Chapter 2 Quality Management Complete Test Bank - Operations Management 2e Canadian Test Bank by Roberta S. Russell. DOCX document preview.
CHAPTER 2
QUALITY MANAGEMENT
CHAPTER LEARNING OBJECTIVES
1. Discuss the meaning of quality of goods and services from both the producer’s and consumer’s perspectives. In our discussion of quality management in this chapter, certain consistencies or commonalities have surfaced. The most important perspective of quality is the customer’s: products and services must be designed to meet customer expectations and needs for quality.
2. Discuss the evolution of quality management into a quality management system, including key figures and their contributions. To make sure that products and services are designed to meet customer expectations, a strategy to achieve quality throughout the organization is required. This approach to the management of quality throughout the entire organization has evolved into what is generally referred to as a QMS, which implies a total commitment to quality throughout the organization and the supply chain.
3. Use several common quality-control tools. A major cornerstone of the quality-improvement process is the need to identify and prevent the causes of quality problems or defects. A number of tools to identify the causes of quality problems are widely used today, including process flowcharts, cause-and-effect diagrams, check sheets, histograms, Pareto charts, scatter diagrams, and statistical process control (SPC) charts. These popular tools became the basis for the quality management programs developed by many companies, including Six Sigma and Lean Six Sigma QMSs.
4. Describe several approaches used for involving employees in the quality-improvement process. A total commitment to quality is necessary throughout an organization for it to be successful in improving and managing product quality. This commitment must start at the top and filter down through all levels of the organization and across all areas and departments. Employees need to be active participants in the quality-improvement process and must feel a responsibility for quality. Employees must feel free to make suggestions to improve product quality, and a systematic procedure is necessary to involve workers and solicit their input.
5. Describe the Six Sigma and Lean Six Sigma quality management systems and calculate changes in profit resulting from Six Sigma projects. Six Sigma was first developed at Motorola as a project-oriented methodology that provides businesses with the tools and expertise to improve their processes. This increase in performance through a decrease in process variation leads to defect reduction and an increase in product and service quality and increased profits. A number of companies have credited Six Sigma with billions of dollars in cost savings and increased profits, and these reported successes have led many other large and small companies to adopt all or some of the Six Sigma methodology. As a result, Six Sigma is currently one of the most popular QMSs in the world.
6. Classify quality-related costs and calculate and interpret quality-measurement indices. Improving product quality is cost effective; the cost of poor quality greatly exceeds the cost of attaining good quality. Quality can be improved with the effective use of statistical quality-control methods. In fact, the use of statistical quality control has been a pervasive part of our discussions on quality management, and it has been identified as an important part of any quality-management program. In the following chapter, we concentrate on statistical quality-control methods and principles.
7. Use several quality measures that reflect productivity. Finally, a QMS can not only help to reduce quality-related costs and improve market share and profitability, but also improve productivity. In fact, virtually all aspects of quality improvement have a favourable impact on different measures of productivity. Improving product design and production processes, improving the quality of materials and parts, and improving job designs and work activity will all increase productivity.
TRUE-FALSE STATEMENTS
1. Globalization and foreign competition began to change consumer’s attitudes towards quality in the 1950s.
Difficulty: Easy
Learning Objective: Discuss the meaning of quality of goods and services from both the producer’s and consumer’s perspectives.
Section Reference: 2.1 What Is Quality?
Blooms: Knowledge
AACSB: Reflective Thinking
2. How well the product or service does what it is intended to do is known as quality of design.
Difficulty: Easy
Learning Objective: Discuss the meaning of quality of goods and services from both the producer’s and consumer’s perspectives.
Section Reference: 2.1 What Is Quality?
Blooms: Knowledge
AACSB: Reflective Thinking
3. The degree to which quality characteristics are designed into the product is known as quality of design.
Difficulty: Easy
Learning Objective: Discuss the meaning of quality of goods and services from both the producer’s and consumer’s perspectives.
Section Reference: 2.1 What Is Quality?
Blooms: Knowledge
AACSB: Reflective Thinking
4. Quality of performance relates to the basic operating characteristics of a product.
Difficulty: Easy
Learning Objective: Discuss the meaning of quality of goods and services from both the producer’s and consumer’s perspectives.
Section Reference: 2.1 What Is Quality?
Blooms: Knowledge
AACSB: Reflective Thinking
5. The degree to which a product meets pre-established standards is known as quality of conformance.
Difficulty: Easy
Learning Objective: Discuss the meaning of quality of goods and services from both the producer’s and consumer’s perspectives.
Section Reference: 2.1 What Is Quality?
Blooms: Knowledge
AACSB: Reflective Thinking
6. The courtesy and competence of the repair person can be one aspect of maintainability.
Difficulty: Easy
Learning Objective: Discuss the meaning of quality of goods and services from both the producer’s and consumer’s perspectives.
Section Reference: 2.1 What Is Quality?
Blooms: Knowledge
AACSB: Reflective Thinking
7. The probability that a product will operate properly within an expected time frame is known as quality of performance.
Difficulty: Medium
Learning Objective: Discuss the meaning of quality of goods and services from both the producer’s and consumer’s perspectives.
Section Reference: 2.1 What Is Quality?
Blooms: Knowledge
AACSB: Reflective Thinking
8. The dimension of quality related to the life-span of a product before replacement is known as durability.
Difficulty: Medium
Learning Objective: Discuss the meaning of quality of goods and services from both the producer’s and consumer’s perspectives.
Section Reference: 2.1 What Is Quality?
Blooms: Knowledge
AACSB: Reflective Thinking
9. Service quality is more directly related to the interaction between customer and employee than is manufacturing quality.
Difficulty: Medium
Learning Objective: Discuss the meaning of quality of goods and services from both the producer’s and consumer’s perspectives.
Section Reference: 2.1 What Is Quality?
Blooms: Knowledge
AACSB: Reflective Thinking
10. Training, supervision, and control are important elements in achieving quality of conformance.
Difficulty: Easy
Learning Objective: Discuss the meaning of quality of goods and services from both the producer’s and consumer’s perspectives.
Section Reference: 2.1 What Is Quality?
Blooms: Knowledge
AACSB: Reflective Thinking
11. The consumer makes the final judgment regarding quality.
Difficulty: Easy
Learning Objective: Discuss the meaning of quality of goods and services from both the producer’s and consumer’s perspectives.
Section Reference: 2.1 What Is Quality?
Blooms: Knowledge
AACSB: Reflective Thinking
12. Quality characteristics included in the product’s design must be balanced against production costs.
Difficulty: Medium
Learning Objective: Discuss the meaning of quality of goods and services from both the producer’s and consumer’s perspectives.
Section Reference: 2.1 What Is Quality?
Blooms: Comprehension
AACSB: Reflective Thinking
13. Companies that satisfy its customer quality requirements often require the commitment of their suppliers.
Difficulty: Hard
Learning Objective: Discuss the meaning of quality of goods and services from both the producer’s and consumer’s perspectives.
Section Reference: 2.1 What Is Quality?
Blooms: Comprehension
AACSB: Reflective Thinking
14. Most members of a supply chain understand the importance of high quality because they are both customers and suppliers.
Difficulty: Medium
Learning Objective: Discuss the meaning of quality of goods and services from both the producer’s and consumer’s perspectives.
Section Reference: 2.1 What Is Quality?
Blooms: Comprehension
AACSB: Reflective Thinking
15. Some companies enter into long-term relationships with suppliers who in return commit to meeting only delivery deadlines.
Difficulty: Easy
Learning Objective: Discuss the meaning of quality of goods and services from both the producer’s and consumer’s perspectives.
Section Reference: 2.1 What Is Quality?
Blooms: Knowledge
AACSB: Reflective Thinking
16. Benchmarking involves comparing a company’s quality to the best level of quality achieved by another company in the same industry.
Difficulty: Medium
Learning Objective: Discuss the meaning of quality of goods and services from both the producer’s and consumer’s perspectives.
Section Reference: 2.1 What Is Quality?
Blooms: Knowledge
AACSB: Reflective Thinking
17. McDonald’s has a reputation for high-quality service resulting from the application of quality management principles.
Difficulty: Medium
Learning Objective: Discuss the meaning of quality of goods and services from both the producer’s and consumer’s perspectives.
Section Reference: 2.1 What Is Quality?
Blooms: Knowledge
AACSB: Reflective Thinking
18. Quality management principles often do not apply to services because the customer has lower quality expectations.
Difficulty: Medium
Learning Objective: Discuss the meaning of quality of goods and services from both the producer’s and consumer’s perspectives.
Section Reference: 2.1 What Is Quality?
Blooms: Comprehension
AACSB: Reflective Thinking
19. Toyota achieved high product quality by adapting many of the quality management principles that had first been developed in the United States.
Difficulty: Medium
Learning Objective: Discuss the evolution of quality management into a quality management system, including key figures and their contributions.
Section Reference: 2.2 Quality Management System
Blooms: Knowledge
AACSB: Reflective Thinking
20. From the producer’s perspective, quality is determined by what the consumer wants and is willing to pay for.
Difficulty: Easy
Learning Objective: Discuss the evolution of quality management into a quality management system, including key figures and their contributions.
Section Reference: 2.2 Quality Management System
Blooms: Knowledge
AACSB: Reflective Thinking
21. Deming advocated continuous process improvement to reduce variability and achieve conformance to design specifications.
Difficulty: Medium
Learning Objective: Discuss the evolution of quality management into a quality management system, including key figures and their contributions.
Section Reference: 2.2 Quality Management System
Blooms: Knowledge
AACSB: Reflective Thinking
22. Deming emphasized final product inspection as a way to improve process quality.
Difficulty: Easy
Learning Objective: Discuss the evolution of quality management into a quality management system, including key figures and their contributions.
Section Reference: 2.2 Quality Management System
Blooms: Knowledge
AACSB: Reflective Thinking
23. Deming advocated the elimination of both common cause and special cause variation as a way to improve a process.
Difficulty: Medium
Learning Objective: Discuss the evolution of quality management into a quality management system, including key figures and their contributions.
Section Reference: 2.2 Quality Management System
Blooms: Comprehension
AACSB: Reflective Thinking
24. Deming emphasized the use of statistical quality control techniques to reduce variability in the output of a process.
Difficulty: Easy
Learning Objective: Discuss the evolution of quality management into a quality management system, including key figures and their contributions.
Section Reference: 2.2 Quality Management System
Blooms: Knowledge
AACSB: Reflective Thinking
25. Deming believed that only employees are responsible for improving quality.
Difficulty: Easy
Learning Objective: Discuss the evolution of quality management into a quality management system, including key figures and their contributions.
Section Reference: 2.2 Quality Management System
Blooms: Knowledge
AACSB: Reflective Thinking
26. The Deming Wheel is also known as the plan-do-check-act (PDCA) cycle.
Difficulty: Easy
Learning Objective: Discuss the evolution of quality management into a quality management system, including key figures and their contributions.
Section Reference: 2.2 Quality Management System
Blooms: Knowledge
AACSB: Reflective Thinking
27. Total quality management represents a set of management principles that focus on quality improvement in all the functional areas within a company.
Difficulty: Easy
Learning Objective: Use several common quality-control tools.
Section Reference: 2.3 Quality Tools
Blooms: Knowledge
AACSB: Reflective Thinking
28. Statistical process control monitors and controls quality for both qualitative and quantitative variables.
Difficulty: Hard
Learning Objective: Use several common quality-control tools.
Section Reference: 2.3 Quality Tools
Blooms: Comprehension
AACSB: Reflective Thinking
29. Today total quality management has been displaced by quality management systems.
Difficulty: Hard
Learning Objective: Use several common quality-control tools.
Section Reference: 2.3 Quality Tools
Blooms: Comprehension
AACSB: Reflective Thinking
30. Six Sigma is one of several well known quality management systems.
Difficulty: Easy
Learning Objective: Use several common quality-control tools.
Section Reference: 2.3 Quality Tools
Blooms: Knowledge
AACSB: Reflective Thinking
31. The training and education of all employees on quality improvement is a basic principle of total quality management.
Difficulty: Easy
Learning Objective: Describe several approaches used for involving employees in the quality-improvement process.
Section Reference: 2.4 The Role of Employees in Quality Improvement
Blooms: Knowledge
AACSB: Reflective Thinking
32. One principle of total quality management (TQM) is that middle management is solely responsible for providing the leadership for quality.
Difficulty: Medium
Learning Objective: Describe several approaches used for involving employees in the quality-improvement process.
Section Reference: 2.4 The Role of Employees in Quality Improvement
Blooms: Comprehension
AACSB: Reflective Thinking
33. Employees’ role in quality management is becoming less important because of the implementation of strong quality management systems.
Difficulty: Medium
Learning Objective: Describe several approaches used for involving employees in the quality-improvement process.
Section Reference: 2.4 The Role of Employees in Quality Improvement
Blooms: Comprehension
AACSB: Reflective Thinking
34. Two team approaches to improvement are quality circles and process improvement teams.
Difficulty: Medium
Learning Objective: Describe several approaches used for involving employees in the quality-improvement process.
Section Reference: 2.4 The Role of Employees in Quality Improvement
Blooms: Comprehension
AACSB: Reflective Thinking
35. Six Sigma quality is a statistical measure that equates to only 3.4 defects per million.
Difficulty: Medium
Learning Objective: Describe the Six Sigma and Lean Six Sigma quality management systems and calculate changes in profit resulting from Six Sigma projects.
Section Reference: 2.5 Six Sigma
Blooms: Knowledge
AACSB: Reflective Thinking
36. Before Six Sigma, quality levels in North America were generally measured in defects per hundred.
Difficulty: Medium
Learning Objective: Describe the Six Sigma and Lean Six Sigma quality management systems and calculate changes in profit resulting from Six Sigma projects.
Section Reference: 2.5 Six Sigma
Blooms: Knowledge
AACSB: Reflective Thinking
37. Six Sigma is a recognized quality program based strictly on statistical process control.
Difficulty: Easy
Learning Objective: Describe the Six Sigma and Lean Six Sigma quality management systems and calculate changes in profit resulting from Six Sigma projects.
Section Reference: 2.5 Six Sigma
Blooms: Knowledge
AACSB: Reflective Thinking
38. Companies that have adopted Six Sigma view it as a short-term strategy for quality improvement.
Difficulty: Easy
Learning Objective: Describe the Six Sigma and Lean Six Sigma quality management systems and calculate changes in profit resulting from Six Sigma projects.
Section Reference: 2.5 Six Sigma
Blooms: Knowledge
AACSB: Reflective Thinking
39. The fundamental objective of Six Sigma is to focus on improvement by reducing process variation.
Difficulty: Medium
Learning Objective: Describe the Six Sigma and Lean Six Sigma quality management systems and calculate changes in profit resulting from Six Sigma projects.
Section Reference: 2.5 Six Sigma
Blooms: Knowledge
AACSB: Reflective Thinking
40. With Six Sigma, the project team leader is known as a Black Belt.
Difficulty: Easy
Learning Objective: Describe the Six Sigma and Lean Six Sigma quality management systems and calculate changes in profit resulting from Six Sigma projects.
Section Reference: 2.5 Six Sigma
Blooms: Knowledge
AACSB: Reflective Thinking
41. With Six Sigma, a teacher and mentor is known as a Green Belt.
Difficulty: Medium
Learning Objective: Describe the Six Sigma and Lean Six Sigma quality management systems and calculate changes in profit resulting from Six Sigma projects.
Section Reference: 2.5 Six Sigma
Blooms: Knowledge
AACSB: Reflective Thinking
42. The cost of measuring, testing, and analyzing are collectively known as appraisal costs.
Difficulty Easy
Learning Objective: Classify quality-related costs and calculate and interpret quality-measurement indices.
Section Reference: 2.6 The Cost of Quality
Blooms: Knowledge
AACSB: Reflective Thinking
43. Customer complaint costs are an example of external failure costs.
Difficulty: Medium
Learning Objective: Classify quality-related costs and calculate and interpret quality-measurement indices.
