Download as pdf or txt
Download as pdf or txt
You are on page 1of 28

Operations Management 13th Edition

Stevenson Test Bank


Visit to download the full and correct content document: https://testbankdeal.com/dow
nload/operations-management-13th-edition-stevenson-test-bank/
Chapter 09 Test Bank – Static
1. Broadly defined, quality refers to the ability of a product or service to occasionally meet or exceed customer expectations.

FALSE

Quality refers to consistently meeting or exceeding customer expectations.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 09-02 Define the term quality as it relates to products and as it relates to services.
Topic: Management of Quality

2. An organization achieves quality by consistently meeting its competitors' standards.

FALSE

An organization achieves quality by meeting or exceeding customer expectations.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 09-02 Define the term quality as it relates to products and as it relates to services.
Topic: Management of Quality

3. Because courtesy is subjective, it cannot be considered a factor in service quality.

FALSE

Many dimensions of quality are subjective.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 09-02 Define the term quality as it relates to products and as it relates to services.
Topic: Insights on Quality Management

4. ISO 9000 standards stress continual improvement regardless of how good you currently are.

TRUE

ISO 9000 guidelines stress continual improvement.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 09-08 Discuss quality certification and its importance.
Topic: Quality Certification
5. The dimensions of quality are important for products but are not applicable in service organizations.

FALSE

Dimensions of quality are important for both products and services, although the dimensions used for services are somewhat different
from those used for products.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 09-02 Define the term quality as it relates to products and as it relates to services.
Topic: Insights on Quality Management

6. Regardless of superior quality, consumers will not pay premium prices.

FALSE

Customers will often pay premium prices for superior quality.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 09-04 Explain why quality is important and the consequences of poor quality.
Topic: Insights on Quality Management

7. High performance and low prices are both considered to be dimensions of quality.

FALSE

Price is not considered a dimension of quality.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 09-02 Define the term quality as it relates to products and as it relates to services.
Topic: Insights on Quality Management

8. The Baldrige award can only be won by manufacturing organizations.

FALSE

The Baldrige Award is awarded to organizations in multiple categories including service, health care, and education.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 09-07 Compare the quality awards.
Topic: Quality Awards

9. Quality of conformance refers to the degree to which goods and services conform to the intent of the designers as documented in the
specifications.

TRUE

High conformance to designer intent leads to high quality of conformance.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 09-03 Identify the determinants of quality.
Topic: Insights on Quality Management
10. Quality of design refers to the intention of the designers to include or exclude certain features in a product or service based on
marketing and other information.

TRUE

Quality of design involves taking into account customer wants, production or service capability, safety, costs, and other similar
considerations.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 09-03 Identify the determinants of quality.
Topic: Insights on Quality Management

11. In market research, a group of consumers organized by marketing to express their opinions about a product or service is called a
steering committee.

FALSE

This would be called a focus group.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 09-03 Identify the determinants of quality.
Topic: Insights on Quality Management

12. Business organizations that achieve good quality benefit in a variety of ways, including a positive reputation for quality, increased
customer loyalty, and lower production costs.

TRUE

Good quality conveys a wide variety of benefits.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 09-04 Explain why quality is important and the consequences of poor quality.
Topic: Insights on Quality Management

13. User instructions and follow-up services after delivery are important elements of overall product or service quality.

TRUE

The determination of quality does not stop once the product or service has been sold or delivered. Overall product or service quality
includes user instructions and follow-up services.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 09-03 Identify the determinants of quality.
Topic: Insights on Quality Management
14. Reducing the variability in our product or service is an important key to quality.

TRUE

Variability reduction is a key means by which quality can be improved.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 09-03 Identify the determinants of quality.
Topic: Insights on Quality Management

15. The dimensions of product and service quality are too abstract to be used as parameters for product or service design.

TRUE

To be useful operationally, the dimensions must be stated in terms of specific, measureable characteristics.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 3 Hard
Learning Objective: 09-02 Define the term quality as it relates to products and as it relates to services.
Topic: Insights on Quality Management

16. The degree to which a product or service satisfies its intended purpose is determined by design, conformance to design, cost, and
reputation of the producer.

FALSE

Neither cost nor reputation is among the four primary determinants of quality.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 09-03 Identify the determinants of quality.
Topic: Insights on Quality Management

17. The degree to which a product or service satisfies its intended purpose is determined by service after delivery, ease of use, design,
and conformance to design.

TRUE

These are determinants of quality.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 09-03 Identify the determinants of quality.
Topic: Insights on Quality Management

18. Medical malpractice claims are an example of how poor quality can affect an organization through liability.

TRUE

Poor quality can have serious financial effects.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 09-04 Explain why quality is important and the consequences of poor quality.
Topic: Insights on Quality Management
19. Convenience, reliability, and assurance are dimensions of service quality.

TRUE

These are dimensions of service quality.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 09-02 Define the term quality as it relates to products and as it relates to services.
Topic: Insights on Quality Management

20. Poor quality has a positive effect on productivity because it usually takes longer to produce a good part.

FALSE

Poor quality has a negative effect on productivity as defective parts need reworked or scrapped.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 09-04 Explain why quality is important and the consequences of poor quality.
Topic: Insights on Quality Management

21. If the majority of service customers are satisfied, it is likely that all service customers will be satisfied.

FALSE

Different customers tend to have different expectations.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 09-02 Define the term quality as it relates to products and as it relates to services.
Topic: Insights on Quality Management

22. The primary difference between internal failures and external failures is time and place of discovery of the failure.

TRUE

When the failure is discovered typically determines whether it is an internal or an external failure. Failures discovered before delivery
to the customer are internal failures, while those discovered after delivery to the customer are external failures.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 09-05 Describe and give examples of the costs associated with quality.
Topic: Insights on Quality Management

23. Customer expectations tend to change over time, affecting their perception of service quality.

TRUE

Customer expectations do change over time.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 09-02 Define the term quality as it relates to products and as it relates to services.
Topic: Insights on Quality Management
24. Cost of inspectors, testing, test equipment, and labs are examples of prevention costs.

FALSE

These are appraisal costs.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 09-05 Describe and give examples of the costs associated with quality.
Topic: Insights on Quality Management

25. Cost of inspectors, testing, test equipment, and labs are examples of appraisal costs.

TRUE

These are appraisal costs.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 09-05 Describe and give examples of the costs associated with quality.
Topic: Insights on Quality Management

26. Modern quality management emphasizes finding and correcting mistakes before they reach the customer—catching the errors
before they are shipped.

FALSE

Modern quality management emphasizes preventing mistakes before they ever happen.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 09-09 Describe TQM.
Topic: The Evolution of Quality Management

27. Deming stresses that workers are primarily responsible for poor quality because very often they fail to follow instructions.

FALSE

Deming stressed that systems rather than workers were primarily responsible for poor quality.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 09-01 Discuss the philosophies of quality gurus.
Topic: The Foundations of Modern Quality Management: The Gurus

28. According to Deming, it is the systems that management puts into place that are primarily responsible for poor quality, not
employees.

TRUE

Deming focused on systems as determinants of quality.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 09-01 Discuss the philosophies of quality gurus.
Topic: The Foundations of Modern Quality Management: The Gurus
29. Juran describes quality management as a trilogy that consists of quality planning, quality control, and quality improvement.

TRUE

Juran focused on planning, control, and improvement.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 09-01 Discuss the philosophies of quality gurus.
Topic: The Foundations of Modern Quality Management: The Gurus

30. Juran describes quality management as a trilogy that consists of quality planning, control of quality costs, and quality
improvement.

FALSE

Juran focused on quality planning, quality control, and quality improvement.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 3 Hard
Learning Objective: 09-01 Discuss the philosophies of quality gurus.
Topic: The Foundations of Modern Quality Management: The Gurus

31. Quality at the source means returning all defects to the source—our vendors.

FALSE

Quality at the source refers to making each worker responsible for the quality of his or her own work.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 09-09 Describe TQM.
Topic: Total Quality Management

32. Six Sigma programs have both management and technical components.

TRUE

Both management and technical components are part of Six Sigma programs.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 09-12 Describe the six sigma methodology.
Topic: Problem Solving and Process Improvement

33. Crosby's concept of "quality is free" means that it is less expensive to do it right initially than to do it over.

TRUE

Crosby believes quality pays for itself.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 09-01 Discuss the philosophies of quality gurus.
Topic: The Foundations of Modern Quality Management: The Gurus
34. Quality certification refers to a process of 100 percent inspection to catch all defective products before they leave the company;
this allows every item to be certified defect free.

FALSE

Quality certification refers to the process of certifying that quality processes are in place.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 09-08 Discuss quality certification and its importance.
Topic: Quality Certification

35. The customer is the focal point and customer satisfaction is the driving force in quality management.

TRUE

The customer and his or her satisfaction are central to quality management.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 09-02 Define the term quality as it relates to products and as it relates to services.
Topic: Insights on Quality Management

36. When considering service quality, convenience often is a major factor.

TRUE

Convenience is often a major dimension of service quality.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 09-02 Define the term quality as it relates to products and as it relates to services.
Topic: Insights on Quality Management

37. Serviceability, conformance, and reliability are dimensions of product quality.

TRUE

These are common dimensions of product quality.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 09-02 Define the term quality as it relates to products and as it relates to services.
Topic: Insights on Quality Management

38. Firms that wish to do business with the European Community can benefit from having a quality management system that meets
ISO 9000 standards.

TRUE

ISO 9000 certification is critical for doing business in Europe.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 09-08 Discuss quality certification and its importance.
Topic: Quality Certification
39. Continuous improvement focuses on achieving major breakthroughs in product or service quality.

FALSE

Continuous improvement makes ongoing incremental improvements in product or service quality.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 09-09 Describe TQM.
Topic: Total Quality Management

40. So long as quality input resources are used to make a product, we can expect quality output from the process.

FALSE

Quality inputs help with quality, but they do not guarantee it. The process itself must also be designed and operated to produce quality
output.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 09-09 Describe TQM.
Topic: Total Quality Management

41. Three key philosophies in TQM are continuous improvement, involvement of everyone in the organization, and customer
satisfaction.

TRUE

These are the three key philosophies.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 09-09 Describe TQM.
Topic: Total Quality Management

42. Suppliers are not included in quality assurance and quality improvement efforts in TQM; they should worry about their own
problems.

FALSE

Suppliers are critical in TQM as they must have processes in place to deliver quality inputs to our process.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 09-09 Describe TQM.
Topic: Total Quality Management
43. Companies that strive for zero defects in the products they deliver to their customers must perform 100 percent inspection of the
final product.

FALSE

Approaching zero defects can be achieved through preventive measures and quality at the source more effectively than through 100
percent inspection of the final product.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 09-09 Describe TQM.
Topic: Total Quality Management

44. The PDSA cycle forms the conceptual basis for continuous improvement.

TRUE

It reflects some of the primary ideas behind continuous improvement.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 09-10 Give an overview of problem solving.
Topic: Problem Solving and Process Improvement

45. A control chart is a visual representation of the steps in a process.

FALSE

A control chart is a visual representation of time-ordered values of a sample statistic used to monitor a process. A visual representation
of the steps in a process is a flow chart.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 09-13 Describe and use various quality tools.
Topic: Quality Tools

46. The purpose of benchmarking is to establish a standard against which the organization's performance can be judged and to identify
a model for possible improvement.

TRUE

Benchmarking is used to establish a standard against which performance can be judged.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 09-13 Describe and use various quality tools.
Topic: Quality Tools
47. TQM expands the traditional view of quality beyond looking only at the quality of the final product or service to looking at the
quality of every aspect of the process.

TRUE

TQM focuses on what leads to the outcome rather than the outcome itself.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 09-09 Describe TQM.
Topic: Total Quality Management

48. Your benchmark organization must be chosen from your industry in order for its methods to be applicable to your business.

FALSE

The benchmarked organization should be best in class, regardless of industry.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 09-13 Describe and use various quality tools.
Topic: Quality Tools

49. A quality circle is a management team focused on implementing major changes to improve quality.

FALSE

Quality circles are groups of workers who meet to discuss ways of improving products or processes, but have very little authority to
implement any but minor changes.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 09-13 Describe and use various quality tools.
Topic: Quality Tools

50. Total quality management attempts to involve everyone in an organization in the effort to achieve quality.

TRUE

TQM is an organization-wide initiative.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 09-09 Describe TQM.
Topic: Total Quality Management

51. There is a positive link between quality and productivity.

TRUE

Higher quality leads to higher productivity.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 09-04 Explain why quality is important and the consequences of poor quality.
Topic: Insights on Quality Management
52. The expression "quality at the source" refers primarily to the practice of requiring each of our vendors to provide quality parts and
materials.

FALSE

Quality at the source refers to each worker being responsible for the quality of his or her work.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 09-09 Describe TQM.
Topic: Total Quality Management

53. ISO standards aid in transferring technology to developing countries.

TRUE

ISO standards facilitate the transfer of technology to developing countries.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 3 Hard
Learning Objective: 09-08 Discuss quality certification and its importance.
Topic: Quality Certification

54. In addition to correcting substandard work, employees have an ethical obligation to __________ the quality problem as well.

A. prevent
B. offset
C. report
D. standardize
E. redesign

Employees have an ethical obligation to make known, in a timely manner, quality problems.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 09-06 Discuss the importance of ethics in managing quality.
Topic: Insights on Quality Management

55. When an organization comes to the realization that there are quality problems in products that are already in service, ethical
approaches include:

(I) divulging the information to the public at large.


(II) recalling, if possible, affected products.
(III) handling complaints on an individual rather than a systemic basis.

A. I and III
B. I and II
C. II and III
D. I, II, and III
E. Neither I, II, nor III

Dealing with complaints on an individual basis would be a shirking of the organization's ethical responsibilities.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 09-06 Discuss the importance of ethics in managing quality.
Topic: Insights on Quality Management
56. The quality certification that deals primarily with conformance to customer requirements is ISO __________; ISO __________ is
concerned primarily with the organization's effect on the environment.

A. 9000; 14000
B. 24700; 9000
C. 14000; 9000
D. 9000; 24700
E. 14000; 24700

ISO 9000 is concerned with what an organization does to ensure that its products or services conform to its customers' requirements.
ISO 14000 concerns what an organization does to minimize harmful effects to the environment caused by its operations.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 09-08 Discuss quality certification and its importance.
Topic: Quality Certification

57. ISO certification is similar to the Baldrige Award in its emphasis on:

A. statistical tools.
B. self-appraisal.
C. teamwork.
D. outsourcing.
E. services.

Similar to the Baldrige Award, the ISO review process involves considerable self-appraisal.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 09-08 Discuss quality certification and its importance.
Topic: Quality Certification

58. ISO certification differs substantially from the Baldrige Award in that it:

A. focuses primarily on quality teams.


B. emphasizes self-appraisal.
C. is an ongoing process.
D. is customer-driven.
E. is national rather than international.

Unlike the Baldrige Award, ISO registered companies face an ongoing series of audits, and they must be reregistered every three
years.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 09-08 Discuss quality certification and its importance.
Topic: Quality Certification
59. Six sigma programs involve both __________ and __________ components.

A. probabilistic; deterministic
B. logistical; managerial
C. statistical; probabilistic
D. managerial; technical
E. local; global

There are management and technical components of six-sigma programs.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 09-12 Describe the six sigma methodology.
Topic: Problem Solving and Process Improvement

60. The "Control" phase of DMAIC is intended to ensure that:

A. the proper subset of process inputs are monitored.


B. variability reduction is pursued.
C. data analysis is overseen.
D. inputs are closely monitored.
E. improvements are sustained.

