decision making. A) Baselining B) Benchmarking C) Reengineering D) Reverse engineering E) Restructuring
A) Baselining
________ is based on the concept of 5w2h. A) Business process benchmarking B) Statistical process control C) Total quality management D) Business process reengineering E) Reverse engineering
A) Business process benchmarking
________ are also known as end users. A) External B) Internal C) Capital D) Primary E) Secondary
A) External
________ customers are the bill-paying receivers of a company's work. A) External B) Internal C) Primary D) Secondary E) Capital
A) External
________ failure costs are associated with product failure after the production process. A) External B) Indirect C) Direct D) Generic E) Internal
A) External
________ services are those whose customers pay the bills. A) External B) Tangible C) Internal D) Discrete E) Intangible
A) External
The theory of scientific management was proposed by ________. A) Frederick W. Taylor B) Joseph M. Juran C) Philip Crosby D) W. Edwards Deming E) Kaoru Ishikawa
A) Frederick W. Taylor
________ shows the difference between actual customer expectations and management's idea or perception of customer expectations. A) Gap 1 B) Gap 2 C) Gap 3 D) Gap 4 E) Gap 5
A) Gap 1
________ is used to develop a computer compatible mathematical description of a part. A) Geometric modeling B) Engineering analysis C) Multilevel prototyping D) Process modeling E) Concurrent engineering
A) Geometric modeling
Which of the following best defines the depth factor of reengineering? A) It refers to organizational elements such as responsibilities, measurements, information technology, and skills. B) It refers to the monitoring of key internal firm performance measures over time to identify trends such as improvement in managerial decision making. C) It refers to the impact of the reengineering process to the entire organization. D) It refers to the dismantling of competitors' products to understand the strengths and weaknesses of their designs. E) It refers to the sharing of information between companies so that both can improve.
A) It refers to organizational elements such as responsibilities, measurements, information technology, and skills.
________ was responsible for the development and dissemination of the basic seven tools of quality. A) Kaoru Ishikawa B) Philip Crosby C) Genichi Taguchi D) Armand Feigenbaum E) Joseph M. Juran
A) Kaoru Ishikawa
________ management involves managing the mountain of information generated by Web site usage in a way to improve marketing to key customers. A) Knowledge B) Order C) Sales D) Campaign E) Channel
A) Knowledge
________ involves a power-sharing relationship between two or more individuals where the power is distributed unevenly. A) Leading B) Empowerment C) Planning D) Organizing E) Controlling
A) Leading
________ refers to the professionalism of the service provider and whether reasonable measures were taken to ensure the customer's well-being. A) Malpractice B) Negligence C) Indifference D) Mismanagement E) Empathy
A) Malpractice
________ refers to the efficiency with which a product achieves its intended purpose. A) Performance B) Features C) Reliability D) Conformance E) Serviceability
A) Performance
________ is derived from a leader's possession of special knowledge. A) Power of expertise B) Reward power C) Coercive power D) Referent power E) Legitimate power
A) Power of expertise
________ costs include costs such as training, quality planning, process engineering, and other costs associated with quality beforehand. A) Prevention B) Process C) Appraisal D) Assessment E) Failure
A) Prevention
The acronym QFD stands for ________. A) Quality Function Deployment B) Quality Feasibility Development C) Quality Function Design D) Quality Factors for Development E) Quality Feasibility Data
A) Quality Function Deployment
________ means that all workers are responsible for their own work and perform needed inspections at each stage of the process to maintain process control. A) Quality at the source B) In-process management C) Constancy of purpose D) Parallel processing E) Just-in-time approach
A) Quality at the source
________ involves the processes that overarch and tie together the quality control and assurance activities. A) Quality management B) Quality execution C) Quality implementation D) Quality testing E) Quality development
A) Quality management
________ is defined as the fundamental rethinking and redesign of business processes. A) Reengineering B) Benchmarking C) Baselining D) Reverse engineering E) Restructuring
A) Reengineering
________ is the principle pioneer of benchmarking. A) Robert C. Camp B) Tom Peters C) Michael Hammer D) James Champy E) Stephen R. Covey
A) Robert C. Camp
________ benchmarking involves observing how others compete. A) Strategic B) Product C) Performance D) Functional E) Process
A) Strategic
Over-the-wall syndrome refers to the difficulties that arise when ________. A) different types of engineers work in totally different departments B) firms integrate financial, planning, and control systems into a single architecture C) translating customer requirements into functional design D) environmental issues become key considerations for companies designing products E) the design products become complicated to build
A) different types of engineers work in totally different departments
A benchmarking effort that is limited to studying the purchasing department of another firm is referred to as ________ benchmarking. A) functional B) performance C) process D) strategic E) product
A) functional
The ________ phase of quality control involves perceiving how interrelationships apply to the larger phenomenon of quality being studied. A) generalization B) synthesis C) relation D) experimentation E) analysis
A) generalization
The ________ component of a CAD system allows for the cataloging and standardization of parts and components for complex products. A) group technology B) geometric modeling C) multilevel prototyping D) product testing E) concurrent engineering
A) group technology
Phone contacts, focus groups, and survey results are referred to as ________ data. A) hard B) soft C) active D) passive E) rational
A) hard
What is the first step in the development of a service blueprint? A) identify processes B) isolate fail points C) establish a time frame D) eliminate highest risks E) analyze profits
A) identify processes
Commitment to quality is measured ________. A) in decades B) in quarters C) in budget-cycles D) annually E) monthly
A) in decades
Using the ________, quality costs can be modeled to show the trade-offs between these costs. A) law of diminishing marginal returns B) order-winning criterion C) forced-choice model D) supply chain strategy E) PAF paradigm
A) law of diminishing marginal returns
The facet of reliability engineering that determines whether a product will fail under controlled conditions during a specified life is referred to as ________. A) life testing B) reengineering C) concurrent prototyping D) value stream mapping E) statistical process control
A) life testing
In the forced-choice model, the organization's position is determined by examining ________. A) major future programs B) major technological forces C) key government issues D) explicit strategies of competitors E) broad economic assumptions
A) major future programs
Which of the following is an internal source for product ideas? A) management B) industry experts C) competitors D) inventors E) customers
A) management
The heterogeneous nature of services means that ________. A) no two services are exactly the same B) they cannot be inventoried C) customers cannot be involved in the production of the service D) production and consumption of services occur simultaneously E) cannot be carried in stock over long periods of time
A) no two services are exactly the same
The concept of ________ implies that you must have something to offer the target firm in return for sharing information. A) reciprocity B) baselining C) reengineering D) interfacing E) restructuring
A) reciprocity
If a component has a relatively high probability for failure that will affect the overall function of a product, then ________ is applied so that a backup system can take over for the failed primary system. A) redundancy B) life testing C) concurrent engineering D) statistical process control E) value stream mapping
A) redundancy
If a leader is charismatic or charming and is followed because he or she is liked, then the leader has ________. A) referent power B) coercive power C) power of expertise D) legitimate power E) reward power
A) referent power
Which of the following determinants of service quality involves consistency of performance and dependability? A) reliability B) responsiveness C) competence D) access E) credibility
A) reliability
Gap 4 shows the difference between ________. A) service delivery and external communications to customers B) management perceptions of customer expectations and expected service C) service delivery and service quality specifications D) expected service and perceived service E) service quality specifications and management perceptions of customer expectation
A) service delivery and external communications to customers
In a customer benefits package, intangibles are referred to as ________. A) service-content B) goods-content C) quality-content D) process-content E) product-content
A) service-content
A(n) ________ consists of a series of items designed to capture perceptions. A) survey B) focus group C) ordinal data system D) passive data gathering E) active data gathering
A) survey
Which of the following determinants include the physical evidence of the service? A) tangibles B) aesthetics C) features D) intangibles E) logistics
A) tangibles
What is the primary contribution of Robert C. Camp? A) the concept of benchmarking B) his assertion that the entire organization should be involved in improving quality C) the zero-defects approach to quality improvement D) his emphasis on total involvement of the operating employees in improving quality E) the quality loss function and the concept of robust design
A) the concept of benchmarking
Which of the following best defines the front office in a service blueprint? A) the portion of the firm's activities that the customer can see B) the area in the firm where the majority of the work is done C) the portion of the firm's activities that the customer cannot see but is necessary to perform D) the area in the firm where the majority of the profitability is generated E) the area in the firm where the employees plan quality initiatives
A) the portion of the firm's activities that the customer can see
The acronym TQEM stands for ________. A) total quality environmental management B) total quality engineering and management C) total quality employee management D) total quality energy management E) total quality evaluation and management
A) total quality environmental management
Services that we actively seek out and employ of our own accord are referred to as ________ services. A) voluntary B) internal C) external D) intangible E) involuntary
A) voluntary
The ________ of a theoretical model is the theoretical glue that holds the model together. A) why B) what C) how D) who-where-when E) which
A) why
SHORT ANSWER: What sort of consequences can ensue if management sets numeric goals for quality improvement?
According to Donald Wheeler, a quality expert, when numeric goals for quality improvement are set, one of three things will occur: 1. People will achieve the goals and incur positive results. 2. People will distort the data. 3. People will distort the system. There are many practical examples that could be drawn from public policy.
SHORT ANSWER: Differentiate between control and breakthrough with an example.
According to Juran, control is a process-related activity that ensures processes are stable and provides a relatively consistent outcome. Control involves gathering data about a process to ensure the process is consistent. Breakthrough improvement implies the process has been studied and that some major improvement has resulted in large nonrandom improvement to the process. The difference between control and breakthrough can be understood when considering a disease such as polio. Control activities involved improving health by quarantining people who had the disease. Breakthrough improvement occurred with the development of the polio vaccine that eradicated the disease. It is important to understand that control and breakthrough-related activities should occur simultaneously.
