COPY: Quality and Strategy

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Questions and Answers

Which of the following is a way that managing quality can support a company's strategy?

By allowing the company to stand out in the market by offering superior products or services. (correct)
By reducing customer satisfaction, which enhances responsiveness to market demands.
By limiting the company to only offering basic products or services.
By increasing rework, defects, and warranty claims which increases production costs.

What is the focus of manufacturing based quality?

Defect-free production and consistency. (correct)
How well the product meets customer expectations.
Innovation and design.
Specific attributes like durability, reliability, and features.

An organization with a strong quality reputation is most likely to experience which of the following benefits?

Increased customer loyalty, which leads to long-term success. (correct)
Decreased competitiveness in the global market.
Increased expenses due to higher material costs to ensure quality.
Reduced ability to innovate due to strict quality standards.

Which of the following is an example of an internal failure cost?

The costs associated with defective parts or services identified before delivery. (B) Signup and view all the answers

According to W. Edwards Deming, what role should management assume in building good systems?

To accept responsibility for building good systems. (C) Signup and view all the answers

What is the primary objective of ethical quality management?

To ensure trust, compliance, and long-term success. (C) Signup and view all the answers

What is the main goal of Total Quality Management (TQM)?

To use employee involvement and customer focus for continuous improvement. (D) Signup and view all the answers

Which of Deming's fourteen points emphasizes promoting teamwork across different departments within an organization?

Break Down Barriers Between Departments. (B) Signup and view all the answers

What does Kaizen describe?

The ongoing process of unending improvement. (A) Signup and view all the answers

Which of the following best describes Six Sigma?

A program designed to reduce defects, lower costs, save time, and improve customer satisfaction. (C) Signup and view all the answers

In the DMAIC process of Six Sigma, what is the purpose of the 'Analyze' phase?

To analyze the data, ensuring repeatability and reproducibility. (A) Signup and view all the answers

What is a primary goal of employee empowerment in the context of quality management?

To empower employees to identify quality issues and suggest improvements. (D) Signup and view all the answers

What is the function of a facilitator in quality circles?

To lead the quality circle. (C) Signup and view all the answers

When forming a benchmark team, what is primarily done?

Determine what to benchmark. (B) Signup and view all the answers

What is a key characteristic of Just-in-Time (JIT) system?

Production only when signaled. (C) Signup and view all the answers

Which of the following is the primary aim of Taguchi concepts?

To improve product and process design using engineering and experimental design methods. (B) Signup and view all the answers

What does quality robustness aim to achieve?

Producing products uniformly in adverse manufacturing and environmental conditions. (A) Signup and view all the answers

What does a Quality Loss Function show?

Shows that costs increase as the product moves away from what the customer wants. (D) Signup and view all the answers

Which tool is used to collect and organize data on defects, errors, or issues in a production process?

Check Sheet. (D) Signup and view all the answers

When should a Pareto chart be used in quality management?

When prioritizing the most significant causes of a problem. (A) Signup and view all the answers

When would a company use a flowchart (process diagram)?

To map out a process to identify inefficiencies or bottlenecks. (D) Signup and view all the answers

What does a statistical process control (SPC) chart help monitor?

A process over time to detect variations and ensure stability. (D) Signup and view all the answers

In quality control, what is meant by 'inspection'?

Examining items to see if an item is good or defective. (C) Signup and view all the answers

When is the most effective time to conduct quality inspections?

At the supplier's plant while the supplier is producing. (A) Signup and view all the answers

Why is relying on inspection alone not enough to ensure quality?

Prevention is more effective than detection. (C) Signup and view all the answers

Which concept is characterized by quality being built into the process rather than relying on final inspections?

Source Inspection (A) Signup and view all the answers

What is the purpose of using foolproof techniques (Poka-Yoke)?

To prevent defects from occurring. (C) Signup and view all the answers

How does the application of TQM differ between the service and product industries?

Service quality is harder to quantify than product quality because services are intangible, variable, and customer-dependent. (B) Signup and view all the answers

Which of the following tangible aspects does the operations manager need to recognize when addressing service quality?

The speed a service is conducted. (B) Signup and view all the answers

What does `Responsiveness` mean for providing service?

Willingness or readiness of employees to provide service. (B) Signup and view all the answers

What would the `L` in Marriott's LEARN routine be?

Listen (B) Signup and view all the answers

In the context of service quality and evaluation, what does SERVQUAL measure?

Customer perceptions of service quality by comparing expectations vs. actual experience. (A) Signup and view all the answers

During a service quality evaluation using SERVQUAL, what might a business do upon discovering gaps between customer expectations and actual service received?

Develop strategies for better service. (C) Signup and view all the answers

A customer states that, 'The business ensured long-term quality and customer retention. How would you classify this?'

Total quality management. (A) Signup and view all the answers

What approach does Toyota integrate to ensure high-quality components from suppliers?

Toyota collaborates with suppliers adhering to strict quality control standards to ensure high-quality components. (B) Signup and view all the answers

Which system used by Toyota allows workers to stop production if a defect is detected, preventing major quality issues?

The Andon system. (A) Signup and view all the answers

How did Toyota address its significant quality crisis in 2009-2010 regarding unintended acceleration issues?

By strengthening supplier oversight, internal quality control, and focus on root cause analysis, while improving customer communication and transparency in recalls. (D) Signup and view all the answers

How does investing in quality upfront contribute to long-term financial performance?

It reduces costs associated with rework, scrap, warranty claims, and customer attrition. (B) Signup and view all the answers

What is the implication of poor supplier quality on an organization?

It leads to production issues, decreases customer satisfaction, and damages brand reputation. (C) Signup and view all the answers

Which principle is most critical when an organization aims to build a culture of quality?

Management commitment to establishing a culture of quality through training and clear objectives. (A) Signup and view all the answers

Which of the following reflects the user-based view of quality?

Quality depends on how well the product satisfies customer expectations. (B) Signup and view all the answers

What is the primary goal of incorporating ethics into quality management?

To ensure trust, compliance, and long-term success by delivering safe, high-quality products and services. (A) Signup and view all the answers

What is the most important action a company should take when it identifies risks or defects in its products?

Act transparently and responsibly to address and communicate the issues. (B) Signup and view all the answers

Which of the following is the most comprehensive description of Total Quality Management (TQM)?

An organization-wide philosophy focused on continuous quality improvement, extending from suppliers to customers. (D) Signup and view all the answers

Which aspect of organizational culture is most vital for the successful implementation of TQM?

Involvement of all employees in the process of continuous improvement. (B) Signup and view all the answers

What does 'ceasing dependence on inspection' mean in the context of Deming’s 14 points?

Building quality into the process itself rather than relying on inspection to find defects. (D) Signup and view all the answers

How does Six Sigma contribute to Total Quality Management?

By providing specific techniques for achieving higher quality. (A) Signup and view all the answers

Within the DMAIC methodology, which activity best describes `Improve`?

Altering or redesigning processes/procedures. (A) Signup and view all the answers

What’s the best way to describe how leaders should implement Six Sigma to realize success?

Formulating the plan, communicate their buy-in, and setting the example for others (B) Signup and view all the answers

When building high-morale for employees, what is a quality-related activity to action?

Develop communication networks that include employees. (D) Signup and view all the answers

When forming a quality circle, what is required to achieve better results?

Trained in group planning, problem solving, and statistical quality control (B) Signup and view all the answers

What is the primary purpose of identifying benchmarking partners?

To find organizations that can serve as a standard of comparison. (A) Signup and view all the answers

How does a Just-in-Time (JIT) system relate to quality improvement?

It reduces the cost of quality and improves overall quality. (A) Signup and view all the answers

What is the core principle that underlies quality robustness?

Producing products uniformly despite adverse manufacturing or environmental conditions. (C) Signup and view all the answers

What information does a Quality Loss Function provide?

How costs increase as the product deviates from customer wants. (B) Signup and view all the answers

Which is an appropriate use for a check sheet?

To collect and organize data on defects, errors, or issues in a production process. (C) Signup and view all the answers

How does a scatter diagram aid in quality control?

By analyzing relationships between two variables, like temperature and product defects. (B) Signup and view all the answers

For what purpose would a company implement Statistical Process Control (SPC)?

To monitor a process over time and detect variations that may affect quality. (C) Signup and view all the answers

What is the major drawback of relying solely on inspection for quality control?

It does not address root causes of defects and is expensive. (C) Signup and view all the answers

What does building 'quality into the process' mean, as opposed to relying on final inspections?

Creating a robust product design that is defect-resistant. (D) Signup and view all the answers

Why is source inspection important in maintaining product quality?

It detects defects at the source rather than after production. (C) Signup and view all the answers

What is the purpose of using foolproof techniques (Poka-Yoke) in a production process?

To prevent defects from occurring by using designs and methods. (A) Signup and view all the answers

Why may service quality be harder than quality in the product industry to maintain?

Services are intangible, variable, and customer-dependent. (A) Signup and view all the answers

When addressing service quality, what element should managers consider?

The tangible component of services. (A) Signup and view all the answers

What does `Competence` mean for providing service?

Required skills and knowledge. (D) Signup and view all the answers

The `N` in Marriott's LEARN routine involves which of the following?

Notify a manager. (A) Signup and view all the answers

What are the key categories used in SERVQUAL to evaluate service quality?

Reliability, Assurance, Tangibles, Empathy, Responsiveness. (B) Signup and view all the answers

What is the first step Marriott employees should carry out within the LEARN framework?

Listen to the complainer. (B) Signup and view all the answers

Within Toyota's framework, what action is triggered when a worker detects a defect?

The worker is empowered to stop the production line using the Andon system. (D) Signup and view all the answers

What activity is Toyota's Supply Chain Management focused on?

Using strict quality control standards. (A) Signup and view all the answers

How did Toyota improve their cars to reduce safety issues?

By increasing focus on root cause analysis. (C) Signup and view all the answers

For Toyota’s product design, what ensures that cars meet expectations?

Toyota integrates customer feedback into the design process using Quality Function Deployment (QFD). (D) Signup and view all the answers

How does quality reduce costs?

By reducing defects and waste, which increases customer satisfaction and brand royalty. (C) Signup and view all the answers

What should companies prioritize over everything else to ensure safe and quality products?

Customer safety. (A) Signup and view all the answers

What is the best way for a company to respond to quality problems?

By being transparent and responsibly with defects or risk. (D) Signup and view all the answers

How should the following stakeholders be considered? (Customers, Shareholders, Employees, Suppliers, Society)

They must be the company's central point and mission for ethical success. (C) Signup and view all the answers

What best describes TQM?

The company's long-term philosophy which extends from suppliers to customers. (C) Signup and view all the answers

What's the best analogy to describe an organization's continuous improvement?

A journey, not a destination. (C) Signup and view all the answers

How do well-managed supply chains with high-quality inputs contribute to a company's response strategy?

By enabling firms to quickly adapt to customer needs through improved market responsiveness. (A) Signup and view all the answers

What is the relationship between standardized processes, process automation, and continuous improvement in manufacturing and service operations?

They collectively ensure consistent quality in operations. (C) Signup and view all the answers

In the context of quality management, why is it important for organizations to act transparently and responsibly when defects or risks are identified?

To maintain public trust and avoid severe legal consequences. (B) Signup and view all the answers

How does integrating customer feedback into product design through methods like Quality Function Deployment (QFD) affect product outcomes?

It ensures that products meet market expectations and customer needs. (A) Signup and view all the answers

What role does the Andon system play in manufacturing and service quality, as highlighted in the Toyota case study?

It empowers workers to halt production upon defect detection, preventing major quality issues. (D) Signup and view all the answers

Flashcards

Quality and Strategy

Allows a company to differentiate itself by providing superior products or services.

Manufacturing-Based Quality

Focuses on achieving defect-free production and maintaining consistency in output.

Strong Quality Reputation

Increased customer loyalty, which subsequently leads to long-term success and stability.

Internal Failure Costs

Costs incurred due to defective parts or services that are identified before they are delivered to the customer.