Operations Management Chapter 9

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.

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

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

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

An organization achieves quality by consistently meeting their competitor’s standards.

FALSE An organization achieves quality by meeting or exceeding customer expectations.

Because ‘courtesy’ is subjective, it can’t be considered a factor in service quality.

FALSE Many dimensions of quality are subjective.

Recent changes to ISO guidelines stress continuous improvement regardless of how good you currently are.

TRUEISO guidelines stress continuous improvement.

The seven dimensions of quality are important for products but are not applicable in service organizations.

FALSE Dimensions of quality are often similar across products and services.

Regardless of superior quality, consumers won’t pay premium prices.

FALSE Customer will often pay premium process for superior quality.

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

FALSE Price is not considered a dimension of quality.

The Baldrige award can only be won by manufacturing organizations.

FALSE It can and has been won by service organizations.

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.

Quality of design refers to the degree to which goods and services achieve the intent of the designers.

FALSE Quality of design refers directly to the intent of the designers.

In market research, a group of consumers who express their opinions about a product or service is called a steering committee.

FALSE This would be called a focus group.

Business organizations achieving 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.

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

TRUE Overall product or service quality includes user instructions and follow-up services.

Reducing the variations in our product or service is an important key to perceived quality.

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

Product design choices are usually the result of inputs from accounting and human resources.

FALSE Design choices usually result from marketing and engineering inputs.

The dimensions of product and service quality are too abstract to be applied operationally.

TRUE Determinants of quality are more readily applied operationally.

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 influences this.

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.

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

TRUE Poor quality can have serious financial effects.

Convenience, Reliability and Assurance are dimensions of service quality.

TRUE These are dimensions of service quality.

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.

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.

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.

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

TRUE Customer expectations do change over time.

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

FALSE These are appraisal costs.

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

TRUE These are appraisal costs.

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 avoiding mistakes before they ever happen.

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.

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.

. 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.

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.

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.

Six sigma programs have both management and technical components.

TRUE Both management and technical components are part of six sigma programs.

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.

The causes of variation in any process can be identified through the general categories of people, procedures, education and age.

FALSE The general categories are people, procedures and processes.

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.

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.

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

TRUE Convenience is often a major dimension of service quality.

Serviceability, Conformance and Reliability are dimensions of product quality.

TRUE These are common dimensions of product quality.

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.

Continuous improvement attempts to achieve major breakthroughs in product or service quality.

FALSE Continuous improvement attempts to achieve ongoing improvements in product or service quality.

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.

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

TRUE These are the three key philosophies.

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.

Zero defects requires 100% inspection of the final product.

FALSE Zero defects can be achieved through quality at the source.

The PDSA cycle forms the conceptual basis for continuous improvement.

TRUE It reflects some of the primary ideas behind continuous improvement.

A control chart is a visual representation of the various states in a process.

FALSE A control is a visual representation of the output of a process.

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.

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.

The benchmark organization must be chosen from the same industry in order for its methods to be applicable.

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

A quality circle is a cross-functional team focused on quality.

FALSE Quality circles typically aren’t cross-functional.

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

TRUE TQM is an organization-wide initiative.

There is a positive link between quality and productivity.

TRUE Higher quality leads to higher productivity.

The term "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.

ISO standards aid in transferring technology to developing countries.

TRUE ISO facilitates the transfer of quality expertise to developing countries.

TQM is not just a collection of techniques. It is rather a whole new attitude toward quality.

TRUE TQM is a philosophy.

The PDSA cycles is also referred to as the Baldrige Wheel.

FALSE It’s also referred to as the Deming wheel or Shewhart cycle.

When problems arise in a total quality managed organization, it is important to assign blame and punish the worker responsible for causing the problem.

FALSE Blame and punishment have little place in a TQM organization.

ISO standards apply only to manufacturing organizations.

FALSE ISO standards can apply to service organizations.

A major obstacle to implementing TQM can be an emphasis on long-term financial results.

FALSE Short-term financial focus can be an obstacle to implementing TQM.

One criticism of total quality management is that it may produce blind pursuit of quality to the neglect of other priority considerations.

TRUE Considerations other than quality sometimes can be neglected.

Process mapping is part of process improvement.

TRUE Mapping the process is a first step in process improvement.

Total quality management is a collection of techniques, such as quality control charts, ISO 9000, and quality function deployment.

FALSE TQM is a philosophy.

A tool that is not used for quality management is ________.
A. Flowchart
B. Histogram
C. Perato Analysis
D. Redesign
E. Check sheets

D. Redesign Redesigns aren’t part of quality management.

The four dimensions of quality that are sometimes used to determine fitness for use of a product are ______.
A. performance, special features, durability, and service after sale
B. performance, special features, conformance, and reliability
C. special features, conformance, reliability, and durability
D. performance, conformance, reliability, and durability
E. special features, conformance, durability, and service after sale

B. performance, special features, conformance, and reliability These are the four dimensions of quality that are sometimes used to determine fitness for use of a product.

A tool that depicts process variation graphically is a(n) _________.
A. Affinity diagram
B. Check list
C. Control Chart
D. Flow Chart
E. Relationship diagram

C. Control Chart Control charts depict process variation.

Which isn’t a cost of quality?
A. Prevention cost
B. External failure
C. Extended Service Contracts
D. Internal failure
E. Appraisal costs

C. Extended Service Contracts

The Deming Prize was established by the _________.
A. American Statistical Association
B. Japanese
C. North American Free Trade Association
D. American Quality Society
E. World Trade Organization

B. Japanese The Deming Prize is a prominent Japanese quality award.

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

A. internal failure costs These are internal failure costs.

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

B. external failure costs These are external failure costs.

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

C. appraisal costs These are appraisal costs.

Loss of business, liability, productivity and costs are consequences of _______.
A. Labor Unions
B. Globalization
C. Poor Quality
D. Robotics
E. Micro-factories

C. Poor Quality Poor quality increases these costs.

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

D. prevention costs These are prevention costs.

The purpose of the Malcolm Baldrige National Quality Award is to _______.
A. stimulate efforts to improve quality
B. recognize quality achievements of U.S. companies
C. publicize successful quality programs
D. all of the above
E. distribute the grant money available for improved quality

D. all of the above All of these are goals of the Baldrige award.

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

C. during the design phase Fixing a problem during the design phase prevents a failure from ever occurring.

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. Breakeven Analysis

D. Return on Quality ROQ focuses on the economics of quality efforts.

The Baldrige award is based on seven categories. Which is not one of those?
A. Relative profitability
B. Strategic planning
C. Human resource focus
D. Information and Analysis
E. Leadership

A. Relative profitability Relative profitability is not a Baldrige category.

ISO 9000 standards do not have a requirement for ________.
A. resource
B. remedial
C. systems
D. training
E. management

D. training Training isn’t a part of ISO 9000 standards.

A quality circle is ________.
A. responsible for quality
B. total quality control
C. an inspection stamp found on meat
D. a voluntary group of employees
E. none of the above

D. a voluntary group of employees Quality circles are composed of volunteers.

ISO 9000 currently requires _____ of a certified organization.
A. Quarterly reporting
B. Product diversity
C. Annual audits
D. A minimum of four supervisory levels
E. Continuous improvement

E. Continuous improvement Continuous improvement is emphasized in ISO certification.

The quality control improvement tool which distinguishes between the "important few" and the "trivial many" is __________.
A. brainstorming
B. check sheets
C. Pareto analysis
D. cause-and-effect diagrams
E. fail-safe methods

C. Pareto analysis Pareto analysis focused on the 80/20 phenomenon.

The quality control improvement tool that resembles a "fishbone" is ________.
A. brainstorming
B. check sheets
C. Pareto analysis
D. cause-and-effect diagrams
E. fail-safe methods

D. cause-and-effect diagrams These are also known as Ishikawa diagrams.

TQM stands for:
A. Taguchie Quality Methods
B. Tactical Quality Measurements
C. The Quality Matrix
D. Total Quality Management
E. Total Quantity Measurement

D. Total Quality Management TQM stands for Total Quality Management.

Which of the following is an element of TQM?
A. continuous improvement
B. competitive benchmarking
C. employee empowerment
D. team approach
E. all of the above

E. all of the above All of these are elements of TQM.

Management behaviors supporting an organizational culture that encourages continuous improvement include which of the following?
(I) develop a vision statement for the organization
(II) develop a reward system that promotes the philosophy
(III) institute continuous training programs
(IV) make decisions that adhere to the philosophy
A. I, II, and IV
B. I, II, III, and IV
C. I and III
D. II, III, and IV
E. II and IV

B. I, II, III, and IV All of these would reflect management focused on continuous improvement.

The tool that is useful in documenting the current process is:
A. a control chart
B. a Pareto chart
C. a check sheet
D. a flow chart
E. a simo chart

D. a flow chart The flow chart graphically depicts how a process works.

The tool that is useful in the collection and organization of data is:
A. a control chart
B. a Pareto chart
C. a check sheet
D. a flow chart
E. none of the above

C. a check sheet Check sheets help in the collection and organization of data.

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

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

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

E. in agreement with the philosophy and its goals TQM won’t work without substantial buy-in.

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

B. outsourcing to less-developed countries Quality risks increase when outsourcing to less-developed countries.

Focusing attention on the most important problem areas is referred to as:
A. quality circles
B. quality assurance
C. brainstorming
D. Pareto analysis
E. cause-and-effect analysis

D. Pareto analysis Pareto analysis directs attention to the most important areas.

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. none of the above

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

Cause-and-effect diagrams are sometimes called:
A. Pareto diagrams
B. fishbone (Ishikawa) diagrams
C. run charts
D. control charts
E. none of the above

B. fishbone (Ishikawa) diagrams These help in thinking through what might be causing a quality program.

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

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

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

D. employee empowerment Empowered employees are often very effective in improving quality.

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 just the same

D. the amount of employee empowerment Quality circles often work with processes over which they have little authority.

Which of the following is not a goal of process improvement?
A. increasing customer satisfaction
B. reducing waste
C. achieving higher quality
D. identifying the cause of a problem
E. All are the goals.

D. identifying the cause of a problem Identifying the cause of a problem is an input into the effort to improve the process.

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

E. I, II and III All of these are considerations that must be taken into account.

Focusing a supply chain on ________________ is a modern way of ensuring high quality inputs and a ready supply of process-improvement ideas.
A. lowest cost-per unit sourced
B. close, collaborative ties with suppliers
C. suppliers that emphasized continuous-flow production
D. ISO 14000 customers
E. partners pursuing similar strategies

B. close, collaborative ties with suppliers Collaborative relationships with suppliers often lead to higher quality.

As regards quality risks, which of the following would be least likely to involve outsourcing to less-developed countries?
A. rubber processing
B. repetitive assembly
C. packaging
D. pharmaceuticals
E. steel manufacturing

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

If customer satisfaction doesn’t always lead to customer loyalty, firms may need to focus additional effort on __________ strategies.
A. remediation
B. retention
C. rework
D. repatriation
E. reprocessing

B. retention Increasing customer satisfaction doesn’t necessarily increase customer loyalty.

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

D. measurable Dimensions of quality have to be translated into measurable characteristics.