MBA Operations Management - Test Bank - Chapter 06a

Operations Management, 12e (Heizer/Render/Munson)
Chapter 6  Managing Quality

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Section 1   Quality and Strategy

1) Managers at Arnold Palmer Hospital take quality so seriously that the hospital typically is a national leader in several quality areas—so that continuous improvement is no longer necessary.
Answer:  FALSE
Diff: 2
Key Term:  Quality
Objective:  LO 6.1 Define quality and TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

2) An improvement in quality must necessarily increase costs.
Answer:  FALSE
Diff: 1
Key Term:  Quality
Objective:  LO 6.1 Define quality and TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

3) Improved quality can increase profitability via allowing flexible pricing.
Answer:  TRUE
Diff: 2
Key Term:  Quality
Objective:  LO 6.1 Define quality and TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

4) Which of the following statements regarding Arnold Palmer Hospital is FALSE?

1. A) The hospital uses a wide range of quality management techniques.
2. B) The culture of quality at the hospital includes employees at all levels.
3. C) The hospital scores very highly in national studies of patient satisfaction.
4. D) The hospital's high quality is measured by low readmission rates, not patient satisfaction.
5. E) The design of patient rooms, even wall colors, reflects the hospital's culture of quality.

Answer:  D
Diff: 2
Objective:  LO 6.1 Define quality and TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

5) Arnold Palmer Hospital uses which of the following quality management techniques?

1. A) Pareto charts
2. B) flowcharts
3. C) benchmarking
4. D) just-in-time
5. E) The hospital uses all of the above techniques.

Answer:  E
Diff: 1
Objective:  LO 6.1 Define quality and TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

6) Companies with the highest levels of quality are how many times more productive than their competitors with the lowest quality levels?

1. A) 2
2. B) 3
3. C) 4
4. D) 5
5. E) None of the above because quality has no impact on productivity (units/labor hr.).

Answer:  D
Diff: 3
Key Term:  Quality
Objective:  LO 6.1 Define quality and TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

7) A successful quality strategy features which of the following elements?

1. A) an organizational culture that fosters quality
2. B) an understanding of the principles of quality
3. C) engaging employees in the necessary activities to implement quality
4. D) A and C
5. E) A, B, and C

Answer:  E
Diff: 2
Key Term:  Quality
Objective:  LO 6.1 Define quality and TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

8) Quality can improve profitability by reducing costs. Which of the following is not an aspect of reduced costs by quality improvements?

1. A) flexible pricing
2. B) increased productivity
3. C) lower rework and scrap costs
4. D) lower warranty costs
5. E) All of the above are aspects of reduced costs by quality improvements.

Answer:  A
Diff: 2
Key Term:  Quality
Objective:  LO 6.1 Define quality and TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

9) Arnold Palmer Hospital uses ________ to seek new ways to reduce readmission rates.
Answer:  continuous improvement
Diff: 2
Key Term:  Global company profile

Section 2   Defining Quality

1) The definition of quality adopted by The American Society for Quality is a customer-oriented (i.e., user based) definition.
Answer:  TRUE
Diff: 2
Key Term:  Quality
Objective:  LO 6.1 Define quality and TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

2) Conforming to standards is the focus of the product-based definition of quality.
Answer:  FALSE
Diff: 2
Key Term:  Quality
Objective:  LO 6.1 Define quality and TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

3) Internal failure costs are associated with scrap, rework, and downtime.
Answer:  TRUE
Diff: 1
Key Term:  Cost of quality (COQ)
Objective:  LO 6.1 Define quality and TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

4) Philip Crosby is credited with both of these quality catch-phrases: "quality is free" and "zero defects."
Answer:  TRUE
Diff: 2
Objective:  LO 6.1 Define quality and TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

5) Deming's writings on quality tend to focus on the customer and on fitness for use, unlike Juran's work that is oriented toward meeting specifications.
Answer:  FALSE
Diff: 3
Objective:  LO 6.1 Define quality and TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

6) "Making it right the first time" is the focus of the user-based definition of quality.
Answer:  FALSE
Diff: 2
Key Term:  Quality
Objective:  LO 6.1 Define quality and TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

7) "Quality lies in the eyes of the beholder" is:

1. A) an unrealistic definition of quality.
2. B) a user-based definition of quality.
3. C) a manufacturing-based definition of quality.
4. D) a product-based definition of quality.
5. E) the definition of quality proposed by the American Society for Quality.

Answer:  B
Diff: 2
Key Term:  Quality
Objective:  LO 6.1 Define quality and TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

8) "Making it right the first time" is:

1. A) an unrealistic definition of quality.
2. B) a user-based definition of quality.
3. C) a manufacturing-based definition of quality.
4. D) a product-based definition of quality.
5. E) the definition of quality proposed by the American Society for Quality

Answer:  C
Diff: 2
Key Term:  Quality
Objective:  LO 6.1 Define quality and TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

9) Three broad categories of definitions of quality are:

1. A) product quality, service quality, and organizational quality.
2. B) user based, manufacturing based, and product based.
3. C) internal, external, and prevention.
4. D) low-cost, response, and differentiation.
5. E) Pareto, Shewhart, and Deming.

Answer:  B
Diff: 1
Key Term:  Quality
Objective:  LO 6.1 Define quality and TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

10) According to the manufacturing-based definition of quality:

1. A) quality is the degree of excellence at an acceptable price and the control of variability at an acceptable cost.
2. B) quality depends on how well the product fits patterns of consumer preferences.
3. C) even though quality cannot be defined, you know what it is.
4. D) quality is the degree to which a specific product conforms to standards.
5. E) quality lies in the eyes of the beholder.

Answer:  D
Diff: 2
Key Term:  Quality
Objective:  LO 6.1 Define quality and TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

11) Which of the following is NOT one of the major categories of costs associated with quality?

1. A) prevention costs
2. B) appraisal costs
3. C) internal failure costs
4. D) external failure costs
5. E) None of the above; they are all major categories of costs associated with quality.

Answer:  E
Diff: 2
Key Term:  Cost of quality (COQ)
Objective:  LO 6.1 Define quality and TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

12) All of the following costs are likely to decrease as a result of better quality EXCEPT:

1. A) customer dissatisfaction costs.
2. B) inspection costs.
3. C) scrap costs.
4. D) warranty and service costs.
5. E) maintenance costs.

