Deck 12: Total Quality Management and Purchasing

Question 1

The ______ suppliers usually get the long-run demand forecast and are involved in the manufacturer's product development.

A) backup
B) key
C) preferred
D) local
E) national

Answer 1

B

Question 2

The goal (of Statistical Process Control) is to ___________________.

A) eliminate errors
B) improve quality
C) improve effectiveness
D) reduce costs
E) prevent process errors before they occur

Answer 2

E

Question 3

The suppliers' ___________ systems must be consistent with the in-house quality requirements of the __________.

A) information management / seller
B) manufacturing / client
C) IT / customer
D) quality assurance / customer
E) internal / buyer

Answer 3

D

Question 4

healthy long-term relationship between suppliers and manufacturers is becoming more and more important and can result in ___________________.

A) improved customer service
B) improved product margins
C) improved profit margins
D) better quality products
E) reduced transaction costs

Question 5

Without high-quality raw materials or component parts from suppliers, a (n) _____________ program will not be successful.

A) quality management
B) strategic management
C) organizational development
D) production management
E) operations management

Question 6

Strategic components are the most critical parts in a project or platform and require more extensive quality assurance requirements. Strategic components generally meet ___________ of the following criteria: Supplier participation in the designing of the component part. high level of systems integration required for a complex component part.n expensive component part.Long lead time for the component part.omponent parts that require extensive testing.Parts with critical characteristics.omponent parts with complex legal implications.

A) all
B) #1 and #7 only
C) #1, #2, and #5 only
D) one or more
E) #5, #6, and #7 only

Question 7

______ reaches much wider than the traditional quality view of incoming inspection and process control-it means that the entire organization is working as a team, including top management and each and every employee.

A) TQM
B) MBO
C) TMQ
D) OB
E) PODS

Question 8

Implementing TQM requires the following:efining the _______.Identifying systems ________.Identifying __________.

A) vision / inputs / suppliers
B) objectives / processes / clients
C) mission / output / customers
D) vision / weaknesses / stakeholders
E) goals / strengths / shareholders

Question 9

________________ is still one of the hottest topics in the business world today.

A) Management By Objectives (MBO)
B) Theory "X" and Theory "Y"
C) Total quality management (TQM)
D) Theory "Z"
E) Organizational Development (OD)

Question 10

Implementing TQM also requires the following: Negotiating __________ requirements.eveloping a "supplier specification" that details ___________ requirements and expectations.etermining the necessary activities required to fulfill those requirements and ____________.

A) product / supplier / goals
B) labor / labor / standards
C) customer / customer / expectations
D) project / employees' / responsibilities
E) supplier / sellers' / goals

Question 11

MBO is an innovative way of thinking that affects the culture, the strategy, and the technology of a company.

Question 12

The ____________ is actually the average distance a normal point is from the mean. Thus, the ____________ represents a more tractable measure of the variance.

A) common deviation / common deviation
B) standard deviation / standard deviation
C) quality variance / quality variance
D) matrix deviation / matrix deviation
E) standard allowance / standard allowance

Question 13

The specification is ____________________, including specific characteristics such as weights and measurements that enable the product to work in a manner acceptable to the ___________.

A) a governmental document / inspector
B) a state mandate / auditor
C) a plan / buyer
D) a description of the required output / consumer
E) program / client

Question 14

ach buying firm must specify in detail the agreed-upon quality targets. As an example, at a minimum, the following four issues should be addressed in any purchasing contract:
PPM target agreementield failure and reliability requirements
Warranty agreement
Urgency to solve problems

Question 15

_________ standards can be applied to both manufacturing and service firms using the same methodology. SPC provides input to the _________ approach.

A) Eight alpha / eight alpha
B) Sigma nine / sigma nine
C) One omega / one omega
D) Six epsilon / six epsilon
E) Six-sigma / six-sigma

Question 16

The ____________ approach to manufacturing process control is to select production samples and compare the attributes of the sample to the specifications.

