mgmt chpt 18 – Flashcards
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A product's quality is determined by its:
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durability, reliability, and serviceability
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The three principles that characterize TQM are continuous improvement, teamwork, and:
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customer focus and satisfaction
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__________ is a deviation in the form, condition, or appearance of a product from the quality standard for that product.
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Variation
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The term __________ refers to restoring customer satisfaction to strongly dissatisfied customers.
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service recovery
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When a manufacturer makes a product continuously, it is using:
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continuous-flow production
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The three basic measures of inventory are inventory turnover, average aggregate inventory, and:
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weeks of supply
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Downtime and lost efficiency are both examples of:
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setup costs
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____ is a measure of performance that indicates how many inputs it takes to produce or create an output.
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Productivity
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Which of the following shows the correct relationship for productivity, outputs, and inputs?
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productivity = (outputs/inputs)
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Why is productivity important to countries?
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Productivity matters because it produces a higher standard of living
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The American Society for Quality defines quality as ____.
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a product free of deficiencies, or the characteristics of a product or service that satisfy customers' needs
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Which of the following is an important characteristic of a quality product?
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reliability
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The product quality characteristic of ____ is defined as the mean time before product failure.
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durability
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Most companies define product ____ in terms of how easy or difficult it is to fix a product.
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serviceability
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A product's quality is determined by its ____.
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durability, reliability, and serviceability
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Which of the following statements about ISO 9000 is true?
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ISO 9000 certification may be suspended or canceled if companies fail a periodic audit following their initial certification.
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In TQM terms, ____ is an organizational goal to provide products or deliver services that meet or exceed customers' expectations.
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customer satisfaction
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According to the TQM strategy, what should be a company's primary goal?
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customer focus and satisfaction
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____ is a deviation in the form, condition, or appearance of a product from the quality standard for that product.
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Variation
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The first step in the service-profit chain is the establishment of ____.
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internal service quality
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One of the key assumptions in the service business is that success depends on how well employees deliver their services to customers. However, according to the service-profit chain, success depends on ____.
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how well employees are treated
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The lowest degree of processing occurs in ____ operations, where a company orders parts and assembles standardized products before receiving customer orders.
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make-to-stock
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Classifying manufacturing operations in terms of the amount of assembly that occurs after an order is received from customers is the same as classifying those operations in terms of ____.
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processing
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____ inventories include the basic inputs in a manufacturing process.
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Raw materials
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Which of the following is NOT a kind of inventory a manufacturer would keep in stock?
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nonrenewable materials
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According to the textbook, what should a business owner do with excess inventory?
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cut prices on the product to increase its sales
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Transaction costs and loss of customer goodwill are both examples of ____.
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stockout costs
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Materials requirement planning (MRP) is ____.
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used with dependent demand systems
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The three key parts of material requirement planning (MRP) are ____.
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the master production schedule, the bill of materials, and inventory records
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____ is a ticket-based system that indicates when to reorder inventory.
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Kanban
