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Indicate whether the statement is true or false.
1. The cost of quality refers specifically to the costs associated with avoiding poor quality or those incurred as a result of
poor quality.
a. True
b. False
2. Checksheets are special types of data-collection forms in which the results need additional processing in order to be
interpreted.
a. True
b. False
3. The International Organization for Standardization (ISO) is a specialized agency for standardization. The term, ISO, is
a scientific term that means equal.
a. True
b. False
4. Service quality is consistently meeting or exceeding customer expectations (external focus) and service-delivery system
performance criteria (internal focus) during all service encounters.
a. True
b. False
5. The Deming cycle is composed of four stages: prepare, deliver, simplify, and achieve (PDSA).
a. True
b. False
6. The GAP model helps managers analyze goods and services and the processes that make and deliver them to identify
and close the largest gaps and improve performance.
a. True
b. False
7. A kaizen event is an approach for mistake-proofing processes, using automatic devices or methods to avoid simple
human error.
a. True
b. False
8. Six Sigma cannot be applied to service processes.
a. True
b. False
Indicate the answer choice that best completes the statement or answers the question.
9. A _____ is a basic statistical tool that graphically shows the frequency or number of observations of a particular value
or within a specified group.
a. flowchart
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b. histogram
c. cause-and-effect diagram
d. scatter diagram
10. Identify a true statement about International Organization for Standardization (ISO) 9000.
a. It states that generic management practices can never be standardized.
b. Its standards do not apply to services such as health care, banking, and transportation.
c. It is the first version of the ISO family of standards.
d. Its standards apply to all types of businesses, including electronics and chemicals.
11. Marin is the manufacturing coordinator of a food and beverage company. Recently, some of the products were
rejected by the quality control department because they failed to meet the quality standards. Upon inspection, a number of
defects were found at multiple stages of production. Marin wants to identify the defects that have the most impact on the
whole production process. In this case, which of the following quality control (QC) tools should she use?
a. A flowchart
b. A histogram
c. A cause-and-effect diagram
d. A Pareto diagram
12. The _____ concept characterizes quality performance by defects per million opportunities.
a. Deming cycle
b. ISO 9000
c. Gap model
d. Six Sigma
13. Identify a true statement about the GAP model.
a. It defines quality system standards based on the premise that certain generic characteristics of management
practices can be standardized.
b. Minimizing gaps 4 and 5 will result in low customer satisfaction.
c. Failure to understand and minimize gaps presents the risk of losing customer loyalty.
d. It eliminates causes of defects and errors in manufacturing and service processes by focusing on outputs that are
critical to customers.
14. Identify a true statement about Joseph M. Juran’s philosophy of quality management.
a. He advocated the use of quality cost measurement to focus attention on quality problems.
b. He argued that employees at different levels of an organization speak one common language.
c. He proposed a major cultural change in the organization.
d. He stated that there is no such thing as a quality problem.
15. Isa is head of housekeeping services at the Ashworth Hotel, a luxury hotel and resort. Last week, she received 29
customer complaints. A total of 428 guests had stayed in the hotel that week. Given this information, find out the errors
per million opportunities.
a. 400 errors per million opportunities
b. 23,456 errors per million opportunities
c. 67,757 errors per million opportunities
d. 14,758,620 errors per million opportunities
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16. In the context of SERVQUAL, _____ is the caring, individual attention a firm provides to its customers.
a. responsiveness
b. reliability
c. assurance
d. empathy
17. _____ costs are costs incurred as a result of unsatisfactory quality that is found before the delivery of a good or service
to the customer.
a. Prevention
b. Appraisal
c. Internal failure
d. External failure
18. Which of the following definitions of quality is proposed by Joseph M. Juran?
a. Quality means conformance to requirements.
b. Quality is fitness for use.
c. A product or a service possesses quality if it helps somebody and enjoys a good and sustainable market.
d. A product or a service possesses quality if it consistently exceeds customer expectations.
19. _____ in the GAP model is the discrepancy between actual manufacturing and service-delivery system performance
and external communications to the customers.
a. Gap 1
b. Gap 2
c. Gap 3
d. Gap 4
20. _____ costs are costs expended to keep nonconforming goods and services from being made and reaching the
customer.
a. Prevention
b. Appraisal
c. Internal failure
d. External failure
21. Josephine’s T-Shirts faced a lot of complaints from customers when its recent batch of long-sleeved shirts was
dispatched. The employees at Josephine’s T-Shirts, hence, had to rework on the returned items, and in some cases, the
company had to even replace the faulty goods. In this case, the costs incurred by Josephine’s T-Shirts are an example of
_____ costs.
a. prevention
b. appraisal
c. internal failure
d. external failure
22. Luca, the operations manager a company that produces ground coffee beans, wants to know the sequence of the
production process in the company to determine if any process can be combined or eliminated. In this case, a _____ will
suit Luca’s requirement.
