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Indicate whether the statement is true or false.
1. According to the manufacturing perspective of quality, quality is based on consistency in goods and services.
a.
True
b.
False
2. Accounting data are useful in identifying areas of quality improvement and tracking the progress of quality
improvement programs.
a.
True
b.
False
3. The rapid increase in liability suits has made legal services an important aspect of quality assurance.
a.
True
b.
False
4. Although quality can drive business success, it cannot guarantee it, and one must not infer that business failures or
stock price drops are the result of poor quality.
a.
True
b.
False
5. It is the responsibility of marketing and sales employees to learn about the products and product features that
consumers want and know the prices that consumers are willing to pay for them.
a.
True
b.
False
6. Inspection should be used as a means of gathering information that can be used to improve quality, not simply to
remove defective items.
a.
True
b.
False
7. The professional certifications of Certified Quality Manager, Certified Quality Engineer, and Certified Quality Auditor
are sanctioned by the American Society for Quality (ASQ).
a.
True
b.
False
8. The function of tool engineers in manufacturing industries is to work with product design engineers to develop realistic
specifications.
a.
True
b.
False
9. Today, organizations are asking employees to take more responsibility for acting as the point of contact between the
organization and the customer.
a.
True
b.
False
10. Instituting a strategy of quality improvement usually helps to increase short-run profitability.
a.
True
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b.
False
11. Manufacturing is generally more labor intensive compared to services.
a.
True
b.
False
12. Customers evaluate a service primarily by the quality of the human contact.
a.
True
b.
False
13. The Six Sigma approach for quality improvement requires increased levels of training and education for managers, but
not for front-line employees.
a.
True
b.
False
14. The transcendent definition of quality was first defined as the goodness of a product.
a.
True
b.
False
15. Services are produced prior to consumption.
a.
True
b.
False
16. The production of services typically requires a lower degree of customization than does manufacturing.
a.
True
b.
False
17. The user perspective of quality judges a product based on how well the product performs its intended function.
a.
True
b.
False
18. People view quality subjectively and in relation to differing criteria based on their individual roles in the production-
marketing value chain.
a.
True
b.
False
19. If quality is built into the product properly, inspection should be unnecessary except for auditing purposes and
functional testing.
a.
True
b.
False
20. Employees who embrace quality as a personal value often go beyond what they’re asked or normally expected to do in
order to reach a difficult goal or provide extraordinary service to a customer.
a.
True
b.
False
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21. Inspection was the primary means of quality control during the first half of the twentieth century.
a.
True
b.
False
22. It is the responsibility of the organization’s quality function to “own” or guarantee quality throughout the organization.
a.
True
b.
False
23. During the 1940s and 1950s, after World War II, the quality of products was the most important priority of top
managers as it was recognized as the key to worldwide success.
a.
True
b.
False
24. High quality of products is itself an important source of competitive advantage for organizations.
a.
True
b.
False
25. According to the product perspective of quality, smaller numbers of product attributes are equivalent to higher quality.
a.
True
b.
False
26. Services cannot be stored, inventoried, or inspected prior to delivery as manufactured goods are.
a.
True
b.
False
27. The receiving department in an organization ensures that the delivered items are of the quality specified by the
purchase contract.
a.
True
b.
False
Indicate the answer choice that best completes the statement or answers the question.
28. One of the ways that the legal services function helps to achieve quality is by
a.
ensuring that the firm provides adequate training to its salespeople so that they can appropriately answer all
customer queries.
b.
designing and wording the company’s product warranties properly.
c.
providing special statistical studies and analyses to the manufacturing or business support functions.
d.
authorizing sufficient budgeting for equipment, training, and other means of assuring quality.
29. Shenzen Electronics, a cell phone manufacturing company, buys microphones and Bluetooth handsets from Atid
Infotech, which manufactures cell phones and cellular accessories. For Atid Infotech, Shenzen is a(n)
a.
consumer.
b.
supplier.
c.
external customer.
d.
internal customer.
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30. Many organizations have separate quality functions or departments that assume all of the following roles EXCEPT
a.
metrology.
b.
product/service design.
c.
legal services.
d.
supplier quality management.
31. Which of the following perspectives of quality provides the basis for coordinating the entire value chain?
a.
Customer perspective
b.
User perspective
c.
Transcendent perspective
d.
Value perspective
32. Organizations can ensure that quality is rooted in their culture by
a.
internalizing quality at the personal level and encouraging employees to practice quality in all activities of
daily life.
b.
encouraging employees to do more than what they are expected to do through reward programs.
c.
ensuring that the company follows all the laws and regulations regarding product labeling, packaging, and
other marketing requirements.
d.
allotting sufficient budget amounts for equipment, training, and other means of assuring quality.
33. Which of the following functions in the manufacturing system is responsible for specifying long- and short-term
production requirements for filling customer orders and meeting anticipated demand?
a.
Product design and engineering
b.
Manufacturing and assembly
c.
Production planning and scheduling
d.
Industrial engineering and process design
34. Which of the following statements regarding the transcendent or judgmental perspective of quality is true?
a.
It is of little practical value to the managers, as standards of excellence vary considerably among individuals.
b.
It provides a precise and universally acceptable definition for quality.
c.
It defines quality on the basis of the relationship of product benefits to price.
d.
It provides a means by which quality can be measured or assessed as a basis for practical business decisions.
35. The inspection and testing function in a manufacturing system contributes to the quality of the product by
a.
gathering information that can be used to improve the quality of products.
b.
selecting quality-conscious suppliers and ensuring that purchase orders clearly define the quality requirements
specified by product design and engineering.
c.
designing and maintaining the tools used in manufacturing products.
d.
selecting appropriate technologies, equipment, and work methods for producing quality products.
36. Which of the following statements regarding quality management during the age of craftsmanship that existed before
the advent of the Industrial Revolution is true?
a.
Inspection was the primary means of quality control.
b.
Various statistical methods and control charts were being used to identify quality problems in production
processes and to ensure consistency of output.
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c.
Ensuring quality of products was the responsibility of the quality departments, not the workers who were
directly involved in creating the products.
d.
Quality assurance was informal and efforts were made to ensure that quality was built into products by the
people who produced them.
37. Which of the following business support functions helps in achieving quality by ensuring that the product labeling,
packaging, and safety measures are in compliance with laws and regulations?
a.
Marketing and sales
b.
Tool engineering
c.
Legal services
d.
Finance and accounting
38. The concept of total quality is defined as a(n)
a.
customer-focused, results-oriented approach to business improvement that integrates many traditional quality
improvement tools and techniques with a bottom-line and strategic orientation.
b.
people-focused management system that aims at continual increase in customer satisfaction at continually
lower real cost.
c.
structured approach to organizational management that is used to prioritize and select projects that have high
benefits relative to the effort involved in accomplishing them.
d.
integrated approach to organizational performance management that results in lower consumption of
resources.
39. Customers evaluate a service primarily by the
a.
speed of the service.
b.
accuracy of the service.
c.
quality of the human contact.
d.
degree of customization offered by the service.
40. Which of the following is a negative impact of information technology on the customer service provided by service
organizations?
a.
It has increased the labor intensity involved in the production of services.
b.
It has resulted in less personal interaction between consumers and service providers leading to decreased
customer satisfaction among some consumers.
c.
It has decreased the speed of service.
d.
It has restricted the ability of customers to compare products with competitor brands before making a
purchase.
41. The purchasing department helps a firm achieve quality by
a.
defining long- and short-term production requirements for filling customer orders and meeting anticipated
demand.
b.
ensuring that the products are assembled correctly and eliminating the causes that can lead to defects or errors
in the final product.
c.
collaborating with product design engineers to develop realistic specifications for the product.
d.
providing quality-improvement training to suppliers.
42. The book Quality Is Free was written by
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a.
Joseph Juran.
b.
Edwards Deming.
c.
Malcolm Baldrige.
d.
Philip Crosby.
43. A consumer electronics company introduced a new music system into the market with multiple features such as a
built-in alarm, mobile and iPod charger, radio, and many more. The company is trying to influence the _____ perspective
of quality by providing multiple features in a single product.
a.
value
b.
user
c.
product
d.
transcendent
44. The _____ perspective defines quality as the totality of features and characteristics of a product or service that bears
on its ability to satisfy given needs.
a.
value
b.
transcendent
c.
manufacturing
d.
customer
45. Which of the following terms best represents a firm’s ability to achieve market superiority?
a.
Flexibility
b.
Competitive advantage
c.
Quality assurance
d.
Agility
46. While facing a competitive crisis, Xerox adopted a new process in 1983 called
a.
Excellence in All We Do.
b.
Leadership Through Quality.
c.
Lean Six Sigma.
d.
New Quality Renewal.
47. Which of the following perspectives of quality is meaningful for production workers who are responsible for
guaranteeing that design specifications are met during production?
a.
User perspective
b.
Customer perspective
c.
Product perspective
d.
Manufacturing perspective
48. Which of the following statements regarding production of services is true?
a.
Compared to manufacturing organizations, it is easier for service organizations to identify and measure
customers’ needs and performance standards as they involve human contact.
b.
The production of services typically requires a lower degree of customization than does manufacturing.
c.
Compared to manufacturing, production of services is typically less labor intensive.
d.