SHORT ANSWER: Discuss the contributions of Armand Feigenbaum to quality thinking.
Armand Feigenbaum proposed 19 steps for improving quality. Feigenbaum's primary contribution to quality thinking in America was his assertion that the entire organization should be involved in improving quality. He was the first in the United States to move quality from the offices of the specialist back to the operating workers. Feigenbaum proposes a three-step process to improving quality. These steps involve quality leadership, quality technology, and organizational commitment. Leadership is the motivating force for quality improvement. Quality technology includes statistics and machinery that can be used to improve technology. Organizational commitment includes everyone in the quality struggle. Major impediments to improving quality included the four deadly sins of hothouse quality, wishful thinking, producing overseas, and confining quality to the factory.
________ costs are associated with the direct costs of measuring quality. A) Failure B) Appraisal C) Assessment D) Prevention E) Process
B) Appraisal
________ often results in unintended responses, and causes the follower to rebel and attempt to even the power relationship. A) Reward power B) Coercive power C) Legitimate power D) Power of expertise E) Referent power
B) Coercive power
________ products are new products using similar technologies that can coexist in a family of products. A) Contiguous B) Complementary C) Differentiated D) Concurrent E) Variable
B) Complementary
________ refers to how often a failure will occur, how easy it is to diagnose, and whether it can be fixed. A) Reliability B) Criticality C) Traceability D) Feasibility E) Maintainability
B) Criticality
________ include customer support and focusing on delivery reliability. A) Inbound logistics B) Downstream activities C) Core process activities D) Upstream activities E) Outbound logistics
B) Downstream activities
________ systems are used to integrate financial, planning, and control systems into a single architecture. A) Product data management B) Enterprise resource planning C) Computer-aided design D) Business process management E) Information technology management
B) Enterprise resource planning
________ minimizes the number of suppliers used, resulting in decreased variability. A) Parallel processing B) Just-in-time purchasing C) Management by objective D) In-process management E) Constancy of purpose
B) Just-in-time purchasing
________ refers to a process of setting annual goals, typically during a performance appraisal, that are binding on the employee. A) Just-in-time approach B) Management by objective C) In-process management D) Parallel processing E) Constancy of purpose
B) Management by objective
According to Garvin's ________ definition of quality, quality is conformance to the design specifications. A) transcendent B) manufacturing-based C) user-based D) product-based E) value-based
B) Manufacturing-based
________ is also called the 80/20 rule. A) Ishikawa's quality philosophy B) Pareto's law C) Juran trilogy D) Taguchi method E) Deming's points for management
B) Pareto's law
________ refers to activities associated with guaranteeing the quality of a product or service. A) Quality control B) Quality assurance C) Quality management D) Quality implementation E) Quality execution
B) Quality assurance
SQI is an acronym for ________. A) Sequential Quality Initiative B) Service Quality Indicator C) Structured Query Informatics D) Service Quotient Intel E) Structured Quality Intern
B) Service Quality Indicator
Which of the following statements is true? A) It is easy to obtain hard data relating to services because services' attributes are intangible. B) Simultaneous production and consumption of services means that you have to do it right the first time. C) Customer contact leads to a decrease in variability in the process. D) Service liability issues center around safety concerns. E) Manufacturing liability issues often relate to malpractice.
B) Simultaneous production and consumption of services means that you have to do it right the first time.
________ data is used to compare employee and customer perceptions of quality. A) Hard B) Soft C) Active D) Passive E) Rational
B) Soft
________ is an engineering-related contribution to quality management that is concerned with monitoring process capability and process stability. A) Reengineering B) Statistical process control C) Redundancy testing D) Concurrent engineering E) Life testing
B) Statistical process control
In the ________ phase of quality control, a process is broke into its fundamental pieces. A) synthesis B) analysis C) experimentation D) generalization E) relation
B) analysis
A(n) ________ relationship is one in which the customer provides a long-term, steady income stream to the provider. A) perpetual B) annuity C) active D) rational E) passive
B) annuity
Garvin's ________ definition of quality states that if the customer is satisfied, the product has good quality. A) product-based B) user-based C) value-based D) manufacturing-based E) transcendent
B) User-based
What does segmenting markets involve? A) distinguishing expected service and perceived service B) distinguishing customers according to common characteristics C) analyzing the management perceptions of consumer expectations D) distinguishing service quality specs and service delivery E) analyzing the external methods to communicate with customers
B) distinguishing customers according to common characteristics
In the forced-choice model, the environmental assessment is completed by examining ________. A) the forecast of operational needs B) explicit strategies of competitors C) the statement of mission D) interrelated set of financial and nonfinancial objectives E) major future programs
B) explicit strategies of competitors
A(n) ________ group allows a supplier to gather feedback from a group of consumers at one time. A) access B) focus C) service D) ordinal E) discussion
B) focus
What is the first step in the product development process? A) project customer needs B) generate product ideas C) process technology selection D) manufacturing system design E) marketing plan design
B) generate product ideas
What is the primary contribution of Armand Feigenbaum? A) the concept of benchmarking B) his assertion that the entire organization should be involved in improving quality C) the zero-defects approach to quality improvement D) his emphasis on total involvement of the operating employees in improving quality E) the quality loss function and the concept of robust design
B) his assertion that the entire organization should be involved in improving quality
Which of the following is a vision skill exhibited by a leader? A) decision making B) identifying opportunities C) risk taking D) conflict management E) time management
B) identifying opportunities
Which of the following factors is not addressed by the reengineering approach to quality improvement? A) team approach B) information analysis C) strategic planning D) customer focus E) quality assurance
B) information analysis
Toyota developed the world-class production system known as ________. A) business process reengineering B) just-in-time C) total quality management D) benchmarking E) statistical process control
B) just-in-time
What is the final step in the product development process? A) project customer needs B) manufacture, delivery, and use C) final product definition D) product evaluation E) manufacturing system design
B) manufacture, delivery, and use
Which of the following variables is at the core of quality management? A) quality breakthrough B) quality assurance C) strategic planning D) information analysis E) team approach
B) quality assurance
Customer-initiated contact such as filling out a restaurant complaint card, calling a toll-free complaint line, or submitting an inquiry via a company's Web site, is considered ________. A) customer rationalization B) passively solicited customer feedback C) actively solicited customer feedback D) reactive customer-driven quality E) customer segmentation
B) passively solicited customer feedback
The primary marketing tools for influencing customer perceptions of quality are ________. A) features and aesthetics B) price and advertising C) value and conformance D) durability and reliability E) manufacturing integrity and serviceability
B) price and advertising
Two of the major emphases in engineering are the areas of ________. A) manufacturing excellence and long-term planning B) product design and process design C) employee empowerment and workforce training D) supplier development and consumer growth E) marketing and sales
B) product design and process design
Which step in the design life cycle is typically an iterative process? A) idea generation B) prototype development C) preliminary design D) implementation E) product design and evaluation
B) prototype development
Which of the following activities is related to quality management? A) measuring process performance B) providing employee recognition C) off-line experimentation D) design team formation and management E) developing and maintaining control charts
B) providing employee recognition
What are the three steps proposed by Feigenbaum to improve quality? A) quality inspection, quality accountability, and quality control B) quality leadership, quality technology, and organizational commitment C) employee empowerment, total quality management, and statistical process control D) self-directed work teams, employee empowerment, and total quality management E) quality leadership, quality management, and total quality control
B) quality leadership, quality technology, and organizational commitment
Michael Hammer and James Champy are most closely identified with ________, A) statistical process control B) reengineering C) total quality management D) benchmarking E) Six Sigma quality
B) reengineering
A case of ________ power is the mentor who is admired by his or her protégés who want to be like the mentor. A) reward B) referent C) legitimate D) coercive E) power of expertise
B) referent
The marketing function trend that concentrates on satisfying and delivering value to the customer is known as ________. A) common cause variation B) relationship management C) customer-centric approach D) special cause variation E) change management
B) relationship management
The ________ model shows that a firm's quality performance is increasing while customer's expectations are also increasing. A) restructured customer-driven quality B) relative customer-driven quality C) redesigned customer-driven quality D) receptive customer-driven quality E) reactive customer-driven quality
B) relative customer-driven quality
Which of the following determinants of service quality concerns the willingness or readiness of employees to provide service? A) reliability B) responsiveness C) competence D) credibility E) courtesy
B) responsiveness
The Taguchi concept of ________ states that products and services should be designed so that they are inherently defect-free and of high quality. A) homoscedasticity B) robust design C) quality loss function D) ideal quality E) design conformance
B) robust design
Which of the following is not one of the four stages of the service benefit package design process? A) idea/concept generation B) service concept investigation C) the definition of a services package D) process definition and selection E) facilities requirement definition
B) service concept investigation
Which of the following choices correctly matches one of Garvin's dimensions of quality with its definition? A) reliability-refers to the efficiency with which a product achieves its intended purpose B) serviceability-the ease of repair of a product C) conformance-the degree to which a product tolerates stress or trauma without failing D) performance-subjective sensory characteristics such as taste, feel, sound, look, and smell E) aesthetics-refers to the propensity for a product to perform consistently over its useful design life
B) serviceability-the ease of repair of a product
Which of the following is a planning skill exhibited by a leader? A) developing competence B) structuring C) risk taking D) identifying opportunities E) assertiveness
B) structuring
The ultimate goal of strategic quality planning is to help an organization achieve ________. A) maximum profitability B) sustainable competitive advantage C) an increase in market share D) cost minimization E) growth in revenues
B) sustainable competitive advantage
During ________ stage of the product development process, preliminary work can be performed to identify key quality characteristics and potential for variability with each of the different materials. A) product marketing and supply chain preparation B) technology selection for product development C) technology development for process selection D) final product definition E) manufacturing system design
B) technology selection for product development
Which of the following best defines the back office in a service blueprint? A) the area in the firm where the majority of the work is done B) the portion of the firm's activities that the customer cannot see but is necessary to perform C) the portion of the firm's activities that the customer can see D) the area in the firm where the majority of the profitability is generated E) the area in the firm where the employees plan quality initiatives
B) the portion of the firm's activities that the customer cannot see but is necessary to perform
A ________ perspective on quality involves a subjective assessment of the efficacy of every step on the process for the customer. A) cultural B) value-added C) operations D) strategic management E) financial
B) value-added
Which of the following choices correctly matches one of Garvin's definitions of quality with its explanation? A) manufacturing-based definition-quality is found in the components and attributes of a product B) value-based definition-if the product conforms to design specifications, it has good quality C) user-based definition-if the customer is satisfied, the product has good quality D) product-based definition-quality is something that is intuitively understood but nearly impossible to communicate, such as beauty or love E) transcendent definition-if the customer is satisfied, the product has good quality
B) value-based definition-if the product conforms to design specifications, it has good quality
Which of the following is considered a failure cost? A) on-site performance tests B) warranty C) supplier quality assurance D) robust design E) product quality audits
B) warranty
The ________ of a theoretical model involves which variables or factors are included in the model. A) why B) what C) how D) who-where-when E) which
B) what
________ services include services such as data processing, printing, and mail. A) Tangible B) External C) Internal D) Intangible E) Discrete
C) Internal
SHORT ANSWER: State the four key problems with benchmarking.
