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Chapter 2–Quality Management
Student: ___________________________________________________________________________
1. High quality implies having the capability to consistently produce products that satisfy or exceed customer
needs.
True False
2. In 1979, Dr. W. Edwards Deming authored the book Quality Is Free, which emphasized that doing things
right the first time adds nothing to the cost of a product or service.
True False
3. External failure costs refer to the cost of poor quality if the error is caught within the production facility
before it is sold to the customer.
True False
4. High-quality products and services are necessary for the survival, growth, and competitiveness of an
organization.
True False
5. As quality increases, both internal and external failure costs decrease, whereas assurance and prevention costs
increase.
True False
6. Research over a long period has shown that it is more costly to continue serving existing customers than to
increase market share.
True False
7. Determining the underlying components of quality is rather straightforward because quality normally means
the same thing to different customers.
True False
8. Like the quality of tangible goods, the quality of a service is also determined by multiple dimensions.
True False
9. Perception does not influence a customer’s opinion of product quality.
True False
10. Craftsmen were generally in direct contact with their customers, and products were created on the basis of
specifications provided by individual customers to local producers.
True False
11. Inspection is the selection of randomly selected products from the production line for quality checks.
True False
12. The Deming Prize is the highest honor for quality and performance excellence for a United States-based
manufacturing, service, small business, education, or healthcare organization.
True False
13. Feigenbaum, known as the father of modern quality management, used 14 points and the
Plan-Do-Check-Act cycle to provide guidelines for implementing quality improvement plans.
True False
14. A quality circle is a small group of employees who are responsible for similar or related work functions, and
meets regularly to identify, analyze, and solve quality and production problems related to its work.
True False
15. Robust quality principles are now routinely used in identifying the optimum design of product components
for many complex industries.
True False
16. TQM advocates support and commitment from the highest level of management.
True False
17. The primary objective of ISO standards is to make the development, manufacturing, and supply of products
and services more efficient, safe, and clean.
True False
18. The U.S. government mandates ISO 9000 standards.
True False
19. Total quality management (TQM) is an umbrella term that is used to describe a quality management system
that addresses all areas and employees of an organization, emphasizes customer satisfaction, and uses
continuous improvement tools and techniques.
True False
20. The focus of ISO 14000 standards is on minimizing the harmful effects on the environment caused by an
organization’s activities and on achieving continual improvement in environmental performance.
True False
21. The guiding framework of MBNQA is not an adequate model for implementing TQM and the teachings of
quality gurus.
True False
22. Visionary leadership is a central tenet of the MBNQA.
True False
23. The focus of ISO 9000 standards is on minimizing the harmful effects on the environment caused by an
organization’s activities and on achieving continual improvement in environmental performance.
True False
24. DMAIC, which stands for Define, Measure, Analyze, Improve, and Control, is central to Six Sigma.
True False
25. Six Sigma has a genuine focus on understanding the needs and preferences of the customer.
True False
26. A Six Sigma quality thus means that the distance from the mean value of the process to both the LTL and
the UTL is six standard deviations.
True False
27. The first three steps in the DMAIC plan are called the process characterization phase because they provide
descriptive information about the existing process.
True False
28. Six Sigma emphasizes the need to react to quality problems as soon as possible after they occur.
True False
29. Meeting a customer’s minimum standards is sufficient for a successful Six Sigma Program.
True False
30. Having a customer focus is central to ISO 9000 standards, the Baldrige framework, and Six Sigma.
True False
31. Firms undertake quality and process improvement efforts to achieve all the following goals except
A. Cost reduction
B. Increased market share
C. Customer satisfaction enhancement
D. Increased customer loyalty
E. Improved market performance
32. Which of the following is not a broad category for the different types of costs associated with quality
improvement?
A. Internal failure costs
B. External failure costs
C. Inventory costs
D. Assurance costs
E. Prevention costs
33. An example of internal failure costs is
A. Rework costs
B. Training costs
C. Inspection costs
D. Sampling costs
E. Nondestructive testing costs
34. An example of an assurance cost associated with the cost of quality is
A. Rework cost
B. Scrap costs
C. Replacement costs
D. Inspection costs
E. Training costs
35. Which of the following is considered a “prevention cost” of quality?
A. Cost of rework of products that failed
B. Cost of training
C. Cost of testing equipment used in appraisal
D. Negative word of mouth
E. Cost of lost production
36. As quality levels increase, ____.
A. Internal costs decrease
B. Internal costs increase
C. External failure costs increase
D. Assurance costs decrease
E. Prevention costs decrease
37. In the long term, which of the following is not the result of an organization’s quality improvement efforts?
A. Higher customer satisfaction
B. Positive word of mouth
C. Food reputation
D. Increased market share
E. Employee turnover rate
38. Which of the following is not considered a dimension of service quality?
A. Responsiveness
B. Competence
C. Access
D. Special features
E. Courtesy
39. A dimension of service and product quality that refers to the performance consistency of the goods or
service is
A. Responsiveness
B. Reliability
C. Communication
D. Durability
E. Serviceability
40. Which of the following is not considered a dimension of product quality?
A. Performance
B. Communication
C. Reliability
D. Durability
E. Serviceability
41. Which term refers to a customer associating the quality of a product with the image of the company?
A. Reputation
B. Aesthetics
C. Special features
D. Durability
E. Conformance
42. Security as a dimension of service quality means
A. The willingness to assist customers
B. Having the knowledge to perform the service
C. Recognizing that confidentiality is important in service delivery
D. The service provider’s politeness and friendliness
E. Physical characteristics of the service provider
43. Customer expectations related to quality are influenced by all the following except
A. Personal needs
B. Word of mouth
C. Reputation
D. Internal defect rates
E. Past experience
44. Because it is impossible for a quality inspector to check each individual product to ensure that it meets the
specifications, companies started using
A. Sampling
B. ISO quality standards
C. 100% inspection
D. Continuous improvement
E. Color coding
45. The award created by the U.S. government in 1987 to help improve quality and competitiveness of U.S.
companies by recognizing the highest performing organizations is the
A. Deming Prize
B. Malcolm Baldrige National Quality Award
C. American Society for Quality Achievement Award
D. Lombardi Trophy
E. The Academy of Quality National Award
46. Which of the following concepts was not considered by Deming as an important point for quality and
process improvement?
A. Cease dependence on inspection
B. End the practice of awarding business on the basis of the price tag
C. Institute training on the job
D. Eliminate slogans
E. Reward people for doing a job correctly with a large bonus
47. Which of the following is not one of the four quality absolutes as defined by Philip Crosby?
A. Quality is defined as conformance to requirements.
B. The system for causing quality is prevention , not appraisal.
C. Management must enforce quality levels.
D. The performance standard must have zero defects.
E. The measurement of quality is the price of nonconformance.
48. Which of the following is not a well-known quality guru?
A. Adam Smith
B. Phillip Crosby
C. Armand Feigenbaum
D. Joseph Juran
E. Genichi Taguchi
49. Choose the statement that most closely describes a total quality management system.
A. Detection of defects
B. Prevention of defects
C. Inspection for defects
D. Conformance to specifications
E. Correction of defects
50. A diagram that visually displays all possible causes of a quality problem with the goal of finding the reasons
for the imperfections is a
A. Deming chart
B. Pareto diagram
C. Quality dyad
D. Cause-and-effect diagram
E. PDCA cycle
51. What percentage of the area of a normal curve is between +2 and -2 standard deviations?
A. 0%
B. 68.3%
C. 95.5%
D. 99.7%
E. 100%
52. When computing the process sigma, the percentage of defective products can be found by finding the area
____ in a cumulative normal distribution curve.
A. between the UTL and LTL
B. below the LTL
C. beyond the LTL
D. outside the UTL and LTL
E. under the curve
53. In reality, on the basis of computations, a Six Sigma process quality level is equivalent to the LTL and the
UTL’s being how many standard deviations away from the extreme position of the mean?