Section Reference: 2.6 The Cost of Quality
Blooms: Comprehension
AACSB: Reflective Thinking
44. ISO 9000 certification is a major consideration for doing business within North America.
Difficulty: Medium
Learning Objective: Classify quality-related costs and calculate and interpret quality-measurement indices.
Section Reference: 2.6 The Cost of Quality
Blooms: Comprehension
AACSB: Reflective Thinking
MULTIPLE CHOICE QUESTIONS
45. Which of the following is not a dimension of quality for a manufactured good?
a) performance
b) reliability
c) courtesy
d) durability
Difficulty: Easy
Learning Objective: Discuss the meaning of quality of goods and services from both the producer’s and consumer’s perspectives.
Section Reference: 2.1 What Is Quality?
Blooms: Knowledge
AACSB: Reflective Thinking
46. The probability that a product will operate properly within an expected time frame is the dimension of quality known as
a) durability.
b) reliability.
c) performance.
d) serviceability.
Difficulty: Easy
Learning Objective: Discuss the meaning of quality of goods and services from both the producer’s and consumer’s perspectives.
Section Reference: 2.1 What Is Quality?
Blooms: Knowledge
AACSB: Reflective Thinking
47. The degree to which a product meets pre-established standards is known as
a) conformance.
b) performance.
c) reliability.
d) none of the above.
Difficulty: Easy
Learning Objective: Discuss the meaning of quality of goods and services from both the producer’s and consumer’s perspectives.
Section Reference: 2.1 What Is Quality?
Blooms: Knowledge
AACSB: Reflective Thinking
48. Making sure that the product meets the design specifications during production is referred to as
a) quality of design.
b) process capability.
c) fitness for use.
d) quality of conformance.
Difficulty: Easy
Learning Objective: Discuss the meaning of quality of goods and services from both the producer’s and consumer’s perspectives.
Section Reference: 2.1 What Is Quality?
Blooms: Knowledge
AACSB: Reflective Thinking
49. A relationship between a firm and its supplier where the supplier agrees to meet the firms’ quality standards and the firm enters into a long-term purchasing agreement with the supplier is known as
a) outsourcing.
b) vertical integration.
c) partnering.
d) conformance.
Difficulty: Medium
Learning Objective: Discuss the meaning of quality of goods and services from both the producer’s and consumer’s perspectives.
Section Reference: 2.1 What Is Quality?
Blooms: Knowledge
AACSB: Reflective Thinking
50. All of the following are dimensions of quality for manufactured products, except
a) conformance.
b) reliability.
c) durability.
d) feasibility.
Difficulty: Medium
Learning Objective: Discuss the meaning of quality of goods and services from both the producer’s and consumer’s perspectives.
Section Reference: 2.1 What Is Quality?
Blooms: Comprehension
AACSB: Reflective Thinking
51. All of the following are dimensions of quality for services, except
a) courtesy.
b) servicability.
c) consistency.
d) responsiveness.
Difficulty: Medium
Learning Objective: Discuss the meaning of quality of goods and services from both the producer’s and consumer’s perspectives.
Section Reference: 2.1 What Is Quality?
Blooms: Comprehension
AACSB: Reflective Thinking
52. ___ advocated continuous improvement to the production process to achieve conformance to specifications and reduce variability.
a) W. Edwards Deming
b) Philip Crosby
c) Kaoru Ishikawa
d) Frederick Taylor
Difficulty: Medium
Learning Objective: Discuss the evolution of quality management into a quality management system, including key figures and their contributions.
Section Reference: 2.2 Quality Management System
Blooms: Knowledge
AACSB: Reflective Thinking
53. W. Edwards Deming believed that primary responsibility for quality improvement rested with
a) the firm’s employees only.
b) the form’s management only.
c) research engineers and consulting statisticians only.
d) both the employees and management of the firm.
Difficulty: Medium
Learning Objective: Discuss the evolution of quality management into a quality management system, including key figures and their contributions.
Section Reference: 2.2 Quality Management System
Blooms: Comprehension
AACSB: Reflective Thinking
54. W. Edwards Deming’s overall philosophy for achieving quality is embodied in
a) his 14 points.
b) his statement of purpose.
c) his use of statistical control.
d) none of the above.
Difficulty: Easy
Learning Objective: Discuss the evolution of quality management into a quality management system, including key figures and their contributions.
Section Reference: 2.2 Quality Management System
Blooms: Knowledge
AACSB: Reflective Thinking
55. ___ developed control charts for statistical quality control.
a) W. Edwards Deming
b) Philip Crosby
c) Kaoru Ishikawa
d) Walter Shewhart
Difficulty: Easy
Learning Objective: Discuss the evolution of quality management into a quality management system, including key figures and their contributions.
Section Reference: 2.2 Quality Management System
Blooms: Knowledge
AACSB: Reflective Thinking
56. Which of the following quality tools displays major causes of poor quality on a graph?
a) Process flow chart
b) Fishbone diagram
c) Histogram
d) Scatter diagram
Difficulty: Medium
Learning Objective: Use several common quality-control tools.
Section Reference: 2.3 Quality Tools
Blooms: Knowledge
AACSB: Reflective Thinking
57. Which of the following quality tools displays the frequency of data related to a quality problem?
a) Fishbone diagram
b) Histogram
c) Scatter diagram
d) Process flow chart
Difficulty: Medium
Learning Objective: Use several common quality-control tools.
Section Reference: 2.3 Quality Tools
Blooms: Knowledge
AACSB: Reflective Thinking
58. Which of the following quality tools displays the relationship between two variables on a graph?
a) Process flow chart
b) Fishbone diagram
c) Histogram
d) Scatter diagram
Difficulty: Medium
Learning Objective: Use several common quality-control tools.
Section Reference: 2.3 Quality Tools
Blooms: Knowledge
AACSB: Reflective Thinking
59. Which of the following quality tools displays the steps in a process on a graph?
a) Process flow chart
b) Fishbone diagram
c) Histogram
d) Scatter diagram
Difficulty: Medium
Learning Objective: Use several common quality-control tools.
Section Reference: 2.3 Quality Tools
Blooms: Knowledge
AACSB: Reflective Thinking
60. Which of the following statements about the voice of the customer is not correct?
a) The vast majority of consumers trusts peer recommendations, but only a small minority trusts advertisements.
b) Customers who “like” Walmart on Facebook are four times more likely to buy there than the average person.
c) On average, satisfied customers will tell more people on social media about their experiences than an unsatisfied customer will tell.
d) Over four out of five of consumers consult online reviews prior to their holiday purchases.
Difficulty: Medium
Learning Objective: Use several common quality-control tools.
Section Reference: 2.3 Quality Tools
Blooms: Knowledge
AACSB: Reflective Thinking
61. Directly involving employees in the quality-management process is referred to as
a) partnering.
b) a quality circle.
c) Six Sigma.
d) participative problem solving.
Difficulty: Easy
Learning Objective: Describe several approaches used for involving employees in the quality-improvement process.
Section Reference: 2.4 The Role of Employees in Quality Improvement
Blooms: Knowledge
AACSB: Reflective Thinking
62. Kaizen stands for
a) fitness for use.
b) quality of design.
c) Six Sigma.
d) continuous improvement.
Difficulty: Easy
Learning Objective: Describe several approaches used for involving employees in the quality-improvement process.
Section Reference: 2.4 The Role of Employees in Quality Improvement
Blooms: Knowledge
AACSB: Reflective Thinking
63. All of the following are parts of DMAIC, except
a) Define.
b) Measure.
c) Analyze.
d) Improvise.
Difficulty: Medium
Learning Objective: Describe the Six Sigma and Lean Six Sigma quality management systems and calculate changes in profit resulting from Six Sigma projects.
Section Reference: 2.5 Six Sigma
Blooms: Comprehension
AACSB: Reflective Thinking
64. All of the following are part of DMAIC except
a) Improve.
b) Control.
c) Measure.
d) Implement.
Difficulty: Medium
Learning Objective: Describe the Six Sigma and Lean Six Sigma quality management systems and calculate changes in profit resulting from Six Sigma projects.
Section Reference: 2.5 Six Sigma
Blooms: Comprehension
AACSB: Reflective Thinking
65. Which quality guru stated that “Quality is not only free, it is an honest-to-everything
profi t maker.”?
a) W. Edwards Deming
b) Philip Crosby
c) Kaoru Ishikawa
d) Frederick Taylor
Difficulty: Easy
Learning Objective: Describe the Six Sigma and Lean Six Sigma quality management systems and calculate changes in profit resulting from Six Sigma projects.
Section Reference: 2.5 Six Sigma
Blooms: Knowledge
AACSB: Reflective Thinking
66. The costs associated with developing a quality management system are known as
a) training costs.
b) design costs.
c) quality planning costs.
d) information costs.
Difficulty: Medium
Learning Objective: Classify quality-related costs and calculate and interpret quality-measurement indices.
Section Reference: 2.6 The Cost of Quality
Blooms: Knowledge
AACSB: Reflective Thinking
67, ___ failure costs include scrap, rework, and downtime.
a) External
b) Internal
c) Process
d) System
Difficulty: Medium
Learning Objective: Classify quality-related costs and calculate and interpret quality-measurement indices.
Section Reference: 2.6 The Cost of Quality
Blooms: Knowledge
AACSB: Reflective Thinking
68. A production process consists of the following four stages with the average percentage of good quality at each stage as shown:
Stage | Average Percentage of Good Quality |
1 | 0.92 |
2 | 0.95 |
3 | 0.96 |
4 | 0.93 |
What is the daily production yield for the company if daily input is 200 units?
a) 192 units
b) 188 units
c) 184 units
d) 156 units
Difficulty: Hard
Learning Objective: Use several quality measures that reflect productivity.
Section Reference: 2.7 The Effect of Quality Management on Productivity
Blooms: Analysis
AACSB: Reflective Thinking
69. A production process consists of the following four stages with the average percentage of good quality at each stage as shown:
Stage | Average Percentage of Good Quality |
1 | 0.92 |
2 | 0.95 |
3 | 0.96 |
4 | 0.93 |
How many units must the company put into production each day to achieve a daily yield of 100 good units?
a) approximately 128 units
b) approximately 108 units
c) approximately 106 units
d) approximately 104 units
Difficulty: Hard
Learning Objective: Use several quality measures that reflect productivity.
Section Reference: 2.7 The Effect of Quality Management on Productivity
Blooms: Analysis
AACSB: Reflective Thinking
70. A production process consists of the following four stages with the average percentage of good quality at each stage as shown:
Stage | Average Percentage of Good Quality |
1 | 0.95 |
2 | 0.95 |
3 | 0.93 |
4 | 0.97 |
What is the daily production yield for the company if daily input is 500 units?
a) 485 units
b) 465 units
c) 407 units
d) 400 units
Difficulty: Hard
Learning Objective: Use several quality measures that reflect productivity.
Section Reference: 2.7 The Effect of Quality Management on Productivity
Blooms: Analysis
AACSB: Reflective Thinking
71. A production process consists of the following four stages with the average percentage of good quality at each stage as shown:
Stage | Average Percentage of Good Quality |
1 | 0.95 |
2 | 0.95 |
3 | 0.93 |
4 | 0.97 |
How many units must the company put into production each day to achieve a daily yield of 350 good units?
a) approximately 430 units
b) approximately 415 units
c) approximately 468 units
d) approximately 361 units
Difficulty: Hard
Learning Objective: Use several quality measures that reflect productivity.
Section Reference: 2.7 The Effect of Quality Management on Productivity
Blooms: Analysis
AACSB: Reflective Thinking
72. Appraisal costs include the following except
a) inspection and testing costs.
b) test equipment costs..
c) training costs.
d) operator costs.
Difficulty: Medium
Learning Objective: Classify quality-related costs and calculate and interpret quality-measurement indices.
Section Reference: 2.6 The Cost of Quality
Blooms: Knowledge
AACSB: Reflective Thinking
SHORT-ANSWER ESSAY QUESTIONS
73. Briefly discuss four dimensions of quality a consumer looks for in manufactured products.
Performance: the basic operating characteristics of a product.
Features: the extra items added to the basic features.
Reliability: the probability that a product will operate properly within an expected time frame.
Conformance: the degree to which a product meets pre-established standards.
Durability: how long the product lasts before it must be replaced.
Serviceability: the ease, speed, and facility of the repair process.
Aesthetics: how the product looks, feels, smells, sounds, or tastes.
Safety: assurance that the customer will not suffer injury or harm from a product.
Other: subjective perceptions based on brand name, advertising, etc.
Difficulty: Medium
Learning Objective: Discuss the meaning of quality of goods and services from both the producer’s and consumer’s perspectives.
Section Reference: 2.1 What Is Quality?
Blooms: Comprehension
AACSB: Reflective Thinking
74. What is quality of conformance from the producer’s perspective and how can it be achieved?
Difficulty: Medium
Learning Objective: Discuss the meaning of quality of goods and services from both the producer’s and consumer’s perspectives.
Section Reference: 2.1 What Is Quality?
Blooms: Comprehension
AACSB: Reflective Thinking
75. Briefly discuss the principles associated with total quality management (TQM).
the customer defines quality and customer satisfaction is the top priority,
top management must provide the leadership for quality,
quality is a strategic issue and requires a strategic plan,
quality is the responsibility of all employees in the organization,
all functions of the company must focus on continuous quality improvement to achieve strategic goals,
quality problems are solved through cooperation among employees and management,
problem solving and continuous quality improvement use statistical quality control methods, and
training and education of all employees are the basis for continuous quality improvement.
Difficulty: Medium
Learning Objective: Use several common quality-control tools.
Section Reference: 2.3 Quality Tools
Blooms: Comprehension
AACSB: Reflective Thinking
76. Briefly discuss partnering.
Difficulty: Medium
Learning Objective: Use several common quality-control tools.
Section Reference: 2.3 Quality Tools
Blooms: Comprehension
AACSB: Reflective Thinking
77. Briefly describe quality circles.
Difficulty: Medium
Learning Objective: Describe several approaches used for involving employees in the quality-improvement process.
Section Reference: 2.4 The Role of Employees in Quality Improvement
Blooms: Comprehension
AACSB: Reflective Thinking
78. What is Kaizen and what role do employees play in Kaizen?
Difficulty: Medium
Learning Objective: Describe several approaches used for involving employees in the quality-improvement process.
Section Reference: 2.4 The Role of Employees in Quality Improvement
Blooms: Comprehension
AACSB: Reflective Thinking
79. What is a Six Sigma quality program?
Difficulty: Medium
Learning Objective: Describe the Six Sigma and Lean Six Sigma quality management systems and calculate changes in profit resulting from Six Sigma projects.
Section Reference: 2.5 Six Sigma
Blooms: Comprehension
AACSB: Reflective Thinking
80. Briefly describe various Six Sigma tools and give an example of the use of each.
Difficulty: Hard
Learning Objective: Use several common quality-control tools.
Learning Objective: Describe the Six Sigma and Lean Six Sigma quality management systems and calculate changes in profit resulting from Six Sigma projects.
Section Reference: 2.3 Quality Tools
Section Reference: 2.5 Six Sigma
Blooms: Comprehension
AACSB: Reflective Thinking
81. Briefly discuss the costs are associated with achieving good quality.
Appraisal costs are the costs of measuring, testing, and analyzing materials, parts, products, and the production process to ensure that product quality specifications are being met. Examples of appraisal costs include inspection and testing, test equipment costs, and operator costs.
Difficulty: Medium
Learning Objective: Classify quality-related costs and calculate and interpret quality-measurement indices.
Section Reference: 2.6 The Cost of Quality
Blooms: Comprehension
AACSB: Reflective Thinking
82. Briefly discuss the cost of poor quality.
Difficulty: Medium
Learning Objective: Classify quality-related costs and calculate and interpret quality-measurement indices.
Section Reference: 2.6 The Cost of Quality
Blooms: Comprehension
AACSB: Reflective Thinking
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