Question 1

Silver n' Gold Inc. recently introduced a new control philosophy where all employees have access to the same information that owners have, such as what money is coming in and where it is going. This is an example of which control philosophy?
A) Balanced scorecard
B) Six Sigma
C) Continuous improvement
D) Total quality management
E) Open-book management

Accepted Answer

This is an example of open-book management, where all employees are provided access to financial information that was previously only available to top-level management.

Question 2

__________ involves assigning dedicated personnel within a particular functional area of the business to identify opportunities for improvement throughout the work process.
A) A quality circle
B) Benchmarking
C) Quality partnering
D) Continuous improvement
E) Total quality management

Accepted Answer

Quality partnering involves assigning dedicated personnel within a specific functional area to identify opportunities for improvement throughout the work process. This approach fosters collaboration between employees and management to enhance quality and efficiency.

Question 3

Which total quality management technique is based on a five-step methodology referred to as DMAIC (Define, Measure, Analyze, Improve, and Control), which provides a structured way for organizations to approach and solve problems?
A) Quality circles
B) Six Sigma
C) Benchmarking
D) Balanced scorecard
E) Continuous improvement

Accepted Answer

The technique based on the DMAIC methodology is Six Sigma, which is a data-driven approach to eliminate defects and improve processes. The other options listed are TQM techniques, but they do not specifically use the DMAIC methodology. Quality circles involve small groups of employees who meet regularly to identify and solve work-related problems. Benchmarking is a technique of comparing performance metrics with industry leaders or best-in-class organizations. The balanced scorecard is a strategic management tool that uses a balanced set of performance indicators to track progress towards organizational goals. Continuous improvement is a general philosophy of making gradual, ongoing improvements to processes and systems.

Question 4

Quality circles are based on the assumption(s) that:
A) the people who do the job know it better than anyone else.
B) quality can be increased by increasing the size of the organization.
C) quality can be increased by talking more about it.
D) the more employees talk, the more satisfied they will be.
E) all of these.

Accepted Answer

Quality circles are based on the assumption that the people who do the job know it better than anyone else. This is because they are the ones who are involved in the process every day and can provide valuable insights and feedback on how to improve it. This assumption is a key principle of quality management and emphasizes the importance of involving employees in the improvement process.

Question 5

It seems that once a year the managers of Stone Construction, Inc. attempt a major organization intervention, such as management by objectives. They never seem to be satisfied with the performance of Stone Construction and, sure enough, 12 months later, along comes another major intervention. By implementing organizational change in this way, Stone Construction's management may well be violating the principle of:
A) benchmarking.
B) continuous improvement.
C) unity of direction.
D) top-down control.
E) none of these.

Accepted Answer

Stone Construction, Inc. is not practicing continuous improvement by only implementing major interventions once a year. Continuous improvement involves regularly making incremental improvements to organizational processes and performance. By only intervening once a year, Stone Construction is missing opportunities for continuous improvement and potentially violating this principle.

Question 6

Which of the following allows employees to see for themselves the financial condition of the company?
A) Open-book management
B) An economic value-added system
C) Activity-based costing
D) An inappropriate control system
E) A market value-added system

Accepted Answer

Open-book management is a management approach where employees are given access to financial information about the company's performance, including income, expenses, profits, and losses. This transparency allows them to understand how their work contributes to the company's success and make informed decisions to improve it. The other choices are related to financial measurement systems or control systems but do not directly involve employee access to financial information.

Question 7

Which of the following is a quality-control approach that emphasizes a disciplined and relentless pursuit of higher quality and lower costs?
A) Continuous improvement
B) Cycle time
C) Quality circles
D) Six Sigma
E) Benchmarking

Accepted Answer

Six Sigma is a quality-control approach that emphasizes a disciplined and relentless pursuit of higher quality and lower costs. It involves using data and statistical analysis to identify and eliminate defects in a process, with the ultimate goal of reducing variability and improving customer satisfaction. Continuous improvement (A) is a broader approach that includes Six Sigma but also encompasses other methodologies, such as Total Quality Management. Cycle time (B) is a measure of how long it takes to complete a process or activity. Quality circles (C) are small groups of employees who meet regularly to identify and solve work-related problems. Benchmarking (E) is a process of comparing a company's performance against that of its competitors or industry leaders.

Question 8

A quality circle is a group of _____ to _____ volunteer employees.
A) 2; 4
B) 6; 12
C) 10; 20
D) 15; 25
E) 30; 50

Accepted Answer

Quality circles typically consist of 6 to 12 volunteer employees who come together to discuss and solve problems related to their work area. This size is considered optimal for effective group communication and problem-solving.

Question 9

Heather belongs to a group of eight employees at work that meets every other Friday at 1 p.m. to discuss issues and problems in the workplace that affect the quality of their work. This group is an example of:
A) a safety group.
B) a quality circle.
C) an ad-hoc committee.
D) a problem team.
E) none of these.

Accepted Answer

This group fits the definition of a quality circle, which is a group of employees who volunteer to meet regularly to identify, analyze, and solve work-related problems, and to improve overall productivity and quality of work. A safety group focuses on workplace safety, an ad-hoc committee is a temporary group formed to deal with a specific issue, and a problem team is a group assembled to address a particular problem or challenge.

Question 10

The balanced scorecard is an effective tool for managing and improving performance, but only if it is:
A) used by managers who recognize that relying exclusively on financial measures benefits the organization in the long run.
B) implemented using a performance measurement orientation.
C) used exclusively by the top levels of the organization.
D) clearly linked to a well-defined organizational strategy and goals.
E) used in organizations that adopt a hierarchical control process.

Accepted Answer

The balanced scorecard is most effective when it is clearly linked to a well-defined organizational strategy and goals. This ensures that the performance indicators being measured are aligned with the overall direction of the organization. Simply using financial measures or restricting its use to only top management will not be as effective as when it is implemented using a performance measurement orientation and used at all levels of the organization. Additionally, the use of a hierarchical control process is not necessary for the effectiveness of the balanced scorecard.

Question 11

All of the following are total quality management techniques except:
A) quality partnering.
B) continuous improvement.
C) electronic monitoring.
D) Six Sigma principles.
E) benchmarking.

Accepted Answer

Electronic monitoring is not a total quality management technique as it is a tool used to gather data and information for analysis, but does not contribute to the overall management philosophy of TQM. The other options (A, B, D, E) are all TQM techniques used to improve quality and efficiency in an organization.

Question 12

Which of the following is a reason why an organization might use benchmarking?
A) To assess market demand
B) To identify best practices within an industry
C) To generate new business ideas
D) To increase productivity
E) All of these

Accepted Answer

Benchmarking is a process used by organizations to measure and compare their processes, practices, and performance metrics to industry bests or best practices from other industries. This can help in assessing market demand (A), identifying best practices within an industry (B), generating new business ideas (C), and increasing productivity (D).

Question 13

With quality partnering,:
A) people from the quality control department are viewed as "outsiders."
B) quality control is conducted after a product is completed or service delivered, allowing organizations to save money.
C) quality is measured against the best in the industry.
D) quality control is seen as separate from everyday work.
E) none of these.

Accepted Answer

Quality partnering involves integrating quality control into everyday work, viewing it as a shared responsibility rather than the sole domain of a separate department. It emphasizes continuous improvement and benchmarking against industry leaders, making options A, B, and D incorrect.

Question 14

A group of 6 to 12 volunteer employees who meet regularly to discuss and solve problems that affect the quality of their work is a:
A) feedforward control group.
B) work team.
C) quality circle.
D) committee.
E) problem team.

Accepted Answer

A quality circle is a group of volunteer employees who meet regularly to discuss and solve problems that affect the quality of their work. This approach is commonly used in Japan and other countries as part of a broader quality management program focused on continuous improvement. The purpose of quality circles is to encourage employee involvement and empowerment, as well as to identify and address issues that may not be apparent to managers or other stakeholders. This helps to improve overall quality, efficiency, and morale within the organization.

Question 15

Which of the following statements about total quality management (TQM) is true?
A) TQM was first implemented in the United States in the 1970s.
B) The TQM philosophy focuses on teamwork, increasing customer satisfaction, and lowering costs.
C) TQM gives managers total responsibility for achieving quality improvement.
D) With TQM, quality control is assigned to specialized departments.
E) TQM is based on a hierarchical control philosophy.

Accepted Answer

The TQM philosophy focuses on teamwork, increasing customer satisfaction, and lowering costs, making statement B accurate. Statements A, C, D, and E are inaccurate. TQM was first implemented in Japan in the 1950s, not in the United States in the 1970s. TQM requires everyone in an organization to take responsibility for quality improvement, not just managers. Quality control is integrated into every aspect of an organization's operations under TQM, rather than assigned to specialized departments. TQM is based on a participatory control philosophy, not a hierarchical control philosophy.

Question 16

Six Sigma is based on a five-step methodology referred to as:
A) continuous improvement.
B) DMAIC.
C) kaizen.
D) DAID.
E) benchmarking.

