VERIFIED CORRECT ANSWERS
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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.
Which service characteristic should be considered in the design process? - CORRECT ANSWER-It
must enable decentralized decisions.
A manufacturing conglomerate wants to enter the service business with a service that will allow
it to deploy its expertise with high-quality control measures.
Which type of service business should the company enter? - CORRECT ANSWER-Highly
customized
A manufacturing plant has implemented robust quality controls at the beginning of its
production process by installing equipment that inspects raw materials to ensure defects are
not passed on to the next stage of production.
Which quality principle is being used? - CORRECT ANSWER-Quality at the source
A kitchenware brand implemented statistical process control mechanisms in its manufacturing
facilities to improve quality.
What is a benefit that can be expected from the implementation? - CORRECT ANSWER-Ability to
increase manufacturing productivity and resource utilization