Managing Quality Integrating The Supply Chain 6th Edition by S. Thomas Foster – Test Bank
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Sample Test
Managing Quality: Integrating the Supply Chain, 6e (Foster)
Chapter 3 Global Supply Chain Quality and
International Quality Standards
1) ________ allows foreign firms to sell in restricted markets
while using the design of the original designer.
1. A)
Exporting
2. B)
Franchising
3. C)
Licensing
4. D)
Importing
5. E)
Partnering
Answer: C
Diff: 2
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.1 Understand the importance of quality in global
economics.
AACSB: Application of Knowledge
Type: Concept
2) By changing their ________ environment, firms locate
themselves near to or far away from natural resources.
1. A)
economic
2. B)
task
3. C)
physical
4. D)
global
5. E)
social
Answer: C
Diff: 1
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.1 Understand the importance of quality in global
economics.
AACSB: Application of Knowledge
Type: Concept
3) The portion of a firm’s environment that has to do with the
operating structure the firm encounters when globalizing is called the ________
environment.
1. A)
global
2. B)
physical
3. C) social
4. D)
task
5. E)
economic
Answer: D
Diff: 2
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.1 Understand the importance of quality in global
economics.
AACSB: Application of Knowledge
Type: Concept
4) The ________ environment facing globalizing corporations
refers to cultural factors such as language, business customs, customer
preferences, and patterns of communication.
1. A)
task
2. B)
social
3. C)
physical
4. D)
global
5. E)
economic
Answer: B
Diff: 2
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.1 Understand the importance of quality in global
economics.
AACSB: Application of Knowledge
Type: Concept
5) ________ produce their products and ship them
internationally.
1. A)
Exporters
2. B)
Licensors
3. C)
Franchisors
4. D)
Importers
5. E)
Retailers
Answer: A
Diff: 1
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.1 Understand the importance of quality in global
economics.
AACSB: Application of Knowledge
Type: Concept
6) By licensing, a U.S. firm can allow foreign firms to sell in
restricted markets while using the design of the original designer.
Answer: TRUE
Diff: 2
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.1 Understand the importance of quality in global
economics.
AACSB: Application of Knowledge
Type: Concept
7) Through licensing, firms are able to reach international
markets without having to establish international supply chains or marketing
arms.
Answer: TRUE
Diff: 2
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.1 Understand the importance of quality in global
economics.
AACSB: Application of Knowledge
Type: Concept
8) The benefits of licensing and partnering are that the
exporting firm does not have to globalize to make sales in
international markets.
Answer: TRUE
Diff: 2
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.1 Understand the importance of quality in global
economics.
AACSB: Application of Knowledge
Type: Concept
9) With growing economies in many parts of the world, firms need
to globalize to participate in these markets.
Answer: TRUE
Diff: 1
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.1 Understand the importance of quality in global
economics.
AACSB: Application of Knowledge
Type: Concept
10) The social environment of the firm has to do with the
operating structure that the firm encounters when globalizing.
Answer: FALSE
Diff: 2
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.1 Understand the importance of quality in global
economics.
AACSB: Application of Knowledge
Type: Concept
11) The physical environment facing globalizing corporations
refers to cultural factors such as language and business customs.
Answer: FALSE
Diff: 1
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.1 Understand the importance of quality in global
economics.
AACSB: Application of Knowledge
Type: Concept
12) Market diversity drives the need for culture-specific
research and development.
Answer: TRUE
Diff: 2
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.1 Understand the importance of quality in global
economics.
AACSB: Application of Knowledge
Type: Concept
13) Importers produce their products and ship them
internationally.
Answer: FALSE
Diff: 2
Learning Outcome: Discuss the total cost of quality and compare
the common methods of managing quality
LO: 3.1 Understand the importance of quality in global
economics.
AACSB: Application of Knowledge
Type: Concept
14) What is globalization?
Answer: Globalization means that a firm fundamentally changes
the nature of its business by establishing production and marketing facilities
in foreign countries. We refer to these firms as multinational corporations.
With growing economies in many parts of the world, such as Mexico, India,
Brazil, Eastern Europe, China, and Russia, firms need to globalize to
participate in these markets. However, there are effects of globalization that
firms often overlook. By globalizing, firms significantly change the physical
environment, the task environment, and the social environment in which they
operate.
Diff: 2
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.1 Understand the importance of quality in global
economics.
AACSB: Application of Knowledge
Type: Concept
15) Describe the differences between the task environment and
the social environment of a firm.
Answer: The task environment of the firm has to do with
the operating structure that the firm encounters when globalizing. In contrast,
the social environment facing globalizing corporations refers to cultural
factors such as language, business customs, customer preferences, and patterns
of communication.
Diff: 2
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.1 Understand the importance of quality in global
economics.
AACSB: Application of Knowledge
Type: Concept
16) Explain the role of exporters in international markets. What
are the difficulties they face?
Answer: Exporters produce their products and ship them
internationally, incurring high shipping costs but avoiding many of the
problems, such as loss of control associated with globalization. However,
success on a multinational scale may be more difficult to attain for exporters because
they never develop the marketing expertise and logistical capabilities
associated with entering foreign markets. Many times pure exporters are subject
to limitations that resident companies do not have in terms of import tariffs
and import restrictions.
Diff: 2
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.1 Understand the importance of quality in global
economics.
AACSB: Application of Knowledge
Type: Concept
17) Which of the following approaches to quality is influenced
by a culture of waste reduction due to limited natural resources and high
importing costs?
1. A)
the Japanese approach
2. B)
the European approach
3. C)
the Chinese approach
4. D)
the American approach
5. E)
the Russian approach
Answer: A
Diff: 2
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.2 Explain the role of culture in quality approaches.
AACSB: Application of Knowledge
Type: Concept
18) Which of the following quality approaches is influenced by a
culture of results and focuses on the benefits quality provides to the
bottom-line?
1. A)
the Japanese approach
2. B)
the European approach
3. C)
the Chinese approach
4. D)
the American approach
5. E)
the Russian approach
Answer: D
Diff: 2
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.2 Explain the role of culture in quality approaches.
AACSB: Application of Knowledge
Type: Concept
19) The ________ approach to quality is most sensitive to
employees and employee satisfaction as a result of strong unions.
1. A)
Japanese
2. B)
European
3. C)
Chinese
4. D)
American
5. E)
Russian
Answer: B
Diff: 2
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.2 Explain the role of culture in quality approaches.
AACSB: Application of Knowledge
Type: Concept
20) Group technology is utilized among which of the following
cultures as a quality method?
1. A)
Japanese
2. B) European
3. C)
Chinese
4. D)
American
5. E)
Russian
Answer: E
Diff: 2
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.2 Explain the role of culture in quality approaches.
AACSB: Application of Knowledge
Type: Concept
21) The European cultural approach to quality is based in waste
elimination and an ethic of consistency.
Answer: FALSE
Diff: 1
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.2 Explain the role of culture in quality approaches.
AACSB: Application of Knowledge
Type: Concept
22) Americans have a command-and-control approach to quality
based upon a culture of political and military business management practices.
Answer: TRUE
Diff: 1
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.2 Explain the role of culture in quality approaches.
AACSB: Application of Knowledge
Type: Concept
23) How does culture influence the Japanese approach to quality
management?
Answer: With the limited natural resources in Japan due to
the small size of its landmass, many raw materials are imported in to the
country at a premium cost. This creates a cultural ethic that appreciates
precious resources and is determined to reduce waste. Additionally, the culture
values consistency and awards those who conform to quality standards with the
Deming Prize, which is focused on process improvement and quality business
practices.
Diff: 2
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.2 Explain the role of culture in quality approaches.
AACSB: Application of Knowledge
Type: Concept
24) How do the Japanese and American approaches to quality
management differ? What factors have shaped those differences and what
evidences the differences in quality values?
Answer: The American approach to quality management is
results-oriented while the Japanese approach is process-oriented. The
differences are apparent in evaluating criteria of the American Baldrige Award
as opposed to the Japanese Deming prize as well. Economic factors such as high
export costs and the physical environment also play a role in Japan’s focus on
eliminating waste and valuing resources. Americans also have a social
environment that is customer-focused and that is reflected in its approach to
quality. Global, cultural, and environmental factors have shaped the
differences in approaches to quality management in Japan and America.
Diff: 2
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.2 Explain the role of culture in quality approaches.
AACSB: Application of Knowledge
Type: Synthesis
25) The ________ for quality was established in 1951 by the
Japanese Union of Scientists and Engineers.
1. A)
Deming Prize
2. B)
Juran Prize
3. C)
Ishikawa Prize
4. D)
Taguchi Prize
5. E)
Baldrige Prize
Answer: A
Diff: 1
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.3 Compare and contrast American, European, and
Japanese approaches to quality management.
AACSB: Application of Knowledge
Type: Concept
26) The Deming Prize is awarded to individuals and groups who
have contributed to the field of ________.
1. A)
lean manufacturing
2. B)
quality control
3. C)
sales management
4. D)
just-in-time production
5. E)
strategic planning
Answer: B
Diff: 2
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.3 Compare and contrast American, European, and
Japanese approaches to quality management.
AACSB: Application of Knowledge
Type: Concept
27) Which of the following is a category of the Deming Prize?
1. A)
information analysis
2. B)
workforce focus
3. C)
strategic planning
4. D)
partnerships and resources
5. E)
customer results
Answer: A
Diff: 2
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.3 Compare and contrast American, European, and
Japanese approaches to quality management.
AACSB: Application of Knowledge
Type: Concept
28) Which of the following is a category of the European Quality
Award?
1. A)
policy deployment
2. B)
operations focus
3. C)
information analysis
4. D)
partnerships and resources
5. E)
human resources development
Answer: D
Diff: 2
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.3 Compare and contrast American, European, and
Japanese approaches to quality management.
AACSB: Application of Knowledge
Type: Concept
29) The Deming Prize is awarded to individuals and groups who
have contributed to the field of quality control.
Answer: TRUE
Diff: 1
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.3 Compare and contrast American, European, and
Japanese approaches to quality management.
AACSB: Application of Knowledge
Type: Concept
30) Customer focus and workforce focus are categories of the
Deming Prize.
Answer: FALSE
Diff: 2
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.3 Compare and contrast American, European, and
Japanese approaches to quality management.
AACSB: Application of Knowledge
Type: Concept
31) Leadership and strategy are categories of the European
Quality Award.
Answer: TRUE
Diff: 2
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.3 Compare and contrast American, European, and
Japanese approaches to quality management.
AACSB: Application of Knowledge
Type: Concept
32) The highest level of the European Quality Award is the award
for the most accomplished applicant in a given year.
Answer: TRUE
Diff: 2
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.3 Compare and contrast American, European, and
Japanese approaches to quality management.
AACSB: Application of Knowledge
Type: Concept
33) The European Quality Award focuses on those things that lead
to customer service and improved products, whereas the Baldrige criterion
focuses on employee satisfaction as an outcome of the quality system.
Answer: FALSE
Diff: 2
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.3 Compare and contrast American, European, and
Japanese approaches to quality management.
AACSB: Application of Knowledge
Type: Concept
34) The model for the Baldrige consists of ________ interrelated
categories that compose the organizational system for performance.
1. A)
four
2. B)
five
3. C)
six
4. D)
seven
5. E)
eight
Answer: D
Diff: 1
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.4 Explain the Baldrige award process.
AACSB: Application of Knowledge
Type: Concept
35) The basis of the Baldrige model is ________.
1. A)
operations management
2. B)
information and analysis
3. C)
accounting and finance
4. D)
statistical process control
5. E)
Six Sigma
Answer: B
Diff: 2
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.4 Explain the Baldrige award process.
AACSB: Application of Knowledge
Type: Concept
36) Which of the following categories is not a
criterion for the Malcolm Baldrige Award?
1. A)
Internet competencies
2. B)
operations focus
3. C)
strategic planning
4. D)
business results
5. E)
leadership
Answer: A
Diff: 1
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.4 Explain the Baldrige award process.
AACSB: Application of Knowledge
Type: Concept
37) Which of the following Baldrige criteria is used to evaluate
the extent to which top management is personally involved in creating and
reinforcing goals, values, directions, and customer involvement?