A. 1.5 standard deviations
B. 3 standard deviations
C. 4.5 standard deviations
D. 6 standard deviations
E. 12 standard deviations
54. The Six Sigma approach described in the text is implemented using a structured five-step plan known as
A. ISO implementation procedure
B. Deming’s 14 points
C. The Taguchi function
D. DMAIC
E. MBNQA
55. Quality improvement efforts are often credited with reducing
A. The number of found defects
B. Overall production costs
C. The number of sales personnel
D. Quality initiatives
E. The required number of control charts
56. What are the four parts of the Deming cycle for continuous improvement?
57. What is a quality circle?
58. Briefly describe Dr. Edward Deming’s contribution to quality.
59. What is the Malcolm Baldrige National Quality Award?
60. Describe how “managing by fact” influences TQM.
61. Describe how ISO 9000 standards can benefit consumers.
62. Discuss how customer expectations can influence the assessment of quality.
63. Describe internal failure cost, with an example in a local restaurant.
64. Sketch the cost of quality curve.
65. Identify and describe four of the dimensions of product quality discussed in the textbook.
66. For a given process, past data reveals that the mean of the process is 9 and the standard deviation is 3.
Tolerance limits are specified as UTL = 16 and LTL = 2. What would the process sigma be for this process
using the UTL?
67. For a given process, past data reveals that the mean of the process is 9 and the standard deviation is 3.
Tolerance limits are specified as UTL = 16 and LTL = 2. What would the percent defective be for this process
using the UTL?
68. A machine shop requires a specific hardness range on purchased iron blocks. A machine is used to test the
hardness. To be acceptable, the hardness readings need to be between a UTL of 366 and an LTL of 335. The
supplier reports that the mean hardness is 350, with a standard deviation of 7. Calculate the process sigma using
the LTL.
69. A machine shop requires a specific hardness range on purchased iron blocks. A machine is used to test the
hardness. To be acceptable, the hardness readings need to be between a UTL of 366 and an LTL of 335. The
supplier reports that the mean hardness is 350, with a standard deviation of 7. What would the percent defective
be for this process using the LTL?
70. A machine shop requires a specific hardness range on purchased iron blocks. A machine is used to test the
hardness. To be acceptable, the hardness readings need to be between a UTL of 366 and an LTL of 335. The
supplier reports that the mean hardness is 350, with a standard deviation of 7. The Z-score is 2.33 for a
defective rate of less than 1%. What standard deviation is required if the UTL is used to compute the process
sigma?
71. Pete’s Pizza promises delivery to your home or office in under an hour. His goal is to deliver all Pizzas
between 20 and 60 minutes. Records indicate the average delivery time is 38 minutes, with a standard deviation
of 3 minutes. Is the company delivering within Six Sigma quality levels with respect to delivery time?
72. Pete’s sister Patty runs a similar restaurant called Patty’s Pizza with the same 1-hour delivery promise. Her
delivery records show a mean delivery time of 40 minutes, with a standard deviation of 5 minutes. She does not
meet Six Sigma quality levels for delivery time. What does her standard deviation need to be to achieve Six
Sigma quality levels for delivery?
73. Jay Jones bought Matt’s Mechanics Service. Matt told Jay that his three primary processes, diagnosis, repair
and customer delivery, met internal goals 95% of the time, so he assumed customers were satisfied 95% of the
time. Jay disagrees and wants to know how often customers have an error-free outcome. What would you tell
him?
74. Jay decides to try to improve each process so that the percentage of error-free outcomes will be at least 95%.
What will each process need to be to reach this goal?
75. The local university’s Admissions’ office has four steps required in the admissions process. Applications
must be entered in the system, reviewed for accuracy, reviewed by the admissions team, and a letter of
acceptance or rejection must be sent. To provide timely feedback, each step has a time goal. Applications are
entered in the system faster than the goal 94% of