Services are produced and consumed simultaneously
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49. Kosher’s, a supermarket in Surbury, employs various strategies to provide good quality products to consumers at
lower prices compared to other competing stores. This marketing strategy is most likely to influence the _____
perspective of quality.
a.
user
b.
product
c.
value
d.
manufacturing
50. The production of services differs from manufacturing because services
a.
can be inspected prior to delivery.
b.
require less customization compared to manufactured goods.
c.
produce outputs that are mostly intangible.
d.
are less labor intensive and involve minimal human interaction.
51. Which of the following perspectives of quality judges a product on the basis of how well the product performs its
intended function?
a.
Value perspective
b.
Product perspective
c.
User perspective
d.
Manufacturing perspective
52. Which of the following perspectives judges quality of a product on the basis of consistency in meeting product
specifications?
a.
Manufacturing perspective
b.
User perspective
c.
Value perspective
d.
Transcendent perspective
53. Customers generally view quality from the _____ perspective.
a.
user
b.
manufacturing
c.
value
d.
transcendent or product
54. Marketing and sales employees in an organization contribute to the quality of the product by
a.
bringing together technical staffs from both the buyer’s and supplier’s companies to design products and solve
technical problems.
b.
designing and maintaining the tools used in manufacturing and inspection of goods.
c.
learning the products and product features that consumers want and knowing the prices that consumers are
willing to pay for them.
d.
ensuring that the items delivered by the suppliers are of the quality specified by the purchase contract.
55. Improved conformance in production or service delivery tends to increase profitability as
a.
it helps in differentiating the product from its competitors and improves the perceived value of the product.
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b.
it ensures that the services are performed according to the convenience of the customer.
c.
it leads to lower costs through savings in rework, scrap, resolution of errors, and warranty expenses.
d.
it leads to improved employee motivation.
56. Which of the following statements regarding internal customers of an organization is true?
a.
They buy products or services for their own personal use.
b.
They receive goods or services from suppliers within the organization.
c.
They are the ultimate purchasers of a product or service.
d.
They do not add any value to the product before it reaches the consumer.
57. The value perspective defines quality of a product on the basis of the
a.
ability of the product to perform its intended function.
b.
relationship of product benefits to price.
c.
quantity of some product attribute.
d.
product’s conformance to its specifications.
58. Which of the following perspectives of quality is most likely to be meaningful to people who work in marketing
because they are responsible for determining the needs and expectations of the customers?
a.
User perspective
b.
Manufacturing perspective
c.
Value perspective
d.
Transcendent perspective
59. Which of the following statements regarding the Six Sigma approach to quality improvement is true?
a.
It does not address problems involving cost reduction and efficiency.
b.
It integrates many traditional quality improvement tools and techniques that have been tested and validated
over the years, with a bottom-line and strategic orientation that appeals to senior managers.
c.
It becomes less effective in addressing problems related to quality and efficiency if the Six Sigma tools are
combined with lean tools from the Toyota production system.
d.
It focuses entirely on the training and education of managers and not the front-line employees and the
technical staff in the organization.
60. The _____ function helps an organization in achieving quality by exposing the costs of poor quality and opportunities
for reducing it.
a.
marketing and sales
b.
manufacturing and assembly
c.
legal services
d.
finance and accounting
61. Which of the following perspectives considers quality to be synonymous with superiority or excellence?
a.
Product perspective
b.
Value perspective
c.
Transcendent perspective
d.
Manufacturing perspective
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62. The value perspective of quality is most important at the _____ stage in the creation and delivery of goods and
services.
a.
manufacturing
b.
design
c.
marketing
d.
distribution
63. Which of the following employees in an organization are responsible for selecting appropriate technologies,
equipment, and work methods for producing quality products?
a.
Production workers
b.
Industrial engineers
c.
Salespeople
d.
Tool engineers
64. The ultimate purchaser of a product or service is referred to as a(n)
a.
supplier.
b.
external customer.
c.
consumer.
d.
internal customer.
65. What key areas in corporation health are measured by the executive management team balanced scorecard at Huawei?
66. What was the first program at Xerox that linked managers with employees in a mutual problem-solving approach and
served as a model for other corporations?
67. What do today’s Chinese quality systems strongly emphasize?
68. How did Leadership Through Quality radically change the way Xerox did business?
69. Discuss the key features of the QuEST Forum.
70. What led to the fall of Xerox’s market share to less than 50 percent?
71. What is the quality policy of Xerox written by David Kearns and 25 other top employees of Xerox?
72. What basic principles support Xerox’s core value “We deliver quality and excellence in all we do”?
73. What was the reason for the competitive advantage of Xerox?
74. What are the key components of Xerox’s Lean Six Sigma?
75. The Leadership Through Quality process was directed at achieving what four goals in all Xerox activities?
76. List some of the impacts of the Leadership Through Quality program at Xerox.
77. What are the objectives of the Leadership Through Quality process?
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78. Describe the steps taken by Huawei’s senior management to become the “Toyota of the telecom industry.”
