Purchasing and Supply Management 16th Edition Johnson Test Bank

Purchasing and Supply Management 16th Edition Johnson Test Bank
Purchasing and Supply Management 16th Edition

Johnson Test Bank
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Purchasing and Supply Management, 16e (Johnson)
Chapter 7 Quality
1) Examples of prevention costs include:

A) employee training and awareness costs.
B) costs of pre-certifying and qualifying suppliers.
C) inspection and testing costs.
D) employee training and awareness costs, and costs of pre-certifying and qualifying suppliers.
E) employee training and awareness costs, costs of pre-certifying and qualifying suppliers, and
inspection and testing costs.
Answer: D
Difficulty: 3 Hard
Topic: The cost of quality
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Gradable: automatic
2) The real costs of quality:

A) tend to rise significantly with the cost of prevention.
B) rise significantly as defects increase in the finished product.
C) are incurred in the quality control department.
D) are easily identified by the accounting department.
E) are frequently overstated in an organization.
Answer: B
Difficulty: 2 Medium
Bloom's: Understand
Gradable: automatic
1
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written consent of McGraw-Hill Education.
3) Some estimates place the total costs of quality to be:
A) insignificant to the cost of the final product.
B) 10-20 percent of the final product cost.
C) 20-30 percent of the final product cost.
D) 30-40 percent of the final product cost.
E) 40-50 percent of the final product cost.
Answer: D
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
4) Deming's 14 points stress the importance of:

A) setting numeric quotas.
B) using slogans and targets for the workforce as a means of improving quality.
C) annual rating or merit systems.
D) dual sourcing as a means of improving quality costs.
E) ceasing dependence on inspection.
Answer: E
Difficulty: 1 Easy
Topic: Quality management tools and techniques
Bloom's: Remember
Gradable: automatic
5) A formal service quality evaluation process:

A) measures the gap between service expectations and performance perceptions.
B) is relatively simple and applicable for all types of services.
C) is performed exactly the same as it is for goods.
D) is impossible to quantify if the service is highly intangible.
E) is most easily done on the buyer's premises.
Answer: A
Bloom's: Understand
Gradable: automatic
2
6) Lean is a management philosophy that focuses on:
A) prevention, appraisal and internal failure costs.
B) data to reduce variation and waste.
C) maximizing customer value while eliminating waste.
D) the voice of the customer.
E) statistical quality control (SQC) techniques.
Answer: C
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
7) A supplier certification program:

A) adds cost to the supplier, but provides few benefits to the supplier.
B) may improve quality, but at best will not raise costs.
C) always improves quality, but usually at a higher purchase price.
D) may enable the buyer and seller to lower costs and improve quality.
E) typically costs more to implement than the value of the quality improvement.
Answer: D
Bloom's: Understand
Gradable: automatic
3
8) In statistical process control (SPC), special or assignable causes of variation:
A) are intrinsic to the process and will always be there unless the process is changed.
B) are outside, nonrandom problems such as breakdown of machinery, material variation, or
human error.
C) have everything to do with the underlying process and can only be eliminated by changing the
process.
D) are of secondary importance in quality control procedures used to detect and eliminate
variation.
E) can be present in a process that is fully capable of meeting specifications consistently.
Answer: B
Bloom's: Understand
Gradable: automatic
9) Quality function deployment:

A) seeks to understand what value represents to the customer.
B) is a system for deploying quality at supplier facilities.
C) provides direction on the appropriate level of product performance and which features should
be included.
D) seeks to understand what value represents to the customer and is a system for deploying
quality at supplier facilities.
E) seeks to understand what value represents to the customer, and provides direction on the
appropriate level of product performance and which features should be included.
Answer: E
Bloom's: Understand
Gradable: automatic
4
10) A six sigma (6σ) approach to quality:
A) means there are no more than 25 defects per million opportunities.
B) was developed by Japanese companies in the 1950s.
C) has no connection to the concept of zero defects.
D) focuses on preventing defects by using data to reduce variation and waste.
E) has soft goals such as happier customers and employees.
Answer: D
Bloom's: Understand
Gradable: automatic
11) Determination of the "best buy" is based on:

A) suitability for a given use.
B) a balance between price and quality.
C) technical considerations only.
D) the internal user or specifier's perceptions.
E) trade-offs among stakeholders (e.g., marketing, operations, and supply).
Answer: E
Topic: Defining quality
Bloom's: Understand
Gradable: automatic
12) A sampling technique in which every element in the population has an equal chance of being
selected is called:
A) additive sampling.
B) sequential sampling.
C) 100 percent testing.
D) random sampling.
E) cumulative sampling.
Answer: D
Bloom's: Understand
Gradable: automatic
5
13) Process variation that are intrinsic to the process are:
A) common, nonassignable causes of variation.
B) special or assignable causes of variation.
C) prevention costs.
D) internal failure costs.
E) external failure costs.
Answer: A
Bloom's: Understand
Gradable: automatic
14) If a process is stable and predictable:

A) the process averages a varying number of standard deviations.
B) common causes have been eliminated through process change.
C) the probability of it meeting customer specifications can be predicted.
D) it produces the same exact result each time the activity is performed.
E) random causes have been detected and eliminated.
Answer: C
Difficulty: 3 Hard
Bloom's: Understand
Gradable: automatic
15) ISO 9001:2015 provides a tested framework for a systematic approach to consistently
delivering product that satisfies customers' expectations by:
A) dictating how quality requirements should be met in every organization.
B) dictating scope and flexibility for quality system implementation.
C) assuming all national cultures will meet quality requirements the same way.
D) assuming all business sectors will meet quality requirements the same way.
E) providing a set of standardized requirements a quality system must meet.
Answer: E
Topic: ISO Quality Standards
Bloom's: Understand
Gradable: automatic
6
16) The process capability index (Cp) combines process spread and tolerance into one index and
indicates whether process variation is satisfactory.
Answer: TRUE
Topic: Statistical process control
Bloom's: Understand
Gradable: automatic
17) Operator action is not required when process output exceeds the upper control limit (UCL) or
dips below the lower control limit (LCL).
Answer: FALSE
Bloom's: Understand
Gradable: automatic
18) Internal failure costs include the costs of inspection, testing, and measuring product or
service quality.
Answer: FALSE
Difficulty: 1 Easy
Bloom's: Remember
Gradable: automatic
19) External failure costs include warranty costs and managerial time handling customer
complaints.
Answer: TRUE
Difficulty: 1 Easy
Bloom's: Remember
AACSB: Analytical Thinking
Gradable: automatic
7
20) The allocation between buyer and seller of the costs incurred when materials are rejected is
affected by the kind of materials rejected, trade customs, the buyer's cost accounting procedures,
and the positions of strength of each organization.
Answer: TRUE
Topic: Sampling, inspection, and testing
Bloom's: Remember
Gradable: automatic
21) Jidoka is a Japanese term for continuous improvement.
Answer: FALSE
Difficulty: 1 Easy
Topic: Lean enterprise
Bloom's: Remember
Gradable: automatic
22) Quality function deployment (QFD) is a comprehensive quality system that seeks to translate
customer requirements into specifications.
Answer: TRUE
Topic: Quality function deployment
Bloom's: Understand
Gradable: automatic
23) Reliability is the mathematical probability that a product will function for a stipulated period
of time.
Answer: TRUE
Difficulty: 1 Easy
Topic: Defining quality
Bloom's: Remember
Gradable: automatic
8
24) A process is deemed to be capable when there are no special assignable causes of variation,
only common causes.
Answer: TRUE
Bloom's: Understand
Gradable: automatic
25) ISO 14001:2015 focuses on compliance with federal, state, and provincial environmental
laws and regulations.
Answer: FALSE
Topic: ISO Quality Standards
Bloom's: Understand
Gradable: automatic
26) Total quality management (TQM) is a philosophy and system of management focused on
short-term success through statistical process control.
Answer: FALSE
Topic: Total quality management
Bloom's: Understand
Gradable: automatic
27) The six sigma (6σ) approach to quality uses the five-step methodology of: define, measure,
analyze, improve, and control (DMAIC).
Answer: TRUE
Difficulty: 1 Easy
Topic: Six sigma
Bloom's: Remember
Gradable: automatic
9
Purchasing and Supply Management 16th Edition Johnson Test Bank
28) Lean focuses on maximizing profitability while minimizing waste in the form of the costs of
quality (scrap, rework, and inspection).
Answer: FALSE
Topic: Lean enterprise
Bloom's: Understand
Gradable: automatic
29) The upper and lower control limits on a process control chart are set using customer
specifications.
Answer: FALSE
Bloom's: Understand
Gradable: automatic
30) It is reasonable to expect a supplier to simultaneously improve quality and lower costs.
Answer: TRUE
Difficulty: 3 Hard
Bloom's: Understand
AACSB: Analytical Thinking
Gradable: automatic
10
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1) Examples of prevention costs include:

2) The real costs of quality:

4) Deming's 14 points stress the importance of:

5) A formal service quality evaluation process:

7) A supplier certification program:

9) Quality function deployment:

11) Determination of the "best buy" is based on:

14) If a process is stable and predictable:

21) Jidoka is a Japanese term for continuous improvement.

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