Total Quality Management Questions & Answers for Exams on “TQM – Definitions of Other Key Words”.
1. The two categories of products are _____ and _____
a) Goods, Services
b) Media, Education
c) Pencil, Car
d) Hospitality, Calculator
Answer: a
Clarification: Product is the output of any process. Goods and Services are the two types of products. A pencil, car, and a calculator are types of Goods. Similarly, media, hospitality, and education fall under the category of Services.
2. Which of the following does not fit in the category of Goods?
a) Cell phone
b) Television
c) Insurance
d) Bike
Answer: c
Clarification: Cell phones, television, and bike are considered as Goods. Insurance fits into the category of Service.
3. Which of the following does not fit in the category of Services?
a) Banking
b) Transportation
c) Pen
d) Health care industries
Answer: c
Clarification: Banking, transportation and health care industries come under the Service category of a product. A pen fits into the Goods category of a product.
4. Service also includes support activities within companies, e.g., payroll preparation, secretarial support, and plant maintenance.
a) True
b) False
Answer: a
Clarification: Service is performed for someone else. Service also includes support activities within companies, e.g., payroll preparation, secretarial support, and plant maintenance.
5. The property that is possessed with a product and that is intended to meet certain customers’ needs and thereby provide customer satisfaction is called _________
a) Product Tree
b) Product Feature
c) Product Cycle
d) Product Design
Answer: b
Clarification: The property that is possessed by a product and that is intended to meet certain customer’s needs and thereby provide customer satisfaction is called a product feature. It refers to the quality of design.
6. Which of the following does not fit in the category of Product Feature?
a) Fuel consumption of a vehicle
b) Dimensions of a mechanical component
c) The owner of the product
d) The viscosity of a chemical
Answer: c
Clarification: Fuel consumption of a vehicle, dimensions of a mechanical component, the viscosity of a chemical, the uniformity of the voltage of an electric power supply are some of the examples of product features. The owner of the product is not a product feature.
7. Someone who receives or is affected by the product or process is called a _______
a) Customer
b) Manager
c) Founder
d) Co-founder
Answer: a
Clarification: The customer is someone who receives or is affected by the product or process. It can be a person or it can also be a company.
8. The two types of customers are ______ and ______
a) Founder, Co-founder
b) Internal, External
c) Government, People
d) CEO, CFO
Answer: b
Clarification: Customers can be either internal or external. The customers outside the company who pay for the goods or services offered are called external customers. The customers who are related to the company and who may or may not pay for the goods or services offered are called internal customers.
9. Which of the following does not fit in the category of External Customers?
a) Clients/end users who buy the product
b) Government regulatory bodies
c) Manager of a company
d) Public
Answer: c
Clarification: The manager of the company is an internal customer. He doesn’t make any purchase for the goods or services offered by the company but his presence and his responsibilities hold tremendous importance to the company.
10. Which of the following does not fit in the category of Internal Customers?
a) Stakeholders
b) Public
c) Shareholders
d) Employees of a company
Answer: b
Clarification: The public pays for the service they receive and hence they are external customers. The stakeholders and shareholders are indirect internal customers. The employees of the company are direct internal customers.
11. Sam purchased a pen from the market. The pen was not working clearly, legibly and smoothly. Where did the manufacturer fail in terms of satisfying the needs of the customer?
a) The manufacturer failed to satisfy the implied need of the product
b) The manufacturer failed to impress his boss
c) The manufacturer failed to maintain the reputation of the company
d) The manufacturer failed to impress his supplier
Answer: a
Clarification: The manufacturer failed to satisfy the implied need of the product. Every product has certain stated and implied needs associated with it. The manufacturer may have failed to impress his boss, maintain the reputation of the company but all these failures do not have a relation with customer satisfaction. The manufacturer could have actually complained to the supplier if the raw materials were found defective.
12. The stated needs are the needs which the customer specifies for procurement of goods or services.
a) True
b) False
Answer: a
Clarification: For example, the price range of a car is a stated need. Similarly, a specific function of the car can also be considered to be a stated need of the customer.
13. The state of affairs in which customers feel that their expectations have been met by the product features is known as ______________
a) Customer Satisfaction
b) Customer Attraction
c) Customer Loyalty
d) Customer Reputation
Answer: a
Clarification: The state of affairs in which customers feel that their expectations have been met by the product features is known as customer satisfaction. A newly bought laptop performing all its intended functions will bring in customer satisfaction.
14. The state of affairs in which deficiencies (in goods or services) result in customer annoyance and complaints is known as ______________
a) Customer Compliance
b) Customer Needs
c) Customer Trust
d) Customer Dissatisfaction
Answer: d
Clarification: The state of affairs in which deficiencies (in goods or services) result in customer annoyance, complaints, claims, and so on is known as customer dissatisfaction. A newly bought mobile phone with ‘hanging problem’ will result in customer dissatisfaction.
15. Which of the following is not a measure of Product Deficiency?
a) Errors
b) Defects
c) Off-specification
d) Mass of the mobile phone
Answer: d
Clarification: A product deficiency is a product failure that results in product dissatisfaction. Deficiencies are stated in different units, such as errors, failures, defects, off-specification, etc. Freedom from deficiencies refers to the quality of conformance.
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