1. A)
workforce focus
2. B)
leadership
3. C)
strategic planning
4. D)
operations focus
5. E)
business results
Answer: B
Diff: 2
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.4 Explain the Baldrige award process.
AACSB: Application of Knowledge
Type: Concept
38) Which of the following Baldrige criteria requires the applicant
to outline what the firm is doing to fulfill its responsibility as a corporate
citizen?
1. A)
business results
2. B)
operations focus
3. C)
strategic planning
4. D)
leadership
5. E)
customer focus
Answer: D
Diff: 2
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.4 Explain the Baldrige award process.
AACSB: Application of Knowledge
Type: Concept
39) Which of the following Baldrige criteria focuses on how a
firm assesses the relative importance of product or service features to the
customer?
1. A)
operations focus
2. B)
business results
3. C)
customer focus
4. D)
leadership
5. E)
strategic planning
Answer: C
Diff: 2
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.4 Explain the Baldrige award process.
AACSB: Application of Knowledge
Type: Concept
40) Which of the following Baldrige criteria involves developing
an internal environment conducive to full participation and personal growth, including
human resources development?
1. A)
workforce focus
2. B)
strategic planning
3. C)
measurement, analysis, and knowledge management
4. D)
customer focus
5. E)
leadership
Answer: A
Diff: 2
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.4 Explain the Baldrige award process.
AACSB: Application of Knowledge
Type: Concept
41) Which of the following Baldrige criteria examines key
aspects such as customer focus in design, work system, design for services and
products, support processes, and processes relating to partners?
1. A)
workforce focus
2. B)
strategic planning
3. C)
measurement, analysis, and knowledge management
4. D)
business results
5. E)
operations focus
Answer: E
Diff: 2
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.4 Explain the Baldrige award process.
AACSB: Application of Knowledge
Type: Concept
42) What is the first step for a firm applying for the Baldrige
award?
1. A) a
review of financial statements
2. B)
quality assessment
3. C) a
site-visit by examiners
4. D)
eligibility determination
5. E)
consensus review
Answer: D
Diff: 2
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.4 Explain the Baldrige award process.
AACSB: Application of Knowledge
Type: Concept
43) What is the main purpose of a Baldrige site visit?
1. A) to
introduce the selection committee to the top management team of the contending
firm
2. B) to
formally congratulate an award winner
3. C) to
verify and clarify those portions of the Baldrige application having the
greatest impact on the judges’ scores
4. D) to
discuss the outcome of the evaluation process
5. E) to
collect additional information on each of the seven evaluation criteria
Answer: C
Diff: 3
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.4 Explain the Baldrige award process.
AACSB: Application of Knowledge
Type: Concept
44) What is the major reason for the decrease in the number of
applicants for the Malcolm Baldrige Award?
1. A)
decline in the prestige associated with the award
2. B)
high application fee
3. C)
difficulty associated with winning the award
4. D)
lack of legitimacy of the award criteria
5. E)
low focus on quality
Answer: C
Diff: 2
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.4 Explain the Baldrige award process.
AACSB: Application of Knowledge
Type: Concept
45) In the ________ approach, the scores required to win the
state awards are lower than those for the national awards.
1. A)
multilevel
2. B)
Baldrige quality
3. C)
Baldrige-lite
4. D)
full-Baldrige
5. E)
consensus
Answer: D
Diff: 2
Learning Outcome: Discuss the total cost of quality and compare
the common methods of managing quality
LO: 3.4 Explain the Baldrige award process.
AACSB: Application of Knowledge
Type: Concept
46) The ________ approach uses the Baldrige criteria but with a
simplified process or application.
1. A) Baldrige
quality
2. B)
consensus
3. C)
full-Baldrige
4. D)
Baldrige-lite
5. E)
multilevel
Answer: D
Diff: 1
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.4 Explain the Baldrige award process.
AACSB: Application of Knowledge
Type: Concept
47) In the multilevel approach, the top level includes the
________ approach.
1. A)
consensus
2. B)
full-Baldrige
3. C)
strategic
4. D)
Baldrige quality
5. E)
Baldrige-lite
Answer: B
Diff: 2
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.4 Explain the Baldrige award process.
AACSB: Application of Knowledge
Type: Concept
48) In the multilevel approach, the second level includes the
________ approach.
1. A)
consensus
2. B)
full-Baldrige
3. C)
strategic
4. D)
Baldrige quality
5. E)
Baldrige-lite
Answer: E
Diff: 2
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.4 Explain the Baldrige award process.
AACSB: Application of Knowledge
Type: Concept
49) Which of the following is a category of the Baldrige Award?
1. A)
policy development
2. B)
information analysis
3. C)
workforce focus
4. D)
partnerships and resources
5. E)
management system
Answer: C
Diff: 2
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.4 Explain the Baldrige award process.
AACSB: Application of Knowledge
Type: Concept
50) The Baldrige criteria are nonprescriptive and adaptable.
Answer: TRUE
Diff: 2
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.4 Explain the Baldrige award process.
AACSB: Application of Knowledge
Type: Concept
51) The Baldrige criteria specify which tools, techniques, or
organization a company should use to improve.
Answer: FALSE
Diff: 2
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.4 Explain the Baldrige award process.
AACSB: Application of Knowledge
Type: Concept
52) The Baldrige criterion that evaluates the extent to which
top management is personally involved in creating and reinforcing goals is the
leadership category.
Answer: TRUE
Diff: 2
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.4 Explain the Baldrige award process.
AACSB: Application of Knowledge
Type: Concept
53) Customer focus involves developing an internal environment
conducive to full participation and personal growth, including human resources
development.
Answer: FALSE
Diff: 2
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.4 Explain the Baldrige award process.
AACSB: Application of Knowledge
Type: Concept
54) The main purpose of a Baldrige site visit is to collect
additional information on each of the seven evaluation criteria.
Answer: FALSE
Diff: 2
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.4 Explain the Baldrige award process.
AACSB: Application of Knowledge
Type: Concept
55) The scoring summary in the feedback report is a synthesis of
the most important strengths and areas for improvement for each of the seven
Baldrige categories.
Answer: TRUE
Diff: 2
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.4 Explain the Baldrige award process.
AACSB: Application of Knowledge
Type: Concept
56) The examiners for the Baldrige Award demonstrate their
commitment to its core values by being willing to give up approximately 10% of
their year to serve on the board with no compensation.
Answer: TRUE
Diff: 1
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.4 Explain the Baldrige award process.
AACSB: Application of Knowledge
Type: Concept
57) In the full-Baldrige approach, the scores required to win
the state awards are higher than those for the national awards.
Answer: FALSE
Diff: 2
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.4 Explain the Baldrige award process.
AACSB: Application of Knowledge
Type: Concept
58) The Baldrige-lite approach uses the Baldrige criteria but
with a simplified process or application.
Answer: TRUE
Diff: 2
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.4 Explain the Baldrige award process.
AACSB: Application of Knowledge
Type: Concept
59) Information analysis is a category of the Baldrige Award.
Answer: FALSE
Diff: 2
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.4 Explain the Baldrige award process.
AACSB: Application of Knowledge
Type: Concept
60) Describe the key characteristics of the Malcolm Baldrige
Award.
Answer: The criteria focus on business results. Companies
must show outstanding results in areas such as financial performance, customer
satisfaction, customer retention, product performance, service performance,
productivity, supplier performance, and public citizenship. The Baldrige
criteria are nonprescriptive and adaptable. Although the focus of the Baldrige
is on results, the means for obtaining these results are not prescribed. The
criteria support company-wide alignment of goals and processes, and permit
goal-based diagnosis.
Diff: 1
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.4 Explain the Baldrige award process.
AACSB: Application of Knowledge
Type: Concept
61) Explain the seven interrelated categories of the Baldrige
Award that compose the organizational system for performance.
Answer: Category 1 provides the award criteria for
leadership. This category is used to evaluate the extent to which top
management is personally involved in creating and reinforcing goals, values,
directions, customer involvement, and a variety of other issues.
Category 2 focuses on how the company establishes strategic
directions and how it sets its tactical action plans to implement the strategic
plans.
Category 3 addresses customer focus. To be successful in serving
the customer, firms must understand the product and service attributes that are
important to the customer.
