Operation Management Chapter 6

23 February 2023
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Quality
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the ability of a product or service to meet customer needs
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User-based
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high quality means better performance
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A successful quality strategy features which of the following elements? A) an organizational culture that fosters quality B) an understanding of the principles of quality C) engaging employees in the necessary activities to implement quality D) A and C E) A, B, and C
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E) A, B, and C
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Quality can improve profitability by reducing costs. Which of the following is not an aspect of reduced costs by quality improvements?
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A) flexible pricing
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"Quality lies in the eyes of the beholder" is:
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B) a user-based definition of quality.
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"Making it right the first time" is:
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C) a manufacturing-based definition of quality.
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Three broad categories of definitions of quality are:
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B) user based, manufacturing based, and product based.
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According to the manufacturing-based definition of quality:
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D) quality is the degree to which a specific product conforms to standards.
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Which of the four major categories of quality costs is particularly hard to quantify?
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D) external failure costs
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Manufacturing based
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quality means conforming to standards and "making it right the first time"
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Product based
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quality as a precise and measurable variable
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Company reputation
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an organization can expect its reputation for quality to follow it.
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ISO 9000 International Quality Standards
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A set of quality standards developed by the international organization for standardization (ISO). It focuses to enhance success through eight quality management principles
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All of the following costs are likely to decrease as a result of better quality EXCEPT: A) customer dissatisfaction costs. B) inspection costs. C) scrap costs. D) warranty and service costs. E) maintenance costs.
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E) maintenance costs.
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Which of the four major categories of quality costs is particularly hard to quantify? A) prevention costs B) appraisal costs C) internal failure costs D) external failure costs E) None is hard to quantify.
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D) external failure costs
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Which of the following statements is NOT true? A) Self-promotion is not a substitute for quality products. B) Inferior products harm a firm's profitability and a nation's balance of payments. C) Product liability transfers from the manufacturer to the retailer once the retailer accepts delivery of the product. D) Quality-be it good or bad-will show up in perceptions about a firm's new products, employment practices, and supplier relations. E) Legislation such as the Consumer Product Safety Act sets and enforces product standards by banning products that do not reach those standards.
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C) Product liability transfers from the manufacturer to the retailer once the retailer accepts delivery of the product.
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"The employee cannot produce products that on average exceed the quality of what the process is capable of producing" expresses a basic philosophy in the writings of:
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D) W. Edwards Deming.
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"Quality Is Free," meaning that the costs of poor quality have been understated, is the work of:
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C) Philip B. Crosby.
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Stakeholders who are affected by the production and marketing of poor quality products include:
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A) stockholders, employees, and customers.
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Regarding the quality of design, production, and distribution of products, an ethical requirement for management is to:
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A) determine whether any of the organization's stakeholders are being wronged by poor quality products.
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To become ISO 9000 certified, organizations must: A) document quality procedures. B) have an onsite assessment. C) have an ongoing series of audits of their products or service. D) all of the above
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D) all of the above
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What is a set of quality standards developed by the International Organization for Standardization?
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E) ISO 9000
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______ costs result from production of defective parts or services before delivery to the customer.
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Internal failure
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The work by ________ regarding how people learn from each other's successes led to the field of cross-functional teamwork.
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Armand Feigenbaum
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Not only customers, but stockholders, suppliers, and others, are among the ________ whose values must be protected in making ethical decisions concerning the quality of products.
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stakeholders
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Identify the four costs of quality. Which one is hardest to evaluate? Explain.
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The four costs are internal failure, external failure, prevention, and appraisal. The hardest category to estimate is external failure costs, or costs that occur after delivery of defective parts or services. These costs are very hard to quantify.
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State the American Society for Quality's definition of quality. Of the three "flavors" or categories of quality definitions, which type is it? Explain.
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"The totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs." This is user based, as evidenced by the reference to needs, not to specifications or ingredients.
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Quality has at least three categories of definitions; identify them. Provide a brief explanation of each.
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The three categories of quality are user based (in the eyes of the beholder), manufacturing based (conforming to standards), and product-based (measurable content of product).
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In a sentence or two, summarize the contribution of Philip Crosby to quality management.
