Chapter 6 - Managing Supplier Quality in the Supply

Chain Quiz

Easy Level (25 Questions)

1. What is a supply chain according to Corey Billington?
A. A single manufacturing facility
B. A network for procurement, transformation, and delivery
C. A customer service system
D. A financial management tool

2. What does Hewlett Packard focus on in its supply chain?

A. Reducing customer satisfaction
B. Improving quality performance
C. Limiting supplier relationships
D. Increasing inventory levels

3. What is the value chain’s purpose per Michael Porter?

A. To identify activities that reduce costs and boost competitiveness
B. To increase bureaucratic processes
C. To focus only on marketing
D. To simplify supplier audits

4. Which is a core activity in the value chain?

A. Accounting
B. Legal services
C. Inbound logistics
D. Advertising
5. What are non-value-chain activities called?
A. Core activities
B. Hidden factory
C. Customer chain
D. Supplier alliances

6. In the chain of customers, who is your customer if you work at workstation

4?
A. The raw material supplier
B. Workstation 5
C. The final consumer
D. The logistics team

7. What is a goal of supply chain management?

A. Improve quality and on-time performance
B. Increase supplier numbers
C. Reduce customer contact
D. Limit logistics focus

8. What is a trend in supplier relationships?

A. Working with more suppliers
B. Developing closer relationships with fewer suppliers
C. Avoiding supplier communication
D. Increasing supplier audits

9. What is single sourcing?

A. Using one supplier for a component
B. Using multiple suppliers for variety
C. Auditing all suppliers
D. Certifying suppliers annually
[Link] is dual sourcing?
A. Using one supplier only
B. Reducing suppliers to a few
C. Evaluating all suppliers equally
D. Avoiding supplier contracts

[Link] does supplier evaluation involve?

A. Ignoring quality metrics
B. Rating suppliers on quality and capability
C. Reducing supplier contact
D. Simplifying logistics

[Link] is a common sole-source filter?

A. Supplier audits
B. ISO 9000:2008
C. Supplier training
D. Customer feedback

[Link] is a supplier audit?

A. A review of supplier quality and processes
B. A training program
C. A financial analysis
D. A customer survey

[Link] is a drawback of single sourcing?

A. Increased supplier variety
B. Risk of supply interruption
C. Simplified logistics
D. Reduced quality focus
[Link] caused General Motors’ shutdown in the example?
A. Single sourcing from Delphi
B. Dual sourcing issues
C. Supplier audits
D. Customer complaints

[Link] is electronic data interchange (EDI)?

A. A supplier audit tool
B. A system linking supplier and customer data
C. A quality certification
D. A logistics contract

[Link] many suppliers does Xerox use after single sourcing?

A. 5,000
B. 300
C. 1,000
D. 10,000

[Link] is vendor-managed inventory (VMI)?

A. Customer-managed stock
B. Suppliers managing their own orders
C. Supplier audits
D. Customer certifications

[Link] is the first step in supplier development?

A. Identify critical products
B. Form cross-functional teams
C. Meet supplier management
D. Monitor progress
[Link] does ISO/TS 16949 align?
A. Customer feedback systems
B. Automotive quality requirements
C. Supplier pricing models
D. Logistics schedules

[Link] developed ISO/TS 16949?

A. Suppliers only
B. International Automotive Task Force
C. ISO auditors
D. Customer groups

[Link] is acceptance sampling?

A. Auditing all suppliers
B. Verifying incoming goods’ quality
C. Training suppliers
D. Certifying processes

[Link] is acceptance sampling needed?

A. With unproven suppliers
B. For all suppliers always
C. Only for certified suppliers
D. During supplier audits

[Link] is supply chain quality management (SCQM)?

A. A supplier audit system
B. A systems approach to upstream/downstream linkages
C. A customer feedback tool
D. A logistics-only focus
 [Link] is a Ford World Excellence Award level?
A. Platinum
B. Gold
C. Diamond
D. Elite

Medium Level (20 Questions)

[Link] does the value chain include besides core activities?
A. Support activities like accounting
B. Only logistics tasks
C. Customer complaints
D. Supplier audits

[Link] does the chain of customers improve quality?

