CHAPTER 6: MANAGING QUALITY TRUE/FALSE 1.

Managers at Arnold Palmer Hospital take quality so seriously that the hospital typically is anational leader in several quality areasso that continuous improvement is no longer necessary. False (Global company profile, moderate) 2. An improvement in quality must necessarily increase costs. False (Quality and strategy, easy) 3. For most, if not all organizations, quality is a tactical rather than a strategic issue. False (Quality and strategy, moderate) 4. The definition of quality adopted by The American Society for Quality is a customerorienteddefinition. True (Defining quality, easy) 5. Conforming to standards is the focus of the product-based definition of quality. False (Defining quality, moderate) 6. Internal failure costs are associated with scrap, rework, and downtime. True (Defining quality, easy) 7. Philip Crosby is credited with both of these quality catch-phrases: "quality is free" and "zerodefects." True (Defining quality, easy) 8. Deming's writings on quality tend to focus on the customer and on fitness for use, unlike Juran'swork that is oriented toward meeting specifications. False (defining quality, moderate) 9. Improved quality can increase profitability via flexible pricing. True (Defining quality, moderate) 10.

ISO 9000 has evolved from a set of quality assurance standards toward a quality managementsystem. True (International quality standards, moderate 11. Quality is mostly the business of the quality control staff, not ordinary employees. False (Total quality management, moderate) 12. TQM is important because quality influences all of the ten decisions made by operations managers. True (Total quality management, moderate) 13. The phrase Six Sigma has two meanings. One is statistical, referring to an extremely high processcapability; the other is a comprehensive system for achieving and sustaining business success. True (Quality and strategy, moderate)

107 14. Continuous improvement is based on the philosophy that any aspect of an organization can beimproved. True (Total quality management, moderate) 15. Kaizen is similar to TQM in that both are focused on continuous improvement. True (Total quality management, moderate) 16. The Japanese use the term "poka-yoke" to refer to continuous improvement. False (Total quality management, moderate) {AACSB: Multiculture and Diversity} 17. Quality circles empower employees to improve productivity by finding solutions to workrelatedproblems in their work area. True (Total quality management, moderate) {AACSB: Communication} 18. Benchmarking requires the comparison of your firm to other organizations; it is not appropriate tobenchmark by comparing one of your divisions to another of your divisions. False (Total quality management, moderate) 19.

Line employees need the knowledge of TQM tools. True (Total quality management, easy) 20. One of the ways that Just-In-Time (or JIT) influences quality is that by reducing inventory, badquality is exposed. True (Total quality management, moderate) 21. The quality loss function indicates that costs related to poor quality are low as long as the productis within acceptable specification limits. False (Total quality management, moderate) 22. Pareto charts are a graphical way of identifying the few critical items from the many less importantones. True (Tools of TQM, moderate) 23. A cause-and-effect diagram helps identify the source of a problem. True (Tools of TQM, moderate) 24. Source inspection is inferior to inspection before costly operations. False (The role of inspection, moderate) 25. Of the several determinants of service quality, access is the one that relates to keeping customersinformed in language they can understand. False (TQM in services, moderate) 26. High-quality products and services are the most profitable. True (Defining quality, easy 27. 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 (Global company profile, moderate)

28. Arnold Palmer Hospital uses which of the following quality management techniques?a. Pareto chartsb. flow chartsc. benchmarkingd. Just-in-Timee. The hospital uses all of the above techniques. e (Global company profile, easy) 29. Which of the following statements best describes the relationship between quality management andproduct strategy?a. Product strategy is set by top management; quality management is an independent activity.b. Quality management is important to the low-cost product strategy, but not to the response ordifferentiation strategies.c. High quality is important to all three strategies, but it is not a critical success factor.d. Managing quality helps build successful product strategies.e. Companies with the highest measures of quality were no more productive than other firms. d (Defining quality, moderate) 30. "Quality is defined by the customer" isa. an unrealistic definition of qualityb. a user-based definition of qualityc. a manufacturing-based definition of qualityd. a product-based definition of qualitye. the definition proposed by the American Society for Quality b (Defining quality, moderate) 31. "Making it right the first time" isa. an unrealistic definition of qualityb. a user-based definition of qualityc. a manufacturing-based definition of qualityd. a product-based definition of qualitye. the definition proposed by the American Society for Quality c (Defining quality, moderate) 32. Three broad categories of definitions of quality area. product quality, service quality, and organizational qualityb. user-based, manufacturing-based, and product-basedc. internal, external, and preventiond. low-cost, response, and differentiatione. Pareto, Shewhart, and Deming b (Defining quality, easy) 33. 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 anacceptable costb. quality depends on how well the product fits patterns of consumer preferencesc. even though quality cannot be defined, you know what it isd. quality is the degree to which a specific product conforms to standardse. quality lies in the eyes of the beholder d (Defining quality, moderate) 34.

