Which of the following statements is false regarding total quality management (TQM)

Managers at Arnold Palmer Hospital take quality so seriously that the hospital typically is a national leader in several quality areas—so that continuous improvement is no longer necessary. False (Global company profile, moderate)

An improvement in quality must necessarily increase costs. False (Quality and strategy, easy)

For most, if not all organizations, quality is a tactical rather than a strategic issue. False (Quality and strategy, moderate)

The definition of quality adopted by The American Society for Quality Control is a customer- oriented definition. True (Defining quality, easy)

Conforming to standards is the focus of the product-based definition of quality. False (Defining quality, moderate)

Internal failure costs are associated with scrap, rework, and downtime. True (Defining quality, easy)

Philip Crosby is credited with both of these quality catch-phrases: "quality is free" and "zero defects." True (Defining quality, easy)

Deming's writings on quality tend to focus on the customer and on fitness for use, unlike Juran's work that is oriented toward meeting specifications. False (defining quality, moderate)

The delivery of quality products and services to customers is important, for reasons that include profitability as well as social responsibility. True (Defining quality, moderate)

ISO 9000 has evolved from a set of quality assurance standards toward a quality management system. True (International quality standards, moderate)

Quality is mostly the business of the quality control staff, not ordinary employees. False (Total quality management, moderate)

TQM is important because quality influences all of the ten decisions made by operations managers. True (Total quality management, moderate)

The phrase Six Sigma has two meanings. One is statistical, referring to an extremely high process capability; the other is a comprehensive system for achieving and sustaining business success. True (Quality and strategy, moderate)

Continuous improvement is based on the philosophy that any aspect of an organization can be improved. True (Total quality management, moderate)

Kaizen is similar to TQM in that both are focused on continuous improvement. True (Total quality management, moderate)

The Japanese use the term "poka-yoke" to refer to continuous improvement. False (Total quality management, moderate)

Quality circles empower employees to improve productivity by finding solutions to work-related problems in their work area. True (Total quality management, moderate)

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. False (Total quality management, moderate)

Line employees need the knowledge of TQM tools. True (Total quality management, easy)

One of the ways that Just-In-Time (or JIT) influences quality is that by reducing inventory, bad quality is exposed. True (Total quality management, moderate)

The quality loss function indicates that costs related to poor quality are low as long as the product is within acceptable specification limits. False (Total quality management, moderate)

Pareto charts are a graphical way of identifying the few critical items from the many less important ones. True (Tools of TQM, moderate)

A cause-and-effect diagram helps identify the source of a problem. True (Tools of TQM, moderate)

Source inspection is inferior to inspection before costly operations. False (The role of inspection, moderate)

Of the several determinants of service quality, access is the one that relates to keeping customers informed in language they can understand. False (TQM in services, moderate)

The quality of services is more difficult to measure than the quality of goods because both the intangible differences between service products and consumers' intangible expectations are poorly defined. True (TQM in services, moderate)

Three broad categories of definitions of quality are a. product quality, service quality, and organizational quality b. user-based, manufacturing-based, and product-based c. internal, external, and prevention d. low-cost, response, and differentiation e. Pareto, Shewhart, and Deming b (Defining quality, easy)

According to the manufacturing-based definition of quality, a. quality is the degree of excellence at an acceptable price and the control of variability at an acceptable cost b. quality depends on how well the product fits patterns of consumer preferences c. even though quality cannot be defined, you know what it is d. quality is the degree to which a specific product conforms to standards e. quality lies in the eyes of the beholder d (Defining quality, moderate)

The role of quality in limiting a firm's product liability is illustrated by a. ensuring that contaminated products such as impure foods do not reach customers b. ensuring that products meet standards such as those of the Consumer Product Safety Act c. designing safe products to limit possible harm to consumers d. using processes that make products as safe or as durable as their design specifications call for e. All of the above are valid. e (Defining quality, easy)

Which of the following is not one of the major categories of costs associated with quality? a. prevention costs b. appraisal costs c. internal failures d. external failures e. none of the above; they are all major categories of costs associated with quality e (Defining quality, moderate)

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 e (Defining quality, moderate)

Inspection, scrap, and repair are examples of a. internal costs b. external costs c. costs of dissatisfaction d. prevention costs e. societal costs a (Defining quality, moderate)

"Employees cannot produce goods that on average exceed the quality of what the process is capable of producing" expresses a basic element in the writings of a. Vilfredo Pareto b. Adam Smith c. Joseph M. Juran d. W. Edwards Deming e. Philip B. Crosby d (Defining quality, moderate)

"Quality Is Free," meaning that the costs of poor quality have been understated, is the work of a. Frank Gilbreth b. Frank and Lillian Gilbreth c. Philip B. Crosby d. Crosby, Stills, and Nash e. none of the above c (Defining quality, easy)

