Total Quality Management

Total Quality Management



Total Quality Management

Chapter 5: Total Quality Management

Answers to Discussion Questions in Textbook

  • Define quality for the following products: a university, an exercise facility, spaghetti sauce, and toothpaste.  Compare your definitions with those of others in your class.


The quality of a university can be defined as:

  • quality of professors – have Ph.D., helpful, knowledgeable, able to clearly explain material, fair
  • ability to place students in a good position at a high salary in a timely manner
  • facilities are up-to-date in terms of technology (i.e. wireless classrooms)
  • value for the price of the education
  • ability to prepare students for success in the business world
  • variety of course offerings
  • efficiency and accuracy of processing paperwork, such as registration for classes
  • appearance of the campus
  • perceived prestige of the university

The quality of an exercise facility can be defined as:

  • variety of gym equipment
  • variety and availability of fitness classes
  • value for the price of membership
  • ability to help members get into shape
  • accurate billing
  • atmosphere meets member’s needs
  • waiting times for machines are two minutes or less

The quality of spaghetti sauce can be defined as:

  • good taste
  • the jar is filled to 28 ounces plus or minus one ounce
  • value for price paid
  • perceived quality of the product
  • ability to quickly answer questions at the address listed on the jar of sauce
  • the sauce has chunks of tomatoes
  • ease of opening jar
  • ease of preparing the sauce to eat
  • able to keep leftover sauce in container in refrigerator easily to last longer
  • length of time the sauce can still be eaten

The quality of toothpaste can be defined as:

  • ability to clean teeth
  • good taste
  • perceived quality of the product
  • ability to keep breath fresh
  • ability to prevent plaque
  • ability to whiten teeth
  • ability to prevent cavities
  • tube of toothpaste is filled
  • ability to fight gingivitis
  • ability to fight tartar
  • able to quickly and accurately answer questions in a friendly manner at the toll-free number listed on toothpaste tube
  • tube is filled with 4.2 ounces plus or minus 0.5 ounce.
  • toothpaste is certified by the American Dental Association (ADA)
  • Describe the TQM philosophy and identify its major characteristics.


TQM focuses on identifying the causes of quality problems and correcting these problems.  TQM emphasizes the need to include every employee in the organization in the quality improvement efforts.  TQM emphasizes the need to define quality based on the customer’s needs.  Its major characteristics are customer focus, continuous improvement, quality at the source, employee empowerment, understanding quality tools, a team approach, benchmarking and managing supplier quality.

  • Explain how TQM is different from the traditional notions of quality.  Also, explain the differences between traditional organizations and those that have implemented TQM.


Traditional notions of quality focused on inspection of products.  Instead of relying on inspection as the primary tool for quality, TQM focuses on identifying the causes of quality problems and correcting these problems.  TQM takes a broader view of the organization than traditional views of quality.  Organizations that implemented TQM successfully were able to produce a higher quality product at a lower price, thereby increasing market share. Traditional organizations have either failed or will fail in the future if quality is poor.

  • Find three local companies that you believe exhibit high quality.  Next find three national or international companies that are recognized for their quality achievements.


The selection of the local companies will depend on the location of the university utilizing this textbook.  The Ritz-Carlton Hotel Company, a winner of the Malcolm Baldrige National Quality Award, is known for outstanding customer service.  Its employees are trained well and are empowered to deal with quality problems on the spot.  Florida Power & Light (FPL) was the first American company to win Japan’s Deming Prize, which is a prestigious quality award.  FPL has created and used a process for identifying and dealing with quality problems that has been benchmarked by a number of companies.  For example, FPL applied this process to the problem of service interruptions to determine the major causes.  They made changes based on the analysis, such as moving power poles away from dangerous curves in the road to deal with one important cause (Florida Power Light Quality Improvement (Q1) Story Exercise (A), Harvard Business School Case 9-689-041).  Disney is well-respected for its customer focus.  Disney has theme parks in the U.S., Japan and Europe.  Disney is known for its excellent training program and attention to details.   

  • Describe the four dimensions of quality.  Which do you think is most important?


The four dimensions of quality are the quality of product or service design, quality of conformance to design, ease of use and post-sales service.  The quality of product or service design is determined by the features that are included in the final design of the product or service.  The quality of conformance to design is the result of how well the product or service meets its specifications.  Ease of use is determined by the ease of using the product or service, its reliability and its maintainability.  Post-sales service is the level of service provided after the product or service has been purchased. 

The four dimensions of quality are all important in determining quality.  However, quality of design is most important since it determines the ability to meet customer needs, which is the objective.  If the quality of design does not meet customer needs, then it will not matter if the product or service meets it design specifications, is easy to use or is supported by good post-sale service.   

  • Describe each of the four costs of quality: prevention, appraisal, internal failure, and external failure.  Next, describe how each type of cost would change (increase, decrease or remain the same) if we designed a higher quality product that was easier to manufacture.

Prevention costs are the costs associated with preventing poor quality, such as training, designing a quality product that is easy to manufacture and planning costs.  Appraisal costs are the costs of determining the level of quality and finding defects.  These costs include inspections, product testing and quality audits.  Internal failure costs are the costs associated with finding and dealing with quality problems discovered before the product or service reaches the customer.  Some examples of internal failure costs are rework, scrap and machine downtime due to quality problems.  External failure costs are the costs of poor quality discovered by the customer.  Some examples of external failure costs are product returns, lawsuits and repairs. 

If we designed a higher quality product that was easier to manufacture, then both internal and external failure costs would decrease since we would produce less defective product.  Appraisal costs would probably decrease since we may be able to reduce inspections and quality audits.  Prevention costs would increase since we expended effort to design a better quality product.

  • Think again about the four costs of quality.  Describe how each would change if we hired more inspectors without changing other aspects of quality.


If we hired more inspectors without changing other aspects of quality, then we would still produce the same number of defects.  However, we would find more, but not necessarily all, of these defects before they reach the customer.  Therefore, internal failure costs will increase, while external failure costs will decrease.  Appraisal costs would increase since we are now paying for more inspectors.  Prevention costs would remain the same since we did not change other aspects of quality.

  • Explain the meaning of the Plan-do-study-act cycle.  Why is it described as a cycle?


The Plan-do-study-act cycle is a procedure for continuous improvement.  First, a plan is developed after we have documented procedures, collected data and identified problems.  Next, the plan is implemented.  We then study the results of our implementation.  Finally, we act based on the results.  It is described as a cycle since it is an ongoing process or series of steps that is repeated.

  • Describe the use of quality function deployment (QFD).  Can you find examples in which the voice of the customer was not translated properly into technical requirements?


QFD is a tool for matching customer requirements to technical requirements.  This tool incorporates the customer requirements, the relative importance of the customer requirements, the technical requirements (how we can meet customer requirements), the strength and type of relationships between the customer and technical requirements, the relationships or trade-offs between the different technical requirements and the ratings of the ability of competitors and our company to meet customer requirements into one diagram in order to evaluate all this information in an integrated manner. 

In the airline industry, low prices and direct, non-stop flights are two important customer requirements.  Most airlines have focused on developing a hub-and-spoke system in order to improve efficiencies.  A hub-and-spoke system is one in which many flights stop at a hub city, such as Atlanta, before continuing on to the final destinations, or the spokes.  This limits the ability of the customers to find a direct, non-stop flight to their destination, thus increasing travel time. 

  • Describe the seven tools of quality control.  Are some more important than others?  Would you use these tools separately or together?  Give some examples of tools that could be used together.


The seven tools of quality control are the cause-an-effect diagram, flowchart, checklist, control chart, scatter diagram, Pareto chart and histogram.  The cause-and-effect diagram, or fishbone diagram, shows all possible causes of one quality problem or defect type (effect), where the causes are separated into categories (or bones) on the diagram.  It is used as a brainstorming tool to determine which causes to investigate.  The flowchart documents the flow of the materials or customer through the steps of the process.  The checklist lists the type of defects, along with a tally of the frequency of each type.  Control charts show plots of samples of a product or service characteristic taken from the process over time.  The control chart helps us determine whether the process is in control, which means that only random variation exists.  Scatter diagrams are plots on an x-y axis used to determine the relationship between two variables.  Pareto charts show the frequency and cumulative percentages of defect types arranged from most frequent to least frequent defect types.  This chart demonstrates which defect types cause the majority of the quality problems or complaints.  A histogram shows the frequency of each quality problem.  

The Pareto chart and cause-and-effect diagram can be effectively used in combination.  First, the Pareto chart is used to identify the problem(s) that cause the highest number of actual defects or complaints.  Next, a common problem becomes the effect on the cause-and-effect diagram.  This diagram then helps us identify causes to investigate in order to solve the problem.       

  • What is the Malcolm Baldrige National Quality Award?  Why is this award important, and what companies have received it in the past?


The Malcolm Baldrige National Quality Award (MBNQA) is an award that was created by U.S. Congress in 1987 to promote quality and improve the trade deficit.  The award is important because it provides an effective framework for improving quality.  Many companies have used the MBNQA framework to improve quality, without an intention of applying for the award.  Some of the companies that have received it are Motorola, AT&T, Xerox, Federal Express and Ritz-Carlton.

  • What are ISO 9000 standards?  Who were they set by and why?  Can you describe other certifications based on the ISO 9000 certification?


ISO 9000 is a set of standards and a certification program for companies based on a documentation of the quality processes.  The standards were set by the International Organization for Standardization to set a standard for companies doing business.  ISO 14000 is a set of standards that focuses on environmental concerns.  QS 9000 is a set of standards based on ISO 9000 that is geared to the automobile industry.

  • Who are the three “gurus” of quality control?  Name at least one contribution made by each of them.


The three gurus are Deming, Juran and Crosby.  Deming helped management understand that most quality problems are caused by the processes and systems, not the workers.  Deming motivated the usage of statistical quality control tools for differentiating between common and special causes of variation.  Juran contributed to the quality movement by creating a focus on the definition and costs of quality.  Crosby’s contribution is a result of his argument that quality is free, which is based on that idea that many costs of quality are hard to quantify.


Source: http://www.sba.oakland.edu/faculty/wharton/downloads/POM%20343%20posted%20Answers/Questions%20to%20Chapter%205.doc

Web site to visit: http://www.sba.oakland.edu/

Author of the text: indicated on the source document of the above text

  1. "Quality is defined by the customer" is

a.   an unrealistic definition of quality
b.   a user-based definition of quality
c.   a manufacturing-based definition of quality
d.   a product-based definition of quality
e.   the definition proposed by the American Society for Quality Control

  1. 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

  1. 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

  1. 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

  1. Inspection, scrap, and repair are examples of

a.   internal costs
b.   external costs
c.   costs of dissatisfaction
d.   societal costs

  1. ISO 9000 seeks standardization in terms of

a.   products
b.   production procedures
c.   suppliers' specifications
d.   procedures to manage quality

  1. Which of the following is true about ISO 14000 certification?

a.   it is a prerequisite for ISO 9000 certification
b.   it indicates a higher level of adherence to standards than ISO 9000
c.   it is only sought by companies exporting their goods
d.   it deals with environmental management

  1. Total Quality Management emphasizes

a.   the responsibility of the Quality Control staff to identify and solve all quality-related problems
b.   a commitment to quality that goes beyond internal company issues to suppliers and customers
c.   a system where strong managers are the only decision makers
d.   a process where mostly statisticians get involved

  1. A successful TQM program incorporates all of the following except

a.   continuous improvement
b.   employment involvement
c.   benchmarking
d.   centralized decision making authority

  1. "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

  1. 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

  1. The philosophy of zero defects is

a.   unrealistic
b.   prohibitively costly
c.   an ultimate goal; in practice, 1 to 2% defects is acceptable
d.   consistent with the commitment to continuous improvement

  1. 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

  1. 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

  1. 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

  1. 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

  1. Pareto charts are used to

a.   identify inspection points in a process
b.   organize errors, problems or defects
c.   outline production schedules
d.   show an assembly sequence
e.   provide guidelines for quality training

  1. 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.   Flow chart
c.   check sheet
d.   Taguchi map

  1. The process improvement technique that sorts the "vital few" from the "trivial many" is

a.   Taguchi analysis
b.   Pareto analysis
c.   benchmarking
d.   Yamaguchi analysis

  1. A fishbone diagram is also known as a

a.   cause-and-effect diagram
b.   poka-yoke diagram
c.   Kaizen diagram
d.   Taguchi diagram

  1. 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

  1. 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

  1. 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

  1. 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.

  1. 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

  1. 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

  1. "Poka-yoke" is the Japanese term for

a.   card
b.   foolproof
c.   continuous improvement
d.   fishbone diagram
e.   Just-in-time production

  1. 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

  1. 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

  1. TQM refers to _____.
  1. total quantity management
  2. total quality management
  3. total quality marketing
  4. total quotient management
  5. total quantity marketing


  1. The 20-80 rule states _____.
  1. the top 80 percent of customers generate 20 percent of the company's profits
  2. the bottom 80 percent of customers generate 80 percent of the company's profits while the bottom 20     percent of customers generate 20 percent of the profits
  3. the top 20 percent of customers generate 80 percent of the company's profits
  4. the bottom 20 percent of customers generate 80 percent of the company's profits
  5. 20-80 percent of profits are generated by 20-80 percent of the customers


  1. _____ is a company's ability to perform in one or more ways that competitors cannot or will not match.
    1. Leveragable advantage
    2. Customer advantage
    3. Customer relationship advantage
    4. Customer lifetime value
    5. Competitive advantage


  1. Customer churn refers to ____.
  1. customer defection
  2. customer mix
  3. customer anxiety
  4. customer loyalty
  5. customer value


  1. _____ is when a company works continuously with its large customers to help improve their performance.
  1. Basic marketing
  2. Reactive marketing
  3. Accountable marketing
  4. Proactive marketing
  5. Partnership marketing


  1. Frequency programs (FP's) are designed to provide rewards to _____.
  1.   customers who need to be encouraged to buy more frequently
  2. customers who buy frequently and in substantial amounts
  3. customers who buy frequently but in small amounts
  4. customers who buy infrequently in large amounts
  5. customers who buy infrequently in small amounts


  1. A _____ is an organized collection of comprehensive information about individual customers or prospects.
  1. marketing database
  2. customer database
  3. customer mailing list
  4. business database
  5. datamine


  1. Through _____ marketing statisticians can extract useful information about individuals, trends, and segments from the mass of data.
  1. CRM
  2. prospecting
  3. datamining
  4. calculus
  5. relationship marketing


  1. Companies can build interest and enthusiasm by using databases to remember customer preferences. This strategy helps to _____.
  1. deepen customer loyalty
  2. reactivate dormant customers
  3. avoid serious customer mistakes
  4. identify prospects
  5. decide which customers should receive a particular offer


  1. One problem that can deter a firm from effectively using CRM is _____.
  1. having the resources to manage and train employees effectively
  2. not all customers want a relationship with the company getting
  3. everyone in the company to be customer oriented
  4. the expense of building and maintaining a customer database
  5. all of the above


  1. ____________ is the difference between the prospective customer's evaluation of all the benefits and all the costs of an offering and the perceived alternatives.
  1. Customer value
  2. Customer cost
  3. Value delivery system
  4. Value proposition
  5. Customer perceived value


  1. Services differ from the production of tangible goods in which of the following ways:

a.   Service output is more easily measured.
b.   Services tend to be produced and consumed simultaneously.
c.   Service output is generally more tangible.
d.   Services have a higher equipment to labor ratio.

  1. Which of the following is not an important dimension of service quality?

a.   timeliness
b.   completeness
c.   convenience
d.   likelihood

  1. In the context of total quality, companies need to make long term commitments to which of the following stakeholders?

a.   employees
b.   customers
c.   suppliers
d.   all of the above

  1. Which of the following best describes the role of a quality assurance department in an organization?

a.   Provide guidance and support for total quality efforts.
b.   Perform incoming and outgoing inspections.
c.   Direct responsibility for outgoing quality.
d.   Replace defective output.

  1. Companies have utilized the Malcolm Baldrige National Quality Award mostly for the purpose of:

a.   winning an award
b.   prestige
c.   internal assessment and improvement
d.   advertising

  1. Which of the following is the primary reason for Deming's position that slogans should be eliminated?

a.   Most problems depend on the system and cannot be controlled by workers.
b.   Slogans take up valuable space in the production department.
c.   Not all workers can read the slogans.
d.   Slogans are costly to maintain and periodically update.

