Deck 6: Controls and Control Systems: What Gets Measured Happens

Question 1

The first step in the control process is ________.*

A) forecasting
B) establishing objectives and standards
C) measuring actual performance
D) taking necessary action

Answer 1

B

Question 2

In order for the second step in the control process to be effective:*

A) you must be able to conduct accurate measurements.
B) you must be timely in the measuring process.
C) you must be willing to measure
D) all of the above should be followed.

Answer 2

D

Question 3

A(n) __________ is a measure of performance results in terms of quantity, quality, cost, or time.

A) forecast
B) output standard
C) input standard
D) data base

Answer 3

B

Question 4

A(n) __________ measures work efforts that go into a product.

A) input standard
B) output standard
C) transparent control
D) leadership control

Question 5

Which of the following is controlled by concurrent controls?

A) Work throughputs
B) Work inputs
C) Work outputs
D) All of the above

Question 6

__________ control occurs through self-discipline and self-control.

A) Steering
B) Feedback
C) Internal
D) Concurrent

Question 7

__________ control ensures clear direction and needed resources before the work begins.

A) Feedback
B) Feedforward
C) Concurrent
D) Relative

Question 8

The "foundation" of any control system is measuring performance and:

A) punishing the guilty
B) taking corrective action
C) training
D) all of the above

Question 9

Management by __________ focuses on substantial differences between actual and desired performance.*

A) design
B) principal
C) direction
D) exception

Question 10

Control that focuses on what is happening during work in process is called __________ control.

A) feedforward
B) feedback
C) feedless
D) concurrent

Question 11

__________ control ensures that the final results meet desired standards.*

A) Feedforward
B) Feedback
C) Concurrent
D) Feedmore

Question 12

UPS carefully measures the routes and routines of its drivers to establish the times expected for each delivery. When a delivery manifest is scanned as completed, the driver's time is registered in an electronic performance log that is closely monitored by supervisors. UPS is using __________ comparisons.

A) historical
B) engineering
C) logistical
D) relative

Question 13

The quality control manager at Athens, Inc. requires zero defects on all parts received from its suppliers. This is an example of a(n) __________.*

A) output standard
B) feedback control
C) input standard
D) historical standard

Question 14

Which of the following is controlled by feedback controls?

A) Work throughputs
B) Work inputs
C) Work outputs
D) All of the above

Question 15

A manager stops by before a shift to see if everything is ready to go. This is an example of a(n) __________ control.

A) steering
B) feedback
C) feedforward
D) concurrent

Question 16

__________ is the process of measuring performance and taking action to ensure desired results.

A) Planning
B) Organizing
C) Leading
D) Controlling

Question 17

The most important step in the control process is __________.*

A) forecasting
B) establishing objectives and standards
C) measuring actual performance
D) taking necessary action

Question 18

Which of the following is controlled by feedforward controls?

A) Work throughputs
B) Work inputs
C) Work outputs
D) All of the above

Question 19

A process that identifies lessons learned through a completed project, task force assignment, or special operation is called a(n) __________.*

A) performance assignment
B) planning session
C) planning function
D) after-action review

Question 20

Output standards in business would include:

A) the average educational level of employees.
B) the quality of the raw materials used to make the product.
C) quality ratings of the final product.
D) reliability ratings on production equipment.

Question 21

__________ management makes sure that specific activities required to complete a project are planned well and accomplished on time.

A) Business
B) Financial
C) Strategic
D) Project

Question 22

__________ control occurs through direct supervision or administrative systems.*

A) Internal
B) External
C) Bureaucratic
D) Reward

Question 23

A(n)__________ chart graphically displays the scheduling of tasks required to complete a project.

A) business
B) Gantt
C) Paredo
D) project

Question 24

Management by objectives requires all of the following EXCEPT:

A) a structured process.
B) regular communication.
C) objectives set by management.
D) standards for measurement.

Question 25

__________ is/are a process of joint objective setting and reviews between a superior and a subordinate.*

A) Management by directives
B) Management by objectives
C) Performance appraisals
D) Salary reviews

Question 26

One time activities with many component tasks that must be completed in proper order and according to budget are called __________ plans.

A) business
B) strategic
C) project
D) long-range

Question 27

The point at which total revenues equal total costs and profits begin is called the __________.
a) profit margin
b) breakeven point
c) maximum cost point
d) marginal revenue point

Question 28

__________ is/are used to graphically display trends, so that exceptions to quality standards can be identified.*

A) Instruction manuals
B) Equations
C) Control charts
D) Just-in-time data

Question 29

A(n)__________ chart is a combination of the critical path method and the program evaluation and review technique.

A) CPM/PERT
B) Gantt
C) Paredo
D) project

Question 30

__________ control influences behavior through norms and expectations set by the organization's culture.

A) Market
B) External
C) Bureaucratic
D) Clan

Question 31

The two most common types of objectives in the management by objectives process are work related improvement and __________ objectives.*

A) strategic
B) financial
C) personal development
D) specific action

Question 32

__________ control influences behavior through authority, policies, procedures, job descriptions, budgets, and day to day supervision.*

A) Internal
B) External
C) Bureaucratic
D) Market

Question 33

The process that has production materials arriving from suppliers as they are required is called __________ scheduling.*

A) on time
B) almost on time
C) strategic
D) just-in-time

Question 34

__________ is the process of ensuring that inventory is only big enough to meet immediate needs.

A) Financial planning
B) Management control
C) Inventory control
D) Direct control

Question 35

__________ control is the influence of competition on the behavior of organizations and their members.

A) Internal
B) Clan
C) Bureaucratic
D) Market

Question 36

The goals set in an MBO process should be:

A) specific and measurable.
B) flexible with regard to deadlines.
C) easy to accomplish; to build confidence.
D) vague in accountability; to reduce fear.
E) all of the above.

Question 37

The pathway from project start to conclusion that involves activities with the longest completion time is called the __________.

A) critical path
B) economic order quantity
C) purchasing control level
D) financial minimum level

Question 38

The process of focusing on quality in every part of the organization with a philosophy of continuous improvement, and doing things right the first time is called __________.

A) quality circles
B) total quality management
C) supply chain management
D) international quality control

Question 39

The __________ method places new orders when inventory levels fall to predetermined points.

A) master level
B) economic order quantity
C) purchasing control level
D) financial minimum level

Question 40

The process of always searching for new ways to improve work quality and performance is called __________.

A) just-in-time
B) supply chain management
C) continuous improvement
D) quality circles

Question 41

Our focus in "management by exception" is to give our attention to the situations with the greatest need for action.

Question 42

The advantage to concurrent controls is the opportunity to intervene immediately when problems are detected.

Question 43

Unfortunately, control plays a negative role in the management process.

Question 44

MBO is a system that only works to improve organizational improvement objectives.

Question 45

Informal standards like "we did our best" or "everyone seemed to like it" are very effective as a basis for control adjustments.

Question 46

MBO requires the managers to give employees a list of objectives.

Question 47

The reality of "continuous improvement" is that you are never done.

Question 48

In the comparison phase of the control process, we are focused on indications that action is needed to correct performance deficiencies.

Question 49

The roots of the control process are in the planning function.

Question 50

The ability to generate cash to pay bills is known as __________.

A) liquidity
B) leverage
C) asset management
D) profitability

Question 51

Which of the following financial ratios is the correct formula for the current ratio?

A) Current assets-inventory/current liabilities
B) Current assets/current liabilities
C) Sales/average inventory
D) Net income/owner's equity

Question 52

When writing a good performance objective, you should identify a date by which the key result will be accomplished.

Question 53

The calculation of the point where sales revenues equal total costs is called __________ analysis.

A) breakeven
B) profit
C) loss
D) marginal

Question 54

Six Sigma is a quality standard.

Question 55

MBO has been around for so long because it is one of the few management techniques with no observable downsides.

Question 56

Conformance with rules and procedures, efficiency in the use of resources, and work attendance are examples of input standards.

Question 57

The two types of cost used to determine total costs are __________ and __________.

A) minimum; maximum
B) direct; indirect
C) fixed; variable
D) hard; soft

Question 58

The major objective in an "after-action" report is to affix blame.

Question 59

The "control" process is really just about power.

Question 60

Six Sigma is not a common quality standard in our global marketplace because it is often too difficult to achieve.

Question 61

Discuss breakeven analysis. What is its intent? How is it calculated?

Question 62

__________ control influences behavior through norms and expectations set by the corporate culture.

Question 63

__________ is the ability to earn revenues greater than costs.

Question 64

The place where losses end and profits begin is known as the __________ point.

Question 65

__________ is the process of measuring performance and taking action to ensure desired results.

Question 66

Define and discuss the components of TQM (total quality management).

Question 67

__________ objectives document intentions to accomplish personal growth, such as expanded job knowledge or skills.

Question 68

If you follow-up with clients to see what they thought of the service level that you provided, you are using a(n) __________ type of control.

Question 69

Define the three types of time related controls and their relationship to work inputs, work throughputs, and work outputs.

Question 70

__________ comparisons use past experience as a basis for evaluating current performance.

Question 71

__________ management makes sure that activities required to complete a project are planned well and accomplished on time.

Question 72

__________ control is essentially the influence of market competition on the behavior of organizations and their members.

Question 73

Control equation: Need for action = __________ - __________.

Question 74

The function of EOQ is to hold down both order costs and inventory costs.

Question 75

Describe the process for setting up an MBO system.

Question 76

Describe the basic steps in the control process.

Question 77

To improve workflow and reduce costs, __________ scheduling seeks to arrange for materials to arrive right as they are needed.

Question 78

The common phrase for operations, built upon continuous improvement, that seek to make quality an everyday performance objective is __________.

Question 79

__________ is the ability to call upon inner strength and keep moving forward even when things are tough.