Chapter 4 TRUE/FALSE

Managing Quality

1. Joseph Jurans definition of quality as fitness for use is an example of the value perspective of quality. Answer: True Reference: Quality Defined Difficulty: Moderate Keywords: value, quality, Juran AACSB: Reflective Thinking 2. Appraisal costs can occur when a company has NOT produced any defective items. Answer: True Reference: Total Cost of Quality Difficulty: Easy Keywords: appraisal, cost, quality 3. Money spent training an employee how to do the job mistake free is an example of an appraisal cost. Answer: False Reference: Total Cost of Quality Difficulty: Moderate Keywords: prevention, cost, quality AACSB: Reflective Thinking 4. Total Quality Management is the management of an entire organization so that it excels in all quality dimensions that are important to customers. Answer: True Reference: Total Quality Management Difficulty: Easy Keywords: total, quality, management, TQM 5. Process owners are empowered employees that have the authority and responsibility for improving the organizations business processes. Answer: True Reference: Total Quality Management Difficulty: Moderate Keywords: process owner, empowered, employee 6. Reductions in process variance result in higher process capability. Answer: True Reference: Statistical Quality Control Difficulty: Moderate Keywords: process, variance, capability, Cp AACSB: Analytic Skills

7. Six sigma quality means that the difference between the upper and lower tolerance levels is six standard deviations wide. Answer: False Reference: Statistical Quality Control Difficulty: Moderate Keywords: process, standard deviation, capability, six sigma 8. If a contact lens has a scratch on it, the manufacturer classifies it as defective. This is an example of a continuous variable. Answer: False Reference: Statistical Quality Control Difficulty: Easy Keywords: defective, continuous, variable 9. The upper and lower limits of a control chart should be wider than the upper and lower tolerance limits. Answer: False Reference: Statistical Quality Control Difficulty: Moderate Keywords: tolerance, control, limits AACSB: Reflective Thinking, Analytic Skills 10. An R chart is used to track how much the individual observations within a sample vary. Answer: True Reference: Statistical Quality Control Difficulty: Easy Keywords: R chart, sample, vary 11. Producers risk rises as consumers risk falls. Answer: True Reference: Statistical Quality Control Difficulty: Moderate Keywords: producers risk, consumers risk AACSB: Reflective Thinking 12. With everything else held constant, a sampling plan with c=1 will have a lower producers risk than a sampling plan with c=2. Answer: False Reference: Statistical Quality Control Difficulty: Difficult Keywords: producers risk, consumers risk AACSB: Analytic Skills

13. Taguchis quality loss function runs counter to the notion that product falling within tolerance limits is acceptable. Answer: True Reference: Statistical Quality Control Difficulty: Difficult Keywords: Taguchi, quality loss, tolerance 14. ISO 9001:2000 can be used by both manufacturing and service companies. Answer: True Reference: Managing Quality Across the Supply Chain Difficulty: Easy Keywords: ISO 9000, manufacturing, service MULTIPLE CHOICE 15. A quality perspective that focuses on whether or not a product was made or a service was performed as intended is the: a. performance perspective. b. value perspective. c. conformance perspective. d. intention perspective. Answer: c Reference: Quality Defined Difficulty: Easy Keywords: performance, perspective, quality 16. The __________ dimension of quality asks how long a product can go between failures or the need for maintenance. a. warranty b. lifetime c. serviceability d. reliability Answer: d Reference: Quality Defined Difficulty: Easy Keywords: reliability, dimension, quality 17. On the first day of class at a new university you made judgments about the quality of the class before the professor had entered the room. You noted the comfort of the accommodations, the fine works of art in the halls and on the classroom wall and the soothing music piped in over the sound system. This dimension of quality is: a. aesthetic. b. performance. c. features. d. perceived quality. Answer: a Reference: Quality Defined Difficulty: Moderate Keywords: aesthetic, dimension, quality AACSB: Reflective Thinking

18. Costs incurred by defects that occur prior to delivery to the customer are called: a. external failure costs. b. internal failure costs. c. appraisal costs. d. prevention costs. Answer: b Reference: Quality Defined Difficulty: Moderate Keywords: external, failure, cost 19. Which of the following is NOT a core idea of total quality management? a. cost reduction b. leadership improvement c. employee empowerment d. continuous improvement Answer: a Reference: Total Quality Management Difficulty: Easy Keywords: TQM, total, quality, core 20. A technique used to translate customer requirements into technical requirements is: a. quality assurance. b. statistical quality control. c. quality function deployment. d. continuous improvement. Answer: c Reference: Total Quality Management Difficulty: Easy Keywords: TQM, total, quality, core 21. A barbecue sauce producer sells their product in a 20 ounce bottle. Their historical process mean has been 20 ounces with a standard deviation of 0.25 ounces. If their tolerance limits are set at 20 ounces plus or minus 1 ounce, what is the process capability ratio of the bottle filling process? a. 1.00 b. 1.33 c. 1.75 d. 2.00 Answer: b Reference: Statistical Quality Control Difficulty: Moderate Keywords: process, capability, tolerance, ratio AACSB: Analytic Skills

22. A barbecue sauce producer sells their product in a 20 ounce bottle. Their current process mean is 19.80 ounces with a standard deviation of 0.3 ounces. If their tolerance limits are set at 20 ounces plus or minus 1 ounce, what is the process capability index of the bottle filling process? a. 0.89 b. 1.00 c. 1.11 d. 1.33 Answer: a Reference: Statistical Quality Control Difficulty: Moderate Keywords: process, capability, tolerance, index AACSB: Analytic Skills 23. An automobile windshield manufacturer wants to verify that their process is producing windshields of an appropriate thickness. The best tool to determine this information is a(n): a. process capability ratio. b. process capability index. c. x-bar chart. d. operating characteristics curve. Answer: c Reference: Statistical Quality Control Difficulty: Moderate Keywords: control, statistical, process, x-bar, chart 24. A pizza delivery service wants to track their delivery times. They take eight samples of four deliveries and record the following data. What are the upper and lower control limits of their R-chart? Sample # 1 2 3 4 5 6 7 8 Item #1 21.1 20.2 24.1 22.6 21.2 20.9 22.4 20.9 Item #2 21.7 20.6 21.7 21.7 24.1 23.5 24.6 24.7 Item #3 23.0 24.5 23.2 23.0 20.6 22.8 23.4 22.8 Item #4 20.3 23.5 24.4 25.0 20.7 23.2 23.3 24.5 a. 24.9, 20.3 b. 7.2, 0.0 c. 3.1, 0.0 d. 22.6, 0.0 Answer: b Reference: Statistical Quality Control Difficulty: Difficult Keywords: control, statistical, process, R, chart AACSB: Analytic Skills

25. A pizza delivery service wants to track their delivery times. They take eight samples of four deliveries and record the following data. What are the upper and lower control limits of their X-bar chart? Sample # 1 2 3 4 5 6 7 8 Item #1 21.1 20.2 24.1 22.6 21.2 20.9 22.4 20.9 Item #2 21.7 20.6 21.7 21.7 24.1 23.5 24.6 24.7 Item #3 23.0 24.5 23.2 23.0 20.6 22.8 23.4 22.8 Item #4 20.3 23.5 24.4 25.0 20.7 23.2 23.3 24.5 Sum 86.1 88.8 93.4 92.3 86.6 90.4 93.7 92.9 a. 24.9, 20.3 b. 23.8, 21.4 c. 22.6, 19.5 d. 21.1, 17.6 Answer: a Reference: Statistical Quality Control Difficulty: Difficult Keywords: control, statistical, process, x-bar, chart AACSB: Analytic Skills 26. A cell phone manufacturer inspects the video display on each color phone to verify that the screen can display all colors with the brilliance their customers have come to expect. Each phone is turned on, run through a self-test procedure, and classified as either acceptable or unacceptable based on test performance. Based on historical data, the manufacturer produces 0.1 percent defective displays. If they inspect 5000 phones each day for the next 10 days, what are the upper and lower control limits for their control chart if their sample mean mirrors their historical process average? a. 0.0002, 0.0001 b. 0.0142, 0.0058 c. 0.1127, 0.0873 d. 0.0023, 0.0000 Answer: c Reference: Statistical Quality Control Difficulty: Difficult Keywords: control, statistical, process, p, chart AACSB: Analytic Skills 27. The probability of rejecting a lot with quality better than the acceptable quality level is: a. the lot tolerance percent defective. b. the lot tolerance percent acceptable. c. the consumers risk. d. the producers risk. Answer: d Reference: Statistical Quality Control Difficulty: Difficult Keywords: producers risk, OC curve, alpha, operating, characteristic

28. Taguchi defines quality in terms of: a. parts per million. b. losses. c. lot tolerance percent defective. d. acceptable quality levels. Answer: b Reference: Statistical Quality Control Difficulty: Moderate Keywords: Taguchi, quality, loss 29. One international standard for managing quality across the supply chain is: a. ISO 9000. b. ISO 14000. c. AQL. d. LTPD. Answer: a Reference: Managing Quality Across the Supply Chain Difficulty: Moderate Keywords: ISO 9000, quality, supply chain FILL IN THE BLANK 30. A person or company taking the stance that quality must be judged, in part, by how well the characteristics of a particular product or service align with the needs of a specific user is taking the __________ perspective. Answer: value Reference: Quality Defined Difficulty: Moderate Keywords: value, perspective, quality 31. A customer that concentrates on the ease of repair or support for the product or service is concerned primarily with the __________ dimension of quality. Answer: serviceability Reference: Quality Defined Difficulty: Easy Keywords: serviceability, quality, dimension 32. A(n) __________ cost is incurred by a company to assess its quality levels Answer: appraisal cost Reference: Total Cost of Quality Difficulty: Moderate Keywords: appraisal, cost 33. __________ are teams or individuals who have the authority and responsibility for improving the organizations business processes and are rewarded accordingly. Answer: Process owners Reference: Total Quality Management Difficulty: Moderate Keywords: process, owner

34. The ability of a non-centered process to meet certain quality standards is measure by its __________. Answer: process capability index Reference: Statistical Quality Control Difficulty: Moderate Keywords: process, capability, index, Cpk, process capability 35. __________ measures of interest refer to the presence or absence of a particular characteristic. Answer: Attributes Reference: Statistical Quality Control Difficulty: Moderate Keywords: attributes, measure, control, chart 36. The probability of accepting a lot with worse quality than the lot tolerance percent defective level is __________. Answer: beta, consumers risk Reference: Statistical Quality Control Difficulty: Moderate Keywords: acceptance sampling, beta, consumer, risk 37. __________ is a family of standards, developed by the International Organization for Standardization, representing an international consensus on good quality management practices. Answer: ISO 9000 Reference: Managing Quality Across the Supply Chain Difficulty: Easy Keywords: ISO 9000, international, standard ESSAY 38. Describe the four quality related costs and tell how they are related. Answer: The four quality related costs are internal failure costs, external failure costs, appraisal costs, and prevention costs. Internal failure costs are caused by defects that occur prior to delivery to the customer, including money spent on repairing or reworking defective products, as well as time wasted on these activities. External failure costs are incurred by defects that are not detected until a product or service reaches the customer. Appraisal costs occur when a company assesses its quality levels. Prevention costs are those incurred by an organization to actually prevent defects from occurring to begin with. Classically, we expect that as prevention and appraisal efforts (and costs) rise, that internal and external failure costs should drop. Another view holds that as a businesss processes improved to the point where products are defect-free, their costs for prevention and appraisal approach zero. Reference: Total Cost of Quality Difficulty: Moderate Keywords: quality, cost, prevention, appraisal, external, internal, failure AACSB: Reflective Thinking

39. What are the seven core ideas of total quality management? Answer: The seven core principles of total quality management are customer focus, leadership involvement, continuous improvement, employee empowerment, quality assurance, supplier partnerships, and strategic quality plan. Reference: Total Quality Management Difficulty: Easy Keywords: TQM, total, quality, management 40. Define employee empowerment and process ownership. How are these two concepts related? Answer: Employee empowerment means giving employees the responsibility, authority, training, and tools necessary to manage quality. A process owner is a team or individual who has the authority and responsibility for improving the organizations business processes and who is rewarded accordingly. Process ownership is one way many organizations empower employees and completes the circle of employee empowerment by including process performance in the reward system.. Reference: Total Quality Management Difficulty: Easy Keywords: employee, empowerment, process, ownership 41. An airline wants to monitor the performance of their baggage handling crew on the daily flight from Oklahoma City to Dallas that is always filled to its 140 passenger capacity. They track the number of passengers that lose bags each flight for a two week period. The data are displayed in the following table. Determine control limits for the appropriate chart and indicate any points that are out of control. Day # # Bags Lost 1 3 2 4 3 3 4 2 5 5 6 7 7 6 8 8 9 1 10 7 11 6 12 2 13 1 14 7

Answer: This is attribute data, so a p-chart is called for. The upper and lower control limits are 0.076 and 0 and all samples fall comfortably within this range.

Day # 1 2 3 4 5 6 7 8 9 10 11 12 13 14

# Bags Lost 3 4 3 2 5 7 6 8 1 7 6 2 1 7

P (# Lost/140) 0.0214 0.0286 0.0214 0.0143 0.0357 0.0500 0.0429 0.0571 0.0071 0.0500 0.0429 0.0143 0.0071 0.0500

P-Chart Baggage Handling

0.08 0.07 0.06 0.05 0.04 0.03 0.02 0.01 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14

P-Bar UCL LCL p

Reference: Statistical Quality Control Difficulty: Difficult Keywords: process control, SPC, p, p-chart AACSB: Analytic Skills 42. A hot tub manufacturer wants the thermostat to control water temperature to within one degree when set at 130 degrees Fahrenheit. They randomly select 10 hot tubs, set the thermostats to 130, and record the following data with an infrared thermometer that has recently been calibrated. Temp 129.9 129.7 130.2 129.7 129.8 130 129.6 131 130.3 What is their process capability? Answer:

129.8

The process is centered so the process capability ratio is calculated as

Their process capability is poor.

Reference: Statistical Quality Control Difficulty: Difficult Keywords: process, capability, standard deviation AACSB: Analytic Skills 43. Describe the ISO 9000 family of standards, including the objectives and process of becoming certified. Answer: ISO 9000 is a family of standards supported by the International Organization for Standardization, representing an international consensus on good quality management practices. ISO 9000 addresses business processes, rather than specific outcomes. ISO 9001:2000 seeks to help organizations deliver products or services that meet the customers quality requirements and applicable regulatory requirements, while aiming to enhance customer satisfaction and achieve continual improvement of the performance in pursuit of these objectives. Companies seeking certification (or registration) will have independent auditors certify that their businesses are ISO 9000 compliant. ISO 9004:2000 is used to extend the benefits obtained from ISO 9001:2000 to all parties that are interested in or affected by a businesss operations. Reference: Managing Quality Across the Supply Chain Difficulty: Moderate Keywords: ISO 9000, ISO 9001, certification