Chapter 18 Flashcards
A product’s quality is determined by its:
durability, reliability, and serviceability
The three principles that characterize TQM are continuous improvement, teamwork, and:
c. customer focus and satisfaction
__________ is a deviation in the form, condition, or appearance of a product from the quality standard for that product.
c. Variation
The term __________ refers to restoring customer satisfaction to strongly dissatisfied customers.
service recovery
When a manufacturer makes a product continuously, it is using:
continuous-flow production
The three basic measures of inventory are inventory turnover, average aggregate inventory, and:
weeks of supply
Downtime and lost efficiency are both examples of:
setup costs
____ is a measure of performance that indicates how many inputs it takes to produce or create an output.
Productivity
Which of the following shows the correct relationship for productivity, outputs, and inputs?
productivity = (outputs/inputs)
Why is productivity important to countries?
c. Productivity matters because it produces a higher standard of living.
The American Society for Quality defines quality as ____.
. a product free of deficiencies, or the characteristics of a product or service that satisfy customers’ needs
Which of the following is an important characteristic of a quality product?
reliability
The product quality characteristic of ____ is defined as the mean time before product failure.
a. durability
Most companies define product ____ in terms of how easy or difficult it is to fix a product.
serviceability
A product’s quality is determined by its ____.
durability, reliability, and serviceability
Which of the following statements about ISO 9000 is true?
b. ISO 9000 certification may be suspended or canceled if companies fail a periodic audit following their initial certification.
In TQM terms, ____ is an organizational goal to provide products or deliver services that meet or exceed customers’ expectations.
b. customer satisfaction
According to the TQM strategy, what should be a company’s primary goal?
customer focus and satisfaction
____ is a deviation in the form, condition, or appearance of a product from the quality standard for that product.
Variation
The first step in the service-profit chain is the establishment of ____.
internal service quality
One of the key assumptions in the service business is that success depends on how well employees deliver their services to customers. However, according to the service-profit chain, success depends on ____.
how well employees are treated
The lowest degree of processing occurs in ____ operations, where a company orders parts and assembles standardized products before receiving customer orders.
make-to-stock
Classifying manufacturing operations in terms of the amount of assembly that occurs after an order is received from customers is the same as classifying those operations in terms of ____.
processing
____ inventories include the basic inputs in a manufacturing process.
Raw materials
Which of the following is NOT a kind of inventory a manufacturer would keep in stock?
nonrenewable materials
According to the textbook, what should a business owner do with excess inventory?
c. cut prices on the product to increase its sales
Transaction costs and loss of customer goodwill are both examples of ____.
stockout costs
Materials requirement planning (MRP) is ____.
used with dependant demand systems
the three key parts of material requirement planning (MRP) are ____.
c. the master production schedule, the bill of materials, and inventory records
____ is a ticket-based system that indicates when to reorder inventory.
Kanban