  1. A user-based definition of quality is usually highly meaningful for people who work in:

a.   production
b.   inspection
c.   marketing
d.   maintenance

  1. Which of the following is false regarding inspection under the Deming philosophy?

a.   Inspection encourages the production of defects.
b.   Inspection can be used to assure quality.
c.   Inspection is rarely accurate.
d.   Inspection does not add value to the product.

  1. Deming estimated that ______ percent of variation results from the system.

a.   85 to 95
b.   5 to 15
c.   40 to 50
d.   20 to 30

  1. The cost to gain a new customer is about ____ times more costly than retaining an existing one.
    1. two
    2. three
    3. five
    4. ten


  1. The creation of separate quality departments in the early 1900s caused:
    1. indifference to quality among workers

b.     reduced knowledge about quality from upper management
c.     less responsibility for quality assigned to the quality department
d.    both a and b

  1. The three basic components of a production system are:
    1. consumers, external customers, internal customers
    2. materials, supplies, and market research
    3. inputs, processes, and outputs
    4. new products, supplies, and maintenance


  1. Which of the following is not an element of strategy?
    1. policies
    2. facilities
    3. vision
    4. goals


  1. Which of the following best describes the ISO 9000 standards?
    1. They are product quality standards.
    2. They are quality system standards.
    3. They are environmental quality standards.
    4. All of the above


  1. A consumer purchases a generic product at a cost of $5.00 instead of the competing brand-name product that sells for $7.00. The consumer feels that there is no difference in quality between the generic and brand name products. This scenario illustrates which of the following definitions of quality?
    1. manufacturing-based
    2. value-based
    3. user-based
    4. none of the above


  1. The ability to accurately and dependably provide a customer with what was promised illustrates the service quality dimension of:
    1. responsiveness
    2. assurance
    3. empathy
    4. reliability


  1. During the Middle Ages, quality was built into the final product. This approach to quality was lost with the advent of which of the following?
    1. engineering schools
    2. craft guilds
    3. automation
    4. industrial revolution


  1. Which of the following best describes logistics activities?
    1. burn-in testing
    2. preventive maintenance
    3. packing, shipping, and warehousing
    4. inspection of work-in-process


  1. Services are generally _____ intensive, whereas manufacturing is more _____ intensive.
    1. labor; equipment
    2. uniformly; randomly
    3. input; output
    4. equipment; labor


  1. Which of the following can be considered as customers of the higher education system:
    1. businesses
    2. families
    3. students
    4. all of the above


  1. A consumer evaluates the quality of automobiles based on the average number of defects per vehicle found during the first 90 days of ownership. This consumer is using which of the following definitions of quality?
    1. judgmental-based
    2. product-based
    3. value-based
    4. universal-based


  1. The Deming Prize was established in which country?
  2. Japan
  3. Germany
  4. United States
  5. Sweden


  1. Which of the following statements is true?
  2. Customer satisfaction leads to perceived value.
  3. Customer satisfaction leads to customer loyalty.
  4. Customer loyalty leads to perceived value.
  5. Customer loyalty leads to customer satisfaction.


  1. A clean hotel room fits which class of customer requirements?
  2. satisfier
  3. exciter/delighter
  4. dissatisfier
  5. all of the above



  1. True customer needs and expectations are known as:
  2. subsequent sales
  3. expected quality
  4. market share motivators
  5. satisfaction levels


  1. Which of the following are not leading quality management practices in purchasing and receiving?
  1. selecting a supplier who bids the lowest price on a supply contract
  2. training suppliers in quality improvement methodology
  3. retaining suppliers that meet expectations for superior quality
  4. requiring suppliers to provide proof of capable processes


  1. Studies indicate that many customer satisfaction efforts fail because:
  1. the satisfaction concept is measured poorly
  2. surveys that assess satisfaction include the wrong quality dimensions
  3. no comparison is made to leading competitors
  4. all of the above


  1. If a competitor's product offers the same benefits at a lower price, then the competitor's product provides:
  1. higher value
  2. lower quality
  3. lower value
  4. higher quality


  1. Top management is typically actively involved with quality at which level of the company?
  1. process level
  2. performance level
  3. organizational level
  4. none of the above


  1. Which of the following is a critical question to ask when developing a customer satisfaction measurement program?
  1. What is the cost of the program?
  2. Who is the customer?
  3. Why is the program needed?
  4. Which level of management has responsibility for the program?


  1. The Deming philosophy focuses on improvements in product and service quality by:
  1. 100 percent inspection
  2. reducing uncertainty and variability
  3. financial analysis
  4. separating the planning and execution functions of management


  1. The physical facility and equipment of a resort hotel represent which dimension of service quality?
  1. responsiveness
  2. tangibles
  3. reliability
  4. assurance


  1. A question on a customer service questionnaire uses the following measurement scale:

Strongly Agree          
Strongly Disagree

  1. This is an example of what type of measurement scale?
  1. open-ended
  2. control
  3. systematic differential
  4. Likert


  1. Which of the following questions are best asked by individuals using the performance level view of quality?
  1. What are the key markets that our company serves?
  2. Which organizational processes have the most impact on customer-driven performance standards?
  3. What is the specific standard for each requirement?
  4. Both a and b


  1. If quality is built into the product, final inspection should be:
  1. used for auditing and testing
  2. maintained at a 100 percent level
  3. eliminated
  4. the dominant aspect of quality control


  1. An assessment of the external environment and internal capabilities as part of strategy development is often called:
  1. market research
  2. SWOT analysis
  3. valuation
  4. program evaluation


  1. The ISO 9000 registration process includes all of the following except:
  1. rectification
  2. document review
  3. pre-assessment
  4. assessment


  1. At the organizational level, quality concerns should center on meeting the requirements of the:
  1. internal customer
  2. engineers and designers
  3. external customer
  4. CEO


  1. Which of the following is not a core principle of the total quality philosophy?
  1. meeting or exceeding the customer's quality expectations
  2. continuous improvement
  3. company wide participation and teamwork
  4. cost cutting to improve short term profitability


  1. The critical components of service system quality are:
  1. information systems and technical standards
  2. employees and information systems
  3. research and development and the quality assurance department
  4. production systems and employees


  1. Viewing a McDonald's restaurant as composed of order taking/cashier, grilling and food preparation, drive through, purchasing, and training processes is an example of:
  1. restaurant management
  2. systems thinking
  3. resource alignment
  4. strategic planning


  1. Quality is most difficult to measure and analyze under which of the following definitions?
  1. product-based
  2. user-based
  3. transcendent
  4. value-based


  1. Which of the following is correct?
  1. perceived quality = actual quality - expected quality
  2. expected quality = perceived quality - actual quality
  3. actual quality = expected quality - perceived quality
  4. perceived quality = expected quality - actual quality


  1. Deming stressed that the ultimate responsibility for quality improvement lies with:
  1. design engineers
  2. cost accountants
  3. top management
  4. raw material vendors


  1. Dell Computer's initiative to reduce the number of times a hard drive was handled during assembly is an example of:
  1. cost reduction
  2. vendor consolidation
  3. process improvement
  4. quality function deployment


  1. A paper mill supplies a corrugated container manufacturer with Kraft paper. The corrugated container manufacturer uses Kraft paper to manufacture corrugated shipping containers that are then sold to a cereal manufacturer. Which of the following is true?
  1. The corrugated container manufacturer is an internal customer to the cereal manufacturer.
  2. The corrugated container manufacturer is an external customer to the paper mill.
  3. Both the paper mill and corrugated container manufacturer are internal customers to the cereal manufacturer.
  4. There are no external customers.


  1. Which of the following is a criticism of the product-based definition of quality?
  1. Products are expensive.
  2. Not all products are fit for use.
  3. Consumers confuse products with services.
  4. The lack of an external standard or reference.


  1. Which of the following business types is not eligible for ISO 9000 registration?
  1. multinational corporations
  2. schools
  3. vacation resorts
  4. a, b, and c are all eligible


  1. Which of the following is an example of a measurement instrument?
  1. scales that weigh products
  2. customer satisfaction surveys
  3. a car speedometer
  4. a, b, and c


  1. Which of the following refers to any action aimed at providing customers with goods and services of appropriate quality?
  1. quality review
  2. manufacturing planning and control
  3. quality engineering
  4. quality assurance



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