Test Bank for Supply Management, 8th Edition: David N.

Burt

Test Bank for Supply Management, 8th Edition:

David N. Burt

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EXAMINATION QUESTIONS AND ANSWERS

Chapter 7 Managing for Quality

True/False Questions

1. Supply professionals that plan to guide their organization and chain to SM must understand how
to evaluate the management of quality within their own facilities and those of their suppliers.
Evaluation of the underlying philosophy, management system, facilitating tools and
methodologies of a supplier is the first step; however, SM calls for going beyond mere
evaluation to aiding in the development and improvement of supplier quality.

Answer: True

2. P-D-C-A describes the basic logic for data-driven continuous process improvement.

Answer: True

3. Sequential sampling continues the sample taking until the lot is either: fully inspected, rejected,
or accepted.

Answer: True

4. Product testing objectives in evaluating a potential supplier should be used to determine the
potential supplier's quality level and to compare quality levels of several suppliers.

Answer: True

5. Quality management is a major component of supply management's responsibility.

Answer: True

6. Supply management should participate creatively in the corporate quality management program
and in the firm's critical supplier quality efforts.

Answer: True

7. A SM firm views its quality system and the supplier's quality system as two parts of a single
integrated system.

Answer: True

8. The term “tool” emerged from the use of the methodologies in small group improvement efforts,
such as quality circles, wherein the group would focus on solving a problem by using a mix of
the methodologies.

Answer: True

9. Kaizen is synonymous with continuous improvement.

Answer: True
Burt, Petcavage and Pinkerton Supply Mangement, 8 th edition
 10. Just-in-time's two major tenets are: 1. Respect for people, and 2. Elimination of waste.

Answer: True

11. Wasteful activities do not add value to fulfilling the needs of the customer.

Answer: True

12. Supply professionals that plan to guide their organization and chain to SM need not concern
themselves with the management of quality within their own facilities and those of their
suppliers. A quality management department is usually responsible for quality.

Answer: False

13. P-D-C-A describes the basic logic for the “zero defects” movement.

Answer: False

14. All sampling plans continue sample taking until the lot is either: fully inspected, rejected, or
accepted.

Answer: False

15. Product testing objectives should be implemented after a supplier has been selected, not before
selection.

Answer: False

16. Quality management is a minor component of supply management's responsibility.

Answer: False

17. Supply management is not critically needed to participate in the corporate quality management
program.

Answer: False

18. A SM firm views its quality system and the supplier's quality system as two separate systems.

Answer: False

19. Kaizen is synonymous with Kanban.

Answer: False

20. Just-in-time's two major tenets are: 1. Supply chain management, and 2. Elimination of waste.

Answer: False

21. Wasteful activities add little value to fulfilling the needs of the customer.

Burt, Petcavage and Pinkerton Supply Mangement, 8 th edition

 Answer: True

Multiple Choice Questions

22. Which of the following individuals was not presented in the text as a quality guru?
A) Philip Crosby
B) Sheila Petcavage
C) Masaaki Imai
D) Genechi Taguchi
E) Joseph Juran

Answer: B

23. Which of the following points does not describe part of the evolution of quality management?
A) Prior to the 1980s, the gurus of quality influenced corporate disciples
B) The corporate disciples in turn influenced corporate philosophies that increased the
importance of quality management
C) The corporate disciples influenced the quality gurus
D) The corporate philosophy has essentially driven the selection of a management system
E) Today, quality has become a “hygiene factor.”

Answer: C

24. Which of the following is not one of Deming's fourteen points?

A) Use fear to drive change
B) Create constancy of purpose for continual improvement of product and service
C) Adopt the new philosophy for economic stability
D) Cease dependence on inspection to achieve quality
E) End the practice of awarding business on price tag alone

Answer: A

25. Which of the following is not one of Deming's fourteen points?

A) Improve constantly and forever the system of production and service
B) Institute training on the job
C) Adopt and institute modern methods of supervision and leadership
D) Drive out fear
E) Use inspection to ensure zero defects

Answer: E

26. Which of the following is not one of Deming's fourteen points?

A) Break down barriers between departments and individuals
B) Eliminate the use of slogans, posters and exhortations
C) Eliminate work standards and numerical quotas
D) Remove barriers that rob the hourly worker of the right to pride in workmanship
E) Utilize six sigma as a performance standard

Answer: E

Burt, Petcavage and Pinkerton Supply Mangement, 8 th edition

 28. Which of the following points is not true about Philip Crosby?
A) One of Crosby's best selling books was “Quality is Free”
B) Crosby developed the Cost of Quality model
C) One of Crosby's best selling books was “Quality without Tears”
D) Crosby believed strongly in the philosophy of Zero Defects
E) Crosby believed that companies should “Do it right the first time!”

Answer: B

29. Which of the following points is not true about Masaaki Imai?
A) Imai is the author of Kaizen
B) He developed the fishbone diagram
C) Imai believed in continuous Improvement, which calls for everyone to work for constant and
gradual improvement in every process
D) Imai was a strong supporter of just in time philosophy
E) Imai believes that supply management's focus within the Kaizen philosophy should be on
becoming flexible to meet fluctuating demand by reducing and even eliminating waste

Answer: B

30. Which of the following points is not true about Genechi Taguchi?
A) Taguchi developed the cause and effect diagram
B) Taguchi believes the goalpost philosophy underestimates the costs of poor quality
C) Taguchi advocates a Loss to Society model
D) Taguchi believes the in creating robust designs
E) Taguchi believes in using statistical experimentation to support producing to target
parameters

Answer: A

31. Which of the following points is not true about Joseph Juran?
A) Juran is the author of the Quality Control Handbook
B) Juran believes that upper management should establish specific goals to be reached
C) Juran espoused the philosophy of zero defects
D) Juran believes that upper management should establish plans for reaching goals
E) Juran believes upper management should base rewards on results achieved

Answer: C

32. Which of the following is not a quality management approach presented in the textbook?
A) Total Quality Management (TQM)
B) Continuous Improvement
C) Six Sigma
D) Quality Ensured in the Supply Triangle (QEST)
E) Quality Management System (QMS)

Answer: D

33. Which of the following is not a key element of Total Quality Management?
A) Recognition that quality is everyone's responsibility

Burt, Petcavage and Pinkerton Supply Mangement, 8 th edition

 B) Six sigma is the performance standard
C) Commitment by everyone in the organization
D) Continuous improvement of quality
E) Satisfaction of the customer

Answer: B

34. Which of the following is not a step in the Total Quality Management figure presented in the
textbook?
A) Establish TQM Management and Cultural Environment
B) Implement Inspection Procedures
C) Define Mission of Each Component of the Organization
D) Set Performance Improvement Opportunities, Goals and Priorities
E) Establish Improvement Projects

Answer: B

35. Which of the following is not a step in the Total Quality Management figure presented in the
textbook?
A) Establish Improvement Projects
B) Implement Projects Using Improved Methodologies
C) Evaluate
D) Establish Statistical Control
E) Review and Recycle

Answer: D

36. Generally, companies have three categories of classification of value added activities. Which is
not one of the three categories?
A) Value added but not necessary
B) Unnecessary and not value added
C) Necessary, but not value added
D) Value added

Answer: A

37. Which of the following is not one of the seven wastes?

A) Needless processing
B) Needless machine time
C) Underproduction
D) Holding excessive inventory
E) Defects

Answer: C

38. Which of the following is not one of the seven wastes?

A) All processing
B) Overproduction
C) Unneeded motion
D) Unneeded transportation
E) Defects

Burt, Petcavage and Pinkerton Supply Mangement, 8 th edition

 Answer: A

39. Which of the following is not true of the PDCA cycle?

A) Plan: review current performance, identify and target root causes of problems, devise
possible solutions and plan implementation
B) Do: pilot the planned solution
C) Check (or study): measure the results of the test
D) Act: refine and expand the solution to make it permanent
E) The cycle was originally developed by Deming

Answer: E

40. Which of the following is not true of Six Sigma?

A) Six Sigma is a broad and comprehensive system for building and sustaining business
performance, success, and leadership
B) The key focus is on processes
C) Measurement of both processes and products is critical to Six Sigma success
D) Six Sigma calls for zero defects
E) Statistical six sigma goal is near-perfection, 3.4 defects per million opportunities (DPMO)

Answer: D

41. Which of the following is not true of Six Sigma?

A) The lofty goal of statistical six sigma is used as a driver of organizational change
B) Six Sigma starts with the customer
C) Six Sigma provides a consistent metric
D) Six Sigma links the effort to an ambitious goal
E) Six Sigma requires ISO 9000:2000 registration

Answer: E

42. Which of the following is not part of the DMAIC Cycle?

A) Design
B) Measure
C) Analyze
D) Improve
E) Control

Answer: A

43. Which of the following is not true of Six Sigma at GE?

A) At GE, blackbelts receive three weeks of training, with follow-up exams and continued
learning through conference and other forums
B) A Greenbelt at GE is the lowest commitment level in Six Sigma
C) At GE, a Greenbelt receives training for a minimum of two weeks in Six Sigma
D) A Yellowbelt is the middle level at GE
E) At GE, every management employee is required to at least become a Greenbelt in Six Sigma

Answer: D

Burt, Petcavage and Pinkerton Supply Mangement, 8 th edition

 44. Which of the following is not a Six Sigma theme?
A) Genuine Focus on the Customer
B) Document, Document, Document
C) Data- and Fact-Driven
D) Process Focus
E) Proactive Management

Answer: B

45. Which of the following is not a Six Sigma theme?

A) Genuine Focus on the Customer
B) Proactive Management
C) Involvement of People
D) Boundaryless Collaboration
E) Drive for Perfection

Answer: C

46. Which of the following is not a principle of the Quality Management System (QMS)?
A) Customer focus
B) Leadership
C) Involvement of people
D) Drive for Perfection
E) Process approach

Answer: D

47. Which of the following is not a principle of the Quality Management System (QMS)?
A) System approach to management
B) Continual improvement
C) Proactive Management
D) Factual approach to decision making
E) Mutually beneficial supplier relationships

Answer: C

48. Which of the following is not a common tool of quality as presented in the textbook?
A) Quality Matrix
B) Pareto Charts
C) Cause and Effect Diagrams
D) Process Flow Charts
E) Run Plots

Answer: A

49. Which of the following is not a common tool of quality as presented in the textbook?
A) Documentation Diagram
B) Process Flow Charts
C) Frequency Histograms
D) Scatter Diagrams

Burt, Petcavage and Pinkerton Supply Mangement, 8 th edition

 E) Control Charts

Answer: A

50. Which of the following is not true of the costs of quality?

A) Prevention costs are costs to prevent poor quality in products or services
B) Maintenance is a prevention cost
C) Downtime is an appraisal cost
D) Inspection is an appraisal cost
E) Appraisal costs are costs associated with assuring conformance

Answer: C

51. Which of the following is not true of the costs of quality?

A) Prevention cost examples are maintenance, education, training, and surveys gauging
customer satisfaction
B) Failure costs result from products or services not conforming to requirements of customer
C) The two categories of failure costs are internal and external
D) Internal failure cost examples are scrap, disposing of scrap, rework, redoing inspection,
redoing testing, material review, and down grading
E) External failure cost examples are processing customer complaints, customer returns,
warranty claims, and product recalls

Answer: A

52. Which of the following is not a quality award?

A) Malcolm Baldrige Award
B) European Quality Award
C) ISO 9000
D) Deming Prize

Answer: C

53. Which of the following is not one of the four factors presented in the textbook that determine the
long-run quality level of a firm's purchased materials?
A) Complete and appropriate specifications
B) Selection of suppliers
C) Realistic understanding of quality requirements
D) Monitoring of suppliers' performance
E) Competitive capability of suppliers

Answer: E

54. When investigating the procurement requirements with respect to quality, the textbook
recommends doing all of the following except one activity. Which activity was not one of those
recommended?
A) Study the quality requirements
B) If possible, ensure that specifications are written in a manner that permits competition among
potential suppliers
C) Buy a sample and try it out to confirm the product meets quality requirements
D) Determine whether existing suppliers can build the desired quality

Burt, Petcavage and Pinkerton Supply Mangement, 8 th edition

Test Bank for Supply Management, 8th Edition: David N. Burt

E) Ensure the feasibility of the inspections and tests required to assure quality

Answer: C

55. Which of the following is generally not an option if inspection is needed and a rejection occurs?
A) Return the material to the supplier
B) Keep the material and refuse to pay the supplier
C) Keep some of the acceptable material and return the rest
D) Keep all the material and rework it

Answer: B

56. Which of the following is not a basic problem with inspection?

A) Duplication of inspection activity often occurs
B) Inspection does not help to identify sources of problems
C) Often results in a very large number of items being inspected
D) Defective items are found only after they are finished
E) Responsibility for quality is divided between inspector and supplier

Answer: B

57. To contribute most effectively to the organizational effort, supply management's role in the
quality program should include all of the following except one bullet. Which bullet does not
belong?
A) Participation in the development of specifications
B) Participation in the selection of appropriate quality control, inspection, and test requirements
C) Active involvement in analysis and development of proactive prevention measures at the
suppliers facility
D) Leading the design effort with quality, engineering and other functional areas reporting to the
supply manager
E) Subsequent monitoring and nurturing of the ongoing relationships between the buying and
supplying firms

Answer: D

Burt, Petcavage and Pinkerton Supply Mangement, 8 th edition

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