SCMN 4770 Exam 3 Exam with complete solutions latest version.pdf, Exams
of Supply Management
Quality - ANSWERQuality = meeting or exceeding customer requirements.
Quality Product/Service - ANSWERA "quality" product/service satisfies what
the customer expects.
Customer Specifications - ANSWERCustomer examples: minimum weight,
purity, no surface flaws, size within tolerance.
Seller Specifications - ANSWERSeller examples: maximum weight or purity (to
avoid giving away too much).
Poor Quality Consequences - ANSWERPoor quality = high costs (waste,
rework, unhappy customers).
Cost of Quality - ANSWERFour types of cost: Prevention costs, Appraisal costs,
Internal failure costs, External failure costs.
Prevention Costs - ANSWERTraining, better equipment, design improvements.
, Appraisal Costs - ANSWERInspection/testing.
Internal Failure Costs - ANSWERScrap or rework found before shipping.
External Failure Costs - ANSWERWarranty claims, returns, brand damage.
Six Sigma Quality - ANSWERStrategy to make processes nearly perfect.
Six Sigma Goal - ANSWERGoal: no more than 3.4 defects per million
opportunities (99.99966% good).
Defect Definition - ANSWERA defect = anything that doesn't meet customer
expectations.
Six Sigma Origin - ANSWERBegan at Motorola in the 1980s.
Six Sigma Pioneers - ANSWERPioneers: Bill Smith & Mikel Harry.
Customer Satisfaction Equation - ANSWERCustomer satisfaction = quality +
price + delivery.
DMAIC Process - ANSWERDefine - identify the problem and customer needs.
Measure - collect data on current performance. Analyze - find root causes of
defects. Improve - fix the causes and optimize the process. Control - maintain
the new standard and monitor it.
of Supply Management
Quality - ANSWERQuality = meeting or exceeding customer requirements.
Quality Product/Service - ANSWERA "quality" product/service satisfies what
the customer expects.
Customer Specifications - ANSWERCustomer examples: minimum weight,
purity, no surface flaws, size within tolerance.
Seller Specifications - ANSWERSeller examples: maximum weight or purity (to
avoid giving away too much).
Poor Quality Consequences - ANSWERPoor quality = high costs (waste,
rework, unhappy customers).
Cost of Quality - ANSWERFour types of cost: Prevention costs, Appraisal costs,
Internal failure costs, External failure costs.
Prevention Costs - ANSWERTraining, better equipment, design improvements.
, Appraisal Costs - ANSWERInspection/testing.
Internal Failure Costs - ANSWERScrap or rework found before shipping.
External Failure Costs - ANSWERWarranty claims, returns, brand damage.
Six Sigma Quality - ANSWERStrategy to make processes nearly perfect.
Six Sigma Goal - ANSWERGoal: no more than 3.4 defects per million
opportunities (99.99966% good).
Defect Definition - ANSWERA defect = anything that doesn't meet customer
expectations.
Six Sigma Origin - ANSWERBegan at Motorola in the 1980s.
Six Sigma Pioneers - ANSWERPioneers: Bill Smith & Mikel Harry.
Customer Satisfaction Equation - ANSWERCustomer satisfaction = quality +
price + delivery.
DMAIC Process - ANSWERDefine - identify the problem and customer needs.
Measure - collect data on current performance. Analyze - find root causes of
defects. Improve - fix the causes and optimize the process. Control - maintain
the new standard and monitor it.
