Deck 2: Ensuring High Quality and Productivity

Question 1

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

A) They require the participation of higher-level management only.
B) They are exclusively handled by employees at the lower level.
C) They are usually outsourced.
D) They require the involvement of employees at all levels.

Answer 1

D
Explanation: Total quality management (TQM) strategies call for the involvement of employees at all levels. It is an organization-wide focus on satisfying customers by continuously improving every business process for delivering goods or services.

Question 2

Quality control is best defined as an organization's efforts to:

A) prevent or correct defects in its goods or services or to improve them in some way.
B) produce goods that are of the same quality as its competitors' goods.
C) control all whistleblowing activities so as to maintain the positive image of the organization.
D) let employees know that they will be penalized for any complaints related to the quality of their goods or services.

Answer 2

A
Explanation: Quality control refers to an organization's efforts to prevent or correct defects in its goods or services or to improve them in some way. Many organizations-especially large ones-have a department or employee devoted to identifying defects and promoting high quality.

Question 3

Poor quality work is most likely to lead to:

A) reduced recalls.
B) high costs.
C) high return on investment.
D) higher revenues.

Answer 3

B
Explanation: Poor-quality work can lead to high costs. Poor quality often results in much wasted time and materials, in addition to requiring that unacceptable items be fixed or discarded.

Question 4

In the context of dimensions of quality,_____ refers to the way a product looks,feels,tastes,and smells.

A) reliability
B) features
C) aesthetics
D) conformance

Question 5

Statistical process control is a quality-control technique that primarily involvesusing statistics_____.

A) to monitor production quality during the production process
B) to improve production quality of products
C) to look for defects in the random sampling process
D) as a formal process in which teams study processes to limit defects to 3.4 per million operations

Question 6

When a city's park district considers ways to upgrade its playground equipment or improve the programs it offers senior citizens,it is focusing on:

A) concurrent control.
B) process control.
C) method control.
D) product quality control.

Question 7

Productivity is best defined as the:

A) success rate of the efforts to prevent defects in a firm's goods or services.
B) amount of results an organization gets for a given amount of inputs.
C) statistical representation of the effectiveness of a quality control method.
D) organization-wide focus on satisfying lifelong customers.

Question 8

Dexter,a supervisor at Rensil Inc.,emphasizes how to do things in a way that results in better quality.In the context of types of quality control,Dexter is inclined toward _____.

A) product conformance
B) process control
C) turnover
D) benchmarking

Question 9

In the context of dimensions of quality,_____ refers to the speed and ease of repairing a product.

A) serviceability
B) performance
C) reliability
D) conformance

Question 10

In the context of dimensions of quality,_____ primarily refers to the length of a product's life.

A) aesthetics
B) conformance
C) durability
D) reliability

Question 11

In the context of dimensions of quality,_____ primarily refers to supplements to a product's basic operating characteristics.

A) performance
B) conformance
C) aesthetics
D) features

Question 12

Supervisors must care about quality because poor quality:

A) limits the organization's access to resources.
B) leads to reduced organizational costs.
C) prevents inspection and rework.
D) saves much needed raw materials.

Question 13

In the context of dimensions of quality,_____ refers to a product's primary operating characteristic,such as the picture clarity of a television set.

A) aesthetics
B) conformance
C) performance
D) features

Question 14

Barbara visits a car showroom.She test drives the car she likes and thinks that the car looks amazing.She likes the smell of the car and the color of its interiors.In the context of dimensions of quality,Barbara likes the _____ of the car.

A) reliability
B) features
C) aesthetics
D) conformance

Question 15

Attracting new customers costs several times more per customer than keeping existing customers satisfied primarily because it increases:

A) inventory costs.
B) marketing costs.
C) labor costs.
D) overhead costs.

Question 16

The most accurate way to apply statistical quality control is to use a:

A) specific sample.
B) random sample.
C) quota sample.
D) stratified sample.

Question 17

In the context of dimensions of quality,_____ refers to the degree to which aproduct's design and operating characteristics meet established standards.

A) reliability
B) performance
C) durability
D) conformance

Question 18

In the context of dimensions of quality,_____ primarily refers to the probability that a product will function properly and not break down during a specified period.

A) reliability
B) conformance
C) durability
D) aesthetics

Question 19

Statistical quality control primarily involves:

A) maintaining a customer feedback log and making the necessary improvements in products whenever required.
B) checking each and every product for possible defects so as to reduce high costs related to poor quality.
C) looking for defects in parts, finished goods, or other outcomes selected through a sampling technique.
D) monitoring production quality on an ongoing basis and making corrections whenever the results show that the process is out of control.

Question 20

Process control is best defined as the quality control method that emphasizes:

A) how to do things in a way that leads to better quality.
B) how to improve only products.
C) ways to improve only services.
D) the use of sampling techniques to find defects in products.

Question 21

Which of the following is a series of standards adopted by the International Organization for Standardization to spell out acceptable criteria for quality systems?

A) ISO 9000
B) Total quality management guidelines
C) Malcolm Baldrige guidelines
D) Benchmarking

Question 22

Which of the following is an annual award administered by the U.S.Department of Commerce and given to the company that shows the highest quality performance in seven categories-leadership; strategic planning; customer and market focus; measurement,analysis,and knowledge management; human resource focus; process management; and results?

A) Firestone Inner Circle of Quality Award
B) Baldrige Performance Excellence Program
C) ISO 9000 certification
D) The Presidential Award for Management Excellence

Question 23

Six Sigma is best defined as a process-oriented quality-control method:

A) designed to improve the operations output to 99.9997 percent perfect.
B) aimed at producing goods with zero percent defect.
C) designed to reduce errors to 99.9997 percent perfect.
D) designed to correct problems to limit defects to 2.4 per million operations.

Question 24

In the context of quality improvement methods,_____ can be best described as using a formal process in which teams study processes and correct problems to limit defects to 3.4 per million operations.

A) lean process improvement
B) Six Sigma
C) zero-defects approach
D) total quality management

Question 25

Betty,the CEO of Raxen Inc.,thinks her organization must work as a unit toward enhancing the company's processes.She believes this will help her organization to improve customer satisfaction.In the context of quality improvement methods,Betty is most inclined toward _____.

A) employee involvement teams
B) statistical process control
C) total quality management
D) lean process improvement

Question 26

Joseph M.Juran,one of the experts who played an important role in spreading the idea of total quality management (TQM),taught quality concepts to the Japanese.He emphasized the view that management should seek to maintain and improve quality through efforts on two levels: the organization as a whole and the _____.

A) department primarily formed to improve product quality
B) human resource department of the organization
C) most productive departments in the organization
D) individual departments in the organization

Question 27

Employee involvement teams are most successful when membership is _____.

A) given to all workers whose productivity levels are high
B) made voluntary
C) given to workers who qualify for the program
D) made mandatory

Question 28

An operator who periodically measures some aspect of ongoing production and plots the results on a control chart is most likely using:

A) statistical quality control.
B) statistical process control.
C) the zero-defects approach.
D) the just-in-time approach.

Question 29

_____ can be best described as the quality improvement method that involves focusing the whole organization on continuously improving every business process so it satisfies customers.

A) Lean process improvement
B) Zero-defects approach
C) Total quality management
D) Statistical process control

Question 30

The primary objective of total quality management (TQM)is to:

A) meet or exceed customer expectations.
B) maximize profits for a company and its employees.
C) form a sustainable organization.
D) protect the employees from any form of discrimination.

Question 31

In the context of quality improvement methods,employee involvement teams primarily involve:

A) using a formal process in which teams study processes and correct problems to limit defects to 3.4 per million operations.
B) setting up teams of employees to identify quality-related problems and come up with possible solutions.
C) focusing the whole organization on continuously improving every business process so it satisfies customers.
D) using statistics to monitor production quality during the production process.

