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Managing Quality: Integrating the Supply Chain, 5e (Foster)

Chapter 15 Implementing and Validating the Quality System


1) Which of the following building blocks are included in a system for quality improvement?
A) processes
B) information and finance
C) closeness to customers
D) people
E) all of the above
Answer: E
Topic: Building Blocks for the System of Quality Improvement
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality
2) The first building block of a quality improvement system is ________.
A) people
B) organizational learning and knowledge
C) culture
D) closeness to customers
E) information and finance
Answer: A
Topic: Building Blocks for the System of Quality Improvement
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality
3) The second building block of a quality improvement system is ________.
A) people
B) organizational learning and knowledge
C) culture
D) closeness to customers
E) information and finance
Answer: B
Topic: Building Blocks for the System of Quality Improvement
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality
4) The third building block of a quality improvement system is ________.
A) people
B) organizational learning and knowledge
C) closeness to customers
D) culture
E) information and finance
Answer: D
Topic: Building Blocks for the System of Quality Improvement
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality
15-1
Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall

5) Evidence indicates that some employees will forgo higher wages to achieve ________.
A) promotions
B) higher job security
C) better job performance
D) knowledge
E) awards
Answer: B
Topic: Building Blocks for the System of Quality Improvement
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality
6) ________ is the capital that fuels outstanding quality results.
A) Process
B) Higher job security
C) Better job performance
D) Knowledge
E) Outstanding customer service
Answer: D
Topic: Building Blocks for the System of Quality Improvement
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality
7) Which of the following building blocks of a quality improvement system refers to the norms
and beliefs that lead to decision-making patterns and actions in an organization?
A) processes
B) information and finance
C) culture
D) organizational learning and knowledge
E) people
Answer: C
Topic: Building Blocks for the System of Quality Improvement
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality
8) ________ make firms unique and attractive to customers.
A) The integrative approach
B) Information systems
C) Electronic data interchange
D) Training
E) Enterprise capabilities
Answer: E
Topic: Building Blocks for the System of Quality Improvement
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality

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Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall

9) ________ can be used to observe the practices of other firms and achieve even higher levels
of performance.
A) The integrative approach
B) Information systems
C) Benchmarking
D) Statistical process control
E) Generic self-assessment
Answer: C
Topic: Internal Validation: Documenting and Assessing the Quality System
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality
10) The goal of ________ is to observe current practices of the firm, to assess those practices,
and to identify gaps in deployment.
A) the integrative approach
B) information systems
C) benchmarking
D) organizational learning and knowledge
E) self-assessment
Answer: E
Topic: Internal Validation: Documenting and Assessing the Quality System
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality
11) A generic process for performing self-assessment is a ________ process.
A) three-stage
B) four-stage
C) two-stage
D) six-stage
E) five-stage
Answer: B
Topic: Internal Validation: Documenting and Assessing the Quality System
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality
12) The ________ stage of the generic process for performing self-assessment involves
generating lists of strengths and weakness for the organization.
A) investigating
B) benchmarking
C) categorizing
D) surveying
E) evaluating
Answer: D
Topic: Internal Validation: Documenting and Assessing the Quality System
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality
15-3
Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall

13) Stage 2 of the generic process for performing self-assessment is ________ the strengths and
weaknesses.
A) surveying
B) investigating
C) categorizing
D) evaluating
E) benchmarking
Answer: C
Topic: Internal Validation: Documenting and Assessing the Quality System
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality
14) Strengths can be categorized as ________ that help define the path for improvement the firm
should undertake.
A) primary or secondary strengths
B) strategic processes or strategic procedures
C) primary marketing or operational objectives
D) strategic resources or strategic capabilities
E) winning orders in the marketplace or achieving competitive advantage
Answer: D
Topic: Internal Validation: Documenting and Assessing the Quality System
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality
15) Stage 3 of the generic process for performing self-assessment is ________.
A) categorizing the strengths and weaknesses
B) generating lists of strengths and weakness for the organization
C) evaluating competitive advantage to assess how relevant resources and capabilities are in
terms of generic strategies
D) achieving new levels of performance by filling gaps in deployment
E) investigating the sources of competitive advantage
Answer: E
Topic: Internal Validation: Documenting and Assessing the Quality System
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality
16) Quality audits study ways to ________.
A) ensure that generally accepted accounting principles are being followed
B) ensure that companies and employees are acting honestly
C) win orders in the marketplace
D) improve customer service and ascertain whether current customer service processes are being
performed
E) select only the "right" evidence and ignore the "other"
Answer: D
Topic: Quality Audits
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality
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Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall

17) Which of the following is one of the steps in generic auditing?


A) familiarization
B) verification
C) evaluation
D) recommendation
E) all of the above
Answer: E
Topic: Quality Audits
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality
18) ________ guide the auditor.
A) Auditing standards
B) Auditing principles
C) Auditing procedures
D) Auditing outcomes
E) Auditing capabilities
Answer: B
Topic: Quality Audits
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality
19) Which of the following is not an example of an auditing standard?
A) The audit must be performed by a person having adequate technical training and proficiency
as an auditor.
B) In all matters relating to the assignment, independence in mental attitude is to be maintained
by the auditor so as to establish the "third-party viewpoint."
C) Professional care is to be exercised in the performance of the examination and in the
preparation of the report.
D) The auditor should be politically conservative.
E) None of the above
Answer: D
Topic: Quality Audits
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality
20) Which of the following is not a step in the basic quality audit?
A) preparation
B) audit team selection
C) client interaction
D) develop checklists
E) the opening meeting
Answer: C
Topic: Quality Audits
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality
15-5
Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall

21) Which of the following steps in the basic quality audit involves sharing the preliminary
results with management?
A) reporting and corrective action
B) implementing the audit
C) the opening meeting
D) the exit meeting
E) closure
Answer: D
Topic: Quality Audits
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality
22) Which of the following steps in the basic quality audit involves performing a postimplementation review to ensure that the corrective actions were taken and the desired results
obtained?
A) reporting and corrective action
B) implementing the audit
C) the opening meeting
D) the exit meeting
E) follow-up
Answer: E
Topic: Quality Audits
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality
23) In ________ audits, an overall assessment of the organization is performed, and this
information is inserted into the following year's strategic plans.
A) presidential
B) operational
C) consultant
D) certification
E) qualitative
Answer: B
Topic: Quality Audits
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality
24) ________ audits are also called quality maturity studies.
A) Presidential
B) Operational
C) Consultant
D) Certification
E) Award
Answer: C
Topic: Quality Audits
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality
15-6
Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall

25) The ________ team should be made up of quality managers, people involved in the data
analysis, a facilitator, and appropriate operating force participants.
A) strategic objective
B) operational
C) SLs lead
D) SLT senior leadership
E) reenergizing quality
Answer: E
Topic: Validating the Quality System
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality
26) The ________ is a living document that will change as products and the business realities
change.
A) signature strategy
B) structural measure
C) change management
D) reenergizing quality approach
E) certification process
Answer: A
Topic: Validating the Quality System
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality
27) Quality improvement requires the interactions on a contingency basis of many different
disciplines to create products, services, processes, and systems that effectively serve customers.
Answer: TRUE
Topic: Building Blocks for the System of Quality Improvement
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality
28) People represent the core of a firm's capabilities.
Answer: TRUE
Topic: Building Blocks for the System of Quality Improvement
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality
29) For a quality system to function effectively, employees must understand they are peripheral
to that system.
Answer: FALSE
Topic: Building Blocks for the System of Quality Improvement
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality

15-7
Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall

30) The second building block of a quality system is culture.


Answer: FALSE
Topic: Building Blocks for the System of Quality Improvement
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality
31) Culture refers to the norms and beliefs that lead to decision-making patterns and actions in an
organization.
Answer: TRUE
Topic: Building Blocks for the System of Quality Improvement
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality
32) Closeness to customers involves the understanding of the competitor's customers.
Answer: TRUE
Topic: Building Blocks for the System of Quality Improvement
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality
33) A company's profitability is not affected by customer retention.
Answer: FALSE
Topic: Building Blocks for the System of Quality Improvement
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality
34) Not only is an understanding of customers required, but also an understanding of the
competitor's customers.
Answer: TRUE
Topic: Building Blocks for the System of Quality Improvement
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality
35) Customer closeness engenders loyalty.
Answer: TRUE
Topic: Building Blocks for the System of Quality Improvement
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality
36) Customer closeness provides the core of the support system for satisfying the customer.
Answer: FALSE
Topic: Building Blocks for the System of Quality Improvement
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality

15-8
Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall

37) Electronic data interchange (EDI) can limit the chances of satisfying customer needs.
Answer: FALSE
Topic: Building Blocks for the System of Quality Improvement
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality
38) EDI systems allow customers and suppliers to tie their systems together to enhance planning,
purchasing, and coordination.
Answer: TRUE
Topic: Building Blocks for the System of Quality Improvement
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality
39) The actions required to make the information system effective are problem identification,
analysis, and corrective action.
Answer: TRUE
Topic: Building Blocks for the System of Quality Improvement
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality
40) Quality conformance is one of the three key spheres of quality.
Answer: FALSE
Topic: Building Blocks for the System of Quality Improvement
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality
41) Customer service is both a goal and an outcome of systems.
Answer: TRUE
Topic: Building Blocks for the System of Quality Improvement
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality
42) Because quality is not under the purview of any specific functional group and is the
responsibility of everyone, cross-functional approaches are required to achieve the desired
results.
Answer: TRUE
Topic: Building Blocks for the System of Quality Improvement
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality
43) Hoshin planning or policy deployment provides a framework for achieving alignment
through the catchball process.
Answer: TRUE
Topic: Building Blocks for the System of Quality Improvement
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality
15-9
Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall

44) When the firm has achieved benchmark or role model status, the ideas and initiatives for
improvement must come from within.
Answer: TRUE
Topic: Internal Validation: Documenting and Assessing the Quality System
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality
45) Categorizing is the means of generating lists of strengths and weakness for the organization.
Answer: FALSE
Topic: Internal Validation: Documenting and Assessing the Quality System
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality
46) ISO 9000:2008 uses repetitive audits to ensure compliance and to maintain registration.
Answer: TRUE
Topic: Quality Audits
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality
47) Quality audits are defined as internal assessment tools used to identify areas for
improvement.
Answer: TRUE
Topic: Quality Audits
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality
48) Conceptualization is one of the steps of quality auditing.
Answer: FALSE
Topic: Quality Audits
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality
49) Auditing outcomes is one of the three main ingredients to an audit.
Answer: FALSE
Topic: Quality Audits
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality
50) Auditing principles constitute a rule that is derived from reasoning and experience.
Answer: TRUE
Topic: Quality Audits
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality

15-10
Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall

51) An auditing procedure is a measurement of performance or a criterion establishing


professional authority and consent.
Answer: FALSE
Topic: Quality Audits
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality
52) The auditing procedure establishes the courses of action available to the auditor to judge the
adherence to the standards and the validity of the application of the principles.
Answer: TRUE
Topic: Quality Audits
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality
53) Auditing concepts and methods are as rigid as methods in the physical sciences.
Answer: FALSE
Topic: Quality Audits
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality
54) Quality audits are based on the practice of operational auditing.
Answer: TRUE
Topic: Quality Audits
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality
55) Certification audits are also called quality maturity studies.
Answer: FALSE
Topic: Quality Audits
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality
56) Award audits involve site visits to externally validate the claims made by applicants in their
applications.
Answer: TRUE
Topic: Quality Audits
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality
57) Qualitative audits compare current practice against structural measures.
Answer: TRUE
Topic: Quality Audits
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality

15-11
Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall

58) Conditional measures are the documents relating to processes.


Answer: TRUE
Topic: Quality Audits
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality
59) The facilitator is not included in the reenergizing quality team.
Answer: FALSE
Topic: Quality Audits
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality
60) The quality improvement efforts are used to evaluate the quality management manager.
Answer: FALSE
Topic: Validating the Quality System
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality
61) One of the major benefits of validating quality systems is that it will help close the gaps in
quality deployment.
Answer: TRUE
Topic: Validating the Quality System
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality

15-12
Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall

62) Discuss briefly the building blocks of a quality system.


Answer:
People: People represent the core of a firm's capabilities because they provide the intellect,
empathy, and ability that is required to provide outstanding customer service. Therefore, systems
must be in place to develop, train, care for, and motivate people to serve the customer properly.
Organizational Learning and Knowledge: The second building block of a quality system is
organizational learning and knowledge. Outstanding customer service results from providing
employees with outstanding knowledge and training. Organizational learning is required for
consistency in operations, approaches, and customer contact.
Culture: Culture refers to the norms and beliefs that lead to decision-making patterns and
actions in an organization. Some of the key aspects of culture include attitudes toward change;
presence or absence of fear; degree of openness, fairness, and trust; and employee behavior at all
levels.
Closeness to Customers: Closeness to customers describes the firm's understanding of the
customers, their needs, and their wants. Companies that are close to their customers retain those
customers as customer retention is closely related to profitability. Also, customer closeness
engenders loyalty.
Information and Finance: Information systems provide the core of the support system for
satisfying the customer. Finances are listed with information because financial resources are
needed to provide the infrastructure and services that customers want.
Topic: Building Blocks for the System of Quality Improvement
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality
63) Explain the integrative approach.
Answer: The integrative approach provides the glue binding together the systems that result in
high-quality products and services. Because quality is not under the purview of any specific
functional group and is the responsibility of everyone, cross-functional approaches are required
to achieve the desired results. The integrative systems view recognizes that all the building
blocks must be in place in all the functional areas and throughout all levels of the organization
for quality improvement to be both horizontally and vertically deployed in world-class
companies.
Topic: Building Blocks for the System of Quality Improvement
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality
64) What is the next step when a firm achieves benchmark or role model status?
Answer: When a firm has achieved benchmark or role model status, the ideas and initiatives for
improvement must come from within. In this case, self-assessment is a good tool to spur
improvement. The goal of self-assessment is to observe current practices, to assess those
practices, and to identify gaps in deployment. Once gaps have been identified, new levels of
performance can be achieved by filling gaps.
Topic: Internal Validation: Documenting and Assessing the Quality System
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality

15-13
Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall

65) Outline the generic process for performing self-assessment.


Answer: A generic process for performing self-assessment is a four-stage process of surveying,
categorizing, investigating, and evaluating.
Stage 1 - Surveying: Generate list of strengths and weaknesses from primary and support
activities of the firm's value chain.
Stage 2 - Categorizing: Reconceptualize list in terms of resources and capabilities and complete
deeper inspection with the application of key questions.
Stage 3 - Investigating: Determine where, along the firm's value chain, potential competitive
advantage lies. Look at each competitively relevant resource and capability relative to its
potential as a cost or uniqueness driver.
Stage 4 - Evaluating: Choose the appropriate generic strategy for the firmcost leadership or
differentiation.
Topic: Internal Validation: Documenting and Assessing the Quality System
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality
66) What are the enablers for quality improvement in a school?
Answer: Quality tools: same as in other organizations, but not all faculties have been taught to
use them.
Teams:
Governance structure, standing committees, ad hoc committees
Communication:
Committee meetings
Wikis
Other web 2.0 tools
Training and Education:
Small group methods
Six Sigma training
Information and analysis
Answer may vary depending on students' viewpoint.
Topic: Quality Audits
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality

15-14
Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall

67) What are the requirements for accurate quality audits?


Answer: In-depth knowledge of auditing standards, proper establishment of audit objectives,
carefully planned audit procedures, controlled execution of audit steps, and disciplined
adherence to proper auditing methods in arriving at conclusions are all requisite for accurate
audits.
Topic: Quality Audits
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality
68) Discuss operational audits.
Answer: Quality audits are based on the practice of operational auditing. In a broad sense, the
approach and the state of mind of the auditor characterize operational auditingnot the methods.
Operational audits represent the application of the talents, background, and techniques of the
auditors to the operating controls that exist in the business.
The general objective of the operational audit is to assist all members of management in the
effective discharge of their responsibilities by furnishing them with objective analyses,
appraisals, recommendations, and pertinent comments concerning the activities reviewed.
Operational audits may follow organizational or functional lines, but the majority are
organization-wide because such an audit presents a complete appraisal of the internal operations
of an organizational unit.
Topic: Quality Audits
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality
69) What are the benefits of presidential audits?
Answer:
1. Presidential audit depends on the president, so he or she is forced to study about quality
control. He or she can also observe the actual operations of and facts about factories and other
units, which deepens his or her understanding of the company.
2. The president can discover the true state of her or his company.
3. There will be an improvement in the human relationship between the president and
subordinates.
4. The presidential audit is an occasion for challenging employees and stimulating vigorous
activities in total quality control. It also ensures continuation of QC circle activities.
Topic: Quality Audits
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality

15-15
Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall

70) Outline the process for reenergizing quality efforts in organizations.


Answer:
Assemble the right team: The reenergizing quality team should be made up of quality
managers, people involved in the data analysis, a facilitator, and appropriate operating force
participants.
Go over the results: Present the evaluation of the current state of the improvement efforts to
the team. This evaluation involves identifying quality-related practices in the organization for
relevance and efficacy.
Identify those approaches that are working well: Using the data, gain consensus from the
team as to what quality improvement approaches are getting results.
Identify what is not working well: Using the findings, gain consensus among team members
as to what approaches should be eliminated.
Identify additional areas in quality deployment that are not being addressed: Conducting an
in-depth study of this type will naturally result in an understanding of areas that need to be
addressed that current quality approaches do not address.
Develop the signature strategy: The signature strategy contains the bundle of quality
improvement approaches that will help to achieve the desired outcomes.
Develop a plan for implementation with time frames and costs: Using a modern project
management approach, develop a project plan.
Implement the project plan.
Repeat this on an annual basis.
Topic: Validating the Quality System
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality

15-16
Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall