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Home » Business Development » Page 286

Business Development

Q: As he entered his broker's office for the first time, the young associate professor was dazzled by its tasteful accoutrements and the offer of a double tall, split shot, skinny, hazelnut latte. He knew his lottery winnings would be safe here, thanks to his: A) broker's conformance to specifications. B) broker's fitness for use. C) broker's support. D) own psychological impressions.

Q: If a product initially fails to live up to the customer's expectations, which dimension of quality might salvage the sale and the company's reputation? A) psychological impressions B) fitness for use C) support D) value

Q: Quality measured with reference to price is captured by the notion of: A) conformance to specifications. B) value. C) fitness for use. D) psychological impressions.

Q: As an operations manager, which definition of quality do you have the most control over? A) conformance to specifications B) support C) psychological impressions D) value

Q: The TQM wheel features ________ at its center. A) incremental improvement B) customer satisfaction C) employee teams D) leadership

Q: A firm's internal program in employee involvement includes which of the following considerations? A) defining who is the customer B) supplier management C) product availability D) psychological impressions

Q: Which one of the following statements is a key feature of both TQM and Six Sigma? A) Quality is primarily the responsibility of all employees in the organization. B) Quality is primarily the responsibility of the quality control department. C) Quality is primarily the responsibility of the production department. D) Quality is primarily the responsibility of top management.

Q: "Quality at the source" implies: A) less expensive raw materials. B) lower scrap. C) higher rework costs. D) more final-test inspectors.

Q: The Six Sigma improvement model can be applied both to projects involving incremental improvements to processes and to projects requiring major changes.

Q: Because Six Sigma involves the elimination of defects, it can only be applied in manufacturing processes.

Q: Applying Six Sigma to service processes is more challenging than for manufacturing processes.

Q: The Six Sigma five-step approach contains the elements define, measure, analyze, improve, and control.

Q: People often evaluate the quality of a service on the basis of psychological impressions.

Q: Quality at the source refers to the effort to catch and correct any mistakes as they are being made by those that are making them.

Q: Internal customers are those that have some familial relation working at the business providing the good or service.

Q: The notion of internal customers applies to all parts of a firm.

Q: One of the principles that total quality management (TQM) stresses is customer satisfaction.

Q: What is the long-term impact of unethical business practices on product and service quality?

Q: Illustrate the differences between prevention and appraisal costs using a restaurant setting as an example.

Q: ________ costs are associated with preventing defects before they happen.

Q: ________ costs arise when a defect is discovered after the customer has received the product or service.

Q: ________ is an internal cost of quality incurred when a process step must be performed again or fixed before an item can be shipped.

Q: The internal failure known as ________ occurs when an item is unfit for further processing.

Q: At which of the following steps will the cost of detecting product defects be the highest? A) customer B) process C) final testing D) raw material

Q: Which one of the following is a potential consequence of external failures? A) longer lead times B) less rework C) more litigation costs D) lower product costs

Q: Which one of the following is part of prevention costs? A) the costs of quality audits B) the costs resulting from scrap C) the costs of improving process design and product design D) the costs of lawsuits from injury from use of the product

Q: When errors have been made while producing a product such that the item must be discarded, the resultant cost is called a(n): A) warranty. B) scrap cost. C) rework cost. D) external failure cost.

Q: A cost that is incurred if some aspect of a service must be performed again is called a(n): A) yield loss. B) prevention cost. C) appraisal cost. D) rework cost.

Q: Which one of the following statements is true? A) Appraisal costs decrease as quality level decreases. B) Appraisal costs increase as the variation of output increases. C) Appraisal costs increase as the variation of output decreases. D) Appraisal costs increase as quality level increases.

Q: Which one of the following is considered to be an appraisal cost? A) cost of quality audits B) cost of supplier programs C) cost of rework D) cost of process design

Q: Increasing the quality level by better products and processes may: A) allow a company to raise the price of the product. B) move a company closer to a competitive priority of price. C) reduce prevention costs. D) ensure that the trade-off between prevention costs and other costs of poor quality is worthwhile.

Q: Which one of the following is a consequence of internal failures? A) increased customer service B) increased inventory costs C) increased productivity D) decreased lead time

Q: Improving quality seems to be a strategic weapon in gaining market share. However, improving quality entails allocation of resources and effort. As greater effort is expended to stop defects before they occur, which one of the following costs increases? A) prevention costs B) appraisal costs C) internal failure costs D) external failure costs

Q: A professor, dissatisfied with a product he's purchased, bad mouths the product to his class, resulting in decreased market share (since the students believe everything he tells them). The manufacturer suffers: A) an internal failure cost. B) an external failure cost. C) a prevention cost. D) an appraisal cost.

Q: A prime example of an internal failure cost is the: A) labor cost associated with inspecting every item produced. B) labor cost associated with repairing an item returned under warranty. C) material cost of a piece of stock metal that has had too large a hole drilled in it. D) material cost of the paint applied to the case of a finished unit.

Q: Which of the following would be considered an appraisal cost of quality? A) training workers to perform their jobs B) purchasing better tools for workers to perform their jobs C) repairing an item under the warranty D) running a functional test on each item before it is boxed for shipment

Q: Which of the following would be considered a prevention cost of quality? A) inspecting incoming raw materials B) training workers to perform their jobs C) issuing a recall of defective product before another customer is injured D) performing a 24 hour burn-in on every item produced to make sure it works before it is shipped

Q: When a process fails to satisfy a customer: A) it is quite often the customer's fault. B) it is considered a defect. C) it is time to reengineer the process. D) it is usually half the customer's fault and half the company's fault.

Q: Since an employee's responsibility is to move production along, it is ethical to knowingly pass defective services or products to internal or external customers when capacity is tight.

Q: From an ethical standpoint, it is not a requirement to consider the greater societal effects of decisions that reduce the costs of quality.

Q: An example of an internal failure cost would be warranty cost.

Q: Appraisal costs are associated with preventing defects before they happen.

Q: The investment a company makes in training employees to perform their duties and redesigning products and processes to improve them would be categorized as prevention costs.

Q: Describe the systems approach for total quality management by outlining the four pillars of TQM and discussing challenges organizations face in implementing this approach.

Q: The TQM pillar of ________ involves the use of tools such as process control and process capability.

Q: ________ of employees to do their jobs with decision-making autonomy is required for the intersection between employee involvement and continuous improvement.

Q: With respect to the systems approach of TQM, failure to manage the ________ is where most companies fall short in achieving quality objectives.

Q: Management by fact is required for which of the following intersections within the TQM systems approach? A) Management Commitment and Leadership and Continuous Improvement B) Continuous Improvement and Employee Involvement C) Employee involvement and Analytical Process Thinking D) Analytical Process Thinking and Management Commitment and Leadership

Q: Rejecting product materials due to poor quality of the samples would be an example of which TQM pillar? A) Management Commitment and Leadership B) Continuous Improvement C) Employee Involvement D) Analytical Process Thinking

Q: A quality-focused CEO who promotes a culture of quality is an example of which of the four TQM pillars? A) Management Commitment and Leadership B) Continuous Improvement C) Employee Involvement D) Analytical Process Thinking

Q: Training employees on how to utilize a statistical quality tool would be an example of the intersection between employee involvement and analytical process thinking.

Q: Most companies fall short in achieving their quality objectives due to a failure of managing processes.

Q: It is not necessary for lower-level employees to be engaged or involved in TQM.

Q: The focus of total quality management is always on the needs of the customer.

Q: Continuous improvement is one of the four pillars of TQM.

Q: What are the benefits of ISO certification?

Q: Explain the difference between the Baldrige Performance Excellence Program and ISO 9001:2008.

Q: The ________ section of the Baldrige Performance Excellence Program has the greatest emphasis.

Q: ________ is the international standard governing documentation of a quality program.

Q: The Baldrige Performance Excellence Program is administered by: A) NASA. B) NIST. C) NORAD. D) NOOB.

Q: Among the seven criteria in the Baldrige Performance Excellence Program, which has the greatest weight in scoring? A) Leadership B) Customer Focus C) Operations Focus D) Results

Q: The Baldrige Performance Excellence Program: A) focuses on large manufacturing companies because of the impact they have on the economy. B) involves seven major criteria that are built on the base of customer satisfaction. C) is a set of standards governing the requirements for documentation of a quality program. D) was devised by the International Organization for Standardization for companies doing business in Europe.

Q: The Baldrige Performance Excellence Program: A) involves a rigorous review process that often helps the companies define what quality means to them, regardless of the outcome. B) focuses on large manufacturing companies because of the impact they have on the economy. C) is a set of standards governing the requirements for documentation of a quality program. D) was devised by the International Organization for Standardization for companies doing business in Europe.

