GM588 FINAL EXAMS ANSWER

1.  (TCO 10) Quality costs are classified into all of the following major categories except

A )  internal failure.

B )  appraisal.

C )  inspection.

D )  prevention.

2.  (TCO 9) Which types of processes drive the creation of products and services, are critical to customer satisfaction, and have a large impact on the organization's strategic goals?

A )  Value-creation processes

B )  Support processes

C )  Outsourced processes

D )  Supplier processes

3.  (TCO 10) Management is considering purchasing copies of a textbook on quality for employees as part of their training program in process improvement methods.  The cost of purchasing these books is considered a(an)

A )  Prevention Cost

B )  Appraisal Cost

C )  Internal Failure Cost

D )  External Failure Cost

4.  (TCO 9) The legal notion that a manufacturer can be held liable for defective or dangerous products that cause physical harm to users is known as

A )  strict liability.

B )  legality.

C )  direct responsibility.

D )  product hazard.

5.  (TCO 9) Process management consists of

A )  design, management, and improvement.

B )  design, control, and improvement.

C )  design, control, and standardization.

D )  analysis, control, and improvement.

6.  (TCO 10) In one company, managers can never find key reports of company performance when needed.  This violates the aspect of good data and information management related to

A )  data validity.

B )  data reliability.

C )  data accessibility.

D )  data analysis.

7.  (TCO 9) A graphical representation of a process sequence is known as a(an)

A )  affinity diagram

B )  Pareto chart.

C )  flowchart.

D )  control chart.

8.  (TCO 10) Which of the following represents a fundamental mistake that companies tend to make when collecting performance measures and indicators?

A )  critical performance characteristics are not measured

B )  too little data is collected

C )  irrelevant or inappropriate measures are obtained

D )  a and c

9.  (TCO 10) A machined part is returned to the drilling department for rework.  The additional labor that is used to correct the quality problem with the part is a(an)

A )  Prevention Cost

B )  Appraisal Cost

C )  Internal Failure Cost

D )  External Failure Cost

10.  (TCO 9) Which of the following terms best describes kaizen?

A )  concurrent engineering

B )  continuous improvement

C )  innovation

D )  statistical process control

11.  (TCO 9) Which of the following is not true regarding kaizen?

A )  kaizen requires substantial investment to fund cutting-edge innovation

B )  kaizen is different than innovation

C )  kaizen concentrates on small, gradual improvements over the long term

D )  any improvement activity is a part of the kaizen philosophy

12.  (TCO 9) Design-for-environment is the explicit consideration of environmental concerns during the design of products and processes, and includes such practices as designing for

A )  recycleability.

B )  disassembly.

C )  manufacturability.

D )  a and b

13.  (TCO 10) Balancing quality costs against expected revenue gains is known as

A )  return on quality.

B )  breakeven analysis.

C )  economic value added.

D )  the rule of tradeoffs.

14.  (TCO 10) Studies suggest that quality-related costs are generally in the range of ______ of annual sales.

A )  five percent

B )  ten percent

C )  twenty to forty percent

D )  fifty to seventy percent

15.  (TCO 10) Safety, absenteeism, and turnover can be classified as

A )  strategic measures.

B )  customer satisfaction measures.

C )  human resource measures.

D )  financial performance measures

16.  (TCO 10) Ford Motor Corporation recently recalled their Windstar vans from the last mode year to replace the relay switch on the rear passenger air-conditioning/heat fan motors.  The cost of purchasing and replacing these switches is a(an)

A )  Prevention Cost

B )  Appraisal Cost

C )  Internal Failure Cost

D )  External Failure Cost

17.  (TCO 9) In the context of process management, _____ is the activity of ensuring conformance to the requirements and taking corrective action when necessary to correct problems and maintain stable performance, whereas, _____ implies enhancing performance.

A )  performance, innovation

B )  control, improvement

C )  inspection, innovation

D )  management, control

18.  (TCO 9) ____________ is the process of designing a product for efficient production at the highest level of quality:

A )  Process improvement

B )  Design-for-manufacturability

C )  Design-for-environment

D )  Kaizen

19.  (TCO 9) Employees from an insurance firm are given the task of studying the employee training programs at a major bank. This is an example of

A )  process management.

B )  strategic reengineering.

C )  benchmarking.

D )  quality control.

20.  (TCO 10) "Number of customers gained and lost during the quarter" is an example of a

A )  product and service measure.

B )  human resource measure.

C )  customer-focused measure.

D )  financial and market measure.