Student name:__________

TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
1) Broadly defined, quality refers to the ability of a product or service to occasionally meet
or exceed customer expectations.

⊚ true ⊚ false

2) An organization achieves quality by consistently meeting its competitors' standards.

⊚ true ⊚ false

3) Because courtesy is subjective, it cannot be considered a factor in service quality.

⊚ true ⊚ false

4) ISO 9000 standards stress continual improvement regardless of how good you currently
are.

⊚ true ⊚ false

5) The dimensions of quality are important for products but are not applicable in service
organizations.

⊚ true ⊚ false

6) Regardless of superior quality, consumers will not pay premium prices.

⊚ true ⊚ false

7) High performance and low prices are both considered to be dimensions of quality.

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⊚ true ⊚ false

8) The Baldrige Award can only be won by manufacturing organizations.

⊚ true ⊚ false

9) Quality of conformance refers to the degree to which goods and services conform to the
intent of the designers as documented in the specifications.

⊚ true ⊚ false

10) Quality of design refers to the intention of the designers to include or exclude certain
features in a product or service based on marketing and other information.

⊚ true ⊚ false

11) In market research, a group of consumers organized by marketing to express their

opinions about a product or service is called a steering committee.

⊚ true ⊚ false

12) Business organizations that achieve good quality benefit in a variety of ways, including a
positive reputation for quality, increased customer loyalty, and lower production costs.

⊚ true ⊚ false

13) User instructions and follow-up services after delivery are important elements of overall
product or service quality.

⊚ true ⊚ false

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14) Reducing the variability in our product or service is an important key to quality.

⊚ true ⊚ false

15) The dimensions of product and service quality are too abstract to be used as parameters
for product or service design.

⊚ true ⊚ false

16) The degree to which a product or service satisfies its intended purpose is determined by
design, conformance to design, cost, and reputation of the producer.

⊚ true ⊚ false

17) The degree to which a product or service satisfies its intended purpose is determined by
service after delivery, ease of use, design, and conformance to design.

⊚ true ⊚ false

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

⊚ true ⊚ false

19) Convenience, reliability, and assurance are dimensions of service quality.

⊚ true ⊚ false

20) Poor quality has a positive effect on productivity because it usually takes longer to
produce a good part.
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⊚ true ⊚ false

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

⊚ true ⊚ false

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

⊚ true ⊚ false

23) Customer expectations tend to change over time, affecting their perception of service
quality.

⊚ true ⊚ false

24) Cost of inspectors, testing, test equipment, and labs are examples of prevention costs.

⊚ true ⊚ false

25) Cost of inspectors, testing, test equipment, and labs are examples of appraisal costs.

⊚ true ⊚ false

26) Modern quality management emphasizes finding and correcting mistakes before they
reach the customer—catching the errors before they are shipped.

⊚ true ⊚ false

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27) Deming stresses that workers are primarily responsible for poor quality because very
often they fail to follow instructions.

⊚ true ⊚ false

28) According to Deming, it is the systems that management puts into place that are
primarily responsible for poor quality, not employees.

⊚ true ⊚ false

29) Juran describes quality management as a trilogy that consists of quality planning, quality
control, and quality improvement.

⊚ true ⊚ false

30) Juran describes quality management as a trilogy that consists of quality planning, control
of quality costs, and quality improvement.

⊚ true ⊚ false

31) Quality at the source means returning all defects to the source—our vendors.

⊚ true ⊚ false

32) Six Sigma programs have both management and technical components.

⊚ true ⊚ false

33) Crosby's concept of ''quality is free" means that it is less expensive to do it right initially
than to do it over.

⊚ true ⊚ false
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34) Quality certification refers to a process of 100 percent inspection to catch all defective
products before they leave the company; this allows every item to be certified defect free.

⊚ true ⊚ false

35) The customer is the focal point and customer satisfaction is the driving force in quality
management.

⊚ true ⊚ false

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

⊚ true ⊚ false

37) Serviceability, conformance, and reliability are dimensions of product quality.

⊚ true ⊚ false

38) Firms that wish to do business with the European Community can benefit from having a
quality management system that meets ISO 9000 standards.

⊚ true ⊚ false

39) Continuous improvement focuses on achieving major breakthroughs in product or

service quality.