Benchmarking is not a simple activity, and it can be difficult to implement any of these tools and concepts. There are four key problems with benchmarking: • There may be substantial difficulty obtaining cooperation from other firms in your own industry. Most organizations have much less clout. The thing to remember is reciprocity. To be effective, you must have something to offer the target firm in return for sharing information. • The predominance of functional benchmarking with firms in noncompeting industries makes it difficult to benchmark with these firms. It takes much ingenuity to identify benchmarks properly from noncompeting firms. • Your efforts will be wasted unless you fully understand your own processes before you benchmark someone else. Using tools such as business process maps, it is possible to identify the exact performance measures and metrics needed from the target firm. • Benchmarking is time-consuming and costly.
SHORT ANSWER: Explain the process of benchmarking.
Benchmarking is the sharing of information between companies so that both can improve. The first step a benchmarking firm must take is to document current performance. This activity will allow the company to pinpoint its goals and find a company (inside or outside the industry) that already excels at what it is trying to accomplish, study what it does, and gather ideas for improvement. Benchmarking is useful for externally validating an organization's approach to its business. If the managers in a firm are unsure that they are pursuing a useful plan of action, benchmarking can help them understand how what they are doing stacks up against the masters.
If the cost of goods sold reported by Champion Cooling Co. is equal to $600,000 and the scrap cost amounts to $50,000, what is their scrap efficiency? A) 8.33 B) 30.0 C) 12.0 D) 18.5 E) 22.8
C) 12.0
________ is a performance evaluation process in which an employee's peers, supervisors, and subordinates are involved in evaluating the worker's performance. A) Circular evaluation B) Upward-downward evaluation C) 360-degree evaluation D) Broad spectrum evaluation E) Inward-outward evaluation
C) 360-degree evaluation
________ reliability is defined as the propensity for a part to fail over a given time. A) System B) Concurrent C) Component D) Process E) Perpetual
C) Component
________ refers to the performance of all the design process steps simultaneously. A) Just-in-time engineering B) Lean engineering C) Concurrent engineering D) Reengineering E) Reverse engineering
C) Concurrent engineering
The first theoretical attempt to link quality improvement to financial results was the ________. A) Juran cost-benefit analysis B) Garvin quality matrix C) Deming value chain D) 360-degree evaluation E) law of diminishing marginal returns
C) Deming value chain
________ is the degree to which a product tolerates stress or trauma without failing. A) Serviceability B) Conformance C) Durability D) Performance E) Reliability
C) Durability
________ shows the difference between service delivery and service quality specifications. A) Gap 1 B) Gap 2 C) Gap 3 D) Gap 4 E) Gap 5
C) Gap 3
Which of the following best defines the breadth factor of reengineering? A) It refers to organizational elements such as responsibilities, measurements, information technology, and skills. B) It refers to the monitoring of key internal firm performance measures over time to identify trends such as improvement in managerial decision making. C) It refers to the impact of the reengineering process to the entire organization. D) It refers to the dismantling of competitors' products to understand the strengths and weaknesses of their designs. E) It refers to the sharing of information between companies so that both can improve.
C) It refers to the impact of the reengineering process to the entire organization.
________ referred to the communication problem when he stated that "the language of management is money." A) Deming B) Shewhart C) Juran D) Garvin E) Crosby
C) Juran
________ costs are costs that limit the occurrence of defects and imperfections. A) Process B) Assessment C) Prevention D) Failure E) Appraisal
C) Prevention
________ consists of the steps for developing strategy within an organization. A) Prototype B) Criterion C) Process D) Content E) Paradigm
C) Process
Which of the following statements is true? A) Tangible service attributes cannot be inventoried or carried in stock over long periods of time. B) The homogeneous nature of services means that no two services are exactly the same. C) Production and consumption of services often occur simultaneously. D) Customers cannot exert control over the service provider to achieve customization. E) Customers tend to be more involved in the production of goods than in the production of services.
C) Production and consumption of services often occur simultaneously.
________ are useful in measuring the extent to which a firm effectively uses the scarce resources that are available to the firm. A) Quality measures B) Financial ratios C) Productivity ratios D) Market share data E) Structural measures
C) Productivity ratios
________ describes a method for translating customer requirements into functional design. A) Manufacturing system design B) Final product definition C) Quality function deployment D) Product design specification E) Customer future projection
C) Quality function deployment
________ is the willingness of the service provider to be helpful and prompt in providing service. A) Assurance B) Service reliability C) Responsiveness D) Empathy E) Conformance
C) Responsiveness
________ is a service improvement technique that allows managers to analyze their service processes at a very detailed level. A) Generic service analysis B) Selective service analysis C) Service transaction analysis D) Service data analysis E) Service quality analysis
C) Service transaction analysis
________ results in the suppliers becoming de facto subsidiaries to their major customers. A) Segmentation B) Gap analysis C) Strategic alliance D) Source loyalty E) Supplier rationalization
C) Strategic alliance
________ service packages are especially tailored for each customer. A) Selective B) Constricted C) Unique D) Restricted E) Generic
C) Unique
Which of the following is not a quality dimension relating to services? A) empathy B) assurance C) durability D) tangibles E) responsiveness
C) durability
When analyzing the results of a survey, open-ended questions are analyzed with Pareto analysis using ________ of the various categories of responses. A) means B) numerical responses C) bar charts D) simple correlations E) histograms
C) bar charts
The sharing of information between companies so that both can improve is called ________. A) reengineering B) baselining C) benchmarking D) interfacing E) data mining
C) benchmarking
Learning Outcome: Discuss the total cost of quality and compare the common methods of managing quality 5) R&D-generated ideas can be differentiated from marketing-generated ideas in that the latter ________. A) tend to be risky B) are less aligned with customer needs C) build on existing designs D) tend to be groundbreaking E) tend to be technologically innovative
C) build on existing designs
During statistical process control, if a process is ________ it will consistently produce products that meet specification. A) redundant B) unstable C) capable D) stable E) concurrent
C) capable
The first component of a complaint-resolution process is ________. A) contrition B) correction C) compensation D) communication E) correlation
C) compensation
Which of the following determinants of service quality means possession of the required skills and knowledge to perform the service? A) reliability B) responsiveness C) competence D) access E) credibility
C) competence
The ________ process involves the transformation of a negative situation into one in which the complainant is restored to the state existing prior to the occurrence of a problem. A) complaint-reaction B) complaint-restoration C) complaint-resolution D) complaint-response E) complaint-reversal
C) complaint-resolution
Which of the following is not one of Parasuraman, Zeithamel, and Berry's dimensions of service quality? A) tangibles B) service reliability C) contiguity D) responsiveness E) assurance
C) contiguity
What is the formula used to calculate scrap efficiency? A) scrap/cost of goods sold B) (cost of goods sold — scrap)/scrap C) cost of goods sold/scrap D) (scrap — cost of goods sold) /scrap E) cost of goods sold × scrap
C) cost of goods sold/scrap
In many restaurants, it is common for customers to fill their own drinks. This activity is an example of ________. A) customer compliance B) customer interaction C) customer coproduction D) customer proactivity E) customer conformity
C) customer coproduction
What is the first step in Xerox's 10-step process to benchmarking? A) determine the current performance gap B) identify whom to benchmark C) decide what to benchmark D) develop action plans E) project future performance levels
C) decide what to benchmark
According to Juran, the language of management is ________. A) labor B) quality C) money D) performance E) improvement
C) money
What are the three broad categories of the PAF paradigm? A) performance, appraisal, and functional costs B) process, assessment, and failure costs C) prevention, appraisal, and failure costs D) performance, assessment, and failure costs E) process, appraisal, and functional costs
C) prevention, appraisal, and failure costs
The goal of ________ benchmarking is to identify and to observe the best practices from one or more benchmark firms. A) product B) strategic C) process D) financial E) functional
C) process
The ________ stage of the product development process requires definition of the product architecture, the design, production, testing of subassemblies, and testing of the system for production. A) manufacturing system design B) final product definition C) product design and evaluation D) technology development for process selection E) technology selection for product development
C) product design and evaluation
What are the three spheres of quality? A) quality costs, quality benefits, and quality control B) quality planning, quality execution, and quality control C) quality control, quality assurance, and quality management D) quality benefits, quality risks, and quality management E) quality costs, quality risks, and quality assurance
C) quality control, quality assurance, and quality management
If a leader grants raises or promotions to subordinates in return for some desirable action, the leader has ________. A) coercive power B) legitimate power C) reward power D) power of expertise E) referent power
C) reward power
If you select a physician based solely on reputation, you are basing your decision on which of the following dimensions of service quality? A) responsiveness B) empathy C) service reliability D) assurance E) tangibles
C) service reliability
The phenomenon of customers providing themselves, their belongings, and information as process inputs is known as ________. A) the reinvention process B) services blueprinting C) the Unreliable Supplier Dilemma D) the capricious labor theory E) service transaction analysis
C) the Unreliable Supplier Dilemma
The marketing system involves the interactions between ________. A) the producing organization, industry trade groups, and the final consumer B) the raw material supplier, the producing organization, and the intermediary C) the producing organization, the intermediary, and the final consumer D) the raw material supplier, the producing organization, and the final consumer E) the producing organization, the intermediary, and the regulatory agency
C) the producing organization, the intermediary, and the final consumer
What is the primary contribution of Philip Crosby? A) the concept of benchmarking B) his assertion that the entire organization should be involved in improving quality C) the zero-defects approach to quality improvement D) his emphasis on total involvement of the operating employees in improving quality E) the quality loss function and the concept of robust design
C) the zero-defects approach to quality improvement
A coherent group of general propositions used as principles of explanation for a class of phenomena is referred to as a(n) ________. A) postulate B) axiom C) theory D) corollary E) hypothesis
C) theory
Which of the following is a core process activity in supply chain management? A) shipping and logistics B) acceptance sampling C) value stream mapping D) supplier qualification E) customer support
C) value stream mapping
SHORT ANSWER: Explain the use of CAD systems in geometric design and engineering analysis.
CAD systems are used in geometric design and engineering analysis. Geometric modeling is used to develop a computer-compatible mathematical description of a part. The image developed is typically a wire-frame drawing of a component. This part may appear in two dimensions, as a two-dimensional drawing of a three-dimensional object, or in full three-dimensional view with complex geometry. Engineering analysis may involve many different engineering tests such as heat-transfer calculations, stress calculations, or differential equations to determine the dynamic behavior of the system being designed. Analysis-of-mass-properties features in CAD systems automatically identify properties of a designed object such as weight, area, volume, center of gravity, and moment of inertia. CAD systems allow for the automatic calculation of these properties.
Get Started
CHAPTER ONE
SHORT ANSWER: Differentiate between component reliability and system reliability.
Component reliability is defined as the propensity for a part to fail over a given time. System reliability refers to the probability that a system of components will perform the intended function over a specified product life. It is important to recognize the difference between component reliability and system reliability. The levels of measurement are different for system and component reliability. When we talk of component reliability, we refer to a finite aspect of the overall product. System reliability is computed from the aggregation of multiple components.
SHORT ANSWER: How is a scrap efficiency ratio calculated?
Consider the computation of scrap in which a company computes the ratio of cost of goods sold to scrap. The formula for this computation is: Scrap Efficiency = Cost of Goods Sold/ Scrap This formula normalizes the cost of scrap based on the volume of business that a firm does. The resulting ratio is the proportion of the material inputs to production that is wasted as scrap. The higher the ratio, the more efficient is the use of these materials.
SHORT ANSWER: Differentiate between construct validity and content validity.
Construct validity refers to the use of certain terms and whether terms really measure what it is we want to measure. For example, self-reported measures or percentage growth in sales might not be a valid measure of success in customer satisfaction. Sales increases may instead reflect favorable market conditions. Content validity, in contrast, refers to whether the item really measures what we want to measure. Usually, this includes asking five or six "experts" to review the instrument and determine whether the instrument is valid.
SHORT ANSWER: What are content variables? Provide examples of the content variables that are considered in the strategic planning process?
Content variables outline key considerations when developing a strategic plan. These considerations are either explicitly or implicitly addressed in the strategic planning processes. Examples of key content variables in the context of quality planning are time, leadership, quality costs, generic strategies, order winners, and quality as a core competency.
SHORT ANSWER: Define the term customer coproduction.
Customer coproduction refers to the participation of the customer in the delivery of a service product. For example, in many restaurants it is common for the customers to fill their own drinks.
SHORT ANSWER: Explain quality as a core competency.
Core competence consists of communication, involvement, and a deep commitment to working across organizational boundaries. Core competencies do not diminish with use. Unlike physical assets, which do deteriorate over time, competencies are enhanced as they are applied and shared. For firms operating in rapidly evolving markets or industries, the ability to change can be more important than the actual changing technology of the moment. Hence organizations producing outstanding products or services with a good understanding of processes are better positioned to operate in the changing market because they can introduce new products rapidly with fewer quality-related holdups. Therefore, core competency is built on the foundation of a long-term commitment to quality and continual process improvement.
SHORT ANSWER: Discuss the contributions of Philip Crosby to quality theory.
Crosby specified a quality improvement program consisting of 14 steps. These steps underlie the Crosby zero-defects approach to quality improvement. His approach also emphasized the behavioral and motivational aspects of quality improvement rather than statistical approaches. In his 14 steps, Crosby prescribed actions for management and workers within the context of his program.
SHORT ANSWER: Explain the importance of using customer-related results as benchmarking data.
Customer-related results include customer satisfaction, customer dissatisfaction, and comparisons of customer satisfaction relative to competitors. These measures may be in the form of retention, gains, losses, customer-perceived value, competitive awards, competitive customer ratings, and independent organization evaluations. Customer satisfaction measures are important for gauging the effectiveness of quality improvement because they are good indicators of financial performance.
A particular customer requirement has a strong association with a technical requirement, an importance of 9, a target value of 3, and a sales point value of 1. The absolute weight of this customer requirement is ________. A) 1 B) 3 C) 9 D) 27 E) 243
D) 27
________ means that leaders provide funding, slack time, and resources for quality improvement efforts to be successful. A) Cost evaluation B) Task management C) Time management D) Commitment to quality E) Task structuring
D) Commitment to quality
________ engineering has resulted in the simultaneous performance of product and process design activities. A) Stepwise B) Progressive C) Incremental D) Concurrent E) Discrete
D) Concurrent
________ theory presupposes that there is no theory or method for operating a business that can be applied in all instances. A) Value-added B) Collaborative C) Cost-benefit D) Contingency E) Stochastic
D) Contingency
________ means standardizing parts, modularizing, and using as few parts as possible in a design. A) Designing for engineering B) Designing for reliability C) Designing for manufacture D) Designing for simplicity E) Designing for control
D) Designing for simplicity
________ service packages are of the one-size-fits-all variety. A) Unique B) Selective C) Restricted D) Generic E) Constricted
D) Generic
________ failure costs are those associated with online failure. A) Indirect B) Generic C) External D) Internal E) Direct
D) Internal
Which of the following best defines employee empowerment? A) It involves moving decision making to the highest level in the organization. B) It involves moving decision making to mid-management levels in the organization. C) It involves moving decision making upwards in the chain of command. D) It involves moving decision making to the lowest level in the organization. E) It involves moving decision making outside the borders of the organization.
D) It involves moving decision making to the lowest level in the organization.
________ refers to the differences in products that are produced and marketed by a single firm at any given time. A) Change B) Criticality C) Nonuniformity D) Variety E) Differentiation
D) Variety
________ dictates that decisions are made based on the sound collection and analysis of data. A) Strategic benchmarking B) Baselining C) Business process reengineering D) Management by fact E) Reverse engineering
D) Management by fact
________ are important for monitoring and tracking the effectiveness of a company's cycle times, waste-reduction measures, and value-added measures. A) Customer-related measures B) Productivity ratios C) Quality measures D) Operating results E) Structural measures
D) Operating results
________ data are ranked so that one measure is higher than the next. A) Active B) Discrete C) Continuous D) Ordinal E) Passive
D) Ordinal
The SERVQUAL instrument was developed by ________. A) Juran, Deming, and Shewhart B) Ishikawa and Taguchi C) Hammer and Champy D) Parasuraman, Zeithamel, and Berry E) Feigenbaum, Crosby, and Peters
D) Parasuraman, Zeithamel, and Berry
________ allows initiator firms to assess their competitive position by comparing products and services with those of target firms. A) Functional B) Strategic C) Product D) Performance E) Process
D) Performance
In the product development process, the acronym PDS stands for ________. A) Product Development System B) Product Distribution System C) Product Design and Selection D) Product Design Specification E) Product Definition and Specification
D) Product Design Specification
________ refers to the propensity for a product to perform consistently over its useful design life. A) Conformance B) Durability C) Perceived quality D) Reliability E) Serviceability
D) Reliability
________ include objectives, policies, and procedures followed by a firm. A) Productivity ratios B) Quality measures C) Market share data D) Structural measures E) Operating results
D) Structural measures
________ goals are those goals that pertain to achieving a higher end that benefits not just the individual but the group. A) Substantive B) Deterministic C) Congruent D) Superordinate E) Hierarchical
D) Superordinate
________ include all of those activities involving interaction with suppliers. A) Inbound logistics B) Core process activities C) Outbound logistics D) Upstream activities E) Downstream activities
D) Upstream activities
Which of the following determinants of service quality involves approachability and ease of contact? A) reliability B) responsiveness C) competence D) access E) courtesy
D) access
What are the three phases of customer-relationship management? A) satisfaction, feedback, and retention B) satisfaction, acquisition, and transition C) response, feedback, and enhancement D) acquisition, retention, and enhancement E) response, transition, and acquisition
D) acquisition, retention, and enhancement
The Lundvall-Juran quality cost model states that ________. A) as quality increases, customer satisfaction increases B) as expenditures in inspection and control activities increase, quality conformance decreases C) as design and manufacturing costs increase, quality increases D) as expenditures in prevention and appraisal activities increase, quality conformance increases E) as inspection costs increase, customer satisfaction decreases
D) as expenditures in prevention and appraisal activities increase, quality conformance increases
If the leader has power to punish the follower for not following rules or guidelines, the leader has ________. A) power of expertise B) referent power C) legitimate power D) coercive power E) reward power
D) coercive power
The process associated with resolving complaints is called the ________ process. A) complaint-reversal B) complaint-restoration C) complaint-reaction D) complaint-recovery E) complaint-response
D) complaint-recovery
Which of the following is not a design aspect to customer-relationship management? A) corrective action B) guarantees C) feedback D) cost E) complaint resolution
D) cost
Which of the following determinants of service quality involves trustworthiness, believability, honesty, and having the customer's best interests at heart? A) reliability B) responsiveness C) competence D) credibility E) courtesy
D) credibility
The ________ approach involves obtaining information from customers about the process they use to receive goods and services. A) focus group B) vendor managed inventory C) knowledge management D) critical-incident E) customer-relationship management
D) critical-incident
The life-cycle approach to product design has led to practices known as ________. A) design for aesthetics, design for performance, and design for quality B) design for ease of manufacture, design for optimal pricing, and design for quality C) design for cost containment, design for quality, and design for conformance D) design for reuse, design for disassembly, and design for remanufacture E) design for reliability, design for dependability, and design for conformance
D) design for reuse, design for disassembly, and design for remanufacture
Which of the following components is not included in the generic strategic planning process? A) firm mission, vision, and goals B) business-level strategy C) external analysis D) empowerment E) internal analysis
D) empowerment
Statistical process control is associated with which of the following perspectives of quality? A) operations B) marketing C) human resources D) engineering E) strategic management
D) engineering
The operations management view of quality is rooted in the ________ approach. A) strategic management B) marketing C) finance D) engineering E) human resource
D) engineering
Gathering data through customer comment cards is an example of a(n) ________ data gathering. A) active B) open C) rational D) passive E) closed
D) passive
All the activities associated with developing a product from concept development to final design and implementation is known as ________. A) process design engineering B) life testing C) simultaneous engineering D) product design engineering E) concurrent design engineering
D) product design engineering
During the ________ stage of the project development process, external and internal sources brainstorm new concepts. A) product marketing and supply chain preparation B) technology development for process selection C) customer future needs projection D) product idea generation E) technology selection for product development
D) product idea generation
Which of the following steps in Xerox's 10-step process to benchmarking involves predicting whether the performance gap for the benchmarked processes will narrow or widen in the coming years? A) develop action plans B) determine the current performance gap C) plan and conduct the investigation D) project future performance levels E) implement specific actions and monitor progress
D) project future performance levels
Customer ________ is measured as the percentage of customers who return for more service. A) approval B) feedback C) satisfaction D) retention E) response
D) retention
The driving force of the Century of Productivity was the movement known as ________. A) total quality management B) statistical process control C) human resource management D) scientific management E) behavioral modification
D) scientific management
A ________ is a flowchart that isolates potential fail points in a process. A) services statement B) services draft C) services plan D) services blueprint E) services data table
D) services blueprint
During statistical process control, if a process is ________ it will only exhibit random or common cause variation instead of nonrandom special cause variation. A) redundant B) unstable C) capable D) stable E) concurrent
D) stable
In ________, suppliers integrate information systems and quality systems that allow close integration at all levels. A) segmentation B) gap analysis C) annuity relationships D) strategic alliances E) supplier rationalization
D) strategic alliances
Which of the following is considered a prevention cost? A) cost of troubleshooting B) laboratory acceptance testing C) warranty D) supplier quality assurance E) on-site performance tests
D) supplier quality assurance
In the context of service quality, ________ include the physical appearance of the service facility, the equipment, the personnel, and the communication materials. A) intangibles B) logistics C) features D) tangibles E) aesthetics
D) tangibles
The ________ of a theoretical model is responsible for placing contextual bounds on the theory. A) why B) what C) how D) who-where-when E) which
D) who-where-when
SHORT ANSWER: Review David Garvin's contribution to our understanding of the role of quality in business organizations.
David Garvin has helped articulate both the definitions and dimensions of quality. First, Garvin found that most definitions of quality were either transcendent, product-based, user-based, manufacturing-based, or value-based. Using these five definitions of quality, Garvin developed a list of eight quality dimensions. These dimensions are performance, features, reliability, conformance, durability, serviceability, aesthetics, and perceived quality. By articulating these definitions and dimensions of quality, Garvin has helped managers understand the multifaceted nature of quality and the importance of quality in business organizations.
SHORT ANSWER: State Deming's 14 points for management.
Deming's 14 points for management represent many of the key principles that provide the basis for quality management in many organizations. Create constancy of purpose. Adopt a new philosophy. Cease mass inspection. End awarding business on the basis of price tag. Constantly improve the system. Institute training on the job. Improve leadership. Drive out fear. Break down barriers between departments. Eliminate slogans. Eliminate work standards. Remove barriers to pride. Institute education and self-improvement. Put everybody to work.
________ proposed "The 19 steps of Total Quality Control." A) Philip Crosby B) W. Edwards Deming C) Joseph M. Juran D) Genichi Taguchi E) Armand Feigenbaum
E) Armand Feigenbaum
________ improvement implies that the process has been studied and that some major improvement has resulted in large, nonrandom improvement to the process. A) Ongoing B) Progressive C) Successive D) Continuous E) Breakthrough
E) Breakthrough
________ is the magnitude of the differences in a product when measured at two different times. A) Criticality B) Variety C) Differentiation D) Nonuniformity E) Change
E) Change
________ validity refers to the use of certain terms and whether terms really measure what it is we want to measure. A) Criterion B) Conformance C) Content D) Control E) Construct
E) Construct
________ validity refers to whether the item really measures what we want to measure. A) Construct B) Control C) Criterion D) Conformance E) Content
E) Content
Which of the following is not one of Garvin's "definitions" of quality? A) transcendent B) value-based C) manufacturing-based D) user-based E) cost-based
E) Cost Based
The acronym CRM stands for ________. A) Customer Reaction Management B) Customer Resource Management C) Customer Response Management D) Customer Risk Management E) Customer Relationship Management
E) Customer Relationship Management
________ results from agreement between marketing and operations as to which customers add the greatest advantage and profits over time. A) Customer segmentation B) Customer-relationship management C) Reactive customer-driven quality D) Actively solicited customer-feedback E) Customer rationalization
E) Customer rationalization
________ means to design products so that they are cost-effective and simple to build. A) Design for maintenance B) Design for control C) Design for reliability D) Design for engineering E) Design for manufacture
E) Design for manufacture
________ refers to a reference point for determining the quality level of a product or service. A) Quality of conformance B) Hothouse quality C) Quality loss function D) Specific quality E) Ideal quality
E) Ideal quality
________ service attributes cannot be inventoried or carried in stock over long periods of time. A) Continuous B) Objective C) Tangible D) Discrete E) Intangible
E) Intangible
________ customers are employees receiving goods or services from within the same firm. A) Primary B) Capital C) External D) Secondary E) Internal
E) Internal
________ involves collecting detailed information about a particular job. A) Job forecast B) Job specification C) Job selection D) Job sharing E) Job analysis
E) Job analysis
________ is credited with democratizing statistics. A) Armand Feigenbaum B) Joseph M. Juran C) Genichi Taguchi D) Philip Crosby E) Kaoru Ishikawa
E) Kaoru Ishikawa
________ is derived from the positions that different people hold within an organization. A) Power of expertise B) Coercive power C) Referent power D) Reward power E) Legitimate power
E) Legitimate power
________ is the ease of repair for a product. A) Durability B) Reliability C) Conformance D) Contiguity E) Serviceability
E) Serviceability
________ refers to the planning processes used by an organization to achieve a set of long-term goals. A) SPC B) Concurrent engineering C) Product design engineering D) Value stream mapping E) Strategy
E) Strategy
According to Garvin's ________ definition of quality, quality is something that is intuitively understood but nearly impossible to communicate, such as beauty or love. A) value-based B) manufacturing-based C) user-based D) product-based E) transcendent
E) Transcendent
________ involves analyzing processes from a systems perspective such that upstream and downstream effects of core process changes can be evaluated. A) Six Sigma B) Acceptance sampling C) Concurrent engineering D) International sourcing E) Value stream mapping
E) Value stream mapping
Which dimension of service quality refers to the knowledge and courtesy of employees and their ability to inspire trust and confidence? A) empathy B) service reliability C) tangibles D) responsiveness E) assurance
E) assurance
Which of the following points for management devised by Deming encourages parallel processing in focused teams? A) constantly improve the system B) create constancy of purpose C) institute education and self-improvement D) adopt a new philosophy E) break down barriers between departments
E) break down barriers between departments
Which of the following is a communication skill exhibited by a leader? A) time management B) assessing the climate C) ethics D) evaluation skills E) conflict management
E) conflict management
Which of the following is the most traditional dimension of quality? A) durability B) reliability C) features D) performance E) conformance
E) conformance
In the ________ process of business process benchmarking, the inputs are aligned together to form the product or service. A) reconstruction B) control C) reengineering D) transformation E) conversion
E) conversion
Which of the following determinants of service quality involves politeness, respect, consideration, and friendliness of contact personnel? A) reliability B) responsiveness C) competence D) credibility E) courtesy
E) courtesy
Which of the following points for management devised by Deming involves the management committing resources to ensure that the quality job is completed? A) constantly improve the system B) eliminate work standards C) improve leadership D) adopt a new philosophy E) create constancy of purpose
E) create constancy of purpose
In his value chain, Deming linked quality improvements to ________. A) improved product features and improved durability B) improved organizational performance and reduction in costs C) increase in efficiency and improved product features D) improvements in reliability and reduction in costs E) reduction in defects and improved organizational performance
E) reduction in defects and improved organizational performance
The process of dismantling competitors' products to understand the strengths and weaknesses of their designs is referred to as ________. A) benchmarking B) reengineering C) baselining D) inverse production E) reverse engineering
E) reverse engineering
Which of the following is a knowledge skill exhibited by a leader? A) assertiveness B) image building C) identifying opportunities D) evaluation skills E) risk taking
E) risk taking
Gap 2 shows the difference between ________. A) service delivery and external communications to customers B) management perceptions of customer expectations and expected service C) service delivery and service quality specifications D) expected service and perceived service E) service quality specifications and management perceptions of customer expectation
E) service quality specifications and management perceptions of customer expectation
What is the primary contribution of Genichi Taguchi? A) the concept of benchmarking B) his assertion that the entire organization should be involved in improving quality C) the zero-defects approach to quality improvement D) his emphasis on total involvement of the operating employees in improving quality E) the quality loss function and the concept of robust design
E) the quality loss function and the concept of robust design
SHORT ANSWER: What is employee empowerment?
