SCM 300 Module 12 Exam 3
Quality - correct answer ✔✔the ability of a product or service to meet a consumer's expectations. Can
be related (but not limited to): design, durability, performance, materials used, aesthetics, delivery,
consistency, and associated service
What are some of the potential ingredients in a customer's quality definition? - correct answer
✔✔Products versus Services
Cars, Cell Phones, Clothing, Electronic devices
Restaurants, Medical, Retail, Entertainment
Marketing and Supply Chain ingredients
Ads and commercials, packaging
Materials, manufacturing, assembly, delivery, support...
Other considerations
Value: What do I get? / What did I pay?
Psychological: Cool factor, brand names, trust
Expectations versus Actual Output
differences between product industries and service industries - correct answer ✔✔1.Tangible Item vs.
Intangible Service (Piece of mind?)
2.Services cannot be inventoried.
3.Location and hours of operation can be very important
Consider Convenience and Accessibility in Healthcare, Grooming, Landscaping, Restaurants, Childcare,
Travel Related industries
4.Services are usually produced and received simultaneously
, 5.Services are highly visible
Examples: Haircuts, Car wash, Litigation, Teaching
Quality Management - Dealing with mistakes, How you make it is important
Importance of Hiring, Training, Fail-Safes, Customer Relations, etc.
6.Some service have very low barriers to entry/exit
how does the definition of quality differ from a product industry to a service industry? - correct answer
✔✔The definition of quality differ from a product industry to a service industry by in a service industry
you can see how things are being made and the customer can directly affect the quality of the item by
not being happy with the service that they are receiving. In a product industry these are items that can
be inventoried and can be touched.
Why is quality something that is important at every stage of the supply chain? - correct answer
✔✔Quality is important at every stage of the supply chain because:
• Strategy- branding, competitive priorities mix, locations
• Design- product, packaging, facilities/interface, processes
• Marketing- expectations levels, truth in advertising, image
• Pricing- understanding the marketing, functional cooperation
How does the number of components in a product affect our ability to control the reliability? - correct
answer ✔✔The larger the amount of components the greater the chance of defects.
If a product has many components, there are many more opportunities for failure
According to lecture: Is 99% reliability good? Can anything be 100% reliable? - correct answer ✔✔- 99%
reliability is outstanding, especially if the product has only the one component. Nothing is 100% reliable.
What are the benefits of ISO 9000 certification? - correct answer ✔✔• A set of standards for assuring
that the products and processes of an organization meet quality standards
• International Certification- Very important to any organization competing in international markets.
• Certification only, Compliance does not insure HIGH Quality
• May take up to 18 months to get certified (quality audit)