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1. Choose the incorrect statement regarding the need for quality.
a) Markets have become more competitive

b) Quality provides sustained performance
c) Quality provides customer satisfaction
d) It is the trend nowadays to introduce quality
Answer: d
Explanation: Due to an increase in marketing competitiveness, quality is desired in any organization. Due to systema
tic standards and procedures involved, it will provide sustained performance. Consequently, we will have customer s
atisfaction. It is wrong to interpret that quality is necessary because it is a global trend.
2. Michael bought a new washing machine which is not performing its primary function of washing clothes properly
. What should the executive at customer care suggest Michael?
a) To sell the washing machine

b) To buy a new washing machine
c) To assure the customer that a specialist will visit their house the following day
d) To lease the washing machine
Answer: c
Explanation: A new washing machine is not washing clothes properly is definitely a disappointment for the custome
r. To ensure customer satisfaction the executive at customer care very rightly assured that the specialist will look int
o the reasons for malfunctioning of the washing machine. It is incorrect to suggest selling, buying or leasing the was
hing machine without even looking at the problem.
3. Quality is fitness for use. Identify the quality guru who said this.
a) Deming
b) Crosby
c) Juran
d) Taguchi
Answer: c
Explanation: Juran said that quality is fitness for use. The concept of fitness for use is applied to all products and ser
vices.
4. How can quality be quantified? (Q=Quality, P=Performance, E=Expectations)
a) Q=P/E
b) Q=P+E
c) Q=P-E
d) Q=P*E
Answer: a
Explanation: Mathematically, quality can be quantified as Q=P/E. Here, if Q is greater than 1, the customer has a go
od feeling about the performance of the product or service.
5. Quality is conformance to requirements. Identify the quality guru who said this.
a) Ishikawa
b) Crosby
c) Ohno
d) Deming
Answer: b
Explanation: Crosby said that quality is conformance to requirements. Here, requirements mean both product require
ments and customer requirements.
6. Quality is a predictable degree of uniformity and dependability at a low cost and suited to the market. Identify the
quality guru who said this.
a) Ishikawa
b) Shingo
c) Deming
d) Harrington
Answer: c
Explanation: Deming said that quality is a predictable degree of uniformity and dependability at low cost and suited
to the market. Deming’s ‘14 points’ is widely used in quality improvement.
7. What does the abbreviation A.S.Q stand for?
a) American Society for Quality

b) American Standard of Quality
c) Asian Society for Quality
d) Asian Standard for Quality
Answer: a
Explanation: A.S.Q. stands for American Society for Quality. It is a community of quality professionals. It was estab
lished on February 16, 1946. George D. Edwards was its first president.
8. According to Deming’s Quality Chain Reaction, quality improvement results in decreased productivity.
a) True
b) False
Answer: b
Explanation: According to Deming’s Quality Chain Reaction, quality improvement results in improved productivity,
profits, customer satisfaction, and market share. It also results in reduced prices and costs.
9. Quality is in its essence, a way of managing the organization. Identify the quality guru who said this.
a) Deming
b) Juran
c) Feigenbaum
d) Shingo
Answer: c
Explanation: Feigenbaum said that quality is in its essence, a way of managing the organization. He developed the c
oncept of Total Quality Control which in turn led to the concept of Total Quality Management.
10. Quality is the minimum loss imparted by a product to society from the time product is shipped. Identify the quali
ty guru who said this.
a) Shingo
b) Taguchi
c) Crosby
d) Juran
Answer: b
Explanation: Taguchi said that quality is the minimum loss imparted by a product to society from the time product is
shipped. He also introduced the concept of the loss function.
11. According to ISO, Quality is the totality of features and characteristics of a product or service that bear on its abi
lity to satisfy stated and implied needs of the customer.
a) False
b) True
Answer: b
Explanation: This definition is given by the ISO (International Organization for Standardization). It is a universally a
ccepted definition of quality.
12. Shawn ordered pizza online. He received the pizza 15 minutes before the scheduled delivery time. He also receiv
ed cash back on the amount he had paid for the pizza. What can you infer?
a) Customer expectation of the service is less than customer perception of the service
b) Customer expectation of the service is equal to the customer perception of the service
c) Customer expectation of the service is greater than customer perception of the service
d) Customer expectation of the service and customer perception of the service cannot be compared
Answer: a
Explanation: The primary service was to deliver the pizza within the scheduled delivery time in good condition. By
arriving early and providing cash back, the customer expectation of the service must be less than the customer perce
ption of the service.
13. The systematic activities and planned activities which provide adequate confidence that the manufactured produc
ts are meeting the requirements is called ______
a) Quality assurance
b) Quality control
c) Inspection
d) Sampling
Answer: a
Explanation: Quality assurance is the systematic activities and planned activities which provide adequate confidence
that the manufactured products are meeting the requirements. Quality control is a system of routine technical activit
ies to measure and control the quality of products. Inspection is the formal evaluation of certain characteristics in a p
roduct to determine its acceptability. Sampling is a statistical analysis process.
14. Choose the incorrect statement related to quality improvement.
a) Reduces rework
b) Leads to greater uniformity of product
c) Increases output with lowered cost
d) Increases machine time
Answer: d
Explanation: Quality improvement reduces rework. It leads to greater uniformity of product. It increases output with
lowered cost as all the unnecessary cost involved is removed and productivity also increases. It reduces machine tim
e through proper quality management.
15. A senior quality engineer during a training session trains his juniors about a particular common defect that has b
een found in their assembly. He has formulated a plan which will rectify the defect and ensure that the same defect d
oes not pass further to the customers. Which of the following inference is incorrect?
a) The organization has ensured that customer satisfaction is retained

b) The juniors will be capable of preventing the defect to pass further to the customers
c) The senior has understood that quality is correcting and preventing the loss, not living with loss
d) The customer forced them to rectify the defect
Answer: d
Explanation: Quality is basically customer satisfaction. The training will help in correcting and preventing the defect
to not reach further to the customers. The loss involved in passing a defective product is also scraped off. We canno
t definitely conclude that the customer has forced them to rectify the defect as nothing is mentioned about the same.
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1. The two categories of products are _____ and _____
a) Goods, Services
b) Media, Education
c) Pencil, Car
d) Hospitality, Calculator
Answer: a
Explanation: Product is the output of any process. Goods and Services are the two types of products. A pencil, car, a
nd a calculator are types of Goods. Similarly, media, hospitality, and education fall under the category of Services.
2. Which of the following does not fit in the category of Goods?
a) Cell phone
b) Television
c) Insurance
d) Bike
Answer: c
Explanation: Cell phones, television, and bike are considered as Goods. Insurance fits into the category of Service.
3. Which of the following does not fit in the category of Services?
a) Banking
b) Transportation
c) Pen
d) Health care industries
Answer: c
Explanation: Banking, transportation and health care industries come under the Service category of a product. A pen
fits into the Goods category of a product.
4. Service also includes support activities within companies, e.g., payroll preparation, secretarial support, and plant
maintenance.
a) True
b) False
Answer: a
Explanation: Service is performed for someone else. Service also includes support activities within companies, e.g.,
payroll preparation, secretarial support, and plant maintenance.
5. The property that is possessed with a product and that is intended to meet certain customers’ needs and thereby pr
ovide customer satisfaction is called _________
a) Product Tree
b) Product Feature
c) Product Cycle
d) Product Design
Answer: b
Explanation: The property that is possessed by a product and that is intended to meet certain customer’s needs and th
ereby provide customer satisfaction is called a product feature. It refers to the quality of design.
6. Which of the following does not fit in the category of Product Feature?
a) Fuel consumption of a vehicle
b) Dimensions of a mechanical component
c) The owner of the product
d) The viscosity of a chemical
Answer: c
Explanation: Fuel consumption of a vehicle, dimensions of a mechanical component, the viscosity of a chemical, the
uniformity of the voltage of an electric power supply are some of the examples of product features. The owner of th
e product is not a product feature.
7. Someone who receives or is affected by the product or process is called a _______
a) Customer
b) Manager
c) Founder
d) Co-founder
Answer: a
Explanation: The customer is someone who receives or is affected by the product or process. It can be a person or it
can also be a company.
8. The two types of customers are ______ and ______
a) Founder, Co-founder
b) Internal, External
c) Government, People
d) CEO, CFO
Answer: b
Explanation: Customers can be either internal or external. The customers outside the company who pay for the good
s or services offered are called external customers. The customers who are related to the company and who may or
may not pay for the goods or services offered are called internal customers.
9. Which of the following does not fit in the category of External Customers?
a) Clients/end users who buy the product

b) Government regulatory bodies
c) Manager of a company
d) Public
Answer: c
Explanation: The manager of the company is an internal customer. He doesn’t make any purchase for the goods or s
ervices offered by the company but his presence and his responsibilities hold tremendous importance to the compan
y.
10. Which of the following does not fit in the category of Internal Customers?
a) Stakeholders
b) Public
c) Shareholders
d) Employees of a company
Answer: b
Explanation: The public pays for the service they receive and hence they are external customers. The stakeholders a
nd shareholders are indirect internal customers. The employees of the company are direct internal customers.
11. Sam purchased a pen from the market. The pen was not working clearly, legibly and smoothly. Where did the m
anufacturer fail in terms of satisfying the needs of the customer?
a) The manufacturer failed to satisfy the implied need of the product
b) The manufacturer failed to impress his boss
c) The manufacturer failed to maintain the reputation of the company
d) The manufacturer failed to impress his supplier
Answer: a
Explanation: The manufacturer failed to satisfy the implied need of the product. Every product has certain stated and
implied needs associated with it. The manufacturer may have failed to impress his boss, maintain the reputation of t
he company but all these failures do not have a relation with customer satisfaction. The manufacturer could have act
ually complained to the supplier if the raw materials were found defective.
12. The stated needs are the needs which the customer specifies for procurement of goods or services.
a) True
b) False
Answer: a
Explanation: For example, the price range of a car is a stated need. Similarly, a specific function of the car can also b
e considered to be a stated need of the customer.
13. The state of affairs in which customers feel that their expectations have been met by the product features is know
n as ______________
a) Customer Satisfaction
b) Customer Attraction
c) Customer Loyalty
d) Customer Reputation
Answer: a
Explanation: The state of affairs in which customers feel that their expectations have been met by the product featur
es is known as customer satisfaction. A newly bought laptop performing all its intended functions will bring in custo
mer satisfaction.
14. The state of affairs in which deficiencies (in goods or services) result in customer annoyance and complaints is k
nown as ______________
a) Customer Compliance
b) Customer Needs
c) Customer Trust
d) Customer Dissatisfaction
Answer: d
Explanation: The state of affairs in which deficiencies (in goods or services) result in customer annoyance, complain
ts, claims, and so on is known as customer dissatisfaction. A newly bought mobile phone with ‘hanging problem’ wi
ll result in customer dissatisfaction.
15. Which of the following is not a measure of Product Deficiency?
a) Errors
b) Defects
c) Off-specification
d) Mass of the mobile phone
Answer: d
Explanation: A product deficiency is a product failure that results in product dissatisfaction. Deficiencies are stated i
n different units, such as errors, failures, defects, off-specification, etc. Freedom from deficiencies refers to the quali
ty of conformance.

1. Which of the following is a dimension of ‘product quality’?
a) Machinability
b) Probability
c) Customer Satisfaction
d) Durability
Answer: d
Explanation: There are 9 dimensions of ‘product quality’. The dimensions of product quality are performance, featur
es, conformance, reliability, durability, serviceability, responsiveness, aesthetics, and reputation.
2. The nominal size of a product is 30 mm. The acceptable industrial limits are from 29.98 mm to 30.02 mm. After
manufacturing, the quality engineer finds the lower limit of the manufactured product to be 29.00 mm while the upp
er limit is 30.01 mm. What can you infer from the given scenario?
a) There is no failure because both the upper and lower limits of the manufactured product are within the industrial s
tandard limits
b) There is a failure because the upper limit is below 30.02 mm
c) There is a failure because the lower limit is below 29.98 mm
d) We cannot comment on the failure of the dimensions of the manufactured product
Answer: c
Explanation: The manufactured product fails to comply with the industrial standards of the product. The lower limit
of the manufactured product has to be within the range of 29.98 mm to 30 mm. The upper limit of the manufactured
product has no issues because 30.01 mm lies between 30 mm and 30.02 mm.
3. Priyanka bought a new mobile phone for herself. She explained to her friend that the mobile phone has a camera,
Facebook facility, and music facility in addition to the basic functions like phone calls and messaging. Which dimen
sion of ‘product quality’ is Priyanka referring to?
a) Aesthetics
b) Conformance
c) Features
d) Reputation
Answer: c
Explanation: Features are the secondary characteristics of a product. Here, camera, Facebook facility, and music faci
lity are the features of a mobile phone. The facility of phone calls and messaging are its primary characteristics.
4. Suresh calls up the customer care to complain regarding his new earphones. He can’t listen to the other side when
his earphones are connected to his mobile phone. Which dimension of ‘product quality’ has the earphones failed to c
omply with?
a) Performance
b) Features
c) Aesthetics
d) Reputation
Answer: a
Explanation: The ‘performance’ of the new earphone is not acceptable. The primary function of an earphone is not
met here.
5. Andrew bought a new mobile phone from the market. While studying its specifications, he realizes that the mobil
e phone fails to comply with the national standards. Which dimension of ‘product quality’ has the mobile phone fail
ed in?
a) Reputation
b) Aesthetics
c) Durability
d) Conformance
Answer: d
Explanation: Every product has to meet certain applicable standards. Here, the mobile phone fails to comply with th
e national standards and hence ‘conformance’ is not met.
6. Which dimension of product quality tells you about the probability that a product will perform its function for a gi
ven period of time under specified conditions?
a) Aesthetics
b) Reputation
c) Reliability
d) Conformance
Answer: c
Explanation: Reliability is the probability that a product will perform its function for a given period of time under sp
ecified conditions. It can be measured with the help of mean time between failures.
7. Which of the following is the primary characteristic of an electric kettle while referring to its ‘performance’?
a) It should boil water efficiently

b) It should indicate the pouring temperature of the water
c) It should be red in color
d) It should be white in color
Answer: a
Explanation: The primary characteristic of an electric kettle is to boil water effectively. The color of its outer surface
is the aesthetic aspect of it. The pouring temperature of the water could be an additional feature in it.
8. Which of the following is not the best MTBF for a newly purchased laptop?
a) 1 month
b) 2 years
c) 3 years
d) 5 years
Answer: a
Explanation: MTBF refers to mean time between failures for a repairable product. Higher value of MTBF of the lapt
op is desired for customer satisfaction. So, MTBF for a newly purchased laptop which is least here is 1 month. It is r
uled out as it is not the best.
1. Ramesh called customer care to complain about his defective printer. The customer care tells him that it takes 2 m
onths to repair the kind of defect Ramesh is facing with the printer. Which dimension of ‘product quality’ is poorly r
eflected here?
a) Features
b) Aesthetics
c) Reputation
d) Serviceability
Answer: d
Explanation: The ‘serviceability’ of the product is poorly reflected. A defect in a printer taking 2 months is not acce
ptable. The service must be faster.
2. Paul found a defect in his newly purchased television set. He called the customer care to tell about the problem. T
he customer care told him to write an offline application and send it to the retailer. The retailer will then take it forw
ard to the service center. After this, it will take 2 months to repair the television set. Which dimension of ‘product qu
ality’ is poorly reflected here?
a) Features
b) Aesthetics
c) Serviceability
d) Reputation
Answer: c
Explanation: The service of the product must have been easier. The service of the television set is not only slow but i
t is also very difficult for the customer as he has to first write an application for his problem and then send it to the re
tailer. He has to also then wait for the retailer who will carry forward his problem to the service center.
3. Surya inspected his newly purchased bicycle and found a defect on its saddle. He tells the manufacturer about it.
The manufacturer charges ₹5000 for repairing it. Which dimension of ‘product quality’ is poorly reflected here?
a) Aesthetics
b) Features
c) Serviceability
d) Reputation
Answer: c
Explanation: The serviceability of the bicycle must have been economical. But here the manufacturer is charging too
much for a defect in a newly purchased bicycle.
4. Which dimension of ‘product quality’ is best reflected when a manufacturer ensures multiple slots in a mobile pho
ne for different sized sim cards?
a) Responsiveness
b) Serviceability
c) Aesthetics
d) Reputation
Answer: a
Explanation: People use nano – sim cards, micro – sim cards as well as regular size sim cards. Multiple slots in a mo
bile phone ensure the use of multiple sim cards in a single mobile phone.
5. Rajesh went to the market to purchase a khadi cloth for his father. The khadi cloth which the shopkeeper showed
him was white in color, but it had patches of dust over it at many places. Which dimension of ‘product quality’ was
poorly reflected by the shopkeeper?
a) Reputation
b) Serviceability
c) Durability
d) Aesthetics
Answer: d
Explanation: The presence of patches of dust resulted in customer dissatisfaction. The shopkeeper must have looked
at the ‘aesthetic’ aspect of the product before displaying the khadi cloth to Rajesh.
6. The dimension of ‘product quality’ which appreciates agile manufacturing is ________
a) Aesthetics
b) Reputation
c) Responsiveness
d) Conformance
Answer: c
Explanation: Agile manufacturing refers to techniques that are being utilized by an organization to respond quickly t
o customer needs and also be prepared for market changes while still holding its quality standards. Responsiveness a
lso appreciates the techniques used to satisfy the changes in customer needs.
7. Nancy went to purchase a new refrigerator for her house. She finds scratches on most of the refrigerators at the sh
op. Which dimension of ‘product quality’ is poorly reflected here?
a) Aesthetics
b) Reputation
c) Durability
d) Reliability
Answer: a
Explanation: The presence of scratches will affect Nancy’s choice of purchasing the refrigerator. The shopkeeper sh
ould ensure that all the products are ‘scratch-free’.
8. Company X, Company Y, and Company Z are mobile manufacturers. They have been in the market for 10 years.
Company X has the record of solving all the problems reported by their customers while Company Y and Company
Z have the record of solving 80% and 85% of the problems reported by their customers respectively. Which compa
ny will have the highest reputation?
a) Company X
b) Company Y
c) Company Z
d) Reputation cannot be compared
Answer: a
Explanation: As Company X has solved all the problems reported by its customers, it has the highest reputation. Co
mpany Y and Company Z must study the methods adopted by Company X to solve customer complaints.
1. Rahul had booked a room in a 5-star hotel. After he checked in at his hotel room he was angry on finding that his
bed sheet was filthy. Which dimension of ‘service quality’ was poorly reflected?
a) Tangibles
b) Reliability
c) Responsiveness
d) Empathy
Answer: a
Explanation: Tangibles refers to the appearance of the service that is being provided. It is a dimension of ‘service qu
ality’. By providing a dirty bed sheet the customer got angry and this resulted in customer dissatisfaction.
2. Manoj went to buy a washing machine. On top of the washing machine, it was mentioned that free service will be
provided every 3 months until one year is completed. Manoj approached the shopkeeper to get a confirmation on the
authenticity of the statement. Which dimension of ‘service quality’ was Manoj focusing on?
a) Empathy
b) Aesthetics
c) Reliability
d) Reputation
Answer: c
Explanation: Reliability as a dimension of ‘service quality’ focuses on the authenticity of the promised service. Here
, Manoj wanted a confirmation from the shopkeeper that free service will be provided to him. An assurance from the
shopkeeper will convince Manoj to buy the washing machine.
3. At Bengaluru Airport, Karan was surprised by the help he received from the staff at the airport. He was worried a
bout the standard procedures like collecting boarding pass and security check-in. But the staff overwhelmingly helpe
d him overcome all the difficulties. Which dimension of ‘service quality’ was strongly promoted by the staff at the a
irport?
a) Aesthetics
b) Features
c) Empathy
d) Reputation
Answer: c
Explanation: Empathy refers to the care that is provided to customers. Here, the staff proved to be a great help for K
aran. By overcoming his difficulties by providing individual attention, empathy was strongly promoted.
4. Manish had purchased a ticket from a famous airline for his upcoming business meeting in London. He had injure
d his left leg a couple of days back and needed wheelchair assistance. He called the airline customer service and ask
ed for wheelchair assistance. He was not only promised wheelchair assistance but also pick-up and drop facility. Wh
ich dimension of ‘service quality’ was strongly promoted here?
a) Assurance
b) Features
c) Aesthetics
d) Reputation
Answer: a
Explanation: Assurance refers to the knowledge and courtesy of the staff who provide customer service and their abi
lity to convey trust and confidence. By assuring Manish of wheelchair assistance, a sense of confidence was promot
ed. In addition to this, pick-up and drop facility was also provided which augmented customer satisfaction.
5. Which of the following is not a technique to study the ‘service quality gap’?
a) Surveys
b) Online Research
c) Focus Groups
d) Asking the boss of the company
Answer: d
Explanation: Surveys, Online Research, and Focus Groups are exploratory research techniques to identify the servic
e quality gap. The difference between customer expectations and customer perceptions at the time of service is calle
d service quality gap.
6. Which of the following is incorrect while referring to challenges faced while ensuring service quality?
a) Customer expectations change over a period of time

b) Different customers can have different expectations
c) Customer expectations do not change at all
d) Knowledge of all customers about the service may not be the same
Answer: c
Explanation: Customer expectations change over a period of time and different customers can have different expecta
tions. These results in variation in service quality desired. In addition to this, all customers do not have the same kno
wledge of the service being provided.
7. If the time taken to respond to customer complaints is less, which dimension of ‘service quality’ is strongly prom
oted?
a) Responsiveness
b) Aesthetics
c) Empathy
d) Durability
Answer: a
Explanation: The responsiveness refers to the quickness with which customer problems are dealt with. With a short r
esponse time, the responsiveness of the service is strongly promoted here.
8. Company A and Company B are two social networking service companies. It has been found that Company A sha
res a user’s private information with undetectable sources while Company B is not accused of any such activities. W
hich dimension of ‘service quality’ is at stake?
a) Security
b) Empathy
c) Responsiveness
d) Durability
Answer: a
Explanation: The security of all the users who have an account in company A is at stake. The user could have many
personal details that are not supposed to be shared with anybody. Definitely, Company B has provided security and
will be most preferred.
9. Amit is a Hindi speaking person. He resides in Chennai. He had to visit the Passport Office in Chennai to rectify s
ome of the problems he was facing. He was surprised to find the staff at the Passport Office speaking in different lan
guages. Name the dimension of ‘service quality’ which was enforced.
a) Communication
b) Security
c) Timeliness
d) Durability
Answer: a
Explanation: The ability to inform the customers in the language they understand is promoted here. Amit will now h
ave no problem in understanding the technicalities involved in rectifying the errors in his passport.
10. Company P and Q are two famous clothing companies in the city. Customers have complained that the staff at C
ompany P are unaware of modern trends and seem to take no interest in understanding customer expectations. The st
aff at Company Q is knowledgeable and is aware of modern trends. What can you infer?
a) Company P is more competent than Company Q

b) Company Q is more competent than Company P
c) Company P is at the same level as Company Q in terms of competency
d) Competency cannot be compared
Answer: b
Explanation: Company Q is more competent than Company P. The fact that Company Q has a knowledgeable workf
orce provides customer trust and confidence to buy cloth. Company P must ensure that its staff become more knowl
edgeable and know the modern trends. Employee training can solve the issue.
11. If all the service promised according to the time commitments are met then __________
a) Timeliness is established
b) Durability is found
c) The service looks attractive
d) Empathy is considered
Answer: a
Explanation: Consider the pizza that you order online. If the person who is assigned to deliver your food comes earl
y you are overjoyed. Hence, timeliness, the quality of being on time is important to establish customer satisfaction.
12. If an organization commits to 10 promises and if all the promises are met, then which ‘service quality’ dimensio
n is strongly promoted?
a) Completeness
b) Timeliness
c) Competence
d) Tangibles
Answer: a
Explanation: If all the promises are met then completeness is achieved. By meeting all the promises committed, the
organization has ensured completeness is achieved. We cannot comment on the timeliness because we have no infor
mation about the time taken to meet the promises. Competence refers to the skill and knowledge possessed by the or
ganization. Tangibles referto the appearance of the service which is received.
13. If an organization focuses on trustworthiness and belief considering the customer’s best interests, which dimensi
on of ‘service quality’ is focused on by the organization?
a) Credibility
b) Aesthetics
c) Durability
d) Timeliness
Answer: a
Explanation: Every successful organization has always focused on credibility. Credibility ensures that in times when
the organization’s reputation is at stake the trust of the customer remains intact. It helps them in re-establishing the
mselves.
14. Raju goes to the office from 9 am – 6 pm. He had enrolled himself at a gym center near his office. The gym is op
en from 6 am – 10 pm. Consider the timings of engagements of both Raju and the gym center, which dimension of ‘
service quality’ is strongly promoted?
a) Timeliness
b) Accessibility and Convenience
c) Credibility
d) Reputation
Answer: b
Explanation: With reference to the timings, Accessibility and Convenience are strongly promoted. Raju can choose t
o go to the gym either before his time at the office or after his office hours are over. This flexibility in timings ensur
es customer satisfaction not just for Raju but also for all the office going people registered at the gym center.
15. Which of the following is a dimension of ‘service quality’?
a) Durability
b) Serviceability
c) Conformance
d) Consistency
Answer: d
Explanation: Consistency is a ‘service quality’ dimension. It refers to the act of committing to the same level of cust
omer service every time irrespective of who the customer is. Durability, Serviceability, and Conformance are dimen
sions of ‘product quality’.
1. What is TQM?
a) Total Quality Management

b) Total Quality Maintenance
c) Total Quality Mitigation
d) Total Quality Managers
Answer: a
Explanation: Total means made up of ‘whole’. Quality means the degree of excellence that needs to be achieved kee
ping customer satisfaction in mind. Management refers to the activities that are involved in establishing the highest
degree of quality.
2. TQM is the management approach of an organization, centered on quality, based on the participation of all its me
mbers and aiming at long-term success through customer satisfaction, and benefits to all members of the organizatio
n and to society. Which organization had given this definition of TQM?
a) Total Quality Forum of USA

b) Indian Statistical Institute
c) ISO
d) ASQ
Answer: c
Explanation: According to ISO, TQM is the management approach of an organization, centered on quality, based on
the participation of all its members and aiming at long-term success through customer satisfaction, and benefits to al
l members of the organization and to society. ISO refers to the International Organization for Standardization. It was
founded on February 23, 1947, to promote worldwide proprietary, industrial and commercial standards.
3. TQM is an integrated organizational approach in delighting customers (both internal and external) by meeting thei
r expectations on a continuous basis through everyone involved with the organization working on continuous impro
vement in all products, services, and processes along with proper problem-solving methodology. Which organizatio
n had given this definition of TQM?

b) ISO
c) Indian Statistical Institute
d) ASQ
Answer: c
Explanation: According to the Indian Statistical Institute, TQM is an integrated organizational approach in delightin
g customers (both internal and external) by meeting their expectations on a continuous basis through everyone invol
ved with the organization working on continuous improvement in all products, services, and processes along with pr
oper problem-solving methodology. ISI was established on 17 December 1931 and is an academic institute of nation
al importance focusing on statistics.
4. TQM is a people-focused management system that aims at a continual increase in customer satisfaction at a contin
ually lower cost. TQM is a total system approach (not a separate area or program), and an integral part of a high-leve
l strategy. It works horizontally across functions and departments, involving all employees, top to bottom, and excee
ds backward and forward to include the supply chain and the customer chain. Which organization had given this defi
nition of TQM?

b) ISO
c) Indian Statistical Institute
d) ASQ
Answer: a
Explanation: According to Total Quality Forum of USA, TQM is a people-focused management system that aims at
a continual increase in customer satisfaction at a continually lower cost. TQM is a total system approach (not a separ
ate area or program), and an integral part of a high-level strategy. It works horizontally across functions and departm
ents, involving all employees, top to bottom, and exceeds backward and forward to include the supply chain and the
customer chain. This definition has been accepted by many academic papers and is considered to be one of the best
definitions of TQM.
5. Which ‘pillar of TQM’ is referred to when the study of customer needs is done, the requirements of the customer
are gathered, and customer satisfaction is measured and managed?
a) Process Management
b) Employee Empowerment
c) Continuous Improvement
d) Customer Focus
Answer: d
Explanation: Customer Focus is one of the pillars of TQM. In customer focus, customer satisfaction remains an orga
nization’s highest priority. The other pillars of TQM are Process Management, Employee Empowerment, and Conti
nuous Improvement.
6. Which ‘pillar of TQM’ refers to the act of developing a production process that reduces product variations, and by
application of this process, the same product with the same level of quality is produced every time?
d) Customer Focus
Answer: a
Explanation: Process Management is one of the pillars of TQM. The relationship between the teams and internal cus
tomers plays a crucial role in developing the production process that reduces product variations. The focus of the ma
nagement is on controlling the overall process, and rewarding teamwork.
7. Which ‘pillar of TQM’ refers to TQM’s environment of a committed and well-trained workforce that participates
in activities involving quality improvement?
d) Customer Focus
Answer: b
Explanation: Employee Empowerment is one of the pillars of TQM. It is the human side of quality. Employee Empo
werment is achieved with the help of training of employees to achieve customer satisfaction.
8. Which ‘pillar of TQM’ recognizes that product quality is a result of process quality?
d) Customer Focus
Answer: c
Explanation: Continuous Improvement is one of the pillars of TQM. The output of a production process must not on
ly satisfy customer needs but the customer must feel satisfied with the product. Hence, continuous improvement in t
he production process plays a crucial role in delivering quality products.
9. In traditional management, quality is determined by the company. In total quality management, quality is determi
ned by the customer.
a) True
b) False
Answer: a
Explanation: In traditional management, quality is determined by the organization and it has its own quality standard
s. Every product is compared to this standard to determine if it is acceptable or not. In TQM, the customer is the jud
ge for product quality.
10. Company M has short-term goals like achieving the predicted quarterly profit. Company N has long-term goals l
ike achieving sustained customer satisfaction. What can you infer about the management culture?
a) Company M follows traditional management, Company N follows TQM

b) Company N follows traditional management, Company M follows TQM
c) Company M and Company N follows traditional management
d) Company M and Company N follows TQM
Answer: a
Explanation: Company M has a short term goal to achieve the predicted quarterly profit which is one of the characte
ristics of traditional management. Company N has a long term goal which is to sustain customer satisfaction. Custo
mer satisfaction is TQM’s highest priority.
11. In traditional management, individual employees are held accountable for the presence of a defect.
a) True
b) False
Answer: a
Explanation: In traditional management, individual employees are held accountable for the presence of a defect and t
hose employees are identified by the managers. In TQM, managers and employees focus on improving the process t
o ensure that defects don’t occur in the future in order to ensure customer satisfaction.
12. The manager of a company is known to threaten his employees for the presence of a defect. What can you infer a
bout the management culture?
a) Traditional Management
b) Total Quality Management
c) Supply Chain Management
d) Sales Management
Answer: a
Explanation: Here, the act of threatening employees is the traditional management approach. As a result of this, ther
e is a void in the relation between the workforce and the manager. The manager may even fire its employees.
13. A company is known to have a reward policy for its employees. The manager gives its employees a chance to im
prove if a mistake is conducted by them. What can you infer about the management culture?
a) Traditional Management
b) Total Quality Management
c) Supply Chain Management
d) Sales Management
Answer: b
Explanation: The working environment, in this case, is suitable for the employees. There is a strong bonding betwee
n the managers and employees. The reward policy keeps the employees motivated towards achieving organizational
goals focusing on customers. The chance to improve themselves when a mistake is committed helps employees to in
trospect themselves.
14. In Company A, the workers who are involved in producing a product are responsible for its quality. In Company
B, everyone in the organization including the top executives is responsible for producing quality products. What ca
n you infer about the management culture?
a) Company A follows traditional management, Company B follows TQM

b) Company B follows traditional management, Company A follows TQM
c) Company A and Company B follows traditional management
d) Company A and Company B follows TQM
Answer: a
Explanation: In traditional management, the workers who are involved directly in producing the product are held acc
ountable for producing quality products. In TQM, everyone starting from the top executives to the workers producin
g the product are responsible for producing quality products.
15. In Company E, the supervisors and employees solve problems based on their individual knowledge, skills, and i
nstincts. In Company F, everyone in the organization solves problems based on substantive data. What can you infer
about the management culture?
a) Company E follows traditional management, Company F follows TQM

b) Company F follows traditional management, Company E follows TQM
c) Company E and Company F follows traditional management
d) Company E and Company F follows TQM
Answer: a
Explanation: In traditional management, the supervisors and employees solve problems based on their individual kn
owledge, skills, and instincts. This can sometimes lead to problems when some of the causes of the problems are left
out. But with substantive data, every aspect of the problem is thoroughly analyzed and a proper decision focusing o
n customer satisfaction is made.
1. Which of the following is a principle of TQM?
a) Product-centered system
b) Customer-focus
c) Intermittent improvement
d) Decisions made by top executives only
Answer: b
Explanation: TQM is a management approach that aims to attain customer satisfaction and plans for long-term succe
ss. It is a process-centered system, focuses on continuous improvement and decision-making involves the involveme
nt of all the employees.
2. The customer determines the level of quality.
a) True
b) False
Answer: a
Explanation: The customer is the judge of the quality of goods or services. Even though a company may have excell
ent training facilities, it may have improved its processes or upgraded its technology, but if customer satisfaction is n
ot attained then it is of no use.
3. To attain customer satisfaction, which of the following is mandatory in TQM?
a) Total employee involvement

b) Manager involvement
c) Founder involvement
d) Co-founder involvement
Answer: a
Explanation: Total employee involvement is one of the principles of TQM. Employee involvement can be fully utili
zed to its full potential when there is no workplace fear, empowerment is done, and when a proper working environ
ment is established.
a) Process-centered
b) Product-centered
c) External customer focus only
d) Internal customer focus only
Answer: a
Explanation: TQM is a process-centered system with continuous improvement philosophy. Decision-Making involv
es everyone in the company. The focus is towards both external and internal customers.
5. Benchmarking is a TQM technique.
a) False
b) True
Answer: b
Explanation: It is a TQM technique in which a company is compared with other companies with the aim to improve
the deficiencies in internal processes. The best standards are determined and the scope for improvement is recognize
d. It can be used as a performance measuring tool also.
a) Product-centered system
b) Integrated system
d) Decisions made by top executives only
Answer: b
Explanation: Traditionally, organizations are organized into vertically structured departments. But TQM keeps the d
epartments horizontally and focuses on interconnecting importance. The various departments and their functions hav
e interdependence on each other. This becomes TQM’s focus.
7. Which of the following is the kind of planning approach a company following TQM follows?
a) Strategic, random approach

b) Strategic, systematic approach
c) Random approach
d) Normal approach
Answer: b
Explanation: The systematic and strategic planning that considers quality as a vital component in TQM’s focus. It is
done to achieve the company’s vision, mission, and goals. It requires the involvement of everyone in the organizatio
n.
8. What is the kind of focus put in a company’s processes in TQM?
a) Unsteady improvement
b) Passive improvement
c) Continual improvement
d) Steady improvement
Answer: c
Explanation: TQM is a process centered system. The main focus is to attain customer satisfaction. To achieve this, c
ontinuous process improvement is required to attain the highest degree of excellence in one’s goods or services.
9. Decisions in a company which follows TQM is _______

a) Taken on the basis of the manager’s knowledge
b) Taken on the basis of the founder’s knowledge
c) Taken on the basis of the co-founder’s knowledge
d) Fact-based
Answer: d
Explanation: TQM follows fact-based decision making. It collects and analyses data from various sources based on t
he customer satisfaction level. This continuous procedure helps in understanding customer needs and also the necess
ary updates required in the company’s processes to attain the highest degree of excellence.
10. For proper implementation of TQM, we need ________________
a) To form a confidential group within the company

b) To have two managers in the company
c) To have effective communication between employees
d) To have intermittent communication between employees
Answer: c
Explanation: TQM focuses on the involvement of all employees in an organization. For this, effective communicatio
n must take place. Effective communication will augment the chances of delivering quality products to customers. A
lso, the chances of errors will be minimalized.
1. Which of the following is not an idea that can be incorporated by top management in a company to develop the T
otal Quality Program of a company?
a) Management meetings
b) Focus on products and not processes
c) Company magazines
d) Company newsletters
Answer: b
Explanation: The top management must relay messages to every employee of the organization and make them under
stand about the company’s TQM program. Company magazines and Company newsletters will add value to the TQ
M program. Customers will come to know very easily about the company’s objectives and their dedication towards
delivering a quality product or service.
2. Attaining customer satisfaction is the heart of TQM.
a) True
b) False
Answer: a
Explanation: TQM’s goal is to attain customer satisfaction. The focus should be both on internal and external custo
mers. To achieve this, the company focuses on continuous improvement of its internal processes.
3. What happens when the top management does not effectively communicate about the company’s TQM program p
roperly from top to bottom?
a) The TQM program fails to achieve the desired target

b) The TQM program successfully achieves its desired target
c) There is no need to communicate messages
d) Nothing happens to the company’s progress
Answer: a
Explanation: As TQM requires everyone’s involvement, it is a necessity that effective communications take place in
the company. The decision taken by the top management must be effectively communicated within the company. Th
e organizational goal then will be easy to attain.
4. TQM recognizes that each person is responsible for the quality of his work and for the work of the group.
a) True
b) False
Answer: a
Explanation: TQM gives recognition to every employee of the company and that each person is responsible for the q
uality of his work and for the work for the group. The focus of everyone is to improve the processes that end up in d
elivering quality products or services to the customer.
5. In TQM suppliers are treated as _______
a) Enemies
b) Partners
c) Managers
d) Employees
Answer: b
Explanation: In TQM, suppliers are treated as partners. Since the quality of supply is crucial in delivering quality pr
oducts, it is important that suppliers are treated well and assigned the responsibility of delivering quality raw or inter
mediate materials.
6. Which of the following is not a performance measure to ensure the highest degree of quality?
a) Productivity
b) Number of company newsletters published in a year
c) Absenteeism
d) Sales turnover
Answer: b
Explanation: The need to measure productivity, absenteeism and sales turnover is important to gauge the performanc
e level of the company. All these performance measures help in continuous improvement. As a result of this, the hig
hest degree of quality product or service can be delivered to the customers.
7. Ryan works in a company that follows TQM and produces nuts and bolts. The company has not moved much fro
m its old design of nuts and bolts. Ryan’s creativity leads him to a better and effective design of nuts and bolts at the
same production cost as before. It can increase the productivity without compromising quality. Should the company
implement Ryan’s design?
a) Yes, everyone is recognized in a company which follows TQM

b) No, everyone is not recognized in a company which follows TQM
c) Design implementation is the responsibility of the design team only
d) Modern trends must not dominate and make the company lose its originality
Answer: a
Explanation: The Company can implement Ryan’s design as productivity increases without compromising quality.
Also, the production cost is the same as before. TQM gives recognition to everyone and it is not mandatory for Ryan
to be from the design team of the company to suggest an alternative design for the old design that the company is fo
llowing.
8. In tradition management, Inspection philosophy is followed, and in TQM ________
a) No philosophy is followed
b) Inspection philosophy is followed
c) Prevention philosophy is followed
d) Manager’s philosophy is followed
Answer: c
Explanation: TQM focuses on continuous improvement. Due to this, the philosophy is to prevent defective products
being passed on to the customers. In tradition management, inspection is followed only after a customer complaint.
1. A company producing biscuits implemented TQM philosophy. It collected feedback data for the age group 50 to 6
0 years and determined the number of people using the company’s biscuits and how satisfied they were with the pro
duct. Where did the company go wrong in its analysis?
a) Identified the wrong age group

b) It must take into consideration a larger age group
c) It should not determine the number of people using their product and their level of satisfaction
d) There is no mistake in their TQM approach
Answer: b
Explanation: Incorrect measurements in the TQM approach can lead to data misinterpretation. The company must ga
uge the level of customer satisfaction for a larger age group, maybe 10-60. This will help the company in continuous
improvement.
2. The inability to change the organizational structure is a barrier to TQM implementation.
a) True
b) False
Answer: a
Explanation: If a company follows the traditional management culture for a long time it will be difficult for the com
pany to change its organizational structure. This, therefore, is a barrier to TQM implementation. Benchmarking can
be a tool used to change the mindset of the organization to move towards TQM.
3. The lack of proper training to the employees can act as a barrier to TQM implementation.
a) True
b) False
Answer: a
Explanation: The need for proper training is necessary in order to have proper TQM implementation. The company
can then follow TQM philosophy for a long time and can very easily attain customer satisfaction. All employees mu
st follow the same standard procedures to determine the level of customer satisfaction.
4. A company including its manager has 50 members. TQM philosophy is followed by 40 members only. Did the co
mpany properly implement TQM?
a) Yes, only 25 members were sufficient for TQM implementation

b) No, TQM implementation requires the participation of all members of the company
c) Yes, only 14 members were sufficient for TQM implementation
d) We cannot comment on TQM implementation
Answer: b
Explanation: The highest priority of TQM is customer satisfaction. The main focus of the company is to collectively
put in efforts to develop quality goods or services and attain customer satisfaction. So, all 50 members must particip
ate in TQM implementation.
5. The 10 years performance of a company was analyzed. The company followed TQM philosophy for the first two
years and moved back to traditional management. What can you conclude about the management culture of the com
pany?
a) Lack of management commitment to follow TQM

b) Lack of management commitment to follow traditional management
c) The management of the company is properly functioning
d) We cannot comment on the management culture of the company
Answer: a
Explanation: The company failed to comply with TQM philosophy after the first two years. As a result of this, it will
gradually find it difficult to retain customer satisfaction. In addition to this, if the goods or a service provided by the
company no longer follows the changing customer needs then the customer will even stop using the goods or servic
es provided by the company.
6. A defect in a product produced by a company was reported to the quality division. The quality division rectified t
he defect and presented the solution to the rest of the members of the organization including its manager. But the org
anization delayed the implementation for more than a month. What will be the consequence of this act?
a) There is no problem in delaying the implementation

b) The company will start to fail in satisfying customer needs and hence customer satisfaction
c) The customer will respect the delay in implementation
d) The manager will be sacked by the founder of the company
Answer: b
Explanation: TQM by its definition involves achieving the degree of excellence by delivering quality goods or servi
ces. All this is done to attain customer satisfaction. If the company discovered the solution to the defect it should im
plement it without further ado.
7. Which of the following is a tangible benefit of following TQM?
a) Reduction in employee grievances

b) Increase in employee grievances
c) No change in employee grievances
d) We can’t comment on employee grievances
Answer: a
Explanation: In TQM, every employee in the organization is focused towards one goal and that is satisfying custome
r needs by providing customer satisfaction. As everybody is treated in the same unbiased manner, employee grievan
ces are reduced when an organization follows TQM.
8. Which of the following is not a tangible benefit of following TQM?
a) Increased profitability
b) Increased market and customers
c) Improved productivity
d) Increase in quality costs
Answer: d
Explanation: Cost of quality or Quality costs is the cost incurred by a company to prevent poor quality goods or serv
ices. By using TQM philosophy, the degree of excellence in goods or services increases and hence quality increases.
When we have high-quality goods or service the cost that is required to prevent poor quality goods or services decre
ases.
9. The product quality after using TQM philosophy _______
a) Increases
b) Decreases
c) Remains the same
d) We cannot comment on product quality
Answer: a
Explanation: The product quality improves on using TQM. TQM is focused on customer needs and hence recognize
s them. Therefore, there is no additional cost incurred. The concept of continuous improvement in TQM improves pr
oduct quality.
10. Which of the following is not an intangible benefit of following TQM?
a) Better company image

b) Enhanced problem-solving capacity
c) Enhancement of job interest
d) Reduction in customer satisfaction
Answer: d
Explanation: TQM is focused on customer satisfaction and hence using TQM customer satisfaction increases. When
the customer is happy with the goods or services, the image of the company is good. Due to the involvement of all th
e employees in a company, problem-solving capacity increases. The job interest also enhances.
11. The working relationships after using TQM philosophy _______
a) Declines
b) Remains the same
c) Improves
d) We cannot comment on working relationships
Answer: c
Explanation: Due to the involvement of each and every employee in a company in delivering quality goods or servic
es, the working relationship improves. The employees have mutual trust and respect for each other and have a comm
on organizational goal.
12. Employee participation after using TQM philosophy _______
a) Declines
b) Remains the same
c) Improves
d) We cannot comment on working relationships
Answer: c
Explanation: In traditional management, the responsibilities were localized in nature. In TQM, everybody participate
s’ passionately in achieving the organizational goal. The organizational goal is to achieve customer satisfaction.
1. Who among the following is not an American Quality Guru?
a) Crosby
b) Ishikawa
c) Juran
d) Deming
Answer: b
Explanation: Crosby, Juran, and Deming are Quality Gurus from America. Ishikawa is from Japan and is famous for
his development of quality initiatives. He is famous for quality circle development and Ishikawa diagram.
2. Which of the following is not a contribution made by Deming?
a) Deming’s 14 points
b) System of Profound Knowledge
c) Deming Cycle
d) Taguchi Loss Function
Answer: d
Explanation: Deming’s 14 points, System of Profound Knowledge, Deming Cycle, and Seven Deadly Diseases of M
anagement was Deming’s contribution. Taguchi Loss Function was developed by the Japanese Quality Guru Taguch
i.
3. According to Deming’s 14 points, which of the following is the meaning of ‘Adopt the new philosophy’?
a) To adopt the new philosophy that was displayed in the newspaper

b) To hire new philosophy for the company
c) To be aware of new challenges, responsibilities and to adopt them
d) To sell old philosophy and start a new philosophy
Answer: c
Explanation: The management must be aware of new challenges and actively respond to them. The leadership for ch
ange must be taken. As a result of this, new responsibilities will be assigned to everyone.
4. According to Deming’s 14 points, which of the following is the meaning of ‘Cease dependence on inspection to a
chieve quality’?
a) Eliminate the need for inspection on a mass basis

b) Inspection is not good for the product
c) Inspection is independent
d) Inspection cannot bring quality in products
Answer: a
Explanation: The need for inspection on a mass basis must be eliminated. We need to develop quality products in th
e first place. This is the meaning of Deming’s point – Cease dependence on inspection to achieve quality.
5. Which of the following does not belong to Deming’s 14 points on route to quality?
a) Create constancy of purpose towards improvement of product and services

b) Adopt the new philosophy
c) Cease dependence on inspection to achieve quality
d) Start the practice of awarding business on the basis of price tag
Answer: d
Explanation: According to Deming’s 14 points, we should end the practice of awarding business on the basis of the
price tag. Instead, we should minimize the total cost. We should move towards the concept of a single supplier for o
ur item based on loyalty and trust.
6. Which of the following does not belong to Deming’s 14 points on route to quality?
a) End the practice of awarding business on the basis of the price tag
b) Improve constantly and forever the system of product and service
c) End the concept of training
d) Institute leadership
Answer: c
Explanation: Institute training on the job is one of Deming’s 14 points on route to quality. Training will enable the e
mployees to know about the proper functioning of the organization. It will also help the employees to try out their cr
eative ideas but well within the rules followed by the organization.
7. ‘Drive out fear’ is one of Deming’s 14 points on route to quality.
a) False
b) True
Answer: b
Explanation: For a company to work effectively there shouldn’t exist any fear within its employees. This will lead to
an unhealthy working atmosphere. If fear exists, employees having creative ideas are prevented from proposing thei
r ideas to their seniors. In addition to this, employees don’t work to their full potential.
8. ‘Creation of barriers between departments’ is one of Deming’s 14 points on route to quality.
a) False
b) True
Answer: a
Explanation: Break down of barriers between departments is one of Deming’s 14 points on route to quality. The rese
arch, design, production, and sales team must work together cohesively. The idea of working together will help fores
ee problems and develop techniques to tackle them.
9. What is the other name of Deming’s cycle?
a) PDCA
b) ADCA
c) MDCA
d) SDCA
Answer: a
Explanation: The other name of Deming’s cycle is the PDCA cycle or the PDSA cycle. PDCA cycle means Plan, Do
, Check, and Act. PDSA cycle means Plan, Do, Study, and Act. Deming’s cycle is a continuous quality improvemen
t model.
10. Which of the following does not belong to ‘Seven Deadly Diseases of Management’?
a) Lack of constancy of purpose

b) Emphasis on short term profits
c) Reliance on performance appraisals and profits
d) Immobility of top management
Answer: d
Explanation: The mobility of top management belongs to the ‘Seven Deadly Diseases of Management’. If the top m
anagement itself is unstable and moves to different companies then the progress of the company is prevented. It take
s time to build a long term relationship.
11. Which of the following does not belong to ‘Seven Deadly Diseases of Management’?
a) Reliance on financial figures

b) Excessive medical costs
c) Excessive legal costs
d) Absence of reliance on financial figures
Answer: d
Explanation: The concept of running a company on visible figures alone is considered to be one of the ‘Seven Deadl
y Diseases of Management’. Although there is a payroll to meet, suppliers to pay, taxes to pay, and so on, the determ
ination of happy customers takes time and the results are apparent after some time.
12. What do you mean by ‘System of Profound Knowledge’ described by Deming?
a) Management by positive co-operation

b) Management by negative co-operation
c) Management by unstable co-operation
d) Management by pessimistic co-operation
Answer: a
Explanation: The system of profound knowledge is described by Deming. It means management by positive co-oper
ation. There are four key elements of the system of profound knowledge. They are Appreciation for a system, Know
ledge of statistical theory, Theory of knowledge, and Knowledge of Psychology.
13. Which of the following is not a key element of the ‘System of Profound Knowledge’?
a) Hatred for a system
b) Knowledge of statistical theory
c) Theory of knowledge
d) Knowledge of Psychology
Answer: a
Explanation: The appreciation for a system is one of the key elements of the ‘System of Profound Knowledge’. Ther
e is a need for managers to understand the relationships between functions and activities. The long term aim for ever
yone is to win – employees, shareholders, customers, suppliers and the environment.
14. According to Deming’s 14 points, the barrier to the pride of workmanship should be ______
a) Removed
b) Promoted
c) Established
d) Encouraged
Answer: a
Explanation: According to Deming’s 14 points, the barrier to the pride of workmanship should be removed. For exa
mple, the concept of annual or merit rating must be abolished. If management by objectives exists, it should be stopp
ed.
15. According to Deming’s 14 points, the vigorous program of education and self – improvement must be ________
a) Instituted
b) Removed
c) Discouraged
d) Demoted
Answer: a
Explanation: According to Deming’s 14 points, the vigorous program of education and self – improvement must be
instituted. This will help the employees judge themselves and improve on their own without any management pressu
re. The employees will gain confidence and the working atmosphere will be healthy.
1. Which among the following is not a contribution made by Juran?
a) Juran’s Quality Control Handbook

b) Quality Planning and Analysis
c) Juran on Leadership for Quality
d) Quality is Free
Answer: d
Explanation: Juran has authored many papers and twelve books including ‘Juran’s Quality Control Handbook’, ‘Qua
lity Planning and Analysis’, ‘Juran on Leadership for Quality’. ‘Quality is Free’ is authored by Philip Crosby.
2. Which among the following is not part of Juran’s ‘Three Role Model’?
a) Supplier
b) Process
c) Customer
d) Deming
Answer: d
Explanation: According to Juran, the focus should be given to internal customers also. Each person along the chain i
s a supplier and a customer. In addition to this, the person will be a process, carrying out some transformation or acti
vity.
3. Which among the following is not a contribution made by Juran?
a) Internal Customer
b) Cost of Quality
c) Quality Trilogy
d) Quality Loss Function
Answer: d
Explanation: Juran’s contributions can be studied under five topics. They are internal customer, cost of quality, quali
ty trilogy, Juran’s 10 steps for quality improvement, and the breakthrough concept. Quality Loss Function is a contri
bution made by Taguchi.
4. Which among the following does not belong to the classification of Cost of Quality done by Juran?
a) Failure Costs
b) Appraisal Costs
c) Prevention Costs
d) Variable Costs
Answer: d
Explanation: According to Juran, the cost of quality can be classified into three classes. They are failure costs, apprai
sal costs, and prevention costs. Variable costs are associated with the concept of Break-Even Analysis.
5. Which among the following does not belong to Juran’s Quality Trilogy?
a) Quality Planning
b) Quality Control
c) Quality Improvement
d) Quality Assurance
Answer: d
Explanation: Quality Planning, Quality Control, and Quality Improvement are part of Juran’s Quality Trilogy. Quali
ty Assurance is the act of maintaining a desired level of quality in a product or service by providing attention to ever
y stage of process of delivery or production.
6. Which among the following does not belong to Juran’s ten steps to quality improvement?
a) Build awareness of the need and opportunity for improvement

b) Set goals for improvement
c) Organize to reach goals
d) Adopt the new philosophy
Answer: d
Explanation: Juran has suggested ten steps for quality improvement. ‘Build awareness of the need and opportunity f
or improvement’, ‘Set goals for improvement’, and ‘Organize to reach goals’ are part of Juran’s ten steps to quality i
mprovement. ‘Adopt the new philosophy’ belongs to Deming’s fourteen points on route to quality.
7. ‘Carry out projects to solve problems’ is a statement belonging to Juran’s ten steps to quality improvement.
a) True
b) False
Answer: a
Explanation: ‘Carry out projects to solve problems’ is a statement belonging to Juran’s ten steps to quality improve
ment. Large, break-through improvements through interdepartmental or even cross-functional teams can be achieved
. We need to deal with chronic problems for break-through improvements.
8. ‘Report progress’ is a statement belonging to Juran’s ten steps to quality improvement.

a) True
b) False
Answer: a
Explanation: ‘Report progress’ is a statement belonging to Juran’s ten steps to quality improvement. The progress ac
hieved should be compared with the progress expected. Information on progress is important for quality improveme
nt.
9. Identify from Juran’s ten steps to quality improvement a statement which implies providing a morale boost.
a) Organize to reach goals

b) Adopt the new philosophy
c) Give recognition
d) Provide Training
Answer: c
Explanation: ‘Give recognition’ is one of the statements of Juran’s ten steps to quality improvement. It means provid
ing a morale boost. This will ensure that the confidence level in the employees’ increases and they are rejuvenated.
10. ‘Communicate results’ is a statement from Juran’s ten steps to quality improvement. Which of the following is t
he odd one out with respect to it?
a) Lessons learned
b) Provide training
c) The steps that have been taken to improve quality
d) The feedback that has been given to the manager of the company
Answer: b
Explanation: The lessons learned, the steps that are taken to improve quality and feedback given to the manager of t
he company all emphasize the concept of ‘Communicating results’. The concept of providing training is, therefore, t
he odd one out as it has no relation with ‘Communicating results’. The success report post training is a method of co
mmunicating results.
11. Which of the following does not mean to ‘Keep score’ from Juran’s ten steps to quality improvement?
a) Track progress
b) Report achievements
c) Report short-falls
d) Set goals for improvement
Answer: d
Explanation: ‘Keep score’ is one of the steps from Juran’s ten steps to quality improvement. The concept of tracking
progress, report achievements, and report short-falls are all methods of keeping score. The concept of setting goals f
or improvement does not imply keeping score.
1. Which among the following is not a contribution made by Crosby?
a) Quality is Free
b) Quality without Tears
c) Let’s Talk Quality and Leading: The Art of Becoming an Executive
d) Quality Planning and Analysis
Answer: d
Explanation: ‘Quality is Free’, ‘Quality without Tears’, ‘Let’s Talk Quality and Leading: The Art of Becoming an E
xecutive’ are contributions made by Crosby. ‘Quality Planning and Analysis is authored by Juran.
2. Which among the following is not a contribution made by Crosby?
a) Four Absolutes of Quality

b) Fourteen Steps for Quality Improvement
c) Quality Vaccine
d) Quality Trilogy
Answer: d
Explanation: ‘Four Absolutes of Quality Management’, ‘Fourteen Steps for Quality Improvement’, ‘Crosby’s Qualit
y Vaccine’ are contributions made by Crosby. ‘Quality Trilogy’ is a contribution made by Juran.
3. According to Crosby’s First Absolute of Quality, quality is _______ to requirements, not goodness.
a) Conformance
b) Negligence
c) Carelessness
d) Betrayal
Answer: a
Explanation: According to Crosby’s First Absolute of Quality, quality is conformance to requirements, not goodness
. There are four absolutes of quality proposed by Crosby. Crosby was the founder and chairman of the board of Care
er IV, an executive management consulting firm.
4. According to Crosby’s Second Absolute of Quality, quality is achieved by _______not appraisal.
a) Prevention
b) Inspection
c) Suspension
d) Retention
Answer: a
Explanation: According to Crosby’s Second Absolute of Quality, quality is achieved by prevention, not appraisal. T
here are four absolutes of quality proposed by Crosby. He believed in the concept of zero defects.
5. According to Crosby’s Third Absolute of Quality, quality has a performance standard of ________not acceptable
quality levels.
a) Zero defects
b) Five defects
c) Nine defects
d) Two defects
Answer: a
Explanation: According to Crosby’s Third Absolute of Quality, quality has a performance standard of zero defects, n
ot acceptable quality levels. There are four absolutes of quality proposed by Crosby. Crosby founded the Philip Cros
by Associates Inc. and Quality College.
6. According to Crosby’s Fourth Absolute of Quality, the measurement of quality is the price of ______not indexes.
a) Conformance
b) Non-conformance
c) Adherence
d) Performance
Answer: b
Explanation: According to Crosby’s Fourth Absolute of Quality, the measurement of quality is the price of non-conf
ormance, not indexes. There are four absolutes of quality proposed by Crosby. Crosby served in the US Navy in the
Second World War.
7. According to Crosby’s Quality Vaccine, ‘Integrity’ refers to the need for treating quality seriously throughout the
whole business organization from top to bottom. The future of the company will be judged on the performance on q
uality.
a) True
b) False
Answer: a
Explanation: There are five sections in Crosby’s Quality Vaccine. They are integrity, systems, communications, ope
rations, and policies. Integrity is crucial to attain customer satisfaction. Companies must consider quality seriously a
s the measurement of quality is the price of non-conformance.
8. According to Crosby’s Quality Vaccine, ‘Systems’ refers to the need for maintaining appropriate measures and sy
stems for quality costs, education, quality, performance, review, improvement, and customer satisfaction.
a) True
b) False
Answer: a
Explanation: According to Crosby, there are five sections in Quality Vaccine. They are integrity, systems, communi
cations, operations, and policies. The need of proper ‘Systems’ is crucial to sustain quality in the whole business.
9. Which among the following does not belong to the five sections of Crosby’s Quality Vaccine?
a) Communication
b) Operations
c) Policies
d) Conformance
Answer: d
Explanation: Communications, Operations, and Policies are part of Crosby’s Quality Vaccine. The other two section
s are Integrity and Systems. According to Crosby, ‘vaccine’ is explained as medicine for management to prevent poo
r quality.
10. According to Crosby’s Fourteen Steps for Quality Improvement, what do you mean by QITs?
a) Quality Injustice Teams

b) Quality Inspection Teams
c) Quality Injection Teams
d) Quality Improvement Teams
Answer: d
Explanation: According to Crosby’s Fourteen Steps for Quality Improvement, QITs refer to Quality Improvement T
eams. They are needed for quality improvement process planning and administration. There is a need to establish an
d ensure management commitment also.
11. Which of the following does not belong to Crosby’s Fourteen Steps for Quality Improvement?
a) Establish quality measurements

b) Establish a zero defect committee and program
c) Hold a zero defects day
d) Create constancy of purpose towards improvement of product and service.
Answer: d
Explanation: ‘Establish quality measurements’, ‘Establish a zero defect committee and program’, and ‘Hold a zero d
efects day’ all belong to Crosby’s Fourteen Steps for Quality Improvement. ‘Create constancy of purpose towards i
mprovement of product and service’ belongs to Deming’s fourteen points on route to quality.
12. According to Crosby’s Fourteen Steps for Quality Improvement, what do you mean by obstacle reporting?
a) To communicate to management about obstacles employees’ face in attaining quality improvement
b) To report about the no of steps employees’ climb on their way to office
c) To write an article on the topic ‘Obstacle’
d) To write an essay on the topic ‘Obstacle’
Answer: a
Explanation: According to Crosby’s Fourteen Steps for Quality Improvement, obstacle reporting means to encourag
e employees’ to communicate to management about the obstacles they face in attaining quality improvement goals s
et by the company. It is an important tool to track quality improvement and check progress of the company in achiev
ing the desired quality.
1. Which among the following is not an element of quality statements?
a) Vision Statement
b) Mission Statement
c) Quality Policy Statement
d) Submission Statement
Answer: d
Explanation: Vision Statement, Mission Statement, and Quality Policy Statement are elements of Quality Statements
. It is important for an effective leader to communicate the vision and mission of the organization to its employees.
2. The aspiration of the company in a short declaration is called the ________
a) Vision Statement
Answer: a
Explanation: The aspiration of the company in a short declaration is called the vision statement. It tells about the goa
ls of the company targeted by the company in the near future. It may be ideal in nature but the company tries to achi
eve it.
3. The declaration which lists the functions of an organization and mentions about the purpose of its employees, cust
omers, and suppliers is called the _________
a) Customer Statement
c) Supplier Statement
d) Employee Statement
Answer: b
Explanation: The declaration which lists the functions of an organization and mentions the purpose of its employees,
customers, and suppliers is called the Mission Statement. It tells about the way the company is planning its workfor
ce involvement, supplier relationship, and to attain customer satisfaction.
4. The guide for the organization as to how the organization would provide products and services to its customers is
called the _________
a) Quality Policy Statement

b) Product and Service Statement
c) Product Statement
d) Service Statement
Answer: a
Explanation: The guide for the organization as to how the organization would provide products and services to its cu
stomers is called the Quality Policy Statement. It tells about the quality goals set up by the organization and its deliv
ery pathway.
5. The quality policy should be written by the CEO and feedback from its employees is needed.
a) True
b) False
Answer: a
Explanation: The quality policy should be written by the CEO and feedback from its employees is needed. It is used
as a guide by the managers to plan their actions. The quality policy is a guide for everyone in the organization descri
bing the pathway in which the organization will deliver its products and services.
6. The quality policy is approved by the __________
a) Quality Improvement Team

b) Quality Council
c) Quality Control Team
d) Quality Assurance Team
Answer: b
Explanation: The quality policy is approved by the Quality Council. It is an important requirement of the ISO 9000
quality systems, the international standard for quality assurance. The quality policy is a guide for everyone in the org
anization describing the pathway in which the organization will deliver its products and services.
7. Which of the following is not a key element of a Mission Statement?
a) Obligation to Stakeholders
b) Scope of the Business
c) View of the Future
d) Quality Policy
Answer: d
Explanation: Obligation to Stakeholders, Scope of the Business, Sources of competitive advantage, and View of the
Future are the key elements of a Mission Statement. Quality Policy of the organization is declared in the Quality Pol
icy Statement.
8. Vision Statement must remain intact even if the market changes.
a) True
b) False
Answer: a
Explanation: Vision Statement must remain intact even if the market changes. It represents the core values the organ
ization would like to have in the future. It describes what the organization represents and not just what it does.
9. Vision Statement talks about the _______ future of the company and Mission Statement talks about the organizati
on’s ______ leading to the future.
a) Long term, Present

b) Short term, Future
c) Long term, Future
d) Short term, Present
Answer: a
Explanation: Vision Statement talks about the long term future of the company even though expecting marketing ch
anges. It represents the organization. The Mission Statement talks about the present leading to the future and represe
nts the functions of an organization.
10. The ______ and _______ can be together used in daily decision making.
a) Vision Statement, Decision Statement

b) Mission Statement, Decision Statement
c) Vision Statement, Mission Statement
d) Decision Statement, Progress Statement
Answer: c
Explanation: The Vision Statement and Mission Statement can be together used in daily decision making. The organ
ization’s core values need to be followed on a daily basis. It cannot derail itself from what its functions are and what
it represents.
11. An organization gave a declaration on its opening on 16th June 2019 that it wants ‘To eradicate poverty by 2025
’. Which quality statement is it referring to?
a) Vision Statement
Answer: a
Explanation: ‘To eradicate poverty by 2025’ is the organization’s vision statement. It represents the purpose of the e
xistence of the organization in the first place. But it doesn’t describe the way in which it will achieve it, hence, it is n
ot a Mission Statement. Also, the vision is to eradicate poverty by 2025.
1. The cost associated with NOT producing quality products or services is called ________
a) Cost of Quality
b) Cost of Poor Quality Product
c) Cost of Mistake
d) Cost of Poor Quality Service
Answer: a
Explanation: The cost associated with NOT producing quality products or services is called the Cost of Quality. It is
commonly mistaken as the cost associated with producing quality products or services.
2. Costs associated with improving quality or cost of conformance is called _______
a) Cost of Good Quality

b) Cost of Poor Quality
c) Cost of Improvement
d) Cost of Planning
Answer: a
Explanation: Costs associated with improving the quality or cost of conformance is called the cost of good quality. It
is a component of the cost of quality. The cost of quality can be used as a standard measure to study an organization
’s performance.
3. Costs associated with non-conformance or the costs due to poor quality is called ______
a) Cost of Good Quality

b) Cost of Poor Quality
c) Cost of Improvement
d) Cost of Planning
Answer: b
Explanation: Costs associated with non-conformance or the costs due to poor quality is called the cost of poor qualit
y. It is a component of the cost of quality. The cost of quality is used to understand, analyze, and improve quality per
formance.
4. Costs associated with the prevention of non-conformance to requirements is called _______
a) Prevention Costs
b) Appraisal Costs
c) Internal Failure Costs
d) External Failure Costs
Answer: a
Explanation: Costs associated with the prevention of non-conformance to requirements is called Prevention Costs. It
is a type of Cost of Good Quality. Cost of Good Quality is a component of the Cost of Quality.
5. Costs associated with appraising a product or service for conformance to requirements is called ______
a) Prevention Costs
b) Appraisal Costs
Answer: b
Explanation: Costs associated with appraising a product or service for conformance to requirements is called Apprai
sal Costs. It is a type of Cost of Good Quality. Cost of Good Quality is a component of the Cost of Quality.
6. Mathematically, the cost of quality equals to _______
a) Prevention Costs + Appraisal Costs + Internal Failure Costs + External Failure Costs
b) Prevention Costs + Appraisal Costs + Internal Failure Costs – External Failure Costs
c) Prevention Costs + Appraisal Costs + Internal Failure Costs * External Failure Costs
d) Prevention Costs – Appraisal Costs + Internal Failure Costs + External Failure Costs
Answer: a
Explanation: Mathematically, the cost of quality equals to Prevention Costs + Appraisal Costs + Internal Failure Cos
ts + External Failure Costs. Prevention Costs and Appraisal Costs belong to the Cost of Good Quality. Internal Failu
re Costs and External Failure Costs belong to the Cost of Poor Quality.
7. Which of the following does not belong to Prevention Costs?
a) Marketing research
b) Customer/User perception surveys
c) Design quality progress reviews
d) Lost sales
Answer: d
Explanation: Marketing research, Customer/User perception surveys, and Design quality progress reviews fall under
the category of Prevention Costs. Lost sales fall under the category of External Failure Costs.
8. Which of the following does not belong to Prevention Costs?
a) Design support activities

b) Product design qualification test
c) Service design qualification
d) Downgraded end-product or service
Answer: d
Explanation: Design support activities, Product design qualification test, and Service design qualification fall under t
he category of Prevention Costs. Downgraded end-product or service fall under the category of Internal Failure Cost
s.
9. Which of the following does not belong to Internal Failure Costs?
a) Rework due to Design Changes

b) Scrap due to Design Changes
c) Design Corrective Action
d) Returned Goods
Answer: d
Explanation: Rework, Scrap and Design Corrective Action fall under the category of Internal Failure Costs. Returne
d Goods fall under the category of External Failure Costs. Internal and External Failure Costs fall under the category
of Cost of Poor Quality.
10. Which of the following does not belong to Internal Failure Costs?
a) Uncontrolled Material Losses

b) Purchased Material Replacement Costs
c) Re-inspection / Retest Costs
d) Supplier Reviews
Answer: d
Explanation: Uncontrolled material losses, Purchased material replacement costs, Re-inspection / Retest Costs fall u
nder the category of Internal Failure Costs. Supplier reviews fall under the category of Prevention Costs.
11. Which of the following does not belong to External Failure Costs?
a) Complaint investigations
b) Warranty claims
c) Liability costs
d) Supplier quality planning
Answer: d
Explanation: Complaint investigations, Warranty claims, and Liability costs fall under the category of External Failu
re Costs. Supplier Quality Planning falls under the category of Prevention Costs.
12. Quality improvement, Quality education, and Quality performance reporting fall under the category of _______
a) Appraisal Costs
b) Prevention Costs
Answer: b
Explanation: Quality improvement, Quality education, and Quality performance reporting fall under the category of
Prevention Costs. Prevention costs fall under the category of Cost of Good Quality.
13. Retrofit costs fall under the category of _______
a) Appraisal Costs
b) Prevention Costs
Answer: d
Explanation: Retrofit costs fall under the category of External Failure Costs. Retrofit means to add a component or a
ccessory to something that did not have it when it was manufactured. External Failure Costs fall under the category
of Cost of Poor Quality.
14. Receiving or incoming inspections and tests fall under the category of ______
a) Purchasing Appraisal Costs

b) Operations Appraisal Costs
c) External Appraisal Costs
Answer: a
Explanation: Receiving or incoming inspections and tests fall under the category of Purchasing Appraisal Costs. Ap
praisal Costs fall under the category of Cost of Good Quality. Cost of Good Quality and Cost of Poor Quality are the
two categories of Cost of Quality.
15. Evaluation of field stock and spare parts fall under the category of ______
a) Purchasing Appraisal Costs

b) Operations Appraisal Costs
c) External Appraisal Costs
Answer: c
Explanation: Evaluation of field stock and spare parts fall under the category of External Appraisal Costs. Special pr
oduct evaluations and Field performance evaluations also fall under the category of External Appraisal Costs.
1. Quality cost per hour direct labor is called ________
a) Labor base index

b) Cost base index
c) Sales base index
d) Unit base index
Answer: a
Explanation: The quality cost per hour direct labor is called the Labor base index. Bases used to compare with qualit
y costs are labor base, production base, sales base, and unit base. Quality cost bases are used for measuring quality c
osts.
2. Quality cost per rupee of production cost is called _______
a) Labor base index

b) Cost base index
c) Sales base index
d) Production base index
Answer: b
Explanation: The quality cost per rupee of production cost is called the Cost base index. Bases used to compare with
quality costs are labor base, production base, sales base, and unit base. Quality cost bases are used for measuring qu
ality costs.
3. Quality cost per rupee of net sales is called _______
a) Labor base index

b) Rupee base index
c) Sales base index
d) Unit base index
Answer: c
Explanation: The quality cost per rupee of net sales is called the Sales base index. Bases used to compare with qualit
osts.
4. Quality cost per unit of production is called _______
a) Labor base index

b) Rupee base index
c) Sales base index
d) Unit base index
Answer: d
Explanation: The quality cost per unit of production is called the Unit base index. Bases used to compare with qualit
osts.
5. Timesheets, schedules and minutes of meetings are important sources for collecting/reporting quality costs in an o
rganization.
a) True
b) False
Answer: a
Explanation: Timesheets, schedules and minutes of meetings are important sources for collecting/reporting quality c
osts in an organization. They form a part of the quality cost collection.
6. Expense reports, credit and debit memos and cost estimates are important sources for collecting/reporting quality
costs in an organization.
a) True
b) False
Answer: a
Explanation: Expense reports, credit and debit memos and cost estimates are important sources for collecting/report
ing quality costs in an organization. They form a part of the quality cost collection.
7. What is the other name of intangible costs?
a) Hidden Costs
b) Prevention Costs
c) Appraisal Costs
d) Internal Failure Costs
Answer: a
Explanation: The other name of intangible costs is Hidden Costs. They are the cost associated with providing a non-
conforming product or service to a customer that is difficult to identify and quantify.
8. Which of the following does not fall under the category of Hidden Costs?
a) Potential loss sales

b) Loss of customer goodwill
c) Offsetting customer dissatisfaction
d) Marketing research
Answer: d
Explanation: Potential loss sales, Loss of customer goodwill and Offsetting customer dissatisfaction fall under the c
ategory of Hidden Costs. Some of the other hidden costs are customer dissatisfaction cost and loss of company imag
e.
9. Which of the following describes best Juran’s model of optimum quality costs?
a) It includes costs of internal and external failures curve, costs of appraisal and prevention curve and total quality c
osts curve
b) It includes costs of internal and external failures curve and costs of appraisal and prevention curve
c) It includes costs of internal and external failures curve and total quality costs curve
d) It includes costs of appraisal and prevention curve and total quality costs curve
Answer: a
Explanation: It includes costs of internal and external failures curve, costs of appraisal and prevention curve and tota
l quality costs curve. Juran’s model indicates that 100% quality is very effective and that always there must be some
defects.
10. The commonly used techniques for measuring quality costs are __________
a) Trend analysis and Pareto analysis

b) Trend analysis only
c) Pareto analysis only
d) Trigonometry
Answer: a
Explanation: The commonly used techniques for measuring quality costs are Trend analysis and Pareto analysis. The
aim of these techniques is to determine opportunities for quality improvement.
1. According to Teboul’s model of customer satisfaction, identify the regions shaded in red, green and yellow respec
tively.
a) Company Offer, Customer Satisfaction, Customer Needs

b) Customer Satisfaction, Customer Needs, Company Offer
c) Customer Needs, Customer Satisfaction, Company Offer
d) Customer Needs, Company Offer, Customer Satisfaction
Answer: a
Explanation: The Square in red represents the product or service offered by the company. The Circle in yellow repre
sents the customer needs. The Intersection in green represents customer satisfaction. The company should look forw
ard to increasing the intersection portion.
2. Who among the following is not a hidden customer?
a) Regulators
b) Critics
c) Opinion leaders
d) Managers
Answer: d
Explanation: Regulators, Critics, and Opinion Leaders are hidden customers. The media, corporate policy makers, la
bor unions and professional associations are other hidden customers. Hidden customers are a type of External Custo
mers.
3. Those who are not currently using the product but have the capability of becoming customers in future are called
__________
a) Potential Customers
b) Hidden Customers
c) Suppliers
d) Processors
Answer: a
Explanation: Those who are not currently using the product but have the capability of becoming customers are calle
d Potential Customers. It is important to gauge potential customers so as to have a proper estimate of the number of
customers that will use a company’s product or service in the near future.
4. Organizations / People who use the product or output as an input for producing their own product are called ____
_____
a) Potential Customers
b) Hidden Customers
c) Suppliers
d) Processors
Answer: d
Explanation: Organizations / People who use the product or output as an input for producing their own product are c
alled Processors. For example, a refinery that receives crude oil and processes it further into different products.
5. Who among the following do not fall under the category of External Customers?
a) Purchasers
b) Merchants
c) Hidden Customers
d) Quality Management Unit of a Company
Answer: d
Explanation: Purchasers, Merchants and Hidden Customers fall under the category of External Customers. Quality
Management Unit of a Company can be considered to be an Internal Customer.
6. According to ASQ survey, which of the following is not part of customer perceptions?
a) Performance
b) Features
c) Service
d) Discredit
Answer: d
Explanation: Performance, Features and Service are part of customer perceptions. Discredit is opposite to Reputatio
n. The other customer perceptions are Warranty, Price and Reputation.
7. In the modern world, warranty attached to a product attracts and build markets.
a) True
b) False
Answer: a
Explanation: In the modern world, warranty attached to a product attracts and build markets. It imposes faith in a cus
tomer that if at all any problem is faced by them then they can claim for repair or exchange.
8. Reputation of a firm brings the market to them and fetches them more customers.
a) True
b) False
Answer: a
Explanation: Reputation of a firm brings the market to them and fetches them more customers. Customers prefer to c
hoose companies offering similar products based on their reputation. So, organizations must look to ensure that they
retain customer satisfaction for a longer period of time.
9. Which among the following is not a factor influencing customer perception of quality before making a purchase?
a) Company’s brand name and image

b) Opinions of friends
c) Spare parts availability
d) Published Test Results
Answer: c
Explanation: Company’s brand name and image, Opinions of friends and Published Test results are important factor
s influencing customer perception of quality before making a purchase. Spare parts availability is an important factor
influencing customer perception of quality after purchase.
10. Which among the following does not fall under the category of factors influencing customer perception of qualit
y before making a purchase?
a) Previous experience
b) Advertised price for performance
c) Store reputation
d) Reliability
Answer: d
Explanation: Previous experience, Advertised price for performance and Store reputation are important factors influ
encing customer perception of quality before making a purchase. Reliability is an important factor influencing custo
mer perception of quality after purchase.
11. Which among the following does not fall under the category of factors influencing customer perception of qualit
y at the point of making a purchase?
a) Performance specifications
b) Comments of sales people
c) Warranty provisions
d) Service effectiveness
Answer: d
Explanation: Performance specifications, Comments of sales people and Warranty provisions are important factors i
nfluencing customer perception of quality at the point of making a purchase. Service effectiveness is an important fa
ctor influencing customer perception of quality after purchase.
12. Which among the following is not a factor influencing customer perception of quality at the point of making a p
urchase?
a) Service and Repair Policies

b) Support Programs
c) Quoted Price for Performance
d) Comparative Performance
Answer: d
Explanation: Service and Repair Policies, Support Programs and Quoted Price for Performance are important factors
influencing customer perception of quality at the point of making a purchase. Comparative Performance is an impor
tant factor influencing customer perception of quality after purchase.
13. Which among the following is not a factor influencing customer perception of quality after making a purchase?
a) Ease of use
b) Ease of installation
c) Previous experience
d) Handling of repairs claims and warranty
Answer: c
Explanation: Ease of use, Ease of installation and Handling of repairs, claims and warranty are important factors infl
uencing customer perception of quality after making a purchase. Previous experience is an important factor influenci
ng customer perception of quality before making a purchase.
14. Which of the following is not the best way to gather information about customer needs?
a) Information on competitor’s products

b) Personal visits to customer locations
c) Employees with special knowledge of the customer
d) Threatening customers to tell their needs
Answer: d
Explanation: Information on competitor’s products, Personal visits to customer locations and Employees with specia
l knowledge of the customer are some of the best ways to gather information about customer needs. Identifying cust
omer needs is an essential duty of any organization so as to deliver more relatable products or services to the custom
er.
15. Which of the following cannot be considered as a technique to gather information about customer needs?
a) Customer meetings
b) Tracking customer complaints
c) Government or Independent Laboratory Data
d) Waiting for customer to come and tell about their needs
Answer: d
Explanation: Customer meetings, Tracking customer complaints and Information from Government or Independent
Laboratory Data are all techniques to gather information about customer needs. Waiting for customers to come and t
ell about their needs is something an organization should never plan.
1. Which of the following is false regarding the Kano Model of Customer Satisfaction?
a) Identifying customer needs

b) Determining functional requirements
c) Concept development
d) Inability in analyzing competitive product
Answer: d
Explanation: The Kano Model of Customer Satisfaction is useful for Identifying customer needs, Determining functi
onal requirements, Concept development and Analyzing competitive products. The Kano model categorizes custome
r needs into basic needs, performance needs and excitement needs.
2. Complaints, industry standards, and what your competitors are doing are techniques to gather information about B
asic Needs.
a) True
b) False
Answer: a
Explanation: Complaints, industry standards, and what your competitors are doing are techniques to gather informati
on about Basic Needs. They are the needs that get a company in the market.
3. The customer needs that keep a company in the market are called ___________
a) Performance Needs
b) Basic Needs
c) Excitement Needs
d) Excess Needs
Answer: a
Explanation: Performance needs are the customer needs that keep a company in the market. For example, customers
would be willing to pay more for a building in an earthquake-prone area that offers greater preparedness in case an e
arthquake occurs.
4. Market research, focus groups, Surveys, Clinics, Interviews, and Contextual Enquiry are techniques to gather info
rmation about Performance Needs.
a) True
b) False
Answer: a
Explanation: Market research, focus groups, Surveys, Clinics, Interviews, and Contextual Enquiry are techniques to
gather information about Performance Needs. Customer’s happiness is related to how well the performance needs ar
e met.
5. The customer needs that bring with them pleasant surprises and customer delight are called ________________
a) Performance Needs
b) Basic Needs
c) Excitement Needs
d) Excess Needs
Answer: c
Explanation: The customer needs that bring with them pleasant surprises and customer delight are called Excitement
Needs. Excitement needs if not fulfilled has no effect on customer satisfaction.
6. The expression of dissatisfaction with a product/service, either orally or in writing, from an internal customer or e
xternal customer is called _______
a) customer needs
b) customer delight
c) customer expectations
d) customer complaints
Answer: d
Explanation: The expression of dissatisfaction with a product/service, either orally or in writing, from an internal cus
tomer or external customer, is called customer complaints. Customer complaints may be due to a genuine cause, mis
understanding or unreasonable expectations.
7. Which of the following is not a tool used to collect customer complaints?
a) Ask the manager of the company to list down potential reasons for customer complaints
b) Social media
c) Toll – free telephone numbers
d) Customer visits
Answer: a
Explanation: Social media, Toll – free telephone numbers, Customer visits, Customer questionnaire, Post – transacti
on surveys and Focus groups are some of the tools used to collect information about customer complaints. Customer
complaints may be related to the product or after-sales service.
8. _________ is the set of activities performed by an organization used to satisfy the customer and their needs.
a) Customer satisfaction
b) Customer service
c) Customer needs
d) Customer delight
Answer: b
Explanation: Customer service is the set of activities performed by an organization used to satisfy the customer and t
heir needs. The service can be provided before the sale of the product, during the sale of the product and after the sal
e of the product.
9. Which of the following is not an element of customer service?
a) Organization
b) Customer care
c) Communication
d) Co-founder
Answer: d
Explanation: Organization, Customer care, Communication, Front-line People and Leadership are the elements of cu
stomer service. Customer service refers to the set of activities performed by an organization to satisfy customers and
their needs.
10. ________ defines activities which occur within an organization that ensures a customer is not only satisfied but
also retained.
a) Customer care
b) Customer satisfaction
c) Customer needs
d) Customer delight
Answer: a
Explanation: Customer care defines activities that occur within an organization that ensures a customer is not only sa
tisfied but also retained. Customer retention is more important than attracting new customers.
1. The process of involving yourself and influencing others towards the accomplishment of goals is called _______
a) Leadership
b) Dictatorship
c) Sportsmanship
d) Autocracy
Answer: a
Explanation: The process of influencing others towards the accomplishment of goals is called leadership. Leaders in
still the will to do, show direction and help the group members in achieving company’s goal.
2. Leaders use _______ to create a sustainable competitive advantage for their organization.
a) Ineffective strategy
b) Effective strategy
c) Papers
d) Media
Answer: b
Explanation: Leaders use effective strategy to create a sustainable competitive advantage for their organization. Strat
egy means the decisions that determine and reveal a company’s goals, policies, and plans to meet the need of its stak
eholders.
3. Quality leaders give primary importance to ___________ and their needs.
a) Internal and external customers

b) Founder and co-founder
c) Founder and internal customer
d) Founder and external customer
Answer: a
Explanation: Quality leaders give primary importance to internal and external customers and their needs. Leaders lis
ten to customers, seek their opinion on the value of products or services, develop a close relationship with customers
, implement joint improvement activity and lead the handling of complaints.
4. Quality leaders care about the development of people’s skills and capabilities.
a) True
b) False
Answer: a
Explanation: Quality leaders care about the development of people’s skills and capabilities. People are responsible f
or their work. Quality leaders monitor, appraise and recognize people’s performance.
5. Which of the following is false regarding the supplier and quality leader relationship?
a) Support them when needed, Audit their capabilities

b) Recognize quality improvements made by suppliers
c) Encourage joint improvement action
d) Scold them if there is lack of quality
Answer: d
Explanation: Quality leaders create awareness about the desired quality to suppliers. They audit their capabilities. Th
ey support the suppliers and recognize joint improvement action to instill quality improvement.
6. Quality leaders focus on _____________ rather than maintenance.
a) Continuous improvement
b) Discontinuous improvement
c) Static improvement
d) Aesthetics
Answer: a
Explanation: Quality leaders focus on continuous improvement rather than maintenance. Continuous improvement h
elps a company to adapt to changing customer needs.
7. Quality Leaders _________ people rather than directing and supervising them.
a) Train and coach

b) Scold
c) Threaten
d) Fire
Answer: a
Explanation: Quality leaders train and coach people rather than directing and supervising them. Directing and superv
ising is related to old tradition of management. Training and coaching is related to total quality management.
8. Which of the following is false regarding quality leaders promoting teamwork?
a) Multidisciplinary teamwork
b) Create involvement
c) Active participation of everyone
d) Discourage involvement
Answer: d
Explanation: Quality leaders promote teamwork by introducing multidisciplinary teamwork, creating involvement a
nd active participation of everyone. Teamwork is essential in achieving company’s goal.
9. Quality leaders support benchmarking.

a) False
b) True
Answer: b
Explanation: Quality leaders support benchmarking. They learn from their competitors and try to instill similar kind
of ideas in their organization by learning how their competitors are more successful.
10. Quality leaders encourage _______ over ________ when we consider functions of various departments in a com
pany.
a) Collaboration, competition
b) Competition, collaboration
c) Competition, threat
d) Threat, collaboration
Answer: a
Explanation: Quality leaders encourage collaboration over competition when we consider functions of various depar
tments in a company. Collaboration results in improved communication and helps in resolving problems collectively
. Competition results in unnecessary hatred sometimes.
11. Which of the following is false regarding the kind of environment quality leaders try to build in a company?
a) Empowerment
b) Innovation
c) Agility
d) Localized learning
Answer: d
Explanation: The kind of working environment that quality leaders try to instill is that of empowerment, innovation,
agility and organizational learning. These characteristics help in continuous quality improvement.
12. Which of the false regarding quality leaders reviewing organizational performance?
a) They review organizational performance but not their own performance

b) They review organizational performance and also their own performance
c) They don’t review organizational performance as they hate it
d) They don’t review organizational performance as they don’t have time for it
Answer: b
Explanation: Quality leaders review organizational performance and also evaluate their own performance. This is th
e basic feature of a total quality management system where everybody is considered to have one single goal and that
is too have continious improvement in achieving customer satisfaction.
1. Which of the following is an autocratic style of leadership?
a) Directing style of leadership

b) Consultative style of leadership
c) Participative style of leadership
d) Delegating style of leadership
Answer: a
Explanation: Directing style of leadership is an autocratic style of leadership. For example, when the leader is more
versed and has a wide range of the knowledge about the subject, he/she decides to have the final say and does not fe
el the need to consult his/her team.
2. In which of the following leadership styles the workforce have little input or feedback?
Answer: a
Explanation: In directing style of leadership, the workforce have little input or feedback. It is having an autocratic st
yle. This is due to the fact that the leader may be well versed in taking the final decision for the matter under concer
n.
3. The type of leadership style in which the leader seeks input from those working under him/her is called ________
_
a) Indirect style of leadership

c) Direct style of leadership
Answer: b
Explanation: The type of leadership style in which the leader seeks input from those working under him/her is called
Consultative style of leadership. This kind of leadership encourages participation from the workforce of the organiz
ation.
4. In consultative style of leadership, the _______ is the final decision maker.
a) Leader
b) Workforce
c) Founder
d) Co-founder
Answer: a
Explanation: In consultative style of leadership, the leader is the final decision maker. The leader may take advice, s
uggestions and inputs from the workforce but the final decision is made by the leader.
5. Which of the following is false regarding Participative Style of Leadership?
a) Leader assigns work to the workforce

b) Leader provides guidance during the work process
c) Leader makes decision based on the conclusions made by the workforce
d) Leader doesn’t assign any task to its workforce
Answer: d
Explanation: In Participative Style of Leadership, Leader provides guidance during the work process provides guida
nce during the work process and makes decision based on the conclusions made by the workforce. The leader is mor
e likely to take the final decision of the matter based on the results produced by the workforce when compared to Co
nsultative style of leadership.
6. In which of the following kind of leadership style the individual or team is given responsibility and authority to co
mplete the task with minimum input from the leader?

Answer: d
Explanation: In Delegating style of leadership, the individual or team is given responsibility and authority to comple
te the task with minimum input from the leader. The leader checks to verify successful completion of the assignment
and participates only if he/she feels it is necessary.
7. Which of the following is not a kind of leadership skill required for effective leadership?
a) Vision
b) Empowerment
c) Intuition
d) Threat
Answer: d
Explanation: Vision, Empowerment, Intuition, Self-understanding and Value congruence are the five core leadership
skills required for effective leadership. A leader without skills can never impart effective quality into the system. A
leader with skills can impart quality and also focus on continuous improvement. A leader should never threaten his/h
er workforce.
8. _______ occurs when leaders integrate their values into the company’s system.
a) Intuition
b) Self – understanding
c) Value congruence
d) Vision
Answer: c
Explanation: Value congruence occurs when leaders integrate their values into the company’s system. Values are ass
umptions and beliefs related to the nature of the business, mission, people and relationships of an organization.
9. Which values does an effective leader focus on?
a) Trust and respect of individuals

b) Openness
c) Teamwork
d) Disintegration
Answer: d
Explanation: An effective leader focuses on the values of trust and respect of individuals, openness, teamwork, integ
rity and commitment to quality. He/she focuses on value congruence. He/she should realize that effective leadership
needs to incorporate value congruence.
10. The vision of a leader is crucial during times when the customer needs change.
a) True
b) False
Answer: a
Explanation: The vision of a leader is crucial during times when the customer needs change. They recognize the radi
cal organizational changes taking place today as opportunities to achieve total quality.
11. Leaders empower employees to take and assume ownership of problems or opportunities and to be pro-active.
a) True
b) False
Answer: a
Explanation: Leaders empower employees to take and assume ownership of problems or opportunities and to be pro-
active. They need to be pro-active in implementing continuous improvement strategies and making decisions in line
with the vision, mission and quality policy of the organization.

1. When did the Quality Council of India form?
a) 1993
b) 1997
c) 1998
d) 1999
Answer: b
Explanation: The Quality Council of India was formed in 1997 as an autonomous body. It was formed jointly by the
Government of India and the Indian industry represented by ASSOCHAM, CII, and FICCI. The chairman of the QC
I is appointed by the Prime Minister after a recommendation from the industry is sent to the government.
2. A _______ is a team that provides overall direction for achieving total quality culture.
a) Quality Council
b) Quality Management
c) Quality Chancellor
d) Quality Commissioner
Answer: a
Explanation: A Quality Council is a team that provides overall direction for achieving total quality culture. For exam
ple, we have the Quality Council of India formed in 1997. Dr. APJ Abdul Kalam assigned a mission for QCI “The N
ational Well Being”.
3. The objective of the Quality Council team is to establish quality in the work culture of the organization.
a) True
b) False
Answer: a
Explanation: The objective of the Quality Council team is to establish quality into the work culture of the organizati
on. An organization having a well-organized quality council team is bound to be successful.
4. Who among the following is not part of a Quality Council team of an organization?
a) CEO
b) Senior managers of functional areas
c) Quality Council coordinator or consultant
d) External customer
Answer: d
Explanation: CEO, senior managers of functional areas like design, marketing, production, quality, and quality coun
cil coordinators or consultants are part of the Quality Council team of an organization. An external customer receive
s the quality bound goods or services from the organization.
5. Which of the following is not a method that can be implemented by the Quality Council team to promote quality c
onsciousness in the organization?
a) Seminars
b) Study Tours
c) Training
d) Threatening the workforce to follow the quality policy
Answer: d
Explanation: The Quality Council team can promote quality consciousness in the organization by conducting semina
rs, organizing study tours and providing training. Threatening the workforce brings in fear within the workforce and
due to this the working environment becomes submissive.
6. In a production company, the testing and calibration facilities have not been upgraded. What is the duty of the Qu
ality Council team?
a) There is no need to worry to upgrade the existing facilities

b) Immediately plan to upgrade the existing facilities
c) Planning to upgrade the existing facilities is a crime
d) Wait for the existing facilities to fail
Answer: b
Explanation: The Quality Council team must immediately plan to upgrade the existing testing and calibration faciliti
es. This will help the company deliver quality products to customers which is their prime duty.
7. To encourage basic and applied R&D in the field of quality and sharing the results with the organization is one of
the duties of the Quality Council team.
a) False
b) True
Answer: b
Explanation: To encourage basic and applied R&D in the field of quality and sharing the results with the organizatio
n is one of the duties of the Quality Council team. This concept will foster continuous quality improvement within th
e organization.
8. Which of the following is not the responsibility of the Quality Council Coordinator?
a) To develop two-way trust

b) To empower the team
c) To share council expectations with the team
d) To develop one-way trust
Answer: d
Explanation: The communication between the Quality Council Coordinator and his/her team is very important. To d
evelop two-way trust, to empower the team, to share council expectation with the team and to brief the council on te
am progress are the essential responsibilities that the Quality Council Coordinator must perform.
9. Which of the following is not the duty of the Quality Council?
a) To establish the core values and quality statements

b) To end the planning of training and education programs
c) To determine and monitor the cost of poor quality
d) To establish the strategic long – term plan with goals
Answer: b
Explanation: To establish the core values and quality statements, to determine and monitor the cost of poor quality a
nd to establish the strategic long – term plan with goals are the important duties of the Quality Council. It should als
o focus on the planning of education and training programs.
10. Which of the following is not the duty of the Quality Council?
a) To perform and monitor the performance measure of each functional area

b) To determine continually those projects that improve the processes affecting customer satisfaction
c) To establish the multi-functional project and departmental teams and monitor their progress
d) To prevent establishing/revising the recognition and reward system periodically
Answer: d
Explanation: To perform and monitor the performance measure of each functional area of the organization, to deter
mine continually those projects that improve the processes affecting customer satisfaction and to establish the multi-
functional project and departmental teams and monitor their progress are the important duties of the Quality Council
. It should also focus on establishing/revising the recognition and reward system periodically.
1. The long-term direction of the organization in which it wants to proceed in the future is known as __________
a) Strategic Planning
b) Short-Term Planning
c) Operational Planning
d) Contingency Planning
Answer: a
Explanation: Strategic Planning is the long-term direction of the organization in which it wants to proceed in the fut
ure. It connects the present with the vision of the organization in the future.
2. Identify the correct option with respect to the activities involved in Strategic Planning.
a) Developing goals only

b) Developing objectives only
c) Developing action plans only
d) Developing goals, objectives and action plans
Answer: d
Explanation: Developing goals, objectives and action plans are the activities involved in Strategic Planning. Strategi
c Planning involves the long term direction in which the organization wants to proceed.
3. Which of the following is correct in terms of the scope for Strategic Planning?
a) One month
b) Two months
c) Three months
d) Four years
Answer: d
Explanation: Strategic Planning is a long term direction in which the organization would like to see itself in the futur
e. Hence, one month, two months and three months are short time periods that cannot be associated with Strategic Pl
anning. Hence, four years is the correct option.
4. Strategic Planning is one of the critical aspects of leadership.
a) True
b) False
Answer: a
Explanation: Strategic Planning is one of the critical aspects of leadership. A quality leader must focus on strategic p
lanning estimating the kind of challenges that the organization may face in the future.
5. The attempts that are made to improve an organization’s performance by making mission statements concrete are
called ________
a) Goals
b) Objectives
c) Plans
d) Action Plans
Answer: a
Explanation: The attempts that are made to improve an organization’s performance by making mission statements co
ncrete are called goals of an organization. The other important activities in strategic planning are goals, objectives an
d action plans.
6. Which of the following is not a best practice for an organization when it is planning its goals?
a) Improving customer satisfaction target
b) Cost reduction targets in a year
c) Improving market share
d) Decreasing market share
Answer: d
Explanation: Improving customer satisfaction target, Cost reduction targets in a year, Improving market share and i
mproving shareholders’ value are the best practices for an organization when it is planning its goals. The other impo
rtant activities involved in strategic planning are goals, objectives, and action plans.
7. The operational definition of goals is called __________
a) Goals
b) Objectives
c) Plans
d) Action Plans
Answer: b
Explanation: The operational definition of goals is called the objectives of an organization. They can be measured, t
hey have a time dimension and they help in reducing conflicts.
8. Which of the following describes special tactics, assigned responsibilities, how resource allocation is done, sched
uled activities and efforts and specify vision target?
a) Goals
b) Special Objectives
c) Plans
d) Objectives
Answer: c
Explanation: Plans describe special tactics, assigned responsibilities, how resource allocation is done, scheduled acti
vities and efforts and specify vision targets. The other activities in strategic planning are the goals and objectives of
an organization.
9. Which of the following is not an example of strategic planning in an organization?
a) The planned growth rate in sales

b) Diversification of business into new lines
c) Types of products to be offered
d) The planning for natural disasters
Answer: d
Explanation: The planned growth rate in sales, Diversification of business into new lines and Types of products to b
e offered are examples of strategic planning in an organization. The planning for natural disasters is to be included i
n the contingency plan of the organization.
10. Identify the correct option with respect to the goals and objectives of an organization having a strategic quality p
lanning.
a) They are Process and Result oriented

b) They are Process oriented
c) They are Result oriented
d) They are neither Process oriented nor Result oriented
Answer: a
Explanation: The goals and objectives of an organization having a strategic quality planning are Process and Result
oriented. The goals and objectives of an organization having traditional strategic planning are results oriented.
11. Identify the correct option with respect to the goals and objectives of an organization having a strategic quality p
lanning.
a) They are based on data and driven by trend or pattern analysis

b) They are based on hunches or guesses
c) They are based on neither data nor guesses
d) They are based on social media
Answer: a
Explanation: The goals and objectives of an organization having a strategic quality planning are based on data and d
riven by trend or pattern analysis. The goals and objectives of an organization having traditional strategic planning a
re based on hunches or guesses.
12. Improvement activities in strategic quality planning are focused on activities critical to success.
a) True
b) False
Answer: a
Explanation: Improvement activities in strategic quality planning are focused on activities critical to success. In tradi
tional strategic planning, improvement activities lack focus.
13. Which of the following statement is incorrect with respect to strategic quality planning cycle?
a) The identification of customer needs is the first step

b) The determination of customer positioning is the second step
c) It is necessary to predict the future and is the third step
d) The study of gap analysis and how to open the gap
Answer: d
Explanation: The identification of customer needs, the determination of customer positioning and to predict the futur
e are the first three steps of the strategic quality planning cycle. The fourth step is to study the gap analysis and how
to close the gap. Aligning the plan with the mission and vision and the implementation of it are the final steps.
1. Which of the following is not an important aspect of employee involvement?
a) Employee motivation
b) Employee empowerment
c) Team and Teamwork
d) Keeping employee morale down
Answer: d
Explanation: Employee motivation, Employee empowerment, Team, Teamwork, Recognition, Reward schemes, and
Performance appraisal are important aspects of employee involvement. Employee morale should always be kept hig
h. A healthy mind leads to a healthy body.
2. Motivation is the process of stimulating people to accomplish _________
a) Desired goals
b) Desired homework
c) Desired assignment
d) Desired homework and assignment
Answer: a
Explanation: Motivation is the process of stimulating people to accomplish desired goals. It is an important aspect of
employee involvement. Employee involvement leads to the quick and successful growth of the organization.
3. Motivation is the process of attempting to influence others to do their work through the possibility of getting rewa
rds. Who gave this definition of ‘motivation’?
a) Edwin B. Flippo
b) E.F.L. Breach
c) Crosby
d) Deming
Answer: a
Explanation: Motivation is the process of attempting to influence others to do their work through the possibility of g
etting rewards. The definition was given by Edwin B. Flippo. Also, according to Scott, Motivation is the process of s
timulating people to accomplish desired goals.
4. Which of the options is incorrect with respect to the importance of ‘employee motivation’?
a) It promotes employee involvement

b) It promotes job satisfaction
c) Reduces absenteeism
d) Increases absenteeism
Answer: d
Explanation: Employee motivation leads to employee involvement. It promotes job satisfaction. It reduces absenteei
sm as the workforce is motivated to work for the growth of the organization.
5. Motivation creates a congenial working atmosphere in the organization and promotes __________
a) Internal hatred
b) External hatred
c) Interpersonal cooperation
d) Internal and external hatred
Answer: c
Explanation: Motivation creates a congenial working atmosphere in the organization and promotes Interpersonal co
operation. A congenial working atmosphere will improve interdepartmental communication also with fewer barriers
involved.
6. Which of the following is not part of the basic needs mentioned by Maslow?
a) Physiological needs
b) Safety needs
c) Social needs
d) Hazard needs
Answer: d
Explanation: According to Maslow, basic needs are physiological needs, safety needs, social needs, esteem needs, a
nd self – actualization needs. According to him, human motivation is a hierarchy of five needs.
7. According to Maslow’s hierarchy of needs, the biological needs required to preserve human life are called ______
____
a) Physiological needs
b) Safety needs
c) Social needs
d) Hazard needs
Answer: a
Explanation: According to Maslow’s hierarchy of needs, the biological needs required to preserve human life are cal
led physiological or survival needs. The other basic needs are safety needs, social needs, esteem needs, and self – act
ualization needs.
8. According to Maslow’s hierarchy of needs, the needs for food, cloth, and shelter belong to _____________
a) Survival needs
b) Social needs
c) Esteem needs
d) Self – actualization needs
Answer: a
Explanation: According to Maslow’s hierarchy of needs, the needs for food, cloth, and shelter belong to survival nee
ds. They are supposed to be met first. Survival needs are also known as physiological needs.
9. According to Maslow’s hierarchy of needs, which of the following does not belong to safety needs?
a) Protection from fire and accident

b) Lack of economic security involving health and insurance
c) The desire for an orderly and predictable environment
d) The desire to know the limits of acceptable behavior
Answer: b
Explanation: Protection from fire and accident, economic security involving health and insurance, the desire for an o
rderly and predictable environment and the desire to know the limits of acceptable behavior belong to the category o
f safety needs. Safety needs are activated when physiological needs are reasonably satisfied.
10. Safety needs are provisions against deprivation in the future.
a) True
b) False
Answer: a
Explanation: Safety needs are provisions against deprivation in the future. They involve a sense of protection against
dangers and threats. They are activated once the survival needs are reasonably satisfied.
11. Maslow’s hierarchy of needs and Herzberg’s two-factor theories are related to motivation.
a) True
b) False
Answer: a
Explanation: Maslow’s hierarchy of needs and Herzberg’s two-factor theories are related to motivation. Motivation
leads to employee involvement. Employee involvement leads to the quick and successful growth of the organization.
1. According to Maslow’s hierarchy of needs, which of the following does not belong to social needs?
a) Friendship
b) Exchange of feelings and grievances
c) Belongingness
d) Economic security
Answer: d
Explanation: According to Maslow’s hierarchy of needs, friendship, exchange of feelings and grievances and belong
ingness belong to the category of social needs. Social needs accompanied by survival needs and safety needs is very
important.
2. Which of the following needs are also known as self – realization needs?
a) Survival needs
b) Safety needs
c) Social needs
d) Self – actualization needs
Answer: d
Explanation: Self – actualization needs are also known as self – realization needs. They refer to the desire to become
everything that one is capable of becoming.
3. Which of the following needs according to Maslow’s hierarchy belong to the category of low-level needs?
a) Survival needs, Safety needs, Esteem needs

b) Survival needs, Safety needs, Social needs
c) Safety needs, Social needs, Esteem needs
d) Social needs, Esteem needs, Self – actualization needs
Answer: b
Explanation: Survival needs, Safety needs, Social needs are low-level needs. Esteem needs and self – realization nee
ds are high-level needs. Self – realization needs are also known as self – actualization needs.
4. According to Maslow’s hierarchy of needs, the low-level needs can be satisfied by monetary and non – monetary
compensations.
a) True
b) False
Answer: a
Explanation: According to Maslow’s hierarchy of needs, the low-level needs can be satisfied by monetary and non –
monetary compensations. The low-level needs are survival needs, social needs, and safety needs.
5. Herzberg’s Two Factor Theory is also known as ____________
a) Motivation – hygiene theory

b) Motivation theory
c) Hygiene theory
d) Maslow’s hierarchy of needs
Answer: a
Explanation: Herzberg’s Two Factor Theory is also known as motivation – hygiene theory. Both Maslow’s hierarch
y of needs and Herzberg’s Two Factor Theory are important theories related to motivation.
6. Which of the following is not a Motivation factor according to Herzberg’s Two Factor Theory?
a) Achievement
b) Recognition
c) Responsibility
d) Pay and security
Answer: d
Explanation: Achievement, Recognition and Responsibility are Motivation Factors. Pay and security belongs to the
category of Hygiene Factors. Both motivation and hygiene factors are part of Herzberg’s Two Factor Theory.
7. Which of the following is not a Hygiene factor according to Herzberg’s Two Factor Theory?
a) Supervisors
b) Working conditions
c) Interpersonal relationships
d) Advancement and Growth
Answer: d
Explanation: Supervisors, Working conditions and Interpersonal relationships are Hygiene Factors. Advancement an
d Growth belongs to the category of Motivation Factors. Both motivation and hygience factors are part of Herzberg’
s Two Factor Theory.
8. According to Herzberg’s Two Factor Theory, Motivation factors and Hygiene factors are also known as _______
__ and _________
a) Satisfiers, Satisfiers
b) Dissatisfiers, Satisfiers
c) Satisfiers, Dissatisfiers
d) Dissatisfiers, Dissatisfiers
Answer: c
Explanation: According to Herzberg’s Two Factor Theory, Motivation factors and Hygiene factors are also known a
s Satisfiers and Dissatisfiers respectively. Both Maslow’s hierarchy of needs and Herzberg’s Two Factor Theory are
important theories related to motivation.
9. According to Maslow’s hierarchy of needs, esteem needs are of two types.
a) True
b) False
Answer: a
Explanation: According to Maslow’s hierarchy of needs, esteem needs are of two types, self-esteem and esteem of ot
hers. Self-esteem needs include those for self-confidence, achievement, competence, self-respect, knowledge, and in
dependence and freedom. The esteem of others is related to one’s reputation needs for status, for recognition, for ap
preciation and the deserved respect of one’s fellows.
10. According to Herzberg’s Two Factor Theory, Hygiene Factors are also known as ______
a) Maintenance factors
b) Motivation factors
c) Mission factors
d) Machine factors
Answer: a
Explanation: According to Herzberg’s Two Factor Theory, hygiene factors are also known as Maintenance factors.
These factors do not provide satisfaction to the workforce but their absence will dissatisfy them. Hence, they are kno
wn as dissatisfiers.
1. Empowerment is the opposite of ________
a) Motivated
b) Accomplishment
c) Helplessness
d) Goal
Answer: c
Explanation: Empowerment is the opposite of helplessness or dependency. An empowered employee is capable of h
andling small obstacles without guidance. An employee who is feeling helplessness comparatively will be in urgent
need of help and is dependent.
2. Which are the two important factors on which empowerment depend on?
a) Individual’s personal choices and his family choices

b) Individual’s personal choices and his manager’s choice
c) Individual’s personal choices and the organizational climate
d) The organizational climate and his manager’s choice
Answer: c
Explanation: An individual’s personal choices and the organizational climate are two important factors on which em
powerment depend on. The organizational climate can either encourage dependency or faster autonomy.
3. In the work environment, what is the meaning of empowerment?
a) Providing people the means, ability and authority to do something they have not done before
b) Discouraging people from doing something they have not done before
c) Threatening people to do something they have not done before
d) Threatening people to do something they have done before
Answer: a
Explanation: In the work environment, providing people the means, ability and authority to do something they have
not done before is known as employee empowerment. Employee empowerment is an essential component of a progr
essive organization.
4. Which of the following is odd one out with respect to the operational definition of empowerment?
a) People have ability to take responsibility and ownership

b) People have the confidence in taking responsibility and ownership
c) People are committed to take responsibility and ownership
d) People fear to take responsibility and ownership
Answer: d
Explanation: In an empowered organization, people have the ability, confidence and commitment to take responsibil
ity and ownership to improve processes. They have the ability to initiate the necessary steps to make sure that custo
mer satisfaction is achieved.
5. Job ______ targets expanding the content of an individual’s job.
a) Enrichment
b) Nourishment
c) Empowerment
d) Card
Answer: a
Explanation: Job Enrichment targets expanding the content of an individual’s job. The individual is motivated by ass
igning him/her with additional responsibilities. It is a technique to ensure the individual is having satisfaction in his/
her work.
6. Job ______ targets expanding the context of an individual’s job.
a) Enrichment
b) Nourishment
c) Empowerment
d) Card
Answer: c
Explanation: Job Empowerment targets expanding the context of an individual’s job. It is related to the interactions
and inter-dependencies with other functions of the organization.
7. Which of the following is not a condition required to create the empowered environment?
a) Everyone must understand the need for change

b) Some people must understand the need for change
c) The system needs to change to the new paradigm
d) The organization must provide information, education and skill to its employees
Answer: b
Explanation: The conditions required to create the empowered environment are that everyone must understand the n
eed for change, the system needs to change to the new paradigm, and the organization must provide information, edu
cation and skill to its employees. An empowered environment allows the organization to reach greater heights.
8. Which of the following is not a characteristic of empowered employees?
a) They are responsible for their own task

b) They are given a free hand in their work
c) They balance their own goals with those of the organization
d) They are not well trained, equipped, and creative and customer oriented
Answer: d
Explanation: An empowered employee is an added asset to an organization’s growth and progress. They are respons
ible for their own task, they are given a free hand in their work, they balance their own goals with those of the organi
zation and they are well trained, equipped, and creative and customer oriented.
9. Which of the following is not a characteristic of empowered employees?
a) They are critical, have self-esteem, and are motivated

b) They are challenged and encouraged
c) They monitor and improve their work continuously
d) They do not find new goals and change challenges
Answer: d
Explanation: An empowered employee is an added asset to an organization’s growth and progress. They are critical,
have self-esteem, and are motivated, they are challenged and encouraged, they monitor and improve their work conti
nuously and they find new goals and change challenges.
10. Which of the following is not a way to empower employees in an organization?
a) Telling them what their responsibilities are

b) Giving them authority equal to the responsibility assigned to them
c) Setting standards of excellence
d) Closing all training opportunities
Answer: d
Explanation: The workforce in an organization can be empowered by telling them what their responsibilities are givi
ng them authority equal to the responsibility assigned to them, setting standards of excellence and by providing them
training that will enable them to maintain standards. It is essential nowadays to have an empowered organization.
11. Which of the following is not a way to empower employees in an organization?
a) Giving them knowledge and information

b) Providing them with feedback on their performance
c) Trusting them and creating trustworthiness in the organization
d) Hurting their dignity and respect
Answer: d
Explanation: The workforce in an organization can be empowered by giving them knowledge and information, provi
ding them with feedback on their performance, trusting them and creating trustworthiness in the organization and tre
ating them with dignity and respect. It is essential nowadays to have an empowered organization.
12. To have an empowered organization, we should allow the workforce to fail but guide them and counsel them wh
en needed.
a) True
b) False
Answer: a
Explanation: In order to have an empowered organization, we should allow the workforce to fail but guide them and
counsel them when needed. Failing is not opposite to success, it is a part of the process of being successful.
1. A group of people working with common objectives or goals is known as a _________
a) Team
b) Teamwork
c) Group
d) Club
Answer: a
Explanation: A group of people working with common objectives or goals is known as a team. A team needs to incu
lcate teamwork. An empowered team showing teamwork is the characteristic of a successful organization.
2. The cumulative action of a team in which an individual member keeps aside his/her interests and opinions to fulfil
l the objectives or goal of the group is known as _________
a) Team
b) Teamwork
c) Group
d) Club
Answer: b
Explanation: The cumulative action of a team in which an individual member keeps aside his/her interests and opini
ons to fulfill the objectives or goal of the group is known as teamwork. An empowered team showing teamwork is t
he characteristic of a successful organization.
3. Which of the following is not a benefit of teamwork?
a) Improved solutions to quality problems

b) Improved ownership of solutions
c) Improved communications
d) Decline in integration
Answer: d
Explanation: Improved solutions to quality problems, improved ownership of solutions, improved communications a
nd improved integration are benefits of teamwork. A team with teamwork also faces fewer problems in the future.
4. Which of the following is not a classification of a team?
a) Process improvement team

b) Cross-functional team
c) Natural work team
d) Group-directed/group-managed work team
Answer: d
Explanation: Process improvement team, cross-functional team, natural work team, and self-directed / self-managed
work team are four major classifications of a team. Every organization needs a team to attain success and teamwork
must be paramount in it.
5. The team which focuses its attention on improvements of a process that is already operating to a satisfactory level
is called the ______________
a) Process improvement team

b) Cross-functional team
c) Natural work team
d) Group-directed/group-managed work team
Answer: a
Explanation: The team which focuses its attention on improvements of a process that is already operating to a satisfa
ctory level is called the Process improvement team. The other types of teams are Cross-functional teams, Natural wo
rk teams, and Self-directed / self-managed work teams.
6. The life cycle of a process improvement team is ________ and after the objective is reached the team is ________
a) Temporary, Inaugurated
b) Permanent, Disbanded
c) Temporary, Disbanded
d) Permanent, Inaugurated
Answer: c
Explanation: The life cycle of a process improvement team is temporary and after the objective is reached the team i
s disbanded. The internal or external supplier, as well as the internal or external customer, is also included in the tea
m depending upon the location of the sub-process.
7. Cross-functional teams are formed to solve complex problems.
a) True
b) False
Answer: a
Explanation: Cross-functional teams are formed to solve complex problems. Six to ten members are selected from v
arious functional areas of management to constitute cross-functional teams.
8. Cross-functional teams are _______
a) Temporary
b) Permanent
c) Neither Temporary nor Permanent
d) Either Temporary or Permanent
Answer: a
Explanation: Cross-functional teams are temporary. They are formed by certain organizations to solve complex prob
lems. Six to ten members are selected from various functional areas of management to constitute cross-functional tea
ms.
9. Cross-functional teams discuss complex problems and break them down into parts and refer these to departmental
teams and work teams of respective functions for further solution.
a) True
b) False
Answer: a
Explanation: Cross-functional teams discuss complex problems and break them down into parts and refer these to de
partmental teams and work teams of respective functions for further solution. Feedback is gathered after that and the
n the problem is solved.
1. The person from the quality council who provides support to the organization is known as ________
a) Sponsor
b) Customer
c) Founder
d) Manager
Answer: a
Explanation: The person from the quality council who provides support to the organization is known as Sponsor. A s
ponsor is needed for effective liaison with the quality council.
2. A ________ is a document that defines the team’s mission, boundaries, the background of the problem, the team’s
authority and duties, and resources.
a) Team
b) Team Charter
c) Team Work
d) Work
Answer: b
Explanation: A Team Charter is a document that defines the team’s mission, boundaries, the background of the probl
em, the team’s authority and duties, and resources. It also mentions about the members and their assigned roles – lea
der, recorder, timekeeper, and facilitator.
3. Which of the following is not a reason to train team members of an organization to make a successful team?
a) To train them in problem-solving techniques

b) To train them in team dynamics
c) To train them in communication skills
d) To train them in threatening customers
Answer: d
Explanation: Training is essential in an organization so that every team member is aware of his/her responsibilities t
owards the progress of the organization. We need to train them in problem-solving techniques, team dynamics, and c
ommunication skills.
4. In an organization, the periodic status report of the team should be given to the quality council.
a) True
b) False
Answer: a
Explanation: In an organization, the periodic status report of the team should be given to the quality council. A prop
er review system must be established so that team weakness can be understood and improvements are made to avoid
them in the future.
5. In an organization, open communication should be encouraged in a successful team.
a) True
b) False
Answer: a
Explanation: In an organization, open communication should be encouraged in a successful team. Everyone must be
free to let their progressive idea reach top management. If the idea can improve the organization’s performance, it m
ust be implemented after proper review.
6. Which of the following is not a characteristic of a successful team in an organization?
a) Appropriate Leadership
b) Balanced Participation
c) Cohesiveness
d) Mutual enmity
Answer: d
Explanation: Appropriate Leadership, Balanced Participation, and Cohesiveness are characteristics of a successful te
am in an organization. Mutual enmity should not exist and everybody should participate to create a friendly working
atmosphere. Open communication must be encouraged.
7. Which of the following is not a roadblock to team progress in an organization?
a) Insufficient training
b) Lack of planning
c) Incompatible rewards and compensation
d) Sufficient training
Answer: d
Explanation: Insufficient training, Lack of planning, and incompatible rewards and compensation are some of the ro
adblocks to team progress in an organization. Sufficient training will let the team do well and as a result of a success
ful team, the organization will do well too.
8. Which of the following is not a roadblock to team progress in an organization?
a) Lack of management support

b) Project scope too large
c) Project objectives are significant
d) No time to do improvement work
Answer: c
Explanation: Lack of management support, Project scope too large, and No time to do improvement work are some
of the roadblocks to team progress in an organization. If the project objectives are not significant then it becomes a r
oadblock too.
9. Which of the following is not part of the forming stage of team development in an organization?
a) Team’s purpose
b) Members’ roles
c) Acceptance of roles
d) Hostilities and Personal needs
Answer: d
Explanation: Team’s purpose, Members’ roles and Acceptance of roles are learned in the forming stage of team dev
elopment. Hostilities and Personal needs emerge in the storming stage of team development.
10. During the norming stage of team development in an organization, ______ and _____ relationships get establish
ed among team members.
a) Formal, informal
b) Informal, abnormal
c) Formal, abnormal
d) Informal, hate
Answer: a
Explanation: During the norming stage of team development, formal and informal relationships get established amo
ng team members. Openness and cooperation emerge within the team.
11. Which of the following is not a stage of team development in an organization?
a) Performing Stage
b) Maintenance Stage
c) Evaluating Stage
d) Deforming Stage
Answer: d
Explanation: Performing Stage, Maintenance Stage, and Evaluating Stage are different stages of team development i
n an organization. The other stages of team development are the Forming Stage, Storming Stage, and Norming Stage
.
1. The acknowledgement of an employee’s outstanding performance is known as _______
a) Recognition
b) Punishment
c) Reprimand
d) Rebuke
Answer: a
Explanation: The acknowledgement of an employee’s outstanding performance is known as Recognition. Recogniti
on helps in providing boost to the hard work put up an employee at work.
2. Which of the following option is incorrect with reference to recognition of an employee at work?
a) It is a form of positive motivation

b) The workforce feels accepted
c) The workforce feels they are in winning role
d) It will discourage the workforce
Answer: d
Explanation: Recognition is an acknowledgement of an employee’s outstanding performance. It is a form of positive
motivation. The workforce feels accepted and in a winning role.
3. Recognition is a way to sustain employee’s interest.
a) True
b) False
Answer: a
Explanation: Recognition is a way to sustain employee’s interest. The workforce put a lot of effort in the organizatio
n’s progress. By recognizing them, it helps in sustaining their interest in the progress of the organization.
4. Recognition is a way of making the workforce work for __________ of the organization.
c) Continuous downfall
d) Discontinuous downfall
Answer: a
Explanation: Recognition is a way of making the workforce work for Continuous improvement of the organization.
Continuous improvement is the prime motivation for succeeding in the competitive world.
5. Recognition in an organization can be __________
a) Financial or psychological
b) Financial only
c) Psychological only
d) Financial or psychological or both
Answer: d
Explanation: Recognition in an organization can be financial or psychological or both. It is important to recognize th
e workforce to motivate them to work for the continuous improvement of the organization.
6. Rewards provided in an organization are ______ in nature.

a) Tangible
b) Intangible
c) Corrupt
d) Corrupt and Intangible
Answer: a
Explanation: Rewards provided in an organization are tangible in nature. Some of the examples of rewards provided
in an organization are increased salaries, commissions, cash bonuses, and gain sharing.
7. Recognition is also a way in which a company shows its appreciation for better performance.
a) True
b) False
Answer: a
Explanation: Recognition is also a way in which a company shows its appreciation for better performance. It helps i
n establishing mutual trust with the workforce. An empowered and motivated organization will always be successful
.
8. Which of the following are the types of reward system in an organization?
a) Interior and exterior

b) Intrinsic and exterior
c) Interior and extrinsic
d) Intrinsic and extrinsic
Answer: d
Explanation: Intrinsic and extrinsic are the two types of reward system in an organization. Intrinsic rewards are relat
ed to feelings of accomplishment or self-worth. Extrinsic rewards are related to pay or compensation issues.
9. Which of the following is not a type of extrinsic reward?
a) Profit sharing
b) Gain sharing
c) Employment security
d) Quality based promotions
Answer: d
Explanation: Profit sharing, Gain sharing, and Employment security are the types of extrinsic rewards provided in an
organization. Quality based promotions belong to the category of intrinsic rewards.
10. When the performance of an organization is driven by promoting awareness, alignment, teamwork, communicati
on and involvement, it is known as ________
a) Gain sharing
b) Profit sharing
c) Loss sharing
d) Profit and Loss sharing
Answer: a
Explanation: When the performance of an organization is driven by promoting awareness, alignment, teamwork, co
mmunication and involvement, it is known as Gain sharing. The plan commonly applies to single facility or site.
11. When an organization shares its financial success and encourages employee identity with organization’s success,
it is known as __________
a) Gain sharing
b) Profit sharing
c) Loss sharing
d) Profit and Loss sharing
Answer: b
Explanation: When an organization shares its financial success and encourages employee identity with organization’
s success, it is known as Profit sharing. The plan typically applies organization-wide.
12. Which of the following is an incorrect way of providing recognition in an organization?
a) Create a ‘best ideas of the year’ booklet

b) Feature the quality team of the month
c) Develop a ‘behind the scenes’ award
d) Feature the worst performer of the month
Answer: d
Explanation: To create a ‘best ideas of the year’ booklet, to feature the quality team of the month and to develop a ‘b
ehind the scenes’ award are the best ways of providing recognition in an organization. If an employee is not perform
ing well, it is the responsibility to help him align with the organization’s goals.
1. The systematic process of assessing an employee’s job performance is known as _________
a) Performance Criteria
b) Performance Appraisal
c) Bonus
d) Discount
Answer: b
Explanation: The systematic process of assessing an employee’s job performance is known as Performance Appraisa
l. The criteria of evaluation is the projects on which the employee worked and the contribution towards the organizat
ion.
2. Performance Appraisal is also known as _________ or __________
a) Performance review, Annual review

b) Performance review, Loss review
c) Loss review, Annual review
d) Discount review, Loss review
Answer: a
Explanation: Performance Appraisal is also known as Performance review or Annual review. It is the process of eval
uation of an employee’s performance and his/her contribution towards the organization.
3. Which of the following is not an advantage of the performance appraisal system?
a) Managers can assign the right job to the right employee based on his/her skills
b) Employees can assess their performance
c) Employees can compare their performance with fellow colleagues
d) Employees feel demotivated after assessing their performance
Answer: d
Explanation: There are many advantages of the performance appraisal system. Managers can assign the right job to t
he right employee based on his/her skills. Employees can assess their performance and employees can compare their
performance with fellow colleagues.
4. Which of the following is not a performance appraisal factor?
a) Attendance
b) Attitude
c) Quality of work
d) Number of social media handles
Answer: d
Explanation: Attendance, attitude, and quality of work are some of the performance appraisal factors. Some of the ot
her performance appraisal factors are efficiency and amount of work.
5. Which of the following is not a physical or objective performance appraisal factor?
a) Attendance
b) Amount of work
c) Efficiency
d) Friendliness
Answer: d
Explanation: Attendance, amount of work, and efficiency are some of the physical or objective performance apprais
al factors. It can be easily maintained by the Human Resource Development manager.
6. Which of the following is not a subjective performance appraisal factor?
a) Attitude
b) Behavior
c) Amount of work
d) Friendliness
Answer: c
Explanation: Attitude, behavior, and friendliness are some of the subjective performance appraisal factors. It is diffic
ult to determine. But for proper evaluation of an employee’s performance, both subjective and physical factors are es
sential.
7. Measuring actual performance and comparing actual performance with standards is one of the techniques of perfo
rmance appraisal in an organization.
a) True
b) False
Answer: a
Explanation: Measuring actual performance and comparing actual performance with standards is one of the techniqu
es of performance appraisal. Performance standards are pre-determined and communicated to the employees.
8. Performance appraisal in an organization is a basis for promotion, transfer or demotion.
a) True
b) False
Answer: a
Explanation: Performance appraisal in an organization is a basis for promotion, transfer or demotion. It helps in eval
uating an individual’s capabilities and lets the organization plan a training session if necessary to improve the skills
of the employee.
1. Quality Planning is also known as ________
a) Quality by Design
b) Process Control and Regulatory
c) Lean Six Sigma
d) Rapid Six Sigma
Answer: a
Explanation: Juran’s Quality Trilogy includes Quality Planning, Quality Control, and Quality Improvement. Quality
Planning is also referred to as Quality by Design.
2. The development processes in an organization for product or service is referred to as _________
a) Quality by Design
b) Process Control and Regulatory
c) Lean Six Sigma
d) Rapid Six Sigma
Answer: a
Explanation: The development processes in an organization for product or service is referred to as Quality by Design
. Quality by Design is also known as Design for Six Sigma.
3. Process Control and Regulatory is a part of _______
a) Quality Planning
b) Quality Control
Answer: b
Explanation: Process Control and Regulatory is a part of Quality Control. The aim of Quality Control is to comply w
ith international standards such as ISO 9000. Quality Planning, Quality Control, and Quality Improvement are part o
f Juran’s Quality Trilogy.
4. It is important to know about ________ for quality planning.
a) Customer needs
b) Customer quality
c) Customer satisfaction
d) Manager satisfaction
Answer: a
Explanation: It is important to know about Customer needs for quality planning. If the product or service is not align
ed with customer needs, then the product will not have any marketability.
5. Which of the following is associated with defining of product or service features and specifications?
a) Quality Planning
b) Quality Control
Answer: a
Explanation: Quality Planning is associated with defining of product or service features and specifications. The inpu
t to product or service specifications and features is taken from customer. The customer needs are translated to the pr
oduct or service features and specifications.
6. Which of the following is associated with developing the processes that are needed to deliver quality products or s
ervices complying with customer needs?
a) Quality Planning
b) Quality Control
Answer: a
Explanation: Quality Planning is associated with developing the processes that are needed to deliver quality products
or services complying with customer needs. Customer needs are translated to the product or service specifications a
nd features. The specifications and features then become the basis for developing the further processes involved.
7. The planning of periodic checks and inspection to ensure product specifications and features are met is associated
with __________
a) Quality Meet
b) Quality Control
c) Quality Planning
d) Quality Improvement
Answer: b
Explanation: The planning of periodic checks and inspection to ensure product specifications and features are met is
associated with Quality Control. It is done after Quality Planning in which processes are developed.
8. The process of checking the actual performance with the standard performance is associated with __________
a) Quality Meet
b) Quality Control
c) Quality Planning
Answer: b
Explanation: The process of checking the actual performance with the standard performance is associated with Quali
ty Control. The metrics are determined as soon as the processes for production are developed.
9. The process of identifying the scope for process improvement is associated with ________
a) Quality Meet
b) Quality Control
c) Quality Planning
Answer: d
Explanation: The process of identifying the scope for process improvement is associated with Quality Improvement.
Even though we try to ensure quality by planning and control but sometimes the scope of improvement develops. S
o, the organization must look at even Quality Improvement.
10. Juran’s Trilogy diagram is a plot between ______ and _______
a) Time, percent defective

b) Distance, percent defective
c) Speed, percent defective
d) Velocity, percent defective
Answer: a
Explanation: Juran’s Trilogy diagram is a plot between time and percent defective. It shows the way in which Juran’
s Trilogy is designed to reduce the cost of quality over time.
11. According to Juran’s Trilogy diagram, errors made in the planning process give rise to _________
a) Chronic waste region

b) Waste region
c) Temporary waste region
d) Improvement region
Answer: a
Explanation: According to Juran’s Trilogy diagram, errors made in the planning process give rise to chronic waste re
gion. Quality control enables defects to be identified and controlled.
12. According to Juran’s Trilogy diagram, errors made in the quality control process give rise to ________
a) Chronic waste region

b) Waste region
c) Temporary waste region
d) Sporadic spike
Answer: d
Explanation: According to Juran’s Trilogy diagram, errors made in the quality control process give rise to sporadic s
pike. The defects during such an event are close to 40%.
13. Sporadic waste can be identified and corrected through quality control.
a) True
b) False
Answer: a
Explanation: Sporadic waste can be identified and corrected through quality control. The defects according to the Jur
an’s trilogy diagram are close to 40% when a sporadic spike occurs.
14. Chronic waste requires improvement process.
a) True
b) False
Answer: a
Explanation: Chronic waste requires improvement process. They occur due to errors made during the planning proce
ss and cannot be rectified by quality control.
15. Juran’s Trilogy is a ______ and ______ continuous process improvement approach.
a) Open, never-ending
b) Open, ending
c) Cyclic, never-ending
d) Cyclic, ending
Answer: c
Explanation: Juran’s Trilogy is a cyclic and never-ending continuous process improvement approach. This is becaus
e once the performance stabilizes at the new zone of quality control; the quality plan has to be updated.
1. Who gave the classification of five types of quality problems?
a) Deming
b) Gerald F. Smith
c) Crosby
d) Juran
Answer: b
Explanation: According to Gerald F. Smith, there are five types of quality problems. They are compliance problems,
unstructured problems, efficiency problems, process-design problems, and product-design problems.
2. When a structured system having standardized inputs, processes, and outputs is performing unacceptably from the
customer’s point of view, then we have _________
a) Compliance problems
b) Unstructured problems
c) Efficiency problems
d) Product-design problems
Answer: a
Explanation: When a structured system having standardized inputs, processes, and outputs is performing unacceptab
ly from the customer’s point of view, then we have compliance problems. It is a type of quality problem as describe
d by Gerald F. Smith.
3. Compliance problems can be identified by comparing with standards or by collecting feedback from internal and/
or external customers.
a) True
b) False
Answer: a
Explanation: Compliance problems can be identified by comparing with standards or by collecting feedback from int
ernal and/or external customers. It is a type of quality problem as described by Gerald F. Smith.
4. How are unstructured problems different from compliance problems?
a) Compliance problems are not specified by standards

b) Compliance problems cannot be collected by feedback process
c) Unstructured problems are not specified by standards
d) There is no difference, both are similar
Answer: c
Explanation: Unstructured problems are similar to compliance problems except for the fact that unstructured proble
ms are not specified by standards. Unstructured problems are a type of quality problems as described by Gerald F. S
mith.
5. Unstructured problems can be identified through negative customer feedback.
a) True
b) False
Answer: a
Explanation: Unstructured problems can be identified through negative customer feedback. Unstructured problems a
re a type of quality problems as described by Gerald F. Smith.
6. When the system is performing unacceptably from the owner’s point of view, then we have _________
a) Compliance problems
b) Unstructured problems
c) Efficiency problems
d) Product-design problems
Answer: c
Explanation: When the system is performing unacceptably from the owner’s point of view, then we have efficiency
problems. Efficiency problem is a type of quality problem as described by Gerald F. Smith.
7. Efficiency problems can be identified by ____________ and ___________
a) Benchmarking, Employee feedback

b) Benchmarking, Founder feedback
c) Benchmarking only
d) Employee feedback only
Answer: a
Explanation: Efficiency problems can be identified by benchmarking and employee feedback. Efficiency problem is
a type of quality problem as described by Gerald F. Smith.
8. Which of the following cannot be considered as a motivation behind identification of process-design problems?
a) Poor performance
b) Introduction of new products
c) Knowledge of benchmarking that we can do better
d) The inherent desire to change the existing process
Answer: d
Explanation: Poor performance, introduction of new products, and knowledge of benchmarking that we can do bette
r are the motivation factors that lead to identification of process-design problems. Process-design problems are a typ
e of quality problems as described by Gerald F. Smith.
9. Process-design problems involve the revision of ___________ and the development of ___________
a) Existing processes, new processes

b) Existing processes, existing processes
c) New processes, existing processes
d) New processes, existing processes
Answer: a
Explanation: Process-design problems involve the revision of existing processes and the development of new proces
ses. Process-design problems are a type of quality problems as described by Gerald F. Smith.
10. Product-design problems involve the improvement of ___________ and the development of ___________
a) Existing products, new products

b) Existing products, existing products
c) New products, existing products
d) New products, existing products
Answer: a
Explanation: Product-design problems involve the improvement of existing products and the development of new pr
oducts. Product-design problems are a type of quality problems as described by Gerald F. Smith.
11. Product-design problems arise due to changing ____________ or competitor coming up with a better product.
a) Customer needs
b) Owner needs
c) Manager needs
d) Supplier needs
Answer: a
Explanation: Product-design problems arise due to changing customer needs or competitor coming up with a better p
roduct. Product-design problems are a type of quality problems as described by Gerald F. Smith.
1. Who gave the Four R’s of Total Improvement?
a) Jack L. Huffman
b) Deming
c) Crosby
d) Taguchi
Answer: a
Explanation: Jack L. Huffman gave the Four R’s of Total Improvement. They are Repair strategy, Refinement strate
gy, Renovation strategy, and Reinvention strategy.
2. The quality improvement strategy that aims at fixing the things so that they can perform their designed functions i
s called _______
a) Repair strategy
b) Refinement strategy
c) Renovation strategy
d) Reinvention strategy
Answer: a
Explanation: The quality improvement strategy that aims at fixing the things so that they can perform their designed
functions is called repair strategy. Jack L. Huffman gave the Four R’s of Total Improvement.
3. In which of the following quality improvement strategy, the customer’s faulty product is either replaced or repaire
d as a temporary or short-term measure?
a) Renovation strategy
c) Repair strategy
Answer: c
Explanation: In repair strategy, the customer’s faulty product is either replaced or repaired as a temporary or short-te
rm measure. Jack L. Huffman gave the Four R’s of Total Improvement.
4. The quality improvement strategy that involves activities that continually improve a process that is not broken is c
alled ________
a) Repair strategy
Answer: b
Explanation: The quality improvement strategy that involves activities that continually improve a process that is not
broken is called refinement strategy. The other quality improvement strategies are repair strategy, renovation strateg
y, and reinvention strategy.
5. In which quality improvement strategy, improvements to processes, products and services are achieved on an incr
emental basis?
a) Rejuvenate strategy
Answer: b
Explanation: In refinement strategy, improvements to processes, products and services are achieved on an increment
al basis. The other quality improvement strategies are repair strategy, renovation strategy, and reinvention strategy.
6. Implementing refinement strategy improves efficiency and effectiveness.
a) True
b) False
Answer: a
Explanation: Implementing refinement strategy improves efficiency and effectiveness. The other quality improveme
nt strategies are repair strategy, renovation strategy, and reinvention strategy.
7. The combinations of ________ are involved in organizational programs such as process improvement teams, sugg
estion systems, and empowerment.
a) Repair and refinement strategies

b) Refinement and renovation strategies
c) Renovation and reinvention strategies
d) Reinvention and repair strategies
Answer: a
Explanation: The combinations of repair and refinement strategies are involved in organizational programs such as p
rocess improvement teams, suggestion systems, and empowerment. Jack L. Huffman gave the Four R’s of Total Imp
rovement.
8. Innovation and technological advancements are two key factors in renovation strategy.
a) True
b) False
Answer: c
Explanation: Innovation and technological advancements are two key factors in renovation strategy. The other quali
ty improvement strategies are repair strategy, refinement strategy, and reinvention strategy.
9. Renovation strategy is ______ compared to repair and refinement strategy.
a) Equally costly
b) Less costly
c) More costly
d) Cost cannot be compared
Answer: d
Explanation: Renovation strategy is more costly compared to repair and refinement strategy. It is usually done with t
eams rather than individuals.
10. Re-engineering strategy is also known as ________
a) Repair strategy
Answer: d
Explanation: Re-engineering strategy is also known as reinvention strategy. The other quality improvement strategie
s are repair strategy, refinement strategy, and renovation strategy.
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1. PDCA cycle is used for _________
d) Seldom improvement
Answer: a
Explanation: PDCA cycle stands for Plan, Do, Check, and Act. It is a continuous improvement technique. It is a cycl
ic process and is repeated again and again for continuous improvement.
2. PDCA cycle can be considered as a project planning tool.