Employee empowerment is of particular interest to HR managers. Empowering employees involves moving decision making to the lowest level possible in the organization. For example, empowerment can involve something fairly minor, such as allowing employees to replace broken or worn-out tools without management approval. In more spectacular instances, empowerment has resulted in the elimination of management as employees do their own scheduling, design, and performance of work.
SHORT ANSWER: Define interference checking with an example.
Examining a design to see if different components in a product occupy the same space is called interference checking. Interference checking is of major importance in design of airplanes. Hundreds of pipes and thousands of wires occupy the walls of the aircraft. Interference checking in design review ensures that designs are feasible. This is especially important for airplane makers because so many engineers are participating in the design.
SHORT ANSWER: Differentiate between internal services and external services and explain the role of outsourcing in the provision of internal services.
External services are those whose customers pay the bills. Internal services are in-house services such as data processing, printing, and mail. Typically, these services are separate from the external customer. However, customer service to internal customers is very important to internal service because their services often can be outsourced. There is a trend in companies to outsource internal services. In a sense, this presents a competitive pressure on internal services. Although internal and external services may be very different, they do have many similarities. In both cases, competitive pressures can result in the possible loss of customers.
SHORT ANSWER: What are the benefits of using failure modes and effects analysis (FMEA)?
Failure modes and effects analysis (FMEA) systematically considers each component of a system, identifying, analyzing, and documenting the possible failure modes within a system and the effects of each failure on the system. Some benefits that can be derived through the use of FMEA include: • Improvement of the safety, quality, and the reliability of products • Improvement of a company's image and its competitiveness • Increased satisfaction from a user standpoint • Reduction in product development cost • Record of actions taken to reduce a product risk
SHORT ANSWER: State the nine-step process of failure modes and effects analysis (FMEA).
Failure modes and effects analysis (FMEA) uses a nine-step process: • Assign each component an identifier. • List functions for each part. • List one or two failure modes for each function. • Describe effects of each failure mode. • Determine hazard likelihood and categorize. • Estimate likelihood of failure. • Estimate failure detection. • Identify highest risks. • Eliminate or reduce highest risks.
SHORT ANSWER: Describe the failure modes, effects, and criticality analysis (FMECA).
Failure modes, effects, and criticality analysis (FMECA) is an extensive but simple method for identifying ways in which an engineered system could fail. As in FMEA, failures, effects, and causes are identified. FMECA rates failure modes by ranking each possible mode according to both the probabilities of its occurrence and the severity of its effects. The primary goal of FMECA is to develop priorities for corrective action based on estimated risk. FMECA is used to analyze a probable cause of a product failure, to determine how the problem affects a customer, to identify the probable manufacturing or assembly processes responsible, to identify which process control variable to focus on for prevention detection, and to quantify the effects on the customer.
SHORT ANSWER: What are the steps in performing quality function deployment?
Following are the steps in performing quality function deployment: • Develop a list of customer requirements. • Develop a listing of technical design elements along the roof of the house. • Demonstrate the relationships between the customer requirements and technical design elements. • Identify the correlations between design elements in the roof of the house. • Perform a competitive assessment of the customer requirements. • Prioritize customer requirements. • Prioritize technical requirements. • Final evaluation.
SHORT ANSWER: Define theory. Provide an example of the use of theory in a business organization.
Generally, theory is a "coherent group of general propositions used as principles of explanation for a class of phenomena." For example, it might have been observed that many companies that have implemented quality improvement have experienced improved worker morale. Therefore, a theoretical model of quality and worker morale might be developed.
SHORT ANSWER: State the factors that have contributed to the improvement in the quality in health care.
Health care is an area of services that is receiving much attention. Several factors have contributed to this phenomenon: • Health care is facing the same "cost squeeze" that government is facing. • A move toward health maintenance organizations (HMOs) is causing hospitals to streamline operations. • There is increasing diversity in health care. In some cases, insurers such as Blue Cross are encouraging the use of quality management approaches. Health care workers are becoming increasingly knowledgeable about quality management practices and concepts.
SHORT ANSWER: Explain the Hoshin planning process.
Hoshin is Japanese for a compass, a course, a policy, or a plan. This is to indicate a vision or purpose to an existence. Kanri refers to management control. In English, this is generally referred to as policy deployment. Hoshin has been used in Japan since the 1960s as a means of implementing policy. Implicit in the Hoshin Kanri is the use of the basic seven tools of quality, the new tools of quality, and quality function deployment. In the Hoshin process, the company develops a three- to five-year plan, and senior executives develop the current year's Hoshin objectives. Then the process of catchball occurs. Catchball is the term used to describe the interactive nature of the Hoshin planning process. Catchball involves reporting from teams and feedback from management. The development of the Hoshin plan results in the cascading of action plans that are designed to achieve corporate goals.
SHORT ANSWER: Explain concurrent engineering and state its benefits.
If the design process steps are performed sequentially, the design process will be very time-consuming. Therefore, the steps are performed simultaneously as often as possible. This approach is called concurrent engineering and has been very helpful in speeding up the design life cycle. The benefits of concurrent engineering primarily include communication among group members and speed. By working on products and processes simultaneously, the group makes fewer mistakes, and the time to get the concept to market is reduced drastically. The team concept joins people from various disciplines, which enhance communication and the cross-fertilization of ideas. Another benefit of concurrent engineering is increased interaction with the customer. Often customers are included in concurrent engineering teams to give immediate feedback on product designs.
SHORT ANSWER: Explain the over-the-wall syndrome.
In the old world of designing products, there existed a hierarchy of engineers. At the top of this hierarchy was the product design engineer. Lower down the hierarchy were the process design engineers. Often these different engineers worked in totally different departments. The fact that they were in different departments often impeded communication. This organizational problem has been referred to as the over-the-wall syndrome.
SHORT ANSWER: Explain the ten determinants of service quality contributed by Parasuraman, Zeithamel, and Berry.
In addition to the gaps model, Parasuraman, Zeithamel, and Berry contributed a number of important concepts to managing service quality. These include 10 determinants of service quality: • Reliability involves consistency of performance and dependability. • Responsiveness concerns the willingness or readiness of employees to provide service. • Competence means possession of the required skills and knowledge to perform the service. • Access involves approachability and ease of contact. • Courtesy involves politeness, respect, consideration, and friendliness of contact personnel. • Communication means keeping customers informed in language they can understand and listening to them. • Credibility involves trustworthiness, believability, and honesty. • Security is the freedom from danger, risk, or doubt. • Understanding/knowing the customer involves making the effort to understand the customer's needs. • Tangibles include the physical evidence of the service.
SHORT ANSWER: Describe the concept of functional benchmarking.
In functional benchmarking, a company focuses its benchmarking efforts on a single function to improve the operation of that function. An example of functional benchmarking occurs in purchasing. Often purchasing managers use their networks to share information about the purchasing function in many different organizations.
SHORT ANSWER: Differentiate between internal and external customers.
Internal customers are employees receiving goods or services from within the same firm. For example, management information systems (MIS) technicians and programmers view the users within their company as internal customers. In contrast, external customers or end users are the bill-paying receivers of a company's work. A person that enters a restaurant and purchases a meal is an external customer.
SHORT ANSWER: Describe Pareto analysis.
Joseph Juran identified an economic concept that he applied to quality problems. This economic concept is called Pareto's law or the 80/20 rule, and is named after the Italian economist Vilfredo Pareto. Pareto found that 80 percent of the wealth in Milan was held by 20 percent of the population. Using Pareto's law, we can see that the majority of quality problems are the result of relatively few causes.
SHORT ANSWER: Discuss the contributions of Kaoru Ishikawa to quality thinking.
Kaoru Ishikawa provided tools that worked well within the Deming and Juran frameworks. Perhaps Ishikawa's greatest achievement was the development and dissemination of the basic seven tools of quality (B7). As the developer of these tools, Ishikawa is credited with democratizing statistics. The major theoretical contribution of Ishikawa is his emphasis on total involvement of the operating employees in improving quality. Ishikawa is credited for coining the term "company-wide quality control" in Japan. His ideas were synthesized into 11 points that made up his quality philosophy.
SHORT ANSWER: Discuss the importance of leadership as a key strategic variable for quality management.
Leadership is a key strategic variable for quality management. A leader organizes, plans, controls, communicates, teaches, advises, and delegates. Leading involves a power-sharing relationship between two or more individuals where the power is distributed unevenly. Leadership is the process by which a leader influences a group to move toward the attainment of superordinate goals. Superordinate goals are those goals that pertain to achieving a higher end that benefits not just the individual but the group.
SHORT ANSWER: Explain the process of managing the benchmarking effort.
Like other quality management efforts, benchmarking is a managed process. Therefore, management must have an understanding of the benchmarking process, the participants involved, and the objectives of the exercise. Managing the benchmarking process involves establishing, supporting, and sustaining the benchmarking program. To begin the management process, a strategy statement outlining the goals and strategies to be used is developed. With the strategy statement in place, management sets expectations for performance relating to the benchmarking project. At a minimum, the expectations for benchmarking are that this is an ongoing process that serves as a basis for improvement (not a one time event) and that specific deliverables are to be identified by management that must be fulfilled.
SHORT ANSWER: Describe the concept of performance benchmarking.
Performance benchmarking allows initiator firms to assess their competitive position by comparing products and services with those of target firms. Performance issues may include cost structures, various types of productivity performance, speed of concept to market, quality measures, and other performance evaluations.
SHORT ANSWER: Differentiate between soft data and hard data.
Phone contacts, focus groups, and survey results are referred to as soft data. As opposed to soft data, hard data are measurement data such as height, weight, volume, or speed that can be measured on a continuous scale. Soft data are not continuous and are, at best, ordinal. Topic: Actively Solicited Customer-Feedback Approaches Learning Outcome: Discuss the total cost of quality and compare the common methods of managing quality
SHORT ANSWER: Explain the five powers exhibited by a leader.
Power of expertise: Sometimes a leader has special knowledge (or is perceived to have special knowledge). This type of power tends to have very narrow parameters in that the followers will follow only within the confines of the leader's expertise. Reward power: If a leader has rewards that he or she can bestow on subordinates in return for some desirable action, the leader has reward power. This is often the case in the granting of raises, promotions, rewards, recognition, or a variety of other incentives. Coercive power: If the leader has power to punish the follower for not following rules or guidelines, the leader has coercive power. Such power often results in unintended responses, such as the follower giving up or circumventing the leader's rule surreptitiously. Referent power: If a leader is charismatic or charming and is followed because he or she is liked, then the leader has referent power. A case of referent power is the mentor who is admired by his or her protégés who want to be like the mentor. Legitimate power: As a result of the positions that different people hold within an organization, the manager has the obligation to request things of subordinates, and the subordinates have the duty to comply with the request. This is the exercise of legitimate power.
SHORT ANSWER: How are the product liability issues in services different from those in manufacturing?
Product liability issues in services are very different from manufacturing. Whereas in manufacturing liability issues center around safety concerns, in services liability issues often relate to malpractice, which refers to the professionalism of the service provider and whether reasonable measures were taken to ensure the customer's well-being.
SHORT ANSWER: What is quality function deployment (QFD)?
Quality function deployment (QFD) describes a method for translating customer requirements into functional design. Sometimes this process of translation is referred to as the voice of the customer. The quality function deployment approach was developed by Dr. S. Mizuno, a former professor of the Tokyo Institute of Technology.
SHORT ANSWER: What are the factors involved in quality improvement?
Quality improvement is a planned managerial activity. It involves identifying potential improvements, prioritizing potential areas for improvement, and planning the implementation of projects and improvements.
SHORT ANSWER: What is the relationship between quality and ethics?
Quality is not only good business, it is also good ethics. It is unethical to ship defective products knowingly to a customer. Reliable products and low defect rates reflect an ethical approach of management's care for its customers. Companies focusing on their customers often develop a set of ethics that includes valuing employees. This is reflected in education, training, health, wellness, and compensation programs that show empathy for the employees. Increasingly, environmental friendliness is seen as an ethical concern.
SHORT ANSWER: Give examples of quality measures and structural measures of benchmarking data.
Quality measures include conformance-based quality information such as reject rates, capability information, performance information, or other measures. These quality measures also can include scrap and rework measures, percentage of defectives, field repairs, costs of quality, and many other metrics. The quality measures also may include data concerning the performance of processes and time-related statistics. Structural measures include objectives, policies, and procedures followed by a firm. They may include safety, production, accounting, financial, engineering, and other types of structural measures that are used in determining competitiveness.
SHORT ANSWER: Define reengineering. State the two factors that are critical to achieving success through reengineering.
Reengineering is defined as a fundamental rethinking and redesign of business processes. Such change is often accompanied by the automation of business processes. Two factors are critical to achieving success through reengineering: Breadth refers to the impact of the reengineering process to the entire organization. Depth refers to organizational elements such as responsibilities, measurements, information technology, and skills.
SHORT ANSWER: Explain service transaction analysis (STA).
STA is a service improvement technique that allows managers to analyze their service processes at a very detailed level. Crosby views service encounters as a series of transactions or moments of truth. STA is a method for identifying these transactions and evaluating them from the customer's perspective to determine if there is a gap between service design and what the customer perceives as the service.
SHORT ANSWER: Discuss the contributions of Stephen R. Covey to quality thinking.
Stephen R. Covey's approach to management is value-based in that he proposes that people in management live a life that balances professional with personal and spiritual growth. He coined seven habits based on his value-based approach to life. Be proactive Begin with the end in mind Put first things first Think win-win Seek first to understand and then to be understood Synergize Sharpen the saw Covey also published a book with an eighth habit: Find your voice, and inspire others to find theirs
SHORT ANSWER: Discuss the origins and development of the supply chain perspective.
Supply chain management grew out of the concept of the value chain. The value chain includes inbound logistics, core processes, and outbound logistics. Supply chain management has moved to the forefront in recent years due to the opportunities for cost savings along with quality and service improvements.
SHORT ANSWER: Describe the conversion process and the control process in business process benchmarking.
The 5w2h questions should be viewed in the context of a process. In a broad sense, inputs include the equipment, people, machines, materials, and design that combine to form a product or service. The inputs are combined in what is known as the conversion process. In the conversion process, we align the inputs together to form the product or service. The conversion process results in outputs that are eventually sold to customers. The first feedback loop results from gathering data from the process. This is known as the control process. The control process involves gathering, analyzing, and using the data to adjust the process. This is often the result of using process control charts.
SHORT ANSWER: State the nine phases of a product development process.
The design process includes nine phases that are interrelated: • Product idea generation • Customer future needs projection • Technology selection for product development • Technology development for process selection • Final product definition • Product marketing and supply chain preparation • Product design and evaluation • Manufacturing system design • Product manufacture, delivery, and use
SHORT ANSWER: Explain the three categories of quality costs.
The PAF paradigm 9 translates quality costs into three broad categories, which are then subdivided into other categories. The three categories are prevention, appraisal, and failure costs (hence the acronym PAF). Prevention costs are those costs associated with preventing defects and imperfections from occurring. Prevention costs are the most subjective of the three categories of costs. Prevention costs include costs such as training, quality planning, process engineering, and other costs associated with assuring quality beforehand. Appraisal costs are associated with the direct costs of measuring quality. These can include a variety of activities such as lab testing, inspection, test equipment and materials, losses because of destructive tests, and costs associated with assessments for ISO 9000:2008 or other awards. Failure costs are roughly categorized into two areas of costs: internal failure costs and external failure costs. Internal failure costs are those associated with online failure, whereas external failure costs are associated with product failure after the production process.
SHORT ANSWER: Explain the different gaps in communication that arise due to intangible services.
The SERVQUAL instrument is useful for performing gap analysis. Because services are often intangible, gaps in communication and understanding between employees and customers have a serious negative effect on the perceptions of services quality. Gap 1 shows that there can be a difference between actual customer expectations and management's idea or perception of customer expectations. Managers' expectations of service quality may not match service quality specifications. This mismatch is demonstrated in gap 2. Once services specifications have been established, the delivery of perfect services quality is still not guaranteed. Inadequate training, communication, and preparation of employees who interact with the customer, referred to as contact personnel, can lower the quality of service delivered. This mismatch is gap 3. Gap 4 shows the differences between services delivery and external communications with the customer. Gap 5 is the difference between perceived and expected services.
SHORT ANSWER: Explain the Taguchi concept of robust design.
The Taguchi concept of robust design states that products and services should be designed so that they are inherently defect-free and of high quality. Taguchi devised a three-stage process that achieves robust design through what he terms concept design, parameter design, and tolerance design.
SHORT ANSWER: Give reasons why the effects of quality on business results are mixed.
The effects of quality on business results are mixed; some firms have been wildly successful with their quality efforts, and other companies have been unsuccessful in gaining bottom-line results. There are two primary reasons for this. First, many variables affect profitability besides quality. You might produce the highest-quality, obsolete product in the world. If you produce a high-quality product or service that no one wants to buy, quality management systems likely will not save you. Second, many companies implement quality incorrectly. That you can claim you are implementing quality does not guarantee you will be successful. Quality improvement takes a long time, and many firms desire quick returns on investment for quality training programs.
SHORT ANSWER: Identify and briefly discuss the core quality management content variables.
