"Employees cannot produce goods that on average exceed the quality of what the process is capable of producing" expresses a basic element in the writings of

"Employees cannot produce goods that on average exceed the quality of what the process is capable of producing" expresses a basic element in the writings of 

1. a. Vilfredo Pareto
2. b. Armand Feigenbaum
3. c. Joseph M. Juran
4. d. W. Edwards Deming
5. e. Philip B. Crosby

Answer: d 

Which of the following statements is not true?

Which of the following statements is not true?

1. a. Self-promotion is not a substitute for quality products.
2. b. Inferior products harm a firm’s profitability and a nation’s balance of payments.
3. c. Product liability transfers from the manufacturer to the retailer once the retailer accepts delivery of the product.
4. d. Quality—be it good or bad—will show up in perceptions about a firm’s new products, employment practices, and supplier relations.
5. e. Legislation such as the Consumer Product Safety Act sets and enforces product standards by banning products that do not reach those standards.


Answer: c 

All of the following costs are likely to decrease as a result of better quality except

All of the following costs are likely to decrease as a result of better quality except 

1. a. customer dissatisfaction costs
2. b. inspection costs
3. c. scrap costs
4. d. warranty and service costs
5. e. maintenance costs

Answer: e

Which of the following is not one of the major categories of costs associated with quality?

Which of the following is not one of the major categories of costs associated with quality? 

1. a. prevention costs
2. b. appraisal costs
3. c. internal failures
4. d. external failures
5. e. none of the above; they are all major categories of costs associated with quality

Answer: e 

The role of quality in limiting a firm's product liability is illustrated by

The role of quality in limiting a firm's product liability is illustrated by 

1. a. ensuring that contaminated products such as impure foods do not reach customers
2. b. ensuring that products meet standards such as those of the Consumer Product Safety Act
3. c. designing safe products to limit possible harm to consumers
4. d. using processes that make products as safe or as durable as their design specifications call for
5. e. All of the above are valid.

Answer: e 

Arnold Palmer Hospital uses which of the following quality management techniques?

Arnold Palmer Hospital uses which of the following quality management techniques? 

1. a. Pareto charts
2. b. flow charts
3. c. benchmarking
4. d. Just-in-Time
5. e. The hospital uses all of the above techniques.

Answer: e 

Which of the following statements regarding Arnold Palmer Hospital is false?

Which of the following statements regarding Arnold Palmer Hospital is false? 

1. a. The hospital uses a wide range of quality management techniques.
2. b. The culture of quality at the hospital includes employees at all levels.
3. c. The hospital scores very highly in national studies of patient satisfaction.
4. d. The hospital's high quality is measured by low readmission rates, not patient satisfaction.
5. e. The design of patient rooms, even wall colors, reflects the hospital's culture of quality.

Answer: d 

Which of the following statements best describes the relationship between quality management and product strategy?

Which of the following statements best describes the relationship between quality management and product strategy? 

1. a. Product strategy is set by top management; quality management is an independent activity.
2. b. Quality management is important to the low-cost product strategy, but not to the response or differentiation strategies.
3. c. High quality is important to all three strategies, but it is not a critical success factor.
4. d. Managing quality helps build successful product strategies.
5. e. Companies with the highest measures of quality were no more productive than other firms.

Answer: d 

According to the manufacturing-based definition of quality,

According to the manufacturing-based definition of quality, 

1. a. quality is the degree of excellence at an acceptable price and the control of variability at an acceptable cost
2. b. quality depends on how well the product fits patterns of consumer preferences
3. c. even though quality cannot be defined, you know what it is
4. d. quality is the degree to which a specific product conforms to standards
5. e. quality lies in the eyes of the beholder

Answer: d 

Three broad categories of definitions of quality are

Three broad categories of definitions of quality are 

1. a. product quality, service quality, and organizational quality
2. b. user-based, manufacturing-based, and product-based
3. c. internal, external, and prevention
4. d. low-cost, response, and differentiation
5. e. Pareto, Shewhart, and Deming

Answer: b 

"Making it right the first time" is

"Making it right the first time" is

1. a. an unrealistic definition of quality
2. b. a user-based definition of quality
3. c. a manufacturing-based definition of quality
4. d. a product-based definition of quality
5. e. the definition proposed by the American Society for Quality

Answer: c 

"Quality is defined by the customer" is

"Quality is defined by the customer" is 

1. a. an unrealistic definition of quality
2. b. a user-based definition of quality
3. c. a manufacturing-based definition of quality
4. d. a product-based definition of quality
5. e. the definition proposed by the American Society for Quality

Answer: b