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Finance

Q: A cause-and-effect diagram A.identifies common causes of quality defects . B.is often used in conjunction with a Pareto chart. C.is also called a fishbone diagram. D.has all of the above features.

Q: A Pareto diagram A.shows causes and effects of quality problems. B.shows the prevalence of the various types of defects that have been found. C.is not useful when first studying a quality problem. D.has both upper and lower specification limits.

Q: A process control chart A.assumes that 99.74% of special cause variation will fall between upper and lower limits. B.has upper and lower control limits set at 2 standard deviations from the center line. .separates the assignable cause of variation from the common cause of variation. D.assigns causes of variation to operator, machine, or material.

Q: Which of the following statements about process quality control is NOT true? A.Assignable cause variation is also referred as special cause variation. B.An observation outside the control limits is an example of a special cause of variation. C.Common cause variation can be eliminated from the process by removing the potential causes. D.The control limits will include 99.74% of the population under the normal probability distribution assuming that the process is in control.

Q: Sampling inspection by attributes A.means each item sampled is classified as defective or not defective based on quality standards. B.could be used together with process control and variable measurement as part of a quality control system. C.utilizes a discrete scale of measurement. D.a, b, and c.

Q: A complete system of quality control A.is defined by critical control points, inspectors, measurements, costs, and other considerations. B.involves a zero defects philosophy. C.requires a continuous scale for measurement of defects. D.must include both variable and attribute measurements.

Q: Describe the relationship between control costs, failure costs, and overall levels of quality.

Q: Describe the concept of rolled yield and how it is related to managing quality in a supply chain. Feedback: See below.

Q: The definition of quality management has evolved from "quality by inspection" toward "delivering competitive advantage to the firm." Briefly discuss the various definitions of quality management described in this chapter. Feedback: See below.

Q: If a company uses three parts in a product, each with a yield of 50%, the overall rolled yield will equal 50%.

Q: Scrap and rework are examples of internal failure costs.

Q: Availability refers to the length of time a product can be used before it fails.

Q: The Japanese term for mistake-proofing is "poka-yoke."

Q: The total cost of quality in an organization is the sum of control costs and failure costs.

Q: The Baldrige Award is only given in the United States.

Q: ISO 9000 standards guarantee that a product or service has no defects.

Q: SERVQUAL is widely used in practice to measure manufacturing operations such as production and assembling processes.

Q: It is important to determine the quality of design before producing the product.

Q: A supplier that guarantees 100% conforming parts to customers even though production yield at its plant is only 60% is a good candidate for supplier certification.

Q: Which of the following represents a current perspective on quality? A. Move from being product-oriented to being process-oriented. B. Quality is important, but meeting the production schedule is critical. C. Meeting quality expectations is worth it, even though overall production costs will increase. D. All of the above.

Q: For a health care clinic, complaints concerning the poor condition of the rest rooms fall under which dimension of service quality? A. Reliability B. Assurance C. Empathy D. None of the above

Q: Which of the following is NOT correct concerning modern views of quality management? A. There is an increasing emphasis on continuous improvement over and above conformance quality. B. It is the quality control departments responsibility to deal with the challenges of quality management. C. Quality, or the lack of quality, is largely determined by managerial action (or inaction). D.All of the above represent modern views of quality management.

Q: A product assembled of 10 purchased components, where the defective rate of each component is 0.5%, will result in finished product quality of A. 90%. B. 95.11%. C. 99.5%. D. none of the above.

Q: Which of the following statements regarding suppliers is true? A. Supplier quality is not a concern for most companies because most companies make what they need as opposed to sourcing raw materials or components externally. B. Suppliers should be included in the cross-functional product design team. C. Supplier management is essentially careful selection and then measurement of quality compliance. D. Supplier certification (e.g., ISO 9000) means their products are of highest quality.

Q: Which of the following does NOT contribute to customer expectations? A. Advertising and promotional content. B. Customer awareness of how to properly use the product or service. C. Competitors products and services. D. All of the above contribute to customer expectations.

Q: Which of the following is the most complete definition of quality? A. Quality means meeting or exceeding customer requirements now and in the future. B. Quality means close inspection and statistical control to ensure high-quality products. C. Quality means producing the product or delivering the service according to specifications. D. Quality means product availability, reliability, and maintainability.

Q: The cost of developing and conducting a training program for employees to help them manage the quality of their work best fits with A. internal failure cost. B. external failure cost. C. appraisal cost. D. prevention cost.

Q: Which of the following would NOT be considered a failure cost of quality? A. Cost of inspection and testingafter rework has been performed. B. Cost of final product testing that occurs at a distribution center. C. Cost of reworking a product so that it conforms to specifications. D. Costs associated with selling blemished products or factory seconds.

Q: Advantage Air Conditioning guarantees that any spare part for repairing air conditioners will be supplied within 24 hours. This policy best matches with A. availability. B. reliability. C. maintainability. D. none of the above.

Q: Which of the following is NOT a requirement for a successful quality improvement effort? A. Suppliers are certified as having a functioning quality system. B. The organization pursues a systemic approach to managing quality. C. The organization addresses its culture, philosophies, and values. D. The organization must select the right approach (e.g., ISO 9000, Malcolm Baldrige).

Q: The costs of quality include all of the following EXCEPT A. prevention costs. B. appraisal costs. C. supply chain failure costs. D. All of the above are costs of quality.

Q: Which of the following statements concerning the Malcolm Baldrige award is true? A. A disadvantage of the award process is its lack of flexibility, requiring each participating organization to follow the same standardized approach. B. The Baldrige criteria are based upon 1,000 points, allocated among four categories: strategy, information systems, business results, and conformance to documented procedures, policies, and training. C. The award was established in 1987 to promote better quality management practices and improved quality results by global competitors. D. For many companies the objective is not to win the award but to diagnose strengths and weaknesses of their management system.

Q: Which of the following statements concerning ISO 9000 is FALSE? A. ISO 9000 standards are meant to describe how a company should go about ensuring quality. B. ISO 9000 standards specify that a company must have a quality system in place that documents procedures, policies, and training. C. A quality manual and careful record keeping are integral elements of ISO 9000 documentation. D.An ISO 9000 registered company signifies the company produces products of the highest quality.

Q: Which of the following matches between the quality pioneers and their philosophies is INCORRECT? A. Deming emphasized a philosophy of verifying the quality of every finished product to ensure customer satisfaction. B. Juran emphasized the need for both performance breakthroughs and continuous improvement of processes. C. Both of the above are correct. D. Both of the above are incorrect.

Q: The concept of mistake-proofing was first developed in the 1960s by Shigeo Shingo. It was called A. kaizen. B. jidoka. C. gemba-walk. D. poka-yoke.

Q: Which of the following is NOT an element of the quality cycle? A. Interpretation of customer needs. B. Specification of quality attributes. C. Production of product as specified. D. Benchmarking product quality against best in class.

Q: Which of the following is NOT a dimension of SERVQUAL? A. Tangibles B. Responsiveness C. Empathy D. Conformance

Q: Service quality is based on the gap between A. customer expectation and actual service delivered. B. customer expectation and performance quality. C. customer expectation and conformance quality. D. actual service delivered and the potential service that can be delivered.

Q: Reliability refers to A. restoration of the product once it has failed. B. maintenance, repair, or replacement of the product once it has failed. C. the length of time a product can be used before it fails. D. the ratio between uptime and uptime plus downtime.

Q: The four dimensions of product quality include all of the following EXCEPT A. quality of design. B. quality function deployment. C. conformance quality. D. field service.

Q: The meaning of quality management has evolved greatly over the past century. Which of the following statements best exemplifies the current meaning of quality management? A. Continuous improvement, competitive advantage, and meeting or exceeding customer requirements. B. Inspection of every item produced to ensure that exact customer specifications are met. C. Production of parts within control limits and the maintenance of process output in a state of statistical control as measured by statistical process control tools to ensure consistent meeting of customer specifications. D.The collaboration of all functional disciplines for the purpose of designing and offering quality products and services.

Q: The Baldrige Award is given in which of the following categories? A.Manufacturing companies B.Small businesses C.Health care organizations D.All of the above

Q: If an organization were having difficulty trying to get customers' opinions into the definition of quality, which of the following approaches would be most suitable? A.TQM B.ISO 9000 certification C.Quality function deployment D.Six sigma

Q: The reason for failure of quality improvement efforts is A.managers continue to focus on short-term financial results. B.managers instinctively blame employees when there is a quality failure. C.managers interfere with teamwork. D.all of the above.

Q: Costs of inspectors, testing, testing equipment, and labs are examples of A.prevention costs. B.appraisal costs. C.internal failure costs. D.external failure costs.

Q: Which of the following is the most important criterion (highest number of points) of the Malcolm Baldrige National Quality Award? A.Operations B.Results C.Customers D.Leadership

Q: Which of the quality gurus advocated organizations driving out employee fear? A.Deming B.Juran C.Ishikawa D.Taguchi

Q: Which of the following is correct about the philosophies advocated by Joseph Juran? A.Juran originated the idea of the quality trilogy. B.Juran stressed the use of statistical methods to control quality. C.Juran believed that planning is an important part of quality improvement. D.All of the above.

Q: Poka-yoke is A.designing products for multiple uses. B.a workforce that is likely to make mistakes. C.a service designed for the customer. D.designing a process so that it can only be performed correctly.

Q: The six-step quality cycle approach includes all of the following EXCEPT A.set quality standards. B.define quality attributes on the basis of customer needs. C.find and correct causes of poor quality. D.reward employees for quality improvement.

Q: ________ is a combination of reliability and maintainability. A.Field service B.Availability C.Quality of conformance D.Mean time to repair

Q: Which of the following is NOT true about the cost of quality? A.Cost of quality is actually the cost of poor quality. B.Increasing prevention cost increases appraisal, internal, and external failure costs. C.Training cost is an example of prevention cost. D.Warranty is an example of external failure cost.

Q: The Baldrige Award criteria emphasize all of the following EXCEPT A.strategy. B.operations. C.customers. D.zero defects.

Q: Which of the following is NOT part of the quality trilogy that Juran advocates? A.Planning B.Operations C.Control D.Improvement

Q: Which of the following is NOT part of Deming's 14 points? A.Cease dependence on mass inspection. B.Create constancy of purpose. C.End the practice of awarding business on the basis of price tag alone. D.Exhort the workers to improve the quality system.

Q: A production center is available for 8 hours per day in a factory. It is composed of several rotary parts, and the worker operating it is required to lubricate these rotary parts once each day. It takes 2 hours to remove these parts from the equipment, lubricate them, and reassemble them. The production center is not available for production during these times. The availability of the production center A.is 50%. B.is 75%. C.is 25%. D.cannot be computed with the given information.

Q: The quality cycle A.begins with defining customer needs. B.is stated as tolerances or minimum and maximum acceptable limits. C.is used for services, not products. D.produces control points and inspection techniques.

Q: A product's conformance to specifications A.is in response to customers' needs. B.determines sales price to the customer. C.is defined as continuity of service to the customer. D.is independent of the quality of design.

Q: Quality of design A.is one of the four decision areas of engineering. B.is determined before production by a cross-functional product design team. C.means a product has high reliability, maintainability, and availability. D.is the prime responsibility of the operations function.

Q: The number of defects in a product measures A.reliability of the product. B.conformance quality of the product. C.quality of product design. D.none of the above.

Q: SERVQUAL measures which dimension of service quality? A.Reliability, tangibles, assurance, empathy, and conformance quality. B.Performance quality, tangibles, responsiveness, reliability, and assurance. C.Responsiveness, tangibles, empathy, assurance, and reliability. D.Reliability, tangibles, responsiveness, empathy, and conformance quality.

Q: Mean time between failure A.is used to measure a product's reliability. B.is used to measure a product's maintainability. C.is used to measure a product's maintainability and availability. D.is a measure of up time/(up time + down time).

Q: Define the English terms in the 5S technique. How is this applied in practice?

Q: How is the 5 Whys technique used in a lean system? Feedback: See below.

Q: Explain the concept of value stream mapping.

Q: What are the seven forms of waste that a lean system is intended to prevent?

Q: What are the five tenets of lean thinking? In your own words, provide a road map for implementing lean thinking in a manufacturing or service operations.

Q: The Japanese term for waste is "gemba."

Q: "Gemba" refers to data collection using the company's information system.

Q: Toyota production system is another term for a lean system.

Q: Takt time is the demand for the period divided by the available time for production.

Q: Preventive maintenance is another term for stabilizing the master schedule.

Q: One of the keys to reducing inventory is reducing lead time.

Q: With lean thinking, a firms operations layout should evolve to a cellular manufacturing layout.

Q: One-touch setups could require as long as nine minutes to perform.

Q: Kaizen events typically take from one to two months.

Q: A kanban system cannot be used in service industries.

Q: Lean is an example of a pull system while lean thinking is an example of a push system.

Q: Value stream maps are similar to flowcharts and are used for identifying the waste and non-value-added steps in the current process.

Q: According to the lean philosophy, a stable master production schedule is desirable to reduce the work-in-process inventories.

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