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In his book, Quality Is Free, Crosby pointed out that the costs of poor quality are understated, and that understatement made it easier for firms to accept low quality results. He also promoted "zero defects" and doing the job right the first time.
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The focus of ISO 9000 is to enhance success through what eight quality management principles?
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(1) top management leadership, (2) customer satisfaction, (3) continual improvement, (4) involvement of people, (5) process analysis, (6) use of data-driven decision making, (7) a systems approach to management, and (8) mutually beneficial supplier relationships
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TQM is important because each of the ten decisions made by operations managers deals with some aspect of identifying and meeting customer expectations.
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TRUE
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The phrase Six Sigma has two meanings. One is statistical, referring to an extremely high process, product, or service capability; the other is a comprehensive system for achieving and sustaining business success.
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TRUE
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Continuous improvement is based on the philosophy that any aspect of an operation can be improved.
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TRUE
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Kaizen is similar to TQM in that both are focused on continuous improvement.
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TRUE
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Quality circles empower employees to improve productivity by finding solutions to work-related problems in their work area.
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TRUE
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Benchmarking requires the comparison of your firm to other organizations; it is not appropriate to benchmark by comparing one of your divisions to another of your divisions.
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FALSE
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One of the ways that just-in-time (or JIT) influences quality is that by reducing inventory, bad quality is exposed.
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TRUE
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The philosophy of zero defects is:
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E) consistent with the commitment to continuous improvement.
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PDCA, developed by Shewhart, stands for which of the following?
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A) Plan-Do-Check-Act
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PDCA is most often applied with regard to which aspect of TQM?
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C) continuous improvement
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A Three Sigma program has how many defects per million?
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D) 2700
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A Six Sigma program has how many defects per million?
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A) 3.4
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Total quality management emphasizes:
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B) a commitment to quality that goes beyond internal company issues to suppliers and customers.
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A successful TQM program incorporates all EXCEPT which of the following? A) continuous improvement B) employee involvement C) benchmarking D) centralized decision-making authority E) JIT
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D) centralized decision-making authority
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Kaizen is a Japanese term meaning:
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E) continuous improvement.
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Which of the following statements regarding "Six Sigma" is TRUE?
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The term has two distinct meanings-one is statistical; the other is a comprehensive quality system.
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Techniques for building employee empowerment include: A) building communication networks that include employees. B) developing open, supportive supervisors. C) moving responsibility from both managers and staff to production employees. D) building high-morale organizations. E) All of the above are techniques for employee empowerment.
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E) All of the above are techniques for employee empowerment.
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Building high-morale organizations and building communication networks that include employees are both elements of:
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C) employee empowerment.
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The process of identifying other organizations that are best at some facet of your operations and then modeling your organization after them is known as:
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C) benchmarking.
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Costs of dissatisfaction, repair costs, and warranty costs are elements of cost in the:
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A) quality loss function.
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A quality loss function includes all of the following costs EXCEPT: A) the cost of scrap and repair. B) the cost of customer dissatisfaction. C) inspection, warranty, and service costs. D) sales costs. E) costs to society.
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D) sales costs.
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_______ is the Japanese word for the ongoing process of unending improvement.
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Kaizen
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Enlarging employee jobs so that the added responsibility and authority is moved to the lowest level possible in the organization is called ________.
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employee empowerment
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A group of employees that meet on a regular basis with a facilitator to solve work-related problems in their work area is a(n) ________.
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quality circle
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Identify the five steps of DMAIC.
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(1) Define the project's purpose, scope, and outputs and then identify the required process information, keeping in mind the customer's definition of quality; (2) Measure the process and collect data; (3) Analyze the data, ensuring repeatability (the results can be duplicated), and reproducibility (others get the same result); (4) Improve, by modifying or redesigning, existing processes and procedures; and (5) Control the new process to make sure performance levels are maintained.
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What steps can be taken to develop benchmarks?
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The steps are: (1) determine what to benchmark, (2) form a benchmarking team, (3) identify benchmarking partners, (4) collect and analyze benchmarking information, and (5) take action to match or exceed the benchmark.
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Explain how just-in-time processes relate to the quality of an organization's outputs.
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JIT reduces costs of quality by lowering waste and scrap. JIT improves quality by shortening the time between error detection and error correction. Meanwhile, better quality means less inventory and a better JIT system.
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What is the difference between conformance-oriented quality and target-oriented quality?
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With conformance-oriented quality, any unit that meets specifications is acceptable, whether it is on the edges or center of the specification range. Target-oriented quality treats output as better the closer it is to exactly what the customer wants.
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Identify the seven major concepts of TQM.
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The major concepts of total quality management are (1) continuous improvement, (2) Six Sigma, (3) employee empowerment, (4) benchmarking, (5) just-in-time (JIT), (6) Taguchi concepts, and (7) knowledge of TQM tools.
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What is the quality loss function (QLF)?
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The quality loss function identifies all costs connected with poor quality and shows how these costs increase as the product quality moves away from being exactly what the customer wants.
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Pareto charts are a graphical way of identifying the few critical items from the many less important ones.
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TRUE
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A cause-and-effect diagram helps identify the sources of a problem.
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TRUE
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Pareto charts are used to:
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C) organize errors, problems, or defects.
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The "four Ms" of cause-and-effect diagrams are:
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A) material, machinery/equipment, manpower, and methods.
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Among the tools of TQM, the tool ordinarily used to aid in understanding the sequence of events through which a product travels is a:
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B) flowchart.
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The process improvement technique that sorts the vital few from the trivial many is:
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B) Pareto analysis.
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A fishbone chart is also known as a:
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A) cause-and-effect diagram.
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If a sample of parts is measured and the mean of the measurements is outside the control limits, the process is:
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B) out of control and the process should be investigated for assignable variation.
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______ diagrams use a schematic technique to discover possible locations of quality problems.
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Cause-and-effect, or Fishbone or Ishikawa
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________ are graphical presentations of data over time that show upper and lower control limits for processes we want to control.
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Control charts
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The goal of inspection is to:
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A) detect a bad process immediately.
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Which of the following is not a typical inspection point?
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E) after a costly process
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A good description of source inspection is inspecting:
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E) one's own work.
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A(n) ________ is a type of poka-yoke that lists the steps needed to ensure consistency and completeness in a task.
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checklist
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How is source inspection related to employee empowerment?
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Source inspection involves the operator ensuring that the job is done properly. These operators are empowered to self-check their own work. Employees that deal with a system on a daily basis have a better understanding of the system than anyone else, and they can be very effective at improving the system.
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What refers to training and empowering frontline workers to solve a problem immediately?
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service recovery
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Which of the determinants of service quality involves having the customer's best interests at heart?
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C) credibility
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Which of the determinants of service quality involves performing the service right the first time?
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D) reliability
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Identify the ten determinants of service quality. Describe two of them in a sentence or two each.
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The ten are reliability, responsiveness, competence, access, courtesy, communication, credibility, security, understanding/knowing the customer, and tangibles.
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Prevention cost
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costs associated with reducing the potential for defective parts or services
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Appraisal cost
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costs related to evaluating products, processes, parts, and services
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Internal failure cost
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costs that result from production of defective parts or services before deliver to customers
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External failure cost
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costs that occur after deliver of defective parts or services
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Total Quality Management (TQM)
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Refers to a quality emphasis that encompasses the entire organization, from supplier to customer
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Quality loss function (QLF):
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identifies all costs connected with poor quality and shows how these costs increase as the product moves away from being exactly what the customer wants. Loss to society = square of the distance from the target value - cost of the deviation at the specification limit.
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Target-oriented quality
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a philosophy of continuous improvement to bring the product exactly on target.
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Quality robust
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products that are consistently built to meet customer needs in spite of adverse conditions in the production process; removing the effects is often cheaper than removing the causes and more effective in producing a robust product
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Statistical process control (SPC)
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process used to monitor standards, make measurements and take corrective action as a product or service is being produced.
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Control charts
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graphic presentation of process data over time, with predetermined control limits
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Attribute inspection
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an inspection that classifies items as being either good or defective (not degree of failure)
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Variable inspection
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classification of inspected items as falling on a continuum scale, such as dimension or strength
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Source inspection
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controlling or monitoring at the point of production or purchase (source)