GMS401 TOTAL QUALITY MANAGEMENT
(TQM) SUPPLY CHAIN MANAGEMENT
(SCM) EXAM QUESTIONS WITH 100% VERIFIED
ANSWERS
1. Which of the following is a core principle of Total Quality Management?
A) Inspection at the end of the production line
B) Continuous improvement (Kaizen) ✔
C) Maximizing inventory levels
D) Separating quality from operations
Rationale: TQM emphasizes ongoing, incremental improvement involving all
employees. Inspection is reactive, not proactive; TQM builds quality in from the
start.
2. In supply chain management, the "bullwhip effect" refers to:
A) A sudden drop in demand at the retailer level
B) Small fluctuations in demand amplifying as you move upstream ✔
C) The effect of tariffs on global supply chains
D) A method for reducing lead times
Rationale: The bullwhip effect causes order variability to increase up the supply
chain due to demand forecast updating, order batching, price fluctuations, and
rationing games.
3. Who is credited with developing the 14 Points for Management in TQM?
A) Joseph Juran
,B) Philip Crosby
C) W. Edwards Deming ✔
D) Kaoru Ishikawa
Rationale: Deming’s 14 Points provide a framework for transforming management
practices to improve quality and productivity.
4. Which quality guru defined quality as "fitness for use"?
A) Deming
B) Juran ✔
C) Crosby
D) Feigenbaum
Rationale: Juran emphasized that quality means meeting customer needs through
product features and freedom from deficiencies.
5. A company wants to reduce supply chain risk by having multiple suppliers for a
critical component. This strategy is called:
A) Vertical integration
B) Single sourcing
C) Dual or multi-sourcing ✔
D) Postponement
Rationale: Multi-sourcing spreads risk; if one supplier fails, others can fill the gap.
Single sourcing increases dependency and risk.
6. What is the primary purpose of ISO 9001:2015?
A) Ensure environmental compliance
B) Provide a framework for quality management systems ✔
C) Set labor standards in supply chains
D) Certify product safety
,Rationale: ISO 9001 focuses on QMS requirements to consistently provide
products/services meeting customer and regulatory requirements.
7. The cost of quality (COQ) category that includes rework, scrap, and warranty
claims is called:
A) Prevention costs
B) Appraisal costs
C) Internal failure costs ✔
D) External failure costs
Rationale: Internal failure costs occur before products reach customers (scrap,
rework). External failure occurs after delivery (returns, lawsuits).
8. Which supply chain metric measures the percentage of customer orders
shipped on time and complete?
A) Inventory turnover
B) Cash-to-cash cycle
C) Perfect order fulfillment ✔
D) Days sales outstanding
Rationale: Perfect order fulfillment = on-time, complete, damage-free, correct
documentation. It’s a key customer service KPI.
9. Kaizen events typically involve:
A) Annual strategic planning meetings
B) Small, cross-functional teams focused on rapid improvement ✔
C) Outsourcing quality control
D) Increasing batch sizes
Rationale: Kaizen events are short-term (3–5 days) projects to eliminate waste in a
specific process area.
, 10. Which of the following is NOT a typical driver of supply chain performance?
A) Facilities
B) Inventory
C) Advertising agency creative direction ✔
D) Transportation
Rationale: Key drivers are facilities, inventory, transportation, information,
sourcing, and pricing. Advertising creative is marketing, not operational SCM
driver.
11. The "5 Whys" technique is used in TQM to:
A) Calculate process capability
B) Find root causes of problems ✔
C) Design control charts
D) Measure customer satisfaction
Rationale: Asking “why” repeatedly (typically five times) leads to the root cause
rather than just symptoms.
12. What is the main advantage of Vendor-Managed Inventory (VMI)?
A) Buyer controls all ordering decisions
B) Supplier manages inventory levels at buyer’s location ✔
C) Eliminates need for forecasts
D) Increases safety stock
Rationale: VMI shifts replenishment responsibility to the supplier, reducing
bullwhip effect and stockouts.
13. In TQM, PDCA stands for:
A) Plan, Direct, Check, Act
(TQM) SUPPLY CHAIN MANAGEMENT
(SCM) EXAM QUESTIONS WITH 100% VERIFIED
ANSWERS
1. Which of the following is a core principle of Total Quality Management?
A) Inspection at the end of the production line
B) Continuous improvement (Kaizen) ✔
C) Maximizing inventory levels
D) Separating quality from operations
Rationale: TQM emphasizes ongoing, incremental improvement involving all
employees. Inspection is reactive, not proactive; TQM builds quality in from the
start.
2. In supply chain management, the "bullwhip effect" refers to:
A) A sudden drop in demand at the retailer level
B) Small fluctuations in demand amplifying as you move upstream ✔
C) The effect of tariffs on global supply chains
D) A method for reducing lead times
Rationale: The bullwhip effect causes order variability to increase up the supply
chain due to demand forecast updating, order batching, price fluctuations, and
rationing games.
3. Who is credited with developing the 14 Points for Management in TQM?
A) Joseph Juran
,B) Philip Crosby
C) W. Edwards Deming ✔
D) Kaoru Ishikawa
Rationale: Deming’s 14 Points provide a framework for transforming management
practices to improve quality and productivity.
4. Which quality guru defined quality as "fitness for use"?
A) Deming
B) Juran ✔
C) Crosby
D) Feigenbaum
Rationale: Juran emphasized that quality means meeting customer needs through
product features and freedom from deficiencies.
5. A company wants to reduce supply chain risk by having multiple suppliers for a
critical component. This strategy is called:
A) Vertical integration
B) Single sourcing
C) Dual or multi-sourcing ✔
D) Postponement
Rationale: Multi-sourcing spreads risk; if one supplier fails, others can fill the gap.
Single sourcing increases dependency and risk.
6. What is the primary purpose of ISO 9001:2015?
A) Ensure environmental compliance
B) Provide a framework for quality management systems ✔
C) Set labor standards in supply chains
D) Certify product safety
,Rationale: ISO 9001 focuses on QMS requirements to consistently provide
products/services meeting customer and regulatory requirements.
7. The cost of quality (COQ) category that includes rework, scrap, and warranty
claims is called:
A) Prevention costs
B) Appraisal costs
C) Internal failure costs ✔
D) External failure costs
Rationale: Internal failure costs occur before products reach customers (scrap,
rework). External failure occurs after delivery (returns, lawsuits).
8. Which supply chain metric measures the percentage of customer orders
shipped on time and complete?
A) Inventory turnover
B) Cash-to-cash cycle
C) Perfect order fulfillment ✔
D) Days sales outstanding
Rationale: Perfect order fulfillment = on-time, complete, damage-free, correct
documentation. It’s a key customer service KPI.
9. Kaizen events typically involve:
A) Annual strategic planning meetings
B) Small, cross-functional teams focused on rapid improvement ✔
C) Outsourcing quality control
D) Increasing batch sizes
Rationale: Kaizen events are short-term (3–5 days) projects to eliminate waste in a
specific process area.
, 10. Which of the following is NOT a typical driver of supply chain performance?
A) Facilities
B) Inventory
C) Advertising agency creative direction ✔
D) Transportation
Rationale: Key drivers are facilities, inventory, transportation, information,
sourcing, and pricing. Advertising creative is marketing, not operational SCM
driver.
11. The "5 Whys" technique is used in TQM to:
A) Calculate process capability
B) Find root causes of problems ✔
C) Design control charts
D) Measure customer satisfaction
Rationale: Asking “why” repeatedly (typically five times) leads to the root cause
rather than just symptoms.
12. What is the main advantage of Vendor-Managed Inventory (VMI)?
A) Buyer controls all ordering decisions
B) Supplier manages inventory levels at buyer’s location ✔
C) Eliminates need for forecasts
D) Increases safety stock
Rationale: VMI shifts replenishment responsibility to the supplier, reducing
bullwhip effect and stockouts.
13. In TQM, PDCA stands for:
A) Plan, Direct, Check, Act
