CHAPTER 1 - TestBankTeam.Com · Web viewWhat are the principles of total quality? Answer: The principles of TQ involve some very basic management concepts: (1) customer and stakeholder

CHAPTER 1INTRODUCTION TO QUALITY AND PERFORMANCE EXCELLENCE

TRUE/FALSE QUESTIONS

1. The view of quality as the satisfaction of customer needs is often called fitness for use.Answer: TrueAACSB: AnalyticPage: 6

2. Pursuant to the development of “scientific management,” quality control was carried out by skilled craftspeople, who served both as manufacturers and inspectors, building quality into their products.Answer: FalseAACSB: AnalyticPage: 10

3. In 1984, the U.S Government designated November as the National Quality Month.Answer: TrueAACSB: AnalyticPage: 11

4. Tolerances are acceptable deviations from targets.Answer: TrueAACSB: AnalyticPage: 15

5. Performance excellence can be defined as “any primary or complementary activity that does not directly produce a physical product.”Answer: FalseAACSB: AnalyticPage: 15

6. Unlike services, manufacturing is performed away from the customer.Answer: TrueAACSB: Reflective ThinkingPage: 16

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7. For an airline company, “on time arrival” for an airline is a measure of service performance while frequent flyer awards and “business class” sections represent features.Answer: TrueAACSB: Reflective ThinkingPage: 17

8. Not-for-profit organizations are adopting quality principles because of their impact on the bottom line.Answer: FalseAACSB: Reflective ThinkingPage: 21

9. From a total quality perspective, all strategic decisions a company makes are “customer-driven.”Answer: TrueAACSB: Reflective ThinkingPage: 23

10. TQ views everyone inside the enterprise as a customer of an internal or external supplier and a supplier of an external or internal customer.Answer: TrueAACSB: Reflective ThinkingPage: 23

11. The “voice of the customer” refers to both near-term and longer-term customer needs and expectations.Answer: TrueAACSB: AnalyticPage: 24

12. The traditional way of viewing an organization is by surveying the horizontal dimension.Answer: FalseAACSB: Reflective ThinkingPage: 24


13. “Continuous improvement” refers to both incremental and “breakthrough” improvement.Answer: TrueAACSB: AnalyticPage: 26

14. Considering the three classes of needs suggested by Noriaki Kano, the required safety features in an automobile is an example of a satisfier.Answer: FalseAACSB: Reflective ThinkingPage: 26

15. Process time refers to the time it takes to accomplish one cycle of a process.Answer: FalseAACSB: AnalyticPage: 27

16. A firm that is characterized by flexibility and short cycle times is considered to be agile.Answer: TrueAACSB: Reflective ThinkingPage: 27

17. Employee engagement is manifest by empowerment.Answer: TrueAACSB: Reflective ThinkingPage: 28

18. Competitive behavior—one person against another or one group against another—is one of the basic principles of TQ.Answer: FalseAACSB: DiversityPage: 29

19. Agency theory views the management system as one based on social and human values, whereas total quality is based on an economic perspective.Answer: FalseAACSB: Reflective ThinkingPage: 35


20. Agency theory suggests that information may be concealed to advance self-interests.Answer: TrueAACSB: Reflective ThinkingPage: 36

21. Agency theory assumes that risks are to be minimized and shared between the two parties.Answer: TrueAACSB: Reflective ThinkingPage: 37

22. In the organismic model, organizations are autonomous entities.Answer: FalseAACSB: Reflective ThinkingPage: 37

23. In the organismic model of organizations, work is reduced to elementary tasks with a focus on efficiency, conformity, and compliance.Answer: FalseAACSB: Reflective ThinkingPage: 37

24. The mechanical organizational model assumes that systems goals, such as the need to survive, displace performance goals, such as profit.Answer: FalseAACSB: Reflective ThinkingPage: 37

25. In the cultural organizational model, managers relinquish control and share power in order to meet the needs of the many individualsAnswer: TrueAACSB: DiversityPage: 39

MULTIPLE CHOICE QUESTIONS


26. The term _____ refers to an integrated approach to organizational performance management that results in delivery of ever-improving value to customers and stakeholders.a. fitness for useb. exceeding customer expectationsc. performance excellenced. empowermentAnswer: CAACSB: AnalyticPage: 6-7

27. Which of the following statements is not true regarding the history of quality in organizations?a. Before the Industrial Revolution, skilled craftspeople served both as

manufacturers and inspectors.b. Statistical approaches to quality control had their origins at General Electric.c. Scientific management led to “quality control” which basically meant the

separation of good from the bad product.d. Deming and Juran introduced statistical quality control to Japan as part of

General MacArthur’s rebuilding program.Answer: BAACSB: AnalyticPage: 10

28. _____ was the first non-Japanese company to win Japan’s coveted Deming Prize for quality.a. Florida Power and Lightb. General Electricc. Bell Telephone Laboratoriesd. Ford Motor CompanyAnswer: AAACSB: AnalyticPage: 11

29. 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. strategic quality; operational qualityb. macro-quality; micro-qualityc. Big Q; Little Qd. total quality; product qualityAnswer: CAACSB: Analytic


Page: 12

30. _____ refer(s) to the “bells and whistles” of a product.a. Aestheticsb. Conformancec. Featuresd. BenefitsAnswer: CAACSB: Reflective ThinkingPage: 14

31. _____ refers to the degree to which physical and performance characteristics of a product match preestablished standards.a. Conformanceb. Featuresc. Performanced. ReliabilityAnswer: AAACSB: Reflective ThinkingPage: 14

32. _____ is the subjective assessment resulting from image, advertising, or brand names.a. Reliabilityb. Perceived qualityc. Performanced. AestheticsAnswer: BAACSB: Reflective ThinkingPage: 14

33. Quality control in manufacturing is usually based on:a. Six Sigma standards.b. equipment standards.c. customer expectations.d. conformance to specifications.Answer: DAACSB: AnalyticPage: 15


34. In an ancillary manufacturing unit, the bolt manufacturing section has a value of 0.095 as the target, 0.005 as the tolerance. Which of the following is the acceptable range of values in production?

a. Between 0.090 and 0.100b. Between 0.900 and 0.010c. Between 9.500 and 1.005d. Between 0.009 and 0.001Answer: AAACSB: Reflective ThinkingPage: 15

35. Which of the following is not a difference in the management of quality in services and manufacturing?a. Customer needs and performance standards are often difficult to identify and

measure.b. The production of services typically requires a higher degree of customization

than does manufacturing.c. Customers often are involved in the service process and present while it is

being performed.d. Services are generally capital intensive, whereas manufacturing is more labor

intensive.Answer: DAACSB: Reflective ThinkingPage: 16

36. Which of the following is not one of the critical service dimensions?a. Conformityb. Consistencyc. Courtesyd. AccessibilityAnswer: AAACSB: AnalyticPage: 17

37. _____ is the term used in the health care profession to denote quality initiatives methods.a. Total health qualityb. Continuous quality improvementc. Medical quality improvementd. Comprehensive health initiativeAnswer: BAACSB: AnalyticPage: 19


38. The _____ is the highest award given to executive branch agencies for management excellence.a. Deming Prizeb. Malcolm Baldrige Awardc. National Quality Improvement Awardd. President’s Quality AwardAnswer: DAACSB: AnalyticPage: 21

39. In 1992, the chairs and CEOs of nine major U.S. corporations in cooperation with deans of business and engineering departments of major universities, and recognized consultants endorsed a definition of _____ as a people-focused management system that aims at continual increase in customer satisfaction at continually lower real cost.a. Performance excellenceb. Total qualityc. Six Sigmad. Continuous improvementAnswer: BAACSB: AnalyticPage: 22

40. Which of the following is not one of the basic principles of total quality?a. Customer and stakeholder focusb. Employee engagement and teamworkc. Management by objectivesd. A view of performance excellence as an integrated systemAnswer: CAACSB: AnalyticPage: 22

41. In a total quality environment, internal customers are the:a. customers who are part of the product testing panel.b. immediate customers, but not the end users.c. recipients of any work output.d. designated team members of the quality control team.Answer: CAACSB: Reflective ThinkingPage: 23


42. A(n) _____ is a sequence of activities that is intended to achieve some result.a. processb. operationc. methodologyd. arrayAnswer: AAACSB: AnalyticPage: 24

43. Noriaki Kano suggests that three classes of customer needs exist. Which of the following is not one of them?a. Essentialsb. Dissatisfiersc. Delighters/excitersd. SatisfiersAnswer: CAACSB: AnalyticPage: 26

44. _____ refer to those needs that are expected in a product or service.a. Essentialsb. Dissatisfiersc. Delighters/excitersd. SatisfiersAnswer: AAACSB: AnalyticPage: 26

45. _____ are the needs that customers say they want.a. Essentialsb. Dissatisfiersc. Delighters/excitersd. SatisfiersAnswer: DAACSB: AnalyticPage: 26

46. The importance of Noriaki Kano’s classification is realizing that although _____ are relatively easy to determine through routine marketing research, special effort is required to elicit customer perceptions about _____.a. dissatisfiers; satisfiers


b. delighters; excitersc. satisfiers; dissatisfiersd. delighters; satisfiersAnswer: CAACSB: AnalyticPage: 27

47. Over time, _____ become _____ as customers become used to them.a. delighters/exciters; satisfiersb. dissatisfiers; satisfiersc. satisfiers; delighters/excitersd. dissatisfiers; delighters/excitersAnswer: AAACSB: Reflective ThinkingPage: 27

48. 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. delivery time.b. execution gap.c. turnaround time.d. cycle time.Answer: DAACSB: Reflective ThinkingPage: 27

49. McGregor’s Theory X model of motivation says that:a. workers dislike work and require close supervision and control.b. workers are self-motivated, seek responsibility, and exhibit a high degree of

imagination and creativity at work.c. workers are motivated mainly by monetary progress and replenishments.d. workers are motivated if they are part of a motivated team.Answer: AAACSB: AnalyticPage: 28

50. Which of the following is not a classification of teamwork?a. Verticalb. Horizontalc. Interorganizationald. Multiorganizational


Answer: DAACSB: AnalyticPage: 29

51. At the _____ level, data provide real-time information to identify reasons for variation, determine root causes, and take corrective action as needed.a. workb. processc. strategicd. organizationalAnswer: AAACSB: Reflective ThinkingPage: 31

52. Which of the following is not performance data at the process level?a. Yieldsb. Cycle timesc. Productivity measuresd. Market indicatorsAnswer: DAACSB: AnalyticPage: 31

53. Agency theory makes the assumption that individuals in agency relationships are:a. utility maximizers.b. negotiators.c. type A individuals.d. type X individuals.Answer: AAACSB: AnalyticPage: 35

54. _____ is a central issue in agency theory, because it is a primary mechanism used by both parties to maintain and govern the relationship.a. Motivationb. Monitoringc. Authorityd. HierarchyAnswer: BAACSB: AnalyticPage: 35


55. Which of the following is not true regarding the agency theory?a. It takes a long-term perspective based on continuous improvement.b. It is based on an economic perspective.c. It propounds the belief that people are self-interested and opportunistic.d. It suggests that information may be concealed to advance self-interests.Answer: AAACSB: AnalyticPage: 36-37

56. In the _____ organizational model, work is reduced to elementary tasks with a focus on efficiency, conformity, and compliance.a. mechanisticb. organismicc. environmentald. culturalAnswer: AAACSB: AnalyticPage: 37

57. The _____ model assumes that systems goals, such as the need to survive, displace performance goals, such as profit.a. mechanisticb. organismicc. environmentald. culturalAnswer: BAACSB: AnalyticPage: 37

58. Which model does Total Quality share most similarities with?a. Mechanisticb. Organismicc. Environmentald. CulturalAnswer: BAACSB: Reflective ThinkingPage: 37

59. The _____ model views an organization as a collection of cooperative agreements entered into by individuals with free will.a. mechanisticb. organismic


c. environmentald. culturalAnswer: DAACSB: AnalyticPage: 38

60. In the cultural model, all of the following are true except:a. managers take on a more distinctive leadership role.b. employees have greater voice in establishing organizational goals.c. all structural decisions are value-based.d. learning needs are driven by adaptation to environmental forces.Answer: DAACSB: Reflective ThinkingPage: 39

ESSAY QUESTIONS

61. What is performance excellence?

Answer: 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.AACSB: Reflective ThinkingPage: 6-7

62. Describe the significance of Big Q and Little Q.Answer: Despite quality initiatives on defect reductions, organizations began to recognize that lasting improvement could not be accomplished without significant attention to the quality of the management practices used on a daily basis. In other words, they recognized that the “quality of management” is as important as the “management of quality.” This led to the use of the terms Big Q and Little Q to contrast the difference between managing for quality in all organizational processes (Big Q) and focusing solely on manufacturing quality (Little Q).AACSB: Reflective ThinkingPage: 12

63. Briefly describe the quality dimensions of manufactured products.


Answer: Manufactured products have several quality dimensions including the following:

Performance: a product’s primary operating characteristics. Features: the “bells and whistles” of a product. Reliability: the probability of a product’s surviving over a specified period

of time under stated conditions of use. Conformance: the degree to which physical and performance

characteristics of a product match preestablished standards. Durability: the amount of use one gets from a product before it physically

deteriorates or until replacement is preferable. Serviceability: the ability to repair a product quickly and easily. Aesthetics: how a product looks, feels, sounds, tastes, or smells. Perceived quality: subjective assessment resulting from image,

advertising, or brand names.AACSB: Reflective ThinkingPage: 14

64. Describe in brief the most important dimensions of service quality.Answer: The most important dimensions of service quality are the following:

Time: How much time must a customer wait? Timeliness: Will a service be performed when promised? Completeness: Are all items in the order included? Courtesy: Do frontline employees greet each customer cheerfully? Consistency: Are services delivered in the same fashion for every

customer, and every time for the same customer? Accessibility and convenience: Is the service easy to obtain? Accuracy: Is the service performed right the first time? Responsiveness: Can service personnel react quickly and resolve

unexpected problems?AACSB: Reflective ThinkingPage: 17

65. What are the points organizations have to look into beyond product orientation to ensure service quality?Answer: 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:

The quality characteristics that a firm should control may not be the obvious ones.

Behavior is a quality characteristic. Image is a major factor in shaping customer expectations of a service and

in setting standards by which customers evaluate that service. Establishing and measuring service levels may be difficult.


Quality control activity may be required at times or in places where supervision and control personnel are not present.

AACSB: Reflective ThinkingPage: 18

66. What are the principles of total quality?Answer: The principles of TQ involve some very basic management concepts: (1) customer and stakeholder focus; (2) a process orientation supported by continuous improvement and learning; (3) employee engagement and teamwork; (4) management by fact; (5) a strategic focus on quality as a source of competitive advantage; and (6) visionary leadership that views performance excellence as an integrated system.AACSB: Reflective ThinkingPage: 22

67. How is empowerment related to employee engagement?Answer: 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.AACSB: Reflective ThinkingPage: 28

68. Describe the three levels at which data support organizational functioning.Answer: 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.AACSB: Reflective ThinkingPage: 31

69. Illustrate the differences between TQ and agency theory.Answer: The following are the major differences between TQ and agency theory:


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.

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.

Sharing information to achieve these goals is fundamental to TQ, whereas agency theory suggests that information may be concealed to advance self-interests.

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.

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.

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.

AACSB: Reflective ThinkingPage: 35-37

70. Describe the three major organizational models.Answer: Three major organizational models that management theorists have studied are the mechanistic, organismic, and cultural models of organizations.

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.

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.

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.

AACSB: Reflective ThinkingPage: 37


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CHAPTER 1 - TestBankTeam.Com · Web viewWhat are the principles of total quality? Answer: The principles of TQ involve some very basic management concepts: (1) customer and stakeholder