Test Bank For Operations Management 11th Edition By Jay Heizer

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Test Bank For Operations Management 11th Edition By Jay Heizer

Chapter 6 Managing Quality

Section 1 Quality and Strategy

1) Managers at Arnold Palmer Hospital take quality so seriously that the hospital typically is a national leader in several quality areas–so that continuous improvement is no longer necessary.
Answer: FALSE
Diff: 2
Key Term: Quality
Objective: LO1
Learning Outcome: Discuss the total cost of quality and compare the common methods of managing quality

2) An improvement in quality must necessarily increase costs.
Answer: FALSE
Diff: 1
Key Term: Quality
Objective: LO1
Learning Outcome: Discuss the total cost of quality and compare the common methods of managing quality

3) Which of the following statements regarding Arnold Palmer Hospital is FALSE?
A) The hospital uses a wide range of quality management techniques.
B) The culture of quality at the hospital includes employees at all levels.
C) The hospital scores very highly in national studies of patient satisfaction.
D) The hospital’s high quality is measured by low readmission rates, not patient satisfaction.
E) The design of patient rooms, even wall colors, reflects the hospital’s culture of quality.
Answer: D
Diff: 2
Objective: LO1
Learning Outcome: Discuss the total cost of quality and compare the common methods of managing quality

4) Arnold Palmer Hospital uses which of the following quality management techniques?
A) Pareto charts
B) flowcharts
C) benchmarking
D) just-in-time
E) The hospital uses all of the above techniques.
Answer: E
Diff: 1
Objective: LO1
Learning Outcome: Discuss the total cost of quality and compare the common methods of managing quality
5) Companies with the highest levels of quality are how many times more productive than their competitors with the lowest quality levels?
A) 2
B) 3
C) 4
D) 5
E) None of the above because quality has no impact on productivity (units/labor hr.).
Answer: D
Diff: 3
Key Term: Quality
Objective: LO1
Learning Outcome: Discuss the total cost of quality and compare the common methods of managing quality

6) A successful quality strategy features which of the following elements?
A) an organizational culture that fosters quality
B) an understanding of the principles of quality
C) engaging employees in the necessary activities to implement quality
D) A and C
E) A, B, and C
Answer: E
Diff: 2
Key Term: Quality
Objective: LO1
Learning Outcome: Discuss the total cost of quality and compare the common methods of managing quality

7) Quality can improve profitability by reducing costs. Which of the following is not an aspect of reduced costs by quality improvements?
A) flexible pricing
B) increased productivity
C) lower rework and scrap costs
D) lower warranty costs
E) All of the above are aspects of reduced costs by quality improvements.
Answer: A
Diff: 2
Key Term: Quality
Objective: LO1
Learning Outcome: Discuss the total cost of quality and compare the common methods of managing quality

8) Arnold Palmer Hospital uses ________ to seek new ways to reduce readmission rates.
Answer: continuous improvement
Diff: 2
Key Term: Global company profile