Chapter 7-15 questions PDF

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Chapter 7-15 practical questions including true/false and multiple choices questions...

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Chapter 08 Supplier Quality Management In recent years, the concept of quality has changed radically from meeting customer requirements or expectations to exceeding them. true Within its supply chains, supply management does not merely buy parts or services from suppliers - it buys (and sometimes must help manage and improve) current and anticipated supplier capabilities that will result in quality products and services. true Buyers should focus only on a supplier's physical output (the end result), never on the supporting inputs, systems, and processes that created that output. false It is difficult to maintain a trusting and collaborative relationship and receive quality goods and services when suppliers do not enjoy working with the buying organization. true A buyer cannot realistically expect the highest levels of supplier performance when the supplier must respond to frequent or short lead time changes. true Reliance on a firm's suppliers for raw materials, components, subassemblies, and even finished products is steadily decreasing. false One of the primary causes of nonconforming supplier quality involves inconsistent communication and the resultant misunderstanding of specifications, expectations, and requirements between supply chain members. true Most specifications are precise and succinct. false Many suppliers are hesitant to challenge excessive specifications for fear of losing the bid. true Deming's quality philosophy has often been criticized because it does not prescribe specific firm-level actions and programs for management to follow. true Deming's 14 Points constitute an à la carte menu of quality improvement activities, from which a company can pick and choose only those with which they agree. false The focal point of the Deming philosophy is that the entire organization should be focused on satisfying customer needs, whether the customer is internal or external. true Quality is only for manufacturing. false Deming indicates that the only proper way of dealing with defects is to inspect for and remove them from the process. true The lowest purchase price of an item may be important in the short run for supply management but may cause increased costs somewhere else in the production system

over the long run: excessive scrap and rework, defective products, greater warranty claims, and so on. true Working with more suppliers allows the supply manager to concentrate on building trusting, collaborative relationships and supplier loyalty while improving quality in purchased goods and services. false The TQM-focused organization must look at increasing process variation and seeking innovation in both product and process. false There is a minimal gap between real leadership and what we traditionally think of as management or supervision. false Slogans, signs, and posters are highly effective in changing worker behavior because they assume that most, if not all, quality problems are due to human behavior. false Designed-in systemic variation is a managerial concern, not a labor issue. true The performance appraisal systems in most organizations create real barriers to pride in workmanship as they promote competitive behavior and quantity of work over quality. true Even when given the proper climate in which to work, most people do not want to do a good job. false A grassroots TQM effort that emanates from the lower levels of the organization is doomed to failure without active and visible top management commitment and support. true The objective of supplier certification is to ensure that nonconforming items are not created or do not leave a supplier's facility. true Supplier certification applies only to entire companies or products, rather than a specific part, process, or site. false The extensive use of corrective action requests supports prevention of nonconforming defects. true Perhaps the most dramatic difference between traditional quality control methods and total quality management thinking involves a shift from a process orientation to a product orientation false It is far less expensive and more efficient in the long run to avoid generating the defect in the first place than it is to inspect for it once it is created. true An emphasis on finished product rather than process demands that a supplier provide evidence of its process capability to the buyer on an ongoing, regular basis. false

To be considered capable, the outputs from a process must fall outside upper and lower specification limits. false One property of normally distributed data is that 99.7 percent of all possible observations of process output occur within plus-or-minus standard deviations of the process mean. false A process that is stable and in control (i.e., no special and correctable causes of variation) can be expected to produce virtually all of its output within its natural tolerance limits. true The Cpk value is always larger than the Cp index. false According to Genichi Taguchi, any deviation from a target value carries with it some level of opportunity loss due to scrap, rework, and customer dissatisfaction. true Inconsistency is the enemy of total quality. true In many respects, the cost of quality should actually be considered as the cost of "poor quality." true Because of the nature of many cost accounting systems, quality costs are rarely aggregated into various overhead accounts, which would mask their real impact on the finances and operations of a company. false All delivery activities in a process can be considered wasteful. false Once a firm fully rationalizes and optimizes its supply base, improvement will occur primarily by developing the capabilities of existing suppliers rather than by switching suppliers on a large scale. true Companies that are unable to commit the necessary resources to assess or certify supplier quality on their own will never accept ISO 9000:2008 registration as proxy evidence of a supplier's quality management capability. false ISO 9000:2008 follows a product-based approach to quality management that stresses planning, acting, analyzing results, and making improvements. true Suppliers that earn ISO 9000:2008 registration typically demonstrate lower levels of quality than those suppliers that are not registered. false ISO 14000:2004 does not build on existing governmental regulations, establish emissions and pollution levels, or detail any specific testing methods. true The MBNQA is a competition and implies that a winning organization excels not only in quality management but also in quality achievement.

