Question 1

External failure costs include warranty costs and managerial time handling customer complaints.

Accepted Answer

External failure costs are the costs incurred due to product or service not meeting customer expectations, such as warranty costs, repair costs, and time spent handling customer complaints.

Question 2

In statistical process control (SPC),special or assignable causes of variation:
A)are intrinsic to the process and will always be there unless the process is changed.
B)are outside,nonrandom problems such as breakdown of machinery,material variation,or human error.
C)have everything to do with the underlying process and can only be eliminated by changing the process.
D)are of secondary importance in quality control procedures used to detect and eliminate variation.
E)can be present in a process that is fully capable of meeting specifications consistently.

Accepted Answer

Special/assignable causes of variation are non-random factors that can be attributed to specific events or factors outside of the normal operation of the process, such as machine breakdowns or material variation. These causes can be identified and eliminated, while common causes of variation are inherent to the process and cannot be fully eliminated.

Question 3

A formal service quality evaluation process:
A)measures the gap between service expectations and performance perceptions.
B)is relatively simple and applicable for all types of services.
C)is performed exactly the same as it is for goods.
D)is impossible to quantify if the service is highly intangible.
E)is most easily done on the buyer's premises.

Accepted Answer

A formal service quality evaluation process measures the gap between service expectations and performance perceptions. This is the most accurate way to evaluate service quality, as it takes into account the customer's perceptions and expectations. It is not a simple process and requires specific measurements and tools, and it may not be applicable for all types of services. While it is possible to quantify service quality even for highly intangible services, it may be more challenging. The evaluation process can be done on the buyer's premises, but it can also be done off-site.

Question 4

Examples of prevention costs include:
A)employee training and awareness costs.
B)costs of pre-certifying and qualifying suppliers.
C)inspection and testing costs.
D)employee training and awareness costs,and costs of pre-certifying and qualifying suppliers.
E)employee training and awareness costs,costs of pre-certifying and qualifying suppliers,and inspection and testing costs.

Accepted Answer

Prevention costs are expenses related to preventing defects before they happen. This includes costs for activities such as employee training and awareness to prevent mistakes, and pre-certifying and qualifying suppliers to ensure quality inputs. Inspection and testing costs are considered appraisal costs, not prevention costs.

Question 5

A six sigma (6σ)approach to quality:
A)means there are no more than 25 defects per million opportunities.
B)was developed by Japanese companies in the 1950s.
C)has no connection to the concept of zero defects.
D)focuses on preventing defects by using data to reduce variation and waste.
E)has soft goals such as happier customers and employees.

Accepted Answer

A six sigma approach to quality focuses on preventing defects by using data to reduce variation and waste. It aims to achieve no more than 3.4 defects per million opportunities, which is equivalent to a 99.99966% defect-free rate. This approach has a direct connection to the concept of zero defects and is not focused on softer goals such as happier customers and employees. While it was popularized by Japanese companies in the 1950s, it was developed by Motorola in the 1980s.

Question 6

The real costs of quality:
A)tend to rise significantly with the cost of prevention.
B)rise significantly as defects increase in the finished product.
C)are incurred in the quality control department.
D)are easily identified by the accounting department.
E)are frequently overstated in an organization.

Accepted Answer

The costs of quality increase significantly as defects increase in the finished product because more resources must be allocated towards reworking, repairing, or scrapping defective items. The cost of prevention, while important in reducing defects, may not necessarily result in a corresponding increase in costs. The costs of quality are not solely incurred in the quality control department and may include costs associated with lost revenue, decreased customer satisfaction, and damage to the organization's reputation. While the accounting department may track and report on the costs of quality, they are not easily identified and may require careful analysis to accurately determine. The statement that the costs of quality are frequently overstated is not accurate as quality issues can have significant and long-lasting impacts on an organization's performance.

Question 7

The process capability index (Cp)combines process spread and tolerance into one index and indicates whether process variation is satisfactory.