In DMAIC, control involves establishing plans and procedures to ensure that improvements are sustained.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 09-12 Describe the six sigma methodology.
Topic: Problem Solving and Process Improvement

61. Among the guiding principles of six sigma are:

(I) Reduction of variation is an important goal.


(II) Valid measurement is critical.
(III) Outputs determine inputs.
(IV) We should focus on those critical few influences on our quality.

A. I, II, and IV only


B. II and IV only
C. I and III only
D. I, II, III, and IV
E. III only

Six sigma is based on these guiding principles: (1) Reduction of variation is an important goal; (2) valid measurements are absolutely
necessary; (3) outputs are determined by inputs; and (4) only a critical few inputs have a significant impact on outputs.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 09-12 Describe the six sigma methodology.
Topic: Problem Solving and Process Improvement
62. A tool that is not used for quality management is a:

A. flowchart.
B. histogram.
C. Pareto analysis.
D. redesign.
E. check sheet.

Redesigns aren't part of quality management.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 09-13 Describe and use various quality tools.
Topic: Quality Tools

63. A tool that uses time-ordered values of a sample statistic to help detect the presence of correctable causes of variation in a process
is a(n):

A. affinity diagram.
B. checklist.
C. control chart.
D. flowchart.
E. relationship diagram.

Control charts depict process variation.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 09-13 Describe and use various quality tools.
Topic: Quality Tools

64. Which is not a cost of quality?

A. prevention cost
B. external failure costs
C. extended service contract costs
D. internal failure costs
E. appraisal costs

The costs of quality can be classified as prevention, appraisal, and failure (both internal and external). Extended service contracts are
not quality costs.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 3 Hard
Learning Objective: 09-05 Describe and give examples of the costs associated with quality.
Topic: Insights on Quality Management
65. The Deming Prize was established by the:

A. American Statistical Association.


B. Union of Japanese Scientists.
C. North American Free Trade Association.
D. American Quality Society.
E. World Trade Organization.

The Deming Prize is a prominent Japanese quality award.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 09-01 Discuss the philosophies of quality gurus.
Topic: The Foundations of Modern Quality Management: The Gurus

66. Lost production time, scrap, and rework are examples of:

A. internal failure costs.


B. external failure costs.
C. appraisal costs.
D. prevention costs.
E. replacement costs.

These are internal failure costs.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 09-05 Describe and give examples of the costs associated with quality.
Topic: Insights on Quality Management

67. Warranty service, processing of complaints, and costs of litigation are examples of:

A. internal failure costs.


B. external failure costs.
C. appraisal costs.
D. prevention costs.
E. replacement costs.

These are external failure costs.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 09-05 Describe and give examples of the costs associated with quality.
Topic: Insights on Quality Management

68. Costs of inspectors, testing, test equipment, and labs are examples of:

A. internal failure costs.


B. external failure costs.
C. appraisal costs.
D. prevention costs.
E. replacement costs.

These are appraisal costs.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 09-05 Describe and give examples of the costs associated with quality.
Topic: Insights on Quality Management
69. Loss of business, increased liability, decreased productivity, and higher costs are all likely consequences of:

A. labor unions.
B. globalization.
C. poor quality.
D. robotics.
E. micro-factories.

Poor quality tends to have adverse effects on all these areas.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 09-04 Explain why quality is important and the consequences of poor quality.
Topic: Insights on Quality Management

70. Quality planning and administration, quality training, and quality control procedures are examples of:

A. internal failure costs.


B. external failure costs.
C. appraisal costs.
D. prevention costs.
E. replacement costs.

These are prevention costs.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 09-05 Describe and give examples of the costs associated with quality.
Topic: Insights on Quality Management

71. The Baldrige Award aims to:

(I) publicize successful quality programs.


