Chapter 6 Managing Quality True False

Operations Management Chapter 6 Managing Quality 1) Managers at Arnold Palmer Hospital take quality so seriously that the hospital is a national leader in several quality areas; therefore, continuous improvement is no longer necessary. Answer: FALSE Diff: 2 Skill: comprehension Objective: LO1 Define quality and TQM 2) An improvement in quality must necessarily increase costs. Answer: FALSE Diff: 2 Skill: comprehension Objective: LO1 Define quality and TQM 3) Security is the determinant of service quality that means freedom from danger, risk, or doubt. Answer: TRUE Diff: 2 Skill: comprehension Objective: TQM in services 4) The definition of quality adopted by The American Society for Quality is a customer-oriented definition. Answer: TRUE Diff: 2 Skill: comprehension Objective: LO1 Define quality and TQM 5) Conforming to standards is the focus of the product-based definition of quality. Answer: FALSE Diff: 3 Skill: comprehension Objective: LO1 Define quality and TQM 6) Internal failure costs are associated with scrap, rework, and downtime. Answer: TRUE Diff: 1 Skill: comprehension Objective: LO1 Define quality and TQM 7) Philip Crosby is credited with both of these quality catch-phrases: "quality is free" and "zero defects." Answer: TRUE Diff: 2 Skill: knowledge Objective: LO1 Define quality and TQM 1 8) 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. Answer: FALSE Diff: 3 Skill: comprehension Objective: LO1 Define quality and TQM 9) Improved quality can increase profitability via flexible pricing. Answer: TRUE Diff: 3 Skill: comprehension Objective: LO1 Define quality and TQM 10) ISO 9000 has evolved from a set of quality assurance standards toward a quality management system. Answer: TRUE Diff: 2 Skill: knowledge Objective: LO2 Describe the ISO international quality standards 11) Quality is mostly the business of the quality control staff, not ordinary employees. Answer: FALSE Diff: 2 Skill: comprehension Objective: LO1 Define quality and TQM 12) TQM is important because quality influences all of the 10 decisions made by operations managers. Answer: TRUE Diff: 2 Skill: comprehension Objective: LO1 Define quality and TQM 13) 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. Answer: TRUE Diff: 3 Skill: knowledge Objective: LO3 Explain what Six Sigma is 14) Continuous improvement is based on the philosophy that every aspect of an operation can be improved. Answer: TRUE Diff: 2 Skill: knowledge Objective: LO1 Define quality and TQM 2 15) Kaizen is similar to TQM in that both are focused on continuous improvement. Answer: TRUE Diff: 2 Skill: comprehension Objective: LO1 Define quality and TQM 16) The Japanese use the term poka-yoke to refer to continuous improvement. Answer: FALSE Diff: 2 Skill: knowledge Objective: LO1 Define quality and TQM 17) Quality circles empower employees to improve productivity by finding solutions to workrelated problems in their work area. Answer: TRUE Diff: 2 Skill: comprehension Objective: LO1 Define quality and TQM 18) 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. Answer: FALSE Diff: 2 Skill: comprehension Objective: LO4 Explain how benchmarking is used in TQM 19) Line employees need the knowledge of TQM tools. Answer: TRUE Diff: 1 Skill: knowledge Objective: LO1 Define quality and TQM 20) One of the ways that just-in-time (JIT) influences quality is that by reducing inventory, bad quality is exposed. Answer: TRUE Diff: 2 Skill: comprehension Objective: LO1 Define quality and TQM 21) The quality loss function indicates that costs related to poor quality are low as long as the product is within acceptable specification limits. Answer: FALSE Diff: 2 Skill: comprehension Objective: LO1 Define quality and TQM 3 22) Pareto charts are a graphical way of identifying the few critical items from the many less important ones. Answer: TRUE Diff: 2 Skill: comprehension Objective: LO6 Use the seven tools of TQM 23) A cause-and-effect diagram helps identify the source of a problem. Answer: TRUE Diff: 2 Skill: comprehension Objective: LO6 Use the seven tools of TQM 24) Source inspection is inferior to inspection before costly operations. Answer: FALSE Diff: 3 Skill: comprehension Objective: LO5 Explain quality robust products and Taguchi concepts 25) Of the several determinants of service quality, access is the one that relates to keeping customers informed in language they can understand. Answer: FALSE Diff: 3 Skill: comprehension Objective: LO5 Explain quality robust products and Taguchi concepts 26) High-quality products and services are the most profitable. Answer: TRUE Diff: 1 Skill: comprehension Objective: LO1 Define quality and TQM 4