Which of the following describes the quality definition of 'fitness for use'?

The correct answer is: The ability of a good or service to meet customer needs

The production of services differs from manufacturing as services

The correct answer is: produce outputs that are mostly intangible.

_____ is an organization’s value system and its collection of guiding principles.

The correct answer is: Culture

Internal customers of an organization are those people who:

The correct answer is: are a part of the organization who provide inputs and help to create
outputs for customers.

According to the Kano Model, the basic requirements that customers expect in a product and
which are generally not stated by customers but assumed as given, fall into the category of
_____.
The correct answer is: dissatisfiers

Costs associated with efforts to prevent errors are

The correct answer is: Prevention costs

The difference between an internal and an external customer is:

The correct answer is: Internal customers usually work in the business, external customers do
not.

Which among the following is NOT a good practice for human resource management for a TQ
organization?
The correct answer is: Have initiatives setting numerical goals for the workers
The term “voice of the customer” refers to:
The correct answer is: the customer requirements as expressed in the customer’s own terms.

_____ is the function performed in organizations that facilitates the most effective use of people
to achieve organizational and individual goals.
The correct answer is: Workforce management

Alpha Electronics, a cell phone manufacturing company, buys microphones and bluetooth
handsets from Beta Infotech which manufactures cell phones and cellular accessories. For Beta
Infotech, Alpha is a(n) _____.
The correct answer is: external customer

Which of the following is NOT an example of an external failure cost?

The correct answer is: The setting up of statistical acceptance sampling plans

Customer-focused organizations consider complaints as opportunities for improvement as:

The correct answer is: effectively resolving complaints increases customer loyalty and retention.

Costs associated with preparation of quality management system and inspection procedures for
inspection and testing should be charged to:
The correct answer is: Prevention costs

The most important aspect to remember when developing a training program is:
The correct answer is: who is being trained

Which of the following is reflected in benchmarking practices?

The correct answer is: Learning from experiences and best practices of others

The process of identifying other organizations that are best at some facet of your operations and
then modelling your operations after them is known as:
The correct answer is: benchmarking

The prevention cost of a company has been estimated as 15 percent of the total quality costs. If
the total quality costs is 12 percent of the total sales, and the total sales is $1,397,120, what is the
amount spent on prevention efforts by the company?
The correct answer is: $25, 148

The Kano Model of customer requirements uses the term “satisfiers” to refer to:
The correct answer is: the requirements that customers expressly say they want in a product.

Which of the following is most likely to be true of a customer-focused organization?

The correct answer is: They make it easy for the customers to conduct business.

In a manufacturing company, the machine shop is what kind of customer in relation to the human
resource department?
The correct answer is: Internal

Which among the following is NOT a value creation (core) process for a manufacturing
organization?
The correct answer is: Facilities management

Elements and sequence of Juran's quality trilogy are:

The correct answer is: planning, control, improvement

Which leader in quality management promoted the Quality Trilogy of quality planning, quality
control, and quality improvement?
The correct answer is: Joseph Juran

Which of the following is the final step in the Juran Trilogy?

The correct answer is: Quality improvement
Two "quality gurus" who were involved in training Japanese manufacturers in the 1950s were
The correct answer is: Juran and Deming

Which among the following is true regarding Deming Prize?

The correct answer is: It is awarded to all companies that meet a prescribed standard

What does the term 'kaizen' mean when applied to quality?

The correct answer is: Continuous improvement

Improving quality through small, incremental improvements is known as_______________.

The correct answer is: Kaizen

Which among the following is NOT a good practice for supply chain quality management?
The correct answer is: Not helping suppliers with quality assurance efforts so that your
competitors who buy from the same supplier does not benefit

The 'value perspective' defines quality of a product on the basis of

The correct answer is: the relationship of product benefits to price.

Evaluating the data collected during the previous phase and assessing how closely the results
match the original goals' refers to which phase of the PDCA cycle?
The correct answer is: Check

Which of the following is a principle of total quality management?

The correct answer is: Continuous process improvement

What is the first step in a control process?

The correct answer is: Set standards
According to point one of Deming’s 14 points for quality improvement, the responsibility of
improving a firm’s competitive position lies with ______.
The correct answer is: top management

According to Deming, most quality problems are due to

The correct answer is: Management

Which among the following is NOT true about conformance quality:

The correct answer is: It is the ability of a product or service to excel along one or more
performance dimensions

Which of the following is mainly responsible for quality management?

The correct answer is: Top level management

Which among the following is NOT true about Quality Control:

The correct answer is: It is more concerned with the processes that produce the final product, and
making sure that quality is part of each phase.

Which of the following are key components of a Total Quality Management system?
The correct answer is: Involves everyone, continual improvement, customer focus

Which of the following is NOT an important aspect of problem solving in the TQM approach?
The correct answer is: resorting to stop gap arrangements to temporarily manage the situation

Which of the following is the final step in the Juran Trilogy?

The correct answer is: Quality improvement
The difference between an internal and an external customer is:
The correct answer is: Internal customers usually work in the business, external customers do
not.

Internal customers of an organization are those people who:

The correct answer is: are a part of the organization who provide inputs and help to create
outputs for customers.

The Kano Model of customer requirements uses the term “satisfiers” to refer to:
The correct answer is: the requirements that customers expressly say they want in a product.

What should an organization focus on to achieve quality more economically?

The correct answer is: Prevention costs

To ensure a successful benchmarking outcome, the first step that the quality manager should take
is to:
The correct answer is: identify process areas for improvement

Which among the following is NOT true for designing a performance measurement system for
organizations?
The correct answer is: Measure should include only the past performance

The process of identifying other organizations that are best at some facet of your operations and
then modelling your operations after them is known as:
The correct answer is: benchmarking

The total sales for a company is $933,600. The cost of quality as a percentage of sales is 18. If
the appraisal costs for the company constitutes 42 percent, how much is the company spending
on appraisal?
The correct answer is: About $70,580
Which among the following is NOT a leading practice for strategic information management?
The correct answer is: Involving only top management in measurement activities

The four categories of costs associated with cost of quality are:

The correct answer is: External failure, internal failure, appraisal and prevention

Based on the TQM approach, which direction does the cost of prevention go as time goes on?
The correct answer is: It goes up

Which of the following is NOT an example of an external failure cost?

The correct answer is: The setting up of statistical acceptance sampling plans

In a manufacturing company, the machine shop is what kind of customer in relation to the human
resource department?
The correct answer is: Internal

Policy deployment in Japan is referred to as:

The correct answer is: Hoshin Kanri

Which among the following is NOT a value creation (core) process for a manufacturing
organization?
The correct answer is: Facilities management

Which of the following is reflected in benchmarking practices?

The correct answer is: Learning from experiences and best practices of others

The most important aspect to remember when developing a training program is:
The correct answer is: who is being trained
In reference to quality cost classifications, training and equipment design would fall in the ____
category.
The correct answer is: Prevention

Which among the following is NOT a good practice for human resource management for a TQ
organization?
The correct answer is: Have initiatives setting numerical goals for the workers

Costs that are incurred to find manufactured products, which do not meet specifications are
called:
The correct answer is: appraisal costs

Which among the following is NOT true about conformance quality:

The correct answer is: It is the ability of a product or service to excel along one or more
performance dimensions

_____ are a result of the design of the product and production system and generally account for
about 80 to 95 percent of the observed variation in the output of a production process.
The correct answer is: Common causes of variation

Unlike other national or regional quality awards, the ___________ does not provide a model
framework for organizing and prioritizing criteria.
The correct answer is: Deming Prize

In the late nineteenth century, many organizations adopted the Taylor system of scientific
management by separating
The correct answer is: planning from execution

Which among the following is true regarding Deming Prize?

The correct answer is: It is awarded to all companies that meet a prescribed standard
Which of the following perspectives of quality considers quality to be synonymous with
superiority or excellence?
The correct answer is: Transcendent perspective

ISO 9000 determines

The correct answer is: If the company practices its written procedures

What is ISO?
The correct answer is: International Organization for Standardization

Which of the following is NOT considered part of Total Quality?

The correct answer is: Six Sigma

An ISO 9001 certified business:

The correct answer is: Has shown that it has quality systems in place.

Which of the following is a principle of total quality management?

The correct answer is: Continuous process improvement

Which of the following is NOT a criterion for the Malcolm Baldrige Award?
The correct answer is: Defect rate

A consumer purchases a generic product at a cost of $5 instead of a branded product that sells for
$7.The consumer feels that there is no difference between the two products. This scenario
illustrates which of the following perspectives of quality?
The correct answer is: Value based

Improved conformance in production leads to which among the following situations for a
company?
The correct answer is: Lower costs through savings in rework and scrap

In Juran’s quality trilogy, the process of breaking through to unprecedented levels of

performance is called_______________
The correct answer is: quality improvement

Who among the following advocated strong emphasis on statistical and quantitative methods?
The correct answer is: Deming

According to Crosby, _____ is a performance standard which involves concentrating on

preventing defects rather than just finding and fixing them.
The correct answer is: Zero defects

What is the first step in a control process?

The correct answer is: Set standards

_____ is the first category in the Baldrige framework, signifying its importance in driving quality
and performance excellence throughout an organization.
Leadership

Which of the following perspectives of quality is most likely to be meaningful to people who
work in marketing because they are responsible for determining the needs and expectations of
the customers?
User perspective

Costs that are incurred to find manufactured products, which do not meet specifications are
called:
appraisal costs

The difference between an internal and an external customer is:

Internal customers usually work in the business, external customers do not.

Costs associated with preparation of quality management system and inspection procedures for
inspection and testing should be charged to:
Prevention costs

What should an organization focus on to achieve quality more economically?

Prevention costs

The process of identifying other organizations that are best at some facet of your operations and
then modelling your operations after them is known as:
Benchmarking

Internal customers of an organization are those people who:

are a part of the organization who provide inputs and help to create outputs for customers.

Which of the following is reflected in benchmarking practices?

Learning from experiences and best practices of others

Machine down time and downgrading costs are examples of which type of quality cost?
Internal-failure

According to the Kano Model, the basic requirements that customers expect in a product and
which are generally not stated by customers but assumed as given, fall into the category of
_____.
Dissatisfiers

Which of the following should be included during the planning stage for quality training?
Connecting training to business needs
The four categories of costs associated with cost of quality are:
External failure, internal failure, appraisal and prevention

Which among the following is NOT a leading practice for strategic information management?
Involving only top management in measurement activities

For a loan department of a bank, which among the following is NOT an appraisal cost?
Making document correction

Which of the following is true regarding the employee suggestion system in organizations?
It improves workers’ reasoning ability and leads to higher levels of peer recognition.

Which among the following is NOT true of support processes?

They drive the creation of products and services

Based on the TQM approach, which direction does the cost of failures go as time goes on?
It goes down

Which among the following is NOT a good practice for human resource management for a TQ
organization?
Have initiatives setting numerical goals for the workers

At the current level of service and complaints, a company expects to lose 54,000 customers over
the next 3 years, at the rate of a loss of $10 per customer. Through prevention efforts, the
company can reduce its annual loss by 10 percent by investing $12,000 in better technology and
training. What is the return on investment on quality efforts?
150 percent

Policy deployment in Japan is referred to as:

Hoshin Kanri

The prevention cost of a company has been estimated as 15 percent of the total quality costs. If
the total quality costs is 12 percent of the total sales, and the total sales is $1,397,120, what is the
amount spent on prevention efforts by the company?
$25, 148

According to point one of Deming’s 14 points for quality improvement, the responsibility of
improving a firm’s competitive position lies with ______.
top management

Unlike other national or regional quality awards, the ___________ does not provide a model
framework for organizing and prioritizing criteria.
Deming Prize

What does the term 'kaizen' mean when applied to quality?

Continuous improvement

Which among the following is NOT true about performance quality:

It is the degree to which a product or service conforms to the specifications

Which one of the following statements is FALSE?

Kaizen is the process of specifying design specifications for goods and services.
In Juran’s quality trilogy, the process of breaking through to unprecedented levels of
performance is called_______________
quality improvement

The criteria in ________________ are categorized into enablers and results.

European Quality Award

What is ISO?
International Organization for Standardization

The production of services differs from manufacturing as services

produce outputs that are mostly intangible.

According to Deming, most quality problems are due to

Management

An ISO 9001 certified business:

Has shown that it has quality systems in place.

Which among the following is true regarding Deming Prize?

It is awarded to all companies that meet a prescribed standard
Which of the following is true of quality management during the age of craftsmanship that
existed before the advent of industrial revolution?
Quality assurance was informal and efforts were made to ensure that quality was built into
products by the people who produced them.

What is the first step in a control process?

Set standards

Two "quality gurus" who were involved in training Japanese manufacturers in the 1950s were
Juran and Deming

Improving quality through small, incremental improvements is known as_______________.

Kaizen

Which of the following is true of the workforce management system proposed and designed by
Frederick W. Taylor?
The system changed many manufacturing jobs into mindless and mundane tasks

Elements and sequence of Juran's quality trilogy are:

planning, control, improvement

Which leader in quality management promoted the Quality Trilogy of quality planning, quality
control, and quality improvement?
The correct answer is: Joseph Juran

What is ISO?
The correct answer is: International Organization for Standardization

The prevention cost of a company has been estimated as 15 percent of the total quality costs. If
the total quality costs is 12 percent of the total sales, and the total sales is $1,397,120, what is the
amount spent on prevention efforts by the company?
The correct answer is: $25, 148

Which of the following is true regarding internal customers of an organization?

The correct answer is: They receive goods or services from suppliers within the organization.

Which among the following is NOT a leading practice for strategic information management?
The correct answer is: Involving only top management in measurement activities

Alpha Electronics, a cell phone manufacturing company, buys microphones and bluetooth
handsets from Beta Infotech which manufactures cell phones and cellular accessories. For Beta
Infotech, Alpha is a(n) _____.
The correct answer is: external customer

Customer-focused organizations consider complaints as opportunities for improvement as:

The correct answer is: effectively resolving complaints increases customer loyalty and retention.

According to the Kano Model, new or innovative features that customers do not expect or even
anticipate, fall under the category of _____.
The correct answer is: delighters

For a loan department of a bank, which among the following is NOT an appraisal cost?
The correct answer is: Making document correction

The difference between an internal and an external customer is:

The correct answer is: Internal customers usually work in the business, external customers do
not.

The most important aspect to remember when developing a training program is:
The correct answer is: who is being trained

Costs that are incurred to find manufactured products, which do not meet specifications are
called:
The correct answer is: appraisal costs

Machine down time and downgrading costs are examples of which type of quality cost?
The correct answer is: Internal-failure

Which of the following is NOT an example of an external failure cost?

The correct answer is: The setting up of statistical acceptance sampling plans

Based on the TQM approach, which direction does the cost of failures go as time goes on?
The correct answer is: It goes down

Which among the following is a barrier for building and sustaining a TQ organization?
The correct answer is: Organizational culture of 'command' and 'control' and driven by fear

Internal customers of an organization are those people who:

The correct answer is: are a part of the organization who provide inputs and help to create
outputs for customers.

Which among the following is NOT a value creation (core) process for a manufacturing
organization?
The correct answer is: Facilities management
Which among the following is NOT an internal failure cost?
The correct answer is: Cost resulting from legal actions and settlements

Cost incurred for defective products, after their shipment to customers is classified as:
The correct answer is: external failure costs

_____ is the function performed in organizations that facilitates the most effective use of people
to achieve organizational and individual goals.
The correct answer is: Workforce management

The total sales for a company is $933,600. The cost of quality as a percentage of sales is 18. If
the appraisal costs for the company constitutes 42 percent, how much is the company spending
on appraisal?
The correct answer is: About $70,580

Evaluating the data collected during the previous phase and assessing how closely the results
match the original goals' refers to which phase of the PDCA cycle?
The correct answer is: Check

Which of the following is a principle of total quality management?

The correct answer is: Continuous process improvement

_____ is the first category in the Baldrige framework, signifying its importance in driving quality
and performance excellence throughout an organization.
The correct answer is: Leadership

Which one of the following statements is FALSE?

The correct answer is: Kaizen is the process of specifying design specifications for goods and
services.
In the late nineteenth century, many organizations adopted the Taylor system of scientific
management by separating
The correct answer is: planning from execution

Which of the following is NOT a criterion for the Malcolm Baldrige Award?
The correct answer is: Defect rate

An ISO 9001 certified business:

The correct answer is: Has shown that it has quality systems in place.

The most frequently used framework for obtaining continuous improvement is:
The correct answer is: The PDCA cycle

What does the term 'kaizen' mean when applied to quality?

The correct answer is: Continuous improvement

With which quality expert would you associate the Quality Management Maturity Grid?
The correct answer is: Crosby

____ are a result of the design of the product and production system and generally account for
about 80 to 95 percent of the observed variation in the output of a production process.
The correct answer is: Common causes of variation

n Juran’s quality trilogy, the process of breaking through to unprecedented levels of performance
is called___________
The correct answer is: quality improvement

The new ISO 9001 standard is based on which of the following:

The correct answer is: PDCA principle
Which among the following is true regarding Deming Prize?
The correct answer is: It is awarded to all companies that meet a prescribed standard

According to Deming, most quality problems are due to

The correct answer is: Management

Which of the following is the final step in the Juran Trilogy?

The correct answer is: Quality improvement

Which of the following is NOT an important aspect of problem solving in the TQM approach?
The correct answer is: resorting to stop gap arrangements to temporarily manage the situation

The criteria in ________________ are categorized into enablers and results.

The correct answer is: European Quality Award

The criteria in ________________ are categorized into enablers and results.

The correct answer is: European Quality Award

Improved conformance in production leads to which among the following situations for a
company?
The correct answer is: Lower costs through savings in rework and scrap

The four categories of costs associated with cost of quality are:

The correct answer is: External failure, internal failure, appraisal and prevention

To ensure a successful benchmarking outcome, the first step that the quality manager should take
is to:
The correct answer is: identify process areas for improvement
Costs associated with efforts to prevent errors are
The correct answer is: Prevention costs

Which among the following is NOT a good practice for human resource management for a TQ
organization?
The correct answer is: Have initiatives setting numerical goals for the workers

What should an organization focus on to achieve quality more economically?

The correct answer is: Prevention costs

Which among the following is NOT true for designing a performance measurement system for
organizations?
Measure should include only the past performance

The Kano Model of customer requirements uses the term “satisfiers” to refer to:
The correct answer is: the requirements that customers expressly say they want in a product.

Which of the following is most likely to be true of a customer-focused organization?

The correct answer is: They make it easy for the customers to conduct business.

The primary reason for including quality responsibilities in all job descriptions for an
organization is to:
The correct answer is: reinforce the need for every employee to contribute to the quality effort

The most important aspect to remember when developing a training program is:
The correct answer is: who is being trained

In a manufacturing company, the machine shop is what kind of customer in relation to the human
resource department?
The correct answer is: Internal

The difference between an internal and an external customer is:

The correct answer is: Internal customers usually work in the business, external customers do
not.
Which of the following is reflected in benchmarking practices?
The correct answer is: Learning from experiences and best practices of others

Internal customers of an organization are those people who:

The correct answer is: are a part of the organization who provide inputs and help to create
outputs for customers.

At the current level of service and complaints, a company expects to lose 54,000 customers over
the next 3 years, at the rate of a loss of $10 per customer. Through prevention efforts, the
company can reduce its annual loss by 10 percent by investing $12,000 in better technology and
training. What is the return on investment on quality efforts?
The correct answer is: 150 percent

Costs associated with preparation of quality management system and inspection procedures for
inspection and testing should be charged to:
The correct answer is: Prevention costs

According to the Kano Model, the basic requirements that customers expect in a product and
which are generally not stated by customers but assumed as given, fall into the category of
_____.
The correct answer is: dissatisfiers

A paper mill supplies a corrugated container manufacturer with Kraft paper. The corrugated
container manufacturer uses Kraft paper to manufacture corrugated shipping containers that are
then sold to a cereal manufacturer. Which of the following is true?
The correct answer is: The corrugated container manufacturer is an external customer to the
paper mill.
Which of the following is NOT a prevention cost?
The correct answer is: Final Inspection

_____ is an organization’s value system and its collection of guiding principles.

The correct answer is: Culture

Which among the following is NOT true about Quality Control:

The correct answer is: It is more concerned with the processes that produce the final product, and
making sure that quality is part of each phase.

In Juran’s quality trilogy, the process of breaking through to unprecedented levels of

performance is called_______________
The correct answer is: Kaizen

_____ are a result of the design of the product and production system and generally account for
about 80 to 95 percent of the observed variation in the output of a production process.
The correct answer is: Common causes of variation

Who among the following advocated strong emphasis on statistical and quantitative methods?
The correct answer is: Deming

Which of the following is mainly responsible for quality management?

The correct answer is: Top level management

Unlike other national or regional quality awards, the ___________ does not provide a model
framework for organizing and prioritizing criteria.
The correct answer is: Transcendent perspective
Which of the following is a principle of total quality management?
The correct answer is: Continuous process improvement

Which among the following is NOT true about conformance quality:

The correct answer is: It is the ability of a product or service to excel along one or more
performance dimensions

Which among the following is a leading practice for strategic planning?

The correct answer is: Organizations identify key measures or indicators for tracking progress on
action plans

'Evaluating the data collected during the previous phase and assessing how closely the results
match the original goals' refers to which phase of the PDCA cycle?
The correct answer is: Check

With which quality expert would you associate the Quality Management Maturity Grid?
The correct answer is: Crosby

In Deming’s view, _____is the chief culprit of poor quality.

The correct answer is: variation

P-D-C-A stands for

The correct answer is: Plan-Do-Check-Act

What is ISO?
The correct answer is: International Organization for Standardization

Which of the following is NOT an important aspect of problem solving in the TQM approach?
The correct answer is: resorting to stop gap arrangements to temporarily manage the situation
Elements and sequence of Juran's quality trilogy are:
The correct answer is: planning, control, improvement

Which of the following perspectives of quality is most likely to be meaningful to people who
work in marketing because they are responsible for determining the needs and expectations of
the customers?
The correct answer is: User perspective

The 'value perspective' defines quality of a product on the basis of

The correct answer is: the relationship of product benefits to price.

Which among the following is NOTa leading practice for strategic information management?
The correct answer is: Involving only top management in measurement activities
For a loan department of a bank, which among the following is NOT an appraisal cost?
The correct answer is: Making document correction

Which among the following is NOT a value creation (core) process for a manufacturing
organization?
The correct answer is: Facilities management

The total sales for a company is $1,537,280. The cost of quality as a percentage of sales is 21. If
the external failure costs for the company constitutes 35 percent, how much is the company
spending on external failure?
The correct answer is: About $112,990

Which among the following is NOT an internal failure cost?

The correct answer is: Cost resulting from legal actions and settlements

Which of the following should be included during the planning stage for quality training?
The correct answer is: Connecting training to business needs

Which of the following is reflected in benchmarking practices?

The correct answer is: Learning from experiences and best practices of others

Which among the following is a barrier for building and sustaining a TQ organization?
The correct answer is: Organizational culture of 'command' and 'control' and driven by fear

The difference between an internal and an external customer is:

The correct answer is: Internal customers usually work in the business, external customers do
not.

The cost of scrap and rework, in a product quality cost system is categorized as:
The correct answer is: Internal failure costs

The primary reason for including quality responsibilities in all job descriptions for an
organization is to:
The correct answer is: reinforce the need for every employee to contribute to the quality effort
A paper mill supplies a corrugated container manufacturer with Kraft paper. The corrugated
container manufacturer uses Kraft paper to manufacture corrugated shipping containers that are
then sold to a cereal manufacturer. Which of the following is true?
The correct answer is: The corrugated container manufacturer is an external customer to the
paper mill.

In reference to quality cost classifications, training and equipment design would fall in the ____
category.
The correct answer is: Prevention

The four categories of costs associated with cost of quality are:

The correct answer is: External failure, internal failure, appraisal and prevention
Based on the TQM approach, which direction does the cost of failures go as time goes on?
The correct answer is: It goes down

The ultimate purchaser of a product or service is referred to as a(n) _____.

The correct answer is: consumer

In a manufacturing company, the machine shop is what kind of customer in relation to the human
resource department?
The correct answer is: Internal

The prevention cost of a company has been estimated as 15 percent of the total quality costs. If
the total quality costs is 12 percent of the total sales, and the total sales is $1,397,120, what is the
amount spent on prevention efforts by the company?
The correct answer is: $25, 148

Costs that are incurred to find manufactured products, which do not meet specifications are
called:
The correct answer is: appraisal costs

If the change is successful, implement it on a wider scale and continuously assess your results.
Which stage represents this statement in the PDCA Cycle?
The correct answer is: Act stage
What is the first step in a control process?
The correct answer is: Set standards

Evaluating the data collected during the previous phase and assessing how closely the results
match the original goals' refers to which phase of the PDCA cycle?
The correct answer is: Check
_____ are a result of the design of the product and production system and generally account for
about 80 to 95 percent of the observed variation in the output of a production process.
The correct answer is: Common causes of variation

The production of services differs from manufacturing as services

The correct answer is: produce outputs that are mostly intangible.

According to Deming, most quality problems are due to

The correct answer is: Management

Two "quality gurus" who were involved in training Japanese manufacturers in the 1950s were
The correct answer is: Juran and Deming

ISO 9000 determines

The correct answer is: If the company practices its written procedures

Which among the following is NOT true about conformance quality:

The correct answer is: It is the ability of a product or service to excel along one or more
performance dimensions

Which among the following is a leading practice for strategic planning?

The correct answer is: Organizations identify key measures or indicators for tracking progress on
action plans

P-D-C-A stands for

The correct answer is: Plan-Do-Check-Act

Which of the following is NOT considered part of Total Quality?

The correct answer is: Six Sigma
Which of the following is a description of the ‘quality control’ approach to managing quality?
The correct answer is: Reliance on inspection of materials and goods

In the late nineteenth century, many organizations adopted the Taylor system of scientific
management by separating
The correct answer is: planning from execution

Elements and sequence of Juran's quality trilogy are:

The correct answer is: planning, control, improvement

Which of the following is TRUE regarding the history of quality management?

The correct answer is: Deming's approach to quality management advocated continuous
improvement of the production process to reduce variation.

Unlike other national or regional quality awards, the ___________ does not provide a model
framework for organizing and prioritizing criteria.
The correct answer is: Deming Prize

The new ISO 9001 standard is based on which of the following:

The correct answer is: PDCA principle

Which among the following is a leading practice for strategic planning?

The correct answer is: Organizations identify key measures or indicators for tracking progress on
action plans

Which of the following are key components of a Total Quality Management system?
The correct answer is: Involves everyone, continual improvement, customer focus
Which among the following is NOTa leading practice for strategic information management?
The correct answer is: Involving only top management in measurement activities
To ensure a successful benchmarking outcome, the first step that the quality manager should take
is to:
The correct answer is: identify process areas for improvement

Which among the following is NOT true for designing a performance measurement system for
organizations?
The correct answer is: Measure should include only the past performance

Customer-focused organizations consider complaints as opportunities for improvement as:

The correct answer is: effectively resolving complaints increases customer loyalty and retention.

Based on the TQM approach, which direction does the cost of failures go as time goes on?
The correct answer is: It goes down

Internal customers of an organization are those people who:

The correct answer is: are a part of the organization who provide inputs and help to create
outputs for customers.

The difference between an internal and an external customer is:

The correct answer is: Internal customers usually work in the business, external customers do
not.

Which among the following is NOT an internal failure cost?

The correct answer is: Cost resulting from legal actions and settlements

_____ is an organization’s value system and its collection of guiding principles.

The correct answer is: Culture
At the current level of service and complaints, a company expects to lose 54,000 customers over
the next 3 years, at the rate of a loss of $10 per customer. Through prevention efforts, the
company can reduce its annual loss by 10 percent by investing $12,000 in better technology and
training. What is the return on investment on quality efforts?
The correct answer is: 150 percent

For a loan department of a bank, which among the following is NOT an appraisal cost?
The correct answer is: Making document correction

Which of the following should be included during the planning stage for quality training?
The correct answer is: Connecting training to business needs

The primary reason for including quality responsibilities in all job descriptions for an
organization is to:
The correct answer is: reinforce the need for every employee to contribute to the quality effort

Which among the following is a barrier for building and sustaining a TQ organization?
The correct answer is: Organizational culture of 'command' and 'control' and driven by fear

In reference to quality cost classifications, training and equipment design would fall in the ____
category.
The correct answer is: Prevention

Which of the following is true regarding internal customers of an organization?

The correct answer is: They receive goods or services from suppliers within the organization.

Which of the following is NOT a prevention cost?

The correct answer is: Final Inspection
According to the Kano Model, new or innovative features that customers do not expect or even
anticipate, fall under the category of _____.
The correct answer is: delighters

The process of identifying other organizations that are best at some facet of your operations and
then modelling your operations after them is known as:
The correct answer is: benchmarking

Which of the following is true regarding the employee suggestion system in organizations?
The correct answer is: It improves workers’ reasoning ability and leads to higher levels of peer
recognition.

Which among the following is NOT a good practice for supply chain quality management?
The correct answer is: Not helping suppliers with quality assurance efforts so that your
competitors who buy from the same supplier does not benefit

Which of the following is true of the workforce management system proposed and designed by
Frederick W. Taylor?
The correct answer is: The system changed many manufacturing jobs into mindless and mundane
tasks

Which of the following is TRUE regarding the history of quality management?

The correct answer is: Deming's approach to quality management advocated continuous
improvement of the production process to reduce variation.

In the late nineteenth century, many organizations adopted the Taylor system of scientific
management by separating

The correct answer is: planning from execution

Which of the following is mainly responsible for quality management?

The correct answer is: Top level management

Improved conformance in production leads to which among the following situations for a
company?
The correct answer is: Lower costs through savings in rework and scrap

Which among the following is true regarding Deming Prize?

The correct answer is: It is awarded to all companies that meet a prescribed standard

The criteria in ________________ are categorized into enablers and results.

The correct answer is: European Quality Award

With which quality expert would you associate the Quality Management Maturity Grid?
The correct answer is: Crosby

Which among the following is NOT true about Quality Control:

The correct answer is: It is more concerned with the processes that produce the final product, and
making sure that quality is part of each phase.

The 'value perspective' defines quality of a product on the basis of

The correct answer is: the relationship of product benefits to price.

According to Crosby, _____ is a performance standard which involves concentrating on

preventing defects rather than just finding and fixing them.
The correct answer is: Zero defects

Which of the following is NOT considered part of Total Quality?

The correct answer is: Six Sigma
The most frequently used framework for obtaining continuous improvement is:
The correct answer is: The PDCA cycle

Which of the following describes the quality definition of 'fitness for use'?
The correct answer is: The ability of a good or service to meet customer needs

_____ is the first category in the Baldrige framework, signifying its importance in driving quality
and performance excellence throughout an organization.
The correct answer is: Leadership

Which of the following perspectives of quality is most likely to be meaningful to people who
work in marketing because they are responsible for determining the needs and expectations of
the customers?
The correct answer is: User perspective

Costs that are incurred to find manufactured products, which do not meet specifications are
called:
The correct answer is: appraisal costs

The difference between an internal and an external customer is:

The correct answer is: Internal customers usually work in the business, external customers do
not.

Costs associated with preparation of quality management system and inspection procedures for
inspection and testing should be charged to:
The correct answer is: Prevention costs

What should an organization focus on to achieve quality more economically?

The correct answer is: Prevention costs
The process of identifying other organizations that are best at some facet of your operations and
then modelling your operations after them is known as:
The correct answer is: benchmarking

Internal customers of an organization are those people who:

The correct answer is: are a part of the organization who provide inputs and help to create
outputs for customers.

Which of the following is reflected in benchmarking practices?

The correct answer is: Learning from experiences and best practices of others

Machine down time and downgrading costs are examples of which type of quality cost?
The correct answer is: Internal-failure

According to the Kano Model, the basic requirements that customers expect in a product and
which are generally not stated by customers but assumed as given, fall into the category of
_____.
The correct answer is: dissatisfiers

Which of the following should be included during the planning stage for quality training?
The correct answer is: Connecting training to business needs

The four categories of costs associated with cost of quality are:

The correct answer is: External failure, internal failure, appraisal and prevention

Which among the following is NOTa leading practice for strategic information management?
The correct answer is: Involving only top management in measurement activities

For a loan department of a bank, which among the following is NOT an appraisal cost?
The correct answer is: Making document correction
Which of the following is true regarding the employee suggestion system in organizations?
The correct answer is: It improves workers’ reasoning ability and leads to higher levels of peer
recognition.

Which among the following is NOT true of support processes?

The correct answer is: They drive the creation of products and services
Which among the following is NOT a good practice for human resource management for a TQ
organization?
The correct answer is: Have initiatives setting numerical goals for the workers

At the current level of service and complaints, a company expects to lose 54,000 customers over
the next 3 years, at the rate of a loss of $10 per customer. Through prevention efforts, the
company can reduce its annual loss by 10 percent by investing $12,000 in better technology and
training. What is the return on investment on quality efforts?
The correct answer is: 150 percent

Policy deployment in Japan is referred to as:

The correct answer is: Hoshin Kanri

According to point one of Deming’s 14 points for quality improvement, the responsibility of
improving a firm’s competitive position lies with ______.
The correct answer is: top management

Unlike other national or regional quality awards, the ___________ does not provide a model
framework for organizing and prioritizing criteria.
The correct answer is: Deming Prize

What does the term 'kaizen' mean when applied to quality?

The correct answer is: Continuous improvement
Which one of the following statements is FALSE?
The correct answer is: Kaizen is the process of specifying design specifications for goods and
services.

In Juran’s quality trilogy, the process of breaking through to unprecedented levels of

performance is called_______________
The correct answer is: quality improvement

The criteria in ________________ are categorized into enablers and results.

The correct answer is: European Quality Award
The production of services differs from manufacturing as services
The correct answer is: produce outputs that are mostly intangible.

According to Deming, most quality problems are due to

The correct answer is: Management

Which among the following is true regarding Deming Prize?

The correct answer is: It is awarded to all companies that meet a prescribed standard

Which of the following is true of quality management during the age of craftsmanship that
existed before the advent of industrial revolution?
The correct answer is: Quality assurance was informal and efforts were made to ensure that
quality was built into products by the people who produced them.

Two "quality gurus" who were involved in training Japanese manufacturers in the 1950s were
The correct answer is: Juran and Deming

Improving quality through small, incremental improvements is known as_______________.

The correct answer is: Kaizen
Which of the following is true of the workforce management system proposed and designed by
Frederick W. Taylor?
The correct answer is: The system changed many manufacturing jobs into mindless and mundane
tasks