⊚ true ⊚ false

40) So long as quality input resources are used to make a product, we can expect quality
output from the process.
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⊚ true ⊚ false

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

⊚ true ⊚ false

42) Suppliers are not included in quality assurance and quality improvement efforts in TQM;
they should worry about their own problems.

⊚ true ⊚ false

43) Companies that strive for zero defects in the products they deliver to their customers
must perform 100 percent inspection of the final product.

⊚ true ⊚ false

44) The PDSA cycle forms the conceptual basis for continuous improvement.

⊚ true ⊚ false

45) A control chart is a visual representation of the steps in a process.

⊚ true ⊚ false

46) The purpose of benchmarking is to establish a standard against which the organization's
performance can be judged and to identify a model for possible improvement.

⊚ true ⊚ false

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47) TQM expands the traditional view of quality beyond looking only at the quality of the
final product or service to looking at the quality of every aspect of the process.

⊚ true ⊚ false

48) Your benchmark organization must be chosen from your industry in order for its
methods to be applicable to your business.

⊚ true ⊚ false

49) A quality circle is amanagement team focused onimplementing major changes to

improve quality.

⊚ true ⊚ false

50) Total quality management attempts to involve everyone in an organization in the effort
to achieve quality.

⊚ true ⊚ false

51) There is a positive link between quality and productivity.

⊚ true ⊚ false

52) The expression "quality at the source" refers primarily to the practice of requiring each
of our vendors to provide quality parts and materials.

⊚ true ⊚ false

53) ISO standards aid in transferring technology to developing countries.

⊚ true ⊚ false

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MULTIPLE CHOICE - Choose the one alternative that best completes the statement or
answers the question.
54) In addition to correcting substandard work, employees have an ethical obligation to
_____ the quality problem as well.

A) prevent
B) offset
C) report
D) standardize
E) redesign

55) When an organization comes to the realization that there are quality problems in
products that are already in service, ethical approaches include:
(I) divulging the information to the public at large.(II) recalling, if possible, affected
products.(III) handling complaints on an individual rather than a systemic basis.

A) I and III
B) I and II
C) II and III
D) I, II, and III
E) Neither I, II, nor III

56) The quality certification that deals primarily with conformance to customer requirements
is ISO _____; ISO _____ is concerned primarily with the organization's effect on the
environment.

A) 9000; 14000
B) 24700; 9000
C) 14000; 9000
D) 9000; 24700
E) 14000; 24700

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57) ISO certification is similar to the Baldrige Award in its emphasis on

A) statistical tools.
B) self-appraisal.
C) teamwork.
D) outsourcing.
E) services.

58) ISO certification differs substantially from the Baldrige Award in that it

A) focuses primarily on quality teams.

B) emphasizes self-appraisal.
C) is an ongoing process.
D) is customer-driven.
E) is national rather than international.

59) Six-sigma programs involve both _____ and _____ components.

A) probabilistic; deterministic
B) logistical; managerial
C) statistical; probabilistic
D) managerial; technical
E) local; global

60) The "Control" phase of DMAIC is intended to ensure that

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 A) the proper subset of process inputs are monitored.
B) variability reduction is pursued.
C) data analysis is overseen.
D) inputs are closely monitored.
E) improvements are sustained.

61) Among the guiding principles of six sigma are

(I) Reduction of variation is an important goal.(II) Valid measurement is critical.(III) Outputs
determine inputs.(IV) We should focus on those critical few influences on our quality.

A) I, II, and IV only

B) II and IV only
C) I and III only
D) I, II, III, and IV
E) III only

62) A tool that is not used for quality management is a

A) flowchart.
B) histogram.
C) Pareto analysis.
D) redesign.
E) check sheet.

63) A tool that uses time-ordered values of a sample statistic to help detect the presence of
correctable causes of variation in a process is a(n)

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 A) affinity diagram.
B) checklist.
C) control chart.
D) flowchart.
E) relationship diagram.

64) Which is not a cost of quality?

A) prevention cost
B) external failure costs
C) extended service contract costs
D) internal failure costs
E) appraisal costs

65) The Deming Prize was established by the

A) American Statistical Association.

B) Union of Japanese Scientists.
C) North American Free Trade Association.
D) American Quality Society.
E) World Trade Organization.

66) Lost production time, scrap, and rework are examples of

A) internal failure costs.

B) external failure costs.
C) appraisal costs.
D) prevention costs.
E) replacement costs.