(II) recognize quality achievements of U.S. companies.
(III) stimulate efforts to improve quality.
(IV) distribute the grant money available for improved quality.

A. I and IV only
B. I and II only
C. II and III only
D. I, II, III, and IV
E. I, II, and III only

The purpose of the Baldrige Award competition is to stimulate efforts to improve quality, to recognize quality achievements of U.S.
companies, and to publicize successful programs.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 09-07 Compare the quality awards.
Topic: Quality Awards
72. Fixing a problem will often cost money; to minimize these costs it is best to find and fix the problem:

A. just before shipping our product to the customer.


B. immediately after we complete the last operation.
C. during the design phase.
D. just before we begin the first production operation.
E. Regardless of when you fix the problem, costs are about the same.

Fixing a problem during the design phase prevents a failure from ever occurring. The earlier a problem is identified in the process, the
cheaper the cost to fix it. The cost to fix a problem at the customer end has been estimated at about five times the cost to fix a problem
at the design or production stages.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 3 Hard
Learning Objective: 09-04 Explain why quality is important and the consequences of poor quality.
Topic: Insights on Quality Management

73. Deciding how much to invest in the prevention of defects can be analyzed using:

A. EVPI.
B. net present value.
C. weighted factor analysis.
D. return on quality.
E. break-even analysis.

ROQ focuses on the economics of quality efforts.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 3 Hard
Learning Objective: 09-05 Describe and give examples of the costs associated with quality.
Topic: Insights on Quality Management

74. The Baldrige Award is based on evaluations in seven main areas. Which is not one of those?

A. relative profitability
B. strategic planning
C. human resource management
D. information and analysis
E. leadership

Relative profitability is not a main area of evaluation for the Baldrige Award.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 3 Hard
Learning Objective: 09-07 Compare the quality awards.
Topic: Quality Awards
75. A quality circle is:

A. responsible for quality.


B. total quality control.
C. an inspection stamp found on meat.
D. a group of employees who meet to discuss ways of improving products or processes.
E. a team of customers and their contacts within the company who meet to discuss ways of improving products or processes.

Quality circles are groups of employees who meet to discuss ways of improving products or processes.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 09-13 Describe and use various quality tools.
Topic: Quality Tools

76. ISO 9000 currently stresses _____ of a certified organization.

A. minimizing harmful environmental effects


B. product diversity
C. inclusion of reused components in the office equipment
D. a minimum of four supervisory levels
E. continual improvement

Continual improvement is emphasized in ISO 9000 certification.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 3 Hard
Learning Objective: 09-08 Discuss quality certification and its importance.
Topic: Quality Certification

77. The quality tool which helps focus on the most important problem areas based on the 80-20 rule is:

A. brainstorming.
B. check sheets.
C. Pareto analysis.
D. cause-and-effect diagrams.
E. fail-safe methods.

Pareto analysis is based on the concept that approximately 80 percent of the problems come from 20 percent of the causes of
problems.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 09-13 Describe and use various quality tools.
Topic: Quality Tools
78. The quality tool that resembles a "fishbone" is:

A. brainstorming.
B. check sheets.
C. Pareto analysis.
D. cause-and-effect diagrams.
E. fail-safe methods.

These are also known as Ishikawa diagrams.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 09-13 Describe and use various quality tools.
Topic: Quality Tools

79. TQM stands for:

A. Taguchi Quality Methods.


B. Tactical Quality Measurements.
C. The Quality Matrix.
D. Total Quality Management.
E. Total Quantity Measurement.

TQM stands for Total Quality Management.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 09-09 Describe TQM.
Topic: Total Quality Management

80. Which of the following is not an element of TQM?

A. continuous improvement
B. competitive benchmarking
C. employee empowerment
D. team approach
E. quality management as a specialized function within the firm

TQM requires the involvement of everyone in the organization rather than making quality management a specialized function within
the firm.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 09-09 Describe TQM.
Topic: Total Quality Management
81. The tool that is useful in documenting the current process is a:

A. control chart.
B. Pareto chart.
C. check sheet.
D. flowchart.
E. cause-and-effect diagram.

The flowchart graphically depicts how a process works.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 09-13 Describe and use various quality tools.
Topic: Quality Tools

82. The tool that is useful in the collection and organization of data is a:

A. control chart.
B. Pareto chart.
C. check sheet.
D. flowchart.
E. runs chart.

Check sheets help in the collection and organization of data.


AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 09-13 Describe and use various quality tools.
Topic: Quality Tools

83. A quality improvement technique that involves the sharing of thoughts and ideas in a way that encourages unrestrained collective
thinking is:

A. Pareto analysis.
B. benchmarking.
C. brainstorming.
D. a control chart.
E. a check sheet.

Brainstorming involves the sharing of thoughts and ideas in a way that encourages unrestrained collective thinking.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 09-13 Describe and use various quality tools.
Topic: Quality Tools
84. In order for TQM to be successful, it is essential that most of the organization be:

A. members of quality circles.


B. under contract.
C. ISO certified.
D. trained in error detection techniques.
E. in agreement with the philosophy and its goals.

TQM won't work without substantial buy-in.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 09-09 Describe TQM.
Topic: Operations Strategy

85. Which of the following raises quality risks?

A. currency fluctuations
B. outsourcing to less-developed countries
C. empowering employees
D. benchmarking
E. streamlining the supplier base

Quality risks increase when outsourcing to less-developed countries.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 09-02 Define the term quality as it relates to products and as it relates to services.
Topic: Quality and the Supply Chain

86. A technique for focusing attention on the most important problem areas is:

A. quality circles.
B. quality assurance.
C. brainstorming.
D. Pareto analysis.
E. cause-and-effect analysis.

Pareto analysis directs attention to the most important areas.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 09-13 Describe and use various quality tools.
Topic: Quality Tools

87. A chart showing the number of occurrences by category would be used in:

A. Pareto analysis.
B. interviewing.
C. cause-and-effect diagrams.
D. benchmarking.
E. quality function deployment.

We would look for root causes to the most frequently occurring quality failures.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 09-13 Describe and use various quality tools.
Topic: Quality Tools
88. Cause-and-effect diagrams are sometimes called:

A. Pareto diagrams.
B. fishbone (Ishikawa) diagrams.
C. run charts.
D. control charts.
E. responsibility charts.

These help in thinking through what might be causing a quality problem.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 09-13 Describe and use various quality tools.
Topic: Quality Tools

89. The process of identifying other organizations that are best at some facet of your operations, analyzing your performance versus
theirs in order to establish a standard against which to judge performance, and identifying a model for learning how to improve is
known as:

A. continuous improvement.
B. employee empowerment.
C. benchmarking.
D. copycatting.
E. industrial espionage.

It is important to benchmark against best-in-class processes.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 09-13 Describe and use various quality tools.
Topic: Quality Tools

90. Giving workers responsibility for quality improvements and authority to make changes is known as:

A. continuous improvement.
B. passing the buck.
C. benchmarking.
D. employee empowerment.
E. employee involvement.

Empowered employees are often very effective in improving quality.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 09-09 Describe TQM.
Topic: Total Quality Management
91. The typical difference between quality circles and continuous improvement teams is:

A. quality circles work on product design only.


B. continuous improvement teams work on product and process design.
C. continuous improvement teams use only engineers, while quality circles use just the workers doing the work.
D. the amount of employee empowerment.
E. There is no difference—they are the same.

Quality circles often work with processes over which they have little authority.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 3 Hard
Learning Objective: 09-13 Describe and use various quality tools.
Topic: Quality Tools

92. Which of the following is not a typical goal of process improvement?

A. increasing customer satisfaction


B. reducing waste
C. achieving higher quality
D. increasing market share
E. All are the goals

Typical goals of process improvement include increasing customer satisfaction, reducing waste, and achieving higher quality.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 09-11 Give an overview of process improvement.
Topic: Problem Solving and Process Improvement

93. Managers have obligations to a wide variety of stakeholders such as shareholders, employees, and customers. When considering
outsourcing production to offshore suppliers, managers have to weigh:

(I) cost benefits that might make shareholders wealthier.