The role of quality in limiting a firm's product liability is illustrated bya. ensuring that contaminated products such as impure foods do not reach customersb. ensuring that products meet standards such as those of the Consumer Product Safety Actc. designing safe products to limit possible harm to consumersd. using processes that make products as safe or as durable as their design specifications call fore. All of the above are valid. e (Defining quality, easy) {AACSB: Ethical Reasoning} 35. Which of the following is not one of the major categories of costs associated with quality?a. prevention costsb. appraisal costsc. internal failuresd. external failurese. none of the above; they are all major categories of costs associated with quality e (Defining quality, moderate) 36. All of the following costs are likely to decrease as a result of better quality except a. customer dissatisfaction costsb. inspection costsc. scrap costsd. warranty and service costse. maintenance costs e (Defining quality, moderate) 37. Which of the following statements is not true?a. Self-promotion is not a substitute for quality products.b. Inferior products harm a firms profitability and a nations balance of payments.c. Product liability transfers from the manufacturer to the retailer once the retailer acceptsdelivery of the product.d. Qualitybe it good or badwill show up in perceptions about a firms new products,employment practices, and supplier relations.e. Legislation such as the Consumer Product Safety Act sets and enforces product standards bybanning products that do not reach those standards. c (Defining quality, moderate) 38. "Employees cannot produce goods that on average exceed the quality of what the process iscapable of producing" expresses a basic element in the writings of a. Vilfredo Paretob. Armand Feigenbaumc. Joseph M. Jurand. W. Edwards Deminge. Philip B. Crosby d (Defining quality, moderate) 39. "Quality Is Free," meaning that the costs of poor quality have been understated, is the work of a. W. Edwards Demingb. Joseph M. Juranc. Philip B. Crosbyd. Crosby, Stills, and Nashe. Armand Feigenbaum c (Defining quality, moderate) 40.

The philosophy of zero defects isa. the result of Deming's researchb. unrealisticc. prohibitively costlyd. an ultimate goal; in practice, 1 to 2% defects is acceptablee. consistent with the commitment to continuous improvement e (Total quality management, moderate) 41. Based on his 14 Points, Deming is a strong proponent of a. inspection at the end of the production processb. an increase in numerical quotas to boost productivityc. looking for the cheapest supplierd. training and knowledgee. all of the above (Ans : d)

111 42. Stakeholders who are affected by the production and marketing of poor quality products includea. stockholders, employees, and customersb. suppliers and creditors, but not distributorsc. only stockholders, creditors, and ownersd. suppliers and distributors, but not customerse. only stockholders and organizational executives and managers a (Defining quality, moderate) {AACSB: Ethical Reasoning} 43. Regarding the quality of design, production, and distribution of products, an ethical requirement formanagement is toa. determine whether any of the organization's stakeholders are violated by poor quality productsb. gain ISO 14000 certification for the organizationc. obtain a product safety certificate from the Consumer Product Safety Commissiond. have the organization's legal staff write disclaimers in the product instruction bookletse. compare the cost of product liability to the external failure cost a (Defining quality, moderate) {AACSB: Ethical Reasoning} 44. If 1 million passengers pass through the St. Louis Airport with checked baggage each month, asuccessful Six Sigma program for baggage handling would result in how many passengers withmisplaced luggage?a. 3.4b. 6.0c. 34d. 2700e. 6 times the monthly standard deviation of passengers a (Total quality management, moderate) {AACSB: Analytic Skills} 45. Which of the following is true about ISO 14000 certification?a. It is not a prerequisite for ISO 9000 certification.b. It deals with environmental management.c. It offers a good systematic approach to pollution prevention.d. One of its core elements is life-cycle assessment.e. All of the above are true. e (International quality standards, moderate) 46.

