Question 1

Define each of the following terms and relate to the context (manufacturing or service)in which each term could be used: a)Number of nonconformities per unit b)Error per opportunity c)Nonconformity versus defect

Accepted Answer

The answer of Define each of the following terms and...

Question 2

According to Six Sigma standards,a defect rate of 2 per 1,000 is equivalent to:

Accepted Answer

A) 20000 dpmo. 
B) 2000 errors. 
C) 12,000 dpmo. 
D) 2,000 dpmo.

Question 3

_____ uses analytical approaches and technologies such as cluster analysis,neural networks,and fuzzy logic.

Accepted Answer

A) Interlinking 
B) Cost-benefit analysis 
C) Data mining 
D) Enterprise resource planning

Question 4

Generally,many organizations classify defects into _____ defects,_____ defects,and _____ defects.

Accepted Answer

A) critical; major; minor 
B) internal; external; customer-based 
C) product; process; delivery 
D) design; delivery; customer service

Question 5

Which category usually accounts for the highest proportion of quality costs in companies that have just started a quality cost program?

Accepted Answer

A) Appraisal 
B) Internal failure 
C) Prevention 
D) External failure

Question 6

A machined part is returned to the drilling department for rework.The additional labor that is used to correct the quality problem with the part is:

Accepted Answer

A) a prevention cost. 
B) an appraisal cost. 
C) an internal failure cost. 
D) an external failure cost.

Question 7

An advantage of cost of quality measures is that management receives a report where the unit of analysis is:

Accepted Answer

A) errors. 
B) defects. 
C) dollars. 
D) lost sales.

Question 8

Which of the following is NOT a finding resulting from managers beginning to define and isolate the full range of quality-related costs?

Accepted Answer

A) Quality-related costs were much larger than previously reported. 
B) Quality-related costs were also related to ancillary services such as purchasing and customer service departments. 
C) Most of the costs resulted from poor quality and were avoidable. 
D) Clear responsibility for action to reduce avoidable quality issues was assigned.

Question 9

_____ is a useful financial performance indicator,which managers use to prioritize improvement projects and gauge the effectiveness of total quality efforts.

Accepted Answer

A) Benchmarking 
B) Direct costing 
C) Cost of quality 
D) Qualitative Investment Analysis

Question 10

_____ increase managers' understanding of the data,particularly how conditions in one period compare with those in other periods.

Accepted Answer

The answer of _____ increase managers' understanding of the data,particularly...

Question 11

Performance measures and indicators should reflect the most important factors that predict customer satisfaction and business performance.

Accepted Answer

A) True 
 B)False

Question 12

Costs associated with measuring and analyzing data in order to detect and correct quality problems are:

Accepted Answer

A) internal correction costs. 
B) appraisal costs. 
C) prevention costs. 
D) external correction costs.

Question 13

ERP systems,due to their emphasis on data security,are designed to restrict the flow of data through an organization.

Accepted Answer

A) True 
 B)False

Question 14

Regulatory or legal compliance is an example of a:

Accepted Answer

A) financial outcome. 
B) leadership outcome. 
C) workforce-focused outcome. 
D) process effectiveness outcome.

Question 15

Which of the following is NOT a customer-focused outcome?

Accepted Answer

A) Response delays 
B) Warranty claims 
C) Customer retention 
D) Positive referral

Question 16

Managers review performance results for all of the following reasons EXCEPT to:

Accepted Answer

A) analyze industry reaction and consumer trends. 
B) assess organizational success and performance relative to competitors. 
C) understand how well progress on strategic objectives and action plans is being achieved. 
D) identify priorities for improvement and opportunities for innovation.

Question 17

The use of statistical techniques,such as regression and analysis of variance,will ensure an organization's ability to effectively analyze data.

Accepted Answer

A) True 
 B)False

Question 18

Leading organizations in information management rigorously justify the return on investment of each expenditure in information technology.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following statements about traditional accounting systems is INCORRECT?

Accepted Answer

A) They present an inadequate picture of manufacturing efficiency. 
B) They attach no value to rework or bottlenecks that impede processing. 
C) They allocate overhead costs to the products and services that use them. 
D) They usually are not structured to capture important cost-of-quality data.

Question 20

A simple type of index is called a _____ index,computed by dividing a current value by a base period value.

Accepted Answer

The answer of A simple type of index is called...

Exam 8: Performance Measurement And Information Management

Define each of the following terms and relate to the context (manufacturing or service)in which each term could be used: a)Number of nonconformities per unit b)Error per opportunity c)Nonconformity versus defect

According to Six Sigma standards,a defect rate of 2 per 1,000 is equivalent to:

_____ uses analytical approaches and technologies such as cluster analysis,neural networks,and fuzzy logic.

Generally,many organizations classify defects into ___ defects,_ defects,and ___ defects.

Which category usually accounts for the highest proportion of quality costs in companies that have just started a quality cost program?

A machined part is returned to the drilling department for rework.The additional labor that is used to correct the quality problem with the part is:

An advantage of cost of quality measures is that management receives a report where the unit of analysis is:

Which of the following is NOT a finding resulting from managers beginning to define and isolate the full range of quality-related costs?

_____ is a useful financial performance indicator,which managers use to prioritize improvement projects and gauge the effectiveness of total quality efforts.

_____ increase managers' understanding of the data,particularly how conditions in one period compare with those in other periods.

Performance measures and indicators should reflect the most important factors that predict customer satisfaction and business performance.

Costs associated with measuring and analyzing data in order to detect and correct quality problems are:

ERP systems,due to their emphasis on data security,are designed to restrict the flow of data through an organization.

Regulatory or legal compliance is an example of a:

Which of the following is NOT a customer-focused outcome?

Managers review performance results for all of the following reasons EXCEPT to:

The use of statistical techniques,such as regression and analysis of variance,will ensure an organization's ability to effectively analyze data.

Leading organizations in information management rigorously justify the return on investment of each expenditure in information technology.

Which of the following statements about traditional accounting systems is INCORRECT?

A simple type of index is called a _____ index,computed by dividing a current value by a base period value.