Deck 7: Process Improvement

Question 1

Data envelopment analysis (DEA) is best used in an environment of low divergence and high complexity.

Answer 1

False

Question 2

Benchmarking measures a firm's quality performance by comparing it to the performance of other companies that are known for being "best in class."

Answer 2

True

Question 3

The Deming wheel is a repetitive cycle where quality improvements result from continuous incremental turns of the wheel.

Answer 3

True

Question 4

DEA circumvents the need to develop standard costs for each service when comparing the efficiency of multiple service units that provide similar services.

Question 5

The objective of lean service is a purposeful flow of satisfied customers.

Question 6

A process capability index of two centered on the mean just meets Six Sigma standards.

Question 7

Data Envelopment Analysis (DEA) is a method for ________.

A) measuring a firm's quality performance by comparing it with other companies that are recognized as "best in class"
B) determining the feasibility of technological innovations in service operations
C) analyzing the gap between the service customer's expectations and perceptions
D) comparing the efficiency of multiple service units that provide similar services

Question 8

What are the two dimensions in the DEA strategic matrix?

A) Efficiency and profit.
B) Efficiency and quality.
C) Profit and quality.
D) Profit and location.

Question 9

ISO 9002 does not apply to organizations that perform design and service activities.

Question 10

The Malcolm Baldrige Quality Award measures the quality of products manufactured or services delivered.

Question 11

Which pair of parameters describes the "candidates for divestiture" quadrant in the DEA strategic matrix?

A) Low efficiency and low profit.
B) Low efficiency and high profit.
C) High efficiency and high profit.
D) High efficiency and low profit.

Question 12

Continuous improvement is a valuable concept, but it lacks measurement techniques.

Question 13

The objective of Six Sigma is to eliminate variation in process performance.

Question 14

The fishbone chart offers a structured approach for a team to identify, explore, and display graphically all of the possible causes of a problem.

Question 15

Because customers participate directly in the service process, the success of technological innovation is dependent upon ________.

A) the user-friendliness of the innovation
B) the ability of customers to pay for the service
C) customer acceptance
D) market research

Question 16

Data Envelopment Analysis (DEA), when used repeatedly, can facilitate the competitive strategy of cost leadership.

Question 17

Lean service is based upon the Toyota Production System.

Question 18

Process capability index measures the variability in a process.

Question 19

Pareto chart is an arrangement of data where the causes of a problem are arranged in ascending frequency of occurrence in order to highlight the most likely cause.

Question 20

Which of the following is not an element of a Quality Improvement Program?

A) Emphasizing subjective data over difficult-to-analyze objective data.
B) Maintaining SOPs for routine and crisis situations.
C) Assuming employees are self-motivated and innovative.
D) Focusing on customer satisfaction.

Question 21

Planning, control, and ________ are the three-component cycles required for ISO 9001 implementation.

A) reporting
B) documentation
C) testing
D) budgeting

Question 22

Which of the following statements is not part of Deming's 14-point philosophy?

A) Create constancy of purpose for improvements of product and service.
B) Promote numerical goals for the workforce.
C) Constantly and forever improve the system of production and service.
D) Cease dependence on mass inspection.

Question 23

All but one of the following are quality tools for analysis and problem solving.

A) Run chart.
B) Control chart.
C) Flow chart.
D) Bar chart.

Question 24

Which one the following is not a guiding principle of lean philosophy?

A) Satisfy the needs of customers by doing only value-added activities.
B) Be flexible in response to customer demands.
C) Define the value stream by flowcharting the process.
D) Eliminate waste.

Question 25

Which among the following is not a category that is eligible for the Malcolm Baldrige National Quality award?

A) Manufacturing companies.
B) Service firms.
C) Small businesses.
D) Government agencies.

Question 26

Which of the following categories carries the highest point value on the examination paper for the Malcolm Baldrige National Quality Award?

A) Leadership.
B) Strategic quality planning.
C) Management of process quality.
D) Customer focus and satisfaction.

Question 27

Which one of the following is not a principle of Deming's philosophy?

A) Customer satisfaction.
B) Management by facts.
C) Employee loyalty.
D) Respect for people.