A tool that is not used for quality management is ________.

D. Redesign

The four dimensions of quality that are sometimes used to determine fitness for use of a product are

B. performance, special features, conformance, and reliability

A tool that depicts process variation graphically is a(n) _________.

C. Control Chart

Which isn't a cost of quality?

C. Extended Service Contracts

The Deming Prize was established by the _________.

B. Japanese

Lost production time, scrap, and rework are examples of ________.

A. internal failure costs

Warranty service, processing of complaints, and costs of litigation are examples of ________.

B. external failure costs

Costs of inspectors, testing, test equipment, and labs are examples of ________.

C. appraisal costs

Loss of business, liability, productivity and costs are consequences of _______.

C. Poor Quality

Quality planning and administration, quality training, and quality control procedures are examples of

D. prevention costs

. The purpose of the Malcolm Baldrige National Quality Award is to _______.

D. all of the above

Fixing a problem will often cost money; to minimize these costs it is best to find and fix the problem

_______.

C. during the design phase

Deciding how much to invest in the prevention of defects can be analyzed using ________.

D. Return on Quality

ISO 9000 standards do not have a requirement for ________.

D. training

The Baldrige award is based on seven categories. Which is not one of those?

A. Relative profitability

A quality circle is ________.

D. a voluntary group of employees

ISO 9000 currently requires _____ of a certified organization

E. Continuous improvement

The quality control improvement tool which distinguishes between the "important few" and the "trivial

many" is __________

C. Pareto analysis

The quality control improvement tool that resembles a "fishbone" is ________.

D. cause-and-effect diagrams

TQM stands for:

D. Total Quality Management

Which of the following is an element of TQM?

E. all of the above

Management behaviors supporting an organizational culture that encourages continuous improvement

include which of the following?

(I) develop a vision statement for the organization

(II) develop a reward system that promotes the philosophy

(III) institute continuous training programs

(IV) make decisions that adhere to the philosophy

B. I, II, III, and IV

The tool that is useful in documenting the current process is:

D. a flow chart
The tool that is useful in the collection and organization of data is:

C. a check sheet

A quality improvement technique that involves the sharing of thoughts and ideas in a way that
encourages

unrestrained collective thinking is:

C. brainstorming

In order for TQM to be successful, it is essential that most of the organization be _________.

E. in agreement with the philosophy and its goals

Which of the following raises quality risks?

B. outsourcing to less-developed countries

Focusing attention on the most important problem areas is referred to as

D. Pareto analysis

A chart showing the number of occurrences by category would be used in:

A. Pareto analysis

Cause-and-effect diagrams are sometimes called:

B. fishbone (Ishikawa) diagrams

The process of identifying other organizations that are best at some facet of your operations, and then

modeling your organization after them is known as:

C. benchmarking

Giving workers responsibility for quality improvements and authority to make changes is known as:

D. employee empowerment

The typical difference between "quality circles" and "continuous improvement teams" is ________.

D. the amount of employee empowerment

Which of the following is not a goal of process improvement?

D. identifying the cause of a problem

Managers have obligations to a wide variety of stakeholders such as shareholders, employees and

customers. When considering outsourcing production to offshore suppliers, managers have to weigh __.

I) Cost benefits that might make shareholders wealthier

II) Quality issues that might make firms less productive and/or products riskier

III) The investments already tied up in relationships with existing suppliers

E. I, II and III

Focusing a supply chain on ________________ is a modern way of ensuring high quality inputs and a
ready supply of process-improvement ideas.

B. close, collaborative ties with suppliers

As regards quality risks, which of the following would be least likely to involve outsourcing to less-
developed countries?

d. pharmaceuticals
If customer satisfaction doesn't always lead to customer loyalty, firms may need to focus additional
effort on __________ strategies

B. Retenion

Before a dimension of quality can be made operationally useful, it must be restated in some
___________form

D. measurable

1. Approving the effort that occurs during the production process is known as acceptance
sampling. FALSE
2. Statistical process control is the measurement of rejects in the final product. FALSE
3. The optimum level of inspection occurs when we catch at least 98.6 percent of the defects.
FALSE
4. The optimum level of inspection minimizes the sum of inspection costs and the cost of passing
defectives. TRUE
5. Processes that are in control eliminate variations. FALSE

6. High-cost, low-volume items often require careful inspection since we make them so
infrequently. TRUE
7. Low-cost, high-volume items often require more intensive inspection than other types of items.
FALSE
8. A lower control limit must by definition be a value less than an upper control limit. TRUE
9. Attributes need to be measured, whereas variable data can be counted. FALSE
10. The amount of inspection we choose can range from no inspection at all to inspecting each item
numerous times. TRUE
11. The amount of inspection needed is governed by the costs of inspection and the expected costs
of passing defective items. TRUE
12. The purpose of statistical process control is to ensure that historical output is random. FALSE
13. A process that exhibits random variability would be judged to be out of control. FALSE
14. If a point on a control chart falls outside one of the control limits, this suggests that the process
output is nonrandom and should be investigated. TRUE
15. An x-bar control chart can only be valid if the underlying population it measures is a normal
distribution. FALSE
16. The sample average typically is normally distributed regardless of the underlying distribution of
the process. TRUE
17. A process can be free of nonrandom variation and still not meet specifications. TRUE
 18. The sampling distribution exhibits less variation than the underlying process. TRUE