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67) Warranty service, processing of complaints, and costs of litigation are examples of

A) internal failure costs.

B) external failure costs.
C) appraisal costs.
D) prevention costs.
E) replacement costs.

68) Costs of inspectors, testing, test equipment, and labs are examples of

A) internal failure costs.

B) external failure costs.
C) appraisal costs.
D) prevention costs.
E) replacement costs.

69) Loss of business, increased liability, decreased productivity, and higher costs are all
likely consequences of

A) labor unions.
B) globalization.
C) poor quality.
D) robotics.
E) micro-factories.

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

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 A) internal failure costs.
B) external failure costs.
C) appraisal costs.
D) prevention costs.
E) replacement costs.

71) The Baldrige Award aims to

(I) publicize successful quality programs.(II) recognize quality achievements of U.S.
companies.(III) stimulate efforts to improve quality.(IV) distribute the grant money available for
improved quality.

A) I and IV only
B) I and II only
C) II and III only
D) I, II, III, and IV
E) I, II, and III only

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

A) just before shipping our product to the customer.

B) immediately after we complete the last operation.
C) during the design phase.
D) just before we begin the first production operation.
E) Regardless of when you fix the problem, costs are about the same.

73) Deciding how much to invest in the prevention of defects can be analyzed using

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 A) EVPI.
B) net present value.
C) weighted factor analysis.
D) return on quality.
E) break-even analysis.

74) The Baldrige Award is based on evaluations in seven main areas. Which is not one of
those?

A) relative profitability
B) strategic planning
C) human resource management
D) information and analysis
E) leadership

75) A quality circle is

A) responsible for quality.

B) total quality control.
C) an inspection stamp found on meat.
D) a group of employees who meet to discuss ways of improving products or
processes.
E) a team of customers and their contacts within the company who meet to discuss
ways of improving products or processes.

76) ISO 9000 currently stresses _____ of a certified organization.

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 A) minimizing harmful environmental effects
B) product diversity
C) inclusion of reused components in the office equipment
D) a minimum of four supervisory levels
E) continual improvement

77) The quality tool which helps focus on the most important problem areas based on the 80-
20 rule is

A) brainstorming.
B) check sheets.
C) Pareto analysis.
D) cause-and-effect diagrams.
E) fail-safe methods.

78) The quality tool that resembles a "fishbone" is

A) brainstorming.
B) check sheets.
C) Pareto analysis.
D) cause-and-effect diagrams.
E) fail-safe methods.

79) TQM stands for

A) taguchi quality methods.

B) tactical quality measurements.
C) the quality matrix.
D) total quality management.
E) total quantity measurement.

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80) Which of the following is not an element of TQM?

A) continuous improvement
B) competitive benchmarking
C) employee empowerment
D) team approach
E) quality management as a specialized function within the firm

81) The tool that is useful in documenting the current process is a

A) control chart.
B) Pareto chart.
C) check sheet.
D) flowchart.
E) cause-and-effect diagram.

82) The tool that is useful in the collection and organization of data is a

A) control chart.
B) Pareto chart.
C) check sheet.
D) flowchart.
E) runs chart.

83) A quality improvement technique that involves the sharing of thoughts and ideas in a
way that encourages unrestrained collective thinking is

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 A) Pareto analysis.
B) benchmarking.
C) brainstorming.
D) a control chart.
E) a check sheet.

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

A) members of quality circles.

B) under contract.
C) ISO certified.
D) trained in error detection techniques.
E) in agreement with the philosophy and its goals.

85) Which of the following raises quality risks?

A) currency fluctuations
B) outsourcing to less-developed countries
C) empowering employees
D) benchmarking
E) streamlining the supplier base

86) A technique for focusing attention on the most important problem areas is

A) quality circles.
B) quality assurance.
C) brainstorming.
D) Pareto analysis.
E) cause-and-effect analysis.

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

A) Pareto analysis.
B) interviewing.
C) cause-and-effect diagrams.
D) benchmarking.
E) quality function deployment.

88) Cause-and-effect diagrams are sometimes called

A) Pareto diagrams.
B) fishbone (Ishikawa) diagrams.
C) run charts.
D) control charts.
E) responsibility charts.

89) The process of identifying other organizations that are best at some facet of your
operations, analyzing your performance versus theirs in order to establish a standard against
which to judge performance, and identifying a model for learning how to improve is known as

A) continuous improvement.
B) employee empowerment.
C) benchmarking.
D) copycatting.
E) industrial espionage.

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

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 A) continuous improvement.
B) passing the buck.
C) benchmarking.
D) employee empowerment.
E) employee involvement.

91) The typical difference between quality circles and continuous improvement teams is

A) quality circles work on product design only.

B) continuous improvement teams work on product and process design.
C) continuous improvement teams use only engineers, while quality circles use just the
workers doing the work.
D) the amount of employee empowerment.
E) There is no difference—they are the same.

92) Which of the following is not a typical goal of process improvement?

A) increasing customer satisfaction

B) reducing waste
C) achieving higher quality
D) increasing market share
E) All are the goals

93) Managers have obligations to a wide variety of stakeholders such as shareholders,

employees, and customers. When considering outsourcing production to offshore suppliers,
managers have to weigh
(I) cost benefits that might make shareholders wealthier.(II) quality issues that might make
firms less productive and/or products riskier.(III) the investments already tied up in relationships
with existing suppliers.

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 A) I
B) II
C) III
D) I and II only
E) I, II, and III

94) Focusing a supply chain on _____ is a modern way of ensuring high-quality inputs and
extending an organization’s continuous improvement efforts.

A) lowest cost per unit sourced

B) close, collaborative ties with suppliers
C) suppliers that emphasize continuous-flow production
D) ISO 14000 customers
E) partners pursuing similar strategies

95) To minimize quality risks, which of the following would be least likely to be outsourced
to less-developed countries?

A) rubber processing
B) repetitive assembly
C) packaging
D) pharmaceuticals
E) steel manufacturing

96) If customer satisfaction does not always lead to customer loyalty, firms may need to
focus additional effort on _____ strategies.

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 A) remediation
B) retention
C) rework
D) repatriation
E) reprocessing

97) Before a dimension of quality can be made operationally useful, it must be restated in
some _____ form.

A) qualitative
B) manipulative
C) certifiable
D) measurable
E) marketable

98) All of the following were key contributors to quality management except?

A) Taguchi
B) Kawzuki
C) Ishikawa
D) Juran
E) Shewhart

99) Which of the following is a tool that is widely used for assessing service quality?

A) SERVQUAL
B) SQL
C) S&TI
D) SARDOT
E) SIPRNET

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100) This is the degree to which goods and services conform to the intent of the designers.

A) quality of performance
B) quality of design
C) quality of conformance
D) quality of production
E) quality of operations

101) It is estimated that the cost to fix a problem at the customer end is _____ times the cost
to fix the problem earlier in the production or design phase.

A) 3
B) 4.
C) 5
D) 6
E) 7.

102) There are _____ basic steps in problem solving.

A) 5
B) 6
C) 7
D) 8
E) 9

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Answer Key

Test name: Chapter 09 Test Bank

1) FALSE
2) FALSE
3) FALSE
4) TRUE
5) FALSE
6) FALSE
7) FALSE
8) FALSE
9) TRUE
10) TRUE
11) FALSE
12) TRUE
13) TRUE
14) TRUE
15) TRUE
16) FALSE
17) TRUE
18) TRUE
19) TRUE
20) FALSE
21) FALSE
22) TRUE
23) TRUE
24) FALSE
25) TRUE
26) FALSE
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27) FALSE
28) TRUE
29) TRUE
30) FALSE
31) FALSE
32) TRUE
33) TRUE
34) FALSE
35) TRUE
36) TRUE
37) TRUE
38) TRUE
39) FALSE
40) FALSE
41) TRUE
42) FALSE
43) FALSE
44) TRUE
45) FALSE
46) TRUE
47) TRUE
48) FALSE
49) FALSE
50) TRUE
51) TRUE
52) FALSE
53) TRUE
54) C
55) B
56) A
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57) B
58) C
59) D
60) E
61) A
62) D
63) C
64) C
65) B
66) A
67) B
68) C
69) C
70) D
71) E
72) C
73) D
74) A
75) D
76) E
77) C
78) D
79) D
80) E
81) D
82) C
83) C
84) E
85) B
86) D
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87) A
88) B
89) C
90) D
91) D
92) D
93) E
94) B
95) D
96) B
97) D
98) B
99) A
100) C
101) C
102) C

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