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Operations Management 13th Edition Stevenson Test Bank
Operations Management 13th Edition Stevenson Test Bank
FALSE
FALSE
FALSE
4. ISO 9000 standards stress continual improvement regardless of how good you currently are.
TRUE
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.
FALSE
7. High performance and low prices are both considered to be dimensions of quality.
FALSE
FALSE
The Baldrige Award is awarded to organizations in multiple categories including service, health care, and education.
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
TRUE
Quality of design involves taking into account customer wants, production or service capability, safety, costs, and other similar
considerations.
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
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
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.
TRUE
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.
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.
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
18. Medical malpractice claims are an example of how poor quality can affect an organization through liability.
TRUE
TRUE
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
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.
23. Customer expectations tend to change over time, affecting their perception of service quality.
TRUE
FALSE
25. Cost of inspectors, testing, test equipment, and labs are examples of appraisal costs.
TRUE
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.
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.
28. According to Deming, it is the systems that management puts into place that are primarily responsible for poor quality, not
employees.
TRUE
TRUE
30. Juran describes quality management as a trilogy that consists of quality planning, control of quality costs, and quality
improvement.
FALSE
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.
32. Six Sigma programs have both management and technical components.
TRUE
Both management and technical components are part of Six Sigma programs.
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
FALSE
Quality certification refers to the process of certifying that quality processes are in place.
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.
TRUE
TRUE
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
FALSE
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.
41. Three key philosophies in TQM are continuous improvement, involvement of everyone in the organization, and customer
satisfaction.
TRUE
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.
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.
44. The PDSA cycle forms the conceptual basis for continuous improvement.
TRUE
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.
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
TRUE
TQM focuses on what leads to the outcome rather than the outcome itself.
48. Your benchmark organization must be chosen from your industry in order for its methods to be applicable to your business.
FALSE
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.
50. Total quality management attempts to involve everyone in an organization in the effort to achieve quality.
TRUE
TRUE
FALSE
Quality at the source refers to each worker being responsible for the quality of his or her work.
TRUE
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.
55. When an organization comes to the realization that there are quality problems in products that are already in service, ethical
approaches include:
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.
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.
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.
58. ISO certification differs substantially from the Baldrige Award in that it:
Unlike the Baldrige Award, ISO registered companies face an ongoing series of audits, and they must be reregistered every three
years.
A. probabilistic; deterministic
B. logistical; managerial
C. statistical; probabilistic
D. managerial; technical
E. local; global
In DMAIC, control involves establishing plans and procedures to ensure that improvements are sustained.
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.
A. flowchart.
B. histogram.
C. Pareto analysis.
D. redesign.
E. check sheet.
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.
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.
66. Lost production time, scrap, and rework are examples of:
67. Warranty service, processing of complaints, and costs of litigation are examples of:
68. Costs of inspectors, testing, test equipment, and labs are examples of:
A. labor unions.
B. globalization.
C. poor quality.
D. robotics.
E. micro-factories.
70. Quality planning and administration, quality training, and quality control procedures are examples of:
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.
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.
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.
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.
Quality circles are groups of employees who meet to discuss ways of improving products or processes.
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.
A. brainstorming.
B. check sheets.
C. Pareto analysis.
D. cause-and-effect diagrams.
E. fail-safe methods.
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.
A. control chart.
B. Pareto chart.
C. check sheet.
D. flowchart.
E. cause-and-effect diagram.
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.
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.
A. currency fluctuations
B. outsourcing to less-developed countries
C. empowering employees
D. benchmarking
E. streamlining the supplier base
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.
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.
A. Pareto diagrams.
B. fishbone (Ishikawa) diagrams.
C. run charts.
D. control charts.
E. responsibility charts.
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.
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.
Quality circles often work with processes over which they have little authority.
Typical goals of process improvement include increasing customer satisfaction, reducing waste, and achieving higher quality.
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:
A. I
B. II
C. III
D. I and II only
E. I, II, and III
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.
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.
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
A. qualitative
B. manipulative
C. certifiable
D. measurable
E. marketable