a) True
b) False
Answer: a
Explanation: PDCA cycle stands for Plan, Do, Check, and Act. It is a continuous improvement technique. PDCA cy
cle can be considered as a project planning tool.
3. Which of the following is not a use of the PDCA cycle?
a) Starting a new project aimed at improvement

b) For continuous improvement
c) As a project planning tool
d) For intermittent improvement
Answer: d
Explanation: PDCA cycle can be used when starting a new project aimed at improvement. It can be used as a project
planning tool and as a tool for continuous improvement. It can also be used when we need to do data collection and
analysis.
4. ‘To define the problem’ is a part of which phase of PDCA cycle?
a) Plan
b) Do
c) Check
d) Act
Answer: a
Explanation: ‘To define the problem’ is a part of the ‘Planning’ phase of the PDCA cycle. We need to also analyze t
he causes of the problem and draft an action plan for solving the problem.
5. ‘To determine the quality objectives and the critical factors’ is a part of which phase of PDCA cycle?
a) Plan
b) Do
c) Check
d) Act
Answer: a
Explanation: ‘To determine the quality objectives and the critical factors’ is a part of the ‘Planning’ phase of the PD
CA cycle. We need to also define the performance indicators.
6. ‘To generate possible solutions’ and ‘To select the most feasible solution’ is a part of which phase of PDCA cycle
?
a) Plan
b) Do
c) Check
d) Act
Answer: a
Explanation: ‘To generate possible solutions’ and ‘To select the most feasible solution’ is a part of ‘Planning’ phase
of the PDCA cycle. The other phases of the PDCA cycle are Do, Check, and Act.
7. It is recommended to try the plan made in the planning phase on a limited scale or conduct and experiment to test
the proposed improvement.
a) True
b) False
Answer: a
Explanation: It is recommended to try the plan made in the planning phase on a limited scale or conduct and experi
ment to test the proposed improvement. This is because corrections if necessary can be made in the initial stages. Th
is will also reduce the cost associated with delivering a poor quality product.
8. ‘To train all employees in quality improvement methods and techniques’ is a part of which phase of PDCA cycle?
a) Plan
b) Do
c) Check
d) Act
Answer: b
Explanation: ‘To train all employees in quality improvement methods and techniques’ is a part of ‘Do’ phase of the
PDCA cycle. The other phases of the PDCA cycle are Plan, Check, and Act.
9. ‘To form project team that will focus on quality improvement processes’ is a part of which phase of PDCA cycle?
a) Plan
b) Do
c) Check
d) Act
Answer: b
Explanation: ‘To form project team that will focus on quality improvement process’ is a part of ‘Do’ phase of the P
DCA cycle. The other phases of the PDCA cycle are Plan, Check, and Act.
10. ‘To evaluate the trial project with the already decided performance indicators’ is a part of which phase of PDCA
cycle?
a) Plan
b) Do
c) Check
d) Act
Answer: c
Explanation: ‘To evaluate the trial project with the already decided performance indicators’ is a part of ‘Checking’ p
hase of the PDCA cycle. After evaluation, we need to also check whether the improvement has been successful or n
ot.
11. Which of the following decision is not part of the ‘Action’ phase?
a) Introducing the ‘Plan’

b) Adjusting the ‘Plan’
c) Rejecting the ‘Plan’
d) Defining the problem
Answer: d
Explanation: Introducing the ‘Plan’, Adjusting the ‘Plan’, and Rejecting the ‘Plan’ are all part of the Action phase of
the PDCA cycle. ‘Defining the problem’ is a part of the Planning phase of the PDCA cycle.
12. ‘To document the standard procedures regarding improvement’ is a part of which phase of the PDCA cycle?
a) Plan
b) Do
c) Check
d) Act
Answer: d
Explanation: ‘To document the standard procedures regarding improvement’ is a part of the ‘Action’ phase of the P
DCA cycle. The other phases of the PDCA cycle are Plan, Do, and Check, and Act.
5S - Continuous Process Improvement Questions and Answers - Sanfoundry
a) True
b) False
Answer: a
Explanation: 5S is defined as a housekeeping technique used to establish and maintain a productive and quality envir
onment in an organization. A work place which is well organized will result in safer, more efficient and more produc
tive operation.
1. 5S is defined as a housekeeping technique used to establish and maintain a productive and quality environment in
an organization.
a) India
b) Japan
c) Vietnam
d) Norway
Answer: b
Explanation: 5S was invented in Japan. It stands for five Japanese words starting with SEIRI, SEITON, SEISO, SEI
KETSU, and SHITSUKE.
2. In which country was 5S invented?
a) Sorting out
b) Systematic arrangement
c) Standardizing
d) Self-discipline
Answer: a
Explanation: ‘Sorting out’ is the English equivalent of the Japanese word ‘Seiri’. The other Japanese words parts of
5S are SEITON, SEISO, SEIKETSU, and SHITSUKE.
3. What is the English equivalent of the Japanese word ‘Seiri’?
a) Sorting out
c) Standardizing
d) Self-discipline
Answer: b
Explanation: ‘Systematic arrangement’ is the English equivalent of the Japanese word ‘Seiton’. The other Japanese
words parts of the 5S are SEIRI, SEISO, SEIKETSU, and SHITSUKE.
4. What is the English equivalent of the Japanese word ‘Seiton’?
a) Seiri
b) Seiton
c) Seiso
d) Seiketsu
Answer: a
Explanation: ‘Seiri’ means to ‘sort out’. So, we need to separate out all unnecessary things and eliminate them from
our workplace. The other Japanese words parts of 5S are SEITON, SEISO, SEIKETSU, and SHITSUKE.
5. Which of the following from the 5S technique means ‘to separate out all unnecessary things and eliminate them’?
a) Seiri
b) Seiton
c) Seiso
d) Seiketsu
Answer: b
Explanation: ‘Seiton’ means ‘systematic arrangement’. So, we need to arrange the essential things in order, so that t
hey can be easily accessed. The other Japanese words parts of 5S are SEIRI, SEISO, SEIKETSU, and SHITSUKE.
6. Which of the following from the 5S technique means ‘to arrange the essential things in order, so that they can be e
asily accessed’?
a) Sorting out
c) Scrub, shine, sweep
d) Self-discipline
Answer: c
Explanation: ‘Scrub, shine, sweep’ is the English equivalent of the Japanese word ‘Seiso’. The other Japanese words
parts of 5S are SEIRI, SEITON, SEIKETSU, and SHITSUKE.
7. What is the English equivalent of the Japanese word ‘Seiso’?
a) Sorting out
c) Scrub, shine, sweep
d) Standardizing
Answer: d
Explanation: ‘Standardizing’ is the English equivalent of the Japanese word ‘Seiketsu’. The other Japanese words pa
rts of 5S are SEIRI, SEITON, SEISO, and SHITSUKE.
8. What is the English equivalent of the Japanese word ‘Seiketsu’?
a) Sorting out
c) Standardizing
d) Self-discipline
Answer: d
Explanation: ‘Self-discipline’ is the English equivalent of the Japanese word ‘Shitsuke’. The other Japanese words p
arts of 5S are SEIRI, SEITON, SEISO, and SEIKETSU.
9. What is the English equivalent of the Japanese word ‘Shitsuke’?
a) Seiri
b) Seiton
c) Seiso
d) Seiketsu
Answer: c
Explanation: ‘Seiso’ means to ‘scrub, shine, and sweep’. So, we need to clean the workplace, everything, every day,
without fail. The other Japanese words parts of 5S are SEIRI, SEITON, SEIKETSU, and SHITSUKE.
10. Which of the following from the 5S technique means ‘to clean the workplace, everything, everyday, without fail’
?
a) True
b) False
Answer: a
Explanation: To maintain cleanliness we need to standardize. ‘Seiketsu’ means to ‘standardize’. The other Japanese
words parts of 5S are SEIRI, SEITON, SEISO, and SHITSUKE.
11. To maintain cleanliness we need to standardize.
a) To improve work efficiency

b) To standardize work practices
c) To improve work discipline
d) To create a dirty workplace
Answer: d
Explanation: To improve work efficiency, to standardize work practices, and to improve work discipline are the adv
antages of implementing 5S technique. To create a neat and clean workplace is also an advantage of implementing 5
S technique.
1. Kaizen refers to _________
b) Intermittent improvement
c) Discontinuous improvement
d) Stop improvement
Answer: a
Explanation: Kaizen is a Japanese word which refers to continuous improvement. In other words, it means improve
ment over improvement. In the process of Kaizen, improvements are accomplished gradually in small increments.
2. Which of the following is not the aim of Kaizen process?
a) To make processes efficient

b) To make processes effective
c) To make processes controllable
d) To make processes uncontrollable
Answer: d
Explanation: To make processes efficient, to make processes effective, and to make processes controllable are the ai
m of Kaizen process. Kaizen is a Japanese word which means continuous improvement.
3. In the process of Kaizen, improvements are accomplished gradually in small increments.
a) True
b) False
Answer: a
Explanation: In the process of Kaizen, improvements are accomplished gradually in small increments. To make proc
esses efficient, to make processes effective, and to make processes controllable are the aim of Kaizen process.
4. Kairyo refers to improvements through ________, and does not allow ___________
a) Innovation, constant improvement

b) Constant improvement, innovation
c) Discontinuous improvement, constant improvement
d) Innovation, discontinuous improvement
Answer: a
Explanation: Kairyo is a Western philosophy. Kairyo refers to improvements through innovation, and does not allow
constant improvement. Improvements happen in one or two great jumps.
5. Kaizen works well in _________ and Kairyo works well in _____________
a) Slow-growth economy, fast-growth economy

b) Fast-growth economy, slow-growth economy
c) Fast-growth economy, fast-growth economy
d) Slow-growth economy, slow-growth economy
Answer: a
Explanation: Kaizen works well in slow-growth economy and Kairyo works well in fast-growth economy. Kaizen is
a Japanese philosophy. Kairyo is a Western philosophy.
6. Kaizen requires little investment but great effort to maintain it.
a) True
b) False
Answer: a
Explanation: Kaizen requires little investment but great effort to maintain it. It is a continuous improvement process
in small incremental steps. Kairyo requires large investment, but little effort to maintain it.
7. Which of the following is not an aspect of Kaizen philosophy?
a) Customer orientation
b) Adaptability to changing environment
c) Good labor management relations
d) Increasing waste
Answer: d
Explanation: Customer orientation, adaptability to changing environment, and good labor management relations are
some of the aspects of Kaizen philosophy. Kaizen philosophy also focuses on reducing waste.
8. Which of the following is not an aspect of Kaizen philosophy?
a) Process driven
b) Quality awareness, quality control
c) Standardization
d) Ineffective leadership
Answer: d
Explanation: Process driven, quality awareness, quality control, standardization, and effective leadership are some of
the aspects of Kaizen philosophy. Kaizen philosophy also focuses on Total employee involvement.
9. According to Kaizen philosophy, which of the following does not belong to the team dynamics?
a) Problem solving
b) Communication skills
c) Conflict resolution
d) Creating conflicts
Answer: d
Explanation: According to Kaizen philosophy, problem solving, communication skills, and conflict resolution belon
g to the team dynamics. Kaizen focuses on continuous improvement in small incremental steps.
10. Which of the following does Kaizen improvement process not focus on?
a) 5S
b) Poka-Yoke
c) Just-in-time principles
d) Improvement by innovation
Answer: d
Explanation: 5S, Poka-Yoke, and Just-in-time principles are the techniques on which Kaizen improvement focus on.
Kaizen is a Japanese philosophy. It focuses on continuous improvement in small incremental steps.
1. Poka-yoke is also known as _______
a) Mistake-proofing
b) Mistake
c) Proofreading
d) Mistake and proofreading
Answer: a
Explanation: Poka-yoke is also known as mistake-proofing. It is a Japanese term. It is considered as a quality improv
ement mechanism.
2. What do Yokeru and Poka mean respectively?
a) Avoid, inadvertent errors

b) Inadvertent errors, avoid
c) Inadvertent mistakes, avoid
d) Inadvertent errors, inadvertent mistakes
Answer: a
Explanation: Yokeru means ‘avoid’ and Poka means ‘inadvertent errors’. It is a part of the Japanese term Poka-yoke.
Poka-yoke is considered as a quality improvement mechanism.
3. Poka-yoke______ an error as soon as it is being made and _______ it from reaching the next operation.
a) Promotes, promotes
b) Detects, prevents
c) Prevents, detects
d) Promotes, prevents
Answer: b
Explanation: Poka-yoke detects an error as soon as it is being made and prevents it from reaching the next operation.
It is a Japanese term. It is considered as a quality improvement mechanism.
4. Who formalized the concept of Poka-yoke?
a) Dr. Shigeo Shingo

b) Deming
c) Crosby
d) Juran
Answer: a
Explanation: Dr. Shigeo Shingo formalized the concept of Poka-yoke. It is a Japanese term. It is considered as a qual
ity improvement mechanism.
5. Which of the following is not an advantage of mistake proofing?
a) Prevents error occurrence

b) Prevents defect occurrence
c) Little or no formal training
d) Cost ineffective
Answer: d
Explanation: The advantages of mistake proofing are that it prevents error occurrence, prevents defect occurrence, a
nd requires little or no formal training. It is cost effective in nature. It is also easy to implement.
6. An operator in a manufacturing company is faced with the challenge of using a poka-yoke device. It is difficult to
operate and requires continuous attention. What can you infer from the following scenario?
a) The operator must read the operation manual

b) Poka-yoke device should be easy to install and usable to all
c) The operator is lacking operational skills
d) The operator must be dismissed from service
Answer: b
Explanation: Poka-yoke device should be easy to install and usable to all. It should not require continuous attention
and must be low cost also.
7. Auto shut off on iron is an example of a poka-yoke mechanism.
a) True
b) False
Answer: a
Explanation: Auto shut off on iron is an example of a Poka-yoke mechanism. It is a great concept because we don’t
need any operator to perform the action. It is also a safety enhancing feature as an iron in switched on position is inj
urious.
8. A car won’t start unless transmission is in neutral/park position. This is an example of poka-yoke mechanism.
a) True
b) False
Answer: a
Explanation: A car won’t start unless transmission is in neutral/park position. This is an example of poka-yoke mech
anism. It is also a safety enhancing feature as it will prevent the occurrence of accidents.
9. Who can develop a poka-yoke device?
a) Founder
b) Co-Founder
c) Manager
d) Anyone in the organization
Answer: d
Explanation: Anyone in the organization can develop a poka-yoke device. All it needs is just a little empowerment o
f employees. This is the beauty of this method.
10. The use of electrical sensors to activate warning signals is an example of ______
a) Poka-yoke mechanism
b) Use of electronics
c) Use of electrical devices
d) Inform the police
Answer: a
Explanation: Poka-yoke is also known as mistake-proofing. The use of electrical sensors to activate warning signals
is an example of poka-yoke mechanism.
11. Poka-yoke is a strategy for implementing the policy of _______

a) Zero defects
b) Four defects
c) Seven defects
d) Eight defects
Answer: a
Explanation: Poka-yoke is a strategy for implementing the policy of zero defects. Dr. Shigeo Shingo formalized the
concept of Poka-yoke. It is considered as a quality improvement mechanism.
12. ________ and _______ are two major types of inspection for detecting errors.
a) Sampling inspection, 100% inspection

b) Sampling inspection, 99% inspection
c) Sampling inspection, 98% inspection
d) Sampling inspection, 97% inspection
Answer: a
Explanation: Sampling inspection and 100% inspection are two major types of inspection for detecting errors. In sa
mpling inspection, a few products are examined for defects. In 100% inspection, even a single defect is not tolerated
.
13. Just-in-time is a strategy for implementing the policy of ________
a) Zero defects
b) Four defects
c) Seven defects
d) Eight defects
Answer: a
Explanation: Just-in-time is a strategy for implementing the policy of zero effects. It is the principle of making what
is needed, when it is needed in the amount needed.
14. The use of sensors on roller coaster tracks is an example of ______
a) Poka-yoke mechanism
b) Use of electronics
c) Use of electrical devices
d) Inform the police
Answer: a
Explanation: Poka-yoke is also known as mistake-proofing. The use of sensors on roller coaster tracks is an example
of poka-yoke mechanism.
15. Which of the following is not an example of use of poka-yoke in business processes?
a) Use of sensors in a car

b) Checklists
c) Color coding on products
d) Color coding in the work area
Answer: a
Explanation: Checklists, color coding on products, and color coding in the work area are examples of use of poka-yo
ke in business. Use of sensors in a car is also an example of poka-yoke, but it is not used in business processes.
1. Suppliers are considered as partners in the organization.

a) True
b) False
Answer: a
Explanation: In modern days, high quality and zero-defect products are greatly desired. Hence, suppliers are treated
as partners in the organization.
2. Continuous quality improvement cannot be translated into reality without treating suppliers as partners.
a) True
b) False
Answer: a
Explanation: Continuous quality improvement cannot be translated into reality without treating suppliers as partners.
A commitment to continuous quality improvement needs the support of the suppliers.
3. The quality of the product is substantially affected by _______
a) Supplier quality
b) Supplier fund
c) Supplier money
d) Supplier name
Answer: a
Explanation: In modern days, supplier quality is very important as defects are desired to be resolved in the initial sta
ges of production. So, a good supplier will supply good raw materials or good intermediate materials.
4. Which of the following should not be included in a non-adversarial contract between customer and supplier?
a) Quality
b) Quantity
c) Delivery method
d) Threat to quit
Answer: d
Explanation: Quality, quantity, and delivery method should be included in a non-adversarial contract between custo
mer and supplier. The threat should never be a part of the relationship between customer and supplier.
5. Who gave the ten principles for customer/supplier relations?
a) Ishikawa
b) Deming
c) Crosby
d) Taguchi
Answer: a
Explanation: Ishikawa gave the ten principles for customer/supplier relations. In modern days, high quality and zero-
defect products are greatly desired. Hence, suppliers are treated as partners in the organization.
6. Both _____ and _____ are fully responsible for the control of quality.
a) Organization, supplier
b) Organization, ambassador
c) Supplier, ambassador
d) Ambassador, organization founder
Answer: a
Explanation: Both organization and supplier are fully responsible for the control of quality. A non-adversarial contra
ct between supplier and organization is essential for delivering high quality and zero-defect products.
7. Which of the following business activities must be performed by customers and suppliers so that a friendly and sa
tisfactory relationship is maintained between them?
a) Procurement only
b) Production and inventory planning only
c) Clerical work and systems only
d) Procurement, production and inventory planning, clerical works and systems
Answer: d
Explanation: Procurement, production and inventory planning, clerical works and systems are the business activities
that must be performed by customers and suppliers so that a friendly and satisfactory relationship is maintained betw
een them. In the modern world, the relationship between suppliers and customers holds vital importance.
8. Which of the following concept can be used for continually exchanging information between suppliers and custo
mers in order to improve the product or service quality?
a) Multifunctional teams
b) Product ambassador
c) Service ambassador
d) There is no such concept
Answer: a
Explanation: By introducing multifunctional teams, information can be continually exchanged between suppliers an
d customers in order to improve the product or service quality. In the modern world, the relationship between suppli
ers and customers holds vital importance.
1. _______ is continuing relationship between a buying firm and supplying firm.
a) Supplier partnering
b) Supplier characteristics
c) Supplier
d) Supplier traits
Answer: a
Explanation: Supplier partnering is continuing relationship between a buying firm and supplying firm. Suppliers pla
y a crucial role in setting up quality development. A buyer and a supplier need to have a good relationship for sustai
ned development.
2. Which of the following is not a part of supplier buyer relationship?
a) Commitment over an extended period

b) Exchange of information
c) Acknowledgement of the risk and rewards of the relationship
d) How to earn more profit by deception
Answer: d
Explanation: Commitment over an extended period, exchange of information, and acknowledgement of the risk and
rewards of the relationship are the key traits of supplier buyer relationship. Supplier buyer relationship is crucial for
organizational progress.
3. The relationship between supplier and buyer should have trust and dedication to common goals and objectives.
a) True
b) False
Answer: a
Explanation: The relationship between supplier and buyer should have trust and dedication to common goals and obj
ectives. Both of them should have an understanding of each party’s expectations and values.
4. The Japanese partnering concept is _______
a) Keiretsu
b) Seiri
c) Seiton
d) Seiketsu
Answer: a
Explanation: The Japanese partnering concept is Keiretsu. The important key here is to develop long term relationshi
ps with a few key suppliers. Seiri, Seiton, and Seiketsu belong to the 5S methodology.
5. Continuous improvement of products or services is a consequence of good supplier buyer relationship.
a) True
b) False
Answer: a
Explanation: Continuous improvement of products or services is a consequence of good supplier buyer relationship.
Continuous improvement is needed in the modern competitive environment for any organization to excel.
6. Which of the following is not a benefit of supplier buyer relationship?
a) Improved quality
b) Reduced cost
c) Increased productivity
d) Decreased efficiency
Answer: d
Explanation: Improved quality, reduced cost, and increased productivity are benefits of supplier buyer relationship. I
ncreased efficiency is also an added benefit of supplier buyer relationship.
7. Which of the following is not a benefit of supplier buyer relationship?
a) Increased efficiency
b) Increased market share
c) Decreased opportunity for innovation
d) Improved quality
Answer: c
Explanation: Increased efficiency, increased market share, and improved quality are benefits of supplier buyer relati
onship. Increased opportunity for innovation is also an added benefit of supplier buyer relationship.
8. Why is long term commitment important in supplier buyer relationship?
a) Long term commitment will enable employees to relax initially

b) Long term commitment will enable managers to relax initially
c) Long term commitment is needed to plan for continuous improvement
d) Long term commitment is needed to plan for intermittent improvement
Answer: c
Explanation: Long term commitment between supplier and buyer is needed to plan for continuous improvement. Du
ring this time, trust can also be incorporated in the relationship between the buyer and supplier.
9. Which of the following is not a consequence of mutual trust between suppliers and buyers?
a) A ‘win-win’ situation for both the partners is created

b) Resources are effectively combined
c) Knowledge is effectively combined
d) Knowledge is not effectively combined
Answer: d
Explanation: The direct consequence of mutual trust between suppliers and buyers is that a ‘win-win’ situation for b
oth the partners is created, resources are effectively combined, and knowledge is effectively combined. All these lea
d to an effective and strong relationship between buyer and supplier.
10. Shared vision is also known as ____________
a) Mutual strategic planning

b) Strategic planning
c) Mutual planning
d) Planning
Answer: a
Explanation: Shared vision is also known as mutual strategic planning. A mutual strategic planning enables supplier
s and buyers to have a mutual objective to satisfy the needs of the end user.
11. Which of the following is not a key element in supplier customer partnering?
a) Long-term commitment
b) Mutual trust
c) Shared vision
d) Isolated vision
Answer: d
Explanation: Long-term commitment, mutual trust, and shared vision are the key elements in supplier customer part
nering. Availability of all these elements will ensure a progressive and effective leadership aims at satisfying the nee
ds of the end user.
1. What do you mean by supplier sourcing?
a) Source of suppliers
b) Details of suppliers
c) Address of suppliers
d) Selecting suppliers
Answer: d
Explanation: Supplier sourcing is the process of selecting suppliers that provide the best goods or services. It is an in
tegral part of the supply chain process.
2. Which of the following is not a type of supplier sourcing?
a) Sole sourcing
b) Multiple sourcing
c) Single sourcing
d) Twin sourcing
Answer: d
Explanation: The three types of supplier sourcing are sole sourcing, multiple sourcing, and single sourcing. Sourcing
is the process of selecting suppliers that provide the best goods or services.
3. _______ is the practice of utilizing only one supplier for the organization.
a) Sole sourcing
c) Single sourcing
d) Twin sourcing
Answer: a
Explanation: Sole sourcing is the practice of utilizing only one supplier for the organization. The organization is forc
ed to use only one supplier.
4. What is the reason for the forced situation of sticking to only one supplier for the organization in sole sourcing?
a) Patents
b) Raw material location
c) Only one organization producing the item
d) Two organizations producing the item
Answer: d
Explanation: Patents, raw material location, and only one organization producing the item are the reasons for the for
ced situation of sticking to only one supplier for the organization in sole sourcing. The other types of supplier sourci
ng are multiple sourcing and single sourcing.
5. ________ is the practice of utilizing two or more suppliers for an item.
a) Sole sourcing
c) Single sourcing
d) Twin sourcing
Answer: b
Explanation: Multiple sourcing is the practice of using two or more suppliers for an item. The other types of sourcin
g are solo sourcing and single sourcing.
6. What is the idea behind multiple sourcing?
a) Better quality
b) Higher costs
c) Better service
d) Lower costs
Answer: b
Explanation: Better quality, better service, and lower costs are the ideas behind multiple sourcing. The other types of
sourcing are solo sourcing and single sourcing.
7. _______ is the practice of utilizing only one supplier for an item when several sources are available.
a) Sole sourcing
c) Single sourcing
d) Twin sourcing
Answer: c
Explanation: Single sourcing is the practice of utilizing only one supplier for an item when several sources are availa
ble. The other types of sourcing are solo sourcing and multiple sourcing.
8. ________ leads to the outcome of long-term partnering relationship.
a) Sole sourcing
c) Single sourcing
d) Twin sourcing
Answer: c
Explanation: Single sourcing is the practice of utilizing only one supplier for an item when several sources are availa
ble. This act imposes trust on the supplier and the supplier in return identifies the importance of it.
1. Two suppliers A and B deliver the same raw materials for production company Z. The price offered by supplier A
is less compared to the price offered by supplier B. Which supplier should the company choose?
a) Supplier A
b) Supplier B
c) Supplier A & Supplier B
d) Depends on other factors like quality
Answer: d
Explanation: Two suppliers A and B cannot be solely compared on the basis of price. If quality of raw material supp
lied by supplier A is poor, then the company may even choose supplier B.
2. Two suppliers A and B deliver the same raw materials for production company Z. The price offered by supplier A
is less compared to the price offered by supplier B. The quality of both the raw materials is the same. Which supplie
r should the company choose considering other factors remaining the same for both of them?
a) Supplier A
b) Supplier B
c) Supplier A & Supplier B
d) None of them
Answer: a
Explanation: When both the suppliers offer raw materials of the same quality, the production company will choose s
upplier A as it is offering less price. This, though, is valid only when other factors are considered the same for both t
he suppliers.
3. Which of the following is not the primary factor on which the supplier is selected by an organization?
a) Cost
b) Quality
c) Delivery reliability
d) Language barrier
Answer: d
Explanation: Cost, quality, and delivery are the important primary factors on which the supplier is selected by an org
anization. Language barrier is not a primary factor but can influence the choice of supplier selection.
4. Additionally, the supplier selection criteria include factors such as management compatibility, goal congruence, a
nd strategic decision of the supplier firm.
a) True
b) False
Answer: a
Explanation: Cost, quality, and delivery are the important primary factors on which the supplier is selected by an org
anization. Additionally, supplier selection criteria include factors such as management compatibility, goal congruenc
e, and strategic decision of the supplier firm.
5. Survey stage, enquiry stage, negotiation and selection stage, and experience stage are the four stages in supplier se
lection and evaluation.
a) True
b) False
Answer: a
Explanation: Survey stage, enquiry stage, negotiation and selection stage, and experience stage are the four stages in
supplier selection and evaluation. Identifying the right supplier is important for an organization’s progress.
6. ________ suggested the ten conditions for selection and evaluation of suppliers.
a) Ishikawa
b) Taguchi
c) Juran
d) Deming
Answer: a
Explanation: Ishikawa suggested the ten conditions for selection and evaluation of suppliers. Proper supplier selectio
n and evaluation is vital for an organization’s progress.
7. The supplier selection and evaluation stage in which the supplier list is drawn up on the basis of raw information f
rom catalogues, advertisements, and brochures is known as ______
a) Survey stage
b) Enquiry stage
c) Negotiation and selection stage
d) Experience stage
Answer: a
Explanation: The supplier selection and evaluation stage in which the supplier list is drawn up on the basis of raw in
formation from catalogues, advertisements, and brochures is known as survey stage. The other stages are enquiry sta
ge, negotiation and selection stage, and experience stage.
8. In which of the following stages of supplier selection and evaluation, vendor’s present customers are enquired abo
ut the performance and promptness in delivery of the vendor?
a) Survey stage
b) Enquiry stage
d) Experience stage
Answer: b
Explanation: During enquiry stage of supplier selection and evaluation, vendor’s present customers are enquired abo
ut the performance and promptness in delivery of the vendor. This is done before finalizing the vendor.
1. In which of the following stage in supplier selection and evaluation, standard enquiry forms are sent to the vendor
s, asking them to present their detailed information?
a) Survey stage
b) Enquiry stage
d) Experience stage
Answer: b
Explanation: During enquiry stage, standard enquiry forms are sent to the vendors, asking them to present their detai
led information. This is done before finalizing the vendor.
2. In ________detailed analysis of the vendor is made after raw information is acquired from the survey stage.
a) Survey stage
b) Enquiry stage
d) Experience stage
Answer: b
Explanation: During enquiry stage, detailed analysis of the vendor is made after raw information is acquired from th
e survey stage. Standard enquiry forms are sent to the vendors. At the same time the vendor’s present customers are
asked about the vendor’s performance and promptness in delivery.
3. Which of the following factors are considered during direct negotiations with the vendors in the negotiation and s
election stage of supplier selection and evaluation?
a) Payment terms only

b) Quality control procedures only
c) Supply procedures only
d) Payment terms, quality control procedures, and supply procedures
Answer: d
Explanation: Payment terms, quality control procedures, and supply procedures are the important factors that are con
sidered during direct negotiations with the vendors in the negotiation and selection stage of supplier selection and ev
aluation. Consequently, a final list of approved vendors is drawn up.
4. In which stage of supplier selection and criteria, performance of the supplier is evaluated based on quality and pro
mptness in delivery?
a) Survey stage
b) Enquiry stage
d) Experience stage
Answer: d
Explanation: During experience stage, performance of the supplier is evaluated based on quality and promptness in d
elivery. The other stages of supplier selection and criteria are survey stage, enquiry stage, and negotiation and selecti
on stage.
5. Frequent rejections upset the production schedule.
a) True
b) False
Answer: a
Explanation: Frequent rejections upset the production schedule. Such vendors should be dropped from the list of ava
ilable vendors because it may incur to heavy losses in the buyer’s company.
6. Late deliveries may cause stoppages in production.
a) True
b) False
Answer: a
Explanation: Late deliveries may cause stoppages in production. Due to this large inventories have to be kept in stoc
k. Both these cases are not desirable and therefore such vendors’ performance must be questioned.
7. Which of the following is not a part of the history card?
a) Date of supply of materials

b) Inspection
c) Procedure adopted
d) No.of fans in vendor’s office
Answer: d
Explanation: Date of supply of materials, inspection, and procedure adopted are some of the important parameters m
entioned in a history card of a supplier. All these parameters help in reviewing the performance of the suppliers.
8. Which of the following is incorrect with respect to Ishikawa’s ten conditions for selection and evaluation of suppli
ers?
a) The supplier should have a stable management system

b) The supplier should not breach the corporate secrets
c) The supplier should not have a track record of customer satisfaction and organization credibility
d) The supplier should have an effective quality system
Answer: c
Explanation: According to Ishikawa’s ten conditions for selection and evaluation of suppliers, the supplier should ha
ve a stable management system, the supplier should not breach the corporate secrets, and the supplier should have an
effective quality system. In addition to this, the supplier should have a track record of customer satisfaction and org
anization credibility.
1. Supplier selection process is followed by supplier certification process.
a) True
b) False
Answer: a
Explanation: Supplier selection process is followed by supplier certification process. Supplier certification process a
ssures that the supplier’s product is produced, packaged, and shipped in a controlled manner.
2. Supplier certification process starts only after the supplier begins shipment of the product to the organization.
a) True
b) False
Answer: a
Explanation: Supplier certification process starts only after the supplier begins shipment of the product to the organi
zation. Supplier certification process assures that the supplier’s product is produced, packaged, and shipped in a cont
rolled manner.
3. Which of the following is not a benefit of supplier certification process?
a) Elimination of receiving inspection

b) Creation of a customer-supplier partnership
c) Reduces number of suppliers
d) Increases number of suppliers
Answer: d
Explanation: Elimination of receiving inspection, creation of a customer-supplier partnership, and reducing the num
ber of suppliers are the benefits of supplier certification process. Supplier certification reduces overhead costs by red
ucing the number of suppliers.
4. According to the supplier certification criteria, the customer and the supplier shall agree upon specifications that a
re __________, ________, and ________
a) Mutually developed, justifiable, not ambiguous

b) Mutually developed, justifiable, ambiguous
c) Personally developed, justifiable, not ambiguous
d) Personally developed, justifiable, ambiguous
Answer: a
Explanation: According to the supplier certification criteria, the customer and the supplier shall agree upon specifica
tions that are mutually developed, justifiable, and not ambiguous. The supplier certification process has been given b
y the supplier technical committee of ASQ.
5. According to the supplier certification criteria, for a significant period the supplier should have ______ product-re
lated lot rejection.
a) No
b) Five
c) Six
d) More
Answer: a
Explanation: According to the supplier certification criteria, for a significant period the supplier should have no prod
uct-related lot rejection. Rejected materials affect the production process hence should be at the minimum level.
6. According to the supplier certification criteria, the supplier _______ timely inspection and test data for documenta
tion.
a) Should provide
b) Should not provide
c) May provide
d) Need not provide
Answer: a
Explanation: According to the supplier certification criteria, the supplier should provide timely inspection and test d
ata for documentation. Supplier certification process assures that the supplier’s product is produced, packaged, and s
hipped in a controlled manner.
7. Which of the following is not a factor involved in supplier rating?
a) Quality
b) Price
c) Performance
d) Performance Incapability
Answer: d
Explanation: Quality, price, and performance are factors involved in supplier rating. In addition to all these factors, p
erformance capability also acts as a factor involved in supplier rating.
8. Supplier rating system is also known as _________
a) Scorecard system
b) Score system
c) Card system
d) Score and Card system
Answer: a
Explanation: Supplier rating system is also known as scorecard system. Supplier rating provides overall rating of the
supplier performance. Supplier rating is usually determined by quality, price, performance, and performance capabil
ity.
9. Supplier rating provides overall rating of _________
a) Supplier performance
b) Supplier contact details
c) Number of products delivered
d) Number of products rejected
Answer: a
Explanation: Supplier rating provides overall rating of the supplier performance. Supplier rating is also known as sc
orecard system. Supplier rating is usually determined by quality, price, performance, and performance capability.
1. Maintaining and improving the growth of the customer-supplier relationship is known as _________
a) Relationship Development
b) Customer Development
c) Supplier Development
d) Customer Satisfaction
Answer: a
Explanation: Maintaining and improving the growth of the customer-supplier relationship is known as relationship d
evelopment. Relationship development is crucial for proper establishment of customer-supplier relationships.
2. Which of the following is not a phase of quality inspection?
a) 100% inspection
b) Sampling inspection
c) 99% inspection
d) Inspection audit
Answer: c
Explanation: 100% inspection, sampling inspection, and inspection audit are the different phases of quality inspectio
n. In addition to this, identity check is the fourth phase of quality inspection.
3. In 100% inspection phase, _______ are inspected.
a) All the items

b) Some of the items
c) Most of the items
d) 99% of the items
Answer: a
Explanation: In 100% inspection phase, all the items that are delivered by the supplier to the customer is inspected. 1
00% inspection is one of the four phases of quality inspection.
4. Successful inspection during 100% inspection phase may make the customer switch to sampling inspection during
the next round of delivery from the supplier.
a) True
b) False
Answer: a
Explanation: Successful inspection during 100% inspection phase may make the customer switch to sampling inspec
tion during the next round of delivery from the supplier. This is because in 100% inspection all the delivered materia
ls are inspected.
5. Success in sampling inspection may make the customer switch to auditing.
a) True
b) False
Answer: a
Explanation: Success in sampling inspection may make the customer switch to auditing. Auditing here refers to audi
ting the supplier’s performance. Sampling inspection and inspection through auditing are the different phases of the
quality inspection.
6. At the audit phase, the customer has complete confidence in the supplier and initiates _______
a) 100% inspection
b) Sampling inspection
c) Inspection audit
d) Identity checks
Answer: d
Explanation: At the audit phase, the customer has complete confidence in the supplier and initiates identity checks.
This reduces the time taken for the conventional inspection process and production runs continuously without any in
terruptions.
7. Proper training in quality, team work, and other management aspects is necessary for _________
a) Customers
b) Suppliers
c) Customers and suppliers
d) It is not necessary
Answer: c
Explanation: Proper training in quality, team work, and other management aspects is necessary for both customers a
nd suppliers. This is because they are interdependent and miscommunications can hinder progress. Hence, proper kn
owledge is vital for both of them.
8. Which of the following is not a form of invitation given to the supplier by the customer?
a) Seminars
b) Workshops
c) Courses
d) Ledger
Answer: d
Explanation: Seminars, workshops, courses and exhibition are different ways in which customers invite the supplier
s. This forms a part of the training process. It also is a way to establish mutual trust between both of them.
9. Which of the following is not a way of developing partnering relationship between customer and supplier?
a) Inspection
b) Training
c) Team Approach
d) Recognition only
Answer: d
Explanation: The partnering relationship between customer and supplier is developed by inspection, training, team a
pproach, and recognition. A firmly established relationship between customer and supplier is essential for the succes
s of any organization.
10. Which of the following is incorrect with respect to strengthening customer-supplier relationship?
a) Reward and recognition concept

b) Team meetings should be held at both partners’ workplace
c) Both of them should be trained in quality, team work, and other management concepts
d) Reward and recognition should be abolished
Answer: d
Explanation: Team meeting should be held at both partners’ workplace. The concept of reward and recognition is als
o vital. Both supplier and customer must be trained in quality, team work and other management concepts.
1. Quality circle is also known as _________
a) Quality Control Circle

b) Quality Rectangle
c) Quality Square
d) Quality Ellipse
Answer: a
Explanation: Quality circle is also known as Quality Control Circle. It is a small voluntary group of employees and t
heir supervisors comprising of around 6 to 10 members.
2. Quality circle is a participative management system.
a) True
b) False
Answer: a
Explanation: Quality circle is a participative management system. In quality circle, workers make suggestions and i
mprovements for the betterment of the company.
3. Which of the following is not an alternative name of quality circle?
a) Human resources circle

b) Productivity circle
c) Excellence circle
d) Loss circle
Answer: d
Explanation: Human resources circle, productivity circle, and excellence circle are the other alternative names of qu
ality circle. Quality circles are also known by the names Small groups and Action circles.
4. Quality circle identifies analyses and solve quality, cost reduction and any other problem in their work area.
a) True
b) False
Answer: a
Explanation: Quality circle identifies analyses and solves quality, cost reduction and any other problem in their work
area. They meet regularly and discuss organizational methods that will help in improving the performance of their
work life.
5. Which of the following is not an attribute of Quality Circle?
a) It is a form of participation management

b) It is a human resource development technique
c) It is a problem solving technique
d) It is not a human resource development technique
Answer: d
Explanation: The following are the attributes of Quality Circle. It is a form of participation management, it is a huma
n resource development technique, and it is a problem solving technique.
6. Quality circle _______ job involvement.
a) Neglects
b) Demotes
c) Promotes
d) Accuses
Answer: c
Explanation: Quality circle promotes job involvement. It is a small voluntary group of employees and their supervis
ors comprising of around 6 to 10 members. The employees are from the same work area or doing similar work.
7. Quality circles _______ problem solving capability.
a) Create
b) Delete
c) Stop
d) Eradicates
Answer: a
Explanation: Quality circles create problem solving capability. A problem is looked at in a holistic manner. This ena
bles the problem to be solved considering all the dynamics
8. Quality circle develops _______ awareness for safety.
a) Greater
b) Lesser
c) No
d) Diminishing
Answer: a
Explanation: Quality circle develops greater awareness for safety. As quality is given utmost priority hence best qual
ity, low cost and highly safe products are made.
1. An objective of quality circle team is to improve employee’s morale by closer identity of employee objectives wit
h the organization’s objectives.
a) True
b) False
Answer: a
Explanation: An objective of quality circle team is to improve employee’s morale by closer identity of employee obj
ectives with the organization’s objectives. This is because upliftment of employee’s morale is important and instills
greater employee participation.
2. An objective of quality circle team is to ______ errors and _______ quality.
a) reduce, enhance
b) increase, enhance
c) reduce, demean
d) increase, demean
Answer: a
Explanation: An objective of quality circle team is to reduce errors and enhance quality. Reduction in errors improve
s system efficiency and enhancement in quality focuses on continuous improvement.
3. An objective of quality circle team is to _______ cost reduction.
a) promote
b) stop
c) prevent
d) cease
Answer: a
Explanation: An objective of quality circle team is to promote cost reduction. Improving the system performance at
minimum cost and no compromise in quality is the ultimate aim of any continuously improving organization.
4. An objective of quality circle team is to _______ machines and equipment downtime.
a) reduce
b) increase
c) promote
d) augment
Answer: a
Explanation: An objective of quality circle team is to reduce machines and equipment downtime. Downtime refers t
o the time when a machine or equipment is not available for use. This halts productivity. Reducing downtime is ther
efore an utmost focus of quality circle.
5. Which of the following is not a tool used by the quality circle team?
a) Brainstorming
b) Pareto analysis
c) Histograms
d) No. of employees in an organization
Answer: d
Explanation: Brainstorming, pareto analysis and histograms are some of the tools used by the quality circle team. Th
ese tools are used to identify the various problems that the organization faces from time to time.
6. Cause-effect diagram is one of the tools used by the quality circle team.
a) True
b) False
Answer: a
Explanation: Cause-effect diagram is one of the tools used by the quality circle team. The other tools used by the qu
ality circle team are brainstorming, pareto analysis, and histograms.
7. Which of the following is the optimum number of employees in a quality circle team?
a) 600-1000
b) 6000-10000
c) 6-10
d) 60-100
Answer: c
Explanation: The optimum number of employees in a quality circle team is in between 6-10. The team should meet f
requently and update itself with the existing performance level of the organization and find out the scope for improv
ement.
8. Which of the following is not a factor looked at by the quality circle team when it focuses on personal well-being
of an employee?
a) Working conditions
b) Safety
c) Work relations
d) Productivity related problem
Answer: d
Explanation: Working conditions, safety, and work relations are the factors looked at by the quality circle team whe
n it focuses on the personal well-being of an employee. Productivity related problem is an organizational issue.
9. An objective of quality circle team is to build an attitude of ________
a) Problem creation
b) Problem prevention
c) Problem augmentation
d) Problem development
Answer: b
Explanation: An objective of quality circle team is to build an attitude of problem prevention. This attitude will incre
ase the productivity of the organization as problems generally halt production until they are solved.
1. Which of the following elements is not part of the structure of quality circle in an organization?
a) Top management
b) Steering committee
c) Non-members
d) Student
Answer: d
Explanation: Top management, steering committee, leader, non-members, coordinator, facilitator, and members are t
he elements part of the structure of the quality circle in an organization. All these elements are crucial for the efficie
nt functioning of the organization.
2. The top-level management in an organization influences the successful implementation of the concept of the quali
ty circle.
a) True
b) False
Answer: a
Explanation: The top-level management in an organization influences the successful implementation of the concept
of the quality circle. They are not directly connected with the formal structure of the quality circle.
3. Who amongst the following is responsible for arrangement of steering committee meeting?
a) Top management
b) Coordinator
c) Student
d) Teacher
Answer: b
Explanation: Coordinator is responsible for arrangement of steering committee meeting. Generally, a senior manager
within the organization acts as a coordinator.
4. Who amongst the following is responsible for organizing training programs?
a) Top management
b) Coordinator
c) Student
d) Teacher
Answer: b
Explanation: Coordinator is responsible for organizing training programs. He is also responsible for proper documen
tation of various activities.
5. Who amongst the following is responsible for conveying quality policy to its employees and encourage them to fo
rm quality circles?
a) Top management
b) Coordinator
c) Student
d) Teacher
Answer: a
Explanation: Top management is responsible for conveying quality policy to its employees and encourages them to f
orm quality circles. They are not directly a part of the formal quality circle structure.
6. _______ should be lenient enough to financially support quality circle projects.
a) Top management
b) Coordinator
c) Student
d) Teacher
Answer: a
Explanation: Top management should be lenient enough to financially support quality circle projects. They are not d
irectly a part of the formal quality circle structure.
7. Who amongst the following is a senior person in a specific area whose task is to act as a mentor for effective oper
ation of quality circles?
a) Top management
b) Coordinator
c) Facilitator
d) Steering Committee
Answer: c
Explanation: Facilitator is a senior person in a specific area whose task is to act as a mentor for effective operation o
f quality circles. She/he also elucidates the functioning of quality circles in his/her area in steering committee meetin
gs.
8. _____ is a group of members working under the chairmanship of the CEO with functional heads as members.
a) Top management
b) Coordinator
c) Facilitator
d) Steering Committee
Answer: d
Explanation: Steering Committee is a group of members working under the chairmanship of the CEO with functiona
l heads as members. The other elements belonging to the structure of quality circle are top management, coordinator,
facilitator, leader/deputy leader, members, and non-members.
1. Which of the following is not the role of quality circle members?
a) Attend all possible meetings

b) Participate actively in the group process
c) Contribute to find solutions to problems
d) Conduct meeting regularly
Answer: d
Explanation: To attend all possible meetings, to participate actively in the group process, and to contribute to find so
lutions to problems are some of the important roles of quality circle members. A quality circle leader conducts meeti
ng regularly.
2. A quality circle leader moderates in meeting.
a) True
b) False
Answer: a
Explanation: A quality circle leader moderates in meeting. He/she also has the role of conducting meeting regularly t
o review organization performance and focus on achieving continuous improvement.
3. A quality circle leader is responsible for keeping the cohesiveness in the quality circle group.
a) True
b) False
Answer: a
Explanation: A quality circle leader is responsible for keeping the cohesiveness in the quality circle group. He/she is
responsible for taking care of the task behavior of the group, and team maintenance.
4. Which of the following is not the role of the facilitator?
a) Work closely with steering committee

b) Maintain circle records
c) Evaluates circle activities
d) Moderate in meetings
Answer: d
Explanation: To work closely with steering committee, to maintain circle records, and to evaluate circle activities ar
e the roles of the facilitator. The role of a quality circle leader is to moderate in meetings.
5. Who amongst the following plays the role of ensuring adequate training opportunities to the facilitator(s), leaders,
and members?
a) Steering committee
b) Members
c) Coordinator
d) Facilitator
Answer: a
Explanation: Steering committee plays the role of ensuring adequate training opportunities to the facilitator(s), leade
rs, and members. It takes important decisions at the organizational level.
6. Who amongst the following plays the role of recognizing the contributions of the facilitator(s), leaders, and memb
ers?
b) Members
c) Coordinator
d) Facilitator
Answer: a
Explanation: Steering committee plays the role of recognizing the contributions of the facilitator(s), leaders, and me
mbers. It takes important decisions at the organizational level.
7. Who amongst the following prepares the budget for the functioning of quality circle?
b) Members
c) Coordinator
d) Facilitator
Answer: c
Explanation: Coordinator prepares the budget for the functioning of quality circle. He/she convenes steering commit
tee meetings.
8. Who amongst the following helps in solving problems encountered in the implementation of quality circle?
b) Members
c) Coordinator
d) Facilitator
Answer: c
Explanation: Coordinator helps in solving problems encountered in the implementation of quality circle. The other r
oles played by a coordinator are to prepare the budget for the functioning of quality circle and to convene steering co
mmittee meetings.
1. In which step of quality circle operation cycle do we identify a number of problems?
a) Problem identification
b) Problem selection
c) Problem analysis
d) Present solution to management
Answer: a
Explanation: Problem identification is the first step of quality circle operation cycle. In this step we identify a numbe
r of problems that are bothering the proper functioning of the organization.
2. In which step of quality circle operation cycle do we prioritize and decide the problem to be dealt with first?
c) Problem analysis
Answer: b
Explanation: Problem selection is the second step of quality circle operation cycle. In this step we prioritize and deci
de the problem to be dealt with first.
3. In which step of quality circle operation cycle do we clarify and analyze the problem?
c) Problem analysis
Answer: c
Explanation: Problem analysis is the third step of quality circle operation cycle. In this step problems are clarified an
d analyzed.
4. In which step of quality circle operation cycle do we identify and evaluate causes and generate alternative solution
s to the problem?
c) Problem analysis
d) Generate alternative solutions
Answer: d
Explanation: ‘Generate alternative solutions’ is the fourth step of quality circle operation cycle. In this step we identi
fy and evaluate causes and generate alternative solutions to the problem.
5. In which step of quality circle operation do we compare the alternative solutions to the problem on the basis of ret
urn on investment?
c) Problem analysis
d) Select the most appropriate solution
Answer: d
Explanation: ‘Select the most appropriate solution’ is the fifth step of quality circle operation cycle. In this step we c
ompare the alternative solutions to the problem on the basis of return on investment.
6. After selecting the best solution out of the given alternatives, the next step in the quality circle operation cycle is t
o prepare a plan of action.
a) True
b) False
Answer: a
Explanation: The step to prepare a plan of action is the sixth step in the quality circle operation cycle. In this step, a
plan of action is prepared for the best solution selected out of the given alternatives for the given problem.
7. After a proper plan of action is made, the next step is to present the solution to the management for approval.
a) True
b) False
Answer: a
Explanation: The step to present the solution to management is the seventh step in the quality circle operation cycle.
In this step, the solution after a proper plan of action is presented to the management for approval.
8. In which step of the quality circle operation cycle does the management test the final solution before full scale im
plementation?
c) Problem analysis
d) Implementation of solution
Answer: d
Explanation: ‘Implementation of solution’ is the eight step in the quality circle operation cycle. In this step, after the
circle members present the solution to the management, the management evaluates the solution and performs a test b
efore full scale implementation.
1. Participation is not always voluntary in all cases in quality circle.
a) True
b) False
Answer: a
Explanation: Participation is not always voluntary in all cases in quality circle. Ideally, participation should be volun
tary in a quality circle.
2. There is no involvement of trade unions in quality circles.
a) True
b) False
Answer: a
Explanation: There is no involvement of trade unions in quality circles. Quality circle is also known as Quality Cont
rol Circle. It is a small voluntary group of employees and their supervisors comprising of around 6 to 10 members.
3. Participation fades away when there is lack of support from ________
a) Top management
b) Bottom management
c) Intermediate management
d) Customers
Answer: a
Explanation: The top management drives the morale of the employees. If there is a lack of support from the top man
agement, the participation in quality circle starts to fade away.
4. Which of the following is not a tangible gain of quality circle?
a) Better quality
b) Productivity improvement
c) Higher safety
d) Enriched quality of work life
Answer: d
Explanation: Better quality, productivity improvement, and higher safety are the tangible gains of quality circle. Enri
ched quality of work life is an intangible gain of quality circle.
a) Greater cost effectiveness

b) Better housekeeping
c) Increased profitability
d) Attitudinal changes
Answer: d
Explanation: Greater cost effectiveness, better housekeeping, and increased profitability are the tangible gains of qua
lity circle. Attitudinal changes are an intangible gain of quality circle.
a) Waste reduction
b) Reduced absenteeism
c) Reduced grievances
d) Harmony, mutual trust
Answer: d
Explanation: Waste reduction, reduced absenteeism, and reduced grievances are the tangible gains of quality circle.
Harmony and mutual trust are intangible gains of quality circle.
7. Which of the following is not an intangible gain of quality circle?
a) Effective team working

b) Better human relations
c) Participative culture
d) Waste reduction
Answer: d
Explanation: Effective team working, Better human relations, and Participative culture are the intangible gains of q
uality circle. Waste reduction is a tangible gain of quality circle.
8. Which of the following is not an intangible gain of quality circle?
a) Human resource development

b) Promotion of job knowledge
c) Greater sense of belonging
d) Greater cost effectiveness
Answer: d
Explanation: Human resource development, Promotion of job knowledge, and a Greater sense of belonging are the i
ntangible gains of quality circle. Greater cost effectiveness is a tangible gain of quality circle.
9. Which of the following is not a benefit of quality circles’ effects on individuals’ characteristics?
a) It enables the individual to improve personal capabilities

b) It increases the individuals’ self-respect
c) It helps workers change certain personality characteristics
d) It increases the conflict stemming from the working environment
Answer: d
Explanation: The benefits of quality circles’ effects on individuals’ characteristics are that it enables the individual t
o improve personal capabilities, and it increases the individuals’ self-respect. It also helps workers change certain pe
rsonality characteristics.
10. Which of the following is not a benefit of quality circles’ effects on individuals’ relation with others?
a) It increases the respect of the supervisor for the workers

b) It increases workers’ understanding of the difficulties faced by the supervisors
c) It increases management’s respect for workers
d) It change some workers’ negative attitudes
Answer: d
Explanation: The benefits of quality circles’ effects on individuals’ relation with others is that it increases the respect
of the supervisor for the workers, and it increases workers’ understanding of the difficulties faced by the supervisor
s. It also increases management’s respect for workers.
1. What does the below given symbol represent when we construct a flow chart?
a) Terminator
b) Action
c) Decision
d) Arrows
Answer: a
Explanation: The given figure represents the Terminator symbol used during the construction of a flow chart. The ot
her symbols are Action, Decision, Arrows, and Link.
a) Terminator
b) Action
c) Decision
d) Arrows
Answer: b
Explanation: The given figure represents the Action symbol used during the construction of a flow chart. The other s
ymbols are Terminator, Decision, Arrows, and Link.
a) Terminator
b) Action
c) Decision
d) Arrows
Answer: c
Explanation: The given figure represents the Decision symbol used during the construction of a flow chart. The othe
r symbols are Terminator, Action, Arrows, and Link.
a) Terminator
b) Action
c) Decision
d) Arrows
Answer: d
Explanation: The given figure represents the Arrows symbol used during the construction of a flow chart. It shows t
he direction of flow of the process. The other symbols are Terminator, Action, Decisions, and Link.
a) Terminator
b) Action
c) Decision
d) Link
Answer: d
Explanation: The given figure represents the Link symbol used during the construction of a flow chart. It shows the
direction of flow of the process. The other symbols are Terminator, Action, Decisions, and Arrows.
6. Process deployment flow is another term for ________
a) Flow chart
b) Matrices
c) Determinants
d) Arrows
Answer: a
Explanation: Process deployment flow is another term for flow chart. It is also called as flow diagram. It is a sequent
ial representation of processes involved in an organization by the use of standard symbols.
7. Tally sheet is another term for _______
a) Flow chart
b) Matrices
c) Determinants
d) Checksheets
Answer: d
Explanation: Tally sheet is another term for checksheets. It is used for systematic data gathering and represents the fr
equency of occurrences of an event.
8. The type of checksheet used to collect information on process variability is called ________
a) Process distribution check sheet

b) Defective item check sheet
c) Defect location check sheet
d) Defect factor check sheet
Answer: a
Explanation: The type of checksheet used to collect information on process variability is called process distribution
check sheet. The other types of check sheets used are defective item check sheet, defect location check sheet, and de
fect factor check sheet.
9. The type of check sheet which specifies the variety of defects with their frequency of occurrence is called ______
___

Answer: b
Explanation: The type of check sheet which specifies the variety of defects with their frequency of occurrence is call
ed defective item check sheet. The other types of check sheets used are process distribution check sheet, defect locat
ion check sheet, and defect factor check sheet.
10. The type of check sheet which identifies where defects occur in a product is called _______

Answer: c
Explanation: The type of check sheet which identifies where defects occur in a product is called defect location chec
k sheet. The other types of check sheets used are process distribution check sheet, defective item check sheet, and de
fect factor check sheet.
11. The type of check sheet used to monitor the input parameters that can affect the occurrence of defects in a proces
s is called _________

Answer: d
Explanation: The type of check sheet used to monitor the input parameters that can affect the occurrence of defects i
n a process is called defect factor check sheet. The other types of check sheets used are process distribution check sh
eet, defective item check sheet, and defect location check sheet.
1. The frequency distribution of a numerical data can be graphically represented by a ______
a) Histogram
b) Telegram
c) Monogram
d) Anagram
Answer: a
Explanation: The histogram is a graphical representation of the frequency distribution of a numerical data. It is a bar
chart/diagram. The data is represented in the form of rectangles of varying heights and equal widths.
2. Which of the following type of histogram represents a normal distribution?
a) Bell-shaped
b) Comb
c) Skewed
d) Plateau
Answer: a
Explanation: Bell-shaped histogram represents a normal distribution. It has a symmetrical shape with a peak in the
middle.
3. Pareto diagram is named after ________
a) Vilfredo Pareto
b) William Deming
c) Joseph Juran
d) Philip Crosby
Answer: a
Explanation: Pareto diagram is named after Vilfredo Pareto. He was an Italian economist. It is used to find out the ‘v
ital few’ from the ‘trivial many’.
4. Which of the following tool can be used as a risk assessment technique from activity level to system level?
a) Pareto diagram
b) Demand forecasting
c) Benchmarking
d) Job Scheduling
Answer: a
Explanation: Pareto diagram tool can be used as a risk assessment technique from activity level to system level. It is
used when one has to prioritize problems based on relative importance.
5. Pareto analysis is also known by _______
a) 80/20 rule
b) Demand forecasting
c) Benchmarking
d) Job Scheduling
Answer: a
Explanation: Pareto analysis is also known by 80/20 rule. It means by focusing on 20% work we can get 80% benefi
t. Pareto diagram is named after Vilfredo Pareto.
6. Which of the following type of histogram represents two normal distributions with two peaks in the middle?
a) Double-peaked
b) Bell-shaped
c) Plateau
d) Edged peak
Answer: a
Explanation: Double-peaked histogram represents two normal distributions with two peaks in the middle. It indicate
s that more than one distribution at work.
7. Which of the following is not a disadvantage of using histogram?
a) Exact values cannot be read as data is divided in different categories

b) Can be used only with continuous data
c) Two data sets are difficult to compare
d) Relative frequency of occurrences can be found out
Answer: d
Explanation: The following are the disadvantages of using histogram: Exact values cannot be read as data is divided
in different categories, it can be used only with continuous data, and two data sets are difficult to compare. Relative f
requency of occurrences can be found out which is considered to be an advantage of using histogram.
8. Which of the following is not a type of histogram?
a) Isolated peak
b) Comb
c) Truncated
d) Pie Chart
Answer: d
Explanation: Isolated peak, comb, and truncated are different types of histogram. Pie Chart is another statistical tool
like histogram to represent data.
9. Which of the following type of histogram looks like a normal distribution whose some part has been removed lea
ding to an asymmetrical shape?
a) Isolated peak
b) Comb
c) Truncated
d) Pie Chart
Answer: c
Explanation: Truncated histogram looks like a normal distribution whose some part has been removed. It leads to th
e truncated histogram having an asymmetrical shape.
10. Which of the following type of histogram looks like a normal distribution with a large peak at one end?
a) Isolated peak
b) Comb
c) Edged peak
d) Pie Chart
Answer: c
Explanation: Edged peak histogram looks like a normal distribution with a large peak at one end. It indicates errors i
n data recording. The histogram is a graphical representation of the frequency distribution of a numerical data.
1. The collection of all the results of an operation can be called as __________ in statistics.
a) Population
b) Sample
c) Sampling
d) Random
Answer: a
Explanation: The collection of all the results of an operation can be called as ‘population’ in statistics. ‘Population’ i
s also known as ‘Universe’ in statistics. The inclusion of all observations in a data set can be referred to as ‘populati
on’.
2. The subset of a population is known as ________
a) Population
b) Sample
c) Sampling
d) Random variable
Answer: b
Explanation: The subset of a population is known as ‘sample’ data. For example, people living in a state can be refer
red to as a ‘population’, but the number of English speaking people from that population can be referred to as a ‘sam
ple’.
3. The process of sample selection in statistics is known as _______
a) Mean
b) Median
c) Sampling
d) Random variable
Answer: c
Explanation: The process of sample selection in statistics is known as ‘sampling’. The sample selection should be ju
dicious and must reflect and resemble the entire population.
4. Sampling can be used when it is impossible to measure the entire population.
a) True
b) False
Answer: a
Explanation: Sampling can be used when it is impossible to measure the entire population. It can be also be used wh
en measuring the whole population is expensive.
5. The Gaussian curve is also known as ______
a) Poisson curve
b) Weibull curve
c) Normal curve
d) Exponential curve
Answer: c
Explanation: The Gaussian curve is also known as the normal curve. It is symmetrical and has a bell-shaped distribut
ion. The mean, mode, and median have the same value.
6. If the standard deviation is zero, what comment can we make on the type of normal curve formed?
a) Data spread around the mean value is more

b) Data spread around the mean value is less
c) Data spread around the mean value is more in the negative x-axis only
d) No curve is formed
Answer: d
Explanation: If the standard deviation is zero, there is no curve formed. All the values are identical to the mean valu
e. The ‘Normal curve’ is also known as the ‘Gaussian curve’.
7. There are two normal curves with the same mean value. The standard deviation of curve 1 is more than curve 2, w
hat can we comment on the two normal curves?
a) Curve 1 is flatter than Curve 2
b) Curve 1 is peaked than Curve 2
c) Curve 1 is similar to Curve 2
d) Curve 1 and Curve 2 cannot be compared
Answer: a
Explanation: There are two normal curves with the same mean value. Curve 1 is flatter than Curve 2. The data is mo
re spread out in Curve 1. Curve 2 data spread is narrower compared to Curve 1.
8. ‘Parameter’ is a true population estimated by a ‘statistic’ and is often unknown.
a) True
b) False
Answer: a
Explanation: ‘Parameter’ is a true population estimated by a ‘statistic’ and is often unknown. ‘Parameter’ is difficult
and expensive to be measured directly.
9. Numerical data measured directly from a sample is known as _______
a) Sampling
b) Statistic
c) Population
d) Parameter
Answer: b
Explanation: Numerical data measured directly from a sample is known as ‘statistic’. It can be utilized in making inf
erences about a population. ’Parameter’ is estimated from a ‘statistic’.
10. Which of the following is not a type of sampling technique?
a) Stratified sampling
b) Cluster sampling
c) Judgment sampling
d) Sample sampling
Answer: d
Explanation: Stratified sampling, cluster sampling, and judgment sampling are different sampling techniques. Simpl
e random sampling and systematic sampling are the other types of sampling techniques.
1. Cause and effect diagram is also known as _______
a) Fishbone diagram
b) Fish diagram
c) Cause diagram
d) Effect diagram
Answer: a
Explanation: Cause and effect diagram is also known as the fishbone diagram. It is due to the structural shape of the
diagram. It was developed by Ishikawa in 1943.
2. Cause and effect diagram is also known as _______
a) Fishbone diagram
b) Ishikawa diagram
c) Both Ishikawa diagram and Fishbone diagram
d) Cause diagram only
Answer: c
Explanation: Cause and effect diagram is also known as both Ishikawa diagram and Fishbone diagram. Ishikawa dia
gram is the man who developed it and fishbone diagram due to its appearance.
3. Cause and effect diagram can be used in research, manufacturing, marketing, office operations, and services.
a) True
b) False
Answer: a
Explanation: Cause and effect diagram can be used in research, manufacturing, marketing, office operations, and ser
vices. It is used to find the root cause of a problem after thorough brainstorming.
4. Cause and effect diagram can be used to educate and train personnel in decision-making and corrective-action acti
vities.
a) True
b) False
Answer: a
Explanation: Cause and effect diagram can be used to educate and train personnel in decision-making and corrective
-action activities. It analyses all the possible causes of the existing problems. Hence, the problems are rectified.
5. Which of the following is not a cause of poor solder joints after studying the cause and effect diagram?
a) Inadequate training
b) Solder contamination
c) Temperature of solder bit
d) Customer complaint
Answer: d
Explanation: Inadequate training, solder contamination, and temperature of solder bit are the potential causes of a po
or solder joint. Poor solder joints can result in customer dissatisfaction resulting in a customer complaint.
6. Which of the following is not a cause of poor marks of class 12 students in board exams after studying the cause a
nd effect diagram?
a) Improper teaching
b) Lack of seriousness of students due to distractions
c) Too much focus on competitive exams
d) Extremely hot climate in the area
Answer: d
Explanation: Improper teaching, lack of seriousness of students due to distractions, and too much focus on competiti
ve exams are the potential causes of poor marks of class 12 students in board exams. Hot climate can affect the healt
h of the students but is not the reason for poor performance of class 12 students.
7. Which of the following is not a cause of rising health problems in young children in an area after studying the cau
se and effect diagram?
a) Poor water quality

b) Increase in contaminant level
c) Harmful substances released by industries
d) Elders scolding the children
Answer: d
Explanation: Poor water quality, increase in contaminant level, and harmful substances released by industries are the
potential causes of rising health problems in young children in an area. Young children must have a healthy body. G
overnment must interfere and look at the well-being of young children.
8. Which of the following is not a cause of engineering students switching to pure management career (according to
the views of engineering students)?
a) Better salary
b) Their parents forced them
c) Interest was not developed in the core subjects during their course
d) Pure management is less laborious
Answer: b
Explanation: Better salary, lack of interest development in the core subjects during their course and the notion that p
ure management is less laborious are the potential causes of engineering students switching to pure management car
eer. Parents have no role in this decision making though they provide suggestions.
1. Scatter diagram is graphical component of ____________
a) Regression analysis
b) Demand
c) Supply
d) Profit
Answer: a
Explanation: Scatter diagram is graphical component of regression analysis. It shows the relationship between depen
dent and independent variable.
2. A scatter diagram represents the relationship between _________ and ________
a) Cause, effects
b) Cause, problem
c) Effects, output
d) Production, productivity
Answer: a
Explanation: A scatter diagram represents the relationship between cause and effects. Cause is independent variable
and Effects is the dependent variable.
3. ________ is one of the most widely used tools in the statistical process control.
a) Control chart
b) Parabola
c) Hyperbola
d) Ellipse
Answer: a
Explanation: Control chart is one of the most widely used tools in statistical process control. It was invented by Walt
er A. Shewhart.
4. Control chart for characteristics is used for quantifiable data.
a) True
b) False
Answer: a
Explanation: Control chart for characteristics is used for quantifiable data. It can be used for quantifiable data such a
s number of defects, typing errors in a report etc.
5. Control chart for variables is used for measurable data.

a) True
b) False
Answer: a
Explanation: Control chart for variables is used for measurable data. It can be used for measurable data such as time,
length, temperature, weight, pressure etc.
6. A histogram gives _____ nature of process variability.
a) Static
b) Dynamic
c) Negative
d) Positive
Answer: a
Explanation: A histogram gives static picture of process variability. Control chart shows the dynamic performance o
f the process.
7. The horizontal lines above and below the centre line in control chart are known as _________ and ________ resp
ectively.
a) Upper control limit, lower control limit

b) Lower control limit, upper control limit
c) Upper control limit, medium control limit
d) Lower control limit, medium control limit
Answer: a
Explanation: The horizontal lines above and below the centre line in control chart are known as upper control limit a
nd lower control limit respectively. The middle line is known as the centre line.
8. If a sample drawn from the process lies inside the upper control limit and lower control limit, it means the ______
_____
a) Process is in control
b) Process is out of control
c) Process is partially in control
d) Process is partially out of control
Answer: a
Explanation: If a sample drawn from the process lies inside the upper control limit and lower control limit, it means t
he process is in control. The UCL and LCL are generally set at 3 standard deviations above and below of the sample
means.
9. If a sample drawn from the process lies outside the upper control limit and lower control limit, it means the _____
_____
a) Process is in control
b) Process is out of control
c) Process is partially in control
d) Process is partially out of control
Answer: b
Explanation: If a sample drawn from the process lies outside the upper control limit and lower control limit, it means
the process is out of control. The UCL and LCL are generally set at 3 standard deviations above and below of the sa
mple means.
10. Which of the following is not a use of control chart?

a) To evaluate process stability
b) To show source of variations
c) To identify when the process will go out of control
d) To decrease productivity
Answer: d
Explanation: To evaluate process stability, to show source of variations, and to identify when the process will go out
of control are the uses of control chart. It will improve productivity.
1. Which of the following is also known as KJ diagram?
a) Affinity diagram
b) Relationship diagram
c) Tree diagram
d) Matrix diagram
Answer: a
Explanation: Affinity diagram is also known as KJ diagram. It is one of the new seven management tools. The other
s are relationship diagram, tree diagram, matrix diagram, matrix data analysis, decision tree, and arrow diagram.
2. Who devised the term ‘affinity diagram’?
a) Deming
b) Taguchi
c) Crosby
d) Jiro Kawakita
Answer: d
Explanation: Jiro Kawakita devised the term ‘affinity diagram’. It is also known as KJ diagram. It is one of the new
seven management tools.
3. Which of the following is not a use of affinity diagram?
a) To determine logical priorities

b) To create new concepts
c) To calculate mean of the numerical data
d) To provide a visual representation of large amount of ideas
Answer: c
Explanation: To determine logical priorities, to create new concepts, and to provide a visual representation of large a
mount of ideas are the uses of affinity diagram. Affinity diagram is also known as KJ diagram.
4. The relationship diagram is a tool for finding causes to a problem.
a) True
b) False
Answer: a
Explanation: The relationship diagram is a tool for finding causes to a problem. The basic logic is same as cause and
effect diagram. Relationship diagram is also known as interrelationship diagram.
5. Relationship diagram clarifies the relationship between cause and effect and also between the various causes.
a) False
b) True
Answer: b
Explanation: Relationship diagram clarifies the relationship between cause and effect and also between the various c
auses. Relationship diagram is also known as interrelationship diagram.
6. Which of the following is not a use of relationship diagram?
a) To identify key problem from a list of important problems

b) To identify the root causes of existing problems
c) To identify key factors needed to make a decision
d) To calculate the variance of the numerical data
Answer: d
Explanation: To identify key problem from a list of important problems, to identify the root causes of existing probl
ems, and to identify key factors needed to make a decision are the uses of relationship diagram. The relationship dia
gram is a tool for finding causes to a problem.
7. The seven basic quality tools focus on the __________ aspect and the new seven management tools focus on the
______ aspect.
a) Quantitative, numerical
b) Numerical, quantitative
c) Quantitative, qualitative
d) Qualitative, quantitative
Answer: c
Explanation: The seven basic quality tools focus on the quantitative aspect and the new seven management tools foc
us on the qualitative aspect. The new seven management tools are widely used by the managers for quality managem
ent.
8. Which of the following is not a new seven management tool?
a) Affinity diagram
b) Tree diagram
c) Matrix diagram
d) Histogram
Answer: d
Explanation: Affinity diagram, tree diagram, and matrix diagram belong to the new seven management tools. Histog
ram belongs to the seven basic quality tools.
1. The tree diagram is break down of a topic into its component elements, showing the logical and sequential links b
etween these elements in a systematic manner.
a) True
b) False
Answer: a
Explanation: The tree diagram is break down of a topic into its component elements, showing the logical and sequen
tial links between these elements in a systematic manner. It outlines the complete spectrum of paths and tasks that m
ust be carried out to achieve a goal.
2. Quality table is also known as _______
a) Relationship diagram
b) Tree diagram
c) Matrix diagram
d) Arrow diagram
Answer: c
Explanation: Quality table is also known as matrix diagram. Matrix diagram is a tool which depicts the relation betw
een ‘factors’ in the form of a table or matrix.
3. Matrix diagram is the starting point in building the house of quality.
a) True
b) False
Answer: a
Explanation: Matrix diagram is the starting point in building the house of quality. It is a tool which depicts the relati
on between ‘factors’ in the form of a table or matrix.
4. Which of the following is not a type of matrix diagram?
a) L shaped
b) T shaped
c) Roof shaped
d) Ground shaped
Answer: d
Explanation: L, T and Roof shaped are different types of matrix diagram. The other forms of matrix diagram are Y,
C and X shaped.
5. _______ matrix diagram is used to relate two groups of items to each other (or one group to itself).
a) T-shaped
b) L-shaped
c) Y-shaped
d) Roof-shaped
Answer: b
Explanation: L-shaped matrix diagram is used to relate two groups of items to each other (or one group to itself). Th
e number of groups present in L-shaped matrix diagram is 2.
6. ______ matrix diagram is used to relate three groups of items; each group is related to the other two in a circular f
ashion.
a) T-shaped
b) L-shaped
c) Y-shaped
d) Roof-shaped
Answer: c
Explanation: Y-shaped matrix diagram is used to relate three groups of items; each group is related to the other two i
n a circular fashion. The number of groups present in Y-shaped matrix diagram is 3.
7. _____ matrix diagram is used to relate four group of items; each group is related to two others in a circular fashio
n.
a) T-shaped
b) X-shaped
c) Y-shaped
d) Roof-shaped
Answer: b
Explanation: X-shaped matrix diagram is used to relate four group of items; each group is related to two others in a c
ircular fashion. The number of groups present in X-shaped matrix diagram is 4.
8. _____ matrix diagram is used to relate three groups of items all together simultaneously in 3-D.
a) T-shaped
b) X-shaped
c) Y-shaped
d) C-shaped
Answer: d
Explanation: C-shaped matrix diagram is used to relate three groups of items all together simultaneously in 3-D. The
number of groups present in C-shaped matrix diagram is 3.
1. In Matrix Data Analysis Chart (MDAC), numerical data is used whereas in Matrix Diagram symbols are used to i
ndicate the existence and strength of a relationship.
a) True
b) False
Answer: a
Explanation: In Matrix Data Analysis Chart (MDAC), numerical data is used whereas in Matrix Diagram symbols ar
e used to indicate the existence and strength of a relationship. MDAC is one of the new seven management tools.
2. Which one of the following is the only new seven management tool that uses numerical data and produces numeri
cal results?
a) Affinity diagram
b) Tree diagram
c) Matrix Data Analysis diagram
d) Relationship diagram
Answer: c
Explanation: Matrix Data Analysis diagram is the only new seven management tool that uses numerical data and pro
duces numerical results. It is also known as MDAC. It is different from the matrix diagram where symbols are used t
o indicate the strength and existence of a relationship.
3. Matrix Data Analysis diagram is used in ‘Principle Component Analysis’.
a) True
b) False
Answer: a
Explanation: Matrix Data Analysis diagram is used in ‘Principle Component Analysis’. It is one of the new seven m
anagement tools. The other new management tools are affinity diagram, relationship diagram, tree diagram, matrix d
iagram, decision tree, and arrow diagram.
4. In a matrix data analysis diagram, two different brands are compared. Brand 1 is having the coordinates (40,6) an
d Brand 2 is having the coordinates (40,-6). X-axis is the cost of the item and Y-axis is customer satisfaction. Which
brand would you prefer?
a) Brand 2
b) Brand 1
c) Both are equally preferred
d) Can’t be determined
Answer: b
Explanation: Brand 1 and Brand 2 have the same x-component i.e. 40. So, the cost of the item is equal for both the b
rands. But, Brand 2 has a negative y-component i.e. -6 whereas Brand 1 has a positive y-component i.e. 6. So, Brand
1 has a positive customer satisfaction and Brand 2 has a negative customer satisfaction. Therefore, Brand 1 is prefer
red.
5. Process decision programme chart is also known as _______
a) Affinity diagram
b) Relationship diagram
c) Decision tree
d) Matrix diagram
Answer: c
Explanation: Process decision programme chart is also known as decision tree. It is one of the new seven manageme
nt tools. The other new management tools are affinity diagram, relationship diagram, tree diagram, matrix diagram,
matrix data analysis diagram, and arrow diagram.
6. Which one of the following is not an area of application of PDPC?
a) New product development

b) Building equipment
c) Decision making involved in a new task
d) Decision making where planning is not involved
Answer: d
Explanation: New product development, Building equipment, and Decision making involved in a new task require
meticulous planning. PDPC is used as a planning tool to outline every conceivable and likely occurrence in planning
.
7. Which among the following are best known arrow diagrams?
a) CPM and matrix data analysis diagram

b) PERT and matrix data analysis diagram
c) CPM, PERT and matrix data analysis diagram
d) CPM and PERT
Answer: d
Explanation: CPM and PERT are the best known arrow diagrams. Arrow diagram is one of the new seven managem
ent tools. The other new management tools are affinity diagram, relationship diagram, tree diagram, matrix diagram,
matrix data analysis diagram, and decision tree.
8. CPM is the abbreviation for ________
a) Critical Process Method

b) Critical Procurement Method
c) Critical Powerful Method
d) Critical Path Method
Answer: d
Explanation: CPM is the abbreviation for Critical Path Method. It is an example of arrow diagram. It is used as a pro
ject management tool for scheduling project activities.
9. PERT is the abbreviation for ________
a) Project Evaluated and Review Technique

b) Project Evaluation and Response Technique
c) Program Evaluation and Response Technique
d) Program Evaluation and Review Technique
Answer: d
Explanation: PERT is the abbreviation for Program Evaluation and Review Technique. It is an example of arrow dia
gram. It is an important tool used in project management.
10. Which of the following is not an output of arrow diagram?
a) To show the paths to complete a project

b) To find the shortest time possible for the project
c) To calculate the mean, median and mode of a sample data
d) To display graphically simultaneous activities
Answer: c
Explanation: To show the paths to complete a project, to find the shortest time possible for the project, and to displa
y graphically simultaneous activities are the various outputs of arrow diagram. Arrow diagram is an important tool u
sed in project management.
1. Who developed the concept of ‘TRIZ’?
a) GenrichAltshuller
b) Deming
c) Crosby
d) Juran
Answer: a
Explanation: The concept of ‘TRIZ’ was developed by GenrichAltshuller. It is a Russian acronym which is translate
d as Theory of Inventive Problem Solving.
2. TRIZ is based on logic and data, and not based on intuition or brainstorming.
a) True
b) False
Answer: a
Explanation: TRIZ is based on logic and data, and not based on intuition or brainstorming. It is a creative problem s
olving methodology. It was developed by the Russian scientist GenrichAltshuller.
3. Which of the following is not an emotional based method for increasing innovation?
a) Brainstorming
b) Synectics
c) Lateral thinking
d) TRIZ
Answer: d
Explanation: Brainstorming, synectics, lateral thinking, and mind mapping are emotional based methods for increasi
ng innovation. TRIZ is an empirical based method for increasing innovation.
4. According to TRIZ, one has to find the solution for the existing problem from the existing set of solutions.
a) False
b) True
Answer: b
Explanation: According to TRIZ, one has to find the solution for the existing problem from the existing set of soluti
ons. Somewhere, someone may have solved the problem already or something similar. The task is to find that soluti
on from the given set of solutions.
5. Which of the following is incorrect with respect to TRIZ?
a) It reduces the number of trial and error iterations

b) It is based on logic and data
c) It is emotion based
d) It is empirical based
Answer: c
Explanation: TRIZ reduces the number of trial and error iterations for solving a problem. It is based on logic and dat
a. It is empirical based.
6. Which of the following is incorrect with respect to TRIZ?
a) Useful for new product analysis

b) Useful for failure prediction
c) Useful for failure analysis
d) Can’t be used in new product analysis
Answer: d
Explanation: TRIZ can be used for new product analysis. It can be used for failure prediction. It can also be used in f
ailure analysis. Basically, it can be used to work on any type of problem.
7. Which of the following is false about TRIZ?
a) It saves time
b) It saves money
c) It increases risk
d) It reduces risk
Answer: c
Explanation: TRIZ is used to save time and money. It also reduces risk. All these are possible because TRIZ reduces
the number of trial and error iterations for solving a problem.
8. What does IFR mean?
a) Ideal Final Result

b) Initialize Final Result
c) Ideal Final Report
d) Initialize Final Report
Answer: a
Explanation: IFR which means Ideal Final Result is used in the problem definition phase of TRIZ. It is a solution to
a problem which is free of any constraints from the original problem.
1. Taguchi methods aim at improving the quality of manufactured goods.
a) True
b) False
Answer: a
Explanation: Taguchi methods aim at improving the quality of manufactured goods. They are statistical methods dev
eloped majorly by Genichi Taguchi.
2. The quality loss function is given by L(x) = k(x-N)2. What does ‘k’ stand for?
a) Tolerance
b) Quality loss coefficient
c) Nominal value of given product
d) Quality characteristic of selected product
Answer: b
Explanation: The constant of proportionality ‘k’ is also known as quality loss coefficient. The quality loss function i
s a quadratic equation given by Taguchi.
3. Which among the following is the correct formula for evaluating the quality loss coefficient ‘k’?
a) k=c+d
b) k=c/d
c) k=c/d2
d) k=c-d
Answer: c
Explanation: k=c/d2 represents the correct formula for evaluating the quality loss coefficient ‘k’. Here, c=loss assoc
iated with the specification limit and d=deviation of the specification from the targeted value.
4. If the specifications of a product are 10±3 for a particular quality characteristic and the average repair cost is ₹200
, what is the value of the quality loss coefficient?
a) 20.23
b) 22.23
c) 24.23
d) 26.23
Answer: b
Explanation: Here, d=3, and c=₹200. So, putting the respective values of ‘d’ and ‘c’ in the formula k=c/d2 we get k
= 22.23. Here, k=quality loss coefficient, c=loss associated with the specification limit and d=deviation of the specif
ication from the targeted value.
5. In the case of smaller-the-better characteristics, what is the value of ideal target (N)?
a) 0
b) 50
c) 100
d) 200
Answer: a
Explanation: In the case of smaller-the-better characteristics, the value of ideal target (N) is 0. It is a special case oft
en used in manufacturing of products.
6. The quality loss function is given by L(x) = k(x-N)2. What does ‘N’ stand for?
a) Tolerance
Answer: c
Explanation: In the quality loss function, ‘N’ represents the nominal value of given product. For example, if the spec
ification of a product is 10±3 mm then 10 mm is the nominal value of the given product.
7. Traditional approach focuses on specification limits and Taguchi’s approach focuses on target value.
a) True
b) False
Answer: a
Explanation: Traditional approach focuses on specification limits and Taguchi’s approach focuses on target value. In
traditional approach, a product falling within the given specification limits is considered as a good product. In Tagu
chi’s approach, a product deviating from the target value will incur loss.
8. Which parameter represents the slope of quality loss function?

a) Tolerance
Answer: b
Explanation: The quality loss function is given by L(x) = k(x-N)2. The slope of quality loss function is given by qua
lity loss coefficient. It can be determined by the relation k=c/d2.
9. Which among the following does not fit into the category of loss described by Taguchi?
a) Failure to function
b) Maintenance and repair cost
c) Customer dissatisfaction
d) Employee lay-off
Answer: d
Explanation: Failure to function, maintenance and repair cost, customer dissatisfaction are the various types of loss
described by Taguchi. According to Taguchi, quality is “the loss imparted by the product to the society from the tim
e product is shipped”.
10. If tolerance is ±0.25 mm and the quality loss coefficient is 2520, then which of the following represents the qual
ity loss function?
a) L=2520*(0.25)2
b) L=2520*0.25
c) L=2520/0.25
d) L=2520-0.25
Answer: a
Explanation: If tolerance is ±0.25 mm and the quality loss coefficient is 2520, then the quality loss function is repres
ented by L=2520*(0.25)2. It is a quadratic relation.
1. What is not benchmarking?
a) Systematic search for best practices

b) Systematic search for innovative ideas
c) Systematic search for highly effective operating procedures
d) Systematic search for imitating competitors
Answer: d
Explanation: Benchmarking is the process of systematically searching for best practices, innovative ideas, and highl
y effective operating procedures. All these need to be done to survive and grow in this competitive industry.
2. Defining a proper metric for performance comparison is important in benchmarking.
a) True
b) False
Answer: a
Explanation: Defining a proper metric for performance comparison is important in benchmarking. The target value
must be what the best-in-class achieves. Then, organization compares its performance with the target value.
3. Benchmarking requires managers who understand the reasons for performance variation.
a) True
b) False
Answer: a
Explanation: Benchmarking requires managers who understand the reasons for performance variation. Proper unders
tanding will help the organization come closer to the target value achieved by the best-in-class.
4. Benchmarking is used by organizations as a ________ tool.
a) Intermittent improvement
c) Continuous improvement
d) Sporadic improvement
Answer: c
Explanation: Benchmarking is used by organizations as a continuous improvement tool. It is the process of systemat
ically searching for best practices, innovative ideas, and highly effective operating procedures.
5. Company A manufactures 10 defective products on an average out of 1000 products manufactured. Company B
manufactures 5 defective products on an average out of 1000 products manufactured. Which company must be chos
en for benchmarking and by whom?
a) B should choose A as benchmark

b) A should choose B as benchmark
c) Both are equally efficient
d) Concept of benchmarking is not applicable here
Answer: b
Explanation: A should choose B as benchmark as A is manufacturing more defective products compared to B. A mu
st reduce its average number of defects from 10 out of 1000 manufactured products.
6. Benchmarking involves ________ between the performance level of the organization with its benchmark.
a) Increasing the gap

b) Reducing the gap
c) Opening the gap
d) Broadening the gap
Answer: b
Explanation: Benchmarking involves reducing the gap between the performance level of the organization with its be
nchmark. It is used as a continuous improvement tool.
7. Benchmarking is used extensively in __________
a) Manufacturing organizations only

b) Service organizations only
c) Manufacturing and service organizations
d) Government institutions only
Answer: c
Explanation: Benchmarking is used extensively in manufacturing and service organizations. It is the process of syste
matically searching for best practices, innovative ideas, and highly effective operating procedures.
8. Proper selection of the best-in-class for benchmarking is _______
a) Crucial
b) Doesn’t hold great importance
c) Least important
d) Not important
Answer: a
Explanation: In the contemporary world, many companies sell the same product. It is important to properly select th
e best-in-class for benchmarking. It should be a realistic and achievable target.
1. In which form of benchmarking is comparison of a business process done with a similar process within the organi
zation?
a) Internal benchmarking
b) Competitive benchmarking
c) Functional benchmarking
d) Generic benchmarking
Answer: a
Explanation: In Internal benchmarking, comparison of a business process is done with a similar process within the o
rganization. Comparable sites, branches, sections, departments within the business can be chosen for benchmarking.
2. Which of the following is not an advantage of internal benchmarking?
a) Low cost
b) High cost
c) Relatively easy
d) Deeper understanding of all the processes of the organization
Answer: b
Explanation: Internal benchmarking is comparison of a business process that is done with a similar process within th
e organization. It is low cost, relatively easy and it leads to in-depth understanding of all the processes of the organiz
ation.
3. Which of the following is not a challenge to internal benchmarking?
a) Low performance improvement

b) Internal bias
c) It may not provide best-in-class comparison
d) High performance improvement
Answer: d
Explanation: Internal benchmarking may lead to low performance improvement and it might not provide best-in-clas
s comparison. Internal bias may also be an additional challenge. Hence, we must wisely use internal benchmarking a
s a comparison tool.
4. In which form of benchmarking is direct comparison with competitor done of a product, service, process or metho
d?
Answer: b
Explanation: In competitive benchmarking, direct comparison with competitors is done of a product, service, proces
s or method. This form of benchmarking is efficient in knowing where your organization stands compared to your c
ompetitors.
5. Competitor benchmarking can also open the possibility for partnership.
a) True
b) False
Answer: a
Explanation: In competitive benchmarking, direct comparison with competitors is done of a product, service, proces
s or method. Therefore, if mutual consensus is there to grow together between two competitors, a partnership can als
o happen.
6. Trade secrets may be a challenge in competitor benchmarking.
a) True
b) False
Answer: a
Explanation: Trade secrets may be a challenge in competitor benchmarking. This can lead to improper comparison a
nd may yield to improper results. Competitors can also capitalize on your weakness which may also pose a threat to
your organization.
7. In which form of benchmarking is comparison of similar or identical practices within same or immediate industry
is done?
Answer: c
Explanation: In functional benchmarking, comparison of similar or identical practices within same or immediate ind
ustry is done. This provides information about industry trends. The improvement rate of the organization becomes b
etter too.
8. Which of the following is not a challenge to functional benchmarking?
a) Variation in corporate culture

b) Takes more time than internal benchmarking
c) Common functions are difficult to find
d) Takes less time compared to internal benchmarking
Answer: d
Explanation: In functional benchmarking, comparison of similar or identical practices within same or immediate ind
ustry is done. Variation in corporate culture is a major challenge to functional benchmarking. It takes more time com
pared to internal benchmarking as common functions are difficult to find.
9. In which form of benchmarking unrelated business processes or functions that can be utilized are studied?
Answer: d
Explanation: In generic benchmarking, unrelated business processes or functions that can be utilized are studied. Bar
coding concept used at an airport adopted from a grocery store is an example of generic benchmarking.
10. Which of the following is not a benefit of generic benchmarking?
a) Non-competitive
b) Lack of innovation
c) Non-threatening
d) High potential towards discovery
Answer: b
Explanation: Generic benchmarking leads to innovation. It is non-competitive. It is non-threatening. It also has a hig
h potential towards discovery.
1. Which of the following is not an advantage of process benchmarking?
a) To make the process effective

b) To make the process efficient
c) To make the process faster
d) To make the process ineffective
Answer: d
Explanation: The advantage of process benchmarking is to make the process effective, efficient, and faster. It leads t
o process optimization. Process improvement is a major step organization’s take towards continuous improvement.
2. Process benchmarking can be used in customer complaint processes.
a) True
b) False
Answer: a
Explanation: Process benchmarking can be used in customer complaint processes. It is used to make a process more
efficient, effective and fast. It can also be used in order and fulfilment process.
3. Strategic benchmarking shows long term benefits.
a) True
b) False
Answer: a
Explanation: Strategic benchmarking shows long term benefits. It examines how companies compete and is rarely in
dustry-focused.
4. Which of the following is not a type of comparison made through strategic benchmarking?
a) Business approaches comparison

b) Business strategy comparison
c) Number of managers in each company
d) Business model comparison
Answer: c
Explanation: The comparisons made in strategic benchmarking are that of business approaches, business strategy, an
d business model. It helps you identify the best business strategies of best companies.
5. Which of the following is not a technique used during performance benchmarking?
a) Reverse engineering
b) Analysis of operating statistics
c) Direct product or service comparison
d) To understand business strategy
Answer: d
Explanation: Reverse engineering, direct product or service comparison,and analysis of operating statistics are the di
fferent techniques that are used during performance benchmarking. The other important types of benchmarking are p
rocess benchmarking and strategic benchmarking.
6. Which of the following is not put under focus during performance benchmarking?
a) Elements of cost
b) Technical quality
c) Number of employees in organization
d) Product or service features
Answer: c
Explanation: Elements of cost, technical quality, and product or service features are some of the performance charac
teristics put under focus during performance benchmarking. The other important performance characteristics are spe
ed and reliability.
7. Which of the following is not an example of functional performance benchmarking?
a) Employee net promoter score

b) Number of managers in organization
c) Staff engagement surveys
d) Brand awareness
Answer: b
Explanation: Employee net promoter score and staff engagement surveys are examples of functional performance be
nchmarking that can be used during HR team performance benchmarking. Similarly, measuring net promoter score o
r brand awareness can be used during marketing team performance benchmarking.
8. Revenue growth and customer satisfaction can be assessed through _______
a) Performance benchmarking
b) Process benchmarking
c) Strategic benchmarking
d) Poka Yoke
Answer: a
Explanation: Revenue growth and customer satisfaction can be assessed through performance benchmarking. The ot
her important types of benchmarking are process benchmarking and strategic benchmarking.
1. What does FMEA stand for?
a) Failure Modes and Effects Analysis

b) Failure Modes and Effective Analysis
c) Failure Modes and Affective Analysis
d) Failure Modes and Efficient Analysis
Answer: a
Explanation: FMEA stands for Failure Modes and Effects Analysis. It is also known as risk analysis. It displays syst
ematically the causes, effects, and possible actions regarding observed failures.
2. To anticipate failures and prevent them from happening is the objective of FMEA.
a) True
b) False
Answer: a
Explanation: To anticipate failures and prevent them from happening is the objective of FMEA. FMEA lists down th
e failures, their causes, their effects, and possible recommended actions regarding the observed failures.
3. What is RPN?
a) Risk Potential Number

b) Risk Priority Number
c) Risk Preference number
d) Risk Preventive Number
Answer: b
Explanation: RPN stands for the Risk Priority Number. Items with high RPN require additional quality planning acti
on. It is the product of Severity, Occurrence and Detection rankings.
4. The analysis of potential failures of product or service due to component or subsystem unreliability is involved in
design FMEA.
a) True
b) False
Answer: a
Explanation: The analysis of potential failures of product or service due to component or subsystem unreliability is i
nvolved in design FMEA. Design FMEA and Process FMEA are the two broad categories of FMEA.
5. Find the odd one out related to the FMEA team.
a) Assembly engineer
b) Manufacturing engineer
c) Quality engineer
d) Process variability data
Answer: d
Explanation: Assembly engineer, manufacturing engineer, and quality engineer are important members of the FME
A team. The other important members of the FMEA team are the Materials engineer, Service engineer, suppliers, an
d the customers.
6. Find the odd one out related to the data inputs required to prepare FMEA.
a) Product and process specifications

b) Reliability data
c) Customer priority data
d) Quality engineer
Answer: d
Explanation: Product and process specifications, reliability data, and customer priority data are important data inputs
to prepare FMEA. The other important data inputs to prepare FMEA are process variability data, process descriptio
ns, and inspection data.
7. Which of the following is not a benefit of FMEA?
a) Increase in customer satisfaction

b) Prioritize product/process deficiencies
c) Maximize late changes and associated cost
d) Document and track actions taken to reduce risk
Answer: c
Explanation: Increased customer satisfaction, Prioritization of product/process deficiencies, and documentation and t
racking of the actions taken to reduce risk are some of the important benefits of FMEA. It leads to minimization of l
ate changes and associated cost.
8. A particular product has been given the following rankings for calculating RPN while preparing FMEA chart, S=
10, O=2, D=2. What is the value of RPN?
a) 20
b) 10
c) 40
d) 2 i) Specifyingthe possibilities
Answer: c
Explanation: The RPN is the product of Severity, Occurrence and Detection rankings. Therefore, RPN=S*O*D, or
RPN=10*2*2=40.
9. There are four stages of FMEA.
a) i),ii),iii),iv)
b) i),ii),iv),iii)
c) iv),iii),i),ii)
d) iv),iii),ii),i)
Answer: a
Explanation: The correct order of proceeding is by first specifying possibilities. It is followed by quantification of ris
k. Correcting high risk causes and re-evaluation of risk follows next. The re-evaluation of risk involves the recalcula
tion of the risk priority number (RPN).
10. According to common industry scale, what does severity ranking (S) 1 indicate?
a) Very serious effect

b) No effect
c) Sometimes serious effect
d) The value doesn’t exist
Answer: b
Explanation: According to common industry scale, the severity ranking 1 indicates no effect. The ranking 10 indicat
es a very serious effect. The severity ranking (S) helps engineers to identify the failures which need high priority.
11. According to common industry scale, what does occurrence ranking (O) 1 indicate?
a) Not likely
b) Highly likely
c) Certain to happen
d) The value doesn’t exist
Answer: a
Explanation: According to common industry scale, the occurrence ranking 1 indicates not likely and ranking 10 indi
cates certain to happen. The occurrence ranking (O) helps engineers to find the probability that the specific cause/me
chanism will occur.
12. According to common industry scale, what does detection ranking (

d) 1 indicate?
a) Can’t be determined
b) Uncertainty in detection
c) The value doesn’t exist
d) Certainly detectable
Answer: d
Explanation: According to common industry scale, the detection ranking (
d) 1 indicates the certainly detectable ranking and ranking 10 indicates the uncertainty in detection. It helps engineer
s rely on the current control measures to detect the likelihood of occurrence of the given failure mode.
1. Information is processed data.
a) True
b) False
Answer: a
Explanation: Information is processed data. Data are raw observations that are collected randomly. Information is m
eaningful data and is presented in an ordered manner.
2. Discrete data is also known as ________
a) Continuous data
b) Disputed data
c) Variable data
d) Attribute data
Answer: d
Explanation: Discrete data is also known as Attribute data. They are countable in nature. For example, the number of
defective products in a production cycle is an example of attribute data.
3. Number of scrap items in a factory is _______
a) Continuous data
b) Disputed data
c) Discrete data
d) Variable data
Answer: c
Explanation: Number of scrap items in a factory is discrete data. It can be counted and given a number, for example
36 or 45. It is not a specified number. Discrete data is also known as Attribute data.
4. Variable data is also known as ______
a) Continuous data
b) Disputed data
c) Discrete data
d) Attribute data
Answer: a
Explanation: Variable data is also known as continuous data. Lengths, width, height of an object are examples of var
iable data. They are gathered by taking actual measurements.
5. The data set for measuring length of an object which is 50 cm includes five readings which are 40 cm, 40 cm, 41
cm, 40.5 cm, and 41 cm. What can be the conclusion made by this study?
a) Data is precise and accurate

b) Data is precise but not accurate
c) Data is neither precise nor accurate
d) Data is not precise but accurate
Answer: b
Explanation: As the data set has values which are close to each other, the data set is precise. But it is not accurate as
the target value is 50 cm and there is a huge difference between data set values and the target value.
6. The data set for measuring width of an object which is 50 cm includes five readings which are 49.5 cm, 49.5 cm,
50.5 cm, 50.3 cm, and 49.7 cm. What can be the conclusion made by this study?

Answer: a
Explanation: As the data set values are close to target value therefore the data set is both accurate and precise. Precis
ion is closeness of the data set values to each other and accuracy is the closeness of the data set values to the chosen
target value.
7. The data set for measuring height of an object which is 80 cm includes five readings which are 40.5 cm, 81 cm, 7
2 cm, 48 cm, 50 cm. What can be the conclusion made by this study?

Answer: c
Explanation: The data set values are neither close to each other nor are they close to the chosen target value (80 cm).
Therefore, the data set values are neither accurate nor precise.
8. If the diameter of a shaft is measured as 60 mm, 62 mm, 63 mm, 61 mm, 60 mm. What is the mean diameter that
can be considered for calculation?
a) 61.1 mm
b) 61.2 mm
c) 61.3 mm
d) 61.4 mm
Answer: b
Explanation: The mean is calculated as the sum of observed values divided by the number of observed values. The s
um of the observed values is 306. The number of observed values is 5. Therefore, the mean diameter of the shaft is 3
06/5=61.2 mm.
9. Which of the following is not a measure of central tendency?
a) Range
b) Mean
c) Median
d) Mode
Answer: a
Explanation: Mean, median, and mode are the three measures of central tendency. They describe the centre values of
the observed data. Mean is also known as arithmetic average.
10. Which of the following is not a measure of dispersion?
a) Range
b) Mean deviation
c) Mean
d) Standard deviation
Answer: c
Explanation: The mean is not a measure of dispersion. Mean is a measure of central tendency. Measures of dispersio
n are also known as measures of precision. The spread of the observations around the centre is termed as dispersion.
11. The peak of a curve is located at (4,4). Four students located the peak of the curve to be at (3,4), (5,4), (4,3), and
(4,5). What can be the conclusion made by this study?

Answer: d
Explanation: As the students located the peak of the curve near to the point (4,4) which is the ideal target value, the
data set is uniform. But the values of the peak of the curve for any one student is not close to his/her friends, hence t
he data set is not precise.
12. If the diameter of a shaft is measured as 80 mm, 81 mm, 82 mm, 83 mm, 84 mm. What is the median of the obse
rved values?
a) 80 mm
b) 81 mm
c) 84 mm
d) 82 mm
Answer: d
Explanation: The diameter of the shaft is measured as 80 mm, 81 mm, 82 mm, 83 mm, 84 mm. The number of obser
vations is odd (5). The median is ((5+1)/2)th value. Therefore, the median is 82 mm.
13. If the diameter of a shaft is measured as 80 mm, 81 mm, 82 mm, 83 mm, 84 mm, 85 mm. What is the median of
the observed values?
a) 80 mm
b) 81 mm
c) 84 mm
d) 82.5 mm
Answer: d
Explanation: The diameter of a shaft is measured as 80 mm, 81 mm, 82 mm, 83 mm, 84 mm, 85 mm. The number of
observations is even (6). The median is the average of (6/2)th and ((6/2)+1)th value. Therefore, the median is avera
ge of 82 mm and 83 mm, which is 82.5 mm.
14. If the observed diameter of a shaft is 20 mm, 21 mm, 23 mm, 22.5 mm, 24 mm. What is the mode of the observe
d data?
a) 21 mm
b) There is no mode
c) 22.5 mm
d) 20 mm
Answer: b
Explanation: The observed diameter of a shaft is 20 mm, 21 mm, 23 mm, 22.5 mm, 24 mm. As all the values occur
once, there is no mode in the observed data set values. Mode is defined as the value which occurs most the number o
f times.
15. The height of a tank measured by five engineers is 5 m, 4 m, 4.5 m , 4.5 m, 5 m. What is the mode of the calculat
ed values?
a) 4.5 m
b) 4 m
c) 5 m
d) 4.5 m and 5 m
Answer: d
Explanation: The height of a tank measured by five engineers is 5 m, 4 m, 4.5 m, 4.5 m, 5 m. The mode of the calcul
ated values is 4.5 m and 5 m. It is bimodal as it has two modes.
1. Measures of precision are also known as ___________

a) Measures of central tendency
b) Measures of dispersion
c) Measures of accuracy
d) Measures of statistics
Answer: b
Explanation: Measures of precision are also known as measures of dispersion. They determine the spread of the obse
rvations around the center. Range, mean deviation and standard deviation are the three measures of dispersion.
2. For symmetrical distribution, mean=median=mode.
a) True
b) False
Answer: a
Explanation: For symmetrical distribution, mean=median=mode. For asymmetrical distribution, mode=3*median-2*
mean. So, if two parameters are known, the third one can be evaluated.
3. Given for an asymmetrical distribution, median=20, mean=22, what is the mode?
a) 12
b) 14
c) 16
d) 18
Answer: c
Explanation: For an asymmetrical distribution, mode=3*median-2*mean. Here, median=20 and mean=22. So, mode
= 3(20)-2(22)=60-44=16.
4. Find the range of the following observations: 1,2,4,7,8,13.
a) 11
b) 12
c) 13
d) 14
Answer: b
Explanation: Range is the difference between the highest and lowest observation in a series. Here, the highest observ
ation is 13 and the lowest observation is 1. So, range=13-1=12.
5. What is the mean deviation from the mean of the following observation:9,9,2,3,6,9,4?
a) 2.50
b) 2.62
c) 2.40
d) 2.57
Answer: d
Explanation: The mean of the given observation is (9+9+2+3+6+9+4)/7=6. Mean deviation from mean = (|6-9|+|6-9|
+|6-2|+|6-3|+|6-6|+|6-9|+|6-4|)/7 = (3+3+4+3+0+3+2)/7=2.57.
6. The square of the standard deviation is variance.
a) True
b) False
Answer: a
Explanation: The square of the standard deviation is variance. For example, if the variance of a given set of observat
ions is 66.2, the standard deviation would be \\(\\sqrt{66.2}\\)=8.13.
7. The standard deviation is 110 and the mean is 770. What is the coefficient of variation?
a) 15
b) 14.29
c) 13.37
d) 12
Answer: b
Explanation: The coefficient of variation is given by (SD/mean)*100. So, the coefficient of variation, in this case, is
(110/770)*100 = 14.29.
8. If the coefficient of variation of a data set A is 40 and for data set B it is 60, which data set is more consistent?
a) Data set A
b) Data set B
c) Both are equally consistent
d) Neither of them is consistent
Answer: a
Explanation: The coefficient of variation represents the variability of a given set of observations. Therefore, the data
set with less coefficient of variation is more consistent. Hence, data set A is more consistent compared to data set B.
9. If the variance of the data 2, 4, 5, 6, 8, 17 is 23.33. Then, what is the variance of 4, 8, 10, 12, 16, 34?
a) 40
b) 42.55
c) 46.66
d) 49
Answer: c
Explanation: When each observation in a given data set is multiplied by a constant, the variable also gets multiplied
by the same constant. Here, the constant=2 and the original variance is 23.33. The new variance is 23.33*2=46.66.
10. A set of observations x1, x2, x3, x4, has a standard deviation = 6. Each of these observations is added with a con
stant k. What is the new standard deviation?
a) 10
b) 8
c) 6
d) 4
Answer: c
Explanation: When each observation of a given data set is increased by a constant k, the standard deviation remains
unchanged. Hence, the standard deviation is 6.
1. ‘Random causes of variations’ in any manufacturing process are inevitable.
a) True
b) False
Answer: a
Explanation: ‘Random causes of variations’ in any manufacturing process are inevitable. They are also known as ‘co
mmon causes of variations’ of a manufacturing process. Yet another name is ‘chance causes of variations’.
2. Which of the following is not a factor that affects the occurrence of ‘random causes of variation’ in any manufact
uring process?
a) Human variability
b) Minor variations in raw materials
c) Working conditions fluctuations
d) Differences among machines
Answer: d
Explanation: Human variability from one operation cycle to another, minor variations in raw materials, and fluctuati
ons in working conditions are some of the factors that affect the occurrence of ‘random causes of variation’. Lack of
adequate supervision skills can also be a factor affecting the occurrence of ‘random causes of variation’.
3. ‘Assignment causes of variation’ of any manufacturing process are also known as _______
a) Random causes of variations

b) Common causes of variations
c) Chance causes of variations
d) Special causes of variations
Answer: d
Explanation: ‘Assignment causes of variation’ of any manufacturing process are also known as ‘special causes of va
riations’. The other type of variation in any manufacturing process is known as ‘chance causes of variation’.
4. ‘Assignment cause of variation’ in any manufacturing process can be easily traced and detected.
a) True
b) False
Answer: a
Explanation: ‘Assignment cause of variation’ in any manufacturing process can be easily traced and detected. Also, t
hey are larger in magnitude. It is important to trace and eliminate them to keep the process statistically in-control.
5. A stable process in any manufacturing process exhibits only ______
a) Assignable causes of variations

b) Special causes of variations
c) Chance cause of variations
d) A stable process cannot be predicted
Answer: c
Explanation: A stable process in any manufacturing process exhibits only ‘chance causes of variation’. ‘Random cau
ses of variations’ and ‘common causes of variations’ are other names given to ‘chance causes of variations’.
6. Let the X-axis and Y-axis represent sample numbers and any quality characteristic value respectively. What does t
he ‘green color data point’ represent?
a) Out-of-control sample value

b) In-control sample value
c) Minimum sample value
d) Mean sample value
Answer: a
Explanation: The ‘green color data point’ represents an out-of-control sample value. The control chart is utilized to c
heck whether the process is in-control or not. It is useful in eliminating the ‘assignable causes of variations’ in any m
anufacturing process.
7. The x̅-charts and R-charts monitor ____ and ____ of any manufacturing process.
a) Precision, accuracy
b) Accuracy, precision
c) Variation, accuracy
d) Precision, variation
Answer: b
Explanation: The x̅-charts and R-charts monitor accuracy and precision of any manufacturing process. The s-charts
monitor the variation of the manufacturing process.
8. The x̅-charts and R-charts are also known as ________ and _______ respectively.
a) average-charts, range-charts
b) median-charts, average-charts
c) range-charts, median-charts
d) median-charts, range-charts
Answer: a
Explanation: The x̅-charts and R-charts are also known as average-charts and range-charts respectively. The s-charts
are also known as the standard deviation-charts.
1. In the jargon of statistical process control, USL and LSL are known as _______ and _____ respectively.
a) Upper specification limit, Lower specification limit

b) Upper specification limit, Limit specification limit
c) Up specification limit, Limit specification limit
d) Up specification limit, Lower specification limit
Answer: a
Explanation: In the jargon of statistical process control, USL and LSL are known as Upper specification limit and L
ower specification limit respectively. Specification limits are usually determined from customer requirements.
2. Specification limits are also known as ________ of the product.
a) Mode
b) Median
c) Tolerances
d) Allowances
Answer: c
Explanation: Specification limits are also known as tolerances of the product. There are two types of specification li
mits known as upper specification limit and lower specification limit.
3. If a product falls in the range of USL-LSL then it is meeting the expectation of the customer.
a) True
b) False
Answer: a
Explanation: If a product falls in the range of USL-LSL then it is meeting the expectation of the customer. Specificat
ion limits are also known as the tolerance of the product. There is not much we can do about the specification limits
but we can monitor the control limits.
4. Tolerance limits are the voice of the customer.
a) True
b) False
Answer: a
Explanation: Tolerance limits are the voice of the customer. While the control limits are the voice of the process. Sp
ecification limits are defined by the customer while the control limits are calculated from data.
5. Natural tolerance is also known as _______
a) Specification limits
b) Control limit
c) Process capability
d) Mean
Answer: c
Explanation: Natural tolerance is also known as process capability. Process capability is also known as 6σ. It compar
es process output with customer specification limits.
6. The upper specification limit of a product is 20.05 mm and the lower specification limit of the same product is 19.
95 mm. The standard deviation is 0.25 mm. What is the value of the process capability index Cp?
a) 0.0424
b) 0.8324
c) 0.0234
d) 0.0667
Answer: d
Explanation: The process capability index Cp is given by the formula Cp=(USL-LSL)/6σ. So, Cp=(20.05-19.95)/(6*
0.25)=0.0667. It is widely utilized in product design phase and pilot production phase.
7. What is the interpretation of Cp>1?
a) The process cannot meet the specification

b) The process will meet the specification
c) The process is just meeting the specification
d) No interpretation is possible i) The process will meet the specification
Answer: b
Explanation: The interpretation of Cp>1 is that the process will meet the specification. The numerator shows the spe
cification limits determined from the customer and the denominator is the process capability. The ratio, greater than
1 implies that process capability lies within the specification limits.
8. Find the correct order of matching from the option given below.
a) A-i, B-ii, C-iii

b) A-i, B-iii, C-ii
c) A-ii, B-i, C-iii
d) A-ii, B-iii, C-i
Answer: a
Explanation: The correct order of matching is given by option a). Larger the value of process capability index, better
is the quality. The Process Capability needs to improve and realistic Specification Limits must be set.
9. What is the interpretation of Cpk=Cp?
a) The process is out of control

b) The process is customer-centric
c) The process is centered
d) The process is costly
Answer: c
Explanation: The interpretation of Cpk=Cp is that the process is centered. In addition to this, the value of Cpk is alw
ays less than or equal to Cp.

1. The control chart that determines the fraction of rejected parts as non-conforming is ______
a) R-chart
b) S-chart
c) P-chart
d) C-chart
Answer: c
Explanation: The control chart that determines the fraction of rejected parts as non-conforming is P-chart. It belongs
to the category of control charts for attributes.
2. The total number of parts in ten samples of equal size is 1200. What is the average sample size?
a) 120
b) 12
c) 1.2
d) 1200
Answer: a
Explanation: The total number of parts in ten samples of equal size is 1200. The average sample size is 1200/10=120
. It is useful in calculating the control limits.
3. The total number of defect count is 200 and the total number of parts in ten samples of equal size is 1500. What is
the fraction defective?
a) 0.131
b) 0.134
c) 0.137
d) 0.140
Answer: b
Explanation: The total number of defect count is 200 and the total number of parts in ten samples of equal size is 15
00. The fraction defective is calculated as 200/1500 = 0.134.
4. The p-chart is used when subgroup size is variable.
a) True
b) False
Answer: a
Explanation: The p-chart is used when subgroup size is variable. The np chart is used when the subgroup size is con
stant. The np chart is preferred because it saves time in the calculation for each subgroup.
5. The control chart for defects is called as _______
a) R-chart
b) S-chart
c) P-chart
d) C-chart
Answer: d
Explanation: The control chart for defects is called as C-chart. It records the number of defects in the sample. It is an
important control chart for attributes.
6. What is the basis for C-chart?
a) Normal distribution
b) Poisson distribution
c) Weibull distribution
d) Exponential distribution
Answer: b
Explanation: The basis for C-chart is the Poisson distribution. C-chart counts the number of defects in the sample. H
ere, the letter ‘C’ refers to ‘count’.
7. When the subgroup size varies from one sample to another, U-chart is used.
a) True
b) False
Answer: a
Explanation: When the subgroup size varies from one sample to another, U-chart is used. It controls the number of d
efects per unit. It is an important control chart for attributes.
8. The control chart that measures the number of non-conformities is ____ and the one that measures the number of
non-conformities per unit is ______
a) R-chart, S-chart
b) C-chart, U-chart
c) P-chart, R-chart
d) R-chart, P-chart
Answer: b
Explanation: The control chart that measures the number of non-conformities is C-chart and the one that measures th
e number of non-conformities per unit is U-chart. Both of them are important control charts for attributes along with
P-chart and NP-chart.
1. Who is considered to be the father of Six Sigma?
a) Bill Smith
b) Deming
c) Crosby
d) Taguchi
Answer: a
Explanation: Bill Smith is considered the father of Six Sigma. He was an engineer at Motorola. Motorola was one a
mongst the first company to win the Malcolm Baldrige National Quality Award.
2. The process of Six Sigma allows only 3.4 defects per million opportunities.
a) True
b) False
Answer: a
Explanation: Six Sigma allows only 3.4 defects per million opportunities. Major companies like Motorola and Gener
al Electric have successfully implemented Six Sigma.
3. DPMO stands for ______
a) Defects per meter opportunities

b) Defects per million opportunities
c) Defects per month of opportunities
d) Defects per millimeter of opportunities
Answer: b
Explanation: DPMO stands for defects per million opportunities. The objective of Six Sigma is to approach zero def
ects and allows only 3.4 defects per million opportunities.
4. Which of the following is not an advantage of using Six Sigma?
a) Process improvement
b) Product improvement
c) Defect reduction
d) A decrease in customer satisfaction
Answer: d
Explanation: Process improvement and product improvement are the direct benefits of incorporating Six Sigma. Thi
s leads to a reduction in defects and improves customer satisfaction.
5. The combination of Six Sigma and lean manufacturing is known as ______
a) Lean Sigma
b) Lean Two Sigma
c) Lean Six Sigma
d) Lean Three Sigma
Answer: c
Explanation: The combination of Six Sigma and lean manufacturing is known as Lean Six Sigma. It is a combinatio
n of two continuous improvement methods.
6. What is the percentage accuracy in the six sigma process?
a) 99.8%
b) 99.1%
c) 99.05%
d) 99.99966%
Answer: d
Explanation: The percentage accuracy in the six sigma process is 99.99966%. The six sigma process allows only 3.4
defects per million opportunities.
7. In which among the following is the Six Sigma process not applicable?
a) Healthcare
b) Business administration
c) Selecting the best employee of the year
d) Supply Chain
Answer: c
Explanation: The six sigma process is applicable in healthcare, business administration, supply chain and in many ot
her industrial sectors. The process of six sigma was pioneered by Bill Smith.
8. Which of the following is not a six sigma belt level ranking?
a) Yellow Belt
b) Pink Belt
c) Green Belt
d) Black Belt
Answer: b
Explanation: The Yellow Belt, Green Belt, and Black Belt are different six sigma belt level rankings. The Master Bl
ack Belt is also a six sigma belt level ranking.

1. Six Sigma follows the DMAIC model.
a) True
b) False
Answer: a
Explanation: Six Sigma follows the DMAIC model. D stands for Define, M stands for Measure, A stands for Analyz
e, I stands for Improve, C stands for Control.
2. Which of the following is not part of the ‘Define’ activity in the DMAIC Model of Six Sigma?
a) Identification of project
b) Identification of champion
c) Identification of project owner
d) Identification of founder of the business
Answer: d
Explanation: The identification of the project, the identification of the champion, the identification of project owners
are major activities involved in ‘Define’ activity in the DMAIC Model of Six Sigma. The founder of the business, if
he/she is heading the business responsibility, also is an integral part of the ‘Define’ activity.
3. Which of the following does not belong to the ‘Define’ activity in the DMAIC Model of Six Sigma?
a) Determination of customer requirements

b) Determination of CTQs
c) Validating the measurements
d) Mapping the process
Answer: c
Explanation: Determination of customer requirements, Determination of CTQs, and Mapping the process are import
ant activities that belong to the ‘Define’ activity in the DMAIC Model of Six Sigma. Validating the measurements is
a ‘Measure’ activity.
4. Defining the problem, objective, goals, and benefits belong to the ‘Define’ activity in the DMAIC Model of Six S
igma.
a) True
b) False
Answer: a
Explanation: Defining the problem, objective, goals, and benefits belong to the ‘Define’ activity in the DMAIC Mod
el of Six Sigma. Apart from these, defining stakeholder/resource analysis is also an integral activity of the ‘Define’ a
ctivity in the DMAIC Model of Six Sigma.
5. Which of the following is not a tool used in the ‘Define’ process in the DMAIC Model of Six Sigma?
a) Project charter and plan

b) Check sheet
c) Effort/impact analysis
d) Process mapping
Answer: b
Explanation: Project charter and plan, Effort/impact analysis, and process mapping are the tools used in the ‘Define’
process in the DMAIC Model of Six Sigma. In addition to this, tree diagram is also used in the ‘Define’ process in t
he DMAIC Model of Six Sigma.
6. Which of the following is not a tool used in the ‘Measure’ process in the DMAIC Model of Six Sigma?
a) Quality Function Deployment

b) Measurement Systems Analysis
c) Process capability
d) Tree diagram
Answer: d
Explanation: Quality Function Deployment, Measurement Systems Analysis, and Process capability are the tools use
d in the ‘Measure’ process in the DMAIC Model of Six Sigma. In addition to this, check sheet is also used in the ‘M
easure’ process in the DMAIC Model of Six Sigma.
7. Which of the following is not part of the ‘Measure’ activity in the DMAIC Model of Six Sigma?
a) Determining operational definitions

b) Establishing performance standards
c) Developing the project plan
d) Developing data collection and sample plan
Answer: c
Explanation: Determining operational definitions, establishing performance standards, and developing data collectio
n and sample plans are major activities involved in ‘Measure’ activity in the DMAIC Model of Six Sigma. In additio
n to this, validating the measurements is also an important ‘Measure’ activity.
8. Which of the following is not a tool used in the ‘Analyze’ process in the DMAIC Model of Six Sigma?
a) Quality Function Deployment

b) Histogram
c) Pareto Diagram
d) Run chart
Answer: a
Explanation: Histogram, Pareto Diagram, and Run chart are important tools used in the ‘Analyze’ process of the D
MAIC Model of Six Sigma. In addition to this, the scatter graph and statistical analysis of data are also important to
ols used in the ‘Analyze’ process of the DMAIC Model of Six Sigma.
9. Which of the following is not part of the ‘Improve’ activity in the DMAIC Model of Six Sigma?
a) Determination of solution effectiveness using data

b) Implementing solution
c) Developing solution alternatives
d) Closing project and communicating results
Answer: d
Explanation: Determination of solution effectiveness using data, Implementing solution, and Developing solution alt
ernatives are integral activities of the ‘Improve’ activity in the DMAIC Model of Six Sigma. Closing project and co
mmunicating results are part of the ‘Control’ activity in the DMAIC Model of Six Sigma.
10. Which of the following is not a tool used in the ‘Improve’ process in the DMAIC Model of Six Sigma?
a) Design of Experiments
b) Brainstorming
c) Statistical Process Control
d) Failure Mode Effect Analysis
Answer: c
Explanation: Design of Experiments, Brainstorming, and Failure Mode Effect Analysis are important tools used in t
he ‘Improve’ process in the DMAIC Model of Six Sigma. Statistical Process Control is used as a tool in the ‘Control
’ process in the DMAIC Model of Six Sigma.
11. What does the letter ‘D’ and ‘V’ refer to in the DMADV model?
a) Data, Verify
b) Design, Validate
c) Data, Validate
d) Design, Verify
Answer: d
Explanation: The letters ‘D’ and ‘V’ refer to ‘Design’ and ‘Verify’ in the DMADV model. It is the application of six
sigma on a new process/product.
12. OCAP refers to ________
a) On Control Action Plan

b) Out of Control Action Plan
c) Out of Concern Action Plan
d) Out of Control Assessment Plan
Answer: b
Explanation: OCAP refers to the Out of Control Action Plan. It is an important tool used in the ‘Control’ process use
d in the DMAIC Model of Six Sigma.
13. The Six Sigma model used for improving the existing process/product is _______
a) DMAIC
b) DMAAD
c) DMADV
d) DMAAX
Answer: a
Explanation: The Six Sigma model used for improving the existing process/product is DMAIC. The DMADV model
is used for the new process/product.
1. The approach of QFD in product design leads to customer-driven products.
a) True
b) False
Answer: a
Explanation: The approach of QFD in product design leads to customer-driven products (processes or services) as it
is a customer-centric approach. QFD means Quality Function Deployment.
2. QFD has a complete focus on the ‘voice of the customer’?
a) True
b) False
Answer: a
Explanation: QFD has a complete focus on the ‘voice of the customer’. The idea conceptualization and the product d
esign using the QFD approach translate customer requirements into the products that are delivered to the customers.
QFD is also quintessential to the service industry nowadays.
3. Which of the following is not a technique used to capture customer requirements for the QFD approach?
a) Market surveys
b) Customer surveys
c) Cash receipt
d) Customer complaints
Answer: c
Explanation: Market surveys, customer surveys, and customer requirements are various techniques used to capture c
ustomer requirements for the QFD approach. In addition to this, direct discussions or interviews are also techniques
that are commonly used to get insights into customer requirements.
4. Which tool is used to break down the complex customer needs into key customer needs in QFD approach?
a) Voice of customers
b) Affinity diagram
c) Poka Yoke
d) 5S
Answer: b
Explanation: Affinity diagram is used quite often to break down the complex customer needs into key customer need
s in the QFD approach. Both ‘spoken’ customer needs and ‘unspoken’ customer needs are then planned into action b
y the planning team.
5. HOQ refers to _________
a) Headquarters
b) High Quality
c) House of Quality
d) Head of Quality
Answer: c
Explanation: HOQ refers to the House of Quality. It is a primary planning tool used in the QFD approach. It convert
s the voice of the customer into product design characteristics.
6. What does the relationship matrix in the House of Quality represent?
a) Correlation between customer requirements and technical descriptors

b) Correlation between good and bad customers
c) Correlation between the organization’s profit and loss
d) Correlation between good and bad investors
Answer: a
Explanation: The relationship matrix in the House of Quality represents the correlation between customer requireme
nts and technical descriptors. It lies at the center of the House of Quality.
7. Which of the following is not an item included in the prioritized customer requirements in the House of Quality?
a) Customer importance rating

b) Customer benchmarking
c) Sales point
d) Technical benchmarking
Answer: d
Explanation: The customer importance rating, customer benchmarking, and sales point are some of the items include
d in the prioritized customer requirements in the House of Quality. Some of the other items included are scale-up-fac
tor, target value.
8. The interrelationship between technical descriptors in the House of Quality is given by _____
a) Relationship matrix
b) Trade-off matrix
c) Customer matrix
d) Customer requirement matrix
Answer: b
Explanation: The interrelationship between technical descriptors in the House of Quality is given by the trade-off ma
trix. Similar and/or conflicting technical descriptors are identified.
9. The technical descriptors are the ________
a) Voice of the customer

b) Voice of the manager
c) Voice of the owner
d) Voice of the organization
Answer: d
Explanation: The technical descriptors are the voice of the organization. They are formulated by the organization bas
ed on the ‘voice of the customer’.
10. In which part of the House of Quality ‘product design characteristics’ can be located?
a) Customer requirements
b) Prioritized customer requirements
c) Technical descriptors
d) Prioritized technical descriptors
Answer: c
Explanation: The product design characteristics can be located in the ceiling which contains the technical descriptors
. The technical descriptors are the voice of the organization.
11. In which part of the House of Quality ‘degree of technical difficulty’ can be located?
a) Customer requirements
b) Prioritized customer requirements
c) Technical descriptors
d) Prioritized technical descriptors
Answer: d
Explanation: The degree of technical difficulty can be located in the portion containing the prioritized technical desc
riptors. The other items included are the technical benchmarking and target value.
1. Which of the following is not an example of customer requirements in the ‘House of Quality’?
a) Reasonable cost
b) Corrosion-resistant
c) Durable
d) Sand casting
Answer: d
Explanation: Reasonable cost, corrosion-resistant, and durability are examples of customer requirements in the ‘Hou
se of Quality’. Sand casting is an example of a ‘technical descriptor’.
2. The desire for a lightweight product is an example of customer requirements in the House of Quality.
a) True
b) False
Answer: a
Explanation: The desire for a lightweight product is an example of customer requirements in the House of Quality. It
may be desired because the product can then be carried without much work input.
3. Which of the following is not an example of a ‘technical descriptor’ in House of Quality?

a) Sand casting
b) Investment casting
c) Reasonable cost
d) Die casting
Answer: c
Explanation: Sand casting, investment casting, and die casting are examples of ‘technical descriptors’ in the House o
f Quality. These in particular refer to the type of manufacturing process that could be chosen based on the customer r
equirements. Reasonable cost is a customer requirement.
4. ‘Performance’ and ‘aesthetics’ in the House of Quality fall under the category of ________
a) Technical descriptors
b) Customer requirements
c) Relationship matrix
d) Poka Yoke
Answer: b
Explanation: Performance and aesthetics fall under the category of customer requirements in the House of Quality. S
ome of the performance characteristics are lightweight, strength, durability. Some of the aesthetics characteristics ar
e nice finish and aerodynamic look.
5. ‘Material selection’ and ‘manufacturing process’ in the House of Quality fall under the category of ______
d) 5S
Answer: a
Explanation: ‘Material selection’ and ‘manufacturing process’ in the House of Quality fall under the category of tec
hnical descriptors. These are preceded by customer requirements and often followed by a relationship matrix.
6. The categorization of the relationship between customer requirements and technical descriptors as strong, medium
or weak in a House of Quality is done in the ______
b) Interrelationship matrix
d) 5S
Answer: c
Explanation: The categorization of the relationship between customer requirements and technical descriptors as stro
ng, medium, or weak in a House of Quality is done in the relationship matrix. Sometimes assignment scores are also
added to quantify the relation.
7. Which of the following is an unjustifiable customer requirement for the new product design of a toy product for c
hildren?
a) Reasonable cost
b) Lightweight
c) Good taste
d) Stimulate imagination
Answer: c
Explanation: Reasonable cost, lightweight, and the need to stimulate imagination are justifiable customer requireme
nts for the new product design of a toy product for children. Good to taste sounds odd here and can be associated wit
h any food item’s House of Quality.
8. Which of the following is an unjustifiable customer requirement for the House of Quality of a Pizza?
a) Good texture
b) Aerodynamic look
c) Fresh and hot delivery
d) Low fats
Answer: b
Explanation: Good texture, fresh and hot delivery, and low fats are justifiable customer requirements for the House o
f Quality of a pizza. An aerodynamic look can be associated with a mechanical machine or device.
9. The task of choosing between steel, aluminum, and titanium for a product in a House of Quality falls under the pu
rview of ______
d) Benchmarking
Answer: a
Explanation: The task of choosing between steel, aluminum, and titanium for a product falls under the purview of te
chnical descriptors. This task is technically known as the material selection process.
10. The task of choosing between forging, casting, and powder metallurgy for a product in a House of Quality falls u
nder the purview of _____
a) Production
b) Technical descriptors
d) Benchmarking
Answer: b
Explanation: The task of choosing between forging, casting, and powder metallurgy for a product in a House of Qua
lity falls under the purview of technical descriptors. This task is technically known as the selection of the manufactur
ing process.
11. The two types of competitive assessment performed in a House of Quality are customer assessment and technica
l assessment.
a) True
b) False
Answer: a
Explanation: The two types of competitive assessment performed in a House of Quality are customer assessment an
d technical assessment. In these, the product is compared with competitor’s product to gain insights regarding the str
ong and weak points related to the product.
1. The product planning phase of product development using the QFD process begins with the customer requirement
s.
a) True
b) False
Answer: a
Explanation: The product planning phase of product development using the QFD process begins with the customer r
equirements. The other phases involved are part development, process planning, and production planning.
2. The product planning phase of product development using the QFD process is actually the steps involved in buildi
ng the house of quality.
a) True
b) False
Answer: a
Explanation: The product planning phase of product development using the QFD process is actually the steps involv
ed in building the house of quality. It involves customer requirements, technical descriptors, relationship matrix, inte
rrelationship matrix, competitive assessments, prioritized customer requirements, and prioritized technical descriptor
s.
3. Which of the following is not a task performed under the ‘part development’ phase in the QFD process?
a) Deployment of the QFD process down to sub-components level

b) Deployment of the component deployment chart
c) Relating the critical sub-component control characteristics
d) Discovering customer requirements
Answer: d
Explanation: Deployment of the QFD process down to sub-components level both in terms of requirements and char
acteristics, deployment of the component deployment chart, and relating the critical sub-component control characte
ristics are tasks performed under the ‘part development’ phase in the QFD process. The list of customer requirement
s is studied under the ‘product planning’ phase.
4. Which of the following statement is incorrect related to the QFD process?
a) Improves customer satisfaction

b) Promotes teamwork
c) Demotes better understanding of customer demands
d) Focuses on the design efforts
Answer: c
Explanation: Improving customer satisfaction by focusing on the design efforts after studying the customer requirem
ents through teamwork are the essential characteristics of QFD. It leads to a better understanding of customer deman
ds.
5. Which of the following is an incorrect statement related to the QFD process?
a) A better understanding of design interactions

b) Breaks down the barrier between functions and departments
c) Better documentation of the design and development process
d) Maximizes the number of engineering changes
Answer: d
Explanation: The QFD process leads to a better understanding of design interactions by breaking down the barrier b
etween functions and departments. As a result, better documentation of the design and development process occurs.
It reduces the number of engineering changes required in the later stages.
6. Which of the following is not a tangible benefit of the QFD process?
a) Reduction in start-up and engineering cost

b) Increase of overall costs
c) Reduction in development time
d) Early identification of high-risk areas
Answer: b
Explanation: Reduction in start-up and engineering cost, reduction in development time, and early identification of h
igh-risk areas are the tangible benefits of the QFD process. In fact, there is a reduction in overall costs of design and
manufacture.
7. The use of QFD process leads to _____ efficient allocation of resources.
a) Less
b) Very less
c) More
d) Equally
Answer: c
Explanation: The use of the QFD process leads to more efficient allocation of resources. It is a tangible benefit of th
e QFD process. QFD process is applicable in both the manufacturing and service industries.
8. Which of the following is not an intangible benefit of the QFD process?
a) Increase in development time

b) Improvement in customer satisfaction
c) Strengthens customer-company relationship
d) Facilitating multidisciplinary teamwork
Answer: a
Explanation: The improvement in customer satisfaction by utilizing the OFD process by facilitating multidisciplinar
y teamwork strengthens the customer-company relationship. These are the intangible benefits of the OFD process.
9. Which of the following task is not performed during the ‘production planning’ phase of the OFD process?
a) Developing prototype
b) Studying technical descriptors
c) Launching the final product
d) Tabulation of operating instructions from the process requirements
Answer: b
Explanation: Developing a prototype and performing tests on them so that the final product can be launched in the m
arket are important tasks involved in the ‘production planning’ phase of the QFD process. In addition to this, the tab
ulation of operating instructions from the process requirements is also carried out in this phase.
10. Which of the following is not a phase involved in product development in the QFD process?
a) Product planning
b) Statistical planning
c) Process planning
d) Production planning
Answer: b
Explanation: Product planning, process planning, and production planning are the important phases involved in the p
roduct development of the QFD process. In addition to this, part development is also involved in product developme
nt in the QFD process.
1. TPM refers to ________
a) Total Point Maintenance

b) Total Part Maintenance
c) Total Productive Maintenance
d) Total Past Maintenance
Answer: c
Explanation: TPM refers to Total Productive Maintenance. It is an equipment maintenance approach that aims at ach
ieving perfect production.
2. Which of the following is not an interpretation of the term ‘perfect production’?
a) Production without any breakdown

b) Production without any defects
c) Production without any accidents
d) Production with 100% errors
Answer: d
Explanation: Production without any breakdown, production without any defects, and production without any accide
nts are the interpretations of the term ‘perfect production’. It is a concept that is utilized in Total Productive Mainten
ance.
3. ‘Total’ in Total Productive Maintenance refers to all the individuals in maintenance and production working toget
her.
a) True
b) False
Answer: a
Explanation: ‘Total’ in Total Productive Maintenance refers to all the individuals in maintenance and production wo
rking together. TPM refers to the holistic approach of aiming perfect production.
4. Which of the following is not a tool used to implement and optimize TPM?
a) Employee empowerment
b) Census
c) Benchmarking
d) Documentation
Answer: b
Explanation: Employee empowerment, benchmarking, and documentation, are examples of some of the tools used in
TPM. These tools are also used in Total Quality Management.
5. TPM aims at keeping the plant and the equipment at the highest production level.
a) True
b) False
Answer: a
Explanation: TPM aims at keeping the plant and the equipment at the highest production level. It is achieved throug
h cooperation between all the divisions of the organization.
6. TQM focuses on ______ and TPM focuses on ______
a) Equipment, Quality
b) Both on equipment
c) Quality, equipment
d) Statistics, Equipment
Answer: c
Explanation: TQM focuses on quality and TPM focuses on equipment. Both of them need the support of top manage
ment and also active employee participation.
7. In which of the following type of maintenance technique, repair is made after machine or equipment failure?
a) Breakdown maintenance
b) Routine maintenance
c) Poka Yoke
d) Benchmarking
Answer: a
Explanation: In breakdown maintenance, the repair is made after machine or equipment failure. It is also known as c
orrective maintenance.
8. Which of the following is a stitch-in-time technique aiming at avoiding breakdowns?
a) Forecasting
c) Poka Yoke
d) Benchmarking
Answer: b
Explanation: Routine maintenance is a stitch-in-time technique aiming at avoiding breakdowns. It is also known as s
cheduled maintenance.
9. Which of the following maintenance technique is carried out prior to the occurrence of failure or breakdown of eq
uipment?
c) Preventive maintenance
d) Benchmarking
Answer: c
Explanation: Preventive maintenance is carried out prior to the occurrence of failure or breakdown of equipment. It i
s important as it reduces machine downtime.
10. Which of the following is not a type of maintenance technique?
c) Predictive maintenance
d) 5S
Answer: d
Explanation: There are four types of maintenance techniques. They are breakdown maintenance, routine maintenanc
e, preventive maintenance, and predictive maintenance.
1. Which of the following is not a type of loss examined by TPM?
a) Down-time loss
b) Speed loss
c) Defect loss
d) Forecasting loss
Answer: d
Explanation: Downtime loss, speed loss, and defect loss are the different types of loss examined by TPM. These are
important to identify to improve equipment effectiveness.
2. TQM focuses on achieving autonomous maintenance.
a) True
b) False
Answer: a
Explanation: TQM focuses on achieving autonomous maintenance. It allows the people who are operating the equip
ment to take responsibility of the maintenance tasks.
3. MP in Total Productive Maintenance refers to ______
a) Main program
b) Main part
c) Maintenance prevention
d) Major part
Answer: c
Explanation: MP in Total Productive Maintenance refers to maintenance prevention. It is an aim at moving towards
zero maintenance. It is of utmost importance due to its impact on reducing costs in production incurred by the organi
zation.
4. Breakdowns lead to long interruptions.
a) True
b) False
Answer: a
Explanation: Breakdowns lead to long interruptions. They are considered as a loss that TPM tries to eliminate. The r
epairs are also expensive and therefore breakdowns must be avoided.
5. Which of the following loss refers to the gradual deterioration in equipment cycle times?
a) Increased speed
b) Reduced speed
c) Maximum speed
d) Optimum speed
Answer: b
Explanation: The gradual deterioration in equipment cycle times is referred to as ‘reduced speed’ loss. It needs to be
corrected by identifying potential causes of reduction in equipment cycle time.
6. Which of the following is not a loss that TPM focuses on reducing?
a) Equipment breakdown
b) Defects and rework
c) Idling and minor stoppages
d) Optimized equipment cycle time
Answer: d
Explanation: Equipment breakdown, defects, reworks, idling and minor stoppages are some of the losses that TPM f
ocuses to reduce. Start-up losses, setup and changeover losses are also accounted for by TPM.
7. Which of the following is not a goal shared by TPM?
a) Zero defects
b) Maximum productivity
c) Minimum productivity
d) Zero breakdowns
Answer: c
Explanation: Zero defects, maximum productivity, and zero breakdowns are the goals shared by TPM. Everyone star
ting from the top management to the equipment operators is responsible for equipment maintenance.
8. Which pillar of TPM focuses on routine maintenance?

a) Training and Education
b) Just-in-time
c) 5S
d) Autonomous maintenance
Answer: d
Explanation: Autonomous maintenance focuses on routine maintenance. Routine maintenance includes cleaning, lub
ricating, and inspection operations performed by the operators.
9. Which of the following is not an advantage of autonomous maintenance?
a) Sense of ownership in operators

b) Increases operator knowledge of equipment
c) Ensures clean and lubricated equipment
d) Demotes customer satisfaction
Answer: d
Explanation: Autonomous maintenance aims at bringing in a sense of ownership in operators. It increases operator k
nowledge of equipment. It also ensures clean and lubricated equipment. It enforces routine maintenance activities.
10. Which of the following loss refers to the equipment’s inability to get to steady state quickly after a change?
a) Breakdown
b) Start-up loss
c) Defects and rework
d) Benchmarking
Answer: b
Explanation: Start-up loss refers to the equipment’s inability to get to steady state quickly after a change. It is part of
the six major losses identified by the total productive maintenance process.
11. Which of the following is the most reasonable time taken by an organization to implement TPM?
a) Two days
b) Three years
c) Five days
d) Fifty years
Answer: b
Explanation: TPM takes a minimum of two years on an average to be implemented successfully in any organization.
Two and five days are too less and fifty years is too much. So, three years is a correct realization.
1. Which of the pillar of TPM schedules maintenance based on predicted and/or measured failure rates?
a) Autonomous maintenance
b) Planned maintenance
c) Focused improvement
d) Benchmarking
Answer: b
Explanation: Planned maintenance is the pillar of TPM which schedules maintenance based on predicted and/or mea
sured failure rates. It significantly reduces unplanned downtime.
2. Planned maintenance leads to a reduction in inventory through better control of wear-prone and failure-prone part
s.
a) True
b) False
Answer: a
Explanation: Planned maintenance leads to a reduction in inventory through better control of wear-prone and failure-
prone parts. It is part of the traditional TPM whose foundation is 5S.
3. Which of the following technique is used in quality maintenance?
a) Benchmarking
b) Employee empowerment
c) Root cause analysis
d) Forecasting
Answer: c
Explanation: Root cause analysis is used in quality maintenance. It eliminates recurring sources of quality defects. Q
uality maintenance is one of the pillars of traditional TPM.
4. Quality maintenance reduces the number of defects.
a) True
b) False
Answer: a
Explanation: Quality maintenance reduces the number of defects. The important task under this pillar of TPM is to d
esign error detection and prevention into the manufacturing process.
5. Which of the following pillar of TPM focuses on small groups of employees for incremental improvements in equ
ipment operation?
b) Planned maintenance
c) Quality maintenance
d) Focused improvement
Answer: d
Explanation: Focused improvement is the pillar of TPM that focuses on small groups of employees for incremental i
mprovements in equipment operation. These groups work together in a proactive manner and often belong to cross-f
unctional teams.
6. Which pillar of TPM utilizes practical knowledge and understanding of the manufacturing equipment in improvin
g the design of new equipment?
b) Early equipment management
c) Quality maintenance
d) Focused improvement
Answer: b
Explanation: Early equipment management is the pillar of TPM that utilizes practical knowledge and understanding
of the manufacturing equipment in improving the design of new equipment. This knowledge is gained through TPM
itself.
7. New equipment designed using the concept of early equipment management will have ____
a) More startup issues

b) Extremely high startup issues
c) Fewer startup issues
d) Same startup issues as before
Answer: c
Explanation: New equipment designed using the concept of early equipment management will have fewer startup iss
ues. Maintenance is simple and robust due to employee involvement and practical review.
8. Which of the following is not a health, safety, and environment (HSE) related measure taken at workplace?
a) Wearing PPE kits for workers

b) Prohibition of use of mobile phones
c) Washing hands before operating any equipment
d) Providing increment in the salary of an employee
Answer: d
Explanation: Wearing PPE kits for workers, the prohibition of the use of mobile phones, and washing hands before o
perating any equipment, are all steps and measures related to HSE. An example is the oil and gas industry where stri
ct HSE measures are implemented.
9. Which of the following is not an outcome of implementing strict health, safety, and environment-related measures
in an organization?
a) Eliminating health risks

b) Eliminating safety risks
c) Accident-free workplace
d) Increasing safety risks
Answer: d
Explanation: Eliminating health risks, eliminating safety risks, and providing an accident-free workplace are the out
comes of implementing strict health, safety, and environment-related measures in an organization. It results in creati
ng a safe and healthy working environment.
10. Which of the following is not an example of administrative operation?
a) Order processing
b) Drilling a hole in a workpiece
c) Order scheduling
d) Order procurement
Answer: b
Explanation: Order processing, scheduling, and procurement are administrative operations that must be improved w
hile TPM is also utilized. TPM can be applied in administrative functions to remove waste in administrative function
s.
11. What does an OEE score of 100% refer to?
a) Perfect production
b) World-class
c) Fairly typical
d) Poor
Answer: a
Explanation: An OEE score of 100% is perfect production. OEE refers to overall equipment effectiveness. It is a met
ric that identifies truly productive manufacturing time.
12. OEE takes into account _____
a) Availability loss
b) Availability loss and Quality loss
c) Availability loss and Performance loss
d) Availability loss, Performance loss, and Quality loss
Answer: d
Explanation: OEE takes into account availability loss, performance loss, and quality loss. It, therefore, is a widely ut
ilized metric that measures closeness to perfect production.
1. ‘Preparation stage’ is the first stage in TPM development.
a) True
b) False
Answer: a
Explanation: ‘Preparation stage’ is the first stage in TPM development. There are in total of four major stages in TP
M development. The other stages are preliminary implementation stage, TPM implementation stage, and stabilizatio
n stage.
2. In which of the following stages of TPM is the announcement to the top management about the decision to introd
uce TPM made?
a) Preliminary implementation stage

b) TPM implementation stage
c) Stabilization stage
d) Preparation stage
Answer: d
Explanation: In the ‘preparation stage’, the announcement to the top management about the decision to introduce TP
M is made. It is introduced through an internal meeting and must be published in a newsletter or bulletin.
3. Which of the following is a technique to educate everyone in the organization starting from managers to general
workers about TPM?
a) Seminars only
b) Slide presentations only
c) Seminars, slide presentations, retreats
d) Retreats only
Answer: c
Explanation: Seminars, slide presentations, retreats are the different ways in which education about TPM can be pro
vided in an organization. Seminars can be offered to the managers while slide presentations can be offered to the gen
eral workers.
4. Which of the following must not be focused on when formulating TPM policies and goals?
a) Result-oriented
b) Attainable
c) Measurable
d) Unrealistic
Answer: d
Explanation: While formulating TPM policies and goals care must be taken to make them result-oriented, specific,
measurable, attainable, and realistic. The TPM policies and goals must be clear to everyone involved in TPM imple
mentation.
5. Which of the following is not a part of holding TPM kick-off?
a) Announcing to top management about the decision to introduce TPM

b) Invite client companies
c) Invite affiliated companies
d) Invite subcontracting companies
Answer: a
Explanation: Inviting client companies, inviting affiliated companies, and inviting subcontracting companies are imp
ortant tasks performed when holding TPM kick-off. It is part of the preliminary implementation stage.
6. In which stage in TPM development is the step to improve the effectiveness of each piece of equipment taken?
a) Preparation stage
b) Preliminary inspection stage
c) TPM implementation stage
d) Stabilization stage
Answer: c
Explanation: In the TPM implementation stage, the step to improve the effectiveness of each piece of equipment tak
en. In this step, we need to select model equipment and form project teams.
7. In which stage of TPM development the focus is to set higher TPM goals?
a) Preparation stage
c) TPM implementation stage
Answer: d
Explanation: In the stabilization stage of TPM development, the focus is to set higher TPM goals. The TPM levels
must be raised and TPM needs to be perfectly implemented.
8. In which stage of TPM development is the development of the early equipment management program carried out?
a) TPM implementation stage

c) Preparation stage
Answer: a
Explanation: In the TPM implementation stage of TPM development, the development of the early equipment mana
gement program is carried out. The design, commission, and control of the maintenance prevention program carried
out.
9. Training conducted to improve the operation and maintenance skills are carried out in the TPM implementation st
age of TPM development?
a) True
b) False
Answer: a
Explanation: Training conducted to improve the operation and maintenance skills are carried out in the TPM implem
entation stage of TPM development. Leaders are trained together, and leaders share information with the group mem
bers.
10. In which stage of TPM development a scheduled maintenance program for the maintenance department develop
ed?
a) Stabilization stage
c) Preparation stage
d) TPM implementation stage
Answer: d
Explanation: In the TPM implementation stage, the scheduled maintenance program for the maintenance department
is developed. It includes periodic and preventive maintenance and management.
1. If availability is 85%, performance efficiency is 50%, and the rate of quality products is 98%, then find out the ov
erall equipment effectiveness?
a) 42%
b) 50%
c) 32%
d) 60%
Answer: a
Explanation: Overall equipment effectiveness = Availability * Performance efficiency * Rate of quality products = 0
.85 * 0.50 * 0.98 = 42%.
2. What is the quality score if an asset produces 15000 units out of which 500 are defective?
a) 92.67%
b) 94.67%
c) 96.67%
d) 98.67%
Answer: c
Explanation: Quality score = Number of usable units/Total units = 14500/15000 = 96.67%. It is a useful parameter i
n the calculation of OEE.
3. A machine that was supposed to run for 10 hours suffers a breakdown and runs only for 9 hours. Calculate availab
ility.
a) 89%
b) 90%
c) 91%
d) 92%
Answer: b
Explanation: Availability=Total run time/Total planned production time = 9/10 = 90%. It is a useful parameter in the
calculation of OEE.
4. If the loading time is 400 minutes and downtime is 60 minutes, calculate availability.
a) 81%
b) 83%
c) 85%
d) 87%
Answer: c
Explanation: Availability = ((Loading Time – Down Time)/Loading Time)*100 = ((400-60)/400)*100 = 85%. Avail
ability, Performance Efficiency, and Quality score are required to calculate OEE.
5. If the theoretical cycle time per unit is 0.5 minutes/unit, the number of units is 400, and the operating time is 400
minutes, calculate performance efficiency.
a) 20%
b) 30%
c) 40%
d) 50%
Answer: d
Explanation: Performance efficiency is given by the formula:
6. If the overall equipment effectiveness is 40%, availability 82%, quality score 96%, calculate the performance effi
ciency?
a) 50.8%
b) 60.8%
c) 70.8%
d) 40.8%
Answer: a
Explanation: Overall equipment effectiveness = Availability * Performance efficiency * Rate of quality products. Th
erefore, performance efficiency = (0.40/(0.82*0.96))=50.8%.
7. Improved safety is one of the benefits of implementing TPM.
a) True
b) False
Answer: a
Explanation: Improved safety is one of the benefits of implementing TPM. The goals of TPM are to aim at zero brea
kdowns and zero defects.
8. TPM ensures an improved return on investment.
a) True
b) False
Answer: a
Explanation: TPM ensures an improved return on investment. The approach of TPM to achieve perfect production t
hrough equipment maintenance increases equipment productivity.
9. Which of the following is not an advantage of implementing TPM?
a) Improved equipment reliability

b) Reduced equipment downtime
c) Increased equipment downtime
d) Lower maintenance and production costs
Answer: c
Explanation: Improved equipment reliability, reduced equipment downtime, and lower maintenance and production
costs are some of the advantages of implementing TPM. The implementation of proper maintenance techniques brin
gs production close to zero breakdowns and zero defects.
10. Which of the following is not an advantage of implementing TPM?
a) Enhanced job satisfaction

b) Zero defects
c) Improved teamwork between operators and maintenance team
d) A decrease in equipment reliability
Answer: d
Explanation: Enhanced job satisfaction, the aim at zero defects, improved teamwork between operators and mainten
ance team are some of the advantages of implementing TPM. In fact, there is an increase in equipment reliability.
1. ______ is an indicator of the measurement of success in any organization.

a) Poka-Yoke
b) 5S
c) Performance Measures
d) Benchmarking
Answer: c
Explanation: Performance Measures is an indicator of the measurement of success in any organization. It is quantitat
ive data that measures continuous quality improvement activity in any organization.
2. According to Ray F. Boedecker, establishing a baseline measure and revealing trends is one of the objectives of ‘p
erformance measures’.
a) True
b) False
Answer: a
Explanation: According to Ray F. Boedecker, establishing a baseline measure and revealing trends is one of the obje
ctives of ‘performance measures’. Performance measures are required in any organization to quantify success.
3. Which of the following is incorrect according to the seven objectives of performance measures identified by Ray
F. Boedecker?
a) Determination of processes that need improvement

b) Indicating process gains and losses
c) Comparing goals with actual performance
d) Hiding information for making informed decisions
Answer: d
Explanation: Determination of processes that need improvement, indicating process gains and losses, and comparing
goals with actual performance are few of the seven objectives of performance measures identified by Ray F. Boedec
ker. It also includes providing information to make informed decisions.
4. According to Ray F. Boedecker, providing information for individuals and team evaluation is one of the objective
s of ‘performance measures’.
a) True
b) False
Answer: a
Explanation: According to Ray F. Boedecker, providing information for individuals and team evaluation is one of th
e objectives of ‘performance measures’. To determine the overall performance of the organization is also one of the
objectives of the performance measure identified by Ray F. Boedecker.
5. Which one of the following is not a functional element considered during the performance measure of an organiza
tion?
a) Customers
b) Poka-yoke
c) Production
d) Suppliers
Answer: b
Explanation: Customers, production, and suppliers are few of the functional elements considered during the perform
ance measure of an organization. Some of the other functional elements considered during the performance measure
of an organization are research and development, human resources, marketing/sales, and administration.
6. Which of the following is not an indicator of the ‘customer’ functional element while measuring the performance
of an organization?
a) Number of customers’ complaints
b) Number of warranty claims
c) Number of suggestions per employee
d) Revenue growth
Answer: d
Explanation: Number of customers’ complaints, the number of warranty claims, and the number of suggestions per e
mployee are some of the indicators of the ‘customer’ functional element while measuring the performance of an org
anization. Revenue growth is an indicator of the ‘production’ functional element while measuring the performance o
f an organization.
7. Which of the following is not a determinant of the ‘customer’ functional element while measuring the performanc
e of an organization?
a) Number of suggestions implemented

b) Customer satisfaction index
c) Percentage returns by customers
d) Service rating
Answer: d
Explanation: Number of suggestions implemented. Customer satisfaction index and percentage returns by customers
are some of the indicators of the ‘customer’ functional element while measuring the performance of an organization
. Service rating is an indicator of the ‘suppliers’ functional element while measuring the performance of an organizat
ion.
8. ‘Time to resolve complaints’ is an indicator of which functional element while measuring the performance of an o
rganization?
a) Customers
b) Production
c) Suppliers
d) Research and Development
Answer: a
Explanation: ‘Time to resolve complaints’ is an indicator of the ‘customer’ functional element while measuring the
performance of an organization. ‘Mean time to repair’ is another example of an indicator of the ‘customer’ functiona
l element while measuring the performance of an organization.
9. Labor productivity is equal to ______
a) Result/material costs
b) Result/labor costs
c) Result/capital costs
d) Revenue growth
Answer: b
Explanation: Labor productivity is equal to result/labor costs. It is a key indicator of the ‘production’ functional ele
ment while measuring the performance of an organization.
10. Effectiveness is equal to _______
a) Customer satisfaction index

b) Actual result/expected result
c) Revenue growth
d) Result/labor costs
Answer: b
Explanation: Effectiveness is equal to the actual result/expected result. Effectiveness is a key indicator of the ‘produ
ction’ functional element while measuring the performance of an organization.
11. Efficiency is equal to _______
a) Expected costs/actual costs

b) Meantime to repair
c) Labor productivity
d) Actual result/expected result
Answer: a
Explanation: Efficiency is equal to expected costs/actual costs. Efficiency is a key indicator of the ‘production’ funct
ional element while measuring the performance of an organization.
1. Throughput time is equal to ______
a) Processing time+Inspection time

b) Processing time+Inspection time+Movement time
c) Processing time+Inspection time+Movement time+Waiting time
d) Processing time+Inspection time+Waiting time
Answer: c
Explanation: Throughput time is equal to Processing time+Inspection time+Movement time+Waiting time. It is an i
mportant determinant in the ‘production’ functional element while measuring the performance of an organization.
2. % rejects and % scrap are important determinants in the ‘production’ functional element while measuring the perf
ormance of an organization.
a) True
b) False
Answer: a
Explanation: % rejects and % scrap are important determinants in the ‘production’ functional element while measuri
ng the performance of an organization. The other functional elements are customers, suppliers, research and develop
ment, human resources, marketing/sales, and administration.
3. Manufacturing cycle effectiveness is equal to ______
a) Number of failures
b) Processing time/Throughput time
c) Processing time
d) Throughput time
Answer: b
Explanation: Manufacturing cycle effectiveness is equal to processing time/throughput time. It is an important deter
minant in the ‘production’ functional element while measuring the performance of an organization.
4. Failure rate is equal to ______
a) (Number of failures/Total number of products tested)*100

b) Number of failures
c) Total number of products tested
d) Number of breakdowns
Answer: a
Explanation: Failure rate is equal to (Number of failures/Total number of products tested)*100. The failure rate is an
important determinant in the ‘production’ functional element while measuring the performance of an organization.
5. Quality grade is equal to ___________

a) Production quantity
b) Number of defects
c) ((Production quantity – Number of defects)/Production quantity)*100
d) Customer satisfaction index/number of defects
Answer: c
Explanation: Quality grade is equal to ((Production quantity-Number of defects)/Production quantity)*100. Quality
grade is an important determinant in the ‘production’ functional element while measuring the performance of an org
anization.
6. Which of the following is not a determinant of the ‘suppliers’ functional element while measuring the performanc
a) Service rating
b) On-time delivery
c) Quality performance
d) Number of breakdowns
Answer: d
Explanation: Service rating, on-time delivery, and quality performance are few of the determinants of the ‘suppliers’
functional element while measuring the performance of an organization. The number of breakdowns is an indicator
of the ‘production’ functional element while measuring the performance of an organization.
7. Which of the following is not an indicator of the ‘suppliers’ functional element while measuring the performance
of an organization?
a) SPC charts
b) Billing accuracy
c) Average lead time
d) Lead time for product development
Answer: d
Explanation: SPC charts, billing accuracy, and average lead time are few of the determinants of the ‘suppliers’ functi
onal element while measuring the performance of an organization. Lead time for product development is an indicato
r of the ‘production’ functional element while measuring the performance of an organization.
8. ‘Just-in-time delivery target’ is an indicator of which functional element while measuring the performance of an o
rganization?
a) Research and development

b) Suppliers
c) Human resources
d) Customers
Answer: b
Explanation: ‘Just-in-time delivery target’ is an indicator of the ‘suppliers’ functional element while measuring the p
erformance of an organization. The other functional elements are customers, production, research and development,
human resources, marketing/sales, and administration.
9. Which of the following is not an indicator of the ‘research and development’ functional element while measuring
the performance of an organization?
a) New product time to market

b) The time needed to launch a new product
c) Design change orders
d) Revenue growth
Answer: d
Explanation: New product time to market, the time needed to launch a new product, and design change orders are fe
w of the determinants of the ‘research and development’ functional element while measuring the performance of an
organization. Revenue growth is an indicator of the ‘production’ functional element while measuring the performanc
e of an organization.
10. ‘Cost estimating errors’ is an indicator of which functional element while measuring the performance of an orga
nization?

b) Production
c) Human resources
d) Customers
Answer: a
Explanation: ‘Cost estimating errors’ is an indicator of ‘research and development’ functional element while measur
ing the performance of an organization. The percentage of sales from new products is another important indicator of
the ‘research and development’ functional element while measuring the performance of an organization.
1. Which of the following is not a determinant of the ‘human resources’ functional element while measuring the perf
ormance of an organization?
a) Percentage of personnel turnover

b) Percentage of absence due to illness
c) Employee satisfaction index
d) Average lead time
Answer: d
Explanation: The percentage of personnel turnover, the percentage of absence due to illness, and employee satisfacti
on index are some of the determinants of the ‘human resources’ functional element while measuring the performanc
e of an organization. ‘Average lead time’ is an indicator of the ‘suppliers’ functional element while measuring the pe
rformance of an organization.
2. Which of the following is not an indicator of ‘human resources’ functional element while measuring the performa
nce of an organization?
a) Number of training hours per employee

b) Number of active teams
c) Number of suggestions/grievances
d) Material productivity
Answer: d
Explanation: The number of training hours per employee, the number of active teams, and the number of suggestion
s/grievances are some of the indicators of the ‘human resources’ functional element while measuring the performanc
e of an organization. ‘Material productivity’ is an indicator of the ‘production’ functional element while measuring t
he performance of an organization.
3. The percentage of safety incidents and the percentage of environmental incidents are indicators of which function
al element while measuring the performance of an organization?

b) Suppliers
c) Human resources
d) Customers
Answer: c
Explanation: The percentage of safety incidents and the percentage of environmental incidents are indicators of the ‘
human resources’ functional element while measuring the performance of an organization. The other functional ele
ments are customers, production, research and development, suppliers, marketing/sales, and administration.
4. Which of the following is not an indicator of ‘marketing/sales’ functional element while measuring the performan
ce of an organization?
a) Sales growth
b) Failure rate
c) Market growth
d) The percentage of delivery completed
Answer: b
Explanation: Sales growth, market growth, and the percentage of delivery completed are indicators of the ‘marketing
/sales’ functional element while measuring the performance of an organization. ‘Failure rate’ is an indicator of the ‘p
roduction’ functional element while measuring the performance of an organization.
5. Which of the following is not a determinant of the ‘marketing/sales’ functional element while measuring the perfo
rmance of an organization?
a) Sales expense to revenue

b) New customers
c) Order accuracy
d) Quality grade
Answer: d
Explanation: Sales expense to revenue, new customers, and order accuracy are some of the determinants of the ‘mar
keting/sales’ functional element while measuring the performance of an organization. ‘Quality grade’ is an indicator
of the ‘production’ functional element while measuring the performance of an organization.
6. Which of the following is not a determinant of the ‘administration’ functional element while measuring the perfor
mance of an organization?
a) Revenue growth
b) Throughput time
c) Revenue per employee
d) Expense to revenue
Answer: b
Explanation: Revenue growth, revenue per employee, and expense to revenue are some of the determinants of the ‘a
dministration’ functional element while measuring the performance of an organization. ‘Throughput time’ is an indi
cator of the ‘production’ functional element while measuring the performance of an organization.
7. Which of the following is not an indicator of ‘administration’ functional element while measuring the performanc
a) Number of breakdowns
b) Cost of poor quality
c) Percentage of payroll distribution on time
d) Office equipment up-time
Answer: a
Explanation: Cost of poor quality, percentage of payroll distribution on time, and office equipment up-time are some
of the determinants of the ‘administration’ functional element while measuring the performance of an organization.
‘Number of breakdowns’ is an indicator of the ‘production’ functional element while measuring the performance of
an organization.
8. Billing accuracy and invoicing speed are indicators of which functional element while measuring the performance
of an organization?
a) Administration
b) Suppliers
c) Human resources
d) Customers
Answer: a
Explanation: Billing accuracy and invoicing speed are indicators of the ‘administration’ functional element while me
asuring the performance of an organization. The other functional elements are customers, production, research and d
evelopment, suppliers, marketing/sales, and human resources.
9. Which of the following is not a criterion of the performance measures?
a) Simple
b) Few in number
c) Developed by users
d) Irrelevance to customers
Answer: d
Explanation: The performance measures must be simple and should focus on having a few numbers of key measures
. They must be developed by users and must be relevant to customers.
10. Which of the following is not a performance measure criterion?
b) Cost
c) Transparency
d) Misaligned
Answer: d
Explanation: The performance measures must focus on continuous improvement. It must have transparency with pro
per cost consideration. They must be perfectly aligned with the organization’s goals.
11. The performance measures must be time-based.
a) True
b) False
Answer: a
Explanation: The performance measures must be time-based. They can be hourly, daily, weekly, monthly, or quarter
ly.
12. The performance measure results must align with the interest of all stakeholders.
a) True
b) False
Answer: a
Explanation: The performance measure results must align with the interest of all stakeholders. The various stakehold
ers are customers, employees, stockholders, suppliers, and the community.
1. Which of the following does not fit in the criteria of ‘added value’ in a typical strategic measurement system?
a) Increase in revenue per employee

b) Increase in gross added value
c) Increase in net added value
d) % reduction of rejects and scraps
Answer: d
Explanation: Increase in revenue per employee, increase in gross added value, and an increase in net added value fit
in the criteria of ‘added value’ in the typical strategic measurement system. ‘Added value’ along with productivity, t
hroughput time, and quality form important criteria in a typical strategic measurement system of an organization.
2. Which of the following does not fit in the criteria of ‘throughput time’ in a typical strategic measurement system?
a) Reduction in throughput time

b) Increase in manufacturing cycle effectiveness
c) Reduction in the number of breakdowns
d) Increase in revenue per employee
Answer: d
Explanation: Reduction in throughput time, increase in manufacturing cycle effectiveness, and reduction in the num
ber of breakdowns fit in the criteria of ‘throughput time’ in a typical strategic measurement system. ‘Increase in reve
nue per employee’ is an important indicator in the criteria ‘added value’.
3. Which of the following is not an indicator of ‘throughput time’ in a typical strategic measurement system?
a) Increase in availability
b) Increase in invoicing speed
c) Increase in gross added value
d) Reduction in time between order and delivery
Answer: c
Explanation: Increase in availability, increase in invoicing speed, and reduction in time between order and delivery a
re a few of the important indicators of ‘throughput time’ in a typical strategic measurement system. ‘Increase in gros
s added value’ is an important indicator in the criteria ‘added value’.
4. Which of the following is not an indicator of ‘productivity’ in a typical strategic measurement system?
a) Increase in productivity
b) Reduction in throughput time
c) Increase in the effectiveness
d) Increase in the efficiency
Answer: b
Explanation: Increase in productivity, an increase in the effectiveness, and an increase in efficiency are a few of the i
mportant indicators of ‘productivity’ in a typical strategic measurement system. ‘Reduction in throughput time’ is an
important indicator in the criteria ‘throughput time’.
5. Which of the following is not a measure of ‘productivity’ in a typical strategic measurement system?
a) Increase in availability
b) Increase in revenue growth
c) Increase in sales and market growth
d) % reduction in personnel turnover
Answer: a
Explanation: Increase in revenue growth, increase in sales and market growth, and % reduction in personnel turnove
r are a few of the important indicators of ‘productivity’ in a typical strategic measurement system. ‘Increase in availa
bility’ is an important indicator in the criteria ‘throughput time’.
6. Which of the following is not a measure of ‘quality’ in a typical strategic measurement system?
a) % increase in quality grade

b) % reduction in failure rate
c) % reduction in the cost of poor quality
d) Increase in invoicing speed
Answer: d
Explanation: % increase in quality grade, % reduction in failure rate, and % reduction in the cost of poor quality are
a few of the important indicators of ‘quality’ in a typical strategic measurement system. ‘Increase in invoicing speed
’ is an important indicator in the criteria ‘throughput time’.
7. Which of the following is not an indicator of ‘quality’ in a typical strategic measurement system?
a) Reduction in the number of customer complaints

b) % reduction in rejects and scraps
c) % reduction of safety and environmental incidents
d) Reduction in the number of breakdowns
Answer: d
Explanation: Reduction in the number of customer complaints, % reduction in rejects and scraps, and % reduction of
safety and environmental incident are a few of the important indicators of ‘quality’ in a typical strategic measureme
nt system. ‘Reduction in the number of breakdowns’ is an important indicator in the criteria ‘throughput time’.
8. ‘Time series trend graphs’ is one of the basic techniques for presenting performance measures.
a) True
b) False
Answer: a
Explanation: ‘Time series trend graphs’ is one of the basic techniques for presenting performance measures. The oth
er basic techniques are control charts, capability index, Taguchi’s loss function, Costs of poor quality, and Quality a
wards.
1. Which organization gives the Rajiv Gandhi National Quality Award?
a) BIS
b) SEBI
c) IRDAI
d) PFRDA
Answer: a
Explanation: The Rajiv Gandhi National Quality Award is given by BIS. BIS stands for the Bureau of Indian Standa
rds.
2. Which of the following is not a criterion included in awarding the Malcolm Baldrige National Quality Award?
a) Leadership
b) Strategic Planning
c) Customer and Market Focus
d) Benchmarking
Answer: d
Explanation: Leadership, Strategic Planning, and Customer and market focus are some of the criteria included in the
Malcolm Baldrige National Quality Award. It was established in the year 1987.
3. Which of the following is not a factor included in awarding the Malcolm Baldrige National Quality Award?
a) Information and Analysis

b) Human Resource Focus
c) Process Management
d) Poka Yoke
Answer: d
Explanation: Information and analysis, human resource focus, and process management are some of the criteria incl
uded in the Malcolm Baldrige National Quality Award. It is intended for organizations that demonstrate quality exce
llence and establish best practice standards.
4. Business results in one of the criteria in awarding the Malcolm Baldrige National Quality Award.
a) True
b) False
Answer: a
Explanation: Business results in one of the criteria in awarding the Malcolm Baldrige National Quality Award. Malc
olm Baldrige National Quality Award was established in the year 1987.
5. Which country gives The Deming Prize?
a) U.S.A.
b) India
c) Japan
d) South Africa
Answer: c
Explanation: The Deming Prize is given by Japan. It is sponsored by Japanese Union of Scientists and Engineers. It
was first awarded in 1951.
6. Deming Prize is named after William Deming.
a) True
b) False
Answer: a
Explanation: Deming Prize is named after William Deming. The Japanese consider him an important quality guru an
d named the award after him.
7. In which year was Deming Prize first open for foreign companies?
a) 1950
b) 1960
c) 1984
d) 2000
Answer: c
Explanation: The Deming Prize was first open for foreign companies in 1984. Florida Power & Light was the first U
.S. Company to receive the award in 1989.
8. Which of the following is not an example of an International Quality Award?
a) Oscars
b) The Deming Prize
c) The European Quality Award
d) Asia-Pacific Area Golden Quality Award
Answer: a
Explanation: The Deming Prize, the European Quality Award, and Asia-Pacific Area Golden Quality Award are exa
mples of International Quality Awards. Quality awards are given to acknowledge organizations that demonstrate qua
lity excellence and establish best practice standards.
9. Which of the following is not an example of a National Quality Award?

a) Malcolm Baldrige Award
b) UK Excellence Award
c) Golden Peacock Awards
d) The Deming Prize
Answer: d
Explanation: Malcolm Baldrige Award, UK Excellence Award, and Golden Peacock Awards are examples of Natio
nal Quality Awards. The Deming Prize is an example of the International Quality Award.
10. At which level is the Rajiv Gandhi Quality award given?
a) National
b) Regional
c) Trade or professional bodies
d) By other companies
Answer: a
Explanation: The Rajiv Gandhi Quality award is given at the National Level. It was named after Rajiv Gandhi, the f
ormer Prime Minister of India. It was first awarded in 1992.
1. According to ISO, the quality system is the organizational structure, responsibilities, procedures, processes, and re
sources for implementing quality management.
a) True
b) False
Answer: a
Explanation: According to ISO, the quality system is the organizational structure, responsibilities, procedures, proce
sses, and resources for implementing quality management. ISO refers to the International Organization for Standardi
zation.
2. Which of the following must not be a characteristic of a quality system?
a) It must be well-understood
b) Products or services actually do satisfy customer expectations
c) Emphasis on problem prevention
d) It must be ineffective
Answer: d
Explanation: The characteristics of a quality system must be that it must be well-understood, products or services act
ually do satisfy customer expectations, and emphasis on problem prevention. It must be effective too.
3. A quality system is involved in all phases from initial identification to final satisfaction of requirements and meeti
ng customer satisfaction.
a) True
b) False
Answer: a
Explanation: A quality system is involved in all phases from initial identification to final satisfaction of requirement
s and meeting customer satisfaction. It is applied to all activities that focus on the quality of product/service.
4. Which of the following is not an advantage of implementing a quality system that conforms to ISO standards?
a) Improvement in employee involvement

b) Improvement in housekeeping
c) Improvement in customer satisfaction
d) Inefficient decision making
Answer: d
Explanation: Improvement in employee involvement, improvement in housekeeping, and improvement in customer
satisfaction are some of the advantages of implementing a quality system that conforms to ISO standards. Decision
making based on facts and data also improves.
5. Which of the following cannot be considered a reason for implementing a quality system that conforms to ISO sta
ndards?
a) Improvement in safe working

b) Reduction in customer complaints
c) Increased inspection efforts
d) Decreased inspection efforts
Answer: c
Explanation: Improvement in safe working, reduction in customer complaints, and a decrease in inspection efforts ar
e some of the reasons for implementing a quality system that conforms to ISO standards. Quality costs also reduce.
6. Which of the following represents India in ISO?
a) PFRDA
b) FSSAI
c) BIS
d) BCCI
Answer: c
Explanation: BIS represents India in ISO. It is known as the Bureau of Indian Standards. It is the National Standards
Body of India and is a founding member of the ISO.
7. Which is the latest ISO 9001 version in the ISO 9000 family?
a) ISO 9001:1994
b) ISO 9001:2000
c) ISO 9001:2008
d) ISO 9001:2015
Answer: d
Explanation: The latest version of the international standard ISO 9001 is the 2015 version which is known as ISO 90
01:2015. The first edition of ISO 9001 was released in 1987.
8. Which of the following is/are the advantage(s) of using the ISO 9001 standard?
a) Organizing processes
b) Improving the efficiency of processes
c) Continuous improvement
d) Organizing processes, improving the efficiency of processes, and continuous improvement
Answer: d
Explanation: The advantages of the international standard ISO 9001 are organizing processes, improving the efficien
cy of processes, and continuous improvement. It can be applied to any organization regardless of size and industry.
9. Which is the only standard in the ISO 9000 family to which organizations can certify?
a) ISO 9000
b) ISO 9001
c) ISO 14000
d) ISO 9004
Answer: b
Explanation: The only standard in the ISO 9000 family to which organizations can certify is the ISO 9001. The lates
t version of it is the ISO 9001:2015.
10. Which ISO standard provides guidelines for auditing management systems?
a) ISO 19011:2018
b) ISO 9000:2015
c) ISO 9001:2015
d) ISO 9004:2018
Answer: a
Explanation: The ISO 19011: 2018 provides guidelines for auditing management systems. It is applicable to organiz
ations.
11. Which ISO 9000 family standard provides the fundamentals and vocabulary for quality management systems?
a) ISO 19011:2018
b) ISO 9000:2015
c) ISO 9001:2015
d) ISO 9004:2018
Answer: b
Explanation: The ISO 9000:2015 is the standard in the ISO 9000 family that provides the fundamentals and vocabul
ary for quality management systems. It was first published in 1987.
12. Which is the latest ISO 9000 version in the ISO 9000 family?
a) ISO 9000:1987
b) ISO 9000:2000
c) ISO 19011:2018
d) ISO 9000:2015
Answer: d
Explanation: The latest ISO 9000 version in the ISO 9000 family is the ISO 9000:2015. The other standards in the I
SO 9000 family are the ISO 9001:2015 and ISO 9004:2018.
13. Which ISO standard provides guidance to achieve sustained success and the continuous improvement of an orga
nization?
a) ISO 19011:2018
b) ISO 9000:2015
c) ISO 9001:2015
d) ISO 9004:2018
Answer: d
Explanation: The ISO 9004:2018 provides guidance to achieve sustained success and the continuous improvement o
f an organization. It is applicable to all organizations.
14. Which of the following is not a quality management principle on the basis of which ISO 9000:2015 and ISO 900
1:2015 are based on?
a) Customer focus
b) Leadership
c) Customer dissatisfaction
d) Evidence based decision making
Answer: c
Explanation: Customer focus, leadership, and evidence based decision making are some of the quality management
principles on the basis of which ISO 9000:2015 and ISO 9001:2015 are based on. The other principles are relationsh
ip management, process approach, engagement of people, and continual improvement.
1. ISO 14000 standards are for the _________
a) Quality Management System

b) Environmental Management System
c) Administration
d) Supply chain
Answer: b
Explanation: ISO 14000 standards are for the Environmental Management System. It is either at the organization an
d process level or product level.
2. In which year did the ISO create the ISO 14000 family of standards?
a) 1956
b) 1966
c) 1978
d) 1996
Answer: d
Explanation: In 1996, ISO created the ISO 14000 family of standards. ISO refers to the International Organization f
or Standardization.
3. Which is the first environmental management system standard?
a) BS 7750
b) ISO 9000
c) ISO 9001
d) ISO 9004
Answer: a
Explanation: BS 7750 is the first environmental management system standard. It was published in 1992 by BSI grou
p.
4. In which year did the current revision of ISO 14001 get published?
a) 2010
b) 2011
c) 2015
d) 2016
Answer: c
Explanation: The current revision of ISO 14001 was published in 2015. ISO 14001 also underwent a revision in 200
4.
5. Which one of the following is not within the purview of ISO 14000 family of standards?
a) Environmental management system

b) Environment auditing
c) Life-cycle assessment
d) Quality management system
Answer: d
Explanation: Environmental management system, environment auditing, and life-cycle assessment are within the pur
view of ISO 14000 family of standards. In addition to this, environmental performance evaluation and environmenta
l aspects in product standards are also considered.
6. Which one of the following does not belong to the area of Organization Evaluation Standards in ISO 14000 series
?
a) Environmental management system

b) Environmental auditing
c) Environmental performance evaluation
d) Environmental labels and declarations
Answer: d
Explanation: Environmental management system, environmental auditing, and environmental performance evaluatio
n belong to the area of Organization Evaluation Standards in ISO 14000 series. ISO 14000 series is broadly divided i
nto two areas, Organization Evaluation Standards and Product Evaluation Standards.
7. Environmental aspects in product standards belong to the area of Product Evaluation Standards in ISO 14000 seri
es.
a) True
b) False
Answer: a
Explanation: Environmental aspects in product standards belong to the area of Product Evaluation Standards in ISO
14000 series. Life cycle assessment also belongs to the area of Product Evaluation Standards in ISO 14000 series.
8. Which of the following pair of ISO 14000 standards fall under the category of Environmental Management Syste
m?
a) ISO 14001 and ISO 14004

b) ISO 14010 and ISO 14001
c) ISO 14011 and ISO 14001
d) ISO 14011 and ISO 14004
Answer: a
Explanation: ISO 14001 and ISO 14004 are the pair of ISO 14000 standards which fall under the category of Enviro
nmental Management System. ISO 14001 refers to Environmental Management Systems specifications and ISO 140
04 refers to Environmental Management Systems guidelines on principles, systems, and supporting techniques.
9. Which of the following pair of ISO 14000 standards fall under the category of Environmental Auditing?
a) ISO 14001 and ISO 14004

b) ISO 14010 and ISO 14011
c) ISO 14011 and ISO 14001
d) ISO 14012 and ISO 14004
Answer: b
Explanation: ISO 14010 and ISO 14011 are the pair of ISO 14000 standards that fall under the category of Environ
mental Auditing. ISO 14010 refers to general principles on environmental auditing and ISO 14011 refers to the audit
procedures.
10. ISO 14012 refers to qualification criteria for environmental auditors.
a) True
b) False
Answer: a
Explanation: ISO 14012 refers to qualification criteria for environmental auditors. It falls under the category of Envi
ronmental Auditing.
11. Which ISO 14000 series standard refers to the guidelines on Environmental Performance Evaluation?
a) ISO 14001
b) ISO 14004
c) ISO 14010
d) ISO 14031
Answer: d
Explanation: ISO 14031 refers to the guidelines on Environmental Performance Evaluation. It falls under the categor
y of environmental performance evaluation.
12. Which of the following pair of ISO 14000 standards fall under the category of Environmental Labelling?
a) ISO 14001 and ISO 14004

b) ISO 14010 and ISO 14011
c) ISO 14020 and ISO 14021
d) ISO 14012 and ISO 14020
Answer: c
mental Labelling. ISO 14020 refers to the basic principles for environmental labelling and ISO 14021 refers to the se
lf-declaration of environmental claims.
13. Which of the following pair of ISO 14000 standards belong to the category of Environmental Labelling?
a) ISO 14022 and ISO 14023

b) ISO 14001 and ISO 14004
c) ISO 14001 and ISO 14021
d) ISO 14012 and ISO 14020
Answer: a
mental Labelling. ISO 14022 refers to the symbols and ISO 14023 refers to the testing and verification.
14. Which of the following pair of ISO 14000 standards belong to the category of Life Cycle Assessment?
a) ISO 14041 and ISO 14023

b) ISO 14041 and ISO 14004
c) ISO 14040 and ISO 14041
d) ISO 14040 and ISO 14020
Answer: c
Explanation: ISO 14040 and ISO 14041 are the pair of ISO 14000 standards that fall under the category of Life Cycl
e Assessment. ISO 14040 refers to the principles and framework and ISO 14041 refers to the goals and guidelines.
15. Which of the following pair of ISO 14000 standards fall under the category of Life Cycle Assessment?
a) ISO 14041 and ISO 14023

b) ISO 14041 and ISO 14004
c) ISO 14042 and ISO 14043
d) ISO 14040 and ISO 14020
Answer: c
Explanation: ISO 14042 and ISO 14043 fall under the category of Life Cycle Assessment. ISO 14042 refers to the i
mpact assessment and ISO 14043 refers to the improvement assessment.
1. Reliability is a measure of how quality changes over time.

a) True
b) False
Answer: a
Explanation: Reliability is a measure of how quality changes over time. Quality shows us how well the product or se
rvice performs its intended function, but reliability shows how well the product or service retain its original level of
quality over a period of time.
2. Reliability is the probability of a system or service to perform its intended function satisfactorily over a specific p
eriod of time under specific conditions.
a) True
b) False
Answer: a
Explanation: Reliability is the probability of a system or service to perform its intended function satisfactorily over a
specific period of time under specific conditions. The keywords are probability, intended function, satisfactorily, sp
ecific period of time, and specific conditions.
3. The reliability of the entire system is called ______
a) Partial reliability
b) Isolated reliability
c) Closed reliability
d) System reliability
Answer: d
Explanation: The reliability of the entire system is called system reliability. A system is the collection of items such
as subsystems, components, units, blocks etc.
4. System reliability for components kept in series _______ as the number of components increases.
a) Increases
b) Decreases
c) Remains unchanged
d) Cannot be determined
Answer: b
Explanation: System reliability for components kept in series decreases as the number of components increases. In t
his case, the system reliability is always less than the lowest value of reliability of any component.
5. System reliability for components kept in parallel ______ as the number of components increases.
a) Increases
b) Decreases
c) Remains unchanged
Answer: a
Explanation: System reliability for components kept in parallel increases as the number of components increases. In
this case, the system reliability is always more than the highest value of reliability of any component.
6. In series configuration of five components, the entire system will fail if ______
a) any two components fail

b) any three components fail
c) any one of the components fail
d) any four components fail
Answer: c
Explanation: In series configuration of five components, the entire system will fail if any one of the components fail.
The entire system will work satisfactorily only if all the components work without fail.
7. In parallel configuration of five components, the entire system will fail if _____
a) any two components fail

b) any three components fail
c) all the components fail
d) any one components fail
Answer: c
Explanation: In parallel configuration of five components, the entire system will fail if all the components fail. The s
ystem will work satisfactorily even when any one of the parallel components fail.
8. The life-test sample plans that are terminated when a pre-assigned number of failures occur in the sample is ____
_
a) Failure-terminated
b) Time-terminated
c) Operation-terminated
d) Sequential
Answer: a
Explanation: The life-test sample plans that are terminated when a pre-assigned number of failures occur in the samp
le is failure-terminated. The other types of tests are time-terminated and sequential.
9. What does the graph of ‘bathtub curve’ represent?
a) Failure rate v/s Mean

b) Failure rate v/s Time
c) Failure rate v/s Distance
d) Failure rate v/s Velocity
Answer: b
Explanation: The ‘bathtub curve’ represents failure rate v/s time. It has three distinct phases known as the debugging
phase, chance-failure phase, and the wear-out phase.
1. A system consists of four components in series with two components having reliability of 0.9 and two others havi
ng reliability of 0.8 at the end of one year. What is the system reliability at the end of one year?
a) 0.9000
b) 0.8000
c) 0.7000
d) 0.5184
Answer: d
Explanation: The reliability of the system at the end of one year is given by R(s)=R1*R2*R3*R4. So, R(s)=0.9*0.9*
0.8*0.8=0.5184.
2. A production line is using five robots for its daily operations. If each robot has a reliability of 0.95, what is the tot
al system reliability?
a) 0.7737
b) 0.9500
c) 0.9000
d) 1.0000
Answer: a
Explanation: The reliability of the system is given by R(s)=R1*R2*R3*R4*R5. So, R(s)=0.95*0.95*0.95*0.95*0.95
, or R(s)=0.7737.
3. If the system reliability of five robots in a production line is 0.95, what is the individual reliability?
a) 0.9354
b) 0.6535
c) 0.9897
d) 0.8143
Answer: c
Explanation: The system reliability of five robots in a production line is 0.95. The reliability of the system is given b
y R(s)=R1*R2*R3*R4*R5. Therefore, R(x)5=0.95, or R(x)=0.9897.
4. A system consists of four components in parallel with two components having reliability of 0.9 and two others ha
ving reliability of 0.8 at the end of one year. What is the system reliability at the end of one year?
a) 0.9996
b) 0.8000
c) 0.7000
d) 0.5180
Answer: a
Explanation: System reliability for parallel components is given by R(s)=1-(1-R1)2(1-R2)2 or, R(s)=1-(1-0.9)2(1-0.
8)2 = 0.9996.
5. For a 2-out-of-3 system, each component has reliability of 0.9. What is the reliability of the system?
a) 0.942
b) 0.854
c) 0.972
d) 0.999
Answer: c
Explanation: The reliability of the system is given by R(s)=P(X=2)+P(X=3), or R(s)=(3C2)(0.9)2(0.1)1+(3C3)(0.9)3
(0.1)0=0.243+0.729=0.972.
6. For a 3-out-of-4 system, each component has reliability of 0.97. What is the reliability of the system?
a) 0.9148
b) 0.9248
c) 0.9448
d) 0.9947
Answer: d
Explanation: The reliability of the system is given by R(s)=P(X=3)+P(X=4), or R(s)=(4C3)(0.97)3(0.03)1+(4C4)(0.
97)4(0.03)0=0.1095+0.8852=0.9947.
7. If the failure rate of the system is 0.000128 units, what is the mean time to fail?
a) 7812.5 units
b) 7830.5 units
c) 4530.5 units
d) 9821.5 units
Answer: a
Explanation: If the failure rate of the system is given by MTTF = 1/λs=1/0.000128, or MTTF=7812.5 units. MTTF r
efers to the mean time to fail.
8. If the failure rate is 6.67 x 10-6 failures/hr, calculate reliability for a period of 1000 hours.
a) 98.45%
b) 99.34%
c) 97.56%
d) 94.67%
Answer: b
Explanation: The reliability is given by R(t)=e-λt. Here, t=1000 hours and λ=6.67×10-6 failures/hr. So, reliability=9
9.34%.
9. If the time to fail for 3 components are 807, 820, and 810, calculate mean time to failure.
a) 808.34
b) 810.34
c) 812.34
d) 814.34
Answer: c
Explanation: If the time to fail for 3 components are 807, 820, and 810, then
10. If the reliability is 0.3012 and the period of 1000 hours, calculate failure rate per hour.
a) 0.0010
b) 0.0012
c) 0.0014
d) 0.0016
Answer: b
Explanation: The reliability is given by R(t)=e-λt. If t=1000 hours, R=0.3012, then, λ=0.0012 failures/hr.
1. Who is the father of Toyota Production System (TPS)?
a) Ohno
b) Deming
c) Crosby
d) Taguchi
Answer: a
Explanation: The father of Toyota Production System is Ohno. The concept of Toyota Production System is popular
ly known as Lean Manufacturing in North America.
2. ‘Muda’ refers to waste in Japan.
a) True
b) False
Answer: a
Explanation: ‘Muda’ refers to waste in Japan. The seven types of wastes were categorized by Taiichi Ohno.
3. Mura and Muri refer to _____ and _____ respectively.
a) Unevenness, waste
b) Unevenness, overburden
c) Overburden, waste
d) Overburden, poka-yoke
Answer: b
Explanation: Mura and Muri refer to unevenness and overburden respectively. The concept of Lean has been develo
ped around eliminating the three types of deviations showing inefficient allocation of resources.
4. Muda Type 1 refers to non-value-added activities in the processes that are important for the end customer.
a) True
b) False
Answer: a
Explanation: Muda Type 1 refers to non-value-added activities in the processes that are important for the end custom
er. Muda Type 2 refers to non-value-added activities in the processes that are unnecessary for the end customer.
5. Inspection and safety testing are examples of Muda ____
a) Type 4
b) Type 3
c) Type 2
d) Type 1
Answer: d
Explanation: Inspection and safety testing are examples of Muda Type 1. They do not add any value to the final pro
duct but are necessary for the end customer.
6. Which of the following terms in the seven types of wastes categorized by Ohno considers the movement of produ
ct between manufacturing processes as no value-addition task, expensive and can cause damage to the product?
a) Overproduction
b) Waiting
c) Transportation
d) Excessive inventory
Answer: c
Explanation: ‘Transportation’ refers to the movement of product between manufacturing processes as no value-addit
ion task, expensive and can cause damage to the product. It should be avoided as much as possible.
7. Which of the following terms in the seven types of wastes categorized by Ohno considers the waiting of one proc
ess to begin while the other one gets over?
a) Overproduction
b) Waiting
c) Transportation
d) Excessive inventory
Answer: b
Explanation: ‘Waiting’ refers to the waiting of one process to begin while the other one gets over. Operations flow
must be smooth and continuous.
8. Which of the following does not belong to the seven types of wastes categorized by Ohno?
a) Inappropriate processing
b) Excess inventory
c) Unnecessary motion
d) Quality
Answer: d
Explanation: Inappropriate processing, excess inventory, and unnecessary motion belong to the seven types of waste
s categorized by Ohno. Defects also belong to the seven types of wastes categorized by Ohno.
9. Which of the following is a visual and/or audible communication system that calls for support or attention in a pro
cess whenever needed?
a) Poka-yoke
b) Benchmarking
c) Andon
d) Muda
Answer: c
Explanation: Andon is a visual and/or audible communication system that calls for support or attention in a process
whenever needed. It could be a cord, light, or a flag.
10. Which philosophy tells us that we need to go out of the office and visit the plant floor where the real action occu
rs?
a) Benchmarking
b) FMEA
c) Gemba
d) Andon
Answer: c
Explanation: The Gemba is the philosophy that tells us we need to go out of the office and visit the plant floor where
the real action occurs. It helps in getting first-hand observation and by talking with employees on the plant floor.
1. Which of the following refers to ‘Level Scheduling’?
a) Andon
b) Muda
c) Heijunka
d) Muri
Answer: c
Explanation: Heijunka is a Japanese word that refers to ‘Level Scheduling’. It reduces lead time and inventory.
2. Which of the following is not a benefit of Heijunka?
a) Predictability
b) Flexibility
c) Stability
d) Uncertainty
Answer: d
Explanation: Predictability, Flexibility, and Stability are the benefits of Heijunka. It helps in avoiding inefficiencies i
n manufacturing by putting production close to customer demand.
3. Calculate Takt Time when there are 500 minutes in work day and the customer demand is 500 units a day.
a) 1 minute
b) 2 minutes
c) 3 minutes
d) 4 minutes
Answer: a
Explanation: Takt Time = Net available work time / Customer demand, or, Takt time=500/500=1 minute. Takt Time
is an important parameter measured in lean manufacturing.
4. Which of the following is the meaning of the word HoshinKanri which is extensively used in strategic planning?
a) Visual communication
b) Policy deployment
c) Audio communication
d) Benchmarking
Answer: b
Explanation: HoshinKanri refers to policy deployment. It is utilized for ensuring that the strategic goals of the comp
any is driven by progress and action at every level within the company.
5. HoshinKanri eliminates wastes that originate from poor communication and inconsistent direction.
a) True
b) False
Answer: a
Explanation: HoshinKanri eliminates wastes that originate from poor communication and inconsistent direction. It is
a progress and action driven strategic planning method.
6. The implementation of HoshinKanri begins with a strategic plan.
a) True
b) False
Answer: a
Explanation: The implementation of HoshinKanri begins with a strategic plan. It is developed by top management. T
he plan should focus on effectiveness. It can be evolutionary or revolutionary.
7. In HoshinKanri, the tactics are laid out by ________
a) Top management
b) Middle management
c) Supervisors
d) Team Leaders
Answer: b
Explanation: In HoshinKanri, the tactics are laid out by middle management. Supervisors and team leaders at the pla
nt floor level work out the operational details needed in implementing tactics.
8. Which of the following wastes is not eliminated by implementation of continuous flow?
a) Inventory
b) Waiting time
c) Transport
d) Quality
Answer: d
Explanation: The implementation of continuous flow leads to elimination of wastes like inventory, waiting time, and
transport. Quality is a desired characteristic.
9. Continuous flow is a technique of manufacturing where work-in-process smoothly flows through production with
______ buffers between various steps of the manufacturing process.
a) Minimal or no
b) Maximum
c) Sometimes minimal
Answer: a
Explanation: Continuous flow is a technique of manufacturing where work-in-process smoothly flows through prod
uction with minimal or no buffers between various steps of the manufacturing process. It eliminates wastes like inve
ntory, waiting time, and transport.
10. Bottleneck analysis ______
a) Reduces throughput
b) Decreases throughput
c) Improves throughput
Answer: c
Explanation: Bottleneck analysis improves throughput. It does so by strengthening the weakest link in the manufactu
ring process.
1. JIT is a long-term approach to process improvement.
a) True
b) False
Answer: a
Explanation: Yes, JIT is a long-term approach to process improvement. It requires enormous commitment and it tak
es a lot of time before it gets implemented correctly.
2. Which of the following is not related with JIT implementation?
a) Pull System
b) Push System
c) Zero inventory
d) Zero lead time
Answer: b
Explanation: JIT is a pull system. On successful implementation of JIT, the production system inherits the concepts
of zero inventory and zero lead time.
3. MRP is a ____ system and JIT is a _____ system.
a) pull, pull
b) push, push
c) push, pull
d) pull, push
Answer: c
Explanation: MRP is a push system and JIT is a pull system. JIT refers to Just-in-time and MRP refers to Materials
Requirement Planning.
4. Which of the following are not results of successful implementation of JIT?
a) Improved quality
b) Sporadic improvement of productivity
c) Elimination of waste
d) Reduction in cost of operations
Answer: b
Explanation: On successful implementation of JIT, a production system has improved quality, waste elimination, an
d reduction in cost of operations. It also achieves continuous improvement of productivity.
5. According to conventional approach, inventory is ______ and according to JIT, inventory is ______
a) necessary, unnecessary
b) unnecessary, necessary
c) necessary, necessary
d) unnecessary, unnecessary
Answer: a
Explanation: According to conventional approach, inventory is necessary and according to JIT, inventory is unneces
sary. JIT refers to the Just-in-Time manufacturing approach.
6. According to JIT, balanced production is efficient.
a) True
b) False
Answer: a
Explanation: According to JIT, balanced production is efficient. It considers faster production than necessary as a w
aste.
7. Which of the following is not a principle of JIT manufacturing?
a) Total Quality Management

b) Production Management
c) MRP
d) Supplier Management
Answer: c
Explanation: Total quality management, production management, and supplier management are principles of JIT ma
nufacturing. In addition, inventory management and human resource management are also essential.
8. Which of the following is not a benefit of JIT?
a) Reduction in throughput time

b) Improvement in quality
c) Improvement in productivity
d) High reliance on suppliers
Answer: d
Explanation: Reduction in throughput time, improvement in quality, and improvement in productivity are benefits of
JIT. High reliance on suppliers is a disadvantage of JIT.
9. Which of the following is not a disadvantage of JIT?
a) Danger of lost sales

b) Danger of disrupted production
c) Less time for quality control
d) Greater flexibility
Answer: d
Explanation: Danger of lost sales, danger of disrupted production due to non-arrival of supplies, less time for quality
control on arrival of material are the disadvantages of JIT. JIT provides greater flexibility which is an advantage.
10. Which of the following is not an advantage of JIT?
a) Greater flexibility
b) Workforce participation
c) May lose bulk-buying discounts
d) Simplified scheduling and control
Answer: c
Explanation: Greater flexibility, workforce participation, and simplified scheduling and control are the advantages of
JIT. The aspect of losing bulk-buying discounts is a disadvantage of JIT.
11. Which of the following is not an advantage of JIT?
a) Time-based competition
b) Increased ordering costs
c) Streamline manufacturing operations
d) Reduced cost of scrap
Answer: b
Explanation: Time-based competition, streamline manufacturing operations, and reduced cost of scrap are the advant
ages of JIT. Increased ordering costs is a disadvantage of JIT.
12. Which of the following is not a benefit of JIT?
a) Better utilization of personnel

b) Reduced space requirements
c) High transaction costs
d) Reduced inventory
Answer: c
Explanation: Better utilization of personnel, reduced space requirements, and reduced inventory are benefits of JIT.
High transaction cost is a disadvantage of JIT.
1. Which of the following means ‘visual cards’?
a) Poka-yoke
b) 5S
c) Muda
d) Kanban
Answer: d
Explanation: Kanban means visual cards. It is a visual aid that triggers action. Kanban is utilized in lean manufacturi
ng and just-in-time manufacturing.
2. C-Kanban is also known as _______
a) P- Kanban
b) Production Kanban
c) Withdrawal Kanban
d) Poka-Yoke
Answer: c
Explanation: C-Kanban is also known as Withdrawal Kanban. ‘C’ stands for conveyance in C-Kanban.
3. Withdrawal Kanban is also known as Move Kanban.
a) True
b) False
Answer: a
Explanation: Withdrawal Kanban is also known as Move Kanban. Conveyance Kanban, Withdrawal Kanban and M
ove Kanban all mean the same.
4. P-Kanban is also known as Production Kanban.

a) True
b) False
Answer: a
Explanation: P-Kanban is also known as Production Kanban. P-Kanban and C-Kanban are the two main types of Ka
nban cards.
5. Calculate number of Kanbans if the hourly demand is 200 units, lead time is 12 hours, container capacity is 144 u
nits, and variation in lead time is 15%.
a) 23
b) 22
c) 21
d) 20
Answer: d
Explanation: Number of Kanban is given by the formula DT(1+x)/C. So, number of Kanban=((200*12)(1+0.15))/14
4=20.
6. _______ signals the need to produce more parts and ______ signals the need to deliver more parts to the next wor
k center.
a) P-Kanban, C-Kanban
b) P-Kanban, P-Kanban
c) C-Kanban, C-Kanban
d) C-Kanban, P-Kanban
Answer: a
Explanation: P-Kanban signals the need to produce more parts and C-Kanban signals the need to deliver more parts t
o the next work center. P-Kanban and C-Kanban are the two main types of Kanban cards.
7. Which of the following does not belong to the five principles of lean?
a) Identifying Value
b) Mapping the value stream
c) Creating flow
d) Establishing push
Answer: d
Explanation: The five key principles of lean were given by Womack and Jones. They are identifying value, mapping
the value stream, creating flow, establishing pull, and seeking perfection.
8. Which of the following is not an example of visual factory tools?
a) Visual indicators
b) Visual displays
c) Visual controls
d) Benchmarking
Answer: d
Explanation: Visual indicators, visual displays, and visual controls are examples of visual factory tools. They simplif
y information and reduce time and resources.
9. Which of the following is not a benefit of a visual factory?
a) Safer workplace
b) Improved productivity
c) Lower profits
d) Improved output
Answer: c
Explanation: Safer workplace, improved productivity, and improved output are benefits of a visual factory. In fact, t
here are higher profits due to more efficient processes.
1. One-piece flow is also known as single-piece flow in manufacturing.
a) True
b) False
Answer: a
Explanation: One-piece flow is also known as single-piece flow in manufacturing. It is quite common in lean organi
zations.
2. Which of the following is not an advantage of one-piece flow used in production?
a) Early detection of defects

b) Flexibility for customization
c) Reduction of amount of work in progress
d) Inflexible in meeting customer demands
Answer: d
Explanation: Early detection of defects, flexibility for customization, and flexibility in meeting customer demands ar
e the advantages of one-piece flow used in production in lean organizations. It also reduces the amount of work in pr
ogress.
3. Which of the following refers to the term ‘autonomation’?
a) Poka-yoke
b) Jidoka
c) Andon
d) 5S
Answer: b
Explanation: The term Jidoka refers to ‘autonomation’. It is widely used in the Toyota Production System and Lean
Manufacturing.
4. Which of the following refers to ‘automation with a human touch’?
a) Autonomation
b) Automation
c) Kaizen
d) Benchmarking
Answer: a
Explanation: Autonomation refers to ‘automation with a human touch’. It is also described as ‘intelligent automation
’.
5. The first step in applying Jidoka is _______
a) Discovering abnormality
b) Stopping the process
c) Fixing the immediate problem
d) Investigating and solving the root cause
Answer: a
Explanation: The first step in applying Jidoka is discovering abnormality followed by stopping the process. After thi
s, the immediate problem is fixed. At the end, investigation and solving the root cause is done.
6. Which of the following is not the aim of demand management?
a) Improving forecast accuracy

b) Lessen investment in inventory
c) Creation of effective balance between demand and supply
d) Increase investment in inventory
Answer: d
Explanation: Improving forecast accuracy, lessen investment in inventory, and creation of effective balance between
demand and supply are the primary goals of demand management. It is a lean tool.
7. Which of the following is a type of plant layout in which machines and equipment are arranged according to their
function?
a) Cellular layout
b) Process layout
c) Fixed position layout
d) Combined layout
Answer: b
Explanation: In process layout, machines and equipment are arranged according to their function. For example, the d
rilling department, paint department etc.
8. Which type of plant layout utilizes the merits of both process and product layout?
a) Product layout
b) Fixed position layout
c) Process layout
d) Combined layout
Answer: d
Explanation: Combined layout utilizes the merits of both process and product layout. It is also known as hybrid layo
ut.
9. In which type of plant layout machines are grouped into cells?
a) Fixed position layout

b) Cellular layout
c) Combined layout
d) Process layout
Answer: b
Explanation: In cellular layout, machines are grouped into cells. It is commonly used in lean organizations.
10. Which of the following is not an advantage of cellular manufacturing?
a) Increases flexibility
b) Increases transparency
c) Decreases overall productivity
d) Reduces changeover time
Answer: c
Explanation: Cellular manufacturing increases flexibility. It introduces transparency. It reduces changeover time. In
addition, it also increases productivity.
11. Product layout is generally used for standardized goods.
a) True
b) False
Answer: a
Explanation: Product layout is generally used for standardized goods. The process layout is generally used for custo
mized goods.
12. Which type of plant layout is also known as static layout?
a) Process layout
b) Cellular layout
c) Product layout
d) Fixed position layout.
Answer: d
Explanation: Fixed position layout is also known as static layout. Examples: Manufacturing of hydraulic turbines, st
eam turbines, boilers, ships etc.
13. Cellular manufacturing _______ teamwork and communication between employees and departments.
a) enhances
b) depreciates
c) reduces
d) obstructs
Answer: a
Explanation: Cellular manufacturing enhances teamwork and communication between employees and departments. I
t is a type of product layout where manufacturing is done in cells. It is widely used in lean organizations.
1. ___ is a tool for monitoring how lean principles are working in an organization.
a) Poka-yoke
b) Andon
c) Gemba
d) Lean Audit
Answer: d
Explanation: Lean Audit is a tool for monitoring how lean principles are working in an organization. It can help you
identify wastes in the organization and the need to eliminate them.
2. Which of the following is not a goal of lean audit?
a) Improve overall efficiency

b) Increase waste
c) Reduce waste
d) Lower production costs
Answer: b
Explanation: Improving overall efficiency, reducing waste and lowering production costs are the goals of lean audit.
Lean audits ideally should be performed by a third party.
3. Which lean philosophy says that things must be done right the first time and every time?
a) Gemba
b) Right First Time
c) Poka-Yoke
d) Kanban
Answer: b
Explanation: ‘Right First Time’ is a lean philosophy that says that things must be done right the first time and every
time. The implementation of this concept requires deep understanding of manufacturing processes and involves plan
ning.
4. According to SMART goals, what does the letter ‘S’ refer to?
a) Smart
b) Standard
c) Subject
d) Specific
Answer: d
Explanation: According to SMART goals, the letter ‘S’ stands for ‘specific’. It means that a goal must be based on a
ctual facts and figures and must be concrete.
5. According to SMART goals, what does the letter ‘M’ refer to?
a) Multiple
b) Measurable
c) Magnitude
d) Medium
Answer: b
Explanation: According to SMART goals, the letter ‘M’ stands for ‘measurable’. It means results must be measurabl
e and quantified.
6. According to SMART goals, what does the letter ‘A’ refer to?
a) Abstract
b) Attainable
c) Ask
d) Abstain
Answer: b
Explanation: According to SMART goals, the letter ‘A’ stands for attainable. It means goals must be realistic and be
attainable. If they are impossible in nature, it can also hurt employee morale.
7. According to SMART goals, what does the letter ‘R’ refer to?
a) Realistic
b) Range
c) Refrain
d) Retain
Answer: a
Explanation: According to SMART goals, the letter ‘R’ stands for realistic. With the given available resources and ti
me, goals must be realistic and achievable.
8. According to SMART goals, what does the letter ‘T’ refer to?
a) Time-based
b) Train
c) Tough
d) Try
Answer: a
Explanation: According to SMART goals, the letter ‘T’ refers to time-based. A realistic date for task completion mu
st be realized without being too ambitious and considering the given available resources and time.
9. SMED stands for Single-Minute Exchange of Dies.
a) False
b) True
Answer: b
Explanation: SMED stands for Single-Minute Exchange of Dies. It is a system for reducing equipment changeover ti
me.
10. SMED aims to convert as many changeover steps as possible to external elements.
a) True
b) False
Answer: a
Explanation: SMED aims to convert as many changeover steps as possible to external operations. External elements
refer to operations that can be completed while the equipment is running.
11. Which of the following is not a benefit of SMED?
a) Lower manufacturing cost

b) Smaller lot sizes
c) Lower inventory levels
d) Larger lot sizes
Answer: d
Explanation: Lower manufacturing cost, smaller lot sizes, and lower inventory level are benefits of SMED. It impro
ves responsiveness to customer demand and leads to smoother startups.
12. Which of the following is a tool utilized to visually map the flow of production?
a) Gemba
b) Automation
c) Value Stream Mapping
d) Benchmarking
Answer: c
Explanation: Value Stream Mapping is a tool utilized to visually map the flow of production. It shows the flows of g
oods between supplier and customer through an organization.
13. Which of the following is a workplace efficiency tool designed to combine product flow and information flow al
ong with any other useful data?
a) 5S
b) Seven Wastes
c) Value Stream Mapping
d) Poka-Yoke
Answer: c
Explanation: Value Stream Mapping is a workplace efficiency tool designed to combine product flow and informati
on flow along with any other useful data. It is done to plan, implement, and improve the lean foundations.
1. IIoT refers to the Industrial Internet of Things.
a) True
b) False
Answer: a
Explanation: IIoT refers to the Industrial Internet of Things. It refers to all the industrial devices that contain sensors
and are connected to wireless networks. It allows data accumulation and sharing.
2. Which of the following is not a benefit of IIoT?
a) Faster decision making

b) Better decision making
c) Better understanding of business processes
d) Lack of employee motivation
Answer: d
Explanation: Faster decision making, better decision making, and better understanding of business processes are so
me of the benefits of IIoT. In a progressive atmosphere like that in an agile organization workers feel very motivated
.
3. IIoT can be used in manufacturing industries to understand when machines need servicing which _____ downtim
e.
a) reduces
b) increases
c) remain the same
d) cannot be determined
Answer: a
Explanation: IIoT can be used in manufacturing industries to understand when machines need servicing which reduc
es downtime. It can also be used in the manufacturing industry to get a better idea about production lines.
4. IIoT can be used in utilities industries to ______ the cost of sending staff to remote areas by self-monitoring.
a) decrease
b) increase
c) sometimes decrease
Answer: a
Explanation: IIoT can be used in utilities industries to decrease the cost of sending staff to remote areas by self-moni
toring. IIoT refers to the Industrial Internet of Things.
5. Transport companies can use IIoT to monitor their vehicle fleet.
a) True
b) False
Answer: a
Explanation: Transport companies can use IIoT to monitor their vehicle fleet. Retailers can also use IIoT to detect bo
ttlenecks in supply chain.
6. ERP refers to _________
a) Efficient Resource Planning

b) Enterprise Resource Planning
c) Engineering Resource Planning
d) Effective Resource Planning
Answer: b
Explanation: ERP refers to Enterprise Resource Planning. It helps in creating a lean and competitive advantage.
7. AR and VR refers to ______ respectively.

a) augmented reality, virtual reality
b) artificial reality, virtual reality
c) artificial reality, viscous reality
d) augmented reality, viscous reality
Answer: a
Explanation: AR and VR refers to augmented reality and virtual reality respectively. These technologies are getting i
mplemented and are considered as part of the latest trends in manufacturing.
8. AR and VR can ______ inspection time in industries.
a) decrease
b) increase
c) either decrease or increase
Answer: a
Explanation: AR and VR can decrease inspection time in industries. AR refers to augmented reality and VR refers to
virtual reality.
9. AR and VR can _____ in error detection in industries.
a) create hurdles
b) create problems
c) assist
d) create bottlenecks
Answer: c
Explanation: AR and VR can assist in error detection in industries. These latest technologies are finding extensive us
e in different industries and help the workers in completing their tasks faster.
10. Which of the following is not a benefit of 3D printing?
a) It is faster
b) It is expensive
c) It is cost-effective
d) It takes a lot of time
Answer: d
Explanation: 3D printing is faster, less expensive. It is also cost-effective. It is extensively used by product designers
for testing and troubleshooting purposes.
11. Which of the following is a term referring to the requirement of protection against ransomware and malware as
more and more devices get integrated in manufacturing industries?
a) Cybersecurity
b) 3D Printing
c) Augmented Reality
d) Virtual reality
Answer: a
Explanation: Cybersecurity refers to the requirement of protection against ransomware and malware as more and mo
re devices get integrated in manufacturing industries. It is a major concern for companies of all types and sizes.
12. Which among the following is not a term that can be associated with a smart factory?
a) Automation
b) Artificial intelligence
c) Extremely labor intensive
d) IIoT
Answer: c
Explanation: Automation, artificial intelligence, and IIoT are concepts that can be related to a smart factory. Smart f
actories are less labor intensive.
13. Which of the following is a virtual representation of a real-world product or asset?
a) Poka-Yoke
b) Andon
c) Digital Twin
d) 5S
Answer: c
Explanation: Digital Twin acts like a virtual representation of the real world products or assets. It can be used in ind
ustries in areas like design customization, engineering, operations and production.
1. Which of the following is not associated with Agile Manufacturing?
a) Operational Flexibility
b) Bottom-up innovation
c) Operator augmentation
d) Slow approach
Answer: d
Explanation: Agile manufacturing focuses on operational flexibility, bottom-up innovation, and operator augmentati
on. It also emphasizes on rapid iteration.
2. Agile Manufacturing focuses on faster response to customer demands.
a) True
b) False
Answer: a
Explanation: Agile Manufacturing focuses on faster response to customer demands. It does so while empowering wo
rkers to innovate.
3. Which of the following is not an example of changing customer expectations which essentially leads us to focus o
n agile manufacturing?
a) Product customization
b) Slow delivery
c) Fast delivery
d) Cheaper production
Answer: b
Explanation: We are having changes not only in technology but also in customer expectations. Customers expect pro
duct customization, faster delivery, and cheaper production.
4. Which of the following is not a reason for organizations switching to agile manufacturing?
a) Constant technological development

b) Increasing complex supply chain
c) Higher customer standards
d) Increased manpower
Answer: d
Explanation: Constant technological development, increasing complex supply chain, and higher customer standards
are some of the reasons for organizations to switch to agile manufacturing. There are new technologies appearing ev
ery day and manufacturing experiences more disruptions.
5. Which of the following is not a common idea between lean manufacturing and agile manufacturing?
a) Productivity
b) Empowering people
c) Response to customer demands
d) Reduction in waste
Answer: d
Explanation: Both lean manufacturing and agile manufacturing focuses on the ideas of productivity, empowering pe
ople, and response to customer demands. They both focus on increasing quality. But, lean manufacturing alone focu
ses on reduction in waste. It is not a central idea in agile manufacturing. Agile manufacturing focuses on flexibility a
nd bottom-up innovation.
6. ______ refers to replacing workers with machines and ______ refers to enhancing workers’ capabilities through t
echnology.
a) Innovation, augmentation
b) Automation, augmentation
c) Augmentation, automation
d) Innovation, automation
Answer: b
Explanation: Automation refers to replacing workers with machines and augmentation refers to enhancing workers’
capabilities through technology. Augmentation is one of the principles of agile manufacturing.
7. Agile manufacturing focuses on a bottom-up approach.
a) True
b) False
Answer: a
Explanation: Agile manufacturing focuses on a bottom-up approach. It abandons the traditional hierarchical top-dow
n approach and inherits the flexible bottom-up approach.
8. Which of the following is not an advantage of the bottom-up approach of agile manufacturing?
a) Shop floor workers have a voice

b) Low engagement
c) High value products and processes
d) Seamless flow of ideas
Answer: b
Explanation: By implementation of the bottom-up approach of agile manufacturing, the shop floor workers in an org
anization get a voice. There is a seamless flow of ideas across all the layers of the organization. It also leads to high
value products and processes.
9. Which of the following is not a reason for organizations to adopt flexible systems under agile manufacturing?
a) Increasing fluctuations in demand

b) Economic factors
c) Political factors
d) Waterfall model
Answer: d
Explanation: Increasing fluctuations in demand, labor rates, input prices along with economic factors, environmental
factors, political factors, social factors and political factors are some of the reasons for organizations to adopt flexibl
e systems under agile manufacturing. Agile concept was initially brought in to move away from the Waterfall Model
.
10. Which of the following is not related to an agile organization?
a) Silo mentality
b) Real-time communication and work management tools
c) Interactive digital work instructions
d) Concept of hackathons
Answer: a
Explanation: Agile organizations follow bottom-up approach and there is seamless exchange of ideas and directives.
It abandons the silo mentality often associated with traditional hierarchical approach.
11. Which of the following is not found in an agile organization?
a) Accountability
b) Transparency
c) Collaborations
d) Leaders ruling over employees
Answer: d
Explanation: Accountability, transparency and collaborations are crucial within teams in an agile organization. Lead
ers do not rule over employees but rather focus on augmentation.

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a) Markets have become more competitive

a) To sell the washing machine

4. How can quality be quantified? (Q=Quality, P=Performance, E=Expectations)

7. What does the abbreviation A.S.Q stand for?

a) American Society for Quality

14. Choose the incorrect statement related to quality improvement.

a) The organization has ensured that customer satisfaction is retained

1. The two categories of products are _____ and _____

2. Which of the following does not fit in the category of Goods?

3. Which of the following does not fit in the category of Services?

7. Someone who receives or is affected by the product or process is called a _______

8. The two types of customers are ______ and ______

a) Clients/end users who buy the product

15. Which of the following is not a measure of Product Deficiency?

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a) It should boil water efficiently

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6. The dimension of ‘product quality’ which appreciates agile manufacturing is ________

********** Join:- https://t.me/AKTU_Notes_Books_Quantum **********

a) Customer expectations change over a period of time

a) Company P is more competent than Company Q

15. Which of the following is a dimension of ‘service quality’?

********** Join:- https://t.me/AKTU_Notes_Books_Quantum **********

a) Total Quality Management

a) Total Quality Forum of USA

a) Total Quality Forum of USA

a) Total Quality Forum of USA

a) Company M follows traditional management, Company N follows TQM

a) Company A follows traditional management, Company B follows TQM

a) Company E follows traditional management, Company F follows TQM

********** Join:- https://t.me/AKTU_Notes_Books_Quantum **********

1. Which of the following is a principle of TQM?

2. The customer determines the level of quality.

3. To attain customer satisfaction, which of the following is mandatory in TQM?

a) Total employee involvement

5. Benchmarking is a TQM technique.

6. Which of the following is a principle of TQM?

a) Strategic, random approach

8. What is the kind of focus put in a company’s processes in TQM?

9. Decisions in a company which follows TQM is _______

10. For proper implementation of TQM, we need ________________

a) To form a confidential group within the company

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2. Attaining customer satisfaction is the heart of TQM.

a) The TQM program fails to achieve the desired target

5. In TQM suppliers are treated as _______

a) Yes, everyone is recognized in a company which follows TQM

8. In tradition management, Inspection philosophy is followed, and in TQM ________

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a) Identified the wrong age group

2. The inability to change the organizational structure is a barrier to TQM implementation.

a) Yes, only 25 members were sufficient for TQM implementation

a) Lack of management commitment to follow TQM

a) There is no problem in delaying the implementation

7. Which of the following is a tangible benefit of following TQM?

a) Reduction in employee grievances

8. Which of the following is not a tangible benefit of following TQM?

9. The product quality after using TQM philosophy _______

a) Better company image

11. The working relationships after using TQM philosophy _______

12. Employee participation after using TQM philosophy _______

1. The two categories of products are _ and _

8. The two types of customers are and

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