Question 1

Ken is a production operator who plots a sample of the product and finds that it is outside the upper or lower specification limits on the control chart. What should he do?

Accepted Answer

The answer of Ken is a production operator who plots...

Question 2

________ means analyzing a competitor's product to identify desirable improvements, while ________ means evaluating paperwork to determine the value it adds for customers.

Accepted Answer

Competitive product analysis involves analyzing a competitor's product to identify desirable improvements, while value added analysis involves evaluating paperwork to determine the value it adds for customers. Therefore, option C is the correct choice as it matches the definitions given for each term.

Question 3

________ focuses on improving both the quality and productivity of an organization's operations.

Accepted Answer

The answer of ________ focuses on improving both the quality...

Question 4

When Motorola wanted to reduce the time between receipt and delivery of a customer's order for cellular phones, it studied Domino's Pizza procedures for delivery cycles. This is an example of

Accepted Answer

This is an example of benchmarking, which involves identifying best practices from other companies or industries and applying them to improve one's own processes. In this case, Motorola learned from Domino's Pizza's delivery cycles to improve its own order processing and delivery times.

Question 5

Which of the following is an internal failure that should be considered in a quality/cost study of Honey Nuggets cereal?

Accepted Answer

Internal failures refer to defects that are identified before a product is shipped to the customer. Option B refers to expenses incurred during production before bad products leave the plant, making it an internal failure. Options A and C refer to appraisal and prevention costs, respectively, which are not considered failures. Option D refers to external failure costs, which occur when bad products reach the consumer. Option E is incorrect as not all options are related to internal failures.

Question 6

________ occurs when a company compares its current performance against its own past performance, while ________ occurs when a company compares its current performance against the performance of its competitors.

Accepted Answer

Internal benchmarking is when a company compares its current performance against its own past performance, while external benchmarking is when a company compares its current performance against the performance of its competitors. Thus, option B correctly defines these terms. The other options either do not accurately define the terms or present unrelated concepts.

Question 7

In ISO 9000:2000, which of the following is not required for certification?

Accepted Answer

ISO 9000:2000 does not require proving that the company has sound financial practices for certification. However, it does require documented procedures for testing products, fixing product defects, keeping records, and testing products.

Question 8

ISO 9000:2000 certified businesses must

Accepted Answer

ISO 9000:2000 requires businesses to have documented procedures for each stage of production in order to ensure consistency and effectiveness in their processes. This helps to improve quality and reduce errors or defects. The other options (B, C, D, and E) are all important factors in producing high-quality goods, but they do not necessarily reflect the specific requirements of ISO 9000:2000 certification.

Question 9

Which of the following is an external failure that should be considered in a quality/cost study of Honey Nuggets cereal?

Accepted Answer

An external failure in a quality/cost study refers to expenses incurred after bad products reach the consumer. Therefore, the cost of external failure for Honey Nuggets cereal would include expenses related to consumer complaints, returns, and lost sales due to the bad product reaching the market. Options A, B and C refer to internal failures which occur before the product is shipped to the consumer, such as overfilling boxes, production expenses, and sorting out bad boxes.

Question 10

Business process re-engineering is

Accepted Answer

Business process re-engineering involves the redesign of a company's existing processes to improve their performance, quality, and productivity. It typically involves the analysis and redesign of business workflows to improve efficiency, reduce costs, and increase value to customers. This approach often involves radical changes to the way a company operates, rethinking fundamental assumptions about what it does and how it does it.

Question 11

The quality program that is being adopted by many multinational firms is

Accepted Answer

ISO 9000 is the most common quality program adopted by many multinational firms. It is a set of international standards for quality management and is recognized worldwide. The ISO 9000 standards provide a framework for companies to ensure consistency and effectiveness in meeting customer requirements and improving their overall performance. QC 2000, ROQ, IQS 8000, and TQM 2001 are not widely recognized or adopted as quality programs by multinational firms.

Question 12

ISO 9000 standards allow firms to demonstrate that they follow documented procedures for all of the following except

Accepted Answer

ISO 9000 standards focus on quality management and ensuring that a company follows documented procedures for all aspects of their operations, including fixing product defects, testing products, training workers, and keeping records. However, ISO 9000 standards do not specifically address re-engineering, so B is the correct answer.

Question 13

Which of the following best describes ISO 9000?

Accepted Answer

ISO 9000 is a program that provides certification for organizations that have met the International Organization for Standardization's quality management standards. It focuses on ensuring consistent quality in an organization's products and services.

Question 14

Which term identifies the results of a quality/cost study that identified expenses incurred during production before unacceptable products leave the plant?

Accepted Answer

Internal failures refer to expenses during production that are incurred before unacceptable products leave the plant. This is identified through a quality/cost study, which analyzes the cost of quality and identifies opportunities for improvement. External failures, on the other hand, refer to expenses incurred after the product has left the plant and reached the customer. Six Sigma and quality circles are methodologies and tools used to improve quality, but do not specifically refer to the results of a quality/cost study. Boundary-spanning failures refer to communication and coordination breakdowns between different departments or organizations.

Question 15

Which of the following best describes business process re-engineering?

Accepted Answer

Business process re-engineering involves the redesigning of business activities to improve performance, quality, and productivity. It is focused on analyzing and improving business processes from end to end, rather than just making small incremental changes.

Question 16

ISO 9000 is

Accepted Answer

ISO 9000 is a program that certifies that a facility has met quality management standards set forth by the International Organization for Standardization. The certification is achieved through a rigorous auditing and evaluation process, and indicates that the facility has implemented effective quality management practices.

Question 17

All of the following are examples of an external failure except

Accepted Answer

Raw materials costs are not an example of external failure because they do not involve selling or distributing defective products to customers. Instead, they are a cost incurred by the company in the procurement of materials to manufacture its products. Refunds, transportation costs to return defective products, factory recalls, and possible lawsuits are all examples of external failures because they result from defects in the company's products that have been sold or distributed to customers.

Question 18

The Coast Capital Savings Credit Union branch in Surrey, B.C., simplified the banking experience of its customers and developed an innovative new service called "You're the Boss Mortgage" which was named the Mortgage of the Year by canadianmortgagetrends.com. This is an example of

Accepted Answer

Developing a new service, such as the "You're the Boss Mortgage," that simplifies the banking experience and meets the needs of customers demonstrates an approach of getting closer to the customer.

Question 19

Which of the following is not a function of quality improvement teams?

Accepted Answer

All of the above functions are performed by quality improvement teams. They work collaboratively to identify problems, gather data, analyze potential solutions, and ultimately implement improvements to enhance the quality of the products, services or processes they are responsible for.

Question 20

Quality/cost studies show what a firm's current costs are, and also reveal

Accepted Answer

Quality/cost studies not only reveal a firm's current costs but also highlight areas where cost-savings potential is high. This helps the firm identify where they can make improvements and reduce expenses.

Quiz 10: Operations Management, Productivity, and Quality