Question 1

According to Dr. Kenichi Ohmae, customers, corporation, and competitors make up the ____.

Accepted Answer

Dr. Kenichi Ohmae points out that any business unit must take into account three key players: the company itself, the competition, and the customer. These components form what Ohmae refers to as the strategic triangle.

Question 2

One of the most important contributors to total quality management has been the introduction of statistical tools to analyze the causes of product defects in an approach called ____.

Accepted Answer

One of the most important contributors to total quality management has been the introduction of statistical tools to analyze the causes of product defects in an approach called six sigma quality. Sigma is the Greek letter used to designate the estimated standard deviation or variation in a process.

Question 3

The principal idea of reengineering is to

Accepted Answer

The principal idea of reengineering is to revolutionize key organizational systems and processes to answer this question: "If you were the customer, how would you like us to operate?" The answer to this question forms a vision for how the organization should run, and then decisions are made and actions are taken to make the organization operate like the vision.

Question 4

Total quality management is a way of managing in which everyone is committed to the _____ of his or her part of the operation.

Accepted Answer

Total quality management (TQM) is a way of managing in which everyone is committed to continuous improvement of his or her part of the operation. In business, success depends on having high-quality products.

Question 5

Rick is the marketing head of a firm. He usually strives for long-term improvement rather than short-term profit, regardless of the economic environment. In the context of Deming's 14 points of quality, this is an example of

Accepted Answer

Deming's 14 points of quality emphasized a holistic approach to management that demands intimate understanding of the process. One of the points is to create constancy of purpose, which means to strive for long-term improvement rather than short-term profit.

Question 6

Which of the following is one of W. Edwards Deming's 14 points of quality?

Accepted Answer

W. Edwards Deming was one of the founders of the quality management movement. His 14 point approach to quality includes eliminating slogans, exhortations, and arbitrary targets.

Question 7

Which of the following is a primary activity in the generic value chain?

Accepted Answer

A value chain is the sequence of activities that flows from raw materials to the delivery of a good or service, with additional value created at each step. Inbound logistics is one of the primary activities.Refer to Exhibit 9.6

Question 8

A multifaceted process focusing on creating two-way exchanges with customers to foster intimate knowledge of their needs, wants, and buying patterns is called _____ management.

Accepted Answer

Customer relationship management (CRM) is a multifaceted process, typically mediated by a set of information technologies, that focuses on creating two-way exchanges with customers so that firms have an intimate knowledge of their needs, wants, and buying patterns. At companies that use CRM effectively, it helps them understand, as well as anticipate, the needs of current and potential customers.

Question 9

Which of the following is a support activity in the generic value chain?

Accepted Answer

A value chain is the sequence of activities that flows from raw materials to the delivery of a good or service, with additional value created at each step. Technology development is one of the support activities.Refer to Exhibit 9.6

Question 10

Which of the following is one of the criteria for receiving the Malcolm Baldrige National Quality Award?

Accepted Answer

To encourage American companies to make that commitment and achieve excellence, the Malcolm Baldrige National Quality Award is given every year to companies and nonprofit organizations that have met specified criteria in seven areas: (1) leadership; (2) strategic planning; (3) customer and market focus; (4) measurement, analysis, and knowledge management; (5) workforce focus; (6) process management; and (7) business results.

Question 11

A small office with only a single accountant and a receptionist/secretary is an example of a _____ shop.

Accepted Answer

When goods or services are provided in very low volume or small batches, a company that does such work is called a job shop. Less formally, in the service industry, restaurants or doctors' offices are examples of job shops because they provide a high variety of low-volume, customized services.

Question 12

_____ is an integrative approach to management that supports the attainment of customer satisfaction through a wide variety of tools and techniques that result in goods and services of high standards.

Accepted Answer

Total quality management (TQM) is an integrative approach to management that supports the attainment of customer satisfaction through a wide variety of tools and techniques that result in high-quality goods and services. It is characterized by a strong orientation toward customers (external and internal) and has become an umbrella theme for organizing work.

Question 13

A company that asks itself "If you were the customer, how would you like us to operate?" and then takes action to transform itself is best described as using the notion of ____.

Accepted Answer

The principal idea of reengineering is to revolutionize key organizational systems and processes to answer this question: "If you were the customer, how would you like us to operate?" The answer to this question forms a vision for how the organization should run, and then decisions are made and actions are taken to make the organization operate like the vision.

Question 14

In the realm of customer relations, _____ includes continually changing in order to connect with customers, even without waiting for customers to make the first move.

Accepted Answer

A company attains and retains competitive advantage by continuing to improve. This concept called kaizen, or continuous improvement, is an integral part of Japanese operations strategy. In the realm of customer relations, continuous improvement includes continually changing in order to connect with customers, even without waiting for customers to make the first move.

Question 15

According to Deming's 14 points of quality, which of the following has to be eliminated, as they are contrary to the idea of continuous improvement?

Accepted Answer

Deming's 14 points of quality emphasized a holistic approach to management that demands intimate understanding of the process. One of the points is to eliminate numerical quotas since they are contrary to the idea of continuous improvement.

Question 16

Executives at a pharmaceuticals company have been working with a consultant to implement ISO 9001. They have established the company's vision and goals, and they have been working hard to provide inspiration to their employees and establish trust. Which of the following principles is the company addressing here?

Accepted Answer

ISO 9001 is a series of quality standards developed by a committee working under the International Organization for Standardization to improve total quality in businesses. Their standards of management address eight principles, one of which is leadership.

Question 17

When an organization's definition of customer expands to include internal customers, the word customer is best defined as the ____.

Accepted Answer

As organizations focus on responding to customer needs, they soon find that the traditional meaning of a customer expands to include internal customers. The word customer now refers to the next process, or wherever the work goes next. Any recipient of a person's work, whether coworker, boss, subordinate, or external party, should be viewed as the customer.

Question 18

A series of quality standards developed by a committee working under the International Organization for Standardization to improve total quality in all businesses for the benefit of both producers and consumers is known as ____.

Accepted Answer

ISO 9001 is a series of quality standards developed by a committee working under the International Organization for Standardization to improve total quality in all businesses for the benefit of producers and consumers. U.S. companies first became interested in ISO 9001 because overseas customers, particularly those in the European Union, embraced it.

Question 19

In Japanese operations strategy, kaizen refers to ____.

Accepted Answer

A company attains and retains competitive advantage by continuing to improve. This concept called kaizen, or continuous improvement, is an integral part of Japanese operations strategy.

Question 20

The sequence of activities that flow from raw materials to the delivery of a good or service, with additional value created at each step, is known as ____.

Accepted Answer

A value chain is the sequence of activities that flow from raw materials to the delivery of a good or service, with additional value created at each step. Each step in the chain adds value to the product or service.

Quiz 9: Organizational Agility