Question 32

Eliza,a supervisor,tells her team to cut all costs other than the costs that add value for her company's customers.In the context of quality improvement methods,Eliza is most inclined toward _____.

A) zero-defects approach
B) statistical process control
C) total quality management
D) lean process improvement

Question 33

Ronald,a production manager at FindSolutions Inc.,finds that his organization's process efficiency has reduced over the past three years.He asks one the supervisors to set up two groups of 10 workers each.He assigns these groups the responsibility to assess the company's processes,make decisions,and evaluate factors that reduce efficiency.In the context of quality improvement methods,Ronald is engaging _____.

A) employee involvement teams
B) statistical process control
C) the zero-defects approach
D) lean process improvement

Question 34

_____ refers to the worth the customer places on what he or she gets (the total package of goods and services)relative to cost of acquiring it.

A) Benchmark
B) Quality
C) Value
D) Standard

Question 35

Which of the following is most likely to be the first step that the members of an employee involvement team should take?

A) They should select the problems to focus on first step.
B) They should identify quality problems related to the employees' areas of responsibility.
C) They should analyze the problem to identify the causes of poor quality.
D) They should identify possible solutions and select one to recommend to management.

Question 36

Employee involvement teams are most successful when:

A) a strict hierarchical structure is maintained.
B) supervisors outsource the entire process.
C) all the group members are eager to participate.
D) the supervisor follows the essay appraisal method.

Question 37

Which of the following skills is most important for an employee involvement team to be successful?

A) Conceptual skills
B) Human relations skills
C) Technical skills
D) Problem-solving skills

Question 38

In the context of quality improvement methods,_____ can be best described as a practice that considers any costs other than a cost that adds value for the customer to be wasteful and,hence,something to be eliminated.

A) lean process improvement
B) Six Sigma
C) total quality management
D) zero-defects approach

Question 39

The zero-defects approach is best defined as the quality control technique:

A) designed to improve the product or service output to 99.97 percent perfect.
B) in which an organization works toward making its goods and services free of problems.
C) in which the employees look for defects in parts, finished goods, or other outcomes selected through a sampling technique.
D) in which the top performer of a process is identified and imitated.

Question 40

A _____ can be best defined as the quality-control technique based on the view that everyone in the organization should work toward the goal of delivering such high quality that all aspects of the organization's goods and services are free of problems.

A) lean process improvement
B) statistical process control
C) zero-defects approach
D) just-in-time approach

Question 41

In the context of quality improvement,_____ is a larger goal toward which an organization's quality improvement methods should be directed.

A) profit
B) value
C) return on investment
D) cost reduction

Question 42

In the context of measuring productivity,when the bottom (denominator)of a fraction gets bigger,the number _____.

A) remains same
B) becomes zero
C) becomes greater
D) becomes smaller

Question 43

In the context of constraints on productivity,when government regulations seem illogical,an organization:

A) should disobey the regulations.
B) should ignore the regulations.
C) must follow the government regulations even if they are illogical.
D) must alter the government regulations to suit company's needs.

Question 44

When the productivity of organizations in a country improves,people:

A) are forced to buy goods and services at higher prices.
B) get goods and services at lower prices.
C) end up paying for services that are taxed at higher rates.
D) get lower wages from their employers.

Question 45

In the context of productivity equation,to increase productivity,a supervisor needs to:

A) increase outputs and reduce inputs.
B) decrease outputs and increase inputs.
C) increase inputs significantly to lower the pace of outputs.
D) decrease outputs significantly to increase the pace of inputs.

Question 46

Productivity is most likely to improve when:

A) the process quality is improved upon so that employees work more efficiently.
B) an organization's managers decide to put the defective products up for sale.
C) the output of a department or an organization increases along with the increase in cost.
D) an organization adheres strictly to the EEOC guidelines.