A) progressive
B) current
C) MBO
D) traditional
E) most effective

Question 17

SPC uses two control charts to ensure quality in manufacturing: the sample mean (X-bar) chart and the sample range (R) chart. The control chart limits are established for X-bar and R charts based upon tolerances set during the design stage of the product. In most cases, problems are ________________ before any ___________ parts are produced, thus reducing scrap and rework.

A) diagnosed and resolved / substandard
B) identified / faulty
C) solved / defective
D) identified / new
E) fixed / defective

Question 18

ffective _____ requires the integration of production planning, marketing, engineering distribution, and field service.

A) MBO
B) OD
C) RAM
D) PODS
E) TQM

Question 19

The _________ suppliers usually get a small volume of business and do not have a close working relationship with the manufacturer.

A) backup
B) key
C) preferred
D) local
E) national

Question 20

The new or modified part agreement between the buying and the selling firm is usually complete after ________________________ has been _____________.

A) a sample / produced
B) prototype / created and tested
C) an acceptable final test sample / generated and verified
D) production / set up and is in operation
E) the design / approved by engineering

Question 21

_______________ (QFD) is a methodology for collecting customer information to drive product development.

A) Quality Function Deployment
B) Quantity Functional Development
C) Quick Functional Development
D) Quality Fabrication and Development
E) Quick Fabrication and Development

Question 22

_________ is a set of standards that document the implementation of a quality program. In order to be certified, suppliers need to provide documentation to an external examiner that they meet the ________ requirements. Once a firm is certified, it will be listed in a directory so that all of its potential customers can know which firms have been certified and to what level.

A) USO 9500 / USO 9500
B) PSO 9000 / PSO 9000
C) ASO 9600 / ASO 9600
D) ESO 9000 / ESO 9000
E) ISO 9001 / ISO 9001

Question 23

In 1987 Congress established the ______________ National Quality Award. It was initiated as a result of foreign firms increasingly dominating American markets. The ___________ Award is much more than an award; it is equivalent to a mini revolution in the business world. As a result, all major firms in America have established continuous improvement quality programs.

A) American Productivity Center / American Productivity
B) Deming Productivity Center / Deming
C) Malcolm Baldridge / Malcolm Baldridge
D) Thomas Edison / Edison Productivity
E) Herzberg Productivity Center and the / Herzberg Productivity

Question 24

Intensive price competition and information technology have led to the implementation of a ______________ procurement approach for commodity components.

A) reverse auction
B) progressive
C) standardized
D) staple
E) multiple source

Question 25

The buyer's evaluation of the supplier's performance is a catalyst for the supplier development activities. There are two main categories for the supplier evaluation. Identify the two correct evaluations.

A) promotional-based evaluations and productivity-based evaluations
B) production-based evaluations and effectiveness-based evaluations
C) specification-based evaluations and goal attainment based evaluations
D) customer service-based evaluations and customer relations-based evaluations
E) process-based evaluations and performance-based evaluations

Question 26

lthough the basic ideas of TM are simple, the ___________ procedures are complex and can be difficult to __________.

A) implementation / understand
B) core / implement
C) basic / understand
D) statistical / understand
E) statistical / implement

Question 27

Customer focus and satisfaction

Question 28

The ability to identify errors before they occur recycles scrap material, improves downstream inspections, and will promote profitability.

Question 29

In order to successfully achieve a __________, buying and supplying organizations must continuously improve their processes.

A) zero defect target
B) TQM goal
C) quality award
D) perfection goal or objective
E) productivity goal or objective

Question 30

______________ is a methodology used to determine whether to accept or reject a batch of non-strategic components or items.

A) TQM
B) MBO
C) Quality assurance
D) Acceptance sampling
E) Zero-defects

Question 31

___________ components are those components not defined as strategic components.

A) Composite
B) OEM
C) Structural
D) Commodity-based
E) Common

Question 32

ven with high-speed computers and statistical techniques for simplifying analysis, testing the interactions for _____________ can be time-consuming and costly in systems with hundreds of interactions.

A) off-target parameters
B) accuracy
C) mistakes
D) errors
E) completeness

Question 33

Six-sigma suppliers focus on all of the items listed below with one exception. Which one is the exception?

