Chapter 1: Introduction to Quality
TRUE/FALSE
1. People view quality subjectively and in relation to differing criteria based on their individual roles in
the production-marketing value chain.
2. The transcendent definition of quality provides a means by which quality can be measured or assessed
as a basis for practical business decisions.
3. According to the product perspective of quality, larger number of product attributes are equivalent to
higher quality.
4. The user perspective of quality judges a product based on how well the product performs its intended
function.
5. According to the manufacturing perspective of quality, quality is based on the relationship of product
benefits to price
6. Inspection was the primary means of quality control during the first half of the twentieth century.
7. During the 1940s and 1950s, after the 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.
8. 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.
9. The Six Sigma approach for quality improvement requires increased levels of training and education
for both managers and front-line employees.
10. It is the responsibility of the marketing and sales department to learn about the products and product
features that consumers want, and the prices they are willing to pay for those products.
11. The receiving department in an organization ensures that the delivered items are of the quality
specified by the purchase contract.
12. The function of tool engineers in manufacturing industries is to work with product design engineers to
develop realistic specifications.
13. The inspection step in manufacturing should ideally be used as a means of gathering information that
can be used to improve quality of the products rather than simply to remove defective items.
14. If quality is built into the product properly, inspection should be unnecessary except for auditing
purposes and functional testing.
15. The production of services typically requires a lower degree of customization than does
manufacturing.
16. Services cannot be inventoried or inspected prior to delivery as manufactured goods.
17. Manufacturing is generally more labor intensive compared to services.
18. Services are produced prior to consumption.
19. Customers evaluate a service primarily by the quality of the human contact.
20. The quality assurance team in a firm is solely responsible for ensuring that the products produced meet
the required quality specifications.
21. The accounting function helps in achieving quality by identifying areas of quality improvement and
tracking the progress of quality improvement programs.
22. High quality of products is an important source of competitive advantage for organizations.
23. Instituting a strategy of quality improvement usually helps to increase short-run profitability.
24. Today, organizations are asking employees to take more responsibility for acting as the point of
contact between the organization and the customer.
25. Employees who embrace quality as a personal value often go beyond what they’re asked or normally
expected to do in order to provide extraordinary service to a customer.
MULTIPLE CHOICE
1. Which of the following perspectives of quality considers quality to be synonymous with superiority or
excellence?
a.
Product perspective
b.
Transcendent perspective
c.
Value perspective
d.
Manufacturing perspective
2. Which of the following is true of the transcendent or judgmental perspective of quality?
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.
3. A consumer electronics company introduced a new music system into the market with multiple
features like 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.
product
b.
user
c.
value
d.
transcendent
4. 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
5. The value perspective defines quality of a product on the basis of:
a.
the ability of the product to perform its intended function.
b.
the relationship of product benefits to price.
c.
the quantity of some product attribute.
d.
the product’s conformance to its specifications.
6. 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.
manufacturing
d.
value
7. Which of the following perspectives of quality 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
8. 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
9. The ultimate purchaser of a product or service is referred to as a(n) _____.
a.
supplier
b.
external customer
c.
consumer
d.
internal customer
10. 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
11. Which of the following is true regarding internal customers of an organization?
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.
12. Customers generally view quality from the _____ perspective.
a.
transcendent
b.
manufacturing
c.
value
d.
user
13. 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
14. 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
15. 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
16. 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
17. Which of the following is true of quality management during the age of craftsmanship that existed
before the advent of industrial revolution?
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.
c.
Ensuring quality of the products was the responsibility of the quality departments and 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.
18. 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.
19. Which of the following is true regarding the six-sigma approach to quality improvement?
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.
c.
It become 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.
20. The marketing and sales department in an organization contributes to the quality of the product by:
a.
bringing together technical staffs from both the buyer’s and suppliers’ 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.
21. The purchasing department helps a firm in achieving quality by:
a.
defining long-term 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.
22. Who among the following in an organization are responsible for selecting appropriate technologies,
equipment, and work methods for producing quality products?
a.
Production workers
b.
Salespeople
c.
Industrial engineers
d.
Tool engineers
23. Which of the following functions in the manufacturing system is responsible for specifying long-term
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
24. 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 the 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 of products.
d.
selecting appropriate technologies, equipment, and work methods for producing quality
products.
25. The production of services differs from manufacturing as services:
a.
can be inspected prior to delivery.
b.
require lesser customization compared to manufactured goods.
c.
produce outputs that are mostly intangible.
d.
are less labor intensive and involve minimal human interaction.
26. Which of the following is true regarding production of services?
a.
Compared to manufacturing, 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
27. 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.
28. 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 lesser 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 the customers to compare products with competitor brands
before making a purchase.
29. 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
30. 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 the rules and regulations?
a.
Marketing and sales
b.
Legal services
c.
Tool engineering
d.
Finance and accounting
31. The quality assurance function helps to achieve quality by:
a.
ensuring that the firm provides adequate training to its salespeople so that they can
appropriately answer all customer queries.
b.
ensuring that the firm complies with laws and regulations regarding such things as product
labeling, packaging, safety, and transportation.
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.
32. Which of the following terms best represents a firm’s ability to achieve market superiority?
a.
Flexibility
b.
Agility
c.
Quality assurance
d.
Competitive advantage
33. The book “Quality Is Free” is written by _____.
a.
Philip Crosby
b.
Edwards Deming
c.
Malcolm Baldrige
d.
Joseph Juran
34. 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.
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.
35. Organizations can ensure that the quality is rooted in their culture by:
a.
encouraging employees to do more than what they are expected to do through reward
programs.
b.
internalizing quality at the personal level and encouraging employees to practice quality in
all activities of life.
c.
ensuring that the company follows all the laws and regulations regarding product labeling,
packaging, and other marketing requirements.
d.
allotting sufficient budget for equipment, training, and other means of assuring quality.
ESSAY
1. Explain the significance of integrating different quality perspectives in the value chain.
2. Discuss the “quality revolution” that took place in the United States after 1960s.
3. Explain the role of information technology in service industries.
4. How do quality of design and conformance influence the profitability of an organization?
ANS:
5. Why is it important for organizations to internalize quality at the personal level?
CASE
1. Which of the following was the first plain-paper copier introduced in 1959?
a. Canon 980
b. IBM 800
c. Kodak 114
d. Xerox 914
2. What was the reason for the competitive advantage of Xerox?
3. What led to the fall of Xerox’s market share to less than 50 percent?
ANS:
4. What is the quality policy of Xerox written by Kearns and 25 other top employees of Xerox?
5. What are the objectives of the Leadership Through Quality process?
ANS:
6. What were the four goals that Leadership Through Quality process was directed at achieving in all
Xerox activities?
ANS:
7. How did Leadership Through Quality radically changed the way Xerox did business?
8. Which was the first program in Xerox that linked managers with employees in a mutual problem
solving approach and served as a model for other corporations?
9. List some the most obvious impacts of the Leadership Through Quality program at Xerox.
10. What are the basic principles of Xerox which supports its core value “We deliver quality and
excellence in all we do”?
11. What are the key components of Xerox’s Lean Six Sigma?
12. What do today’s Chinese quality systems strongly emphasize on?
ANS:
13. Describe the steps taken by Huawei’s senior management to become the “Toyota of the telecom
industry.”
14. Discuss the key features of the QuEST forum.
15. What are the key areas in corporation health that are measured by the executive management team
balanced scorecard at Huawei?