true It can take only a few months for a company to adequately develop a quality management system that is competitive for the MBNQA. false A supplier quality manual may delineate the maximum process required for the supplier regarding inspections, use of statistical process control, continuous improvement, testing, sample evaluations, performance improvement, and the like. false A comprehensive supplier quality manual does not need to describe the supplier selection and evaluation processes. false According to Armand Fiegenbaum, ____ is the total composite of product and service characteristics of marketing, engineering, manufacturing, and maintenance through which the product or service in use will meet or exceed the expectations of the customer. Quality ____ represents the ability to meet or exceed current and future customer expectations or requirements within critical performance areas on a consistent basis. Supplier quality Which of the following is not one of the expectations that suppliers have in a typical supply chain relationship? Having the buyer co-locate its buying, engineering, and quality staffs into a supplier's facility. The average North American manufacturing firm spends ____ of its sales dollar on purchased goods and services. 55% The ____ the proportion of the final product that suppliers provide, the ____ the impact they will have on overall product cost and quality. larger....greater All of the following are factors that influence how much attention supply management should commit to managing supplier quality except ____. the distance between the supplier and buyer facilities Which of the following is not one of the eight key principles of total quality management? Inspect for quality at the end of the production line. Which of the following is not one of the eight key principles of total quality management? Stress subjective rather than objective analysis. Which of the following is not one of the eight key principles of total quality management? Focus on output rather than process. Which of the following is one of the dimensions used in developing a clear understanding of the buyer's expectations and requirements? The ability of the buying company to succinctly identify, clearly define, quantify, or specify its technical and sourcing requirements. Which of the following is not one of the unique features of Deming's philosophy? Interacting parts of a system must be treated individually, not as a whole. Which of the following is not one of Deming's 14 points? Utilize fear to motive workers. . Which of the following is not one of Deming's 14 points?

Utilize numerical quotas and measurement by objective to motivate management. Which of the following is not one of Deming's 14 points? Optimize the efforts of individuals working alone. ____ means continuous improvement. Kaizen The concept of ____ consists of rework and disposal efforts. the hidden factory Which of the following is false concerning Deming's philosophy on fear in the workplace? Fear-free organizations are very common. Which of the following is false concerning Deming's philosophy on numerical quotas and measurement by objective? Output standards fully support TQM improvements and other quality initiatives. ____ occurs whenever value is added to a product or service as it moves through transformation processes in the supply chain. Quality at the source All of the following are positive results from early supplier design involvement except ____. longer lead-times in order to find and fix product defects before they get to the customer ____ is the avoidance of nonconformance in products and services by not allowing errors or defects to occur in the first place. Prevention A/An ____ program is the formal process of verifying, usually through an intensive crossfunctional site audit, that a supplier's processes and methods produce consistent and conforming quality. supplier certification ____ is the ability of a process to generate outputs that meet engineering specifications or customer requirements and refers to the normal behavior of a process when operating in a state of statistical control. Process capability The ____ process capability index quantifies the relationship between the process's natural tolerance limits and the product's specifications using a two-sided approach. Cp The ____ process capability index does not adequately account for situations where the process is not centered on the nominal specification target value. Cp A/An ____ is designed to provide information about the performance of the process under stable operating conditions, that is, when no special causes of variation are present. process capability study According to Philip Crosby, the only performance standard that defines total quality is ____, which he defined as conformance to requirements. zero defects ____ include the direct costs of measuring quality, specifically checking for possible defects. Appraisal costs ____ occur before the product or service is provided. Internal failure costs ____ are incurred following production or after the customer takes possession. External failure costs

____ are costs incurred when production processes are designed or modified to prevent defects from occurring in the first place. Prevention costs All of the following are examples of appraisal costs except ____. maintenance of a quality management system Which of the following is not an example of an internal failure cost? Equipment calibration. All of the following are examples of external failure costs except ____. quality planning Which of the following is not an example of a prevention cost? Incoming material inspections. In ____, there is an intense focus on identifying and eliminating the common causes of waste that add cost, time, and effort to the product or service while not adding value to the customer. the Honda BP process Which of the following is not one of the seven wastes identified by the Honda BP process? overmarketing ____ is the organized and systematic study of every element of cost in a part, material, process, or service to ensure that it fulfills its design function at the lowest possible total cost. VA/VE Which of the following is not one of the five elements in the Six Sigma performance improvement model? A(ccess). To remain current, ISO 9000:2008 registration must be accomplished every ____. 3 years In ISO 9000:2008, (the) ____ consists of a quality manual, related procedures, and work instructions. quality management system Which of the following is not one of the benefits to the buyer of a supplier achieving ISO 9000:2008 registration? The supplier may develop interest from other buyers wanting to do business with it. The ____ series of standards, originally established in 1993, are designed to promote environmental protection awareness and protection, as well as pollution prevention. ISO 14000:2004 ____ is a competition and implies that a winning organization excels not only in quality management but also in quality achievement. MBNQA ____ is the most basic and important tenet of the MBNQA criteria. Continuous improvement An effective supplier quality manual will contain all of the following except ____. approved marketing expenses ____ refer(s) to the set of purposes, principles, and rules of action that guide an organization. Policy ____ refer(s) to standard operating procedures along with any rules and regulations. Rules of action Which of the following is not an advantage of written and implied policies? Policies are easy to communicate throughout an organization.

