Exam 8: Supplier Quality Management

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Because of the nature of many cost accounting systems, quality costs are rarely aggregated into various overhead accounts, which would mask their real impact on the finances and operations of a company.

(True/False)
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A process that is stable and in control (i.e., no special and correctable causes of variation) can be expected to produce virtually all of its output within its natural tolerance limits.

(True/False)
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Which of the following is not one of Deming's 14 points?

(Multiple Choice)
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To be considered capable, the outputs from a process must fall outside upper and lower specification limits.

(True/False)
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Perhaps the most dramatic difference between traditional quality control methods and TQM thinking involves a shift from a process orientation to a product orientation.

(True/False)
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Supplier certification applies only to an entire company or product, rather than a specific part, process, or site.

(True/False)
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_____ results in waste because a valuable equipment or labor resource is not producing output.

(Multiple Choice)
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A grassroots TQM effort that emanates from the lower levels of the organization is doomed to failure without active and visible top management commitment and support.

(True/False)
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Companies that are able to commit the necessary resources to assess or certify supplier quality on their own will never accept ISO 9001 registration as proxy evidence of a supplier's quality management capability.

(True/False)
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_____ is the organized and systematic study of every element of cost in a part, material, process, or service to ensure that it fulfills its design and operational functions at the lowest possible total cost.

(Multiple Choice)
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Working with more suppliers allows the supply manager to concentrate on building trusting, collaborative relationships and supplier loyalty while improving quality in purchased goods and services.

(True/False)
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It is difficult to maintain a trusting and collaborative relationship and receive quality goods and services when suppliers do not enjoy working with the buying organization.

(True/False)
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The objective of supplier certification is to ensure that nonconforming items are not created or do not leave a supplier's facility.

(True/False)
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Designed-in systemic variation is a managerial concern, not a labor issue.

(True/False)
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