1. Which of the following statements best describes the relationship between quality management and product strategy? a. Product strategy is set by top management; quality management is an independent activity. d. Managing quality helps build successful product strategies. b. Quality management is important to the low-cost product strategy, but not to the response or differentiation strategies. e. Companies with the highest measures of quality were no more productive than other firms. c. High quality is important to all three strategies, but it is not a critical success factor. ABCDE 2. Three broad categores of definitions of quality are: a. product quality, service quality, and organizational quality. d. low-cost, response, and differentiation. b. user-based, manufacturing-based, and product-based. e. Pareto, Shewhart, and Deming. c. internal, external, and prevention. ABCDE 3. The role of quality in limiting a firm’s product liability is illustrated by: a. ensring that contaminated products such as impure foods do not reach customers. d. using processes that make products as safe or as durable as their design specifications call for. b. ensuring that products meet standards such as those of the Consumer Product Safety Act. e. All of the above are valid. c. designing safe products to limit possible harm to consumers. ABCDE 4. Inspection, scrap, and repair are examples of: a. internal costs. d. prevention costs. b. external costs. e. societal costs. c. costs of dissatisfaction. ABCDE 5. The philosophy of zero defects is a. the result of Deming’s research. d. an ultimate goal; in practice, 1 to 2% defects is acceptable. b. unrealistic. e. consistent with the commitment to continuous improvement. c. prohibitively costly. ABCDE 6. Regarding the quality of design, production, and distribution of products, an ethical requirement for management is to: a. determine whether any of the organization’s stakeholders are violated by poor quality products. d. have the organization’s legal staff write disclaimers in the product instruction booklets. b. gain ISO 14000 certification for the organization. e. compare the cost of product liability to the external failure cost. c. obtain a product safety certificate from the Consumer Product Safety Commission. ABCDE 7. ISO 9000 seeks standardization in terms of: a. products. d. procedures to manage quality. b. production procedures. e. all of the above. c. suppliers’ specifications. ABCDE 8. Which of the following is true about ISO 14000 certification? a. It is a prerequisite for ISO 9000 certification. d. It deals with environmental management. b. It indicates a higher level of adherence to standards than ISO 9000. e. It is of little interest to European companies. c. It is only sought by companies exporting their goods. ABCDE 9. “Kaizen” is a Japanese term meaning: a. a foolproof mechanism. d. setting standards. b. just-in-time (JIT). e. continuous improvement. c. a fishbone diagram. ABCDE 10. Which of the following statements regarding “Six Sigma” is true? a. The term has two distinct meanings - one is statistical; the other is a comprehensive system. d. The Six Sigma program is for manufacturing firms, and is not applicable to services. b. Six Sigma means that about 99 percent of a firm’s output is free of defects. e. Six Sigma certification is granted by the International Standards Organization (ISO). c. The Six Sigma program was developed by Toyota in the 1970s. ABCDE 11. Pareto charts are used to: a. identify inspection points in a process. d. show material flow. b. outline production schedules. e. all of the above. c. organize errors, problems, or defects. ABCDE 12. The “four Ms” of cause-and-effect diagrams are: a. material, machinery/equipment, manpower, and methods. d. material, management, manpower, and motivation. b. material, methods, men, and mental attitude. e. none of the above. c. named after four quality experts. ABCDE 13. The process improvement technique that sorts the “vital few” from the “trivial many” is: a. Taguchi analysis. d. Deming analysis. b. Pareto analysis. e. Yamaguchi analysis. c. benchmarking. ABCDE 14. A manager tells her production employees, “It’s no longer good enough that your work fall anywhere within the specification limits. I need your work to be as close to the target value as possible.” Her thinking is reflective of: a. internal benchmarking. d. Taguchi concepts. b. Six Sigma. e. process control charts. c. ISO 9000. ABCDE 15. A fishbone diagram is also known as a: a. cause-and-effect diagram. d. Kanban diagram. b. poka-yoke diagram. e. Taguchi diagra. c. Kaizen diagram.