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Chapter 08 - Managing Quality
8-11
31. Which of the following statements concerning the Malcolm Baldrige award is true?
LO: 8.8
Topic: ISO 9000
Difficulty: 2 Moderate
AACSB: Reflective thinking
Bloom’s: Understand
Feedback: Only D is true (see Section 8.10).
32. The costs of quality include all of the following EXCEPT
33. Which of the following is NOT a requirement for a successful quality improvement
effort?
Chapter 08 - Managing Quality
8-12
34. Advantage Air Conditioning guarantees that any spare part for repairing air conditioners
will be supplied within 24 hours. This policy best matches with
35. Which of the following would NOT be considered a failure cost of quality?
36. The cost of developing and conducting a training program for employees to help them
manage the quality of their work best fits with
Chapter 08 - Managing Quality
8-13
37. Which of the following is the most complete definition of quality?
38. Which of the following does NOT contribute to customer expectations?
39. Which of the following statements regarding suppliers is true?
Chapter 08 - Managing Quality
40. A product assembled of 10 purchased components, where the defective rate of each
component is 0.5%, will result in finished product quality of
41. Which of the following is NOT correct concerning modern views of quality management?
42. For a health care clinic, complaints concerning the poor condition of the rest rooms fall
under which dimension of service quality?
Chapter 08 - Managing Quality
43. Which of the following represents a current perspective on quality?
True/False Questions
44. A supplier that guarantees 100% conforming parts to customers even though production
yield at its plant is only 60% is a good candidate for supplier certification.
45. It is important to determine the quality of design before producing the product.
Chapter 08 - Managing Quality
46. SERVQUAL is widely used in practice to measure manufacturing operations such as
production and assembling processes.
47. ISO 9000 standards guarantee that a product or service has no defects.
48. The Baldrige Award is only given in the United States.
49. The total cost of quality in an organization is the sum of control costs and failure costs.
50. The Japanese term for mistake-proofing is "poka-yoke."
Chapter 08 - Managing Quality
8-18
Essay Questions
54. The definition of quality management has evolved from "quality by inspection" toward
"delivering competitive advantage to the firm." Briefly discuss the various definitions of
quality management described in this chapter.
LO: 8.1
Topic: Quality as Customer Requirements
Difficulty: 2 Moderate
AACSB: Reflective thinking, written communication
Bloom’s: Understand
Feedback: See below.
8-19
55. Describe the concept of rolled yield and how it is related to managing quality in a supply
chain.
LO: 8.5
Topic: Mistake-Proofing
Difficulty: 2 Moderate
AACSB: Reflective thinking, written communication
Bloom’s: Understand
Feedback: See below.
Rolled yield accounts for the cumulative defect rate received by the final customer in a
56. Describe the relationship between control costs, failure costs, and overall levels of quality.
LO: 8.6
Topic: Quality, Cost of Quality, and Financial Performance
Difficulty: 2 Moderate
AACSB: Reflective thinking
Bloom’s: Remember
Feedback: See below.
Within control and failure costs, only the prevention category is a positive investment in
