Question 1

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

D

Question 2

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 process variations are common, nonassignable causes of variation that are inherent in the process and cannot be controlled. They are caused by factors such as material variation, machine variation, and human variability.

Question 3

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 or assignable causes of variation are outside, nonrandom problems that are not a part of the inherent variability of the process. These causes can be identified and eliminated to improve the quality of the process. In contrast, common causes of variation are inherent to the process and cannot be easily eliminated.

Question 4

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 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. It is a data-driven approach that emphasizes process improvement and waste reduction. It is not related to the concept of zero defects and does not have soft goals like happier customers and employees. It was popularized by Motorola in the 1980s but has its roots in the work of Japanese companies in the 1950s.

Question 6

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

Accepted Answer

External failure costs are costs incurred after a product or service has been delivered to the customer and includes warranty costs and managerial time handling customer complaints.

Question 7

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 each element in the population has an equal chance of being selected, which is necessary for obtaining a representative sample that can be generalized to the entire population. The other options do not guarantee equal representation of all elements in the population.

Question 8

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 idea that inspection does not improve quality but rather prevention does. Therefore, ceasing dependence on inspection is the best choice as it aligns with Deming's philosophy. The other choices such as setting numeric quotas, using slogans, and annual rating systems are all counterproductive to Deming's approach to quality management. Dual sourcing may reduce costs, but it is not one of Deming's 14 points.

Question 9

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 10

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 that a quality system must meet, rather than dictating how quality requirements should be met in every organization. It allows scope and flexibility for quality system implementation but does not assume that all national cultures or business sectors will meet quality requirements in the same way.

Question 11

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 philosophy aims to maximize customer value while minimizing waste. It is a customer-centric approach that focuses on providing exactly what the customer needs, while reducing or eliminating any activities that do not add value. While data and statistical quality control (SQC) techniques are important tools in the lean approach, they are not the primary focus. Prevention, appraisal, and internal failure costs are part of the traditional quality control approach and are not specific to lean. The voice of the customer is important, but it is just one aspect of the customer-centric approach that characterizes lean.

Question 12

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 real costs of quality rise significantly as defects increase in the finished product. Prevention costs may reduce the likelihood of defects, but the cost of prevention does not necessarily correlate with the real costs of quality. The costs are not solely incurred in the quality control department and are not easily identified by the accounting department. While organizations may sometimes overstate the costs of quality, this is not a universal truth.

Question 13

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 is not specifically a system for deploying quality at supplier facilities (Option B).

Question 14

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

Accepted Answer

The statement is true. The process capability index (Cp) is calculated by dividing the specification width by the process spread, and it provides a single measure of process capability that takes into account both the spread of the process data and the tolerance specification. A Cp value of 1.0 or higher indicates that the process is capable of meeting the specification limits, while a Cp value below 1.0 indicates that the process is not capable of meeting the specification requirements.

Question 15

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 of costs for rejected materials can be affected by these various factors.

Question 16

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 may enable the buyer and seller to lower costs and improve quality. By certifying a supplier, a buyer can have confidence that the supplier is meeting certain quality standards, which reduces the risk of defective products and the associated costs of rework or returns. Additionally, suppliers who are certified may have access to new customers or markets, which provides a benefit to the supplier. While there may be some cost to implement the certification program, the potential benefits can outweigh the costs.

Question 17

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 incurred to avoid producing defective goods or services, including employee training and awareness to prevent defects, and pre-certifying suppliers to ensure quality inputs. Inspection and testing costs are considered appraisal costs, not prevention costs.

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

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

If a process is stable and predictable, the probability of it meeting customer specifications can be predicted. This means that the process is under control and variations can be predicted and managed, which is a key characteristic of a stable and predictable process. Option B is also a possibility, but not necessarily the only explanation for a stable and predictable process. Option D is not very likely as some variation is expected even in a stable process. The other options are not relevant to the definition of a stable and predictable process.

Question 20

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 is designed to measure the gap between service expectations and performance perceptions. This helps the service provider to identify areas where they are falling short and take corrective actions to improve service quality.

Quiz 7: Quality

Some estimates place the total costs of quality to be:

Process variation that are intrinsic to the process are:

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

Determination of the "best buy" is based on:

A six sigma (6σ) approach to quality:

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

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

Deming's 14 points stress the importance of:

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

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

Lean is a management philosophy that focuses on:

The real costs of quality:

Quality function deployment:

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.

A supplier certification program:

Examples of prevention costs include:

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

If a process is stable and predictable:

A formal service quality evaluation process: