CHAPTER 01 Foundations of Quality and Performance Excellence

Transcription

1 1. The view of quality as the satisfaction of customer needs is often called fitness for use. DESC.EVAL Quality and Performance 2. Since quality relates to goods or services, both only for-profit and non-profit organizations can benefit from adopting performance excellence procedures. DESC.EVAL Quality and Performance 3. Scientific management involved skilled craftspeople who served both as manufacturers and inspectors, building quality into their products. False DESC.EVAL A Brief History 4. After World War II, the first country to adopt quality initiatives and improvement in industry was Japan. DESC.EVAL A Brief History Cengage Learning Testing, Powered by Cognero Page 1

2 5. The Deming Prize was constituted by the United States to raise awareness of quality and recognize national role models. DESC.EVAL A Brief History 6. A successful organization is one which integrates quality principles with its mundane daily work activities. 7. In quality control, tolerances are unacceptable deviations from the values assigned to the targets. False 8. The five dimensions of service quality include reliability, assurance, tangibles, empathy, and responsiveness. Cengage Learning Testing, Powered by Cognero Page 2

3 9. A difference between service and manufacturing is that manufacturing is performed away from the customer whereas customers are involved in the service process. 10. Not-for-profit organizations are adopting quality principles because of their impact on the bottom line. False 11. From a total quality perspective, all strategic decisions a company makes are customer driven. Cengage Learning Testing, Powered by Cognero Page 3

4 12. Total Quality views everyone inside the enterprise as a customer of an internal or external supplier and a supplier of an external or internal customer. 13. Employee engagement is manifest by empowerment. 14. Competitive behavior one person against another or one group against another is contrary to the basic principles of TQ. Cengage Learning Testing, Powered by Cognero Page 4

5 15. The traditional way of viewing an organization is by surveying the horizontal dimension keeping an eye on an organization chart. False 16. In terms of total quality management, continuous improvement refers only to breakthrough improvement. False 17. According to Noriaki Kano s three classes of needs, the required safety features in an automobile are an example of a satisfier. False Cengage Learning Testing, Powered by Cognero Page 5

6 18. The fundamental objective of a supply chain is to provide the right product in the right quantity at the right place at the right time. 19. A firm that is characterized by flexibility and short cycle times is considered to be agile. 20. Agency theory views the management system as one based on social and human values, whereas total quality is based on an economic perspective. False DESC.EVAL TQ and Agency Theory Cengage Learning Testing, Powered by Cognero Page 6

7 21. Agency theory suggests that information may be concealed to advance self-interests. DESC.EVAL TQ and Agency Theory 22. Agency theory assumes that risks are not to be minimized and shared between the two parties. False DESC.EVAL TQ and Agency Theory 23. Leaders in agency theory provide a quality vision and play a strategic role in the organization. False DESC.EVAL TQ and Agency Theory 24. In the organismic model of organizations, organizations are considered to be autonomous entities. False DESC.EVAL TQ and Organizational Models Cengage Learning Testing, Powered by Cognero Page 7

8 25. In the organismic model of organizations, work is reduced to elementary tasks with a focus on efficiency, conformity, and compliance. False DESC.EVAL TQ and Organizational Models 26. The mechanical organizational model assumes that systems goals such as the need to survive displace performance goals, such as profit. False DESC.EVAL TQ and Organizational Models 27. The organismic model of organizations views an organization as a tool or a machine designed solely to create profits for its owners. False DESC.EVAL TQ and Organizational Models Cengage Learning Testing, Powered by Cognero Page 8

9 28. In the cultural organizational model, managers relinquish control and share power in order to meet the needs of the many individuals. DESC.EVAL TQ and Organizational Models 29. In the cultural organizational model, learning needs are driven by adaptation to environmental forces instead of in response to individual needs. False DESC.EVAL TQ and Organizational Models 30. The term refers to an integrated approach to organizational performance management that results in delivery of ever-improving value to customers and stakeholders, contributing to organizational sustainability. a. fitness for use b. performance excellence c. gap analysis d. accreditation b DISC: Operational Management DESC.EVAL Quality and Performance Cengage Learning Testing, Powered by Cognero Page 9

10 31. Frederick W. Taylor s concept of greatly influenced the nature of quality in manufacturing organizations. a. scientific management b. the Hawthorne effect c. Theory X d. the observer-expectancy effect a DESC.EVAL A Brief History 32. introduced statistical quality control to Japanese workers after World War II as part of General MacArthur s rebuilding program. a. Noriaki Kano b. F.W. Taylor c. Malcolm Baldrige and Henry Ford d. Edwards Deming and Joseph Juran d DESC.EVAL A Brief History 33. The prize constituted by Japan to recognize quality initiatives in business is named after. a. Edwards Deming b. Malcolm Baldrige c. Frederick Taylor d. Noriaki Kano a DESC.EVAL A Brief History Cengage Learning Testing, Powered by Cognero Page 10

11 34. In 1987, Congress established the to raise awareness of quality and recognize national role models, spawning a remarkable interest in quality among American businesses. a. President s Quality Award b. Baldrige Award c. Deming Prize d. Peak Performance Award b DESC.EVAL A Brief History 35. In an ancillary manufacturing unit, the bolt manufacturing section has a value of as the target, as the tolerance. Which of the following is the acceptable range of values in production? a. Between and b. Between and c. Between and d. Between and d Difficulty: Moderate 36. As part of the evolving understanding of quality management, many began to use the term to contrast the difference between managing for quality in all organizational processes and focusing solely on manufacturing quality. a. micro-quality b. strategic quality c. Lead Q d. Big Q d DESC.EVAL A Brief History Cengage Learning Testing, Powered by Cognero Page 11

12 37. refer(s) to a product s primary operating characteristics. a. Benefits b. Conformance c. Aesthetics d. Performance d 38. refers to the degree to which physical and performance characteristics of a product match preestablished standards. a. Reliability b. Conformance c. Features d. Aesthetics b 39. is the subjective assessment of a product resulting from image, advertising, or brand names. a. Perceived quality b. Reliability c. Performance d. Aesthetics a Cengage Learning Testing, Powered by Cognero Page 12

13 40. With respect to the quality dimensions of manufactured products, refer(s) to a product s primary operating characteristics. a. reliability b. features c. performance d. durability c 41. With respect to the quality dimensions of manufactured products, refer(s) to the probability of a product s surviving over a specified period of time under stated conditions of use. a. aesthetics b. serviceability c. features d. reliability d Difficulty: Moderate 42. With respect to the quality dimensions of manufactured products, refer(s) to the amount of use one gets from a product before it physically deteriorates or until replacement is preferable. a. durability b. aesthetics c. features d. serviceability a Cengage Learning Testing, Powered by Cognero Page 13

14 43. With respect to the quality dimensions of manufactured products, refer(s) to the ability to repair a product quickly and easily. a. durability b. serviceability c. conformance d. features b 44. With respect to the quality dimensions of manufactured products, deals with how a product looks, feels, sounds, tastes, or smells. a. serviceability b. durability c. performance d. aesthetics d 45. Which of the following is true of the service sector as opposed to manufacturing firms? a. Service firms usually maintain inventory registers. b. A service firm considers that all customer needs are the same. c. The output of a service firm is intangible. d. Service firms require a physical production site. c Cengage Learning Testing, Powered by Cognero Page 14

15 46. Which of the following is an example of a service provider? a. A steel plant b. A clothing manufacturer c. A pharmaceutical company d. A bank d Difficulty: Moderate Bloom's: Comprehension 47. is an important dimension associated with service quality. a. Aesthetics b. Serviceability c. Durability d. Accuracy d 48. The is the highest award given to executive branch agencies for management excellence. a. President s Quality Award b. Malcolm Baldrige Award c. Deming Prize d. National Quality Improvement Award a Cengage Learning Testing, Powered by Cognero Page 15

16 49. Which of the following TQ principles was the TQ quality initially based on? a. Emphasis on individual work b. Continuous improvement c. Employee focus d. Quality variance b Difficulty: Moderate 50. In 1992, in cooperation with deans of business and engineering departments of major universities, and recognized consultants, the chairs and CEOs of nine major U.S. corporations endorsed a definition of as a peoplefocused management system that aims at continual increase in customer satisfaction at continually lower real cost. a. business process reengineering b. a quality circle c. total quality d. Six Sigma management c 51. In a total quality environment, internal customers are the: a. designated team members of the quality control team. b. customers who are part of the product testing panel. c. recipients of any work output. d. immediate customers, but not the end users. c Cengage Learning Testing, Powered by Cognero Page 16

17 52. Customer engagement refers to: a. organizations designing products and processes with the goal of maximizing revenue from individual customers. b. organizations building relationships with customers so they will continue to use their goods and services and actively advocate for and recommend them. c. organizations customizing product and service features to meet the needs of individual customers rather than mass-producing products. d. customers proactively approaching organizations in order to suggest product ideas and features for development. b 53. A manager who is considered a Theory X manager is likely to believe that: a. productivity is enhanced when employees make decisions on their own. b. workers dislike work and require close supervision and control. c. worker productivity improves when managers relax supervision. d. employees are self-motivated and eager to take on challenges. b Cengage Learning Testing, Powered by Cognero Page 17

18 54. According to McGregor s, workers are self motivated, seek responsibility, and exhibit a high degree of imagination and creativity at work. a. Theory Z b. Theory Y c. Theory X d. Theory Q b 55. Teamwork between top management and lower-level employees is called teamwork. a. vertical b. interorganizational c. horizontal d. cross-functional a 56. Teamwork within work groups and across functional lines is called teamwork. a. cross-training b. interorganizational c. horizontal d. quality circle c Cengage Learning Testing, Powered by Cognero Page 18

19 57. Partnerships with suppliers and customers are called partnerships. a. horizontal b. cross-functional c. vertical d. interorganizational d 58. A(n) is a sequence of activities that is intended to achieve some result. a. process b. array c. cluster d. symmetry a 59. With respect to the systems approach to management, refers to looking at an organization as a whole and building on key business attributes, including core competencies, strategic objectives, action plans, and work systems. a. alignment b. integration c. sequence d. synthesis d Cengage Learning Testing, Powered by Cognero Page 19

20 60. In the context of Noriaki Kano s classification of customer needs, refer to those needs that are expected in a product or service. a. satisfiers b. delighters c. dissatisfiers d. exciters c 61. According to Noriaki Kano s classification of customer needs, are the needs that customers say they want. a. satisfiers b. dissatisfiers c. delighters d. exciters a 62. According to Noriaki Kano s classification of customer needs, new or innovative features that customers do not expect in a product or service. a. satisfiers b. delighters c. dissatisfiers d. essentials b Cengage Learning Testing, Powered by Cognero Page 20

21 63. Sylvia orders a security system to be installed at her house. After placing the order, the company took three days to install it. The time taken for the order to be delivered is referred to as: a. execution gap. b. cycle time. c. performance gap. d. turnaround time. b Difficulty: Moderate 64. Agency theory makes the assumption that individuals in agency relationships are and will always take actions to enhance their self-interests. a. utility-maximizers b. negotiators c. satisficers d. adopters a DESC.EVAL TQ and Agency Theory 65. In agency theory, is a primary mechanism used by both parties to maintain and govern the relationship. a. autonomy b. motivation c. self-regulation d. monitoring d DESC.EVAL TQ and Agency Theory Cengage Learning Testing, Powered by Cognero Page 21

22 66. In the organizational model, work is reduced to elementary tasks with a focus on efficiency, conformity, and compliance. a. environmental b. mechanistic c. organismic d. cultural b DESC.EVAL TQ and Organizational Models 67. The model assumes that systems goals, such as the need to survive, displace performance goals, such as profit. a. cultural b. mechanistic c. organismic d. environmental c DESC.EVAL TQ and Organizational Models 68. Total Quality shares the most similarities with the organizational model. a. cultural b. environmental c. organismic d. mechanistic c DESC.EVAL TQ and Organizational Models Cengage Learning Testing, Powered by Cognero Page 22

23 69. The model views an organization as a collection of cooperative agreements entered into by individuals with free will. a. mechanistic b. environmental c. organismic d. cultural d 70. What is performance excellence? DESC.EVAL TQ and Organizational Models The term performance excellence refers to an integrated approach to organizational performance management that results in delivery of ever-improving value to customers and stakeholders, contributing to organizational sustainability; improvement of overall organizational effectiveness and capabilities; and organizational and personal learning. Performance excellence is a characteristic of today s most outstanding organizations and is a requisite for providing high quality goods and services. Difficulty: Moderate DESC.EVAL Quality and Performance Cengage Learning Testing, Powered by Cognero Page 23

24 71. Briefly describe the quality dimensions of manufactured products. Manufactured products have several quality dimensions: 1) Performance: a product s primary operating characteristics. 2) Features: the bells and whistles of a product. 3) Reliability: the probability of a product s surviving over a specified period of time under stated conditions of use. 4) Conformance: the degree to which physical and performance characteristics of a product match preestablished standards. 5) Durability: the amount of use one gets from a product before it physically deteriorates or until replacement is preferable. 6) Serviceability: the ability to repair a product quickly and easily. 7) Aesthetics: how a product looks, feels, sounds, tastes, or smells. 8) Perceived quality: subjective assessment resulting from image, advertising, or brand names. 72. Describe in brief the most important dimensions of service quality. The most important dimensions of service quality are the following: 1) Time: How much time must a customer wait? 2) Timeliness: Will a service be performed when promised? 3) Completeness: Are all items in the order included? 4) Courtesy: Do frontline employees greet each customer cheerfully? 5) Consistency: Are services delivered in the same fashion for every customer, and every time for the same customer? 6) Accessibility and convenience: Is the service easy to obtain? 7) Accuracy: Is the service performed right the first time? 8) Responsiveness: Can service personnel react quickly and resolve unexpected problems? Cengage Learning Testing, Powered by Cognero Page 24