Accepted Answer

Six Sigma is based on the DMAIC methodology, which stands for Define, Measure, Analyze, Improve, and Control. This methodology is used to solve problems, optimize processes, and improve quality by using data-driven decision making. The other options listed are either other quality improvement methodologies (kaizen) or tools that may be used in conjunction with Six Sigma (continuous improvement, benchmarking), but are not the foundation of the Six Sigma approach. DAID is not a recognized methodology or tool in the Six Sigma approach.

Question 17

At FreshFood Corporation, the organizational structure is flat and horizontal. Managers use both intrinsic and extrinsic rewards, and employees are rewarded for team and organizational success as well as their individual performance. FreshFood uses what type of organizational control?
A) Bureaucratic
B) Decentralized
C) Centralized
D) Feedback
E) None of these

Accepted Answer

The description of the organizational structure at FreshFood Corporation as flat and horizontal indicates a decentralized control structure where decision-making is spread throughout the organization. The use of both intrinsic and extrinsic rewards further supports a decentralized approach, as managers are likely to have greater autonomy in determining employee incentives. Bureaucratic, centralized, and feedback controls emphasize top-down decision-making that is not present in FreshFood's structure, so they are not the best choices.

Question 18

__________ is/are most beneficial when employees have challenging jobs.
A) Six Sigma
B) Total quality management
C) Kaizen
D) Quality circles
E) Continuous improvement

Accepted Answer

Quality circles are most beneficial when employees have challenging jobs as they involve small groups of employees who meet regularly to discuss and solve work-related problems, enhancing job satisfaction and performance.

Question 19

Charlie, a manager at a textile company, is bothered by a lack in quality of products manufactured by his company. Charlie hopes to infuse quality into the company through continuous improvement by involving everyone who works there. This describes which control philosophy?
A) Balanced scorecard
B) Six Sigma
C) Continuous improvement
D) Total quality management
E) Open-book management

Accepted Answer

Total quality management (TQM) is a control philosophy that focuses on continuous improvement and involves everyone in the organization to enhance the quality of products and services.

Question 20

Contingency factors that can influence the success of a total quality management (TQM) program in a positive way include all of the following except:
A) tasks make great skill demands on employees.
B) TQM serves to enrich jobs and motivate employees.
C) problem-solving skills are improved for all employees.
D) participation and teamwork are used to tackle significant problems.
E) managers wait for big, dramatic innovations.

Accepted Answer

The statement "managers wait for big, dramatic innovations" suggests that there is a lack of commitment or understanding towards the gradual and continuous improvement approach that TQM promotes. This goes against the principles of TQM, which emphasize the importance of small, incremental improvements and involvement from all levels of the organization. Therefore, this factor would have a negative rather than a positive influence on the success of a TQM program.

Quiz 19: Managing Quality and Performance

Silver n' Gold Inc. recently introduced a new control philosophy where all employees have access to the same information that owners have, such as what money is coming in and where it is going. This is an example of which control philosophy?

__________ involves assigning dedicated personnel within a particular functional area of the business to identify opportunities for improvement throughout the work process.

Which total quality management technique is based on a five-step methodology referred to as DMAIC (Define, Measure, Analyze, Improve, and Control) , which provides a structured way for organizations to approach and solve problems?

Quality circles are based on the assumption(s) that:

Which of the following allows employees to see for themselves the financial condition of the company?

Which of the following is a quality-control approach that emphasizes a disciplined and relentless pursuit of higher quality and lower costs?

A quality circle is a group of _ to _ volunteer employees.

Heather belongs to a group of eight employees at work that meets every other Friday at 1 p.m. to discuss issues and problems in the workplace that affect the quality of their work. This group is an example of:

The balanced scorecard is an effective tool for managing and improving performance, but only if it is:

All of the following are total quality management techniques except:

Which of the following is a reason why an organization might use benchmarking?

With quality partnering,:

A group of 6 to 12 volunteer employees who meet regularly to discuss and solve problems that affect the quality of their work is a:

Which of the following statements about total quality management (TQM) is true?

Six Sigma is based on a five-step methodology referred to as:

At FreshFood Corporation, the organizational structure is flat and horizontal. Managers use both intrinsic and extrinsic rewards, and employees are rewarded for team and organizational success as well as their individual performance. FreshFood uses what type of organizational control?

__________ is/are most beneficial when employees have challenging jobs.

Charlie, a manager at a textile company, is bothered by a lack in quality of products manufactured by his company. Charlie hopes to infuse quality into the company through continuous improvement by involving everyone who works there. This describes which control philosophy?

Contingency factors that can influence the success of a total quality management (TQM) program in a positive way include all of the following except: