Chapter 8 — Supplier Quality Management
True / False
1. In recent years, the concept of quality has changed radically from meeting customer requirements or
expectations to exceeding them.
a.
True
b.
False
True
Easy
Analytic
2. Within its supply chains, supply management does not merely buy parts or services from suppliers – it buys
(and sometimes must help manage and improve) current and anticipated supplier capabilities that will result in
quality products and services.
a.
True
b.
False
True
Easy
Analytic
3. Buyers should focus only on a supplier’s physical output (the end result), never on the supporting inputs,
systems, and processes that created that output.
a.
True
b.
False
False
Moderate
Analytic
4. It is difficult to maintain a trusting and collaborative relationship and receive quality goods and services when
suppliers do not enjoy working with the buying organization.
a.
True
b.
False
True
Easy
Analytic
5. A buyer cannot realistically expect the highest levels of supplier performance when the supplier must respond
to frequent or short lead time changes.
Chapter 8 — Supplier Quality Management
a.
True
b.
False
True
Easy
Analytic
6. Reliance on a firm’s suppliers for raw materials, components, subassemblies, and even finished products is
steadily decreasing.
a.
True
b.
False
False
Easy
Analytic
7. One of the primary causes of nonconforming supplier quality involves inconsistent communication and the
resultant misunderstanding of specifications, expectations, and requirements between supply chain members.
a.
True
b.
False
True
Analytic
8. Most specifications are precise and succinct.
a.
True
b.
False
False
Easy
Analytic
9. Many suppliers are hesitant to challenge excessive specifications for fear of losing the bid.
a.
True
b.
False
True
Easy
Analytic
10. Deming’s quality philosophy has often been criticized because it does not prescribe specific firm-level
actions and programs for management to follow.
a.
True
b.
False
True
Easy
Analytic
11. Deming’s 14 Points constitute an à la carte menu of quality improvement activities, from which a company
can pick and choose only those with which they agree.
a.
True
b.
False
False
Easy
Analytic
12. The focal point of the Deming philosophy is that the entire organization should be focused on satisfying
customer needs, whether the customer is internal or external.
a.
True
b.
False
True
Easy
Analytic
13. Quality is only for manufacturing.
a.
True
b.
False
False
Easy
Analytic
14. Deming indicates that the only proper way of dealing with defects is to inspect for and remove them from
the process.
a.
True
b.
False
Chapter 8 — Supplier Quality Management
False
Moderate
Analytic
15. The lowest purchase price of an item may be important in the short run for supply management but may
cause increased costs somewhere else in the production system over the long run: excessive scrap and rework,
defective products, greater warranty claims, and so on.
a.
True
b.
False
True
Moderate
Analytic
16. Working with more suppliers allows the supply manager to concentrate on building trusting, collaborative
relationships and supplier loyalty while improving quality in purchased goods and services.
a.
True
b.
False
False
Moderate
Analytic
17. The TQM-focused organization must look at increasing process variation and seeking innovation in both
product and process.
a.
True
b.
False
False
Moderate
Analytic
18. There is a minimal gap between real leadership and what we traditionally think of as management or
supervision.
a.
True
b.
False
False
Easy
Analytic
19. Slogans, signs, and posters are highly effective in changing worker behavior because they assume that most,
if not all, quality problems are due to human behavior.
a.
True
b.
False
False
Easy
Analytic
20. Designed-in systemic variation is a managerial concern, not a labor issue.
a.
True
b.
False
True
Easy
Analytic
21. The performance appraisal systems in most organizations create real barriers to pride in workmanship as
they promote competitive behavior and quantity of work over quality.
a.
True
b.
False
True
Easy
Analytic
22. Even when given the proper climate in which to work, most people do not want to do a good job.
a.
True
b.
False
False
Easy
Analytic
23. A grassroots TQM effort that emanates from the lower levels of the organization is doomed to failure
without active and visible top management commitment and support.
a.
True
b.
False
True
24. The objective of supplier certification is to ensure that nonconforming items are not created or do not leave a
supplier’s facility.
a.
True
b.
False
True
Easy
Analytic
25. Supplier certification applies only to entire companies or products, rather than a specific part, process, or
site.
a.
True
b.
False
False
Easy
Analytic
26. The extensive use of corrective action requests supports prevention of nonconforming defects.
a.
True
b.
False
True
Easy
Analytic
27. Perhaps the most dramatic difference between traditional quality control methods and total quality
management thinking involves a shift from a process orientation to a product orientation.
a.
True
b.
False
False
Moderate
Analytic
28. It is far less expensive and more efficient in the long run to avoid generating the defect in the first place than
Easy
Analytic
Chapter 8 — Supplier Quality Management
it is to inspect for it once it is created.
a.
True
b.
False
True
Easy
Analytic
29. An emphasis on finished product rather than process demands that a supplier provide evidence of its process
capability to the buyer on an ongoing, regular basis.
a.
True
b.
False
False
Moderate
Analytic
30. To be considered capable, the outputs from a process must fall outside upper and lower specification limits.
a.
True
b.
False
False
Analytic
31. One property of normally distributed data is that 99.7 percent of all possible observations of process output
occur within plus-or-minus standard deviations of the process mean.
a.
True
b.
False
True
Easy
Analytic
32. A process that is stable and in control (i.e., no special and correctable causes of variation) can be expected to
produce virtually all of its output within its natural tolerance limits.
a.
True
b.
False
True
Easy
33. The Cpk value is always larger than the Cp index.
a.
True
b.
False
False
Easy
Analytic
34. According to Genichi Taguchi, any deviation from a target value carries with it some level of opportunity
loss due to scrap, rework, and customer dissatisfaction.
a.
True
b.
False
True
Easy
Analytic
35. Inconsistency is the enemy of total quality.
a.
True
b.
False
True
Easy
Analytic
36. In many respects, the cost of quality should actually be considered as the cost of “poor quality.”
a.
True
b.
False
True
Easy
Analytic
37. Because of the nature of many cost accounting systems, quality costs are rarely aggregated into various
overhead accounts, which would mask their real impact on the finances and operations of a company.
a.
True
b.
False
Analytic
Chapter 8 — Supplier Quality Management
False
Moderate
Analytic
38. All delivery activities in a process can be considered wasteful.
a.
True
b.
False
True
Easy
Analytic
39. Once a firm fully rationalizes and optimizes its supply base, improvement will occur primarily by
developing the capabilities of existing suppliers rather than by switching suppliers on a large scale.
a.
True
b.
False
True
Moderate
Analytic
40. Companies that are unable to commit the necessary resources to assess or certify supplier quality on their
own will never accept ISO 9000:2008 registration as proxy evidence of a supplier’s quality management
capability.
a.
True
b.
False
False
Moderate
Analytic
41. ISO 9000:2008 follows a product-based approach to quality management that stresses planning, acting,
analyzing results, and making improvements.
a.
True
b.
False
False
Easy
Analytic
a.
True
42. Suppliers that earn ISO 9000:2008 registration typically demonstrate lower levels of quality than those
suppliers that are not registered.
a.
True
b.
False
False
Easy
Analytic
43. ISO 14000:2004 does not build on existing governmental regulations, establish emissions and pollution
levels, or detail any specific testing methods.
a.
True
b.
False
True
Moderate
Analytic
44. The MBNQA is a competition and implies that a winning organization excels not only in quality
management but also in quality achievement.
a.
True
b.
False
True
Easy
Analytic
45. It can take only a few months for a company to adequately develop a quality management system that is
competitive for the MBNQA.
a.
True
b.
False
False
Easy
Analytic
Chapter 8 — Supplier Quality Management
b.
False
False
Moderate
Analytic
47. A comprehensive supplier quality manual does not need to describe the supplier selection and evaluation
processes.
a.
True
b.
False
False
Easy
Analytic
Multiple Choice
48. According to Armand Fiegenbaum, _____ is defined as the total composite of product and service
characteristics of marketing, engineering, manufacturing, and maintenance through which the product or service
in use will meet or exceed the expectations of the customer.
a.
b.
c.
d.
e.
Easy
Analytic
49. _____ represents the ability to meet or exceed current and future customer (i.e., buyer and eventually end
customer) expectations or requirements within critical performance areas on a consistent basis.
a.
Kaizen
b.
Supplier quality
c.
Strategic sourcing
d.
Process capability
e.
Supply base rationalization
Analytic
50. Which of the following is not one of the expectations that suppliers have in a typical supply chain
relationship?
a.
Minimizing product design changes once production begins.
b.
Providing visibility to future purchase volume requirements.
c.
Sharing early access and visibility to new-product requirements.
d.
Valuing accurate and timely payment of invoices.
e.
Having the buyer co-locate its buying, engineering, and quality staffs into a supplier’s facility.
51. The average North American manufacturing firm spends _____ percent of its cost of goods sold on
purchased goods and services.
a.
< 10
b.
25
c.
55
d.
75
e.
> 90
52. The _____ the proportion of the final product that suppliers provide, the _____ the impact they will have on
overall product cost and quality.
a.
smaller….greater
b.
larger….lesser
c.
smaller….more significant
d.
larger….greater
e.
There is no definitive relationship between proportion of final product provided by suppliers and
impact on overall product cost and quality.
53. All of the following are factors that influence how much attention supply management should commit to
managing supplier quality except _____.
Chapter 8 — Supplier Quality Management
a.
the physical distance between the supplier and buyer facilities
b.
the ability of a supplier to affect a buyer’s total quality
c.
the internal resources available to support supplier quality management and improvement
d.
the ability of a buying firm to practice world-class quality
e.
a buyer’s ability to collect and analyze quality-related data
54. Which of the following is not one of the eight key principles of total quality management?
a.
Define quality in terms of customers and their requirements.
b.
Inspect for quality at the end of the production line.
c.
Stress objective rather than subjective analysis.
d.
Strive for zero defects.
e.
Make quality everyone’s responsibility.
55. Which of the following is not one of the eight key principles of total quality management?
a.
Pursue quality at the source.
b.
Emphasize prevention rather than detection of defects.
c.
Focus on process rather than output.
d.
Establish continuous improvement as a way of life.
e.
Stress subjective rather than objective analysis. (LO #2)
56. Which of the following is not one of the eight key principles of total quality management?
a.
Strive for zero defects.
b.
Define quality in terms of customers and their requirements.
c.
Focus on output rather than process.
d.
Make quality everyone’s responsibility.
e.
Stress objective rather than subjective analysis.