The philosophy of zero defects is a. the result of Deming's research b. unrealistic c. prohibitively costly d. an ultimate goal; in practice, 1 to 2% defects is acceptable e. consistent with the commitment to continuous improvement e (Total quality management, moderate)

Based on his 14 Points, Deming is a strong proponent of a. inspection at the end of the production process b. an increase in numerical quotas to boost productivity c. looking for the cheapest supplier d. training and knowledge e. all of the above d (Total quality management, moderate)

Stakeholders who are affected by the production and marketing of poor quality products include a. stockholders, employees, and customers b. suppliers and creditors, but not distributors c. only stockholders, creditors, and owners d. suppliers and distributors, but not customers e. only stockholders and organizational executives and managers a (Defining quality, moderate)

Regarding the quality of design, production, and distribution of products, an ethical requirement for management is to a. determine whether any of the organization's stakeholders are violated by poor quality products b. gain ISO 14000 certification for the organization c. obtain a product safety certificate from the Consumer Product Safety Commission d. have the organization's legal staff write disclaimers in the product instruction booklets e. compare the cost of product liability to the external failure cost a (Defining quality, moderate)

"Kaizen" is a Japanese term meaning a. a foolproof mechanism b. just-in-time (JIT) c. a fishbone diagram d. setting standards e. continuous improvement e (Total quality management, easy)

Which of the following statements regarding "Six Sigma" is true? a. The term has two distinct meanings—one is statistical; the other is a comprehensive system. b. Six Sigma means that about 99 percent of a firm's output is free of defects. c. The Six Sigma program was developed by Toyota in the 1970's. d. The Six Sigma program is for manufacturing firms, and is not applicable to services. e. Six Sigma certification is granted by the International Standards Organization (ISO). a (Total quality management, moderate)

Quality circles members are a. paid according to their contribution to quality b. external consultants designed to provide training in the use of quality tools c. always machine operators d. all trained to be facilitators e. none of the above; all of the statements are false e (Total quality management, moderate)

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. e (Total quality management, moderate)

Building high-morale organizations and building communication networks that include employees are both elements of a. ISO 9000 certification b. Six Sigma certification c. employee empowerment d. Taguchi methods e. the tools of TQM c (Total quality management, moderate)

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 a. continuous improvement b. employee empowerment c. benchmarking d. copycatting e. patent infringement c (Total quality management, moderate)

An organization that has successfully used both internal and external benchmarking is a. Marks and Spenser b. DaimlerChrysler c. L. L. Bean d. Xerox e. None of the above has used both internal and external benchmarking. d (Total quality management, moderate)

Costs of dissatisfaction, repair costs, and warranty costs are elements of cost in the a. Taguchi Loss Function b. Pareto chart c. ISO 9000 Quality Cost Calculator d. process chart e. none of the above a (Total quality management, moderate)

A quality loss function utilizes 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 d (Tools of TQM, moderate)

Pareto charts are used to a. identify inspection points in a process b. outline production schedules c. organize errors, problems, or defects d. show material flow e. all of the above c (Tools of TQM, moderate)

The "four Ms" of cause-and-effect diagrams are a. material, machinery/equipment, manpower, and methods b. material, methods, men, and mental attitude c. named after four quality experts d. material, management, manpower, and motivation e. none of the above a (Tools of TQM, moderate)

Among the tools of TQM, the tool ordinarily used to aid in understanding the sequence of events through which a product travels is a a. Pareto chart b. process chart c. check sheet d. Taguchi map e. poka-yoke b (Tools of TQM, moderate)

If a sample of parts is measured and the mean of the measurements is outside the control limits, the process is a. in control, but not capable of producing within the established control limits b. out of control and the process should be investigated for assignable variation c. within the established control limits with only natural causes of variation d. monitored closely to see if the next sample mean will also fall outside the control limits e. none of the above b (Tools of TQM, moderate)

A quality circle holds a brainstorming session and attempts to identify the factors responsible for flaws in a product. Which tool do you suggest they use to organize their findings? a. Ishikawa diagram b. Pareto chart c. process chart d. control charts e. activity chart a (Tools of TQM, moderate)

When a sample measurement falls inside the control limits, it means that a. each unit manufactured is good enough to sell b. the process limits cannot be determined statistically c. the process output exceeds the requirements d. if there is no other pattern in the samples, the process is in control e. no investigation is necessary until another sample value falls outside the control limits d (Tools of TQM, moderate,)

Which of the following is true regarding control charts? a. Values above the upper and lower control limits indicate points out of adjustment. b. Control charts are built so that new data can be quickly compared to past performance data. c. Control charts graphically present data. d. Control charts plot data over time. e. All of the above are true. e (Tools of TQM, moderate)

The goal of inspection is to a. detect a bad process immediately b. add value to a product or service c. correct deficiencies in products d. correct system deficiencies e. all of the above a (The role of inspection, moderate)