Which of the following is not a disadvantage of written and implied policies? Personnel only follow policies to ingratiate themselves with executive management. All of the following are characteristics of effective policies except ____. highly detailed and written. Policies to define the role of purchasing do all of the following except ____. define appropriate buyer-supplier relationships Which of the following is not a policy defining the conduct of purchasing personnel? Mileage reimbursement policy. ____ occurs when suppliers are pressured to purchase the buyer's products or services as a condition of securing a purchase contract. Reciprocity Examples of irregular dealings with suppliers include all of the following except ____. accepting business lunches before a contract is negotiated All of the following are examples of problem factors that confront minority suppliers except ____. preference for bidding on government contracts Which of the following is not a best practice for inclusion in any minority supplier development initiative? Ensure that all minority suppliers are located nearby the organization's facilities. Which of the following is not one of the principles that support positive buyer-supplier relationships? Providing engineering and manufacturing technical assistance. All of the following are examples of elements that must be part of an environmental management system required by the ISO 14000 certification process except ____. provide evidence of financial stability Which of the following is not an example of typical charge-back costs associated with supplier responsibility for defective material shipments? Sales, general, and administrative costs. A/An ____ is an operating instruction detailing functional duties or tasks. procedure Which of the following is not true concerning the purposes of a procedure manual? The manual outlines the broad set of purposes, principles, and rules of action that guide an organization. All of the following are examples of topics discussed in legal contract procedures except ____. how to conduct a supplier evaluation Provide a working definition of supplier quality management Inspections Use of statistical process control Continuous improvement Testing Sample evaluations Performance improvement Identify the factors that influence supply management's role in managing supplier quality

Ability of supplier to affect buyer's total quality Resources available to support supplier quality management and improvement Ability of buying firm to practice world-class quality Link the principles of total quality management to supply management practices Define quality in terms of customers and their requirements Deming's 14 Points Pursue quality at the source Stress objective rather than subjective analysis Emphasize prevention rather than detection of defects Identify the basic principles of Six Sigma quality Proven quality principles and techniques Virtually error-free performance Expressed as 3.4 defects per million opportunities (DPMO) Increasing customer expectations Focus on defect prevention, cycle time reduction, and cost savings Use of Six Sigma Black Belts Identify how the Malcolm Baldrige National Quality Award, ISO 9000:2000, and ISO 14000 can help assess and improve supply quality systems and performance Business results, Process management, Human resource focus, Information and analysis, Customer and market focus, Strategic planning, Leadership ISO 14000 Fewer pollutants generated Reduced liability risk Improved regulatory compliance Better public and community relations ISO 9000:beyond Supplier assumes responsibility for meeting ISO 9000:2008 standards and paying own registration fees Supplier demonstrates higher quality Buyers have immediate confirmation of supplier's registration May substitute for variety of individual buyer certification programs What Is Supplier Quality? Ability to meet or exceed current and future customer expectations or requirements within critical performance areas on consistent basis Keys to supplier quality Why Be Concerned with Supplier Quality? Supplier impact on quality Continuous improvement requirements Outsourcing of purchase requirements Quality: The Customer's Perspective Nonconforming supplier quality is often due to inconsistent communication and resultant misunderstanding of specifications, expectations, and requirements within supply chain How to developed Clarity?

Ability of buying company to succinctly identify, clearly define, quantify, or specify its technical and sourcing requirements Buyer's ability and initiative to effectively communicate these requirements to supplier Name five out of fourteen Deming Points? Create a vision and demonstrate commitment Learn the new philosophy Understand inspection Stop making decisions purely on the basis of price Improve constantly and forever Summary of Deming's Philosophy Psychology helps manager understand employees and customers, as well as interactions between people Intrinsic motivation is more powerful than extrinsic motivation Predictions must be grounded in theory which helps to understand cause-and-effect relationships Quality at the Source Evaluate key value-adding points in process where defects could occur, including supplier facilities Product and process design Early supplier design involvement (ESDI) Prevention of Nonconformance Need for process consistency and reduced variation Reduce reliance on appraisal, inspection, and detection activities Non-value-adding activities Focus on Process, Not on Output Move from product orientation to process orientation Quality processes quality output Structured, companywide supplier evaluation and selection system Focusing on Sample Inspections Did supplier use same process, methods, and materials that will be used in normal production? Or was prototype made under controlled laboratory conditions? Did supplier or subcontractor actually produce sample? Basics of Process Capability Ability of process to generate outputs that meet engineering specifications or customer requirements Must be in state of statistical control Output must fall between pre-established upper/lower specification limits Striving for Zero Defects Con...