QUESTIONS AND CORRECT ANSWERS
What is a challenge associated with assessing service quality? - CORRECT
ANSWER Outcome defects are not easy to measure.
Which Six Sigma step requires a firm to create goals, measures, and action plans for projects
to identify improvements that will make a significant impact on profitability and achieve
strategic objectives? - CORRECT ANSWER Align
Why would a quality manager use a flowchart in the production process? - CORRECT
ANSWER To identify the relationships between functions
Which role do employees play as stakeholders in total quality management operations? -
CORRECT ANSWER They aim to create customer satisfaction.
Which cost is associated with a firm's investment to achieve superior performance through
ongoing process improvements? - CORRECT ANSWER Quality assurance cost
Which approach does a firm use when it buys raw materials from suppliers in various
locations, manufactures consumer products in Asia, and then ships the finished products to its
distribution centers in the United States? - CORRECT ANSWER Global supply chain
A company develops a product that is highly tailored to meet certain customer needs.
How has the quality of design for the selected product been applied? - CORRECT
ANSWER The product has specific characteristics designed into it.
An investment bank wants to launch a new financial service for a specific income group
using the standard service design process.
, What is the expected deliverable of the service specification stage? - CORRECT
ANSWER Defining the design requirements of the financial service
To improve quality standards, a manufacturing unit uses a statistical process control chart
with one standard deviation control limit to track the vibration levels of a factory machine.
What is a characteristic of this control chart? - CORRECT ANSWER It will be
sensitive to small changes in machine vibration.
A supplier for an automobile company uses quality-at-source principles and methods across
its value chain.
How will this impact the company? - CORRECT ANSWER Just-in-time deliveries can
be planned.
An information technology firm wants to launch a new service using the standard service
design process. The firm has defined the performance benefits and performance requirements
of the new service.
What should the firm focus on? - CORRECT ANSWER Service delivery
A logistics service provider wants to plot and track its on-time shipments to improve
customer service using a statistical control chart. The average on-time performance is 99.9
percent, and the chart should cover 68 percent of occurrence probability within the control
limits.
Which standard deviation should be used in the chart? - CORRECT ANSWER 1
An insurance company wants to launch a new service for its customers using service quality
standards. This service will be managed by its field sales force.