79. Explain the role of information technology in service industries.
80. Discuss the “quality revolution” that took place in the United States after the 1960s.
81. Why is it important for organizations to internalize quality at the personal level?
82. How do quality of design and conformance influence the profitability of an organization?
83. Explain the significance of integrating different quality perspectives in the value chain.
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52. a
53. d
54. c
55. c
56. b
57. b
58. a
59. b
60. d
61. c
62. b
63. b
64. c
65. The balanced scorecard at Huawei measures four key areas in corporation health: financial and profit, customer and
quality, growth and learning, and internal business performance.
66. Xerox had always had good relationships with its unions. In 1980, the company signed a contract with its principal
union, the Amalgamated Clothing and Textile Workers, encouraging union members’ participation in quality
improvement processes. It was the first program in the company that linked managers with employees in a mutual
problem-solving approach and served as a model for other corporations.
67. Today’s Chinese quality systems strongly emphasize tools, methodology and measurement, and place great
importance on key quality management processes, including self-inspection, traceability, and recruiting and training of
workers.
68. All activities, such as product planning, distribution, and establishing unit objectives, began with a focus on customer
requirements. Benchmarking —identifying and studying the companies and organizations that best perform critical
business functions and then incorporating those organizations’ ideas into the firm’s operations —became an important
component of Xerox’s quality efforts. Xerox benchmarked more than 200 processes with those of noncompetitive
companies. Measuring customer satisfaction and training were important components of the program. Every month,
40,000 surveys were mailed to customers, seeking feedback on equipment performance, sales, service, and administrative
support. Any reported dissatisfaction was dealt with immediately and was usually resolved in a matter of days. When the
program was instituted, every Xerox employee worldwide, and at all levels of the company, received the same training in
quality principles. This training began with top management and filtered down through each level of the firm.
69. The QuEST Forum is a unique collaboration of telecommunications service providers and suppliers dedicated to
telecom supply chain quality and performance. The Forum supports its member organizations to pursue performance
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• Strong linkage to performance excellence process and DMAIC
4. Behaviors and leadership:
• Reinforces customer focus
• Expands interactive skills to include more team effectiveness
• Promotes faster decision making and introduces new meeting tool
75. Leadership Through Quality was directed at achieving four goals in all Xerox activities:
1. Customer Goal: To become an organization with whom customers are eager to do business.
2. Employee Goal: To create an environment where everyone can take pride in the organization and feel responsible for
its success.
3. Business Goal: To increase profits and presence at a rate faster than the markets in which Xerox competes.
4. Process Goal: To use Leadership Through Quality principles in all Xerox does.
76. Some of the most obvious impacts of the Leadership Through Quality program included the following:
1. Reject rates on the assembly line fell from 10,000 parts per million to 300 parts per million.
2. Ninety-five percent of supplied parts no longer needed inspection; in 1989, 30 U.S. suppliers went the entire year
defect-free.
3. The number of suppliers was cut from 5,000 to fewer than 500.
4. The cost of purchased parts was reduced by 45 percent.
5. Despite inflation, manufacturing costs dropped 20 percent.
6. Product development time decreased by 60 percent.
7. Overall product quality improved 93 percent.
77. The Leadership Through Quality process had three objectives:
1. To instill quality as the basic business principle in Xerox, and to ensure that quality improvement becomes the job of
every Xerox person.
2. To ensure that Xerox people, individually and collectively, provide our external and internal customers with innovative
products and services that fully satisfy their existing and latent requirements.
3. To establish, as a way of life, management and work processes that enable all Xerox people to continuously pursue
quality improvement in meeting customer requirements.
78. Huawei’s senior management recently declared the company’s desire to be the “Toyota of the telecom industry.” To
achieve this, Huawei has studied Western telecom manufacturing in great detail and has invested heavily in the latest tools
and technology. It is constantly looking for better tools and techniques that will make it a world leader, moving away from
its current emphasis on low-cost production.
79. Many service industries exploit information technology to achieve high customer service. Information technology
systems helps to save time, improve accuracy by standardizing the order-taking, billing, and inventory procedures and
reducing the need for handwriting. Credit authorizations, which once took several minutes by telephone, are now
accomplished in seconds through computerized authorization systems. It allows businesses to maintain a database of
individual customer preferences, previous difficulties, family and personal interests, and preferred credit cards.
Information technology has had a huge impact on e-commerce. Customers can shop for almost any product; configure,
price, and order computer systems; and take virtual test drives of automobiles and select from thousands of possible
combinations of options on the Internet in the convenience of their homes. Information technology can be used to develop
and enhance customer relationships. However, while information technology reduces labor intensity and increases the
speed of service, it can have adverse effects on other dimensions of quality due to reduced personal interaction between
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