Deck 7: Quality

Question 1

External failure costs include warranty costs and managerial time handling customer complaints.

Answer 1

True

Question 2

In statistical process control (SPC),special or assignable causes of variation:

A)are intrinsic to the process and will always be there unless the process is changed.
B)are outside,nonrandom problems such as breakdown of machinery,material variation,or human error.
C)have everything to do with the underlying process and can only be eliminated by changing the process.
D)are of secondary importance in quality control procedures used to detect and eliminate variation.
E)can be present in a process that is fully capable of meeting specifications consistently.

Answer 2

B

Question 3

A formal service quality evaluation process:

A)measures the gap between service expectations and performance perceptions.
B)is relatively simple and applicable for all types of services.
C)is performed exactly the same as it is for goods.
D)is impossible to quantify if the service is highly intangible.
E)is most easily done on the buyer's premises.

Answer 3

A

Question 4

Examples of prevention costs include:

A)employee training and awareness costs.
B)costs of pre-certifying and qualifying suppliers.
C)inspection and testing costs.
D)employee training and awareness costs,and costs of pre-certifying and qualifying suppliers.
E)employee training and awareness costs,costs of pre-certifying and qualifying suppliers,and inspection and testing costs.

Question 5

A six sigma (6σ)approach to quality:

A)means there are no more than 25 defects per million opportunities.
B)was developed by Japanese companies in the 1950s.
C)has no connection to the concept of zero defects.
D)focuses on preventing defects by using data to reduce variation and waste.
E)has soft goals such as happier customers and employees.

Question 6

The real costs of quality:

A)tend to rise significantly with the cost of prevention.
B)rise significantly as defects increase in the finished product.
C)are incurred in the quality control department.
D)are easily identified by the accounting department.
E)are frequently overstated in an organization.

Question 7

The process capability index (Cp)combines process spread and tolerance into one index and indicates whether process variation is satisfactory.

Question 8

The allocation between buyer and seller of the costs incurred when materials are rejected is affected by the kind of materials rejected,trade customs,the buyer's cost accounting procedures,and the positions of strength of each organization.

Question 9

If a process is stable and predictable:

A)the process averages a varying number of standard deviations.
B)common causes have been eliminated through process change.
C)the probability of it meeting customer specifications can be predicted.
D)it produces the same exact result each time the activity is performed.
E)random causes have been detected and eliminated.

Question 10

A sampling technique in which every element in the population has an equal chance of being selected is called:

A)additive sampling.
B)sequential sampling.
C)100 percent testing.
D)random sampling.
E)cumulative sampling.

Question 11

A supplier certification program:

A)adds cost to the supplier,but provides few benefits to the supplier.
B)may improve quality,but at best will not raise costs.
C)always improves quality,but usually at a higher purchase price.
D)may enable the buyer and seller to lower costs and improve quality.
E)typically costs more to implement than the value of the quality improvement.

Question 12

Lean is a management philosophy that focuses on:

A)prevention,appraisal and internal failure costs.
B)data to reduce variation and waste.
C)maximizing customer value while eliminating waste.
D)the voice of the customer.
E)statistical quality control (SQC)techniques.

Question 13

Determination of the "best buy" is based on:

A)suitability for a given use.
B)a balance between price and quality.
C)technical considerations only.
D)the internal user or specifier's perceptions.
E)trade-offs among stakeholders (e.g. ,marketing,operations,and supply).

Question 14

Internal failure costs include the costs of inspection,testing,and measuring product or service quality.

Question 15

Process variation that are intrinsic to the process are:

A)common,nonassignable causes of variation.
B)special or assignable causes of variation.
C)prevention costs.
D)internal failure costs.
E)external failure costs.

Question 16

Quality function deployment:

A)seeks to understand what value represents to the customer.
B)is a system for deploying quality at supplier facilities.
C)provides direction on the appropriate level of product performance and which features should be included.
D)seeks to understand what value represents to the customer and is a system for deploying quality at supplier facilities.
E)seeks to understand what value represents to the customer,and provides direction on the appropriate level of product performance and which features should be included.

Question 17

Some estimates place the total costs of quality to be:

A)insignificant to the cost of the final product.
B)10-20 percent of the final product cost.
C)20-30 percent of the final product cost.
D)30-40 percent of the final product cost.
E)40-50 percent of the final product cost.

Question 18

Operator action is not required when process output exceeds the upper control limit (UCL)or dips below the lower control limit (LCL).

Question 19

ISO 9001:2015 provides a tested framework for a systematic approach to consistently delivering product that satisfies customers' expectations by:

A)dictating how quality requirements should be met in every organization.
B)dictating scope and flexibility for quality system implementation.
C)assuming all national cultures will meet quality requirements the same way.
D)assuming all business sectors will meet quality requirements the same way.
E)providing a set of standardized requirements a quality system must meet.

Question 20

Deming's 14 points stress the importance of:

A)setting numeric quotas.
B)using slogans and targets for the workforce as a means of improving quality.
C)annual rating or merit systems.
D)dual sourcing as a means of improving quality costs.
E)ceasing dependence on inspection.

Question 21

The upper and lower control limits on a process control chart are set using customer specifications.

Question 22

A process is deemed to be capable when there are no special assignable causes of variation,only common causes.

Question 23

Quality function deployment (QFD)is a comprehensive quality system that seeks to translate customer requirements into specifications.

Question 24

Reliability is the mathematical probability that a product will function for a stipulated period of time.

Question 25

Total quality management (TQM)is a philosophy and system of management focused on short-term success through statistical process control.

Question 26

The six sigma (6σ)approach to quality uses the five-step methodology of: define,measure,analyze,improve,and control (DMAIC).

Question 27

Lean focuses on maximizing profitability while minimizing waste in the form of the costs of quality (scrap,rework,and inspection).

Question 28

It is reasonable to expect a supplier to simultaneously improve quality and lower costs.

Question 29

Jidoka is a Japanese term for continuous improvement.

Question 30

ISO 14001:2015 focuses on compliance with federal,state,and provincial environmental laws and regulations.