A. Each step satisfies the next customer
B. It reduces supplier contact
C. It simplifies processes
D. It increases defects

[Link] is a benefit of supplier alliances?

A. Increased bureaucracy
B. Improved communication
C. Reduced quality focus
D. Higher costs

[Link] is a risk of single sourcing per A Closer Look at Quality 9-1?

A. Transportation disruptions
B. Increased supplier variety
 C. Simplified audits
D. Reduced inventory

[Link] does Boeing’s 787 outsourcing issue highlight a challenge?

A. Too few suppliers
B. Complex supplier management
C. Simplified logistics
D. Reduced quality focus

[Link] does Lockheed-Martin’s Star Supplier Program require?

A. 0% rejection rate for six months
B. 5% defect rate
C. Annual audits only
D. Customer surveys

[Link] is a goal of Bose’s JIT II?

A. Increase purchasing staff
B. Reduce inventory costs
C. Limit supplier access
D. Simplify audits

[Link] is a key supplier development activity?

A. Ignoring supplier performance
B. Sharing processes
C. Reducing supplier contact
D. Simplifying evaluations

[Link] does Toyota handle cost reductions with suppliers?

A. Shares benefits with suppliers
B. Demands full reductions
 C. Avoids cost discussions
D. Increases supplier costs

[Link] does 3M DPD’s customer information system track?

A. Dentists’ purchasing decisions
B. Supplier audits
C. Employee performance
D. Logistics schedules

[Link] is a feature of ISO/TS 16949’s quality management system?

A. Documenting key processes
B. Ignoring supplier inputs
C. Reducing customer focus
D. Simplifying audits

[Link] does ISO/TS 16949’s management responsibility include?

A. Limiting resources
B. Setting quality objectives
C. Avoiding reviews
D. Reducing training

[Link] is a focus of ISO/TS 16949’s product realization?

A. Meeting customer needs
B. Simplifying logistics
C. Reducing quality checks
D. Ignoring regulations

[Link] is acceptance sampling controversial?

A. It simplifies quality checks
B. It assumes some defects are acceptable
 C. It avoids supplier audits
D. It increases costs

[Link] is a benefit of RFID in hospital supply chains?

A. 100% patient identification accuracy
B. Increased inventory costs
C. Reduced supplier contact
D. Simplified audits

[Link] tool is ranked highest for supply chain professionals?

A. Benchmarking
B. Training
C. Surveys
D. Complaint resolution

[Link] does AT&T’s Supplier Quality Report provide?

A. Monthly supplier performance scores
B. Annual audits
C. Customer feedback only
D. Supplier training plans

[Link] is a goal of AT&T’s supplier program?

A. Reduce supplier contact
B. Build partnerships
C. Simplify logistics
D. Increase costs

[Link] does Honeywell view suppliers?

A. As adversaries
B. As business partners
 C. As short-term vendors
D. As cost-only factors

[Link] is a benefit of Honeywell’s supplier approach?

A. Better on-time delivery
B. Increased inventory
C. Reduced quality focus
D. Simplified audits

Hard Level (5 Questions)

[Link] might ISO/TS 16949 not suit non-automotive firms?
A. It’s specific to automotive quality systems
B. It’s too general
C. It avoids supplier audits
D. It simplifies processes

[Link] does 3M DPD prioritize improvements?

A. Based on customer requirements
B. By reducing supplier contact
C. Through random selection
D. By simplifying logistics

[Link] is supplier development distinct from evaluation?

A. It avoids resource use
B. It focuses on improving supplier performance
C. It simplifies audits
D. It reduces quality focus

[Link] challenge does RFID face in supply chains?

A. Achieving near 100% reliability
 B. Reducing supplier contact
C. Simplifying logistics
D. Increasing costs

[Link] is Honeywell’s focus on total cost prudent?

A. It considers long-term value over price
B. It simplifies supplier audits
C. It reduces supplier partnerships
D. It increases inventory costs
Answer Key with Explanations
1. B - Corey Billington defines a supply chain as a network for procurement,
transformation, and delivery (page 1).

2. B - Hewlett Packard focuses on quality performance in its supply chain to

enhance customer satisfaction (page 1).

3. A - Michael Porter’s value chain identifies activities to reduce costs and

boost competitiveness (page 1).

4. C - Inbound logistics is a core value chain activity, unlike support activities

like accounting (page 1).

5. B - Non-value-chain activities are called the hidden factory, with no

customer impact (page 2).

6. B - In the chain of customers, workstation 5 is your customer if you’re at

workstation 4 (page 2).

7. A - Supply chain management aims to improve quality and on-time

performance (page 1).

8. B - A trend is developing closer relationships with fewer suppliers for better

quality (page 2).

9. A - Single sourcing uses one supplier for a component to ensure consistency

(page 4).

10.B - Dual sourcing reduces approved suppliers to a few to balance risk and
quality (page 4).

11.B - Supplier evaluation rates suppliers on quality, capability, and schedules

(page 4).
12.B - ISO 9000:2008 is a common sole-source filter for quality validation
(page 4).

13.A - Supplier audits review quality and processes to ensure standards are met
(page 4).

14.B - Single sourcing risks supply interruptions, like strikes or logistics issues
(page 4).

15.A - General Motors faced a shutdown due to single sourcing from Delphi
(page 4).

16.B - EDI links supplier and customer data for better communication (page 7).

17.B - Xerox reduced suppliers to 300 after single sourcing for quality focus
(page 7).

18.B - VMI allows suppliers to manage their own orders, reducing inventory
costs (page 7).

19.A - The first step in supplier development is identifying critical products

(page 8).

20.B - ISO/TS 16949 aligns automotive quality system requirements globally

(page 10).

21.B - The International Automotive Task Force developed ISO/TS 16949

(page 10).

22.B - Acceptance sampling verifies incoming goods’ quality standards (page

12).

23.A - Acceptance sampling is needed for unproven suppliers to ensure quality

(page 13).
24.B - SCQM leverages upstream/downstream linkages for performance
improvement (page 14).

25.B - Gold is a level in Ford’s World Excellence Award for suppliers (page
10).

26.A - The value chain includes support activities like accounting alongside
core ones (page 2).

27.A - The chain of customers ensures each step satisfies the next, improving
final quality (page 2).

28.B - Supplier alliances improve communication, resembling parent/subsidiary

ties (page 3).

29.A - Single sourcing risks transportation disruptions, as seen post-9/11 (page

5).

30.B - Boeing’s 787 issues show challenges in managing many suppliers (page
6).

31.A - Lockheed-Martin’s Star Supplier Program requires a 0% rejection rate

for six months (page 7).

32.B - Bose’s JIT II empowers suppliers to reduce inventory costs via VMI
(page 7).

33.B - Supplier development includes sharing processes to improve

performance (page 8).

34.A - Toyota shares cost reduction benefits, e.g., 5% each with suppliers (page
8).

35.A - 3M DPD tracks dentists’ purchasing decisions for customer insights

(page 9).
36.A - ISO/TS 16949 requires documenting key processes for quality systems
(page 12).

37.B - Management responsibility includes setting quality objectives (page 12).

38.A - Product realization focuses on meeting customer needs and regulations

(page 12).

39.B - Acceptance sampling is controversial for assuming some defects are

acceptable (page 12).

40.A - RFID provides 100% patient identification accuracy in hospitals (page

13).

41.B - Training is ranked highest for supply chain professionals (page 14).

42.A - AT&T’s Supplier Quality Report gives monthly performance scores

(page 15).

43.B - AT&T aims to build partnerships through clear supplier expectations

(page 16).

44.B - Honeywell treats suppliers as business partners for mutual benefit (page
17).

45.A - Honeywell’s approach improves on-time delivery from partners (page

17).

46.A - ISO/TS 16949 is automotive-specific, limiting its use elsewhere (page

10).

47.A - 3M DPD prioritizes improvements based on customer requirements

(page 9).

48.B - Supplier development focuses on improving performance, not just

evaluating (page 8).
49.A - RFID needs near 100% reliability for supply chain adoption (page 13).

50.A - Honeywell’s total cost focus ensures long-term value, not just low prices
(page 17).