Deck 26: Quality Management and Measurement

Question 1

The Deming Prize for quality originated in Japan.

Answer 1

True

Question 2

Many traditional cost-based information systems do not provide the value-based information needed in today's business environment.

Answer 2

True

Question 3

Benchmarking is the measurement of the gap between the company's best previous quality and its current quality.

Answer 3

False

Question 4

Total quality management (TQM)requires all business functions to work together to ensure product quality.

Question 5

The Baldrige performance criteria focus on a single aspect of quality.

Question 6

The EFQM Excellence Award was established by a Japanese Union of Scientists and Engineers to honor individuals and groups who have contributed to the development and dissemination of total quality control.

Question 7

The organization that promotes improvement in quality worldwide is called the International Organization for Standardization.

Question 8

Return on quality (ROQ)results when marginal revenues made possible by a higher quality product exceed the marginal costs of providing the higher quality.

Question 9

The Six Sigma quality standard was used by Motorola to improve its performance.

Question 10

A drawback of Six Sigma quality is diminishing worker moral.

Question 11

Quality in manufacturing simply means a product has to be dependable and free of defects.

Question 12

Process mapping helps managers identify unnecessary efforts and inefficiencies in a business process.

Question 13

The concept of quality can also embody such intangibles as brand prestige and life style.

Question 14

Managers' concerns about the quality of a product or service include customer expectations and perceptions.

Question 15

Managers must not base quality standards for the products on expected ROQ.

Question 16

Reducing the costs of quality and increasing overall product quality can be achieved simultaneously.

Question 17

ISO guidelines have not been adopted worldwide.

Question 18

Service businesses cannot measure the quality of their work.

Question 19

In 1987,the U.S.Congress created the Deming Prize to recognize U.S.organizations for their achievements in quality and business performance.

Question 20

Although focus on quality is considered a modern management issue,the Deming Prize was actually established in the 1950s.

Question 21

Malcolm Baldrige National Quality Award winners are encouraged to maintain their company secrets for achieving quality.

Question 22

The company that focuses on the costs of conformance will have low costs of nonconformance.

Question 23

Warranty claims are an example of internal failure costs of nonconformance to customer standards.

Question 24

External failure costs are the costs incurred after the product is shipped or the service is delivered to the customer.

Question 25

Low costs of conformance usually result in high costs of nonconformance.

Question 26

Selected vendors become an integral part of the production team's quality efforts and may contribute to product design.

Question 27

The ISO promotes standardization with a view of facilitating the international exchange of goods and services.

Question 28

Internal failure costs and prevention costs make up the costs of conformance.

Question 29

Customer satisfaction is measured by the percentage of returned orders and the number of customer complaints.

Question 30

To become ISO certified,an organization must pass a rigorous third-party audit of its manufacturing and service processes.

Question 31

Nonfinancial measures of quality do not include delivery cycle time.

Question 32

The sale and shipment of a product marks the end of performance measurement.

Question 33

The key to good quality control is to have periodic inspection points staffed by qualified quality control personnel.

Question 34

Nonfinancial measures of quality include vendor performance.

Question 35

The first step in ensuring the production of high-quality products is to have a sound product design.

Question 36

As a result of the ISO-certification process,ISO-certified companies have detailed documentation of their operations.

Question 37

The key to good quality control is to evaluate quality early enough so that changes are made before the product reaches the customer.

Question 38

The company with the highest ratio of costs of conformance to total costs of quality is the most likely to succeed.

Question 39

The two components of costs of quality are costs of conformance and costs of nonconformance.

Question 40

Total quality management seeks continuous improvement on product quality and analyzes performance using only nonfinancial measures.

Question 41

Which of the following is awarded to U.S.organizations only,but whose criteria for performance excellence is accepted as the standard by organizations worldwide?

A)EFQM Excellence Award
B)Malcolm Baldrige National Quality Award
C)ISO 9000 Award
D)Deming Prize

Question 42

The gradual and ongoing improvement of products and processes while reducing costs is known as

A)TQM.
B)process mapping.
C)kaizen.
D)benchmarking.

Question 43

Today's MIS focuses on activities rather than costs.

Question 44

Which of the following is a quality framework that can be used as a diagnostic tool by organizations?

A)EFQM Excellence Model
B)Deming Model
C)ISO 70 Series
D)None of these

Question 45

A disadvantage of SaaS is low data security due to multiple company data co-existing on a shared web infrastructure.

Question 46

Managers can use MIS to monitor the changing buying habits of their customers.

Question 47

Which of the following has the goal of having customers perceive the company's products and services as perfect?

A)Total quality management
B)Kaizen
C)Six Sigma
D)All of these options

Question 48

Using MIS data to develop forecasts and budgets falls under the planning stage of the management process.

Question 49

An ERP system is a low-cost alternative to an SaaS system.

Question 50

Two respected techniques made popular by Six Sigma are

A)TQM and ROQ.
B)TQM and kaizen.
C)kaizen and benchmarking.
D)benchmarking and process mapping.

Question 51

The ISO 9000 series guidelines

A)standardize quality management and quality assurance.
B)are adopted worldwide.
C)follow eight quality management principles.
D)do/are all of these.

Question 52

A Japanese award given to honor individuals or groups who have contributed to the development and dissemination of total quality control is the

A)EFQM Excellence Award.
B)Deming Prize.
C)Malcolm Baldrige National Quality Award.
D)ISO 9000 Award.

Question 53

Which of the following ISO standards address minimizing the harmful environmental effects of business and continually improving environmental performance?

A)ISO 9000
B)ISO 14000
C)ISO 26000
D)ISO 31000

Question 54

Which of the following is awarded to businesses and organizations in Europe that excel in quality management?

A)EFQM Excellence Award
B)Deming Prize
C)Malcolm Baldrige National Quality Award
D)ISO 9000 Award

Question 55

Quality costs of conformance and costs of nonconformance are related to each other

A)rarely.
B)directly.
C)indirectly.
D)inversely.

Question 56

A benchmark is a measurement of the gap between the quality of a company's process and the quality of a parallel process

A)within the same company.
B)in an idealistic situation.
C)in a best-in-class company.
D)in a worst-in-class company.

Question 57

The gradual and ongoing improvement of products and processes while reducing costs is known as

A)TQM.
B)process mapping.
C)kaizen.
D)benchmarking.

Question 58

An ERP system combines the management of all major business activities with support activities to form one easy-to-access,centralized data warehouse.

Question 59

Which of these is not a category considered for evaluation when awarding the Malcolm Baldrige Quality Award?

A)Leadership
B)Strategic Planning
C)Operating Income
D)Customer Focus

Question 60

Which of the following was created by the U.S.Congress to recognize quality and performance excellence?

A)EFQM Excellence Award
B)Deming Prize
C)Malcolm Baldrige National Quality Award
D)ISO 9000 Award

Question 61

Based on the following data,which department is least committed to TQM?

A)Dept.X
B)Dept.Y
C)Dept.Z
D)Insufficient data to determine answer.

Question 62

XYZ Cosmetics,Inc.has developed a set of nonfinancial measures to evaluate on-time product delivery performance for one of its best-selling cosmetics.The following data have been generated for the past four weeks: Compute delivery cycle time for Week 3.

A)3.3 days
B)5.7 days
C)6.7 days
D)9.1 days

Question 63

XYZ Cosmetics,Inc.has developed a set of nonfinancial measures to evaluate on-time product delivery performance for one of its best-selling cosmetics.The following data have been generated for the past four weeks: Compute delivery cycle time for Week 2.

A)3.0 days
B)6.4 days
C)8.7 days
D)7.0 days

Question 64

Phelps Company manufactures custom-designed filtering equipment for swimming pools and tanks.In May 2014,the company had sales of $895,000 and incurred the following costs of quality: The total costs of quality as a percentage of sales were

A)3.5%
B)4.0%
C)4.5%
D)5.0%

Question 65

Based on the following data,which department is most committed to TQM?

A)Dept.X
B)Dept.Y
C)Dept.Z
D)Insufficient data to determine answer.

Question 66

The overall objective of controlling the costs of quality is to eliminate

A)appraisal costs.
B)costs of nonconformance.
C)costs of conformance.
D)the costs of quality.

Question 67

The costs of quality are made up of

A)prevention costs and appraisal costs.
B)internal failure costs and external failure costs.
C)costs of conformance and costs of nonconformance.
D)product design and production performance.

Question 68

Phelps Company manufactures custom-designed filtering equipment for swimming pools and tanks.In May 2014,the company incurred the following costs of quality: Total quality costs of nonconformance for May were

A)$24,200.
B)$13,700.
C)$10,200.
D)$8,200.

Question 69

The costs of nonconformance are made up of

A)prevention costs and appraisal costs.
B)internal failure costs and external failure costs.
C)vendor performance and customer satisfaction.
D)product design and production performance.

Question 70

Warranty claims and adjustments are examples of

A)prevention costs.
B)appraisal costs.
C)internal failure costs.
D)external failure costs.

Question 71

Based on the graph,which company is the least serious about TQM?

A)A Co.
B)B Co.
C)C Co.
D)Insufficient data to determine answer.

Question 72

The costs of conformance are made up of

A)prevention costs and appraisal costs.
B)internal failure costs and external failure costs.
C)vendor performance and customer satisfaction.
D)product design and production performance.

Question 73

Scrap and rework are examples of

A)prevention costs.
B)appraisal costs.
C)internal failure costs.
D)external failure costs.

Question 74

Which of the following is a good indicator of management's strong commitment to product quality?

A)Product recalls increased as a percentage of sales
B)Nonconformance costs increased as a percentage of total quality costs
C)Customer service costs reduced by 70 percent over the previous year
D)High costs of conformance to quality

Question 75

Phelps Company manufactures custom-designed filtering equipment for swimming pools and tanks.In May 2014,the company had net sales of $895,000 and incurred the following costs of quality: The costs of nonconformance to percentage of net sales was

A)1.1%
B)2.9%
C)4.0%
D)4.5%

Question 76

Phelps Company manufactures custom-designed filtering equipment for swimming pools and tanks.In May 2014,the company incurred the following costs of quality: Total quality costs of conformance for May were

A)$27,600.
B)$11,600.
C)$25,600.
D)$22,100.

Question 77

Phelps Company manufactures custom-designed filtering equipment for swimming pools and tanks.In May 2014,the company had sales of $895,000 and incurred the following costs of quality: The ratio of the costs of conformance to total costs of quality was

A)0.04 to 1
B)0.28 to 1
C)0.72 to 1
D)1 to 1

Question 78

Quality training of employees is an example of

A)a prevention cost.
B)an appraisal cost.
C)an internal failure costs.
D)an external failure cost.

Question 79

Which of the following is not an example of a conformance cost?

A)Prevention cost
B)Appraisal cost
C)External failure cost
D)Quality engineering cost

Question 80

Based on the graph,which company is taking the most serious approach to TQM?

A)A Co.
B)B Co.
C)C Co.
D)Insufficient data to determine answer.