Title: Quality of Goods and Services
Course: Demo 1

Q: ________ refers to the characteristics of a product or service that bear on its ability to satisfy stated or implied needs.
- Service
- Process
- Quality
A: Quality

Q: A company follows the total quality management (TQM) principles by focusing on customer satisfaction, employee involvement, and:
- the supply chain
- board of directors involvement
- continuous improvement
A: continuous improvement

Q: Six Sigma practices:
- emphasize a clear focus on achieving quantifiable financial returns
- support continuous efforts at improvement involving everyone at the company
- determine individuals best suited for success in a given job role or function
A: emphasize a clear focus on achieving quantifiable financial returns; support continuous efforts at improvement involving everyone at the company

Q: The goals of total quality management (TQM) are to:
- deliver quality goods and services
- satisfy customers’ needs
- help the company remain competitive
A: deliver quality goods and services; satisfy customers’ needs; help the company remain competitive

Q: A life-preserver manufacturer has a dedicated phone number that collects feedback from customers and employees on how to improve their products. Each month the management staff reads through the phone feedback transcripts and employee suggestions and chooses what to implement. This is an example of:
- benchmarking
- delegation
- continuous improvement
A: continuous improvement

Q: To identify areas for improvement, companies use a technique called ________, which monitors quality by testing samples of products to determine if they meets predetermined specifications.
- SWOT analysis
- best out of three practice
- statistical process control
A: statistical process control

Q: The International Standards Organization (ISO):
- established the ISO 9000 family of international standards for quality management and the ISO 14000 family of international standards for environmental management
- has become an internationally recognized symbol of quality management. ISO certification is almost essential to be competitive in the global marketplace
- provides guidelines for reducing the costs of defective goods
A: established the ISO 9000 family of international standards for quality management and the ISO 14000 family of international standards for environmental management; has become an internationally recognized symbol of quality management. ISO certification is almost essential to be competitive in the global marketplace

Q: The Six Sigma cost of quality (COQ) determines the financial return on a quality initiative. What factors are used to calculate the COQ?
- cost of failure
- cost of prevention
- cost of research and development
A: cost of failure; cost of prevention

Q: The ________ in the Sigma Six cost-of-quality (COQ) equation includes the internal costs before the product is sold (like waste and re-work).
- cost of prevention
- cost of manufacturing
- cost of failure
A: cost of failure

Q: The cost of prevention in the Sigma Six cost-of-quality (COQ) equation includes:
- cost of public relations campaigns on quality
- cost of legal consultation
- cost to verify quality practices
A: cost to verify quality practices

Q: The Baldrige National Quality Award is given to U.S. companies and individuals for their contribution to quality. The criteria used to determine award recipients include:
- workforce focus
- process management
- strategic planning
A: workforce focus; process management; strategic planning

Q: Using outside vendors to manufacture entire products, components or provide services is called ________.
- resource alignment
- manufacturing strategy
- outsourcing
A: outsourcing

Q: Which possible situations illustrate when outsourcing may be the best option for an organization?
- an organization does not have the skills or expertise in an area, product or component
- labor wages are high in the company’s country
- the organization may not have an established relationship with suppliers or distributors
A: an organization does not have the skills or expertise in an area, product or component; labor wages are high in the company’s country; the organization may not have an established relationship with suppliers or distributors

Q: A manufacturer of children’s toys outsourced its production of a line of children’s building blocks to a Chinese factory. Upon receipt of the building blocks from the factory, they were sampled and tested against quality standards and appeared to be fine. Therefore, they were boxed and shipped to retail toy stores. A few weeks later customers were calling customer service complaining that the blocks were falling apart and making their children sick. The poor quality of this product could mean:
- lawsuits against the manufacturer
- retail stores will drop the manufacturer’s products
- an increase in revenue for the manufacturer
A: lawsuits against the manufacturer; retail stores will drop the manufacturer’s products