Answer:  E
Diff: 2
Objective:  LO 6.1 Define quality and TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

13) Which of the four major categories of quality costs is particularly hard to quantify?

1. A) prevention costs
2. B) appraisal costs
3. C) internal failure costs
4. D) external failure costs
5. E) None is hard to quantify.

Answer:  D
Diff: 2
Key Term:  Cost of quality (COQ)
Objective:  LO 6.1 Define quality and TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

14) GE's recall of 3.1 million dishwashers cost the company more in repairs than the value of the actual dishwashers. This is an example of which quality principle?

1. A) PDCA
2. B) internal failure costs
3. C) appraisal costs
4. D) cost of poor quality is underestimated
5. E) prevention costs

Answer:  D
Diff: 2
Key Term:  Cost of quality (COQ)
Objective:  LO 6.1 Define quality and TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

15) Which of the following statements is NOT true?

1. A) Self-promotion is not a substitute for quality products.
2. B) Inferior products harm a firm's profitability and a nation's balance of payments.
3. C) Product liability transfers from the manufacturer to the retailer once the retailer accepts delivery of the product.
4. D) Quality–be it good or bad–will show up in perceptions about a firm's new products, employment practices, and supplier relations.
5. E) Legislation such as the Consumer Product Safety Act sets and enforces product standards by banning products that do not reach those standards.

Answer:  C
Diff: 2
Objective:  LO 6.1 Define quality and TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

16) "The employee cannot produce products that on average exceed the quality of what the process is capable of producing" expresses a basic philosophy in the writings of:

1. A) Vilfredo Pareto.
2. B) Armand Feigenbaum.
3. C) Joseph M. Juran.
4. D) W. Edwards Deming.
5. E) Philip B. Crosby.

Answer:  D
Diff: 2
Objective:  LO 6.1 Define quality and TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

17) "Quality Is Free," meaning that the costs of poor quality have been understated, is the work of:

1. A) W. Edwards Deming.
2. B) Joseph M. Juran.
3. C) Philip B. Crosby.
4. D) Crosby, Stills, and Nash.
5. E) Armand Feigenbaum.

Answer:  C
Diff: 2
Objective:  LO 6.1 Define quality and TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality
18) Stakeholders who are affected by the production and marketing of poor quality products include:

1. A) stockholders, employees, and customers.
2. B) suppliers and creditors, but not distributors.
3. C) only stockholders, creditors, and owners.
4. D) suppliers and distributors, but not customers.
5. E) only stockholders and organizational executives and managers.

Answer:  A
Diff: 1
Key Term:  Defining quality
AACSB:  Ethical understanding and reasoning
Objective:  LO 6.1 Define quality and TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

19) Regarding the quality of design, production, and distribution of products, an ethical requirement for management is to:

1. A) determine whether any of the organization's stakeholders are being wronged by poor quality products.
2. B) gain ISO 9000 certification for the organization.
3. C) obtain a product safety certificate from the Consumer Product Safety Commission.
4. D) have the organization's legal staff write disclaimers in the product instruction booklets.
5. E) compare the cost of product liability to the external failure cost.

Answer:  A
Diff: 2
AACSB:  Ethical understanding and reasoning
Objective:  LO 6.1 Define quality and TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

20) To become ISO 9000 certified, organizations must:

1. A) document quality procedures.
2. B) have an onsite assessment.
3. C) have an ongoing series of audits of their products or service.
4. D) all of the above
5. E) none of the above

Answer:  D
Diff: 2
Key Term:  ISO 9000
Objective:  LO 6.2 Describe the ISO international quality standards
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality
21) What is a set of quality standards developed by the International Organization for Standardization?

1. A) Malcolm Baldrige National Quality Award
2. B) Deming Prize
3. C) ISO 14000
4. D) IOS 2009
5. E) ISO 9000

Answer:  E
Diff: 2
Key Term:  ISO 9000
Objective:  LO 6.2 Describe the ISO international quality standards
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

22) ________ costs result from production of defective parts or services before delivery to the customer.
Answer:  Internal failure
Diff: 2
Key Term:  Cost of quality (COQ)
Objective:  LO 6.1 Define quality and TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

23) The work by ________ regarding how people learn from each other's successes led to the field of cross-functional teamwork.
Answer:  Armand Feigenbaum
Diff: 2
Objective:  LO 6.1 Define quality and TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

24) Not only customers, but stockholders, suppliers, and others, are among the ________ whose values must be protected in making ethical decisions concerning the quality of products.
Answer:  stakeholders
Diff: 1
AACSB:  Ethical understanding and reasoning
Objective:  LO 6.1 Define quality and TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

25) Identify the four costs of quality. Which one is hardest to evaluate? Explain.
Answer:  The four costs are internal failure, external failure, prevention, and appraisal. The hardest category to estimate is external failure costs, or costs that occur after delivery of defective parts or services. These costs are very hard to quantify.
Diff: 2
Key Term:  Cost of quality (COQ)
Objective:  LO 6.1 Define quality and TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality
26) State the American Society for Quality's definition of quality. Of the three "flavors" or categories of quality definitions, which type is it? Explain.
Answer:  "The totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs." This is user based, as evidenced by the reference to needs, not to specifications or ingredients.
Diff: 3
Key Term:  Quality
Objective:  LO 6.1 Define quality and TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

27) Quality has at least three categories of definitions; identify them. Provide a brief explanation of each.
Answer:  The three categories of quality are user based (in the eyes of the beholder), manufacturing based (conforming to standards), and product-based (measurable content of product).
Diff: 2
Key Term:  Quality
Objective:  LO 6.1 Define quality and TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

28) In a sentence or two, summarize the contribution of Philip Crosby to quality management.
Answer:  In his book, Quality Is Free, Crosby pointed out that the costs of poor quality are understated, and that understatement made it easier for firms to accept low quality results. He also promoted "zero defects" and doing the job right the first time.
Diff: 2
Objective:  LO 6.1 Define quality and TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality


29) The focus of ISO 9000 is to enhance success through what eight quality management principles?
Answer:  (1) top management leadership, (2) customer satisfaction, (3) continual improvement,
(4) involvement of people, (5) process analysis, (6) use of data-driven decision making, (7) a systems approach to management, and (8) mutually beneficial supplier relationships
Diff: 3
Key Term:  ISO 9000
Objective:  LO 6.2 Describe the ISO international quality standards
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

30) Describe how ISO 9000 has evolved in the past several years.
Answer:  In 2015, the latest modification of the standard, ISO 9001: 2015, follows a structure that makes it more compatible with other management systems. This version gives greater emphasis to risk-based thinking, attempting to prevent undesirable outcomes.
Diff: 3
Key Term:  ISO 9000
Objective:  LO 6.2 Describe the ISO international quality standards
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality
Section 3   Total Quality Management

1) Quality is mostly the business of the quality control staff, not ordinary employees.
Answer:  FALSE
Diff: 2
Key Term:  Quality
Objective:  LO 6.1 Define quality and TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

2) TQM is important because each of the ten decisions made by operations managers deals with some aspect of identifying and meeting customer expectations.
Answer:  TRUE
Diff: 2
Key Term:  Total quality management (TQM)
Objective:  LO 6.1 Define quality and TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

3) The phrase Six Sigma has two meanings. One is statistical, referring to an extremely high process, product, or service capability; the other is a comprehensive system for achieving and sustaining business success.
Answer:  TRUE
Diff: 2
Key Term:  Six Sigma
Objective:  LO 6.3 Explain Six Sigma
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

4) Continuous improvement is based on the philosophy that any aspect of an operation can be improved.
Answer:  TRUE
Diff: 2
Objective:  LO 6.1 Define quality and TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality


5) Kaizen is similar to TQM in that both are focused on continuous improvement.
Answer:  TRUE
Diff: 2
Key Term:  Total quality management (TQM)
AACSB:  Diverse and multicultural work environments
Objective:  LO 6.1 Define quality and TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality
6) Quality circles empower employees to improve productivity by finding solutions to work-related problems in their work area.
Answer:  TRUE
Diff: 2
Key Term:  Quality circle
AACSB:  Written and oral communication
Objective:  LO 6.1 Define quality and TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

7) Benchmarking requires the comparison of your firm to other organizations; it is not appropriate to benchmark by comparing one of your divisions to another of your divisions.
Answer:  FALSE
Diff: 2
Key Term:  Benchmarking
Objective:  LO 6.4 Explain how benchmarking is used in TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

8) Line employees need the knowledge of TQM tools.
Answer:  TRUE
Diff: 1
Key Term:  Total quality management (TQM)
Objective:  LO 6.6 Use the seven tools of TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

9) One of the ways that just-in-time (or JIT) influences quality is that by reducing inventory, bad quality is exposed.
Answer:  TRUE
Diff: 2
Objective:  LO 6.1 Define quality and TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

10) The quality loss function indicates that costs related to poor quality are low as long as the product is within acceptable specification limits.
Answer:  FALSE
Diff: 2
Key Term:  Quality loss function (QLF)
Objective:  LO 6.5 Explain quality robust products and Taguchi concepts
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

11) The philosophy of zero defects is:

1. A) the result of Deming's research.
2. B) unrealistic.
3. C) prohibitively costly.
4. D) an ultimate goal; in practice, 1 to 2% defects is acceptable.
5. E) consistent with the commitment to continuous improvement.

Answer:  E
Diff: 3
Objective:  LO 6.1 Define quality and TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

12) Based on his 14 Points, Deming is a strong proponent of:

1. A) inspection at the end of the production process.
2. B) an increase in numerical quotas to boost productivity.
3. C) looking for the cheapest supplier.
4. D) training and knowledge.
5. E) all of the above.

Answer:  D
Diff: 2
Objective:  LO 6.1 Define quality and TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

13) PDCA, developed by Shewhart, stands for which of the following?

1. A) Plan-Do-Check-Act
2. B) Plan-Develop-Check-Accept
3. C) Problem-Develop Solution-Check-Act
4. D) Problem-Do-Continue-Act
5. E) Prepare-Develop-Create-Assess

Answer:  A
Diff: 2
Key Term:  PDCA
Objective:  LO 6.1 Define quality and TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

14) PDCA is most often applied with regard to which aspect of TQM?

1. A) Six Sigma
2. B) employee empowerment
3. C) continuous improvement
4. D) benchmarking
5. E) JIT

Answer:  C
Diff: 2
Key Term:  PDCA
Objective:  LO 6.1 Define quality and TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

15) A Three Sigma program has how many defects per million?

1. A) 34
2. B) 3
3. C) 3 times the standard deviation
4. D) 2700
5. E) 1500

Answer:  D
Diff: 3
Key Term:  Six Sigma
AACSB:  Analytical thinking
Objective:  LO 6.3 Explain Six Sigma
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

16) A Six Sigma program has how many defects per million?

3. A) 3.4
4. B) 34
5. C) 1000
6. D) 6 times the standard deviation
7. E) 2700

Answer:  A
Diff: 3
Key Term:  Six Sigma
AACSB:  Analytical thinking
Objective:  LO 6.3 Explain Six Sigma
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

17) A hospital benchmarked against a Ferrari racing team in an effort to:

1. A) improve patient handoff quality.
2. B) increase surgery prep time.
3. C) lengthen surgery duration.
4. D) reduce the number of doctors.
5. E) all of the above

Answer:  A
Diff: 2
Key Term:  Benchmarking
Objective:  LO 6.4 Explain how benchmarking is used in TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality
18) One of Britain's largest children's hospitals working with a Ferrari racing team is an example of:

1. A) internal benchmarking.
2. B) external benchmarking.
3. C) Taguchi concepts.
4. D) employee empowerment.
5. E) corporate responsibility.

Answer:  B
Diff: 2
Key Term:  Benchmarking
AACSB:  Written and oral communication
Objective:  LO 6.4 Explain how benchmarking is used in TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

19) If 1 million passengers pass through the St. Louis Airport with checked baggage each month, a successful Six Sigma program for baggage handling would result in how many passengers with misplaced luggage?