Which of the following is not a typical inspection point? a. upon receipt of goods from your supplier b. during the production process c. before the product is shipped to the customer d. at the supplier's plant while the supplier is producing e. after a costly process e (The role of inspection, moderate)

A good description of "source inspection" is inspecting a. materials upon delivery by the supplier b. the goods at the production facility before they reach the customer c. the goods as soon as a problem occurs d. goods at the supplier's plant e. one's own work, as well as the work done at the previous work station e (The role of inspection, moderate)

"Poka-yoke" is the Japanese term for a. card b. foolproof c. continuous improvement d. fishbone diagram e. just-in-time production b (The role of inspections, moderate)

A worker operates a shear press. She notices that the metal sheets she is cutting have curled edges. Who should get the first "shot" at solving the problem? a. the foreman b. a member of the quality control department c. the operator herself d. an engineer e. the employee's supervisor c (The role of inspection, moderate)

A recent consumer survey conducted for a car dealership indicates that, when buying a car, customers are primarily concerned with the salesperson's ability to explain the car's features, the salesperson's friendliness, and the dealer's honesty. The dealership should be especially concerned with which dimensions of service quality? a. communication, courtesy, and credibility b. competence, courtesy, and security c. competence, responsiveness, and reliability d. communication, responsiveness, and reliability e. understanding/knowing customer, responsiveness, and reliability a (TQM in services, moderate)

Marketing issues such as advertising, image, and promotion are important to quality because a. they define for consumers the tangible elements of a service b. the intangible attributes of a product (including any accompanying service) may not be defined by the consumer c. they educate consumers on how to use the product d. they make the product seem more valuable than it really is e. they raise expenses and therefore decrease profitability b (TQM in services, moderate)

_________ selects a demonstrated standard of performance that represents the very best performance for a process or activity. Benchmarking (Total quality management, moderate)

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) _______________. quality circle (Total quality management, easy)

___________ diagrams use a schematic technique to discover possible locations of quality problems. Cause-and-effect, or fishbone or Ishikawa (Tools of TQM, moderate)

________ are graphical presentations of data over time that show upper and lower control limits for processes we want to control. Control charts (Tools of TQM, moderate)

________ is doing the job properly with the operator ensuring that this is so. Source inspection (The role of inspection, moderate)

Name the four costs of quality. Which one is hardest to evaluate? Explain. The four costs are internal, external, prevention, and assessment. The hardest to estimate are external costs, or costs that occur after delivery of defective part or services. These costs are very hard to quantify. (Defining quality, moderate)

State the ASCQ definition of quality. Of the three "flavors" or categories of quality definitions, which type is it? Explain. Quality is 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. (Defining quality, moderate)

Quality has at least three categories of definitions; list them. Provide a brief explanation of each. 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). (Defining quality, moderate)

Explain how ethical decisions about products involve groups other than employees and customers. The product decision should be made by viewing its impact on the entire economy. That logic applies to all groups who would be impacted by low quality products. These are the stakeholders, and they include employees and customers, but also owners (stockholders), suppliers, distributors, and creditors. (International quality standards, moderate)

In a sentence or two, summarize the contribution of Philip Crosby to quality management. 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. (Defining quality, moderate)

List the five core elements of ISO 14000. The five core elements of ISO 14000 are environmental management, auditing, performance evaluation, labeling, and life cycle assessment. (International quality standards, moderate)

Describe how ISO 9000 has evolved in the past several years. It has become less a set of standards and more a quality management system. These changes came about primarily through the December 2000 revisions. They also emphasized top management leadership, and customer requirements and satisfaction, while documented procedures received less emphasis. (International quality standards, moderate)

What steps can be taken to develop benchmarks? The steps are: determine what to benchmark, form a benchmarking team, identify benchmarking partners, collect and analyze benchmarking information, and take action to match or exceed the benchmark. (Total quality management, moderate)

Explain how just-in-time processes relate to the quality of an organization's outputs. JIT relates to quality by cutting costs of quality, by lowering waste and scrap; by improving quality by shortening the time between error detection and error correction; and better quality means less inventory and better JIT system. (Total quality management, moderate)

What is the difference between conforming quality and target-oriented quality? With conforming 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. (Total quality management, moderate)

List the major concepts of TQM. The major concepts of total quality management are continuous improvement, employee empowerment, benchmarking, just-in-time (JIT), and knowledge of TQM tools. (Total quality management, easy)

What is the quality loss function (QLF)? The quality loss function 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. (Total quality management, moderate)

Explain how a Pareto chart can identify the most important causes of errors in a process. There will generally be some causes with much higher frequencies than others. The frequency plot will clearly show which cause has the highest frequency. (Tools of TQM, moderate)

How is source inspection related to employee empowerment? 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 can be very effective at improving the system. (The role of inspection, moderate)

Perform a Pareto analysis on the following information: