Which of the following perspectives of quality judges a product on the basis of how well the product performs its intended function?

Chapter 1 - Introduction to Quality
1. People view quality subjectively and in relation to differing criteria based on their individual roles in the productionmarketing value chain.
a. True
b. Fals
e
ANSWER:
True
POINTS:
1
DIFFICULTY:
Difficulty: Easy
ACCREDITING STANDARDS: BUSPROG: Analytic
DISC: Creation of Value
TOPICS:
DESC.EVAB.17.01.01 Defining Quality
KEYWORDS:
Bloom's: Knowledge
2. The transcendent definition of quality was first defined as the goodness of a product.
a. True
b. Fals
e
ANSWER:
True
POINTS:
1
DIFFICULTY:
Difficulty: Easy
ACCREDITING STANDARDS: BUSPROG: Analytic
DISC: Creation of Value
TOPICS:
DESC.EVAB.17.01.01 Defining Quality

KEYWORDS:
Bloom's: Comprehension
3. According to the product perspective of quality, a smaller number of product attributes are equivalent to higher quality.
a. True
b. Fals
e
ANSWER:
False
POINTS:
1
DIFFICULTY:
Difficulty: Easy
ACCREDITING STANDARDS: BUSPROG: Analytic
DISC: Creation of Value
TOPICS:
DESC.EVAB.17.01.01 Defining Quality
KEYWORDS:
Bloom's: Knowledge
4. The user perspective of quality judges a product based on how well the product performs its intended function.
a. True
b. Fals
e
ANSWER:
True
POINTS:
1
DIFFICULTY:
Difficulty: Easy
ACCREDITING STANDARDS: BUSPROG: Analytic
DISC: Creation of Value

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Page 1

Chapter 1 - Introduction to Quality
TOPICS:
KEYWORDS:

DESC.EVAB.17.01.01 Defining Quality
Bloom's: Knowledge

5. According to the manufacturing perspective of quality, quality is based on the consistency between goods and services.
a. True
b. Fals
e
ANSWER:
True
POINTS:
1
DIFFICULTY:
Difficulty: Moderate
ACCREDITING STANDARDS: BUSPROG: Analytic
DISC: Creation of Value
TOPICS:
DESC.EVAB.17.01.01 Defining Quality
KEYWORDS:
Bloom's: Comprehension
6. Inspection was the primary means of quality control during the first half of the twentieth century.
a. True

b. Fals
e
ANSWER:
True
POINTS:
1
DIFFICULTY:
Difficulty: Easy
ACCREDITING STANDARDS: BUSPROG: Analytic
DISC: Creation of Value
TOPICS:
DESC.EVAB.17.01.02 History of Quality Management
KEYWORDS:
Bloom's: Knowledge
7. During the 1940s and 1950s, after World War II, the quality of products was the most important priority of top
managers as it was recognized as the key to worldwide success.
a. True
b. Fals
e
ANSWER:
False
POINTS:
1
DIFFICULTY:
Difficulty: Moderate
ACCREDITING STANDARDS: BUSPROG: Analytic
DISC: Creation of Value
TOPICS:
DESC.EVAB.17.01.02 History of Quality Management
KEYWORDS:

Bloom's: Comprehension
8. Although quality can drive business success, it cannot guarantee it, and one must not infer that business failures or
stock price drops are the result of poor quality.
a. True
b. Fals
e
ANSWER:
True
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Page 2

Chapter 1 - Introduction to Quality
POINTS:
1
DIFFICULTY:
Difficulty: Moderate
ACCREDITING STANDARDS: BUSPROG: Analytic
DISC: Creation of Value
TOPICS:
DESC.EVAB.17.01.02 History of Quality Management
KEYWORDS:
Bloom's: Comprehension
9. The Six Sigma approach for quality improvement requires increased levels of training and education for managers, and
not for front-line employees.
a. True
b. Fals
e
ANSWER:

False
POINTS:
1
DIFFICULTY:
Difficulty: Easy
ACCREDITING STANDARDS: BUSPROG: Analytic
DISC: Creation of Value
TOPICS:
DESC.EVAB.17.01.02 History of Quality Management
KEYWORDS:
Bloom's: Knowledge
10. It is the responsibility of the marketing and sales department to learn about the products and product features that
consumers want, and the prices they are willing to pay for those products.
a. True
b. Fals
e
ANSWER:
True
POINTS:
1
DIFFICULTY:
Difficulty: Easy
ACCREDITING STANDARDS: BUSPROG: Analytic
DISC: Creation of Value
TOPICS:
DESC.EVAB.17.01.03 Quality in Manufacturing
KEYWORDS:
Bloom's: Knowledge
11. The receiving department in an organization ensures that the delivered items are of the quality specified by the
purchase contract.

a. True
b. Fals
e
ANSWER:
True
POINTS:
1
DIFFICULTY:
Difficulty: Easy
ACCREDITING STANDARDS: BUSPROG: Analytic
DISC: Creation of Value
TOPICS:
DESC.EVAB.17.01.03 Quality in Manufacturing
KEYWORDS:
Bloom's: Knowledge
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Chapter 1 - Introduction to Quality
12. The function of tool engineers in manufacturing industries is to work with product design engineers to develop
realistic specifications.
a. True
b. Fals
e
ANSWER:
False
POINTS:
1

DIFFICULTY:
Difficulty: Easy
ACCREDITING STANDARDS: BUSPROG: Analytic
DISC: Creation of Value
TOPICS:
DESC.EVAB.17.01.03 Quality in Manufacturing
KEYWORDS:
Bloom's: Knowledge
13. The inspection step in manufacturing should ideally be used as a means of gathering information that can be used to
improve quality of the products rather than simply to remove defective items.
a. True
b. Fals
e
ANSWER:
True
POINTS:
1
DIFFICULTY:
Difficulty: Easy
ACCREDITING STANDARDS: BUSPROG: Analytic
DISC: Operations Management
TOPICS:
DESC.EVAB.17.01.03 Quality in Manufacturing
KEYWORDS:
Bloom's: Knowledge
14. If quality is built into the product properly, inspection is necessary for auditing purposes and functional testing.
a. True
b. Fals
e
ANSWER:

False
POINTS:
1
DIFFICULTY:
Difficulty: Easy
ACCREDITING STANDARDS: BUSPROG: Analytic
DISC: Creation of Value
TOPICS:
DESC.EVAB.17.01.03 Quality in Manufacturing
KEYWORDS:
Bloom's: Knowledge
15. The production of services typically requires a lower degree of customization than does manufacturing.
a. True
b. Fals
e
ANSWER:
False
POINTS:
1
DIFFICULTY:
Difficulty: Easy
ACCREDITING STANDARDS: BUSPROG: Analytic
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Page 4

Chapter 1 - Introduction to Quality
TOPICS:
KEYWORDS:

DISC: Information Technologies
DESC.EVAB.17.01.04 Quality in Service Organizations
Bloom's: Knowledge

16. Services cannot be inventoried or inspected prior to delivery as manufactured goods.
a. True
b. Fals
e
ANSWER:
True
POINTS:
1
DIFFICULTY:
Difficulty: Easy
ACCREDITING STANDARDS: BUSPROG: Analytic
DISC: Creation of Value
TOPICS:
DESC.EVAB.17.01.04 Quality in Service Organizations
KEYWORDS:
Bloom's: Knowledge
17. Manufacturing is generally more labor intensive compared to services.
a. True
b. Fals
e
ANSWER:
False
POINTS:
1
DIFFICULTY:

Difficulty: Easy
ACCREDITING STANDARDS: BUSPROG: Analytic
DISC: Creation of Value
TOPICS:
DESC.EVAB.17.01.04 Quality in Service Organizations
KEYWORDS:
Bloom's: Knowledge
18. Services are produced prior to consumption.
a. True
b. Fals
e
ANSWER:
False
POINTS:
1
DIFFICULTY:
Difficulty: Easy
ACCREDITING STANDARDS: BUSPROG: Analytic
DISC: Creation of Value
TOPICS:
DESC.EVAB.17.01.04 Quality in Service Organizations
KEYWORDS:
Bloom's: Knowledge
19. Customers evaluate a service primarily by the quality of the human contact.
a. True
b. Fals
e
ANSWER:
True
POINTS:

1
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Chapter 1 - Introduction to Quality
DIFFICULTY:
Difficulty: Easy
ACCREDITING STANDARDS: BUSPROG: Analytic
DISC: Creation of Value
TOPICS:
A-head: Quality in Service Organizations
KEYWORDS:
Bloom's: Knowledge
20. The quality assurance team in a firm is only partly responsible for ensuring that the products produced meet the
required quality specifications.
a. True
b. Fals
e
ANSWER:
True
POINTS:
1
DIFFICULTY:
Difficulty: Moderate
ACCREDITING STANDARDS: BUSPROG: Analytic
DISC: Creation of Value
TOPICS:
DESC.EVAB.17.01.05 Quality in Business Support Functions

KEYWORDS:
Bloom's: Comprehension
21. The accounting function helps in achieving quality by identifying areas of quality improvement and tracking the
progress of quality improvement programs.
a. True
b. Fals
e
ANSWER:
True
POINTS:
1
DIFFICULTY:
Difficulty: Easy
ACCREDITING STANDARDS: BUSPROG: Analytic
DISC: Creation of Value
TOPICS:
DESC.EVAB.17.01.05 Quality in Business Support Functions
KEYWORDS:
Bloom's: Knowledge
22. High quality of products is an important source of competitive advantage for organizations.
a. True
b. Fals
e
ANSWER:
True
POINTS:
1
DIFFICULTY:
Difficulty: Easy
ACCREDITING STANDARDS: BUSPROG: Analytic

DISC: Creation of Value
TOPICS:
DESC.EVAB.17.01.06 Quality and Competitive Advantage
KEYWORDS:
Bloom's: Knowledge
23. Instituting a strategy of quality improvement usually helps to increase short-run profitability.
a. True
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Chapter 1 - Introduction to Quality
b. Fals
e
ANSWER:
POINTS:
DIFFICULTY:
ACCREDITING STANDARDS:
TOPICS:
KEYWORDS:

False
1
Difficulty: Moderate
BUSPROG: Analytic
DISC: Creation of Value
DESC.EVAB.17.01.06 Quality and Competitive Advantage
Bloom's: Comprehension

24. Today, organizations are asking employees to take more responsibility for acting as the point of contact between the
organization and the customer.
a. True
b. Fals
e
ANSWER:
True
POINTS:
1
DIFFICULTY:
Difficulty: Easy
ACCREDITING STANDARDS: BUSPROG: Analytic
DISC: Creation of Value
TOPICS:
DESC.EVAB.17.01.07 Quality and Personal Values
KEYWORDS:
Bloom's: Knowledge
25. Employees who embrace quality as a personal value often go beyond what they’re asked or normally expected to do in
order to provide extraordinary service to a customer.
a. True
b. Fals
e
ANSWER:
True
POINTS:
1
DIFFICULTY:
Difficulty: Easy
ACCREDITING STANDARDS: BUSPROG: Analytic
DISC: Creation of Value

TOPICS:
DESC.EVAB.17.01.07 Quality and Personal Values
KEYWORDS:
Bloom's: Knowledge
26. Which of the following perspectives of quality considers quality to be synonymous with superiority or excellence?
a. Product perspective
b. Value perspective
c. Transcendent perspective
d. Manufacturing
perspective
ANSWER:
c
POINTS:
1
DIFFICULTY:
Difficulty: Easy
ACCREDITING STANDARDS: BUSPROG: Analytic
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Page 7

Chapter 1 - Introduction to Quality
TOPICS:
KEYWORDS:

DISC: Creation of Value
DESC.EVAB.17.01.01 Defining Quality
Bloom's: Knowledge

27. Which of the following is true of the transcendent or judgmental perspective of quality?
a. It is of little practical value to the managers, as standards of excellence vary
considerably among individuals.
b. It provides a precise and universally acceptable definition for quality.
c. It defines quality on the basis of the relationship of product benefits to price.
d. It provides a means by which quality can be measured or assessed as a basis for
practical business decisions.
ANSWER:
a
POINTS:
1
DIFFICULTY:
Difficulty: Moderate
ACCREDITING STANDARDS: BUSPROG: Analytic
DISC: Creation of Value
TOPICS:
DESC.EVAB.17.01.01 Defining Quality
KEYWORDS:
Bloom's: Comprehension
28. A consumer electronics company introduced a new music system into the market with multiple features like built in
alarm, mobile and iPod charger, radio and many more. The company is trying to influence the _____ perspective of
quality by providing multiple features in a single product.
a. value
b. user
c. product
d. transcendent
ANSWER:
c
POINTS:
1

DIFFICULTY:
Difficulty: Moderate
ACCREDITING STANDAR BUSPROG: Analytic
DS:
BUSPROG: Reflective Thinking
DISC: Creation of Value
TOPICS:
DESC.EVAB.17.01.01 Defining Quality
KEYWORDS:
Bloom's: Application
29. Which of the following perspectives of quality judges a product on the basis of how well the product performs its
intended function?
a. Value perspective
b. Product perspective
c. User perspective
d. Manufacturing
perspective
ANSWER:
c
POINTS:
1
DIFFICULTY:
Difficulty: Easy
ACCREDITING STANDARDS: BUSPROG: Analytic
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Chapter 1 - Introduction to Quality

TOPICS:
KEYWORDS:

DISC: Creation of Value
DESC.EVAB.17.01.01 Defining Quality
Bloom's: Knowledge

30. The value perspective defines quality of a product on the basis of:
a. the ability of the product to perform its intended function.
b. the relationship of product benefits to price.
c. the quantity of some product attribute.
d. the product’s conformance to its specifications.
ANSWER:
b
POINTS:
1
DIFFICULTY:
Difficulty: Moderate
ACCREDITING STANDARDS: BUSPROG: Analytic
DISC: Creation of Value
TOPICS:
DESC.EVAB.17.01.01 Defining Quality
KEYWORDS:
Bloom's: Comprehension
31. Kosher’s, a supermarket in Surbury, employs various strategies to provide good quality products to consumers at
lower prices compared to other competing stores. This marketing strategy is most likely to influence the _____
perspective of quality.
a. user
b. product
c. value

d. manufacturing
ANSWER:
c
POINTS:
1
DIFFICULTY:
Difficulty: Moderate
ACCREDITING STANDAR BUSPROG: Analytic
DS:
BUSPROG: Reflective Thinking
DISC: Creation of Value
TOPICS:
DESC.EVAB.17.01.01 Defining Quality
KEYWORDS:
Bloom's: Application
32. Which of the following perspectives of quality judges quality of a product on the basis of consistency in meeting
product specifications?
a. Manufacturing
perspective
b. User perspective
c. Value perspective
d. Transcendent perspective
ANSWER:
a
POINTS:
1
DIFFICULTY:
Difficulty: Easy
ACCREDITING STANDARDS: BUSPROG: Analytic
DISC: Creation of Value

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Chapter 1 - Introduction to Quality
TOPICS:
KEYWORDS:

DESC.EVAB.17.01.01 Defining Quality
Bloom's: Knowledge

33. The _____ perspective defines quality as the totality of features and characteristics of a product or service that bears
on its ability to satisfy given needs.
a. value
b. transcendent
c. manufacturing
d. customer
ANSWER:
d
POINTS:
1
DIFFICULTY:
Difficulty: Easy
ACCREDITING STANDARDS: BUSPROG: Analytic
DISC: Creation of Value
TOPICS:
DESC.EVAB.17.01.01 Defining Quality
KEYWORDS:
Bloom's: Knowledge

34. The ultimate purchaser of a product or service is referred to as a(n) _____.
a. supplier
b. external customer
c. consumer
d. internal customer
ANSWER:
c
POINTS:
1
DIFFICULTY:
Difficulty: Easy
ACCREDITING STANDARDS: BUSPROG: Analytic
DISC: Creation of Value
TOPICS:
DESC.EVAB.17.01.01 Defining Quality
KEYWORDS:
Bloom's: Knowledge
35. Shenzen Electronics, a cell phone manufacturing company, buys microphones and bluetooth handsets from Atid
Infotech which manufactures cell phones and cellular accessories. For Atid Infotech, Shenzen is a(n) _____.
a. consumer
b. supplier
c. external customer
d. internal customer
ANSWER:
c
POINTS:
1
DIFFICULTY:
Difficulty: Moderate
ACCREDITING STANDAR BUSPROG: Analytic

DS:
BUSPROG: Reflective Thinking
DISC: Creation of Value
TOPICS:
DESC.EVAB.17.01.01 Defining Quality
KEYWORDS:
Bloom's: Application
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Chapter 1 - Introduction to Quality
36. Which of the following is true regarding internal customers of an organization?
a. They buy products or services for their own personal use.
b. They receive goods or services from suppliers within the organization.
c. They are the ultimate purchasers of a product or service.
d. They do not add any value to the product before it reaches the consumer.
ANSWER:
b
POINTS:
1
DIFFICULTY:
Difficulty: Moderate
ACCREDITING STANDARDS: BUSPROG: Analytic
DISC: Creation of Value
TOPICS:
DESC.EVAB.17.01.01 Defining Quality
KEYWORDS:
Bloom's: Comprehension

37. Customers generally view quality from the _____ perspective.
a. user
b. manufacturing
c. value
d. transcendent
ANSWER:
d
POINTS:
1
DIFFICULTY:
Difficulty: Easy
ACCREDITING STANDARDS: BUSPROG: Analytic
DISC: Creation of Value
TOPICS:
DESC.EVAB.17.01.01 Defining Quality
KEYWORDS:
Bloom's: Knowledge
38. Which of the following perspectives of quality is most likely to be meaningful to people who work in marketing
because they are responsible for determining the needs and expectations of the customers?
a. User perspective
b. Manufacturing
perspective
c. Value perspective
d. Transcendent perspective
ANSWER:
a
POINTS:
1
DIFFICULTY:
Difficulty: Easy

ACCREDITING STANDARDS: BUSPROG: Analytic
DISC: Creation of Value
TOPICS:
A-head: Defining Quality
KEYWORDS:
Bloom's: Knowledge
39. The value perspective of quality is most important at the _____ stage in the creation and delivery of goods and
services.
a. manufacturing
b. design
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Chapter 1 - Introduction to Quality
c. marketing
d. distribution
ANSWER:
POINTS:
DIFFICULTY:
ACCREDITING STANDARDS:
TOPICS:
KEYWORDS:

b
1
Difficulty: Easy
BUSPROG: Analytic
DISC: Creation of Value

DESC.EVAB.17.01.01 Defining Quality
Bloom's: Knowledge

40. Which of the following perspectives of quality is meaningful for production workers who are responsible for
guaranteeing that design specifications are met during production?
a. User perspective
b. Customer perspective
c. Product perspective
d. Manufacturing
perspective
ANSWER:
d
POINTS:
1
DIFFICULTY:
Difficulty: Easy
ACCREDITING STANDARDS: BUSPROG: Analytic
DISC: Creation of Value
TOPICS:
DESC.EVAB.17.01.01 Defining Quality
KEYWORDS:
Bloom's: Knowledge
41. Which of the following perspectives of quality provides the basis for coordinating the entire value chain?
a. Customer perspective
b. User perspective
c. Transcendent perspective
d. Value perspective
ANSWER:
a
POINTS:

1
DIFFICULTY:
Difficulty: Easy
ACCREDITING STANDARDS: BUSPROG: Analytic
DISC: Creation of Value
TOPICS:
DESC.EVAB.17.01.01 Defining Quality
KEYWORDS:
Bloom's: Knowledge
42. Which of the following is true of quality management during the age of craftsmanship that existed before the advent of
the Industrial Revolution?
a. Inspection was the primary means of quality control.
b.Various statistical methods and control charts were being used to identify quality
problems in production processes and to ensure consistency of output.
c. Ensuring quality of the products was the responsibility of the quality departments and
not the workers who were directly involved in creating the products.
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Chapter 1 - Introduction to Quality
d.Quality assurance was informal and efforts were made to ensure that quality was built
into products by the people who produced them.
ANSWER:
d
POINTS:
1
DIFFICULTY:
Difficulty: Moderate

ACCREDITING STANDARDS: BUSPROG: Analytic
DISC: Creation of Value
TOPICS:
DESC.EVAB.17.01.02 History of Quality Management
KEYWORDS:
Bloom's: Comprehension
43. The concept of total quality is defined as a(n):
a. customer-focused, results-oriented approach to business improvement that integrates
many traditional quality improvement tools and techniques with a bottom-line and
strategic orientation.
b.people-focused management system that aims at continual increase in customer
satisfaction at continually lower real cost.
c. structured approach to organizational management that is used to prioritize and select
projects that have high benefits relative to the effort involved in accomplishing them.
d.integrated approach to organizational performance management that results in lower
consumption of resources.
ANSWER:
b
POINTS:
1
DIFFICULTY:
Difficulty: Moderate
ACCREDITING STANDARDS: BUSPROG: Analytic
DISC: Creation of Value
TOPICS:
DESC.EVAB.17.01.02 History of Quality Management
KEYWORDS:
Bloom's: Comprehension
44. Which of the following is true regarding the six-sigma approach to quality improvement?
a. It does not address problems involving cost reduction and efficiency.

b.It integrates many traditional quality improvement tools and techniques that have been
tested and validated over the years, with a bottom-line and strategic orientation.
c. It become less effective in addressing problems related to quality and efficiency if the
six sigma tools are combined with lean tools from the Toyota production system.
d.It focuses entirely on the training and education of managers and not the front-line
employees and the technical staff in the organization.
ANSWER:
b
POINTS:
1
DIFFICULTY:
Difficulty: Moderate
ACCREDITING STANDARDS: BUSPROG: Analytic
DISC: Creation of Value
TOPICS:
DESC.EVAB.17.01.02 History of Quality Management
KEYWORDS:
Bloom's: Comprehension
45. The marketing and sales department in an organization contributes to the quality of the product by:
a. bringing together technical staffs from both the buyer’s and supplier's companies to
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Chapter 1 - Introduction to Quality
design products and solve technical problems.
b.designing and maintaining the tools used in manufacturing and inspection of goods.
c. learning the products and product features that consumers want and knowing the prices
that consumers are willing to pay for them.

d.ensuring that the items delivered by the suppliers are of the quality specified by the
purchase contract.
ANSWER:
c
POINTS:
1
DIFFICULTY:
Difficulty: Moderate
ACCREDITING STANDARDS: BUSPROG: Analytic
DISC: Creation of Value
TOPICS:
DESC.EVAB.17.01.03 Quality in Manufacturing
KEYWORDS:
Bloom's: Comprehension
46. The purchasing department helps a firm in achieving quality by:
a. defining long-term and short-term production requirements for filling customer orders
and meeting anticipated demand.
b.ensuring that the products are assembled correctly and eliminating the causes that can
lead to defects or errors in the final product.
c. collaborating with product design engineers to develop realistic specifications for the
product.
d.providing quality-improvement training to suppliers.
ANSWER:
d
POINTS:
1
DIFFICULTY:
Difficulty: Moderate
ACCREDITING STANDARDS: BUSPROG: Analytic
DISC: Creation of Value

TOPICS:
DESC.EVAB.17.01.03 Quality in Manufacturing
KEYWORDS:
Bloom's: Comprehension
47. Who among the following in an organization are responsible for selecting appropriate technologies, equipment, and
work methods for producing quality products?
a. Production workers
b. Industrial engineers
c. Salespeople
d. Tool engineers
ANSWER:
b
POINTS:
1
DIFFICULTY:
Difficulty: Easy
ACCREDITING STANDARDS: BUSPROG: Analytic
DISC: Creation of Value
TOPICS:
DESC.EVAB.17.01.03 Quality in Manufacturing
KEYWORDS:
Bloom's: Knowledge
48. Which of the following functions in the manufacturing system is responsible for specifying long-term and short-term
production requirements for filling customer orders and meeting anticipated demand?
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Chapter 1 - Introduction to Quality

a. Product design and engineering
b. Manufacturing and assembly
c. Production planning and scheduling
d. Industrial engineering and process
design
ANSWER:
c
POINTS:
1
DIFFICULTY:
Difficulty: Easy
ACCREDITING STANDARDS: BUSPROG: Analytic
DISC: Creation of Value
TOPICS:
DESC.EVAB.17.01.03 Quality in Manufacturing
KEYWORDS:
Bloom's: Knowledge
49. The inspection and testing function in a manufacturing system contributes to the quality of the product by:
a. gathering information that can be used to improve the quality of the products.
b.selecting quality-conscious suppliers and ensuring that purchase orders clearly define
the quality requirements specified by product design and engineering.
c. designing and maintaining the tools used in manufacturing of products.
d.selecting appropriate technologies, equipment, and work methods for producing
quality products.
ANSWER:
a
POINTS:
1
DIFFICULTY:
Difficulty: Moderate

ACCREDITING STANDARDS: BUSPROG: Analytic
DISC: Creation of Value
TOPICS:
DESC.EVAB.17.01.03 Quality in Manufacturing
KEYWORDS:
Bloom's: Comprehension
50. The production of services differs from manufacturing as services:
a. can be inspected prior to delivery.
b. require lesser customization compared to manufactured goods.
c. produce outputs that are mostly intangible.
d. are less labor intensive and involve minimal human interaction.
ANSWER:
c
POINTS:
1
DIFFICULTY:
Difficulty: Moderate
ACCREDITING STANDARDS: BUSPROG: Analytic
DISC: Creation of Value
TOPICS:
DESC.EVAB.17.01.04 Quality in Service Organizations
KEYWORDS:
Bloom's: Comprehension
51. Which of the following is true regarding production of services?
a. Compared to manufacturing, it is easier for service organizations to identify and
measure customers’ needs and performance standards as they involve human contact.
b.The production of services typically requires a lower degree of customization than
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Chapter 1 - Introduction to Quality
does manufacturing.
c. Compared to manufacturing, production of services is typically less labor intensive.
d.Services are produced and consumed simultaneously
ANSWER:
d
POINTS:
1
DIFFICULTY:
Difficulty: Moderate
ACCREDITING STANDARDS: BUSPROG: Analytic
DISC: Creation of Value
TOPICS:
DESC.EVAB.17.01.04 Quality in Service Organizations
KEYWORDS:
Bloom's: Comprehension
52. Customers evaluate a service primarily by the:
a. speed of the service.
b. accuracy of the service.
c. quality of the human contact.
d. degree of customization offered by the service.
ANSWER:
c
POINTS:
1
DIFFICULTY:
Difficulty: Easy
ACCREDITING STANDARDS: BUSPROG: Analytic

DISC: Creation of Value
TOPICS:
DESC.EVAB.17.01.04 Quality in Service Organizations
KEYWORDS:
Bloom's: Knowledge
53. Which of the following is a negative impact of information technology on the customer service provided by service
organizations?
a. It has increased the labor intensity involved in the production of services.
b.It has resulted in lesser personal interaction between consumers and service providers
leading to decreased customer satisfaction among some consumers.
c. It has decreased the speed of service.
d.It has restricted the ability of the customers to compare products with competitor
brands before making a purchase.
ANSWER:
b
POINTS:
1
DIFFICULTY:
Difficulty: Moderate
ACCREDITING STANDARDS: BUSPROG: Analytic
DISC: Creation of Value
TOPICS:
DESC.EVAB.17.01.04 Quality in Service Organizations
KEYWORDS:
Bloom's: Comprehension
54. The _____ function helps an organization in achieving quality by exposing the costs of poor quality and opportunities
for reducing it.
a. marketing and sales
b. manufacturing and
assembly

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Chapter 1 - Introduction to Quality
c. legal services
d. finance and accounting
ANSWER:
POINTS:
DIFFICULTY:
ACCREDITING STANDARDS:
TOPICS:
KEYWORDS:

d
1
Difficulty: Easy
BUSPROG: Analytic
DISC: Creation of Value
DESC.EVAB.17.01.05 Quality in Business Support Functions
Bloom's: Knowledge

55. Which of the following business support functions helps in achieving quality by ensuring that the product labeling,
packaging, and safety measures are in compliance with the rules and regulations?
a. Marketing and sales
b. Tool engineering
c. Legal services
d. Finance and
accounting

ANSWER:
c
POINTS:
1
DIFFICULTY:
Difficulty: Easy
ACCREDITING STANDARDS: BUSPROG: Analytic
DISC: Creation of Value
TOPICS:
DESC.EVAB.17.01.05 Quality in Business Support Functions
KEYWORDS:
Bloom's: Knowledge
56. The quality assurance function helps to achieve quality by:
a. ensuring that the firm provides adequate training to its salespeople so that they can
appropriately answer all customer queries.
b.ensuring that the firm complies with laws and regulations regarding such things as
product labeling, packaging, safety, and transportation.
c. providing special statistical studies and analyses to the manufacturing or business
support functions.
d.authorizing sufficient budgeting for equipment, training, and other means of assuring
quality.
ANSWER:
c
POINTS:
1
DIFFICULTY:
Difficulty: Moderate
ACCREDITING STANDARDS: BUSPROG: Analytic
DISC: Creation of Value
TOPICS:

DESC.EVAB.17.01.05 Quality in Business Support Functions
KEYWORDS:
Bloom's: Comprehension
57. Which of the following terms best represents a firm’s ability to achieve market superiority?
a. Flexibility
b. Competitive
advantage
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Chapter 1 - Introduction to Quality
c. Quality assurance
d. Agility
ANSWER:
POINTS:
DIFFICULTY:
ACCREDITING STANDARDS:
TOPICS:
KEYWORDS:

b
1
Difficulty: Easy
BUSPROG: Analytic
DISC: Creation of Value
DESC.EVAB.17.01.06 Quality and Competitive Advantage
Bloom's: Knowledge

58. The book “Quality Is Free” is written by _____.
a. Joseph Juran
b. Edwards Deming
c. Malcolm Baldrige
d. Philip Crosby
ANSWER:
d
POINTS:
1
DIFFICULTY:
Difficulty: Easy
ACCREDITING STANDARDS: BUSPROG: Analytic
DISC: Creation of Value
TOPICS:
DESC.EVAB.17.01.06 Quality and Competitive Advantage
KEYWORDS:
Bloom's: Knowledge
59. Improved conformance in production or service delivery tends to increase profitability as:
a. it helps in differentiating the product from its competitors and improves the perceived
value of the product.
b. it ensures that the services are performed according to the convenience of the
customer.
c. it leads to lower costs through savings in rework, scrap, resolution of errors, and
warranty expenses.
d. it leads to improved employee motivation.
ANSWER:
c
POINTS:
1
DIFFICULTY:

Difficulty: Moderate
ACCREDITING STANDARDS: BUSPROG: Analytic
DISC: Creation of Value
TOPICS:
DESC.EVAB.17.01.06 Quality and Competitive Advantage
KEYWORDS:
Bloom's: Comprehension
60. Organizations can ensure that the quality is rooted in their culture by:
a. internalizing quality at the personal level and encouraging employees to practice
quality in all activities of life.
b.encouraging employees to do more than what they are expected to do through reward
programs.
c. ensuring that the company follows all the laws and regulations regarding product
labeling, packaging, and other marketing requirements.
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Chapter 1 - Introduction to Quality
d.allotting sufficient budget for equipment, training, and other means of assuring quality.
ANSWER:
a
POINTS:
1
DIFFICULTY:
Difficulty: Moderate
ACCREDITING STANDARDS: BUSPROG: Analytic
DISC: Creation of Value
TOPICS:

DESC.EVAB.17.01.07 Quality and Personal Values
KEYWORDS:
Bloom's: Comprehension
61. Explain the significance of integrating different quality perspectives in the value chain.
ANSWER:
Individuals in different business functions speak different languages. Thus,
different quality perspectives at different points in the value chain are important
to ultimately create and deliver goods and services that will satisfy customers’
needs and expectations. The customer is the driving force for the production of
goods and services, and customers generally view quality from either the
transcendent or the product perspective.
The goods and services produced should meet customers’ needs and expectations.
It is the role of the marketing function to determine these. Hence, the user
perspective of quality is meaningful to people who work in marketing.
The manufacturer must translate customer requirements into detailed product and
process specifications. Making this translation is the role of research and
development, product design, and engineering. Product specifications might
address such attributes as size, form, finish, taste, dimensions, tolerances,
materials, operational characteristics, and safety features. Process specifications
indicate the types of equipment, tools, and facilities to be used in production.
Product designers must balance performance and cost to meet financial and
marketing objectives; thus, the value perspective of quality is most useful at this
stage.
The manufacturing function is responsible for guaranteeing that design
specifications are met during production and that the final product performs as
intended. Thus, for production workers, quality is defined by the manufacturing
perspective.
Throughout the value chain, each function is an internal customer of others, and
the firm itself may be an external customer or supplier to other firms. Thus, the
customer perspective provides the basis for coordinating the entire value chain.

POINTS:
1
DIFFICULTY: Difficulty: Moderate
ACCREDITIN BUSPROG: Analytic
G STANDARDS DISC: Creation of Value
:
TOPICS:
DESC.EVAB.17.01.01 Defining Quality
KEYWORDS: Bloom's: Comprehension
62. Discuss the “quality revolution” that took place in the United States after 1960s.
ANSWER:
During the 1950s and 1960s, when “made in Japan” was associated with inferior
products, U.S. consumers purchased domestic goods and accepted their quality
without question. During the 1970s, however, increased global competition and
the availability of higher-quality foreign products led U.S. consumers, armed
with increased access to information, to consider their purchasing decisions more
carefully and to demand high quality and reliability in goods and services at a fair
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Chapter 1 - Introduction to Quality
price. The decade of the 1980s was a period of remarkable change and growing
awareness of quality by consumers, industry, and government. As technology
advanced and products became more complex, the likelihood of a quality
problem increased. Government safety regulations, product recalls, and the rapid
increase in product-liability judgments changed society’s attitude from “let the
buyer beware” to “let the producer beware.” Businesses began to recognize that
quality was vital to their survival. Quality became recognized as a key to

worldwide competitiveness and was heavily promoted throughout industry. Most
major U.S. firms instituted extensive quality improvement campaigns, directed
not only at improving internal operations, but also toward satisfying external
customers.
POINTS:
1
DIFFICULTY: Difficulty: Easy
ACCREDITIN BUSPROG: Analytic
G STANDARDS DISC: Creation of Value
:
TOPICS:
DESC.EVAB.17.01.02 History of Quality Management
KEYWORDS: Bloom's: Knowledge
63. Explain the role of information technology in service industries.
ANSWER:
Many service industries exploit information technology to achieve high customer
service. Information technology systems helps to save time, improve accuracy by
standardizing the order-taking, billing, and inventory procedures and reducing the
need for handwriting. Credit authorizations, which once took several minutes by
telephone, are now accomplished in seconds through computerized authorization
systems. It allows businesses to maintain a database of individual customer
preferences, previous difficulties, family and personal interests, and preferred
credit cards. Information technology has had a huge impact on e-commerce.
Customers can shop for almost any product; configure, price, and order computer
systems; and take virtual test drives of automobiles and select from thousands of
possible combinations of options on the Internet in the convenience of their
homes. Information technology can be used to develop and enhance customer
relationships. However, while information technology reduces labor intensity and
increases the speed of service, it can have adverse effects on other dimensions of
quality due to reduced personal interaction between the customers and the

organization.
POINTS:
1
DIFFICULTY: Difficulty: Moderate
ACCREDITIN BUSPROG: Analytic
G STANDARDS DISC: Creation of Value
:
TOPICS:
DESC.EVAB.17.01.04 Quality in Service Organizations
KEYWORDS: Bloom's: Comprehension
64. How do quality of design and conformance influence the profitability of an organization?
ANSWER:
Profitability is driven by both the quality of design and conformance.
Improvements in design will differentiate the product from its competitors,
improve a firm’s quality reputation, and improve the perceived value of the
product. These factors allow the firm to command higher prices as well as to
achieve a greater market share, which in turn leads to increased revenues that
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Chapter 1 - Introduction to Quality
offset the costs of improving the design. Improved conformance in production or
service delivery leads to lower costs through savings in rework, scrap, resolution
of errors, and warranty expenses.
POINTS:
1
DIFFICULTY: Difficulty: Moderate
ACCREDITIN BUSPROG: Analytic