3. A) 3.4
4. B) 6.0
5. C) 34
6. D) 2700
7. E) 6 times the monthly standard deviation of passengers

Answer:  A
Diff: 2
Key Term:  Six Sigma
AACSB:  Analytical thinking
Objective:  LO 6.3 Explain Six Sigma
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

20) Suppose that a firm has historically been achieving "Three Sigma" quality. If the firm later changes its quality management practices such that it begins to achieve "Six Sigma" quality, which of the following phenomena will result?

1. A) The average number of defects will be cut in half.
2. B) The specification limits will be moved twice as far from the mean.
3. C) The average number of defects will be cut by 99.9997%.
4. D) The average number of defects will be cut by 99.87%.
5. E) The average number of defects will be cut by 99.73%.

Answer:  D
Diff: 3
Key Term:  Six Sigma
AACSB:  Analytical thinking
Objective:  LO 6.3 Explain Six Sigma
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality
21) Total quality management emphasizes:

1. A) the responsibility of the quality control staff to identify and solve all quality-related problems.
2. B) a commitment to quality that goes beyond internal company issues to suppliers and customers.
3. C) a system where strong managers are the only decision makers.
4. D) a process where mostly statisticians get involved.
5. E) ISO 14000 certification.

Answer:  B
Diff: 2
Key Term:  Total quality management (TQM)
AACSB:  Reflective thinking
Objective:  LO 6.1 Define quality and TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality


22) A successful TQM program incorporates all EXCEPT which of the following?

1. A) continuous improvement
2. B) employee involvement
3. C) benchmarking
4. D) centralized decision-making authority
5. E) JIT

Answer:  D
Diff: 2
Key Term:  Total quality management (TQM)
Objective:  LO 6.1 Define quality and TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

23) Kaizen is a Japanese term meaning:

1. A) a foolproof mechanism.
2. B) just-in-time (JIT).
3. C) a fishbone diagram.
4. D) setting standards.
5. E) continuous improvement.

Answer:  E
Diff: 2
AACSB:  Diverse and multicultural work environments
Objective:  LO 6.1 Define quality and TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality
24) Which of the following statements regarding "Six Sigma" is TRUE?

1. A) The term has two distinct meanings–one is statistical; the other is a comprehensive quality system.
2. B) Six Sigma means that about 94 percent of a firm's output is free of defects.
3. C) The Six Sigma program was developed by Toyota in the 1970s.
4. D) The Six Sigma program is for manufacturing firms and is not applicable to services.
5. E) Six Sigma certification is granted by the International Standards Organization (ISO).

Answer:  A
Diff: 2
Key Term:  Six Sigma
Objective:  LO 6.3 Explain Six Sigma
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

25) Members of quality circles are:

1. A) paid according to their contribution to quality.
2. B) external consultants designed to provide training in the use of quality tools.
3. C) always machine operators.
4. D) all trained to be facilitators.
5. E) None of the above; all of the statements are false.

Answer:  E
Diff: 2
Key Term:  Quality circle
AACSB:  Written and oral communication
Objective:  LO 6.1 Define quality and TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality


26) Techniques for building employee empowerment include:

1. A) building communication networks that include employees.
2. B) developing open, supportive supervisors.
3. C) moving responsibility from both managers and staff to production employees.
4. D) building high-morale organizations.
5. E) All of the above are techniques for employee empowerment.

Answer:  E
Diff: 2
Key Term:  Employee empowerment
AACSB:  Written and oral communication
Objective:  LO 6.1 Define quality and TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality
27) Building high-morale organizations and building communication networks that include employees are both elements of:

1. A) ISO 9000 certification.
2. B) Six Sigma certification.
3. C) employee empowerment.
4. D) Taguchi methods.
5. E) the tools of TQM.

Answer:  C
Diff: 2
Key Term:  Employee empowerment
AACSB:  Written and oral communication
Objective:  LO 6.1 Define quality and TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

28) The process of identifying other organizations that are best at some facet of your operations and then modeling your organization after them is known as:

1. A) continuous improvement.
2. B) employee empowerment.
3. C) benchmarking.
4. D) copycatting.
5. E) patent infringement.

Answer:  C
Diff: 2
Key Term:  Benchmarking
Objective:  LO 6.4 Explain how benchmarking is used in TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality


29) Costs of dissatisfaction, repair costs, and decreased future demand are elements of cost in the:

1. A) quality loss function.
2. B) Pareto chart.
3. C) ISO 9000 quality cost calculator.
4. D) process chart.
5. E) Ishikawa diagram.

Answer:  A
Diff: 2
Key Term:  Quality loss function (QLF)
Objective:  LO 6.5 Explain quality robust products and Taguchi concepts
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality
30) What shape does the quality loss function exhibit?

1. A) quadratic
2. B) linear
3. C) S-shaped
4. D) concave
5. E) bell-curve

Answer:  A
Diff: 2
Key Term:  Quality loss function (QLF)
Objective:  LO 6.5 Explain quality robust products and Taguchi concepts
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

31) A manager tells her production employees, "It's no longer good enough that your work falls anywhere within the specification limits. I need your work to be as close to the target value as possible." Her thinking is reflective of:

1. A) internal benchmarking.
2. B) Six Sigma.
3. C) ISO 9000.
4. D) Taguchi concepts.
5. E) process control charts.

Answer:  D
Diff: 2
Key Term:  Target-oriented quality
Objective:  LO 6.5 Explain quality robust products and Taguchi concepts
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

32) ________ is the Japanese word for the ongoing process of unending improvement.
Answer:  Kaizen
Diff: 2
AACSB:  Diverse and multicultural work environments
Objective:  LO 6.1 Define quality and TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality


33) Enlarging employee jobs so that the added responsibility and authority is moved to the lowest level possible in the organization is called ________.
Answer:  employee empowerment
Diff: 2
Key Term:  Employee empowerment
Objective:  LO 6.1 Define quality and TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

34) ________ selects a demonstrated standard of performance that represents the very best performance for a process or an activity.
Answer:  Benchmarking
Diff: 2
Key Term:  Benchmarking
Objective:  LO 6.4 Explain how benchmarking is used in TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality
35) A group of employees that meet on a regular basis with a facilitator to solve work-related problems in their work area is a(n) ________.
Answer:  quality circle
Diff: 2
Key Term:  Quality circle
AACSB:  Written and oral communication
Objective:  LO 6.1 Define quality and TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

36) Identify the five steps of DMAIC.
Answer:  (1) Define the project's purpose, scope, and outputs and then identify the required process information, keeping in mind the customer's definition of quality; (2) Measure the process and collect data; (3) Analyze the data, ensuring repeatability (the results can be duplicated), and reproducibility (others get the same result); (4) Improve, by modifying or redesigning, existing processes and procedures; and (5) Control the new process to make sure performance levels are maintained.
Diff: 3
Key Term:  Six Sigma
Objective:  LO 6.3 Explain Six Sigma
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

37) What steps can be taken to develop benchmarks?
Answer:  The steps are: (1) determine what to benchmark, (2) form a benchmarking team, (3) identify benchmarking partners, (4) collect and analyze benchmarking information, and (5) take action to match or exceed the benchmark.
Diff: 3
Key Term:  Benchmarking
Objective:  LO 6.4 Explain how benchmarking is used in TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality


38) Explain how just-in-time processes relate to the quality of an organization's outputs.
Answer:  JIT reduces costs of quality by lowering waste and scrap. JIT improves quality by shortening the time between error detection and error correction. Meanwhile, better quality means less inventory and a better JIT system.
Diff: 3
Objective:  LO 6.1 Define quality and TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

39) What is the difference between conformance-oriented quality and target-oriented quality?
Answer:  With conformance-oriented quality, any unit that meets specifications is acceptable, whether it is on the edges or center of the specification range. Target-oriented quality treats output as better the closer it is to exactly what the customer wants.
Diff: 2
Key Term:  Target-oriented quality
Objective:  LO 6.5 Explain quality robust products and Taguchi concepts
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality
40) Identify the seven major concepts of TQM.
Answer:  The major concepts of total quality management are (1) continuous improvement, (2) Six Sigma, (3) employee empowerment, (4) benchmarking, (5) just-in-time (JIT), (6) Taguchi concepts, and (7) knowledge of TQM tools.
Diff: 2
Key Term:  Total quality management (TQM)
Objective:  LO 6.1 Define quality and TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

41) What is the quality loss function (QLF)?
Answer:  The quality loss function identifies all costs connected with poor quality and shows how these costs increase as the product quality moves away from being exactly what the customer wants.
Diff: 2
Key Term:  Quality loss function (QLF)
Objective:  LO 6.5 Explain quality robust products and Taguchi concepts
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

Section 4   Tools of TQM

1) Pareto charts are a graphical way of identifying the few critical items from the many less important ones.
Answer:  TRUE
Diff: 2
Key Term:  Pareto charts
AACSB:  Reflective thinking
Objective:  LO 6.6 Use the seven tools of TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality


2) A cause-and-effect diagram helps identify the sources of a problem.
Answer:  TRUE
Diff: 2
Key Term:  Cause-and-effect diagram
AACSB:  Reflective thinking
Objective:  LO 6.6 Use the seven tools of TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

3) Pareto charts are used to:

1. A) identify inspection points in a process.
2. B) outline production schedules.
3. C) organize errors, problems, or defects.
4. D) show material flow.
5. E) show the range of values of a measurement and the frequency with which each value occurs.

Answer:  C
Diff: 2
Key Term:  Pareto charts
Objective:  LO 6.6 Use the seven tools of TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality
4) The "four Ms" of cause-and-effect diagrams are:

1. A) material, machinery/equipment, manpower, and methods.
2. B) material, methods, men, and mental attitude.
3. C) named after four quality experts.
4. D) material, management, manpower, and motivation.
5. E) mentality, motivation, management, and manpower.

Answer:  A
Diff: 2
Key Term:  Cause-and-effect diagram
Objective:  LO 6.6 Use the seven tools of TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

5) Among the tools of TQM, the tool ordinarily used to aid in understanding the sequence of events through which a product travels is a:

1. A) Pareto chart.
2. B) flowchart.
3. C) check sheet.
4. D) Taguchi map.
5. E) poka-yoke.

Answer:  B
Diff: 2
Key Term:  Flowchart
Objective:  LO 6.6 Use the seven tools of TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality


6) The process improvement technique that sorts the vital few from the trivial many is:

1. A) Taguchi analysis.
2. B) Pareto analysis.
3. C) benchmarking.
4. D) Deming analysis.
5. E) Yamaguchi analysis.

Answer:  B
Diff: 2
Key Term:  Pareto charts
Objective:  LO 6.6 Use the seven tools of TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality
7) A production manager at a pottery factory has noticed that about 70 percent of defects result from impurities in raw materials, 15 percent result from human error, 10 percent from machine malfunctions, and 5 percent from a variety of other causes. This manager is most likely using:

1. A) a Pareto chart.
2. B) a scatter diagram.
3. C) a quality loss function.
4. D) a cause-and-effect diagram.
5. E) a flowchart.

Answer:  A
Diff: 2
Key Term:  Pareto charts
Objective:  LO 6.6 Use the seven tools of TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

8) A customer service manager at a retail clothing store has collected numerous customer complaints from the forms they fill out on merchandise returns. To analyze trends or patterns in these returns, she has organized these complaints into a small number of sources or factors. This is most closely related to the ________ tool of TQM.

1. A) quality loss function
2. B) cause-and-effect diagram
3. C) scatter diagram
4. D) histogram
5. E) process control chart

Answer:  B
Diff: 2
Key Term:  Cause-and-effect diagram
AACSB:  Reflective thinking
Objective:  LO 6.6 Use the seven tools of TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality


9) A fishbone chart is also known as a:

1. A) cause-and-effect diagram.
2. B) poka-yoke diagram.
3. C) Kaizen diagram.
4. D) Kanban diagram.
5. E) Taguchi diagram.

Answer:  A
Diff: 1
Key Term:  Cause-and-effect diagram
Objective:  LO 6.6 Use the seven tools of TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality
10) If a sample of parts is measured and the mean of the measurements is outside the control limits, the process is:

1. A) in control, but not capable of producing within the established control limits.
2. B) out of control and the process should be investigated for assignable variation.
3. C) within the established control limits with only natural causes of variation.
4. D) monitored closely to see if the next sample mean will also fall outside the control limits.
5. E) none of the above.

Answer:  B
Diff: 2
Key Term:  Control charts
Objective:  LO 6.6 Use the seven tools of TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

11) A quality circle holds a brainstorming session and attempts to identify the factors responsible for flaws in a product. Which tool do you suggest they use to organize their findings?

1. A) Ishikawa diagram
2. B) Pareto chart
3. C) flowchart
4. D) control charts
5. E) activity chart

Answer:  A
Diff: 2
Key Term:  Closed-loop supply chains
AACSB:  Written and oral communication
Objective:  LO 6.6 Use the seven tools of TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

12) When sample measurements falls inside the control limits, it means that:

1. A) each unit manufactured is good enough to sell.
2. B) the process limits cannot be determined statistically.
3. C) the process output exceeds the requirements.
4. D) if there is no other pattern in the samples, the process is in control.
5. E) the process output does not fulfill the requirements.

Answer:  D
Diff: 2
Key Term:  Control charts
Objective:  LO 6.6 Use the seven tools of TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

13) Which of the following is FALSE regarding control charts?

1. A) Values above the upper control limits imply that the product's quality is exceeding expectations.
2. B) Control charts are built so that new data can be quickly compared to past performance data.
3. C) Control charts graphically present data.
4. D) Control charts plot data over time.
5. E) None of the above is false.

Answer:  A
Diff: 2
Key Term:  Control charts
Objective:  LO 6.6 Use the seven tools of TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

14) ________ diagrams use a schematic technique to discover possible locations of quality problems.
Answer:  Cause-and-effect, or Fishbone or Ishikawa
Diff: 2
Key Term:  Cause-and-effect diagram
Objective:  LO 6.6 Use the seven tools of TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

15) ________ are graphical presentations of data over time that show upper and lower control limits for processes we want to control.
Answer:  Control charts
Diff: 2
Key Term:  Control charts
Objective:  LO 6.6 Use the seven tools of TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

16) Explain how a Pareto chart can identify the most important causes of errors in a process.
Answer:  There will generally be some causes with much higher frequencies than others. The frequency plot will clearly show which cause has the highest frequency.
Diff: 2
Key Term:  Pareto charts
Objective:  LO 6.6 Use the seven tools of TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

17) Management is concerned that workers create more product defects at the very beginning and end of a work shift than at other times of their eight-hour workday. Construct a scatter diagram with the following data collected last week. Is management justified in its belief?

	Number of Defects
	Monday	Tuesday	Wednesday	Thursday	Friday
First hour at work	12	9	6	8	7
Second hour at work	6	5	3	4	5
Third hour at work	5	2	4	3	3
Fourth hour at work	4	0	5	2	3
Fifth hour at work	1	6	2	4	5
Sixth hour at work	4	3	3	2	1
Seventh hour at work	7	4	4	6	3
Eighth hour at work	5	7	8	5	9

Answer:  Solution:



There is fairly convincing evidence that there are more defects in the first and last shift hours than at other times.
Diff: 2
AACSB:  Analytical thinking
Objective:  LO 6.6 Use the seven tools of TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

18) Perform a Pareto analysis on the following information:

Reason for unsatisfying stay at hotel	Frequency
Unfriendly staff	6
Room not clean	2
Room not ready at check-in	3
No towels at pool	33
No blanket for pull-out sofa	4
Pool water too cold	3
Breakfast of poor quality	16
Elevator too slow or not working	23
Took too long to register	7
Bill incorrect	3
Total	100

Answer:  Solution

Diff: 2
Key Term:  Pareto charts
AACSB:  Analytical thinking
Objective:  LO 6.6 Use the seven tools of TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

19) Perform a Pareto analysis on the following information:

Reason for unsatisfying check-out at store	Frequency
Unfriendly cashier	27
Incorrect change	4
Cashier too slow	9
Price check	34
Poorly bagged merchandise	2
Slow receiving check approval	3

Answer:  Solution

Diff: 2
Key Term:  Pareto charts
AACSB:  Analytical thinking
Objective:  LO 6.6 Use the seven tools of TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

20) Construct a cause-and-effect diagram showing why a student might be dissatisfied with the cafeteria.
Answer:  Solution: (Note that answers may vary considerably


Diff: 2
Key Term:  Cause-and-effect diagram
AACSB:  Analytical thinking
Objective:  LO 6.6 Use the seven tools of TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

21) Pretend that you have just come from a relative's wedding reception. It didn't turn out as well as it should have, and the bride's parents are pretty mad at how things turned out. Use the supplied template to construct a conventional cause-and-effect diagram. Identify twelve sources of defects for the issue "dissatisfied customer of wedding reception caterer." (Your dozen need not be exactly three per main cause, but should be a balanced treatment.) Categorize each cause onto a main cause. Provide brief support for each of your choices.


Answer:  Solution: Individual responses may vary considerably; some of the variation in responses comes from differing views of what is the caterer's realm of responsibility, compared to what might be assigned to a wedding planner instead. Material: not enough plates, glassware, utensils; prepared wrong dish; food was cold; ran out of food; food was "bad." Machinery: air conditioning/heating was broken; room was dirty; room too small; furniture poorly arranged; wedding "props" ugly or shopworn. Method: not on time; overcharged; not enough workers. Manpower: wait staff not properly attired; wait staff not speedy; wait staff not courteous. Responses should comment as necessary to show why a fault lies on a certain main branch; as an example, "cold food" might be interpreted as Method, not Material.
Diff: 3
Key Term:  Cause-and-effect diagram
AACSB:  Analytical thinking
Objective:  LO 6.6 Use the seven tools of TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

22) A refrigeration and heating company–one that installs and repairs home central air and heating systems–has asked your advice on how to analyze their service quality. They have logged customer complaints. Here's a recent sampling. Use the supplied template to construct a conventional cause-and-effect diagram. Place each of the complaints onto a main cause; justify your choice with a brief comment as necessary. 1. "I was overcharged–your labor rates are too high." 2. "The repairman left trash where he was working." 3. "You weren't here when you said you would be. You should call when you must be late." 4. "Your repairman smoked in my house."5. "The part you installed is not as good as the factory original." 6. "Your repairman was here for over two hours, but he wasn't taking his work seriously."7. "You didn't tighten some of the fittings properly–the system's leaking." 8. "Your estimate of repair costs was WAY off." 9. "I called you to do an annual inspection, but you've done more–work that I didn't authorize."10. "Your mechanic is just changing parts–he doesn't have a clue what's really wrong." 11. "Your bill has only a total–I wanted to see detail billing." 12. "Your testing equipment isn't very new–are you sure you've diagnosed the problem?"13. "One of the workmen tracked mud into my living room."


Answer:  Solution: Individual responses may vary. A typical set of responses might be Material: item 5. Method: items 1, 3, 8, 9, 11. Machinery: item 12; Manpower: items 2, 4, 6, 7, 10, 13. Items 7, 8, and 11 could be manpower or method.
Diff: 2
Key Term:  Cause-and-effect diagram
AACSB:  Analytical thinking
Objective:  LO 6.6 Use the seven tools of TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

23) Construct a cause-and-effect diagram for why students arrive to class late. Include at least three reasons for each of the Ms.


Answer:  Student responses should look like the above, with the 4 Ms of Manpower, Machinery, Method, and Material listed. Possible responses include: Manpower- not conditioned to waking up early, I can't wake up at the same time every day, I stay up late the night before sometimes. Machinery- Car failure, Alarm clock reset from power outage, alarm clock turned off by roommate. Method- forgot to set alarm clock, incorrect alarm clock setting (AM vs PM), I could not find the classroom. Material- (these responses can be overlapped with machine answers to some degree) I wore flip flops so I could not walk fast, I could not find a sweater and did not want to go out in the cold, I lacked the proper materials for walking in the snow/ice.
Diff: 3
Key Term:  Cause-and-effect diagram
AACSB:  Analytical thinking
Objective:  LO 6.6 Use the seven tools of TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

24) A professor teaches two sections of a class, one on MWF for 50 minutes per day and another on T/TH for 75 minutes per day. Use the following information to construct a scatter diagram with test # on the x-axis and score on the y-axis. Should the professor argue for a change in the university's scheduling?

MWF Section Test Results                    Test #                       T/Th Test Results
75                                                                   1                                         82
70                                                                   2                                         77
65                                                                   3                                         73
65                                                                   4                                         70
70                                                                   5                                         76

Answer:

It appears that the T/TH section consistently scores higher than the MWF section. Perhaps the instructor should ask for MWF to be changed to MW with longer sessions, although the sample size is small.
Diff: 2
AACSB:  Analytical thinking
Objective:  LO 6.6 Use the seven tools of TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

25) Create a Pareto chart for the following mistakes made in grading an exam.

Cause	Frequency
Incorrect Sum	35
Question marked wrong was right	3
Question marked right was wrong	4
Partial Credit not consistent	58

Answer:

Diff: 2
Key Term:  Pareto charts
AACSB:  Analytical thinking
Objective:  LO 6.6 Use the seven tools of TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

26) Construct a cause-and-effect chart for a missed field goal late in a football game with at least three aspects for each M.
Answer:  Responses should include the 4 Ms of Manpower, Material, Machine, and Method.
Student responses should fill out a diagram similar to the following.



Possible responses include Manpower- nervous mindset, inconsistent offensive line blocking, lack of practice; Material(football)- ball was wet/slippery, ball was too worn/not worn in, ball was over/under inflated; Machine (turf and field goal uprights)- uprights were slanted, uprights were too far away from the field (not positioned correctly), turf was wet/muddy, grass type was not correct; Method- ball kicked too far to left or right, not kicked hard enough, kicker slipped on the kick, kicker did not hit the ball at the correct point, kicker aimed incorrectly. Other responses are acceptable as long as they mesh with their associated M.
Diff: 3
Key Term:  Cause-and-effect diagram
AACSB:  Analytical thinking
Objective:  LO 6.6 Use the seven tools of TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

27) A pizza delivery company wants to improve its response time to gain a competitive advantage. Create a flowchart with 8 unique events from the time the customer calls in to the time the pizza is delivered.
Answer:  Student responses will vary but should follow a similar pattern. The flowchart will likely be in a single line, however any pattern is fine so long as the boxes are sequential connected with directional arrows.

Diff: 2
Key Term:  Flowchart
AACSB:  Analytical thinking
Objective:  LO 6.6 Use the seven tools of TQM
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

Section 5   The Role of Inspection

1) The Japanese use the term poka-yoke to refer to continuous improvement.
Answer:  FALSE
Diff: 2
Key Term:  Poka-yoke
AACSB:  Diverse and multicultural work environments
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

2) Source inspection is inferior to inspection before costly operations.
Answer:  FALSE
Diff: 2
Key Term:  Source inspection
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality
3) A checklist is a type of poka-yoke to help ensure consistency and completeness in carrying out a task.
Answer:  TRUE
Diff: 2
Key Term:  Checklist
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

4) The goal of inspection is to:

1. A) detect a bad process immediately.
2. B) add value to a product or service.
3. C) correct deficiencies in products.
4. D) correct system deficiencies.
5. E) all of the above

Answer:  A
Diff: 2
Key Term:  Inspection
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

5) Which of the following is not a typical inspection point?

1. A) upon receipt of goods from your supplier
2. B) when production or service is complete
3. C) before the product is shipped to the customer
4. D) at the supplier's plant while the supplier is producing
5. E) after a costly process

Answer:  E
Diff: 2
Key Term:  Inspection
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

6) A good description of source inspection is inspecting:

1. A) materials upon delivery by the supplier.
2. B) the goods at the production facility before they reach the customer.
3. C) the design specifications.
4. D) goods at the supplier's plant.
5. E) one's own work.