A) Defects per million as a standard metric
B) Provision of extensive employee training
C) Improvement of profit margins
D) The reduction of non-value-added activities

Question 34

The ___________ evaluation is an assessment of the supplier's actual performance on a variety of criteria, such as delivery reliability, cost, quality defect rate, etc.

A) productivity-based
B) customer service-based
C) customer relations-based
D) effectiveness-based
E) performance-based

Question 35

lthough the actual details will vary from supplier to supplier, the following list details the basic elements of a Continuous Improvement (CI) system:
Supplier Leadership Commitment to Continuous Improvementross-functional Continuous Improvement Teamsata Driven Improvement Based On Key Measures (Using a QOS / MOS format)
Regularly Scheduled Reviews Quality System in place that allows improvements to be embodied in the normal operating procedures of the business

Question 36

________ is a way to measure supplier quality. Supplying firms that follow the core philosophy of _________ will make excellent strategic partners.

A) Eight alpha / eight alpha
B) Sigma nine / sigma nine
C) Six sigma / six sigma
D) One omega / one omega
E) Six epsilon / six epsilon

Question 37

_____________________ is known as the father of the Japanese post-war industrial revival and was regarded by many as the leading quality guru in the United States.

A) Dr. Malcolm Baldridge
B) Dr. Samuel E. Edwards
C) Dr. Malcolm Deming
D) Dr. Thomas Edison
E) Dr. W. Edwards Deming

Question 38

There are major quality awards that ensure that suppliers are TQM effective. The most universally known quality awards are the ____________ and the ________________ National Quality Award.

A) American Productivity Center Award / Master Malcolm
B) Deming Award / Malcolm Baldridge
C) National Productivity Center Award / Department of Commerce
D) Department of Commerce Award / Master Baldridge
E) Deming Productivity Center Award / Deming-Baldridge

Question 39

______________ (QFD) focuses on how businesses develop high quality products for (their) customers. QFD is driven by cross functional market research. This is the process of understanding customer expectations, and how well providers of products address these expectations.

A) Quality Fabrication and Development
B) Quantity Functional Development
C) Quality Function Deployment
D) Quick Functional Development
E) Quick Fabrication and Development

Question 40

ustomer expectations include 1) fabrication, 2) appearance, 3) maintainability, and 4) reliability.

Question 41

The ________ method (TM) addresses design and engineering (offline) as well as manufacturing (online) quality. This fundamentally differentiates TM from SPC, which is purely an online quality control method.

A) Tasmania
B) Truk
C) Taguchi
D) Tanner
E) Transactional

Question 42

_____________ must be developed to determine the disposition of a lot of raw materials on component parts. If a batch of parts is inferior, it should be rejected and returned to the supplier.

A) Specifications
B) Warranties
C) Guarantees
D) Return policies
E) Acceptance plans

Question 43

The heart of the __________ philosophy is the quality _________. ________ defines the cost of poor quality as the losses a product imparts to society from the time a product is shipped.

A) Tanner / improvement function / Tanner
B) Taguchi / loss function / Taguchi
C) Truk / loss function / Truk
D) Transactional / improvement function / Transactional
E) Tasmania / loss department / Tasmania

Question 44

One of the key techniques in purchasing is ______________. Competitive firms today are all concerned with quality of their outputs. _______________ is a methodology used to determine whether to accept or reject a batch of components or items.

A) acceptance sampling / Acceptance sampling
B) quality sampling / quality sampling
C) performance sampling / performance sampling
D) matrix sampling / matrix sampling
E) zero defects / zero defects

Question 45

Setting the ___________ criteria is usually based on either predetermined standards or basic statistics.

A) return
B) warranty
C) acceptance
D) specification
E) specification

Question 46

The most severe penalty for poor quality expectations is (are) ____________. If the quality of the inputs to the productive system is inferior, the final product will be inferior.

A) government sanctions
B) consumer boycotts
C) court cases
D) consumer complaints
E) the loss of sales