COB 300 Operations Test 2 (Pal) Exam –
Questions and Answers
Dimensions of Quality (Goods) - -Performance, Aesthetics, Features, Conformance,
Reliability, Durability, Perceived quality, Servicabliity
-Dimensions of Quality (Services) - -Convenience, Reliability, Responsiveness,
Time, Assurance, Courtesy, Tangibles, Consistency
-Benefits of Good Quality - -Enhanced reputation for quality, ability to command
premium prices, increased market share, greater customer loyalty, lower liability
costs, fewer production or service problems, lower production costs, higher profits
-Consequences of Poor Quality - -Loss of business, liability, lower productivity,
higher costs
-Prevention Costs - -reducing the potential for defects; proactive
-Appraisal Costs - -Evaluating products; inspection, testing (destructive vs. non),
auditing
-Internal failure costs - -costs of producing defective parts or service
-External failure costs - -discovered after delivery; returned goods, liability claims
-Quality Awards - -Malcolm Baldrige National Quality Award (MBNQA), European
Quality Award (EQA), Deming Prize
-Quality Standards - -ISO 9000, etc.
-Principles of TQM - -1. Customer Focus (determines what quality is)
2. Continuous Process Improvement (try to eliminate variability)
3. Total Involvement (all levels)
-Six Sigma Goals - -Reduce process variation to the point where only 3.4 defects
per million are produced; provide framework and methodologies to analyze &
evaluate business processes & reduce waste (lean process)
-Six Sigma Methodologies - -Current product/service: DMAIC (Define, Measure,
Analyze, Improve, Control)
New product/service: DMADV (Define, Measure, Analyze, Design, Verify)
-Kano Model (3 levels) - -1st Level: Must-Be (credit card acceptance in chain stores)
2nd Level: Differentiator (quality merch low price)
3rd Level: Pleasant Surprise (free stuff on sale day)
-Process Improvement Approaches - -BPA (Business Process Analysis)- cross
functional boundaries; incremental changes to transitions between departments
Questions and Answers
Dimensions of Quality (Goods) - -Performance, Aesthetics, Features, Conformance,
Reliability, Durability, Perceived quality, Servicabliity
-Dimensions of Quality (Services) - -Convenience, Reliability, Responsiveness,
Time, Assurance, Courtesy, Tangibles, Consistency
-Benefits of Good Quality - -Enhanced reputation for quality, ability to command
premium prices, increased market share, greater customer loyalty, lower liability
costs, fewer production or service problems, lower production costs, higher profits
-Consequences of Poor Quality - -Loss of business, liability, lower productivity,
higher costs
-Prevention Costs - -reducing the potential for defects; proactive
-Appraisal Costs - -Evaluating products; inspection, testing (destructive vs. non),
auditing
-Internal failure costs - -costs of producing defective parts or service
-External failure costs - -discovered after delivery; returned goods, liability claims
-Quality Awards - -Malcolm Baldrige National Quality Award (MBNQA), European
Quality Award (EQA), Deming Prize
-Quality Standards - -ISO 9000, etc.
-Principles of TQM - -1. Customer Focus (determines what quality is)
2. Continuous Process Improvement (try to eliminate variability)
3. Total Involvement (all levels)
-Six Sigma Goals - -Reduce process variation to the point where only 3.4 defects
per million are produced; provide framework and methodologies to analyze &
evaluate business processes & reduce waste (lean process)
-Six Sigma Methodologies - -Current product/service: DMAIC (Define, Measure,
Analyze, Improve, Control)
New product/service: DMADV (Define, Measure, Analyze, Design, Verify)
-Kano Model (3 levels) - -1st Level: Must-Be (credit card acceptance in chain stores)
2nd Level: Differentiator (quality merch low price)
3rd Level: Pleasant Surprise (free stuff on sale day)
-Process Improvement Approaches - -BPA (Business Process Analysis)- cross
functional boundaries; incremental changes to transitions between departments