25 73. What are the points organizations have to look into beyond product orientation to ensure service quality? Service organizations must look beyond product orientation and pay significant attention to customer transactions and employee behavior. Several points that service organizations should consider are as follows: 1) The quality characteristics that a firm should control may not be the obvious ones. 2) Behavior is a quality characteristic. 3) Image is a major factor in shaping customer expectations of a service and in setting standards by which customers evaluate that service. 4) Establishing and measuring service levels may be difficult. 5) Quality control activity may be required at times or in places where supervision and control personnel are not present. Difficulty: Moderate 74. How is empowerment related to employee engagement? Employee engagement simply means that workers have a strong emotional bond to their organization, are actively involved in and committed to their work, feel that their jobs are important, know that their opinions and ideas have value, and often go beyond their immediate job responsibilities for the good of the organization. Engagement is often manifest by empowerment, which simply means that people have the authority to make decisions based on what they feel is right, have control over their work, take risks and learn from mistakes, and promote change. Difficulty: Moderate Cengage Learning Testing, Powered by Cognero Page 25

26 75. Describe the different types of continuous improvement. Continuous improvements within an organization may be of several types: 1) enhancing value to the customer through new and improved products and services; 2) improving productivity and operational performance through better work processes and reductions in errors, defects, and waste; 3) improving flexibility, responsiveness, and cycle time performance; and 4) improving organizational management processes through learning. Difficulty: Moderate 76. Describe the three levels at which data and information support analysis is disseminated and aligned within an organization. At the work level, data provide real-time information to identify reasons for variation, determine root causes, and take corrective action as needed. At the process level, operational performance data such as yields, cycle times, and productivity measures help managers determine whether they are doing the right job, whether they are using resources effectively, and whether they are improving. At the organization level, quality and operational performance data from all areas of the firm, along with relevant financial, market, human resource, and supplier data, form the basis for strategic planning and decision making. Difficulty: Moderate 77. Define the four stages in a learning cycle. A learning cycle has four stages: 1. planning, 2. execution of plans, 3. assessment of progress, and 4. revision of plans based upon assessment findings. Difficulty: Moderate Cengage Learning Testing, Powered by Cognero Page 26

27 78. Illustrate the differences between TQ and agency theory. The following are the major differences between TQ and agency theory: 1) TQ views the management system as one based on social and human values, whereas agency theory is based on an economic perspective that removes people from the equation. 2) Agency theory assumes an inherent conflict of goals between agents and principals, and that agent goals are aligned with principal goals through formal contracts. In TQ, everyone in the organization shares common goals and a continuous improvement philosophy. 3) Sharing information to achieve these goals is fundamental to TQ, whereas agency theory suggests that information may be concealed to advance selfinterests. 4) TQ takes a long-term perspective based on continuous improvement, whereas agency theory focuses on short-term achievement of the contract between the principal and agent. 5) In TQ, risk taking is necessary in order to innovate, whereas agency theory assumes that risks are to be minimized and shared between the two parties. 6) Finally, TQ leaders provide a quality vision and play a strategic role in the organization; leaders in agency theory develop control mechanisms and engage in monitoring. Difficulty: Moderate DESC.EVAL TQ and Agency Theory Cengage Learning Testing, Powered by Cognero Page 27

28 79. Describe the three major organizational models. Three major organizational models that management theorists have studied are the mechanistic, organismic, and cultural models of organizations. 1) The mechanistic model views an organization as a tool or a machine designed solely to create profits for its owners. Work is reduced to elementary tasks with a focus on efficiency, conformity, and compliance. 2) The organismic model views organizational systems as living organisms that depend on their environments for resources and adjust the behavior of their parts to maintain the properties of the whole within acceptable limits. This model assumes that systems goals, such as the need to survive, displace performance goals, such as profit. 3) The cultural model views an organization as a collection of cooperative agreements entered into by individuals with free will. The organization s culture and social environment are enacted or socially constructed by organization members. From the perspective of this model, the goal of an organization is to serve the diverse needs of all whom it affects its stakeholders. Difficulty: Moderate DESC.EVAL TQ and Agency Theory Cengage Learning Testing, Powered by Cognero Page 28