Operational Management: Statistical Quality Control and Performance Improvement

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Chapter5| Quality and Performance |
true/falsE

1. The investment a company makes in training employees to perform their duties and redesigning products and processes to improve them would be categorized as prevention costs. * Answer: True

* Reference: Costs of Quality
* Difficulty: Moderate
* Keywords: prevention cost

2. Appraisal costs are associated with preventing defects before they happen. * Answer: False
* Reference: Costs of Quality
* Difficulty: Moderate
* Keywords: appraisal cost

3. External failure costs arise when a defect is discovered after the customer has received the product or service. * Answer: True
* Reference: Costs of Quality
* Difficulty: Moderate
* Keywords: external failure cost

4. An example of an internal failure cost would be warranty cost. * Answer: False
* Reference: Costs of Quality
* Difficulty: Moderate
* Keywords: internal failure cost

5. From an ethical standpoint, it is acceptable for a hospital’s cardiac surgery unit that is striving for zero complications to turn down high-risk patients. * Answer: False
* Reference: Ethics and Quality
* Difficulty: Easy
* Keywords: quality, ethics

6. Since an employee’s responsibility is to move production along, it is ethical to knowingly pass defective services or products to internal or external customers when capacity is tight. * Answer: False

* Reference: Ethics and Quality
* Difficulty: Easy
* Keywords: quality, ethics

7.
One of the principles that total quality management (TQM) stresses is customer satisfaction. * Answer: True
* Reference: Total Quality Management
* Difficulty: Easy
* Keywords: TQM, customer satisfaction

8. The notion of internal customers applies to all parts of a firm. * Answer: True
* Reference: Total Quality Management
* Difficulty: Easy
* Keywords: TQM, internal customer

9. One of the principles that total quality management (TQM) stresses is employee involvement. * Answer: True
* Reference: Total Quality Management
* Difficulty: Easy
* Keywords: TQM, employee involvement

10. The Six Sigma five-step approach contains the elements define, measure, analyze, improve, and control. * Answer: True
* Reference: Six Sigma
* Difficulty: Moderate
* Keywords: Six Sigma, define, measure, analyze, improve, control

11. General Electric is credited with Developing Six Sigma more than twenty years ago to improve its manufacturing capability. * Answer: False
* Reference: Six Sigma
* Difficulty: Moderate
* Keywords: Six Sigma

12. Applying Six Sigma to service processes is more challenging than for manufacturing processes. * Answer: True
* Reference: Six Sigma
* Difficulty: Moderate
* Keywords: Six Sigma, service processes, manufacturing processes

13. Because Six Sigma involves the elimination of defects, it can only be applied in manufacturing processes
Answer: False
Reference: Six Sigma Improvement Model
Difficulty: Easy
Keywords: Six Sigma

14.
The Six Sigma improvement model can be applied both to projects involving incremental improvements to processes and to projects requiring major changes.
Answer: True
Reference: Six Sigma Improvement Model
Difficulty: Easy
Keywords: Six Sigma

15. Successful users of the Six Sigma improvement model (DMAIC) have found that some DMAIC steps are not needed and don’t have...
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