TORONTO METROPOLITAN UNIVERSITY
GMS401 FINAL EXAM PRACTICE
QUESTIONS AND ANSWERS
Quality - Answer✔️✔️-the ability of a product or service to meet
customer needs
4 Categories of Cost of Quality - Answer✔️✔️-1. Prevention costs
2. Appraisal costs
3. Internal failure
4. External costs
Prevention costs - Answer✔️✔️-reducing the potential for defects
(training)
Appraisal costs - Answer✔️✔️-evaluating products, parts and services
(testing, inspection)
Internal failure - Answer✔️✔️-producing defective parts or service
before delivery (rework, scrap, downtime)
External costs - Answer✔️✔️-costs that occur after delivery of
defective parts or services (returned goods, liability, costs to society)
ISO 9000 - Answer✔️✔️-A set of quality standards developed by the
International Organization for Standardization (ISO). Focus is to
establish quality management procedures through leadership,
detailed documentation, work instructions and record keeping.
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ISO 14000 - Answer✔️✔️-A series of environmental management
standards that contain 5 core elements: environment management,
auditing, performance evaluation, labelling and life cycle
assessment
Total Quality Management (TQM) - Answer✔️✔️-management of an
entire organization so that it excels in all aspects of products and
services that are important to the customer
Deming's 14 points for implementing quality improvement -
Answer✔️✔️-1. create consistency of purpose
2. lead to promote change
3. build quality into the product
4. build long-term relationships based on performance
5. continuously improve product, quality and service
6. start training
7. emphasize leadership
8. drive out fear
9. break down barriers between departments
10. stop haranguing (lecture) workers
11. support, help, improve
12. remove barriers to pride in work
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13. institute a vigorous program of education and self-improvement
14. put everybody in the company to work on the transformation
7 Concepts of TQM - Answer✔️✔️-1. continuous improvement
2. six stigma
3. employee empowerment
4. benchmarking
5. just-in-time (JIT)
6. taguchi concepts
7. knowledge of TQM tools
PDCA - Answer✔️✔️-a continuous improvement model that involves 4
stages: plan, do, check, act
Six Stigma - Answer✔️✔️-a program to save time, improve quality
and lower cots (process with 99.9997% capability). Developed by
Motorola in 1980s
DMAIC - Answer✔️✔️-Six stigma improvement model:
1. define (critical outputs and identify gaps for improvement)
2. measure (the work and collect process data)
3. analyze (the data)
4. improve (the process)
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5. control (the new processes to make sure new performance is
maintained)
Employee Empowerment - Answer✔️✔️-enlarging employee jobs so
that the added responsibility and authority is moved to the lowers
level possible in the organization
Quality circle - Answer✔️✔️-a group of employees meeting regularly
with a facilitator to solve work-related problems in their work area
Benchmarking - Answer✔️✔️-selecting demonstrated standard of
performance that represents the very best performance for a
process or an activity
Steps to developing benchmarks - Answer✔️✔️-1. determine what to
benchmark
2. form a benchmark team
3. identify benchmarking partners
4. collect and analyze benchmarking information
5. take action to match or exceed the benchmark
3 ways JIT is related to quality - Answer✔️✔️-1. JIT cuts the cost of
quality
2. JIT improves quality
3. better quality means less inventory and a better, easier-to-employ
JIT system
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