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MQM 227 Exam | 2025/2026 | 100 Questions | Lean Thinking, Quality Costs, Deming, Metrics, Kanban

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This expertly verified MQM 227 Exam document contains 100 multiple-choice questions with correct answers, fully aligned with the 2025/2026 Operations Management curriculum. It explores in detail the principles of quality management, lean systems, operational metrics, process control, and continuous improvement philosophies, with special emphasis on Deming’s 14 Points, Cost of Quality (COQ), and lean manufacturing techniques. Topics include: Business Metrics & Value Stream Mapping: Understanding what drives organizational performance, value-added vs. non-value-added steps Control Charts & Statistical Process Control (SPC): p-charts, x-bar/r charts, assignable vs. common cause variation Deming’s Philosophy: Deadly diseases, leadership vs. supervision, fear in the workplace, constancy of purpose, reliance on inspection Cost of Quality (COQ): Prevention, appraisal, internal and external failure costs, and the financial impact of poor quality Lean Thinking & 5S: Muda, flow, pull vs. push systems, inventory as problem exposure, Kanban, JIT, standardization Supply Chain & Inventory Concepts: Capacity, inventory levels, value generation, procurement integrity, supplier relationships Operations Philosophy & Strategic Quality Management: Decision responsibilities, quality tools, productivity metrics, WBS, kaizen This document is ideal for: Business, Industrial Engineering, and Supply Chain Management students Learners enrolled in Operations Management, Total Quality Management (TQM), or Lean Systems courses Students preparing for unit exams, course finals, or professional certifications involving operational excellence and quality systems Keywords: MQM 227, Deming, lean production, value stream mapping, cost of quality, p-chart, x-bar chart, Kanban, 5S, muda, process control, SPC, business metrics, internal failure, supplier partnerships, continuous improvement, productivity, push-pull system, appraisal costs, quality tools

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Uploaded on
November 27, 2025
Number of pages
31
Written in
2025/2026
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MQM 227 Exam Questions and Answers
100% Correct 2025 Expert Verified | Ace
the Test



What is a business metric?

a. A business metric is the purposeful conversion of conventional English

units of measurement to the metric system.

b. A business metric is an output device used to monitor worker

performance to a set of work standards.

c. A business metric is an important measurement used by a firm to

monitor their success. Different firms within the same industry will use the

same business metrics.

,d. A business metric is an important measurement used by a firm to

monitor their success. Different firms within the same industry may not

necessarily use the same business metrics. - 🧠 ANSWER ✔✔A business

metric is an important measurement used by a firm to monitor their

success. Different firms within the same industry may not necessarily use

the same business metrics.

Which of the following statements is incorrect?

a. A process can be "out of control" if its variability with respect to the

specification limits allows it to move sporadically within the specification

limits.

b. Process capability refers to the ability to consistently produce parts that

meet specification requirements (even though variability exists between

parts).

c. Being "in control" simply means that you are making parts in a consistent

manner.

d. A process can be "in control"/and still making defective products if the

machine is consistently producing parts but is unable to produce these

parts to specification limits. - 🧠 ANSWER ✔✔Process capability refers to

,the ability to consistently produce parts that meet specification

requirements (even though variability exists between parts).

Which of the following statements is incorrect?

a. Value stream mapping is essentially a process flowchart of the value

stream.

b. The value stream identifies all the processing steps and tasks

undertaken to complete a product or deliver a service from beginning to

end.

c. A typical value stream can include both value-added and non-value-

added processing steps and tasks.

d. The goal in studying the value stream is to eliminate the non-value-

adding processing steps.

e. Value is not what the customer says but what the company says. - 🧠

ANSWER ✔✔Value is not what the customer says but what the company

says.

Which of the following statements is incorrect?

a. When a sample falls outside the control limits, we have an indication that

some assignable cause is present.

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, b. Control limits specify extreme permissible part variations and should be

determined by part application.

c. In nearly all cases, the specification limits should not be on a control

chart.

d. Control limits may be considered warning or action limits and serve to

enable us to detect a shift in process so that corrective action may be taken

before the process starts making products that exceed maximum

specification limits. - 🧠 ANSWER ✔✔Control limits specify extreme

permissible part variations and should be determined by part application

???Which of the following statements is incorrect?

a. Prevention/Failure/Appraisal costs are an investment in the discovery,

incorporation, and maintenance of defect prevention disciplines for all

operations affecting the quality of product or service.

b. Prevention/Failure/Appraisal costs include the costs of inspections,

audits, field failure reports, equipment calibration, and associated supplies

and materials.

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