Exam 8: Supplier Quality Management

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In _____, there is an intense focus on identifying and eliminating common causes of waste that add cost, time, and effort to the product or service while not adding value to the customer.

(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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An effective supplier quality manual will contain all of the following except _____.

(Multiple Choice)
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Within its supply chains, supply management does not merely buy parts or services from suppliers - it buys (and sometimes must help manage and improve) current and anticipated supplier capabilities that will result in quality products and services.

(True/False)
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_____ are those costs incurred when production processes are designed or modified to prevent defects from occurring in the first place.

(Multiple Choice)
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The TQM-focused organization must look at increasing process variation and seeking innovation in both product and process.

(True/False)
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One property of normally distributed data is that 99.7 percent of all possible observations of process output occur within plus-or-minus standard deviations of the process mean.

(True/False)
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Which of the following is not an example of a prevention cost?

(Multiple Choice)
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_____ results in waste because a valuable equipment or labor resource is not producing output.

(Multiple Choice)
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_____ occurs whenever value is added to a product or service as it moves through transformation processes in the supply chain.

(Multiple Choice)
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The _____ process capability index quantifies the relationship between the process's natural tolerance limits and the product's specifications using a two-sided approach, regardless of process centering.

(Multiple Choice)
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The extensive use of corrective action requests supports prevention of nonconforming defects.

(True/False)
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Many suppliers are hesitant to challenge excessive specifications for fear of losing the bid.

(True/False)
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All of the following are examples of external failure costs except _____.

(Multiple Choice)
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