G STANDARDS DISC: Creation of Value
:
TOPICS:
DESC.EVAB.17.01.06 Quality and Competitive Advantage
KEYWORDS: Bloom's: Comprehension
65. Why is it important for organizations to internalize quality at the personal level?
ANSWER:
Organizations today, expect their employees to take more responsibility for acting
as the point of contact between the organization and the customer, to be team
players, and to provide better customer service. Quality begins with individual
attitudes and behavior. Employees who embrace quality as a personal value often
go beyond what they’re asked or normally expected to do in order to reach a
difficult goal or provide extraordinary service to a customer. Personal quality is
an essential ingredient to make quality happen in the workplace. Unless quality is
internalized at the personal level, it will never become rooted in the culture of an
organization.
POINTS:
1
DIFFICULTY: Difficulty: Moderate
ACCREDITIN BUSPROG: Analytic
G STANDARDS DISC: Creation of Value
:
TOPICS:
DESC.EVAB.17.01.07 Quality and Personal Values
KEYWORDS: Bloom's: Comprehension
66. Which of the following was the first plain-paper copier introduced in 1959?
a. Canon 980
b. Xerox 914
c. Kodak 114
d. IBM 800

ANSWER:
POINTS:
DIFFICULTY:
ACCREDITING STANDAR
DS:
TOPICS:
KEYWORDS:

b
1
Difficulty: Easy
BUSPROG: Analytic
DISC: Operations Management
DESC.EVAB.17.01.09 Quality in Practice: The Evolution of Quality
at Xerox
Bloom's: Knowledge

67. What was the reason for the competitive advantage of Xerox?
ANSWER:
The competitive advantage of Xerox was due to strong patents, a growing
market, and little competition.
POINTS:
1
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Chapter 1 - Introduction to Quality
DIFFICULTY:

ACCREDITING STAN
DARDS:
TOPICS:
KEYWORDS:

Difficulty: Easy
BUSPROG: Analytic
DISC: Operations Management
DESC.EVAB.17.01.09 Quality in Practice: The Evolution of Quality at
Xerox
Bloom's: Knowledge

68. What led to the fall of Xerox’s market share to less than 50 percent?
ANSWER:
Several Japanese companies introduced high-quality low-volume copiers, a
market that Xerox had virtually ignored, and established a foundation for moving
into the high-volume market. In addition, the Federal Trade Commission accused
Xerox of illegally monopolizing the copier business. After negotiations, Xerox
agreed to open approximately 1,700 patents to competitors. Xerox was soon
losing market share to Japanese competitors, and by the early 1980s it faced a
serious competitive threat from copy machine manufacturers in Japan. All these
factors led to the fall of Xerox’s market share to less than 50 percent.
POINTS:
1
DIFFICULTY: Difficulty: Moderate
ACCREDITIN BUSPROG: Analytic
G STANDARDS DISC: Operations Management
:
TOPICS:
DESC.EVAB.17.01.09 Quality in Practice: The Evolution of Quality at Xerox

KEYWORDS: Bloom's: Comprehension
69. What is the quality policy of Xerox written by Kearns and 25 other top employees of Xerox?
ANSWER:
Kearns and the company’s top 25 managers wrote the Xerox Quality Policy,
which states: Xerox is a quality company. Quality is the basic business principle
for Xerox. Quality means providing our external and internal customers with
innovative products and services that fully satisfy their requirements. Quality
improvement is the job of every Xerox employee.
POINTS:
1
DIFFICULTY: Difficulty: Easy
ACCREDITIN BUSPROG: Analytic
G STANDARDS DISC: Operations Management
:
TOPICS:
DESC.EVAB.17.01.09 Quality in Practice: The Evolution of Quality at Xerox
KEYWORDS: Bloom's: Knowledge
70. What are the objectives of the Leadership Through Quality process?
ANSWER:
The Leadership Through Quality process had three objectives:
1. To instill quality as the basic business principle in Xerox, and to ensure that
quality improvement becomes the job of every Xerox person.
2. To ensure that Xerox people, individually and collectively, provide our external
and internal customers with innovative products and services that fully satisfies
their existing and latent requirements.
3. To establish, as a way of life, management and work processes that enable all
Xerox people to continuously pursue quality improvement in meeting customer
requirements.
POINTS:
1

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Chapter 1 - Introduction to Quality
DIFFICULTY: Difficulty: Moderate
ACCREDITIN BUSPROG: Analytic
G STANDARDS DISC: Operations Management
:
TOPICS:
A-Head: The Evolution of Quality at Xerox
KEYWORDS: Bloom's: Comprehension
71. What were the four goals that the Leadership Through Quality process was directed at achieving in all Xerox
activities?
ANSWER:
Leadership Through Quality was directed at achieving four goals in all Xerox
activities:
1. Customer Goal: To become an organization with whom customers are eager
to do business.
2. Employee Goal: To create an environment where everyone can take pride in
the organization and feel responsible for its success.
3. Business Goal: To increase profits and presence at a rate faster than the
markets in which Xerox competes.
4. Process Goal: To use Leadership Through Quality principles in all Xerox
activities.
POINTS:
1
DIFFICULTY:
Difficulty: Moderate