Question 47

Improving productivity requires:

A) increasing employees' daily targets only.
B) avoiding employee recommendations regarding changes.
C) changing employee attitudes.
D) enhancing employee negotiation skills.

Question 48

Jack is a new executive at Costel Inc.He frequently uses social networking sites at his office to keep his job-related stress low.However,this results in low productivity.In the context of constraints on productivity,this is an example of _____ affecting productivity.

A) management limitations
B) employee skills
C) union rules
D) employee attitude

Question 49

Mary processes 96 permit applications in an eight-hour day at the secretary of state's office.If Mary earns $6 per hour,what would be her productivity measure?

A) 2
B) 6
C) 16
D) 48

Question 50

Which of the following productivity constraints is most difficult to overcome?

A) A low-skilled employee giving low productivity
B) An employee needing more training
C) An employee being unable to learn
D) A supervisor giving unclear instructions

Question 51

Foodie,a fast-food joint,offers home delivery service.The manager realizes that the purchase of a few motorcycles would make their service more efficient.The estimated cost of purchase is set at $100,000 and it is expected to save $20,000 per year.In this case,the payback period would be _____ years.

A) two
B) three
C) five
D) six

Question 52

The basic way to measure productivity is to _______.

A) divide outputs by inputs
B) add outputs and inputs
C) multiply inputs and outputs
D) subtract inputs from outputs

Question 53

Marc,an employee at Tezel Inc.,was assigned work by his manager.The manager asked him to start work as soon as he receives instructions from his supervisor.Marc waits for three hours before his supervisor gives him instructions to start work.In the context of productivity,the time spent on waiting for instructions is called _____.

A) interim time
B) payback time
C) downtime
D) overtime

Question 54

Operative employees will contribute to improve productivity only if they believe:

A) they will get technical help from their supervisors.
B) they can ignore government regulations in order to accommodate union rules.
C) they can change their allotted tasks according to their skills.
D) the management is truly committed to this objective.

Question 55

A percentage that represents the average annual earnings for each dollar of a given investment is referred to as the:

A) average downtime.
B) average rate of return.
C) average idle time.
D) total payback period.

Question 56

Quality improvement directed toward value ideally begins when a(n):

A) supervisor makes decisions aimed at balancing present needs and the needs of future generations.
B) organization starts to recruit more people with sustainable skills.
C) organization's employees communicate with customers to determine their needs and wants.
D) organization sets up departments according to the goods or services produced.

Question 57

The superstore supervised by Joanne had such high retail sales for the year that the company president decided to identify her store as the premier store for comparisons,not only in terms of gross sales,but also for efficiency in all areas of operations.All the supervisors were then asked to learn and carry out the practices of Joanne at their own stores.What is this practice of determining the quality standards by measuring against the top performer of a particular process termed as?

A) Product control
B) Benchmarking
C) Free riding
D) Performance appraisal

Question 58

The practice of identifying the top performer of a process,and then learning and carrying out the top performer's practices is called:

A) diversity training.
B) free riding.
C) total quality management.
D) benchmarking.

Question 59

The most effective way supervisors can overcome the productivity constraint of management limitations is by:

A) collaborating with the labor union to build a sustainable organization.
B) demonstrating by their actions and words that they are interested in the department's productivity.
C) facilitating the formation of informal groups among the members of the production team.
D) encouraging the employees to overcome their resistance to change and adapt to new technologies.

Question 60

People have a natural tendency to resist change because it is:

A) low-cost.
B) frightening.
C) predictable.
D) comfortable.

Question 61

When work levels are low,the result is _____.

A) idle time
B) detour behavior
C) increased productivity
D) low turnover

Question 62

Which of the following is true about improving productivity?

A) An organization never pays for someone who is not actually working.
B) Absenteeism is independent of the problem of lack of motivation.
C) Training aloneleads to superior performance.
D) Employees should think of ways to achieve their objectives efficiently.

Question 63

Employees often have excellent ideas for doing work better because they:

A) are good at conceptual skills.
B) are often inclined towards change.
C) can change tasks according to their skills.
D) see the problems of their jobs.

Question 64

Which of the following is true about installing modern equipment in a company?

A) Installing modern equipment can increase a company's overheads significantly.
B) A supervisor can install modern equipment only if the payback period of equipment is relatively long.
C) A supervisor can install modern equipment only if the average rate of return of the equipment is low.
D) Installing modern equipment can be expensive if its benefits are less than its cost.

Question 65

Expenses not related directly to producing goods and services are termed as:

A) staff salaries.
B) overhead.
C) core costs.
D) relative costs.

Question 66

All kinds of tactics used for postponing or avoiding work that results in wasted time are referred to as _____.

A) detour behavior
B) overhead
C) kaizen
D) free riding

Question 67

Supervisors can increase their own and their team's productivity primarily by:

A) understanding the goals of quality programs and their own role in achieving those goals.
B) implementing strict rules and dictating departmental goals that need to be achieved.
C) focusing on average rate of return and payback period of investments made on new equipment.
D) utilizing conceptual and planning skills to develop new control strategies.

Question 68

The expenses that an organization incurs on rent,utilities,and staff support are termed as:

A) return on investment.
B) relative costs.
C) core costs.
D) overhead.

Question 69

A supervisor who wants to boost productivity by increasing output must ideally:

A) ensure that the new output goals are set very high even at the cost of being unachievable.
B) emphasize the positive aspects of the change.
C) exclude employees from the decision-making process.
D) dictate the decisions to his team.

Question 70

In the context of purchasing new equipment to improve productivity,the _____ department usually has an opinion on what payback period is acceptable for the organization.

A) marketing
B) production
C) hiring
D) finance

Question 71

Reviewing and revamping the way things are done is the basic principle of _____.

A) red ocean strategy
B) brown field venturing
C) reengineering
D) patenting

Question 72

Supervisors play an important role in improving employee productivity because they:

A) are primarily required to utilize conceptual skills.
B) are in direct contact with employees.
C) determine organizational policies.
D) devise strategies that are appealing to employees.

Question 73

Magix Productions orders new equipment for the company.The new equipment costs $50,000 and will help the company to save $10,000 annually.What is the average rate of return of the equipment?

A) 15 percent
B) 20 percent
C) 35 percent
D) 40 percent

Question 74

Before a supervisor can make decisions about how to trim costs,he or she has to know where the money is going.The most important source of such information is the:

A) employee handbook.
B) code of ethics.
C) budget report.
D) vision statement.

Question 75

Downtime is best defined as the time during which:

A) employees or machines are not producing goods or services.
B) employees or machines are maximizing their production of goods and services.
C) the output of a department increases along with an increase in cost.
D) the output of a department decreases along with a decrease in cost.

Question 76

The rate at which employees leave an organization is termed as _____.

A) conformance
B) payback period
C) average rate of return
D) turnover

Question 77

_____ is the process in which teams map the details of each work process,looking for ways to eliminate waste.

A) Reengineering
B) Kaikaku
C) Kaizen
D) Seiketsu

Question 78

Which of the following would be the best way for a supervisor toensure superior quality of goods and boost productivity?

A) Seeking help exclusively from the top management
B) Utilizing conceptual skills to devise new plans
C) Training employees in human relations skills
D) Including employees in the decision-making process

Question 79

Which of the following is an example of an overhead?

A) Cost of company cafeteria
B) Cost of instruments needed for production
C) Basic salary paid to every employee
D) Amount spent on raw materials

Question 80

Donna,an employee at Falken Inc.,takes frequent breaks from her work.She has a habit of spending time gossiping with her colleagues because she feels that her job is too challenging.In the context of wastage of time,Donna's habit is an example of _____.

A) idle time
B) detour behavior
C) tardiness
D) absenteeism