Operations Management - Qp6

Both `E' and `e' refer to elasticity, which is a measure of how responsive the quantity demanded or supplied of a good is to changes in price. When the price of a good changes, both `E' and `e' will be influenced. `E' represents price elasticity of demand, which measures the responsiveness of quantity demanded to changes in price. `e' represents price elasticity of supply, which measures the responsiveness of quantity supplied to changes in price. Therefore, it is true that both `E' and `e' are influenced by price.

The Kano model and Maslow's hierarchy of needs both provide frameworks for understanding human behavior and motivation. Maslow's hierarchy suggests that individuals have a set of needs that must be fulfilled in a specific order, starting with basic physiological needs and progressing to higher-level needs such as self-actualization. Similarly, the Kano model categorizes customer needs into different levels of importance and satisfaction. It recognizes that certain needs are basic and must be met to achieve customer satisfaction, while others are more aspirational and can lead to delight. Therefore, the statement that the Kano model can be thought of in much the same way as Maslow's hierarchy of needs is true.

Kano disagrees with the statement that the PDCA cycle is a universal improvement methodology. This implies that Kano believes there are other improvement methodologies that may be more effective or suitable in certain situations. Therefore, the correct answer is False.

Quality costs can be classified into failure costs and appraisal costs. Failure costs refer to the costs incurred due to defects or errors in the product or service, including the cost of rework, warranty claims, and customer complaints. Appraisal costs, on the other hand, are the costs associated with inspecting, testing, and evaluating the product or service to ensure that it meets the required quality standards. These costs include the cost of quality control activities, such as inspections, audits, and testing. By classifying quality costs into these categories, organizations can identify areas where improvements are needed and allocate resources accordingly.

TQM stands for Total Quality Management. This approach focuses on continuously improving the quality of products, services, and processes within an organization. It involves the participation of all employees in identifying and solving problems, as well as the use of data and analysis to make informed decisions. TQM aims to enhance customer satisfaction and loyalty by delivering high-quality products and services that meet or exceed customer expectations.

The statement is false because there is no such standard as International Standard 8000.

Pareto analysis is indeed known by several names, including ABC analysis and the 80/20 rule. This analysis technique is based on the principle that a small number of factors contribute to a large percentage of the overall effect. The 80/20 rule states that approximately 80% of the outcomes come from 20% of the inputs. Therefore, the given answer, "True," is correct.

The statement is true because a measles chart is indeed a special form of histogram that shares similarities with the flip-chart procedure.

Statistical process control (SPC) aims at achieving good quality during manufacture through prevention rather than detection. SPC involves monitoring and controlling a process to ensure that it operates within defined limits and meets specified quality standards. By identifying and addressing potential issues before they occur, SPC helps to prevent defects and maintain consistent quality throughout the manufacturing process. Therefore, the statement that SPC aims at achieving good quality through detection rather than prevention is incorrect.

Process capability refers to the match between the location of the upper and lower process control limits (UCL and LCL) and the specification limits USL and LSL (also known as tolerance limits UTL and LTL). This statement is true because process capability is a measure of how well a process can perform within the specified limits. If the process control limits align with the specification limits, it indicates that the process is capable of consistently producing products or services that meet the desired specifications.

The statement is true because the cost of quality (CoQ) is a measure that encompasses all the costs associated with preventing and fixing defects in a product or service. This includes the costs of implementing quality control measures, conducting inspections, training employees, and addressing customer complaints. By quantifying these costs, organizations can assess the financial impact of quality-related activities and make informed decisions to improve their processes and reduce defects.

Quantity function deployment (QFD) is not a tool used to aid the product design and development process. It is actually a tool used to translate customer requirements into specific product design characteristics. Therefore, the correct answer is False.