Q: Which of these ISO standards has the greatest number of organizations certified as of 2009? A) ISO 9001:2008. B) ISO 14000:2004. C) ISO 19000:2008. D) ISO 26000:2010.

Q: The ISO 9001:2008 standard: A) emphasizes corporate leadership as a means of determining who receives the award. B) has the greatest number of points awarded for business results. C) is awarded by the U.S. government each year. D) addresses quality system documentation.

Q: Strategic planning is given the most weight among the Baldrige Performance Excellence Program.

Q: Financial and market results are one consideration of the Baldrige Performance Excellence Program.

Q: The Baldrige Performance Excellence Program considers a company's business results but ISO 9001:2008 registration does not.

Q: ISO 9001:2008 standards provide strict guidelines for how products are to be produced.

Q: What is the difference between the Cp and Cpk measures? Provide an example of a situation in which a process might perform well on one measure but poorly on the other.

Q: A firm targeting Six Sigma quality will use a process capability ratio of ________ as their goal.

Q: A manufacturer embarking on a Six Sigma program sets the goal of having true Six Sigma capability for all processes by the end of the month. If their current process capability index on a key metric is less than 2.0 and the process capability ratio is 1.25, what must happen with the process standard deviation? A) The process standard deviation must be reduced by about 25%. B) The process standard deviation must be reduced by about 37%. C) The process standard deviation must be reduced by about 50%. D) The process standard deviation must be reduced by about 67%.

Q: A manufacturer embarking on a Six Sigma program sets the goal of having true Six Sigma capability for all processes by the end of the month. If their current process capability index on a key metric is less than 2.0 and the process capability ratio is 1.70, what must happen with the process standard deviation? A) The process standard deviation must be reduced by 50%. B) The process standard deviation must be reduced by 33%. C) The process standard deviation must be reduced by 25%. D) The process standard deviation must be reduced by 15%.

Q: A manufacturer embarking on a Six Sigma program sets the goal of having true Six Sigma capability for all processes by the end of the month. If their current process capability index on a key metric is less than 2.0 and the process capability ratio is 1.5, what must happen with the process standard deviation? A) The process standard deviation must be reduced by 25%. B) The process standard deviation must be reduced by 33%. C) The process standard deviation must be reduced by 50%. D) The process standard deviation must be reduced by 67%.

Q: A manufacturer embarking on a Six Sigma program sets the goal of having true Six Sigma capability for all processes by the end of the month. If their current process capability index on a key metric is less than 2.0 and the process capability ratio is 1.0, what must happen with the process standard deviation? A) The process standard deviation must be doubled. B) The process standard deviation must be reduced by a factor of six. C) The process standard deviation must be cut in half. D) The process tolerances should be doubled.

Q: A laser surgery process has tolerances of plus or minus .01 inches. What does the process standard deviation need to be in order for this process to have a capability ratio of 1.00? A) 0.02 inches B) 0.0033 inches C) 0.002 inches D) 0.033 inches

Q: A laser eye surgery process has tolerances of plus or minus .001 inches. What does the process standard deviation need to be in order for this process to have a capability ratio of 1.33? A) 0.025 inches B) 0.0015 inches C) 0.015 inches D) 0.00025 inches

Q: MKS Inc., produces meter sticks that have a target length of 100 centimeters with upper and lower specification limits of 100.05 and 99.95 centimeters respectively. Their existing process produces meter sticks with an average length of 100.00 centimeters and a standard deviation of 0.015 centimeters. What is their current process capability index? A) 0.44 B) 0.83 C) 1.11 D) 1.26

Q: MKS Inc., produces meter sticks that have a target length of 100 centimeters with upper and lower specification limits of 100.05 and 99.95 centimeters respectively. They are considering the purchase of a new machine that can hold a process output average exactly to target with a standard deviation of 0.02. Which would their process capability index be if they splurged and purchased the new machine? A) 0.44 B) 0.83 C) 1.26 D) 1.78

Q: MKS Inc., produces meter sticks that have a target length of 100 centimeters with upper and lower specification limits of 100.05 and 99.95 centimeters respectively. Their existing process produces meter sticks with an average length of 99.97 centimeters and a standard deviation of 0.015 centimeters. What is their process capability index? A) 0.44 B) 0.83 C) 1.26 D) 1.78

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