ACCREDITING S BUSPROG: Analytic
TANDARDS:
DISC: Operations Management
TOPICS:
DESC.EVAB.17.01.09 Quality in Practice: The Evolution of Quality at Xerox
KEYWORDS:
Bloom's: Comprehension
72. How did Leadership Through Quality radically change the way Xerox did business?
ANSWER:
All activities, such as product planning, distribution, and establishing unit
objectives, began with a focus on customer requirements. Benchmarking —
identifying and studying the companies and organizations that best perform
critical business functions and then incorporating those organizations’ ideas into
the firm’s operations —became an important component of Xerox’s quality
efforts. Xerox benchmarked more than 200 processes with those of
noncompetitive companies. Measuring customer satisfaction and training were
important components of the program. Every month, 40,000 surveys were mailed
to customers, seeking feedback on equipment performance, sales, service, and
administrative support. Any reported dissatisfaction was dealt with immediately
and was usually resolved in a matter of days.When the program was instituted,
every Xerox employee worldwide, and at all levels of the company, received the
same training in quality principles. This training began with top management and
filtered down through each level of the firm.
POINTS:
1
DIFFICULTY: Difficulty: Moderate
ACCREDITIN BUSPROG: Analytic
G STANDARDS DISC: Operations Management
:
TOPICS:

DESC.EVAB.17.01.09 Quality in Practice: The Evolution of Quality at Xerox
KEYWORDS: Bloom's: Knowledge
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Chapter 1 - Introduction to Quality
73. Which was the first program at Xerox that linked managers with employees in a mutual problem-solving approach and
served as a model for other corporations?
ANSWER:
Xerox had always had good relationships with its unions. In 1980, the company
signed a contract with its principal union, the Amalgamated Clothing and Textile
Workers, encouraging union members’ participation in quality improvement
processes. It was the first program in the company that linked managers with
employees in a mutual problem-solving approach and served as a model for other
corporations.
POINTS:
1
DIFFICULTY: Difficulty: Easy
ACCREDITIN BUSPROG: Analytic
G STANDARDS DISC: Operations Management
:
TOPICS:
DESC.EVAB.17.01.09 Quality in Practice: The Evolution of Quality at Xerox
KEYWORDS: Bloom's: Knowledge
74. List some the most obvious impacts of the Leadership Through Quality program at Xerox.
ANSWER:
From the initiation of Leadership Through Quality until the point at which
Xerox’s Business Products and Systems organization won the Malcolm Baldrige

National Quality Award in 1989, some of the most obvious impacts of the
Leadership Through Quality program included the following:
1. Reject rates on the assembly line fell from 10,000 parts per million to 300 parts
per million.
2. Ninety-five percent of supplied parts no longer needed inspection; in 1989, 30
U.S. suppliers went the entire year defect-free.
3. The number of suppliers was cut from 5,000 to fewer than 500.
4. The cost of purchased parts was reduced by 45 percent.
5. Despite inflation, manufacturing costs dropped 20 percent.
6. Product development time decreased by 60 percent.
7. Overall product quality improved 93 percent.
POINTS:
1
DIFFICULTY: Difficulty: Moderate
ACCREDITIN BUSPROG: Analytic
G STANDARDS DISC: Operations Management
:
TOPICS:
DESC.EVAB.17.01.09 Quality in Practice: The Evolution of Quality at Xerox
KEYWORDS: Bloom's: Comprehension
75. What are the basic principles of Xerox which support its core value “We deliver quality and excellence in all we do”?
ANSWER:
The basic principles of Xerox which support its core value “We deliver quality
and excellence in all we do” are:
1. Customer-focused employees, accountable for business results, are
fundamental to our success.
2. Our work environment enables participation, speed, and teamwork based on
trust, learning, and recognition.
3. Everyone at Xerox has business objectives aligned to the Xerox direction. A
disciplined process is used to assess progress towards delivery of results.

4. Customer-focused work processes, supported by disciplined use of quality
tools, enable rapid changes and yield predictable business results.
5. Everyone takes responsibility to communicate and act on benchmarks and
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Chapter 1 - Introduction to Quality
knowledge that enable rapid change in the best interests of customers and
shareholders.
POINTS:
1
DIFFICULTY: Difficulty: Moderate
ACCREDITIN BUSPROG: Analytic
G STANDARDS DISC: Operations Management
:
TOPICS:
DESC.EVAB.17.01.09 Quality in Practice: The Evolution of Quality at Xerox
KEYWORDS: Bloom's: Knowledge
76. What are the key components of Xerox’s Lean Six Sigma?
ANSWER:
The key components of Xerox’s Lean Six Sigma are as follows:
1. Performance excellence process
• Supports clearer, simpler alignment of corporate direction to
individual objectives
• Emphasizes ongoing inspection/assessment of business priorities
• Clear links to market trends, benchmarking, and Lean Six Sigma
• Supports a simplified “Baldrige-type” business assessment model
2. DMAIC (define, measure, analyze, improve, control) process

• Based on industry-proven Six Sigma approach with speed and focus
• Four steps support improvement projects, set goals
• Used to proactively capture opportunities or solve problems
• Full set of lean and Six Sigma tools
3. Market trends and benchmarking
• Reinforces market focus and encourages external view
• Disciplined approach to benchmarking
• Establishes a common four-step approach to benchmarking
• Encourages all employees to be aware of changing markets
• Strong linkage to performance excellence process and DMAIC
4. Behaviors and leadership
• Reinforces customer focus
• Expands interactive skills to include more team effectiveness
• Promotes faster decision making and introduces new meeting tool
POINTS:
1
DIFFICULTY:
Difficulty: Moderate
ACCREDITING STANDAR BUSPROG: Analytic
DS:
DISC: Operations Management
TOPICS:
DESC.EVAB.17.01.09 Quality in Practice: The Evolution of Quality
at Xerox
KEYWORDS:
Bloom's: Knowledge
77. What do today’s Chinese quality systems strongly emphasize?
ANSWER:
Today’s Chinese quality systems strongly emphasize tools, methodology and
measurement, and place great importance on key quality management processes,

including self-inspection, traceability, and recruiting and training of workers.
POINTS:
1
DIFFICULTY: Difficulty: Easy
ACCREDITIN BUSPROG: Analytic
G STANDARDS DISC: Operations Management
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Which of the following perspectives of quality is most likely to be meaningful to people who work in marketing?

Which of the following is true of the transcendent or judgmental perspective of quality quizlet?

How well the product or service does what It is intended to do is known as?

Which of the following terms best represents a firm's ability to achieve market superiority *?