MGMT 339 Exam 2 Study Guide With
Complete Solutions
Quality - ANSWER The ability of a product or service to consistently meet
or exceed customer expectations;
For a decade or so, this was an important focal point in business. After a
while, this emphasis began to fade as other concerns took precedence.
There has been a recent resurgence in attention to this given recent
experiences with the costs and adverse attention associated with highly
visible quality failures:
1. Auto recalls
2. Toys
3. Produce
4. Dog food
5. Pharmaceuticals
Dimensions of Service Quality - ANSWER 1. Assurance
2. Consistency
3. Convenience
4. Courtesy
5. Reliability
6. Responsiveness
7. Tangibles
8. Time
Convenience - ANSWER the availability and accessibility of the service
, Reliability - ANSWER ability to perform a service dependably, consistently,
and accurately
Responsibilities - ANSWER willingness to help customers in unusual
situations and to deal with problems
Time - ANSWER the speed with which the service is delivered
Assurance - ANSWER knowledge exhibited by personnel and their ability
to convey trust and confidence
Courtesy - ANSWER the way customers are treated by employees
Tangibles - ANSWER the physical appearance of facilities, equipment,
personnel, and communication materials
Consistency - ANSWER the ability to provide the same level of good quality
repeatedly
Costs of Quality - ANSWER 1. Appraisal Costs
2. Prevention Costs
3. Failure Costs (both internal and external)
Appraisal Costs - ANSWER Costs of activities designed to ensure quality
or uncover defects
Prevention Costs - ANSWER All TQ training, TQ planning, customer
assessment, process control, and quality improvement costs to prevent
defects from occurring
Failure Costs - ANSWER costs incurred by defective parts/products or
faulty services.
Internal Failure Costs - ANSWER Costs incurred to fix problems that are
detected before the product/service is delivered to the customer.
External Failure Costs - ANSWER All costs incurred to fix problems that
are detected after the product/service is delivered to the customer
Types of Variation - ANSWER 1. Random (Common Cause) Variation
Complete Solutions
Quality - ANSWER The ability of a product or service to consistently meet
or exceed customer expectations;
For a decade or so, this was an important focal point in business. After a
while, this emphasis began to fade as other concerns took precedence.
There has been a recent resurgence in attention to this given recent
experiences with the costs and adverse attention associated with highly
visible quality failures:
1. Auto recalls
2. Toys
3. Produce
4. Dog food
5. Pharmaceuticals
Dimensions of Service Quality - ANSWER 1. Assurance
2. Consistency
3. Convenience
4. Courtesy
5. Reliability
6. Responsiveness
7. Tangibles
8. Time
Convenience - ANSWER the availability and accessibility of the service
, Reliability - ANSWER ability to perform a service dependably, consistently,
and accurately
Responsibilities - ANSWER willingness to help customers in unusual
situations and to deal with problems
Time - ANSWER the speed with which the service is delivered
Assurance - ANSWER knowledge exhibited by personnel and their ability
to convey trust and confidence
Courtesy - ANSWER the way customers are treated by employees
Tangibles - ANSWER the physical appearance of facilities, equipment,
personnel, and communication materials
Consistency - ANSWER the ability to provide the same level of good quality
repeatedly
Costs of Quality - ANSWER 1. Appraisal Costs
2. Prevention Costs
3. Failure Costs (both internal and external)
Appraisal Costs - ANSWER Costs of activities designed to ensure quality
or uncover defects
Prevention Costs - ANSWER All TQ training, TQ planning, customer
assessment, process control, and quality improvement costs to prevent
defects from occurring
Failure Costs - ANSWER costs incurred by defective parts/products or
faulty services.
Internal Failure Costs - ANSWER Costs incurred to fix problems that are
detected before the product/service is delivered to the customer.
External Failure Costs - ANSWER All costs incurred to fix problems that
are detected after the product/service is delivered to the customer
Types of Variation - ANSWER 1. Random (Common Cause) Variation