Accepted Answer

The process capability index (Cp) is calculated by dividing the tolerance (the range of acceptable values for a product or service) by the process spread (the amount of variation in the process). A higher Cp value indicates that the process is more capable of producing products or services that meet the specified requirements. Therefore, Cp combines process spread and tolerance into one index and indicates whether process variation is satisfactory.

Question 8

The allocation between buyer and seller of the costs incurred when materials are rejected is affected by the kind of materials rejected,trade customs,the buyer's cost accounting procedures,and the positions of strength of each organization.

Accepted Answer

The allocation between buyer and seller of the costs incurred when materials are rejected is dependent on several factors, including the type of materials rejected, trade customs, the cost accounting procedures of the buyer, and the relative strength of each organization. Therefore, the statement is true.

Question 9

If a process is stable and predictable:
A)the process averages a varying number of standard deviations.
B)common causes have been eliminated through process change.
C)the probability of it meeting customer specifications can be predicted.
D)it produces the same exact result each time the activity is performed.
E)random causes have been detected and eliminated.

Accepted Answer

A stable and predictable process means its performance can be statistically forecasted, allowing for the prediction of its ability to meet customer specifications. This does not necessarily mean that common or random causes of variation have been eliminated, nor does it imply that the process produces the exact same result every time or that the process averages vary in terms of standard deviations.

Question 10

A sampling technique in which every element in the population has an equal chance of being selected is called:
A)additive sampling.
B)sequential sampling.
C)100 percent testing.
D)random sampling.
E)cumulative sampling.

Accepted Answer

Random sampling ensures that every element in the population has an equal chance of being selected, making it a fair and unbiased technique.

Question 11

A supplier certification program:
A)adds cost to the supplier,but provides few benefits to the supplier.
B)may improve quality,but at best will not raise costs.
C)always improves quality,but usually at a higher purchase price.
D)may enable the buyer and seller to lower costs and improve quality.
E)typically costs more to implement than the value of the quality improvement.

Accepted Answer

A supplier certification program can benefit both the buyer and the seller by enabling them to lower costs and improve quality through improved communication, increased efficiency, and better performance management. While there may be some costs associated with implementing the program, such as training and auditing, the long-term benefits of improved quality and lower costs make it a worthwhile investment for both parties involved.

Question 12

Lean is a management philosophy that focuses on:
A)prevention,appraisal and internal failure costs.
B)data to reduce variation and waste.
C)maximizing customer value while eliminating waste.
D)the voice of the customer.
E)statistical quality control (SQC)techniques.

Accepted Answer

Lean management philosophy is all about maximizing customer value by minimizing waste. It is a systematic approach to identifying and eliminating waste through continuous improvement, giving the customer what they want, when they want it, with minimal waste and a focus on quality. Lean is not just a cost-cutting process but rather a process that creates value for the customer while improving quality, productivity, and speed. Thus, the best choice is C.

Question 13

Determination of the "best buy" is based on:
A)suitability for a given use.
B)a balance between price and quality.
C)technical considerations only.
D)the internal user or specifier's perceptions.
E)trade-offs among stakeholders (e.g. ,marketing,operations,and supply).

Accepted Answer

The answer of Determination of the "best buy" is based...

Question 14

Internal failure costs include the costs of inspection,testing,and measuring product or service quality.

Accepted Answer

Internal failure costs are costs associated with defects found before the product or service is delivered to the customer, such as scrap, rework, and downtime, not the costs of inspection, testing, and measuring, which are considered appraisal costs.

Question 15

Process variation that are intrinsic to the process are:
A)common,nonassignable causes of variation.
B)special or assignable causes of variation.
C)prevention costs.
D)internal failure costs.
E)external failure costs.

Accepted Answer

Intrinsic (or natural) process variation refers to the common causes of variation that are inherent to the process itself, and cannot be attributed to any specific factors or events (i.e. nonassignable causes). Examples might include fluctuations in temperature or humidity, wear and tear on machinery, or natural variations in materials or inputs. These types of variation are expected and normal, and can often be managed through statistical process control methods.

Question 16

Quality function deployment:
A)seeks to understand what value represents to the customer.
B)is a system for deploying quality at supplier facilities.
C)provides direction on the appropriate level of product performance and which features should be included.
D)seeks to understand what value represents to the customer and is a system for deploying quality at supplier facilities.
E)seeks to understand what value represents to the customer,and provides direction on the appropriate level of product performance and which features should be included.

Accepted Answer

Quality function deployment seeks to understand what value represents to the customer, provides direction on the appropriate level of product performance, and which features should be included. It does not focus on deploying quality at supplier facilities.

Question 17

Some estimates place the total costs of quality to be:
A)insignificant to the cost of the final product.
B)10-20 percent of the final product cost.
C)20-30 percent of the final product cost.
D)30-40 percent of the final product cost.
E)40-50 percent of the final product cost.

Accepted Answer

The answer of Some estimates place the total costs of...

Question 18

Operator action is not required when process output exceeds the upper control limit (UCL)or dips below the lower control limit (LCL).

Accepted Answer

When process output exceeds the UCL or dips below the LCL, it indicates that the process is out of control, and operator action is typically required to investigate and correct the cause of the variation.

Question 19

ISO 9001:2015 provides a tested framework for a systematic approach to consistently delivering product that satisfies customers' expectations by:
A)dictating how quality requirements should be met in every organization.
B)dictating scope and flexibility for quality system implementation.
C)assuming all national cultures will meet quality requirements the same way.
D)assuming all business sectors will meet quality requirements the same way.
E)providing a set of standardized requirements a quality system must meet.

Accepted Answer

ISO 9001:2015 provides a set of standardized requirements a quality system must meet, which allows for flexibility in implementation while ensuring consistency in delivering products that satisfy customers' expectations. It does not dictate how quality requirements should be met in every organization, assume all national cultures or business sectors will meet quality requirements the same way.

Question 20

Deming's 14 points stress the importance of:
A)setting numeric quotas.
B)using slogans and targets for the workforce as a means of improving quality.
C)annual rating or merit systems.
D)dual sourcing as a means of improving quality costs.
E)ceasing dependence on inspection.

Accepted Answer

Deming's 14 points emphasize the need to focus on improving processes rather than relying solely on inspection to ensure quality. This is reflected in point number three, which states "Cease dependence on inspection to achieve quality." Therefore, choice E is the correct answer. The other options given (A, B, C, and D) are not mentioned as important factors by Deming.

Quiz 7: Quality

External failure costs include warranty costs and managerial time handling customer complaints.

In statistical process control (SPC) ,special or assignable causes of variation:

A formal service quality evaluation process:

Examples of prevention costs include:

A six sigma (6σ) approach to quality:

The real costs of quality:

The process capability index (Cp)combines process spread and tolerance into one index and indicates whether process variation is satisfactory.

The allocation between buyer and seller of the costs incurred when materials are rejected is affected by the kind of materials rejected,trade customs,the buyer's cost accounting procedures,and the positions of strength of each organization.

If a process is stable and predictable:

A sampling technique in which every element in the population has an equal chance of being selected is called:

A supplier certification program:

Lean is a management philosophy that focuses on:

Determination of the "best buy" is based on:

Internal failure costs include the costs of inspection,testing,and measuring product or service quality.

Process variation that are intrinsic to the process are:

Quality function deployment:

Some estimates place the total costs of quality to be:

Operator action is not required when process output exceeds the upper control limit (UCL)or dips below the lower control limit (LCL).

ISO 9001:2015 provides a tested framework for a systematic approach to consistently delivering product that satisfies customers' expectations by:

Deming's 14 points stress the importance of: