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Exam 15: Quality Management

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Question 21

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Harlose Suits faced a lot of complaints from customers when its recent batch of goods was dispatched. The employees at Harlose Suits, hence, had to rework on the returned items, and in some cases, the company had to even replace the faulty goods. In this case, the costs incurred by Harlose Suits are an example of _____.

A) prevention costs
B) appraisal costs
C) internal failure costs
D) external failure costs

E) None of the above
F) A) and C)

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Question 22

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At Scorla Automobiles, a few machines in the assembly section were faulty and had to be shut down till they were repaired. This reduced the output of automobiles for the quarter. In this case, the costs incurred by Scorla Automobiles for repairing the machines are an example of _____.

A) prevention costs
B) appraisal costs
C) internal failure costs
D) external failure costs

E) A) and C)
F) B) and D)

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Question 23

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Identify a true statement about Joseph M. Juran's philosophy of quality management.

Gap 3 in the GAP model is the discrepancy between:

Dr. W. Edwards Deming defined quality as "fitness for use" and sought to improve quality by working within the system familiar to managers.

Huran Co., a food manufacturer, announced a contest for its customers where they could win exciting prizes if they fill in their details in the coupons they find in their cereal boxes and mail them to the company. But at the packaging section of the company, some of the workers forgot to insert the coupons in some of the cereal boxes. This led to numerous complaints from customers. To prevent this problem from happening again, it was suggested that the workers take 10 coupons and 10 boxes before they start packing the boxes, and if any coupon is left after the 10 boxes are packed, the workers recheck the boxes. This is an example of an application of the _____ concept.

_____ are costs expended to keep nonconforming goods and services from being made and reaching the customer.

A kaizen event is an approach for mistake-proofing processes, using automatic devices or methods to avoid simple human error.

Service quality is consistently meeting or exceeding customer expectations (external focus) and service-delivery system performance criteria (internal focus) during all service encounters.

Alex, the manager at Rues and West Inc., wants to know the sequence of the production process in the company to determine if any process can be combined or eliminated. In this case, a _____ will suit Alex's requirement.

Sémeuo is a German transnational food and beverage company. Recently, some of the products were rejected by the quality control department because they failed to meet the quality standards. Upon inspection, a number of defects were found at multiple stages of production. But Clarissa, the operations manager at Sémeuo, wants to identify the defects that have the most impact on the whole production process. In this case, which of the following quality control (QC) tools should Clarissa use?

The management of Elextric Corp., a computer manufacturing company, wants the employees in the organization to contribute to the quality of the firm by making gradual, continuous improvements in their departments. Given this information, Elextric Corp. embraces an approach known as _____.

A__________is a line graph in which data are plotted over time.

The managers at Blyrie Corp. think that their company's products are of higher quality than the products of other companies in the market. However, contrary to their perception, the customers rate the company's products as below average. This is due to the inferior process design specifications in the company. This is an example of _____ in the GAP model.

__________are costs incurred as a result of unsatisfactory quality that is found before the delivery of a good or service to the customer.

Identify a true statement about the GAP model.

Which of the following statements is true of SERVQUAL

Using color-coded wires to reduce mistakes associated with assembling complex electronic products is an example of an application of the kaizen concept.