Suppose that a firm has historically been achieving three-sigma quality. If the firm later changesits quality management practices such that begins to achieve six-sigma quality, which of thefollowing phenomena will result?a. The average number of defects will be cut in half.b. The specification limits will be moved twice as far from the mean.c. The average number of defects will be cut by 99.9997%.d. The average number of defects will be cut by 99.87%

112 47. To become ISO 9000 certified, organizations musta. document quality proceduresb. have an onsite assessmentc. have an ongoing series of audits of their products or serviced. all of the abovee. none of the above d (International quality standards, moderate) 48. Total quality management emphasizesa. the responsibility of the quality control staff to identify and solve all quality-related problemsb. a commitment to quality that goes beyond internal company issues to suppliers and customersc. a system where strong managers are the only decision makersd. a process where mostly statisticians get involvede. ISO 14000 certification b (Total quality management, moderate) 49. A successful TQM program incorporates all of the following except a. continuous improvementb. employee involvementc. benchmarkingd. centralized decisionmaking authoritye. none of the above; a successful TQM program incorporates all of the above d (Total quality management, moderate) 50. "Kaizen" is a Japanese term meaninga. a foolproof mechanismb. just-in-time (JIT)c. a fishbone diagramd. setting standardse. continuous improvement e (Total quality management, easy) {AACSB: Multiculture and Diversity} 51. Which of the following statements regarding "Six Sigma" is true ?a. The term has two distinct meaningsone is statistical; the other is a comprehensive qualitysystem.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 1970's.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 (Total quality management, moderate) 52.

Quality circles members area. paid according to their contribution to qualityb. external consultants designed to provide training in the use of quality toolsc. always machine operatorsd. all trained to be facilitatorse. none of the above; all of the statements are false e (Total quality management, moderate)

113 53. Techniques for building employee empowerment includea. building communication networks that include employeesb. developing open, supportive supervisorsc. moving responsibility from both managers and staff to production employeesd. building high-morale organizationse. All of the above are techniques for employee empowerment. e (Total quality management, moderate) 54. Building high-morale organizations and building communication networks that include employeesare both elements of a. ISO 9000 certificationb. Six Sigma certificationc. employee empowermentd. Taguchi methodse. the tools of TQM c (Total quality management, moderate) {AACSB: Communication} 55. The process of identifying other organizations that are best at some facet of your operations andthen modeling your organization after them is known asa. continuous improvementb. employee empowermentc. benchmarkingd. copycattinge. patent infringement c (Total quality management, moderate) 56. ISO 9000 seeks standardization in terms of a. productsb. production proceduresc. suppliers' specificationsd. procedures to manage qualitye. all of the above d (International quality standards, moderate) 57. Costs of dissatisfaction, repair costs, and warranty costs are elements of cost in thea. Taguchi Loss Functionb. Pareto chartc. ISO 9000 Quality Cost Calculatord. process charte. none of the above a (Total quality management, moderate) 58. A quality loss function includes all of the following costs except a. the cost of scrap and repairb. the cost of customer dissatisfactionc. inspection, warranty, and service costsd. sales costse. costs to society d (Tools of TQM, moderate)

114 59. Pareto charts are used toa. identify inspection points in a processb. outline production schedulesc. organize errors, problems, or defectsd. show material flowe. all of the above c (Tools of TQM, moderate) 60. The "four Ms" of cause-and-effect diagrams area. material, machinery/equipment, manpower, and methodsb. material, methods, men, and mental attitudec. named after four quality expertsd. material, management, manpower, and motivatione. none of the above a (Tools of TQM, moderate) 61. Among the tools of TQM, the tool ordinarily used to aid in understanding the sequence of eventsthrough which a product travels is aa. Pareto chartb. process chartc. check sheetd. Taguchi mape. poka-yoke b (Tools of TQM, moderate) 62. The process improvement technique that sorts the "vital few" from the "trivial many" isa. Taguchi analysisb. Pareto analysisc. benchmarkingd. Deming analysise. Yamaguchi analysis b (Tools of TQM, moderate) 63. A production manager at a pottery factory has noticed that about 70 percent of defects result fromimpurities in raw materials, 15 percent result from human error, 10 percent from machinemalfunctions, and 5 percent from a variety of other causes. This manager is most likely usinga. a Pareto chartb. a scatter diagramc. a Taguchi loss functiond. a cause and effect diagrame. a flow chart a (Tools of TQM, easy)

115 64. A customer service manager at a retail clothing store has collected numerous customer complaintsfrom 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 categories. This is most closely relatedto the ____________ tool of TQM.a. Taguchi loss functionb. cause and effect diagramc. scatter diagramd. histograme. process control chart b (Tools of TQM, easy) 65.

A manager tells her production employees, "It's no longer good enough that your work fallanywhere within the specification limits. I need your work to be as close to the target value aspossible." Her thinking is reflective of a. internal benchmarkingb. Six Sigmac. ISO 9000d. Taguchi conceptse. process control charts d (Tools of TQM, moderate) 66. A fishbone diagram is also known as aa. cause-and-effect diagramb. poka-yoke diagramc. Kaizen diagramd. Kanban diagrame. Taguchi diagram a (Tools of TQM, easy) 67. If a sample of parts is measured and the mean of the measurements is outside the control limits, theprocess isa. in control, but not capable of producing within the established control limitsb. out of control and the process should be investigated for assignable variationc. within the established control limits with only natural causes of variationd. monitored closely to see if the next sample mean will also fall outside the control limitse. none of the above b (Tools of TQM, moderate) 68. A quality circle holds a brainstorming session and attempts to identify the factors responsible forflaws in a product. Which tool do you suggest they use to organize their findings?a. Ishikawa diagramb. Pareto chartc. process chartd. control chartse. activity chart a (Tools of TQM, moderate) {AACSB: Communication}

116 69. When a sample measurement falls inside the control limits, it means thata. each unit manufactured is good enough to sellb. the process limits cannot be determined statisticallyc. the process output exceeds the requirementsd. if there is no other pattern in the samples, the process is in controle. the process output does not fulfill the requirements d (Tools of TQM, moderate,) 70. Which of the following is false regarding control charts?a. Values above the upper control limits always imply that the products quality is exceedingexpectations.b. Control charts are built so that new data can be quickly compared to past performance data.c. Control charts graphically present data.d. Control charts plot data over time.e. None of the above is false. a (Tools of TQM, moderate) 71.

The goal of inspection is toa. detect a bad process immediatelyb. add value to a product or servicec. correct deficiencies in productsd. correct system deficienciese. all of the above a (The role of inspection, moderate) 72. Which of the following is not a typical inspection point?a. upon receipt of goods from your supplierb. during the production processc. before the product is shipped to the customerd. at the supplier's plant while the supplier is producinge. after a costly process e (The role of inspection, moderate) 73. A good description of "source inspection" is inspectinga. materials upon delivery by the supplierb. the goods at the production facility before they reach the customerc. the goods as soon as a problem occursd. goods at the supplier's plante. one's own work, as well as the work done at the previous work station e (The role of inspection, moderate) 74. "Poka-yoke" is the Japanese term fora. cardb. foolproof c. continuous improvementd. fishbone diagrame. just-in-time production b (The role of inspections, moderate) {AACSB: Multiculture and Diversity} 75. What refers to training and empowering frontline workers to solve a problem immediately?a. just-in-timeb. poka-yokec. benchmarkingd. kaizen e. service recovery e (TQM in services, easy) 76. 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, thesalesperson's friendliness, and the dealer's honesty. The dealership should be especially concernedwith which determinants of service quality?a. communication, courtesy, and credibilityb. competence, courtesy, and securityc. competence, responsiveness, and reliabilityd. communication, responsiveness, and reliabilitye. understanding/knowing customer, responsiveness, and reliability a (TQM in services, moderate) {AACSB: Communication} 77. Marketing issues such as advertising, image, and promotion are important to quality becausea. they define for consumers the tangible elements of a serviceb. the intangible attributes of a product (including any accompanying service) may not be definedby the consumerc. they

educate consumers on how to use the productd. they make the product seem more valuable than it really ise. they raise expenses and therefore decrease profitability b (TQM in services, moderate) 78. Which of the determinants of service quality involves having the customer's best interests at heart?a. accessb. courtesyc. credibilityd. responsivenesse. tangibles c (TQM in services, moderate) 79. Which of the determinants of service quality involves performing the service right the first time?a. accessb. courtesyc. credibilityd. reliabilitye. responsiveness d (TQM in services, moderate)