Category 4, measurement, analysis, and knowledge management,
relates to the firm’s selection, management, and use of information to support
company processes and to improve firm performance.
Category 5 deals with the workforce focus. The workforce is to
be enabled to develop and use its full potential, aligned with company
objectives.
Category 6 examines key aspects of operations focus. These
aspects include customer focus in design, work system, design for services and
products, support processes, and processes relating to partners.
Category 7 documents the results of the other categories and
requires a series of tables and graphs that demonstrate the operational and
business results of the firm.
Diff: 2
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.4 Explain the Baldrige award process.
AACSB: Application of Knowledge
Type: Concept
62) Explain the term “Baldrige-qualified.”
Answer: For the firm applying for the Baldrige award, the
first step is eligibility determination. Once eligibility is established, the
applicant sends the completed application to NIST. The application is then subjected
to first-round review by Baldrige examiners. During this review, examiners read
and score the applications. Judges then review the scoring to determine which
applicants will continue to consensus. During the consensus phase, between five
and eight examiners who have scored the application participate in a conference
call to determine a consensus score for each of the scoring items.
Once consensus is reached, judges receive a consensus report
from the senior examiner leading the examiner team. Judges then make a
site-visit determination. At this point, applicants scoring sufficiently high
are granted a site visit. In the past, simply the granting of a Baldrige site
visit has been cited as evidence of high-quality processes. These firms
sometimes refer to themselves as “Baldrige qualified.”
Diff: 2
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.4 Explain the Baldrige award process.
AACSB: Application of Knowledge
Type: Concept
63) Differentiate between the full-Baldrige approach and the
Baldrige-lite approach.
Answer: A review of the different state award programs
reveals three categories of approaches to state awards. The first approach is
the full-Baldrige approach. In these states, the Baldrige criteria have been
adopted, and firms apply using the Baldrige criteria. In these cases, the
criteria are used, but the scores required to win the state awards are lower
than those for the national awards.
An approach that some other states have taken is the
Baldrige-lite approach. This approach uses the Baldrige criteria but with a
simplified process and/or application.
Diff: 2
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.4 Explain the Baldrige award process.
AACSB: Application of Knowledge
Type: Concept
64) The first view of lean manufacturing is a philosophical view
of ________.
1. A)
strategic planning
2. B)
waste reduction
3. C)
inventory control
4. D)
product development
5. E) reengineering
Answer: B
Diff: 2
Learning Outcome: Describe the advantages and
disadvantages of various production strategies such as lean, Theory of
Constraints, JIT, and Six Sigma
LO: 3.5 Communicate the Japanese approach to lean and
total quality control.
AACSB: Application of Knowledge
Type: Concept
65) A productive system whose focus is on optimizing processes
through the philosophy of continual improvement is called ________.
1. A)
lean manufacturing
2. B)
reengineering
3. C)
benchmarking
4. D)
just-in-time production
5. E)
statistical process control
Answer: A
Diff: 2
Learning Outcome: Describe the advantages and
disadvantages of various production strategies such as lean, Theory of
Constraints, JIT, and Six Sigma
LO: 3.5 Communicate the Japanese approach to lean and
total quality control.
AACSB: Application of Knowledge
Type: Concept
66) ________ was fundamental in helping Toyota reduce waste.
1. A)
Genichi Taguchi
2. B)
Kaoru Ishikawa
3. C)
Shigeo Shingo
4. D)
Armand Feigenbaum
5. E)
Philip Crosby
Answer: C
Diff: 2
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.5 Communicate the Japanese approach to lean and
total quality control.
AACSB: Application of Knowledge
Type: Concept
67) Which of the following is not one of
Shingo’s seven wastes?
1. A)
waste of stocks
2. B)
waste of funds
3. C)
waste of motion
4. D)
waste of transportation
5. E)
waste of waiting
Answer: B
Diff: 2
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.5 Communicate the Japanese approach to lean and
total quality control.
AACSB: Application of Knowledge
Type: Concept
68) With ________ inspection, all work is inspected at each
stage of the manufacturing process, and the workers inspect their own work.
1. A)
in-process
2. B)
multilevel
3. C)
dynamic
4. D)
continuous
5. E)
line-stop
Answer: A
Diff: 2
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.5 Communicate the Japanese approach to lean and
total quality control.
AACSB: Application of Knowledge
Type: Concept
69) The N=2 technique is an alternative to ________.
1. A)
in-process inspection
2. B)
acceptance sampling
3. C)
statistical process control
4. D) benchmarking
5. E)
quality control
Answer: B
Diff: 1
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.5 Communicate the Japanese approach to lean and
total quality control.
AACSB: Application of Knowledge
Type: Concept
70) ________ means that all departments are involved in quality.
1. A)
Vertical deployment
2. B)
Cross-functional deployment
3. C)
Horizontal deployment
4. D)
Multilevel deployment
5. E)
Parallel deployment
Answer: C
Diff: 2
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.5 Communicate the Japanese approach to lean and
total quality control.
AACSB: Application of Knowledge
Type: Concept
71) ________ means that all levels of management and workers are
actively involved in quality.
1. A)
Vertical deployment
2. B)
Cross-functional deployment
3. C)
Horizontal deployment
4. D)
Multilevel deployment
5. E)
Parallel deployment
Answer: A
Diff: 2
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.5 Communicate the Japanese approach to lean and
total quality control.
AACSB: Application of Knowledge
Type: Concept
72) With respect to the five S’s, organizing by getting rid of
the unnecessary files, forms, and other materials is called ________.
1. A)
seiri
2. B)
seiton
3. C)
seiso
4. D)
seiketsu
5. E)
shetsuke
Answer: A
Diff: 2
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.5 Communicate the Japanese approach to lean and
total quality control.
AACSB: Application of Knowledge
Type: Concept
73) With respect to the five S’s, neatness that is achieved by
straightening offices and work areas is called ________.
1. A)
seiri
2. B)
seiton
3. C)
seiso
4. D)
seiketsu
5. E)
shetsuke
Answer: B
Diff: 2
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.5 Communicate the Japanese approach to lean and
total quality control.
AACSB: Application of Knowledge
Type: Concept
74) With respect to the five S’s, cleaning plant and equipment
to eliminate dirtiness that can hide or obscure problems is called ________.
1. A)
seiri
2. B)
seiton
3. C)
seiso
4. D)
seiketsu
5. E)
shetsuke
Answer: C
Diff: 2
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.5 Communicate the Japanese approach to lean and
total quality control.
AACSB: Application of Knowledge
Type: Concept
75) With respect to the five S’s, standardizing locations for
tools, files, equipment, and all other materials is called ________.
1. A)
seiri
2. B)
seiton
3. C)
seiso
4. D)
seiketsu
5. E)
shetsuke
Answer: D
Diff: 2
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.5 Communicate the Japanese approach to lean and
total quality control.
AACSB: Application of Knowledge
Type: Concept
76) With respect to the five S’s, discipline in maintaining the
prior four S’s is called ________.
1. A)
seiri
2. B)
seiton
3. C)
seiso
4. D)
seiketsu
5. E)
shetsuke
Answer: E
Diff: 2
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.5 Communicate the Japanese approach to lean and
total quality control.
AACSB: Application of Knowledge
Type: Concept
77) ________ are natural work teams made up of workers who are
empowered to improve work processes and are used by Japanese companies to
involve employees in improving processes and process capability.
1. A)
Empowerment task forces
2. B)
Cross-functional teams
3. C)
Horizontal task forces
4. D)
Vertical task forces
5. E)
Quality circles
Answer: E
Diff: 1
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.5 Communicate the Japanese approach to lean and
total quality control.
AACSB: Application of Knowledge
Type: Concept
78) The idea behind ________ is that the worst condition a
machine should ever be in is on the day you purchase the machine.
1. A)
quality circles
2. B)
vertical deployment
3. C)
line-stop authority
4. D)
horizontal deployment
5. E)
preventive maintenance
Answer: E
Diff: 2
Learning Outcome: Discuss the total cost of quality and
compare the common methods of managing quality
LO: 3.5 Communicate the Japanese approach to lean and
total quality control.
AACSB: Application of Knowledge
Type: Concept
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