The core variables are leadership, employee improvement, quality assurance, customer role, and philosophy. The role of the leader in being the champion and major force behind quality improvement is critical. Leaders must be conversant with quality management approaches, and then lead by example. Employees must be trained and developed, and this must be viewed as a long-term undertaking that requires firms to invest in their employees. Quality can be assured only during the design phase. Therefore, efforts must be invested in designing products, services, and processes so that they are consistently of high quality. An understanding of the customer is key to quality management efforts. Adoption of a philosophy toward quality improvement is important because it provides the company with a map to follow during their quest for improvement.
SHORT ANSWER: What are the components and activities associated with the complaint resolution process?
The first component is to compensate people for their losses. This may be as small as an easy return policy with no questions asked. The second component is contrition. The firm should apologize to the customer for the mistakes made. Third, the complaint-resolution process must be designed to make it easy for complainants to reach resolution to simple complaints.
SHORT ANSWER: Explain the forced-choice model of strategic planning.
The forced-choice model of strategic planning is one of several strategic planning models that could be adapted to demonstrate integrated quality planning. It is selected here because of its simplicity and its usefulness for firms that are beginning strategic planning. It is generic and is used simply for explanation purposes. It is particularly useful for companies that are relatively inexperienced in strategic planning.
SHORT ANSWER: Explain the four important skills that effective leaders exhibit.
The four important skills for leaders are knowledge, communication, planning, and vision. The different phases identify skill sets that are needed by managers. In Phase 1, knowledge helps the leader accept risk and moderate the stress associated with the risk by using coping mechanisms or healthy outlets. In Phase 2, the leader must be able to communicate with other leaders and subordinates. In Phase 3, the leader must be able to plan and make decisions. Finally, in Phase 4, the leader must be able to formulate a coherent vision of the future toward which to plan.
SHORT ANSWER: According to Parasuraman, Zeithamel, and Berry, what are the key attributes of services leaders?
The key attributes of a leader in services are given below: First, a leader has a service vision. Such leaders really view service quality as the force underlying profitability and business success. When selecting strategies for improvement, leaders see quality as the winning strategy. Such a vision can be translated into action and excitement for others in the company. Services leaders have high standards. In services, you will notice that some firms are better equipped and maintained than others. Outstanding services leaders have an in-the-field style of leadership. Because there is so much contact with the customer in a service system, the field is where the action is.
SHORT ANSWER: Explain the importance for the Hill model in reaching a consensus on the order-winning criterion (OWC).
The key to the Hill model is reaching consensus on the OWC. The process for doing this involves segmenting the business into smaller markets that can each be identified with an order-winning criterion. This provides an understanding of the markets the company is serving. Products are chosen for each market, and marketing provides sales forecasts for the identified markets.
SHORT ANSWER: Why are cross-functional teams becoming more common? What difficulties do they experience?
The supply chain encompasses many differing functions and processes. It includes all of the core activities from the raw materials stage to after-sale service. To execute all of these processes correctly, it is important to integrate differing functions, expertise, and dimensions of quality. This need for integration increases the requirement for flexible, cross-functional problem solving, and employees who can adapt to rapidly changing markets. Communications is a major issue for cross-functional teams. Typically, organizations do not have very effective networks of cross-functional communication. Concurrent engineering requires cross-functional teams.
SHORT ANSWER: What are the three major realities in service that affect the approaches in quality adopted by service providers?
The three major realities in services that affect the approaches to quality adopted by service providers are intangibility, simultaneous production and consumption, and customer contact. Because services' attributes can be intangible, it is sometimes difficult to obtain hard data relating to services. In manufacturing, dimensions such as height, weight, and width are available for measurement. Simultaneous production and consumption of services means that you have to do it right the first time. Customer contact leads to an increase in variability in the process. This leads to a high degree of customization in services as well as great variability in the time required to perform services. In manufacturing, repetitive tasks are easily measured, and cycle times are generally consistent.
SHORT ANSWER: Explain the three spheres of quality.
The three spheres of quality are quality control, quality assurance, and quality management. The quality control process is based on the scientific method, which includes the phases of analysis, relation, and generalization. Quality assurance refers to activities associated with guaranteeing the quality of a product or service. Often, these activities are design-related. The management processes that overarch and tie together the control and assurance activities make up quality management.
SHORT ANSWER: How are the values for absolute and relative weights established?
The value for the absolute weight is the sum of the products of the relationship between customer and technical requirements and the importance to the customer columns. The value for relative weight is the sum of the products of the relationship between customer requirements and technical requirements and the customer requirements absolute weights.
SHORT ANSWER: State any three considerations in a design.
There are many things to consider when designing products. One of the biggest considerations is design for manufacture (DFM). Design for manufacture means to design products so that they are cost-effective and simple to build. Another aspect is designing for reliability. It makes little sense to design a product that is capable and stable but not reliable. Product designs must be simple. Designing for simplicity means standardizing parts, modularizing, and using as few parts as possible in a design.
SHORT ANSWER: Differentiate between an initiator firm and a target firm. Are these static roles?
There are two parties to each benchmarking relationship: an initiator firm and a target firm. The initiator firm initiates contact and studies another firm. The target firm is the firm that is being studied (also called a benchmarking partner). These are not static roles. Often the target firm enters into a reciprocal agreement to observe the initiator firm.
SHORT ANSWER: Explain the reactive customer-driven quality (RCDQ) model.
This reactive customer-driven quality (RCDQ) model shows that a firm's quality performance is increasing while customers' expectations also are increasing. Problems occur when customer requirements increase at a faster rate than quality and service improvement. This places a firm in a reactive mode that may signal the need for major process and service redesign. The RCDQ model demonstrates conceptually and graphically the primary pitfalls and dangers of RCDQ.
SHORT ANSWER: Explain the importance of training in benchmarking.
Training is a key to success in all quality management approaches. This is especially true for benchmarking. Participants must have project management skills and be familiar with benchmarking approaches and protocols. Benchmarking carries with it legal liabilities that should be addressed during the training. Training should include managerial training, cross-functional benchmarking skills training, team training, and documentation training (flowcharting). Many of these training courses are available from many different consulting organizations. It is best to obtain training from organizations that are experienced with benchmarking. Many companies have established external training arms that can be hired by competing firms.
SHORT ANSWER: What is gap analysis?
Typically, the gap refers to the differences between desired levels of performance and actual levels of performance. This could be something like the difference between the desired conformance level versus the existing conformance level in a manufacturing environment. In services, this is the difference between the expected and the actual level of service provided. Gaps are important in that once a gap is identified, it is a candidate for corrective action and process improvement. The formal means for identifying and correcting these gaps is called gap analysis. One of the differences studied by gap analysis identifies the difference between managerial and customer perceptions of what the customer wants.
SHORT ANSWER: What is the Lundvall-Juran Quality Cost Model?
Using the law of diminishing marginal returns, quality costs can be modeled to show the trade-offs between these costs. This trade-off model, called the Lundvall—Juran model. The Lundvall—Juran model is a simple economic model. It states that as expenditures in prevention and appraisal activities increase, quality conformance should increase. For example, the more we spend on training and developing our employees, the more benefit we should get.
SHORT ANSWER: Differentiate between voluntary and involuntary services with examples.
Voluntary services are services that we actively seek out and employ of our own accord. Generally, we research a voluntary service, such as a gas station, a restaurant, or a hotel, and have certain expectations when we engage its services. The quintessential example of an involuntary service is a prison. Other involuntary services include hospitals, the IRS, the police department, the fire department, and other services that you do not choose. If you have the chance to engage this type of service at some point, you likely will have vague expectations about the experience.
SHORT ANSWER: Discuss the contributions of W. Edwards Deming to quality thinking.
W. Edwards Deming has made a profound impact on quality thinking worldwide. Throughout his career, Deming gave seminars, wrote books, taught classes, and published articles to explain his approach to quality management. Deming's mantra was "continual never-ending improvement." The essence of his thinking was that quality is a function of the management within a firm, and is not the sole responsibility of workers. Deming used statistics to support his arguments. He argued that the goals of higher levels of quality would perhaps never be completely met, but firms that continually worked toward higher levels of quality would get better. He articulated his thinking in his "14 Points for Management."
SHORT ANSWER: Why is service quality more difficult to define than product quality?
While services and production share many attributes, services have more diverse quality attributes than products. For example, a product like a personal computer is typically evaluated on its merits, and it makes little difference to the user whether the person that assembled the computer was in a bad mood. Service settings are more complex; thus quality is more difficult to define. A customer of a restaurant, for example, evaluates the quality of the restaurant not only on the merits of the food, but also on the demeanor of the employees, the speed of the service, the location of the restaurant, the pleasantness of the surroundings, and so forth.
SHORT ANSWER: What are customer-relationship management systems?
With business information systems-especially over the Internet-companies are receiving volumes of customer-related data. These data include personal, Internet, process, and customer preference information. As a result, systems have been created to mine these data to improve customer service and retention. These systems are called customer-relationship management systems (CRMS). CRMS use data to manage the three phases of customer-relationship management. These three phases are acquisition, retention, and enhancement.
SHORT ANSWER: State Xerox's formal 10-step process to benchmarking.
Xerox was an early adopter of benchmarking and has used benchmarking effectively to improve processes. This approach includes a formal 10-step process to benchmarking: • Decide what to benchmark. • Identify whom to benchmark. • Plan and conduct the investigation. • Determine the current performance gap. • Project future performance levels. • Communicate benchmarking findings and gain acceptance. • Revise performance goals. • Develop action plans. • Implement specific actions and monitor progress. • Recalibrate the benchmarks.