Answer:  E
Diff: 2
Key Term:  Source inspection
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality
7) Poka-yoke is the Japanese term for:

1. A) card.
2. B) foolproof.
3. C) continuous improvement.
4. D) fishbone diagram.
5. E) just-in-time production.

Answer:  B
Diff: 2
Key Term:  Poka-yoke
AACSB:  Diverse and multicultural work environments
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality


8) In his book, Safe Patients, Smart Hospitals, Dr. Peter Pronovost emphasizes the use of what tool to reduce catheter infections?

1. A) a Pareto chart
2. B) a flowchart
3. C) a cause-and-effect diagram
4. D) a checklist
5. E) a statistical process control chart

Answer:  D
Diff: 3
Key Term:  Checklist
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

9) A checklist is a type of:

1. A) poka-yoke.
2. B) kaizen.
3. C) kanban.
4. D) Pareto chart
5. E) flowchart

Answer:  A
Diff: 2
Key Term:  Checklist
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

10) ________ is doing the job properly with the operator ensuring that this is so.
Answer:  Source inspection
Diff: 2
Key Term:  Source inspection
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

11) A(n) ________ is a type of poka-yoke that lists the steps needed to ensure consistency and completeness in a task.
Answer:  checklist
Diff: 2
Key Term:  Checklist
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality
12) How is source inspection related to employee empowerment?
Answer:  Source inspection involves the operator ensuring that the job is done properly. These operators are empowered to self-check their own work. Employees that deal with a system on a daily basis have a better understanding of the system than anyone else, and they can be very effective at improving the system.
Diff: 2
Key Term:  Source inspection
AACSB:  Reflective thinking
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality


13) What is a poka-yoke? Give an example.
Answer:  Literally translated "foolproof," a poka-yoke is a foolproof device or technique that ensures production of good units every time. Examples will vary, but include McDonald's french fry scoop and standard sized bags used to ensure the correct quantity, and prepackaged surgical coverings that contain exactly the items needed for a medical procedure.
Diff: 2
Key Term:  Poka-yoke
AACSB:  Diverse and multicultural work environments
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

Section 6   TQM in Services

1) Security is the determinant of service quality that means freedom from danger, risk, or doubt.
Answer:  TRUE
Diff: 2
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

2) Of the several determinants of service quality, access is the one that relates to keeping customers informed in language they can understand.
Answer:  FALSE
Diff: 2
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

3) What refers to training and empowering frontline workers to solve a problem immediately?

1. A) just-in-time
2. B) poka-yoke
3. C) benchmarking
4. D) kaizen
5. E) service recovery

Answer:  E
Diff: 2
Key Term:  Service recovery
AACSB:  Written and oral communication
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality
4) A recent consumer survey conducted for a car dealership indicates that, when buying a car, customers are primarily concerned with the salesperson's ability to explain the car's features, the salesperson's friendliness, and the dealer's honesty. The dealership should be ESPECIALLY concerned with which determinants of service quality?

1. A) communication, courtesy, and credibility
2. B) competence, courtesy, and security
3. C) competence, responsiveness, and reliability
4. D) communication, responsiveness, and reliability
5. E) understanding/knowing customer, responsiveness, and reliability

Answer:  A
Diff: 2
AACSB:  Written and oral communication
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality


5) Marketing issues such as advertising, image, and promotion are important to quality because:

1. A) they define for consumers the tangible elements of a service.
2. B) the intangible attributes of a product (including any accompanying service) may not be defined by the consumer.
3. C) they educate consumers on how to use the product.
4. D) they make the product seem more valuable than it really is.
5. E) they raise expenses and therefore decrease profitability.

Answer:  B
Diff: 2
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

6) Which of the determinants of service quality involves having the customer's best interests at heart?

1. A) access
2. B) courtesy
3. C) credibility
4. D) responsiveness
5. E) tangibles

Answer:  C
Diff: 2
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

7) Which of the determinants of service quality involves performing the service right the first time?

1. A) access
2. B) courtesy
3. C) credibility
4. D) reliability
5. E) responsiveness

Answer:  D
Diff: 2
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality
8) What is a popular measurement scale for service quality that compares service expectations with service performance?

1. A) COQ
2. B) SPC
3. C) KAIZEN
4. D) SERVQUAL
5. E) TQM

Answer:  D
Diff: 1
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

9) Identify the ten determinants of service quality. Describe two of them in a sentence or two each.
Answer:  The ten are reliability, responsiveness, competence, access, courtesy, communication, credibility, security, understanding/knowing the customer, and tangibles. Descriptions are found in Table 6.5. Here are two examples: Access involves approachability and ease of contact. Security is the freedom from danger, risk, or doubt.
Diff: 3
Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

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OPERATIONS MANAGEMENT - 2017 - COLLECTION

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EBOOKS

Operations Management, 2015, 12th Edition, William J. Stevenson - Free Download Link
Operations Management, Sustainability and Supply Chain Management, 11th Edition, 2014, Jay Heizer, Barry Render - Free Download Link

Operations Management: Sustainability and Supply Chain Management, 12th Edition, Jay Heizer, Barry Render, Chuck Munson, 2017
Principles of Operations Management: Sustainability and Supply Chain Management, 10th Edition, 2017
Operations Research: An Introduction, 10th Edition, Hamdy A. Taha, 2017
Introduction to Operations and Supply Chain Management, 4th Edition, Cecil B. Bozarth, Robert B. Handfield, 2016 
Operations Management: Processes and Supply Chains, 11th Edition, Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman, 2016

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1. Operations Management: Sustainability and SCM, 12th Edition, Jay Heizer, 2017

2. Operations Management, Sustainability and SCM, 11th Ed, 2014, Jay Heizer

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3. Principles of Operations Management: Sustainability and SCM, 10th Ed, Jay Heizer, 2017

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4. Operations Management, 2017, 12th Edition, William J. Stevenson

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5. Operations Management: Processes and Supply Chains, 11th Edition, Lee J. Krajewski, 2016

6. Operations Research: An Introduction, 10th Edition, Hamdy A. Taha, 2017
7. Introduction to Operations and SCM, 4th Edition, Cecil B. Bozarth, Robert B. Handfield, 2016 

8. Hotel Operations Management, 3rd Edition, David K. Hayes, 2017Ebooks – Free Download Links

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