Question 1

Which of the following is not an element of a Quality Improvement Program?
A) Emphasizing subjective data over difficult-to-analyze objective data
B) Maintaining SOPs for routine and crisis situations
C) Assuming employees are self-motivated and innovative
D) Focusing on customer satisfaction

Accepted Answer

Emphasizing subjective data over difficult-to-analyze objective data is not an element of a Quality Improvement Program. Quality Improvement Programs employ data-driven decision making and prioritize objective data over subjective data.

Question 2

Which pair of parameters describes the "candidates for divestiture" quadrant in the DEA strategic matrix?
A) Low efficiency, low profit
B) Low efficiency, high profit
C) High efficiency, high profit
D) High efficiency, low profit

Accepted Answer

The "candidates for divestiture" quadrant is characterized by high efficiency but low profitability, meaning that these areas of the business are operating efficiently but not generating enough profits. Therefore, the best choice is D, which represents high efficiency, low profit.

Question 3

DEA circumvents the need to develop standard costs for each service when comparing the efficiency of multiple service units that provide similar services.

Accepted Answer

DEA (Data Envelopment Analysis) is a non-parametric approach that compares the efficiency of multiple service units that provide similar services by identifying the best performing unit and setting it as the standard. This avoids the need to develop standard costs for each service.

Question 4

Process capability index measures the variability in a process.

Accepted Answer

The answer of Process capability index measures the variability in...

Question 5

The objective of Six Sigma is to eliminate variation in process performance.

Accepted Answer

The answer of The objective of Six Sigma is to...

Question 6

Continuous improvement is a valuable concept, but it lacks measurement techniques.

Accepted Answer

Continuous improvement can and should be measured through various methods such as before-and-after comparisons, feedback from stakeholders, and key performance indicators.

Question 7

A process capability index of two centered on the mean just meets Six Sigma standards.

Accepted Answer

The answer of A process capability index of two centered...

Question 8

Data envelopment analysis (DEA) is best used in an environment of low divergence and high complexity.

Accepted Answer

DEA is most effective in environments with high divergence among units being analyzed, as it allows for the comparison of performance across diverse entities, and it can handle high complexity in the data.

Question 9

Pareto chart is an arrangement of data where the causes of a problem are arranged in ascending frequency of occurrence in order to highlight the most likely cause.

Accepted Answer

A Pareto chart arranges the causes of a problem in descending order of frequency of occurrence, not ascending, to highlight the most significant issues first.

Question 10

Lean service is based upon the Toyota Production System.

Accepted Answer

Lean service is indeed based upon the Toyota Production System, which focuses on continuous improvement, waste reduction, and improving overall efficiency in service industries.

Question 11

ISO 9002 does not apply to organizations that perform design and service activities.

Accepted Answer

ISO 9002 was a standard for quality management systems that applied to production and installation processes, excluding design and development activities. Organizations involved in design and service activities would not use ISO 9002; they would use ISO 9001.

Question 12

Data Envelopment Analysis (DEA) is a method for:
A) measuring a firm's quality performance by comparing it with other companies that are recognized as "best in class."
B) determining the feasibility of technological innovations in service operations.
C) analyzing the gap between the service customer's expectations and perceptions.
D) comparing the efficiency of multiple service units that provide similar services.

Accepted Answer

DEA is a method used to compare the efficiency of multiple service units that provide similar services. It is a non-parametric method that evaluates the performance of decision-making units (DMUs) relative to other DMUs in the system. DEA is useful for identifying best practices and benchmarks for improving efficiency within an organization.

Question 13

The fishbone chart offers a structured approach for a team to identify, explore, and display graphically all of the possible causes of a problem.

Accepted Answer

The fishbone chart, also known as Ishikawa diagram or cause-and-effect diagram, is a tool used in quality control to identify and explore potential causes of a problem. It offers a structured approach to visually display different categories or branches of possible causes, enabling a team to analyze and understand the root cause of a problem.

Question 14

Data Envelopment Analysis (DEA), when used repeatedly, can facilitate the competitive strategy of cost leadership.

Accepted Answer

DEA is a technique used to evaluate the efficiency of a firm in using its inputs to produce outputs. It can be used repeatedly to identify areas where the firm can cut costs and improve efficiency, thereby facilitating the competitive strategy of cost leadership.

Question 15

Benchmarking measures a firm's quality performance by comparing it to the performance of other companies that are known for being "best in class."

Accepted Answer

Benchmarking involves comparing a firm's performance to that of other companies that are considered to be leaders or "best in class" in a particular area. This allows the firm to identify areas where it may need to improve and learn from the practices of successful companies in the same industry.

Question 16

What are the two dimensions in the DEA strategic matrix?
A) Efficiency and profit
B) Efficiency and quality
C) Profit and quality
D) Profit and location

Accepted Answer

The answer of What are the two dimensions in the...

Question 17

The Malcolm Baldrige Quality Award measures the quality of products manufactured or services delivered.

Accepted Answer

The answer of The Malcolm Baldrige Quality Award measures the...

Question 18

The objective of lean service is a purposeful flow of satisfied customers. 
Multiple Choice

Accepted Answer

The answer of The objective of lean service is a...

Question 19

Because customers participate directly in the service process, the success of technological innovation is dependent upon:
A) the user-friendliness of the innovation.
B) the ability of customers to pay for the service.
C) customer acceptance.
D) market research.

Accepted Answer

Customers are a direct part of the service process, thus their acceptance of the technological innovation is crucial for its success. The other options may also be important, but customer acceptance is the most important factor in determining the success of technological innovation in a service setting.

Question 20

The Deming wheel is a repetitive cycle where quality improvements result from continuous incremental turns of the wheel.

Accepted Answer

The Deming wheel, also known as the PDCA cycle (Plan-Do-Check-Act), is a continuous improvement process where each turn of the wheel builds upon the previous one to achieve better quality outcomes. Therefore, it is a repetitive cycle of continuous incremental improvements.

Quiz 7: Process Improvement

Which of the following is not an element of a Quality Improvement Program?

Which pair of parameters describes the "candidates for divestiture" quadrant in the DEA strategic matrix?