a. run chart
b. flow chart
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c. checksheet
d. histogram
23. According to Philip B. Crosby’s Absolutes of Quality Management philosophy, _____.
a. quality means conformance to elegance
b. there is no such thing as a quality problem
c. there is no such thing as zero defects
d. the only performance measurement is the economics of quality
24. A run chart is a line graph in which _____.
a. data are plotted over time
b. data are constantly moving forward
c. data charted is from a long time period
d. data is considered dynamic
25. The management of Breedlove Communications, a wireless headphone manufacturing company, wants all employees
in the organization to contribute to the quality of the firm by setting a long-term goal to make small, gradual, and frequent
improvements without a large financial investment. Given this information, Breedlove Communications embraces an
approach known as _____.
a. the Gap model
b. kaizen
c. Six Sigma
d. the 5-Why Technique
26. The principles of customer focus, leadership, engagement, process approach, improvement, evidence-based decision
making, and relationship management support the _____.
a. Gap model
b. Deming philosophy
c. Crosby’s Absolutes of Quality Management
d. ISO
27. _____ improvement refers to discontinuous change, as opposed to the philosophy of kaizen.
a. Dynamic
b. Procedural
c. Benchmarking
d. Breakthrough
28. The board of directors at Blaine Glassworks want their company’s products to be of higher quality than the products of
other companies in the market, and think that they are hitting this target. However, a recent survey found that customers
rate the company’s products as below average due to the inferior process design specifications in the company. This is an
example of _____ in the GAP model.
a. Gap 2
b. Gap 3
c. Gap 4
d. Gap 5
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29. Which of the following statements is true of SERVQUAL?
a. Quality is simply ensuring that goods and services consistently conform to specifications.
b. It is designed to apply to all service industries.
c. It uses 15 dimensions of service quality performance.
d. Empathy is the ability to provide what was promised, dependably and accurately.
30. Gap 3 in the GAP model is the discrepancy between:
a. the customer’s expectations and perceptions.
b. management’s perceptions of what features constitute a target level of quality and the task of translating these
perceptions into executable specifications.
c. quality specifications documented in operating and training manuals and plans and their implementation.
d. customer expectations and management perceptions of those expectations.
31. Which of the following statements is true of the Deming cycle?
a. It institutes a top-down management style, in which the leadership comes from the executives, and all other levels
of employees must follow their commands.
b. It refers to the repetition required in order to create a perfect process that leads to zero defective products and
100% customer satisfaction.
c. It involves a series of trials, after which the best process is selected.
d. It guides teams to develop an improvement plan, try it out, examine the results, and institute changes, then repeat
the cycle.
32. _____ is a business improvement approach that seeks to find and eliminate causes of defects and errors in
manufacturing and service processes by focusing on outputs that are critical to customers, resulting in a clear financial
return for the organization.
a. Six Sigma
b. The GAP model
c. Poka-yoke
d. A kaizen event
33. Which of the following statements is true of Gap 3 in the GAP model?
a. It can be minimized by making senior managers work in frontline jobs a few days every year so that they keep in
contact with customers and frontline employees.
b. It is where the customer judges quality and makes future purchase decisions.
c. It can be minimized by advertising.
d. It recognizes that manufacturing and service delivery systems must execute quality specifications well.
34. _____ are targets and tolerances determined by designers of goods and services.
a. Defects
b. Specifications
c. Units of work
d. Costs of quality
35. Identify a true statement about kaizen.
a. It is based on the concept of continuous improvement.
b. It focuses on short-term impact.
c. It is performed on a part-time basis.
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d. It involves a huge financial investment.
36. Which of the following is a core philosophy of Six Sigma?
a. Achieving cycle time reduction
b. Increasing non-value-added activities
c. Avoiding errors per million opportunities as a standard metric
d. Increasing variation in cash flow
37. Huran Co., a food manufacturer, encountered a blown fuse during manufacturing. Although they were able to fix it
and resume operations, they used the 5-Why Technique to determine the _____ of the problem.
a. poka-yoke
b. root cause
c. long-term effect
d. symptom
38. At Bueller Tractors, a few machines in the assembly section were faulty and had to be shut down till they were
repaired. This reduced the output of tractors for the quarter. In this case, the costs incurred by Bueller Tractors for
repairing the machines are an example of _____ costs.
a. prevention
b. appraisal
c. internal failure
d. external failure
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Answer Key
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