Quality
ability of product or service to consistently meet or exceed customer expectations

Deming Prize
prize established by the Japanese and awarded annually to firms that distinguish themselves with
quality management programs

Quality of Design
intention of designers to include or exclude features in product or service

Quality of Conformance
degree to which goods or services conform to intent of designers

Prevention Costs
costs of preventing defects from occurring

Failure Costs
costs caused by defective parts or products or by faulty services

Internal Failures
failures discovered during production

External Failures
failures discovered after delivery to customer; these costs are much greater than internal failure costs

Return on Quality
approach that evaluates financial return of investments in quality

Appraisal Costs
costs of activities designed to ensure quality or uncover defects

Baldrige Award
annual award given by US government to recognize quality achievements of US companies; purpose is
to stimulate efforts to improve quality, recognize quality achievements, and publicize successful
programs
European Quality Award
most prestigious european award for organizational excellence

ISO 9000
set of international standards on quality management and quality assurance, critical to international
business; ensure that its products or services conform to its customers' requirements

ISO 14000
set of international standards for assessing company's environmental performance

ISO 24700
set of international standards that pertains to quality and performance of office equipment that
contains reused components

Total Quality Management (TQM)

philosophy that involves everyone in organization in continual effort to improve quality and achieve
customer satisfaction; management plays critical role here

Fail-safing
elements are incorporated in product or service design that make it virtually impossible for employee to
do something incorrectly; mistake-proof; (pokayoke)

Continuous Improvements
philosophy that seeks to make never-ending improvements to process of converting inputs into output;
"just because it isn't broke doesn't mean it can't be improved"

Kaizen
Japanese term for continuous improvement

Quality at the Source

philosophy of making each worker responsible for quality of his or her work; "do it right the first time"

Plan-do-study-act (PDSA)
framework for problem solving and improvement activities in continual nature

Process Improvement
systematic approach to improving process

Six Sigma
business process for improving quality, reducing costs, and increasing customer satisfaction

Flowchart
diagram of step in process; help identifying possible points in process where problems occur

Check Sheet
tool for recording and organizing data to identify problem; makes it easy to see where defects on
product

Histogram
chart of empirical frequency distribution

Pareto Analysis
technique for classifying problem areas according to degree of importance, and focusing on most
important; 80-20 rule (80% of problems come from 20% of items

Scatter Diagram
graph that shows degree and direction of relationship between two variables

Control Chart
statistical chart of time-ordered values of sample statistic; monitor process to see if process output is
random; help detect presence of correctable causes of variation; also indicate when problem occurred
and give insight into what caused problem

Cause-and-Effect Diagram
diagram used to search for cause(s) of problem; also called fishbone diagram

Run Chart
tool for tracking results over period of time; identify trends or other patterns that may be occurring

Brainstorming
technique for generating free flow of ideas in group of people

Quality Circles
groups of workers who meet to discuss ways of improving products or processes

Benchmarking
process of measuring performance against best in the same or another industry

Walter Shewhart
"father of statistical quality control", developing control charts for analyzing output of processes to
determine when corrective action is necessary

Deming
14 points needed to achieve quality in organization; cause of inefficiency and poor quality is system and
management's responsibility to correct system; need to reduce variation in output by distinguishing
between special causes of variation and common causes of variation

Joseph Juran
quality as fitness-for-use; 80% of quality defects are management controllable; management has
responsibility to correct deficiency; also described quality management as trilogy of quality planning,
quality control, and quality improvements

Armand Feigenbaum
"cost of nonconformance"; quality as "total field" and it is customer who define quality

Crosby
zero defects "do it right the first time"; prevention but there will always be some level of defectives;
quality is free; quality efforts as way to reduce costs and pay for themselves

Ishikawa
cause-and-effect diagram; internal customer - next person in process

Taguchi
determining cost of poor quality; cost to society of poor quality

Ohno and Shingo

kaizen - continuous improvement at Toyota

There is a positive link between quality and productivity. TRUE

Because "courtesy" is subjective, it can't be considered a factor in service quality. FALSE

Modern quality management emphasizes finding and correcting mistakes before they reach the
customer - catching the errors before they are shipped. FALSE

Quality of conformance refers to the degree to which goods and services conform to the intent of the
designers as document in the specifications. TRUE

Six Sigma programs have bother management and technical components. TRUE

Reducing the variations in our product or serve is an important key to perceived quality. TRUE
The Benchmark organization must be chosen from the same industry in order for its methods to be
applicable. FALSE

The primary difference between internal failures and external failures is time and place of discovery of
the failure. TRUE

Quality at the source means returning all defects to the source - our vendors. FALSE

Consumer expectation tend to change over time affecting their perception of service quality. TRUE

Medical malpractice claims are an example of how poor quality can affect an organization through
liability. TRUE

Convenience, Reliability, and Assurance are dimensions of service quality. TRUE

If the majority of service customers are satisfied, it is likely that all service customers will be satisfied.
FALSE

In market research, a group of consumers who express their opinions about a product or service is called
a steering committee. FALSE

When considering service quality, convenience often is a major factor. TRUE

Three key philosophies in TQM are continuous improvement, involvement of everyone in the
organization, and customer satisfaction. TRUE

The purpose of benchmarking is to establish a standard against which the organizations performance
can be judged and to identify a model for possible improvement. TRUE

Zero defects requires 100% inspection of the final product. FALSE

A tool that is not used for quality management is ________.

D. Redesign

The four dimensions of quality that are sometimes used to determine fitness for use of a product are

B. performance, special features, conformance, and reliability

A tool that depicts process variation graphically is a(n) _________.

C. Control Chart
Which isn't a cost of quality?

C. Extended Service Contracts

The Deming Prize was established by the _________.

B. Japanese

Lost production time, scrap, and rework are examples of ________.

A. internal failure costs

Warranty service, processing of complaints, and costs of litigation are examples of ________.

B. external failure costs

Costs of inspectors, testing, test equipment, and labs are examples of ________.

C. appraisal costs

Loss of business, liability, productivity and costs are consequences of _______.

C. Poor Quality

Quality planning and administration, quality training, and quality control procedures are examples of

D. prevention costs

. The purpose of the Malcolm Baldrige National Quality Award is to _______.

D. all of the above

Fixing a problem will often cost money; to minimize these costs it is best to find and fix the problem

_______.

C. during the design phase

Deciding how much to invest in the prevention of defects can be analyzed using ________.

D. Return on Quality

ISO 9000 standards do not have a requirement for ________.

D. training

The Baldrige award is based on seven categories. Which is not one of those?

A. Relative profitability

A quality circle is ________.

D. a voluntary group of employees

ISO 9000 currently requires _____ of a certified organization

E. Continuous improvement

The quality control improvement tool which distinguishes between the "important few" and the "trivial

many" is __________

C. Pareto analysis

The quality control improvement tool that resembles a "fishbone" is ________.

D. cause-and-effect diagrams
TQM stands for:

D. Total Quality Management

Which of the following is an element of TQM?

E. all of the above

Management behaviors supporting an organizational culture that encourages continuous improvement

include which of the following?

(I) develop a vision statement for the organization

(II) develop a reward system that promotes the philosophy

(III) institute continuous training programs

(IV) make decisions that adhere to the philosophy

B. I, II, III, and IV

The tool that is useful in documenting the current process is:

D. a flow chart

The tool that is useful in the collection and organization of data is:

C. a check sheet

A quality improvement technique that involves the sharing of thoughts and ideas in a way that
encourages

unrestrained collective thinking is:

C. brainstorming
In order for TQM to be successful, it is essential that most of the organization be _________.

E. in agreement with the philosophy and its goals

Which of the following raises quality risks?

B. outsourcing to less-developed countries

Focusing attention on the most important problem areas is referred to as

D. Pareto analysis

A chart showing the number of occurrences by category would be used in:

A. Pareto analysis

Cause-and-effect diagrams are sometimes called:

B. fishbone (Ishikawa) diagrams

The process of identifying other organizations that are best at some facet of your operations, and then

modeling your organization after them is known as:

C. benchmarking

Giving workers responsibility for quality improvements and authority to make changes is known as:

D. employee empowerment

The typical difference between "quality circles" and "continuous improvement teams" is ________.

D. the amount of employee empowerment

Which of the following is not a goal of process improvement?

D. identifying the cause of a problem

Managers have obligations to a wide variety of stakeholders such as shareholders, employees and

customers. When considering outsourcing production to offshore suppliers, managers have to weigh __.

I) Cost benefits that might make shareholders wealthier

II) Quality issues that might make firms less productive and/or products riskier

III) The investments already tied up in relationships with existing suppliers

E. I, II and III

Focusing a supply chain on ________________ is a modern way of ensuring high quality inputs and a
ready supply of process-improvement ideas.

B. close, collaborative ties with suppliers

As regards quality risks, which of the following would be least likely to involve outsourcing to less-
developed countries?

d. pharmaceuticals

If customer satisfaction doesn't always lead to customer loyalty, firms may need to focus additional
effort on __________ strategies

B. Retenion

Before a dimension of quality can be made operationally useful, it must be restated in some
___________form

D. measurable