SCM CH 6

An improvement in quality must necessarily increase costs.
False
3) Which of the following statements regarding Arnold Palmer Hospital is FALSE?
A) The hospital uses a wide range of quality management techniques.
B) The culture of quality at the hospital includes employees at all levels.
C) The hospital scores very highly in national studies of patient satisfaction.
D) The hospital’s high quality is measured by low readmission rates, not patient satisfaction.
E) The design of patient rooms, even wall colors, reflects the hospital’s culture of quality.
D
) Arnold Palmer Hospital uses which of the following quality management techniques?
A) Pareto charts
B) flowcharts
C) benchmarking
D) just-in-time
E) The hospital uses all of the above techniques.
E
Quality Management techniques
flowcharts, benchmarking, JIT, Pareto Charts
Companies with the highest levels of quality are how many times more productive than their competitors with the lowest quality levels?
A) 2
B) 3
C) 4
D) 5
E) None of the above because quality has no impact on productivity (units/labor hr.).
D
6) A successful quality strategy features which of the following elements?
A) an organizational culture that fosters quality
B) an understanding of the principles of quality
C) engaging employees in the necessary activities to implement quality
D) A and C
E) A, B, and C
E
7) Quality can improve profitability by reducing costs. Which of the following is not an aspect of reduced costs by quality improvements?
A) flexible pricing
B) increased productivity
C) lower rework and scrap costs
D) lower warranty costs
E) All of the above are aspects of reduced costs by quality improvements.
Flexible pricing
8) Arnold Palmer Hospital uses ________ to seek new ways to reduce readmission rates.
Continuous improvement
1) The definition of quality adopted by The American Society for Quality is a customer-oriented (i.e., user based) definition.
True
2) Conforming to standards is the focus of the product-based definition of quality.
False
3) Internal failure costs are associated with scrap, rework, and downtime.
True
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.
False
6) Improved quality can increase profitability via allowing flexible pricing.
True
8) “Making it right the first time” is:
A) an unrealistic definition of quality.
B) a user-based definition of quality.
C) a manufacturing-based definition of quality.
D) a product-based definition of quality.
E) the definition of quality proposed by the American Society for Quality
Manufacturing based
9) Three broad categories of definitions of quality are:
User, manufacturing, and product based
10) According to the manufacturing-based definition of quality:
A) quality is the degree of excellence at an acceptable price and the control of variability at an acceptable cost.
B) quality depends on how well the product fits patterns of consumer preferences.
C) even though quality cannot be defined, you know what it is.
D) quality is the degree to which a specific product conforms to standards.
E) quality lies in the eyes of the beholder.
quality is the degree to which product conforms to standards
12) All of the following costs are likely to decrease as a result of better quality EXCEPT:
A) customer dissatisfaction costs.
B) inspection costs.
C) scrap costs.
D) warranty and service costs.
E) maintenance costs.
E maintenance costs
13) Which of the four major categories of quality costs is particularly hard to quantify?
A) prevention costs
B) appraisal costs
C) internal failure costs
D) external failure costs
E) None is hard to quantify.
External Failure costs
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:
A) Vilfredo Pareto.
B) Armand Feigenbaum.
C) Joseph M. Juran.
D) W. Edwards Deming.
E) Philip B. Crosby.
Deming
17) “Quality Is Free,” meaning that the costs of poor quality have been understated, is the work of:
A) W. Edwards Deming.
B) Joseph M. Juran.
C) Philip B. Crosby.
D) Crosby, Stills, and Nash.
E) Armand Feigenbaum.
Crosby
18) Stakeholders who are affected by the production and marketing of poor quality products include:
A) stockholders, employees, and customers.
B) suppliers and creditors, but not distributors.
C) only stockholders, creditors, and owners.
D) suppliers and distributors, but not customers.
E) only stockholders and organizational executives and managers.
A
19) Regarding the quality of design, production, and distribution of products, an ethical requirement for management is to:
determine whether stakeholders are being wronged by poor quality
20) To become ISO 9000 certified, organizations must:
A) document quality procedures.
B) have an onsite assessment.
C) have an ongoing series of audits of their products or service.
D) all of the above
E) none of the above
D
21) What is a set of quality standards developed by the International Organization for Standardization?
A) Malcolm Baldrige National Quality Award
B) Deming Prize
C) ISO 14000
D) IOS 2009
E) ISO 9000
ISO 9000
costs result from production of defective parts or services before delivery to the customer
Internal failure
23) The work by ________ regarding how people learn from each other’s successes led to the field of cross-functional teamwork.
Feigenbaum
4 costs of quality
External(hardest one to evaluate) internal, prevention, appraisal
27) Quality has at least three categories of definitions; identify them. Provide a brief explanation of each.
user based (in the eyes of the beholder), manufacturing based (conforming to standards), and product-based (measurable content of product).
Focus of ISO 9000 is to enhance success through
(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
Quality is mostly the business of the quality control staff, not ordinary employees.
False
TQM is important because each of the ten decisions made by operations managers deals with some aspect of identifying and meeting customer expectations.
True
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.
True
Continuous improvement is based on the philosophy that any aspect of an operation can be improved.
True
Kaizen is similar to TQM in that both are focused on continuous improvement.
True
Quality circles empower employees to improve productivity by finding solutions to work-related problems in their work area.
True
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.
False
8) Line employees need the knowledge of TQM tools.
True
One of the ways that just-in-time (or JIT) influences quality is that by reducing inventory, bad quality is exposed.
True
11) The philosophy of zero defects is:
A) the result of Deming’s research.
B) unrealistic.
C) prohibitively costly.
D) an ultimate goal; in practice, 1 to 2% defects is acceptable.
E) consistent with the commitment to continuous improvement.
E
12) Based on his 14 Points, Deming is a strong proponent of:
A) inspection at the end of the production process.
B) an increase in numerical quotas to boost productivity.
C) looking for the cheapest supplier.
D) training and knowledge.
E) all of the above.
Training and knowledge
13) PDCA, developed by Shewhart, stands for which of the following?
A) Plan-Do-Check-Act
B) Plan-Develop-Check-Accept
C) Problem-Develop Solution-Check-Act
D) Problem-Do-Continue-Act
E) Prepare-Develop-Create-Assess
Plan Do Check Act
PDCA is associated with
Continuous Improvement
15) A Three Sigma program has how many defects per million?
A) 34
B) 3
C) 3 times the standard deviation
D) 2700
E) 1500
D
16) A Six Sigma program has how many defects per million?
A) 3.4
B) 34
C) 1000
D) 6 times the standard deviation
E) 2700
3.4
18) One of Britain’s largest children’s hospitals working with Ferrari Racing is an example of:
A) internal benchmarking.
B) external benchmarking.
C) Taguchi concepts.
D) employee empowerment.
E) corporate responsibility.
B
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?
A) 3.4
B) 6.0
C) 34
D) 2700
E) 6 times the monthly standard deviation of passengers
A
21) Total quality management emphasizes:
A) the responsibility of the quality control staff to identify and solve all quality-related problems.
B) a commitment to quality that goes beyond internal company issues to suppliers and customers.
C) a system where strong managers are the only decision makers.
D) a process where mostly statisticians get involved.
E) ISO 14000 certification.
B
22) A successful TQM program incorporates all EXCEPT which of the following?
A) continuous improvement
B) employee involvement
C) benchmarking
D) centralized decision-making authority
E) JIT
D
Kaizen is japanese for
continuous improvement
24) Which of the following statements regarding “Six Sigma” is TRUE?
A) The term has two distinct meanings-one is statistical; the other is a comprehensive quality system.
B) Six Sigma means that about 94 percent of a firm’s output is free of defects.
C) The Six Sigma program was developed by Toyota in the 1970s.
D) The Six Sigma program is for manufacturing firms and is not applicable to services.
E) Six Sigma certification is granted by the International Standards Organization (ISO).
A
26) Techniques for building employee empowerment include:
A) building communication networks that include employees.
B) developing open, supportive supervisors.
C) moving responsibility from both managers and staff to production employees.
D) building high-morale organizations.
E) All of the above are techniques for employee empowerment.
E
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:
Benchmarking
29) Costs of dissatisfaction, repair costs, and warranty costs are elements of cost in the:
A) quality loss function.
B) Pareto chart.
C) ISO 9000 quality cost calculator.
D) process chart.
E) Ishikawa diagram.
A
30) A quality loss function includes all of the following costs EXCEPT:
A) the cost of scrap and repair.
B) the cost of customer dissatisfaction.
C) inspection, warranty, and service costs.
D) sales costs.
E) costs to society.
D
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:
A) internal benchmarking.
B) Six Sigma.
C) ISO 9000.
D) Taguchi concepts.
E) process control charts.
D
Enlarging employee jobs so that the added responsibility and authority is moved to the lowest level possible in the organization is called ________.
Employee empowerment
_____ selects a demonstrated standard of performance that represents the very best performance for a process or an activity.
benchmarking
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) ________.
Quality Circle
36) Identify the five steps of DMAIC.
Define projects purpose, measure process, analyze data, improve , control
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
7 major concepts of TQM
(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.
What is the quality loss function
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.
) Pareto charts are a graphical way of identifying the few critical items from the many less important ones.
True
3) Pareto charts are used to:
A) identify inspection points in a process.
B) outline production schedules.
C) organize errors, problems, or defects.
D) show material flow.
E) show the range of values of a measurement and the frequency with which each value occurs.
C
The “four Ms” of cause-and-effect diagrams are:
A) material, machinery/equipment, manpower, and methods.
B) material, methods, men, and mental attitude.
C) named after four quality experts.
D) material, management, manpower, and motivation.
E) mentality, motivation, management, and manpower.
A
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:
Flowchart
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:
A) a Pareto chart.
B) a scatter diagram.
C) a quality loss function.
D) a cause-and-effect diagram.
E) a flowchart.
A
9) A fishbone chart is also known as a:
A) cause-and-effect diagram.
B) poka-yoke diagram.
C) Kaizen diagram.
D) Kanban diagram.
E) Taguchi diagram.
Cause and effect diagram
10) If a sample of parts is measured and the mean of the measurements is outside the control limits, the process is:
A) in control, but not capable of producing within the established control limits.
B) out of control and the process should be investigated for assignable variation.
C) within the established control limits with only natural causes of variation.
D) monitored closely to see if the next sample mean will also fall outside the control limits.
E) none of the above.
B
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?
A) Ishikawa diagram
B) Pareto chart
C) flowchart
D) control charts
E) activity chart
A
12) When sample measurements falls inside the control limits, it means that:
A) each unit manufactured is good enough to sell.
B) the process limits cannot be determined statistically.
C) the process output exceeds the requirements.
D) if there is no other pattern in the samples, the process is in control.
E) the process output does not fulfill the requirements.
D
________ diagrams use a schematic technique to discover possible locations of quality problems.
Cause and effect
Control charts
________ are graphical presentations of data over time that show upper and lower control limits for processes we want to control.
Explain how a Pareto chart can identify the most important causes of errors in a process.
Higher frequencys
2) Source inspection is inferior to inspection before costly operations.
False
3) A checklist is a type of poka-yoke to help ensure consistency and completeness in carrying out a task.
True
7) Poka-yoke is the Japanese term for:
A) card.
B) foolproof.
C) continuous improvement.
D) fishbone diagram.
E) just-in-time production.
B fool proof
9) A checklist is a type of:
A) poka-yoke.
B) kaizen.
C) kanban.
D) Pareto chart
E) flowchart
pokayoke
________ is doing the job properly with the operator ensuring that this is so.
Source inspection
1) Security is the determinant of service quality that means freedom from danger, risk, or doubt.
True
3) What refers to training and empowering frontline workers to solve a problem immediately?
Service Recovery
6) Which of the determinants of service quality involves having the customer’s best interests at heart?
A) access
B) courtesy
C) credibility
D) responsiveness
E) tangibles
Credibility
7) Which of the determinants of service quality involves performing the service right the first time?
A) access
B) courtesy
C) credibility
D) reliability
E) responsiveness
d
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.