56) Explain the four important skills that effective leaders exhibit.
57) What is the relationship between quality and ethics?
58) Give reasons why the effects of quality on business results are mixed.
59) Explain the relationship between quality and cost.
60) What are the three broad categories of the PAF paradigm?
A) performance, appraisal, and functional costs
B) process, assessment, and failure costs
C) prevention, appraisal, and failure costs
D) performance, assessment, and failure costs
E) process, appraisal, and functional costs
61) ________ costs are costs that limit the occurrence of defects and imperfections.
A) Process
B) Assessment
C) Prevention
D) Failure
E) Appraisal
62) ________ costs include costs such as training, quality planning, process engineering, and
other costs associated with quality beforehand.
A) Prevention
B) Process
C) Appraisal
D) Assessment
E) Failure
63) Which of the following is considered a prevention cost?
A) cost of troubleshooting
B) laboratory acceptance testing
C) warranty
D) supplier quality assurance
E) on-site performance tests
64) ________ costs are associated with the direct costs of measuring quality.
A) Failure
B) Appraisal
C) Assessment
D) Prevention
E) Process
65) ________ costs include lab testing, inspection, test equipment and materials, and losses due
to destructive tests.
A) Assessment
B) Failure
C) Prevention
D) Appraisal
E) Process
66) Which of the following is considered an appraisal cost?
A) supplier assessment
B) cost of troubleshooting
C) process waste
D) robust design
E) product quality audits
67) ________ failure costs are those associated with online failure.
A) Indirect
B) Generic
C) External
D) Internal
E) Direct
68) ________ failure costs are associated with product failure after the production process.
A) External
B) Indirect
C) Direct
D) Generic
E) Internal
69) Failure after the customer takes possession of the product results in a(n) ________ failure
cost.
A) indirect
B) generic
C) external
D) internal
E) direct
70) Which of the following is considered a failure cost?
A) on-site performance tests
B) warranty
C) supplier quality assurance
D) robust design
E) product quality audits
71) Using the ________, quality costs can be modeled to show the trade-offs between these
costs.
A) law of diminishing marginal returns
B) order-winning criterion
C) forced-choice model
D) supply chain strategy
E) PAF paradigm
72) Using the law of diminishing marginal returns, quality costs can be modeled to show the
trade-offs between these costs. This trade-off model is called the ________.
A) order-winning criterion
B) supply chain model
C) PAF paradigm
D) forced-choice model
E) Lundvall-Juran model
73) The Lundvall-Juran quality cost model states that ________.
A) as quality increases, customer satisfaction increases
B) as expenditures in inspection and control activities increase, quality conformance decreases
C) as design and manufacturing costs increase, quality increases
D) as expenditures in prevention and appraisal activities increase, quality conformance increases
E) as inspection costs increase, customer satisfaction decreases
74) Appraisal costs include costs such as training and quality planning.
75) Appraisal costs are associated with the direct costs of measuring quality.
76) Supplier monitoring is an example of a preventive cost.
77) Failure costs are categorized into tangible failure costs and intangible failure costs.
78) Internal failure costs are the costs associated with online failure.
79) External failure costs are associated with product failure after the production process.
80) Warranties and concessions are examples of failure costs.
81) Increasing prevention and appraisal costs could result in a significant increase in failure
costs.
82) The Lundvall-Juran quality cost model states that as expenditures in appraisal activities
increase, quality conformance should decrease.
83) Explain the three categories of quality costs.
84) What is the Lundvall-Juran Quality Cost Model?
85) If a product is regional or is marketed to a particular segment of the population, then the
generic strategy in use is ________.
A) quality
B) cost
C) differentiation
D) flexibility
E) focus
86) The key to the Hill model for strategic quality planning is reaching consensus on the
________.
A) order-winning criterion
B) Lundvall-Juran model
C) supply chain model
D) PAF paradigm
E) forced-choice model
87) ________ is built upon a foundation of long-term commitment to quality and continual
process improvement.
A) Core competency
B) Process engineering
C) Task management
D) Quality control
E) Employee empowerment
88) Which generic strategy is being utilized if a customer perceives uniqueness of a high-status
product or service?
A) quality
B) cost
C) differentiation
D) flexibility
E) focus
89) An example of a generic focus strategy would be targeting baby-boomers by marketing
fitness clubs for seniors.
90) Differentiation is achieved by a competitor if the consumer merely perceives the product or
service to be unique.
91) The order winning criterion cannot be applied to service strategy.
92) Core competencies diminish with use.
93) Core competency is built on the foundation of a long-term commitment to quality and
continual process improvement.
94) The forced-choice model is only useful for companies that are experienced in strategic
planning.
95) Explain the importance for the Hill model in reaching a consensus on the order-winning
criterion (OWC).
96) Explain quality as a core competency.
97) Explain the forced-choice model of strategic planning.
98) Kanri refers to ________.
A) quality control
B) employee empowerment
C) product development
D) management control
E) quality conformance
99) A method for strategic quality planning where a three- to five-year plan is developed along
with the current year’s objectives is called the ________.
A) logistics model
B) PAF paradigm
C) sustainability process
D) Hoshin planning process
E) forced-choice model
100) Catchball is the term used to describe the ________ nature of the Hoshin planning process.
A) simple
B) complex
C) interactive
D) iterative
E) competitive
101) Which of the following is the first step in the Hoshin planning process?
A) product management action plans
B) senior management action plans
C) product management development of one-year goals
D) senior management development of one-year goals
E) development of three- to five-year goals
102) Kanri is the term used to describe the interactive nature of the Hoshin planning process.
103) Catchball involves reporting from teams and feedback from management.
104) Explain the Hoshin planning process.