ch7 Key
1. The return–on–quality (ROQ) view of quality management assumes that there is a tradeoff between the
costs and benefits of improving quality.
2. A defect is an attribute of a product, either tangible or intangible, that falls short of customer expectations.
3. The optimum quality level maximizes total quality rather than total profits.
4. The optimum quality level is always higher than the maximum quality level.
5. Total quality management (TQM) assumes that improvements in quality, as defined by customers, will
always result in improved organizational performance.
6. Two generally accepted quality dimensions are product or service attributes and profitability from an
individual customer.
7. A run chart is a chart that shows trends in variations in products or service attributes over time by reflecting
measures of important quality features taken at defined points in time.
8. The maximum and minimum desired levels on a control chart are called the upper control limit and the
lower control limit.
9. A control chart describes variation in product or service attributes over time by measuring important quality
features and comparing them to maximum and minimum desired levels.
10. A histogram is a chart that shows trends in variation in products or service attributes over time by reflecting
measures of important quality features taken at defined points in time.
11. Cause-and effect-analysis involves formulating diagnostic signals that identify potential causes of product
or service defects.
12. Lead indicator information usually identifies quality problems and diagnoses their cause(s).
13. A scatter diagram is a plot of two measures that may be related.
14. Errors due to inadequate or outdated work instructions can be best diagnosed using run and control charts.
15. A flowchart is a plot of two measures that may be related that helps to diagnose cause-and-effect between
outcomes and activities that may drive them.
16. Variations in customer service leading to poor-quality service can be most effectively diagnosed using a
histogram.
17. A Pareto chart prioritizes the causes of problems or defects as bars of varying height, in order of frequency
or size.
18. Organizations usually sort costs of quality by quality activity and express them as a percentage of total
costs.
19. Customer satisfaction is the degree to which expectations of attributes, customer service, and price have
been or are expected to be met.
20. Wasted time would generally be categorized as an external failure activity.
21. Redoing customer service is classified as an external failure activity.
22. Field testing products in use at customer sites is classified as a prevention activity.
23. Performance measurement is classified as an appraisal activity.
24. Internal failure activities are required to correct defective processes, products, and services that are
detected after they have been delivered to customers.
25. Engaging in marketing activities to improve a company’s image that has been tarnished from poor product
quality is an example of an external failure activity
26. The Malcolm Baldrige Quality Award is awarded to companies around the world that excel in quality
improvement.
27. The Deming Prize is awarded to companies around the world that excel in quality improvement.
28. New product or service development time is the period between the first consideration of a product or
service and its initial sale to the customer.
29. Customer-response time is the amount of time between a customer’s placing an order for a product or
requesting service and delivering the product or service to the customer.
30. Production cycle time is the elapsed time between starting and finishing a process, including any time to
correct mistakes.
31. Production cycle time does not factor in time to correct mistakes.
32. Throughput is the amount of goods and services produced and delivered to customers during a period of
time measured in dollar terms or physical measures.
33. Total factor productivity is measured by dividing total cost of providing goods and services by the value
of goods and services.
34. In computing average cycle time, companies should include the time of reworking defective units.
35. The throughput time ratio is the ratio of time spent adding customer value to products divided by total
cycle time.
36. Cycle time is the time from the receipt of an order of a unit of existing product or service to its packaging
and shipment to the customer.
37. New product development time is the period between the first consideration of a product and its initial sale
to the customer.
38. The throughput time ratio measures the relative percentage of value-added time spent on processing a
customer’s order.
39. Effective production management results in higher cycle times and high throughput.
40. Total factor productivity is the value of goods and services divided by the cost of providing them.
41. Practical capacity is always more than theoretical capacity.
42. The highest possible value of the throughput time ratio is 200%.
43. The objective of just-in-time (JIT) is to eliminate all defects in products.
44. Just-in–time (JIT) processes have short cycle times.
45. Inventory carrying costs include receiving, handling, storage and obsolescence.
46. Companies using just-in-time inventory (JIT) systems generally experience lower inventory turnover than
those not using JIT.
47. Just-in-time concepts do not apply to service organizations.
48. A company that has implemented a just–in-time manufacturing system is utilizing the “push” philosophy of
manufacturing.
49. In a just-in-time manufacturing system, a sales order will normally trigger a production order.
50. A statistical control chart displays customer response times against the historical mean and historical
variation.
51. Control limits in a statistical control chart will always be symmetrical.
52. A process can be out of control even if attribute measures do not violate control limits.
53. Which of the following statements about quality is False?
54. Which of the following statements is True about the return-on-quality (ROQ) view of quality management
55. Which of the following is a tangible feature of a product or service?
56. Which of the following is an intangible feature of a product or service?
57. Which of the following is not a prevention activity in controlling quality?
58. Which of the following is a prevention activity in controlling quality?
59. Which of the following is not an internal failure activity?
60. Which of the following is an external failure activity?
61. Which of the following is not an external failure activity?
62. Which of the following is an appraisal activity?
63. Which of the following is an appraisal activity?
64. Which of the following is a prevention activity?
65. Which of the following is an internal failure activity?
66. Internal failure activities:
67. External failure activities:
68. Prevention activities:
69. Appraisal activities:
70. Which of the following statements describes a histogram?
71. Which of the following statements describes a scatter diagram?
72. Which of the following statements describes a run chart?
73. Which of the following statements describes a control chart?
74. Which of the following statements describes a flowchart?
75. Which of the following statements describes a Pareto chart?
76. Cook Corporation is trying to identify potential causes of product or service defects. Which of the following
will be most useful to Cook:
77. Shaw Company is trying to identify the most frequent causes of its quality problems so that it can
concentrate on those that offer the greatest potential for improvement. The quality tool that would be most
useful to Shaw is:
78. Brice Corporation suspects that improper information given to customers by customer service is related to
the time spent by employees in responding to customer service calls. The quality tool that would be most useful
to Brice in diagnosing this relationship is:
79. The Malcolm Baldrige Award:
80. The Deming Prize:
81. Which of the following will not reduce customer response time?
82. Which of the following represents the throughput time ratio?
83. Which of the following is not an explanation of why a company would operate at less than theoretical
capacity?