OM5 C15
Test Bank
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Chapter 15—Quality Management
Multiple Choice
1. In SERVQUAL, the instrument for measuring service quality, the concept of assurance is
associated with _____.
a.
the ability to convey trust and confidence
b.
individualized (customized) attention
c.
providing consistent service
d.
performing a service fast
2. Which of the following is NOT considered part of total quality?
a.
A focus on customers and stakeholders
b.
A process focus
c.
Participation and team work
d.
Vendor-managed inventory (VMI)
3. Which of the following is TRUE regarding the history of quality management?
a.
During the Industrial Revolution, workers on the shop floor began to take on increased
responsibility for quality.
b.
Six Sigma was developed in Japan as a cost reduction approach during the 1970s.
c.
Deming used his 14 Points to highlight key insights and successful practices regarding
quality management.
d.
Beginning around 1950, Juran advocated that quality is free, which led to the growth and
development of quality management in the United States.
4. Which of the following is NOT one of W. Edwards Deming’s 14 Points?
a.
Create a vision and demonstrate commitment.
b.
Create an environment that drives out fear.
c.
Continuously improve products and processes.
d.
Adopt Zero Defects as the only performance standard.
5. Which of the following is NOT directly related to W. Edwards Deming?
a.
A product or a service possesses quality if it enjoys a sustainable market.
b.
Quality is free.
c.
Higher quality leads to higher productivity and lower cost.
d.
The Deming cycle consists of four stages: plan, do, study, and act (PDSA).
6. Which of the following best describes the definition of quality provided by Joseph Juran?
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a.
Perfection and consistency in goods and service quality
b.
Doing it right the first time
c.
Conforming to design specifications
d.
Fitness for use
7. Which leader in quality management promoted the Quality Trilogy of quality planning, quality
control, and quality improvement?
a.
W. Edwards Deming
b.
Joseph Juran
c.
Philip Crosby
d.
Jack Hillerich
8. Which of the following is NOT a part of Philip Crosby’s philosophy of quality?
Quality means conformance to requirements, not elegance.
The only performance standard that matters is profits.
There is no such thing as a quality problem.
The only performance measurement is the cost of quality, which is the expense of
nonconformance.
9. All of the following are components of the GAP model EXCEPT:
a.
the difference between the customer’s expectations and perceptions.
b.
the discrepancy between delighting or pleasing customers and total customer service
and satisfaction.
c.
the discrepancy between management’s perceptions of what features constitute a target
level of quality and the task of translating these perceptions into executable
specifications.
d.
the discrepancy between quality specifications documented in operating and training
manuals and plans and their implementation.
10. ISO 9000:2000 principles consist of all of the following EXCEPT:
involvement of people.
mutually beneficial supplier relationships.
zero defects.
system approach to management.
11. Which of the following emphasizes defects per million opportunities as a key measure of
quality?
Deming’s 14 Points
ISO 9000:2000
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The Gap model
Six Sigma
12. As a front-desk manager of a mid-market hotel, your shift received 29 customer complaints
last week. A total of 428 guests stayed in the hotel over the past week (7 days) with 12 front-desk
customer touch points or moments of truth. The epmo is _____.
a.
less than 200
b.
more than or equal to 200 but less than 400
c.
more than or equal to 400 but less than 600
d.
more than or equal to 600
13. Each day, a golf resort handles 700 golfers. Each guest encounters 22 “moments of truth”
during a typical day. The resort is open seven (7) days a week. If they receive 12 complaints per
week, the epmo is _____.
a.
less than 100
b.
more than or equal to 100 but less than 150
c.
more than or equal to 150 but less than 200
d.
more than or equal to 200
14. The dpmo or epmo for a three-sigma process is _____.
66,807
6,210
233
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15. Which of the following does NOT fit with Six Sigma implementation?
a.
Emphasizing dpmo or epmo as a standard metric
b.
Focusing on corporate sponsors responsible for supporting team activities
c.
Providing flexibility to demand volume changes and trends
d.
Providing extensive training followed by project team deployment
16. All of the following relate to Six Sigma EXCEPT:
a.
project team deployment to improve profitability and reduce non-value-added activities.
b.
flexibility to demand volume changes and trends.
c.
creating highly qualified process improvement experts.
d.
setting stretch objectives for improvement.
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17. The recognized leader and benchmark for successful Six Sigma implementation is _____.
a.
Sears, Roebuck and Co.
b.
Starbucks
c.
General Electric
d.
Target
18. GE’s Six Sigma problem-solving approach employs five phases. Which of the following is
NOT one of the phases?
a.
Define (D)
b.
Measure (M)
c.
Analyze (A)
d.
Identify (I)
19. Six Sigma efforts use all of the following concepts and methods EXCEPT:
a.
process control such as reducing variation.
b.
process improvement such as mistake-proofing.
c.
large order sizes such as batching.
d.
advanced statistical tools such as multiple regression.
20. In applying Six Sigma to services, the four key measures of performance include all of the
following EXCEPT:
a.
accuracy.
b.
productivity.
c.
cost.
d.
customer satisfaction.
21. In reference to quality cost classifications, activities such as training and equipment design
would fall in _____ category.
a.
prevention costs
b.
appraisal costs
c.
internal failure costs
d.
external failure costs
22. In reference to quality cost classifications, information-systems development costs would
normally fall in _____category.
a.
prevention costs
b.
appraisal costs
c.
internal failure costs
d.
external failure costs
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23. Machine downtime is an example of which type of quality cost?
a.
Prevention costs
b.
Appraisal costs
c.
Internal failure costs
d.
External failure costs
24. A tool used to help determine how a process works and what it is supposed to do is a _____.
a.
run chart
b.
cause-and-effect diagram
c.
scatter diagram
d.
flowchart
25. A tool used to show the frequency or number of observations of a particular value or within a
specific group is a _____.
a.
histogram
b.
cause-and-effect diagram
c.
scatter diagram
d.
flowchart
26. A _____ stratifies the data to more detailed levels at each step eventually isolating the most
significant problems.
a.
flowchart
b.
Pareto diagram
c.
cause-and-effect diagram
d.
scatter diagram
27. A tool used for presenting a chain of causes and effects is called a _____.
a.
run chart
b.
fishbone diagram
c.
scatter diagram
d.
checksheet
28. Cause-and-effect diagrams would help most in which phase of the DMAIC problem-solving
approach?
a.
Define
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b.
Measure
c.
Analyze
d.
Control
29. A _____ graphically displays the relationships between different variables.
a.
Pareto diagram
b.
cause-and-effect diagram
c.
scatter diagram
d.
control chart
30. Which of the following is most closely associated with root cause analysis?
a.
The 5-Why Technique
b.
The DMAIC approach
c.
SERVQUAL
d.
Zero defects
31. Root cause analysis uses all of the following tools and approaches EXCEPT:
a.
The concept of zero defects
b.
The Seven Quality Control (QC)Tools
c.
The 5-Why Technique
d.
The Pareto diagrams
32. Which one of the following statements is TRUE?
a. A Pareto diagram is also called a fishbone diagram.
b. Scrap and rework costs are part of external failure costs.
c. Kaizen focuses on small, frequent, and gradual improvements over the long term, with
minimum financial investment.
d. The Juran cycle is named after a famous quality guru and consists of four steps—plan, do,
study, and act (PDSA).
33. Which one of the following statements is FALSE?
a. A cause-and-effect diagram is also called a fishbone diagram.
b. Scrap and rework costs are part of internal failure costs.
c. Kaizen is the process of specifying design specifications for goods and services.
d. The Deming Cycle is named after a famous quality guru and consists of four steps—plan, do,
study, and act (PDSA).
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34. A flash drive that fits only one way into an e-device is an example of an application of the
_____.
a.
kaizen blitz
b.
poka-yoke concept
c.
Pareto analysis
d.
Six Sigma concept
35. At a gas station, a diesel pump nozzle that will not fit into a non-diesel automobile is an
example of an application of the _____ concept.
a.
poka-yoke
b.
kaizen blitz
c.
process simulation
d.
reproducibility
Problem A for Questions #36 to #37
35. An internal audit of a hospital’s medical laboratory found 108 errors in testing of patient
specimens for one month or 30 days. Each day 400 patients were tested using an average of 3.2
tests per patient. What is the dpmo for this situation?
a.
Less than 500
b.
More than or equal to 500 but less than 1,000
c.
More than or equal to 1,000 but less than 2,000
d.
More than or equal to 2,000
36. For a certain situation, if the dpmo is given to be 2,812.5, then what is the sigma level for this
situation? (Access to Excel is required to answer this question).
a.
Less than 2 sigma
b.
More than or equal to 2 but less than 3 sigma
c.
More than or equal to 3 but less than 4 sigma
d.
More than 4 sigma or equal to 5 sigma
True/False Questions
1. Quality management includes how goods and services are designed, rather than simply how
quality is assured during the manufacturing or service-delivery process.
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2. The most relevant definition of quality for an operations manager is conformance to
specifications.
3. Performance standards in services are analogous to manufacturing specifications.
4. Empathy relates to the knowledge and courtesy of service providers and their ability to convey
trust and confidence.
5. The Deming philosophy focuses on bringing about improvements in product and service
quality by reducing uncertainty and variability in goods and services design and associated
processes.
6. W. Edwards Deming believed that higher quality leads to higher costs and even higher market
share.
7. Joseph Juran preached the 14 Points for management in his quality philosophy.
8. W. Edward Deming believed that productivity would improve by setting numerical quotas.
9. Philip. B. Crosby taught his 14 Points to the Japanese in the 1950s and was a principle force in
their quality reorganization.
10. W. Edwards Deming proposed a simple definition of quality: “fitness for use” and sought to
improve quality by working within the system familiar to managers.
11. To get top management’s attention about quality issues, it is useful to measure quality in
monetary terms rather than from the operational perspective on the number of defects and
nonconformances.
12. Zero Defects (ZD) is achieved by identifying defects in production processes and fixing them.
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13. The Gap model helps managers to analyze goods and services and the processes that make
and deliver them to identify and close the largest gaps and improve performance.
14. ISO 9000:2000 definition of quality system standards is based on the premise that certain
generic characteristics of management practice can be standardized and that a well-designed,
well-implemented, and carefully managed quality system provides confidence that the outputs
will meet customer expectations and requirements.
15. ISO 9000:2000 is used only in the United States.
16. ISO 9000:2000 is best used by firms with formal quality systems as a means of refining their
quality practices.
17. The term “six sigma” is based on a statistical measure that equates to at most 3.4 errors or
defects per million opportunities.
18 . In Six Sigma terminology, a defect is any mistake or error that is passed on to the customer.
19. Corporate sponsors who support Six Sigma activities are typically called “black belts.”
20. In the define phase of the Six Sigma problem-solving (DMAIC) approach, teams identify
critical-to–quality characteristics (CTQs) that are considered by the customer to have the most
impact on quality.
21. Because of the expense and training involved, Six Sigma is practical only in large
manufacturing organizations.
22. The cost of quality refers to the out-of-pocket costs that customers incur if they receive a poor
quality good or service.
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23. The costs associated with maintenance and inspection of instruments are examples of
appraisal costs.
24. Costs of recalls and warranty claims are classified as internal failure costs.
25. The Seven QC Tools are designed to be simple so that workers at all levels can use them.
26. A control chart is quality control jargon for an ordinary run chart that plots data over time.
27. Using a cause-and-effect diagram helps identify the most likely causes of a problem so that
further data collection can be carried out.
28. A Pareto diagram helps to understand the relationships between two variables and to verify
possible cause and effect hypotheses.
29. Because of the amount of resources required, a kaizen blitz is generally performed outside of
normal working hours over several weeks or months.
30. Using color-coded wires to reduce mistakes associated with assembling complex electronic
products is an example of an application of the poka-yoke concept.
Case Study Questions (To reward students who attend class, listen and learn, and take good class
notes on the case discussion and/or student team presentation.)
1. Which of the following statements regarding the Sunshine Enterprises case study is TRUE?
a.
Sunshine restaurants average about 20 negative customer complaint per 100 customer
comments.
b.
Given the information in the case, the customer defection rate on an average is below 5
percent.
c.
The owner, Abby Martin, studied McDonald’s service-delivery system and adopted
many of their standardized methods for her restaurants.
d.
Poka-yoke (and the Seven Quality Control (QC) Tools) methods could be used to
prevent service upsets like the $25 tip error.
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Problems for Manual Grading, Take-Home Exams and Partial Credit (Also, review the OM
Instructor’s Manual for end-of-chapter questions/problems)
1. Discuss different ways of defining quality and how these differ for goods and services.
2. List the three principles of total quality.
3. Summarize the philosophies of Deming, Juran, and Crosby, highlighting the key points on
which they agree and on which they differ.
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4. The GAP model recognizes five ways to mismanage the creation and delivery of high levels of
quality. Describe each of the five problem areas (GAPS).
5. Describe the rationale underlying ISO 9000:2000.
6. Define Six Sigma, and explain the key concepts used to implement a Six Sigma quality
initiative.
7. A restaurant handles 500 customers every day. The restaurant encounters 25 service upsets
during a typical day. The restaurant is open on all seven days of a week. If the restaurant receives
10 complaints per week, what is the epmo measure?
8. Over the last year, 1,100 oral medications were administered at a health clinic. Quality is
measured by the proper amount of dosage and the use of the correct drug. In three (3) instances,
an incorrect amount was given, and in two (2) instances, the wrong drug was selected. What is the
epmo metric?
9. An airline performed 4000 preflight inspections during one month. Each inspection checks 50
items. What is the maximum number of defects that could occur during a year if the process is
operating at a six-sigma level?
10. Explain the four components of the cost of quality.
11. What are the Seven Quality Control (QC) Tools and what is their significance in quality
improvement? Briefly explain how each tool is used.
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12. Define root cause and describe root cause analysis.
13. Discuss Kaizen and how it differs from a kaizen event.
14. Define poka-yoke, and provide some examples.
The employees in an insurance company’s mailroom are responsible for sorting and delivering the
incoming U.S. mail to the correct departments. These employees have been receiving numerous
complaints that mail is being delivered to the wrong departments. To better understand these
complaints, the mailroom employees recorded the number of these complaints they received each
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day for the last 20 working days (Monday through Friday, for the last 4 weeks). The data, in the
order of the last 20 working days, is given below.
Week 1
Week 2
Week 3
Week 4
Monday
13
Monday
12
Monday
12
Monday
12
Tuesday
5
Tuesday
6
Tuesday
5
Tuesday
4
Wednesday
14
Wednesday
12
Wednesday
12
Wednesday
9
Thursday
11
Thursday
11
Thursday
9
Thursday
15
Friday
9
Friday
15
Friday
10
Friday
9
Plot these data on a run chart. What conclusion can you make about the number of complaints
received over the last 4 weeks?