Module 03 Review Questions(1)

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Feb 20, 2024

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OMBA 6944 Operations and Supply Chain Management Review Questions Module 3 1. When a process fails to satisfy a customer: A. it is quite often the customer's fault. B. it is considered a defect. C. it is time to reengineer the process. D. it is usually half the customer's fault and half the company's fault. 2. Which of the following would be considered a prevention cost of quality? A. inspecting incoming raw materials B. training workers to perform their jobs C. issuing a recall of defective product before another customer is injured D. performing a 24 hour burn-in on every item produced to make sure it works before it is shipped 3. Which of the following would be considered an appraisal cost of quality? A. training workers to perform their jobs B. purchasing better tools for workers to perform their jobs C. repairing an item under the warranty D. running a functional test on each item before it is boxed for shipment 4. A prime example of an internal failure cost is the: A. labor cost associated with inspecting every item produced. B. labor cost associated with repairing an item returned under warranty. C. material cost of a piece of stock metal that has had too large a hole drilled in it. D. material cost of the paint applied to the case of a finished unit. 5. Which of the following is the cost of quality classification for costs such as scrap, rework, or repair? A. Appraisal costs B. Prevention costs C. External failure costs D. Internal failure costs
6. A professor, dissatisfied with a product he's purchased, bad mouths the product to his class, resulting in decreased market share (since the students believe everything he tells them). The manufacturer suffers: A. an internal failure cost. B. an external failure cost. C. a prevention cost. D. an appraisal cost. 7. Improving quality seems to be a strategic weapon in gaining market share. However, improving quality entails allocation of resources and effort. As greater effort is expended to stop defects before they occur, which one of the following costs increases? A. prevention costs B. appraisal costs C. internal failure costs D. external failure costs 8. Which one of the following is a consequence of external failures? A. increased returns B. increased inventory costs C. increased productivity D. decreased lead time 9. Jose is the supervisor of a laboratory. One of his testing machines seems to be producing different results for the same sample. To make sure he is delivering correct results, Jose uses a second machine to check the results of the first. This type of quality failure is known as A. external failure B. internal failure C. appraisal D. prevention 10. Which of the following is the cost of quality classification for costs such as inspection, testing, and other tasks to ensure that the product or process is acceptable? A. Appraisal costs B. Prevention costs C. External failure costs D. Internal failure costs 11. Increasing the quality level by better products and processes may: A. allow a company to raise the price of the product. B. move a company closer to a competitive priority of price.
C. reduce prevention costs. D. ensure that the trade-off between prevention costs and other costs of poor quality is worthwhile. 12. Which one of the following is considered to be an appraisal cost? A. cost of quality audits B. cost of supplier programs C. cost of rework D. cost of process design 13. Which one of the following statements is true? A. Appraisal costs decrease as quality level decreases. B. Appraisal costs increase as the variation of output increases. C. Appraisal costs increase as the variation of output decreases. D. Appraisal costs increase as quality level increases. 14. Which one of the following is part of prevention costs? A. the costs of quality audits B. the costs resulting from scrap C. the costs of improving process design and product design D. the costs of lawsuits from injury from use of the product 15. At which of the following steps will the cost of detecting product defects be the highest? A. customer B. process C. final testing D. raw material 16. Which of these elements is not part of the Deming Wheel? A. plan B. design C. check D. act 17. When considering the plan-do-check-act cycle for problem solving, data collection to measure the improvements in the process occurs in the ________ step. A. plan B. do C. check D. act
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