(II) quality issues that might make firms less productive and/or products riskier.
(III) the investments already tied up in relationships with existing suppliers.

A. I
B. II
C. III
D. I and II only
E. I, II, and III

All of these are considerations that must be taken into account.

AACSB: Ethics
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 09-09 Describe TQM.
Topic: Operations Strategy
94. Focusing a supply chain on ________________ is a modern way of ensuring high-quality inputs and extending an organization’s
continuous improvement efforts.

A. lowest cost per unit sourced


B. close, collaborative ties with suppliers
C. suppliers that emphasize continuous-flow production
D. ISO 14000 customers
E. partners pursuing similar strategies

Collaborative relationships with suppliers often lead to higher quality.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 09-02 Define the term quality as it relates to products and as it relates to services.
Topic: Quality and the Supply Chain

95. To minimize quality risks, which of the following would be least likely to be outsourced to less-developed countries?

A. rubber processing
B. repetitive assembly
C. packaging
D. pharmaceuticals
E. steel manufacturing

Pharmaceutical firms incur substantial quality risks when they outsource to less-developed countries.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 09-05 Describe and give examples of the costs associated with quality.
Topic: Quality and the Supply Chain

96. If customer satisfaction does not always lead to customer loyalty, firms may need to focus additional effort on __________
strategies.

A. remediation
B. retention
C. rework
D. repatriation
E. reprocessing

Increasing customer satisfaction doesn't necessarily increase customer loyalty.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 09-02 Define the term quality as it relates to products and as it relates to services.
Topic: Operations Strategy
97. Before a dimension of quality can be made operationally useful, it must be restated in some ___________ form.

A. qualitative
B. manipulative
C. certifiable
D. measurable
E. marketable

Dimensions of quality have to be translated into measurable characteristics.

AACSB: Reflective Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 09-02 Define the term quality as it relates to products and as it relates to services.
Topic: Insights on Quality Management

Chapter 09 Test Bank – Static Summary


Category # of Questions
AACSB: Ethics 1
AACSB: Reflective Thinking 96
Accessibility: Keyboard Navigation 97
Blooms: Remember 88
Blooms: Understand 9
Difficulty: 1 Easy 36
Difficulty: 2 Medium 52
Difficulty: 3 Hard 9
Learning Objective: 09-01 Discuss the philosophies of quality gurus. 6
Learning Objective: 09-02 Define the 16
term quality as it relates to products and as it relates to services.
Learning Objective: 09-03 Identify the determinants of quality. 7
Learning Objective: 09-04 Explain why quality is important and the consequences of poor quality. 7
Learning Objective: 09-05 Describe and give examples of the costs associated with quality. 10
Learning Objective: 09-06 Discuss the importance of ethics in managing quality. 2
Learning Objective: 09-07 Compare the quality awards. 3
Learning Objective: 09-08 Discuss quality certification and its importance. 8
Learning Objective: 09-09 Describe TQM. 15
Learning Objective: 09-10 Give an overview of problem solving. 1
Learning Objective: 09-11 Give an overview of process improvement. 1
Learning Objective: 09-12 Describe the six sigma methodology. 4
Learning Objective: 09-13 Describe and use various quality tools. 17
Topic: Insights on Quality Management 36
Topic: Management of Quality 2
Topic: Operations Strategy 3
Topic: Problem Solving and Process Improvement 6
Topic: Quality and the Supply Chain 3
Topic: Quality Awards 3
Topic: Quality Certification 8
Topic: Quality Tools 17
Topic: The Evolution of Quality Management 1
Topic: The Foundations of Modern Quality Management: The Gurus 6
Topic: Total Quality Management 12

You might also like