Chapter 18

Question 1

A product’s quality is determined by its:

Answer 1

durability, reliability, and serviceability

Question 2

The three principles that characterize TQM are continuous improvement, teamwork, and:

Answer 2

c. customer focus and satisfaction

Question 3

__________ is a deviation in the form, condition, or appearance of a product from the quality standard for that product.

Answer 3

c. Variation

Question 4

The term __________ refers to restoring customer satisfaction to strongly dissatisfied customers.

Answer 4

service recovery

Question 5

When a manufacturer makes a product continuously, it is using:

Answer 5

continuous-flow production

Question 6

The three basic measures of inventory are inventory turnover, average aggregate inventory, and:

Answer 6

weeks of supply

Question 7

Downtime and lost efficiency are both examples of:

Answer 7

setup costs

Question 8

____ is a measure of performance that indicates how many inputs it takes to produce or create an output.

Answer 8

Productivity

Question 9

Which of the following shows the correct relationship for productivity, outputs, and inputs?

Answer 9

productivity = (outputs/inputs)

Question 10

Why is productivity important to countries?

Answer 10

c. Productivity matters because it produces a higher standard of living.

Question 11

The American Society for Quality defines quality as ____.

Answer 11

. a product free of deficiencies, or the characteristics of a product or service that satisfy customers’ needs

Question 12

Which of the following is an important characteristic of a quality product?

Answer 12

reliability

Question 13

The product quality characteristic of ____ is defined as the mean time before product failure.

Answer 13

a. durability

Question 14

Most companies define product ____ in terms of how easy or difficult it is to fix a product.

Answer 14

serviceability

Question 15

A product’s quality is determined by its ____.

Answer 15

durability, reliability, and serviceability

Question 16

Which of the following statements about ISO 9000 is true?

Answer 16

b. ISO 9000 certification may be suspended or canceled if companies fail a periodic audit following their initial certification.

Question 17

In TQM terms, ____ is an organizational goal to provide products or deliver services that meet or exceed customers’ expectations.

Answer 17

b. customer satisfaction

Question 18

According to the TQM strategy, what should be a company’s primary goal?

Answer 18

customer focus and satisfaction

Question 19

____ is a deviation in the form, condition, or appearance of a product from the quality standard for that product.

Answer 19

Variation

Question 20

The first step in the service-profit chain is the establishment of ____.

Answer 20

internal service quality

Question 21

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 ____.

Answer 21

how well employees are treated

Question 22

The lowest degree of processing occurs in ____ operations, where a company orders parts and assembles standardized products before receiving customer orders.

Answer 22

make-to-stock

Question 23

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 ____.

Answer 23

processing

Question 24

____ inventories include the basic inputs in a manufacturing process.

Answer 24

Raw materials

Question 25

Which of the following is NOT a kind of inventory a manufacturer would keep in stock?

Answer 25

nonrenewable materials

Question 26

According to the textbook, what should a business owner do with excess inventory?

Answer 26

c. cut prices on the product to increase its sales

Question 27

Transaction costs and loss of customer goodwill are both examples of ____.

Answer 27

stockout costs

Question 28

Materials requirement planning (MRP) is ____.

Answer 28

used with dependant demand systems

Question 29

the three key parts of material requirement planning (MRP) are ____.

Answer 29

c. the master production schedule, the bill of materials, and inventory records

Question 30

____ is a ticket-based system that indicates when to reorder inventory.

Answer 30

Kanban