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CHAPTER 1

INTRODUCTION 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: True

AACSB: Analytic

Page: 6

. Pursuant to the develo!ment of "scientific management#$ quality control was

carried out %y s&illed crafts!eo!le# who served %oth as manufacturers and

ins!ectors# %uilding quality into their !roducts.Answer: 'alse

AACSB: AnalyticPage: 1(

). *n 1+,-# the .S /overnment designated 0ovem%er as the 0ational uality

2onth.

Answer: True

AACSB: AnalyticPage: 11

-. Tolerances are acce!ta%le deviations from targets.

Answer: True


3. Performance e4cellence can %e defined as "any !rimary or com!lementaryactivity that does not directly !roduce a !hysical !roduct.$

Answer: 'alse


6. nli&e services# manufacturing is !erformed away from the customer.

Answer: True

AACSB: 5eflective Thin&ing

Page: 16

(11 Cengage 7earning. All 5ights 5eserved. 2ay not %e scanned# co!ied or

du!licated# or !osted to a !u%licly accessi%le we%site# in whole or in !art.

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8. 'or an airline com!any# "on time arrival$ for an airline is a measure of service!erformance while frequent flyer awards and "%usiness class$ sections re!resent

features.

Answer: TrueAACSB: 5eflective Thin&ing

Page: 18

,. 0ot9for9!rofit organiations are ado!ting quality !rinci!les %ecause of their

im!act on the %ottom line.

Answer: 'alseAACSB: 5eflective Thin&ing

Page: 1

+. 'rom a total quality !ers!ective# all strategic decisions a com!any ma&es are

"customer9driven.$Answer: True


Page: )

1(. T views everyone inside the enter!rise as a customer of an internal or e4ternal

su!!lier and a su!!lier of an e4ternal or internal customer.Answer: True


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11. The "voice of the customer$ refers to %oth near9term and longer9term customerneeds and e4!ectations.

Answer: True

AACSB: Analytic

Page: -

1. The traditional way of viewing an organiation is %y surveying the horiontaldimension.

Answer: 'alse

AACSB: 5eflective Thin&ingPage: -



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1). "Continuous im!rovement$ refers to %oth incremental and "%rea&through$

im!rovement.

Answer: TrueAACSB: Analytic

Page: 6

1-. Considering the three classes of needs suggested %y 0oria&i ;ano# the required

safety features in an automo%ile is an e4am!le of a satisfier.Answer: 'alse


Page: 6

13. Process time refers to the time it ta&es to accom!lish one cycle of a !rocess.

Answer: 'alse


16. A firm that is characteried %y fle4i%ility and short cycle times is considered to %e

agile.Answer: True


Page: 8

18.

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(. Agency theory suggests that information may %e concealed to advance self9

interests.

Answer: TrueAACSB: 5eflective Thin&ing

Page: )6

1. Agency theory assumes that ris&s are to %e minimied and shared %etween the two

!arties.Answer: True


Page: )8

. *n the organismic model# organiations are autonomous entities.

Answer: 'alse

AACSB: 5eflective Thin&ingPage: )8

). *n the organismic model of organiations# wor& is reduced to elementary tas&swith a focus on efficiency# conformity# and com!liance.

Answer: 'alse


Page: )8

-. The mechanical organiational model assumes that systems goals# such as theneed to survive# dis!lace !erformance goals# such as !rofit.

Answer: 'alse


3. *n the cultural organiational model# managers relinquish control and share !owerin order to meet the needs of the many individuals

Answer: True

AACSB: >iversityPage: )+

MULTIPLE CHOICE QUESTIONS



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6. The term ????? refers to an integrated a!!roach to organiational !erformance

management that results in delivery of ever9im!roving value to customers and

sta&eholders.a. fitness for use

%. e4ceeding customer e4!ectations

c. !erformance e4cellenced. em!owerment

Answer: C


8. @hich of the following statements is not true regarding the history of quality inorganiations

a. Before the *ndustrial 5evolution# s&illed crafts!eo!le served %oth as

manufacturers and ins!ectors.

%. Statistical a!!roaches to quality control had their origins at /eneral

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Page: 1

)(. ????? referEsF to the "%ells and whistles$ of a !roduct.

a. Aesthetics

%. Conformancec. 'eatures

d. Benefits

Answer: CAACSB: 5eflective Thin&ing

Page: 1-

)1. ????? refers to the degree to which !hysical and !erformance characteristics of a

!roduct match !reesta%lished standards.

a. Conformance

%. 'eaturesc. Performance

d. 5elia%ilityAnswer: A


Page: 1-

). ????? is the su%Gective assessment resulting from image# advertising# or %rand

names.a. 5elia%ility

%. Perceived quality

c. Performanced. Aesthetics

Answer: B

AACSB: 5eflective Thin&ingPage: 1-

)). uality control in manufacturing is usually %ased on:a. Si4 Sigma standards.

%. equi!ment standards.

c. customer e4!ectations.d. conformance to s!ecifications.

Answer: >




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)-. *n an ancillary manufacturing unit# the %olt manufacturing section has a value of

(.(+3 as the target# (.((3 as the tolerance. @hich of the following is the

acce!ta%le range of values in !roduction

a. Between (.(+( and (.1((

%. Between (.+(( and (.(1(c. Between +.3(( and 1.((3

d. Between (.((+ and (.((1

Answer: AAACSB: 5eflective Thin&ing

Page: 13

)3. @hich of the following is not a difference in the management of quality in

services and manufacturing

a. Customer needs and !erformance standards are often difficult to identify and

measure.%. The !roduction of services ty!ically requires a higher degree of customiation

than does manufacturing.c. Customers often are involved in the service !rocess and !resent while it is

%eing !erformed.

d. Services are generally ca!ital intensive# whereas manufacturing is more la%orintensive.

Answer: >


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)6. @hich of the following is not one of the critical service dimensions

a. Conformity%. Consistency

c. Courtesy

d. Accessi%ilityAnswer: A

AACSB: Analytic

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)8. ????? is the term used in the health care !rofession to denote quality initiatives

methods.a. Total health quality

%. Continuous quality im!rovement

c. 2edical quality im!rovementd. Com!rehensive health initiative

Answer: B

AACSB: Analytic

Page: 1+



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),. The ????? is the highest award given to e4ecutive %ranch agencies formanagement e4cellence.

a. >eming Prie

%. 2alcolm Baldrige Awardc. 0ational uality *m!rovement Award

d. Presidents uality Award

Answer: >AACSB: Analytic

Page: 1

)+. *n 1++# the chairs and C

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-. AEnF ????? is a sequence of activities that is intended to achieve some result.

a. !rocess%. o!eration

c. methodology

d. arrayAnswer: A

AACSB: Analytic

Page: -

-). 0oria&i ;ano suggests that three classes of customer needs e4ist. @hich of the

following is not one of thema. issatisfiers

c. >elightersIe4citers

d. SatisfiersAnswer: C


--. ????? refer to those needs that are e4!ected in a !roduct or service.

a. issatisfiers

c. >elightersIe4citersd. Satisfiers

Answer: A


-3. ????? are the needs that customers say they want.

a. issatisfiers

c. >elightersIe4citersd. Satisfiers

Answer: >


-6. The im!ortance of 0oria&i ;anos classification is realiing that although ?????

are relatively easy to determine through routine mar&eting research# s!ecial effort

is required to elicit customer !erce!tions a%out ?????.

a. dissatisfiersD satisfiers



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%. delightersD e4citers

c. satisfiersD dissatisfiers

d. delightersD satisfiersAnswer: C

AACSB: Analytic

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-8. Hver time# ????? %ecome ????? as customers %ecome used to them.a. delightersIe4citersD satisfiers

%. dissatisfiersD satisfiers

c. satisfiersD delightersIe4citers

d. dissatisfiersD delightersIe4citersAnswer: A


Page: 8

-,. Sylvia orders a security system to %e installed at her house. After !lacing theorder# the com!any too& three days to install it. The time ta&en for the order to %e

delivered is referred to as:

a. delivery time.%. e4ecution ga!.

c. turnaround time.

d. cycle time.

Answer: >AACSB: 5eflective Thin&ing

Page: 8

-+. 2c/regors Theory J model of motivation says that:

a. wor&ers disli&e wor& and require close su!ervision and control.%. wor&ers are self9motivated# see& res!onsi%ility# and e4hi%it a high degree of

imagination and creativity at wor&.

c. wor&ers are motivated mainly %y monetary !rogress and re!lenishments.

d. wor&ers are motivated if they are !art of a motivated team.Answer: A

AACSB: Analytic

Page: ,

3(. @hich of the following is not a classification of teamwor&a. Kertical

%. Loriontal

c. *nterorganiational

d. 2ultiorganiational



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Answer: >

AACSB: Analytic

Page: +

31. At the ????? level# data !rovide real9time information to identify reasons forvariation# determine root causes# and ta&e corrective action as needed.

a. wor&

%. !rocessc. strategic

d. organiational

Answer: A


3. @hich of the following is not !erformance data at the !rocess levela. Mields

%. Cycle timesc. Productivity measures

d. 2ar&et indicators


Page: )1

3). Agency theory ma&es the assum!tion that individuals in agency relationshi!s are:

a. utility ma4imiers.

%. negotiators.c. ty!e A individuals.

d. ty!e J individuals.

Answer: AAACSB: Analytic

Page: )3

3-. ????? is a central issue in agency theory# %ecause it is a !rimary mechanism used

%y %oth !arties to maintain and govern the relationshi!.

a. 2otivation%. 2onitoring

c. Authority

d. LierarchyAnswer: B

AACSB: Analytic

Page: )3



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33. @hich of the following is not true regarding the agency theory

a. *t ta&es a long9term !ers!ective %ased on continuous im!rovement.

%. *t is %ased on an economic !ers!ective.c. *t !ro!ounds the %elief that !eo!le are self9interested and o!!ortunistic.

d. *t suggests that information may %e concealed to advance self9interests.


Page: )69)8

36. *n the ????? organiational model# wor& is reduced to elementary tas&s with a

focus on efficiency# conformity# and com!liance.

a. mechanistic%. organismic

c. environmental

d. cultural


Page: )8

38. The ????? model assumes that systems goals# such as the need to survive#dis!lace !erformance goals# such as !rofit.

a. mechanistic

%. organismic

c. environmentald. cultural

Answer: B

AACSB: AnalyticPage: )8

3,. @hich model does Total uality share most similarities with

a. 2echanistic

%. Hrganismic

c.

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c. environmental

d. cultural


Page: ),

6(. *n the cultural model# all of the following are true e4ce!t:

a. managers ta&e on a more distinctive leadershi! role.%. em!loyees have greater voice in esta%lishing organiational goals.

c. all structural decisions are value9%ased.

d. learning needs are driven %y ada!tation to environmental forces.

Answer: >AACSB: 5eflective Thin&ing

Page: )+

ESSAY QUESTIONS

61. @hat is !erformance e4cellence

Answer: The term !erformance e4cellence refers to an integrated a!!roach to

organiational !erformance management that results in delivery of ever9

im!roving value to customers and sta&eholders# contri%uting to organiational

sustaina%ilityD im!rovement of overall organiational effectiveness andca!a%ilitiesD and organiational and !ersonal learning. Performance e4cellence is

a characteristic of todays most outstanding organiations and is a requisite for

!roviding high quality goods and services.AACSB: 5eflective Thin&ing

Page: 698

6. >escri%e the significance of Big and 7ittle .

Answer: >es!ite quality initiatives on defect reductions# organiations %egan to

recognie that lasting im!rovement could not %e accom!lished without significantattention to the quality of the management !ractices used on a daily %asis. *n other

words# they recognied that the "quality of management$ is as im!ortant as the

"management of quality.$ This led to the use of the terms Big and 7ittle tocontrast the difference %etween managing for quality in all organiational

!rocesses EBig F and focusing solely on manufacturing quality E7ittle F.

AACSB: 5eflective Thin&ingPage: 1

6). Briefly descri%e the quality dimensions of manufactured !roducts.



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Answer: 2anufactured !roducts have several quality dimensions including the

following:

Performance: a !roducts !rimary o!erating characteristics.

'eatures: the "%ells and whistles$ of a !roduct.

5elia%ility: the !ro%a%ility of a !roducts surviving over a s!ecified !eriod

of time under stated conditions of use. Conformance: the degree to which !hysical and !erformance

characteristics of a !roduct match !reesta%lished standards.

>ura%ility: the amount of use one gets from a !roduct %efore it !hysically

deteriorates or until re!lacement is !refera%le.

Servicea%ility: the a%ility to re!air a !roduct quic&ly and easily.

Aesthetics: how a !roduct loo&s# feels# sounds# tastes# or smells.

Perceived quality: su%Gective assessment resulting from image#

advertising# or %rand names.

AACSB: 5eflective Thin&ingPage: 1-

6-. >escri%e in %rief the most im!ortant dimensions of service quality.

Answer: The most im!ortant dimensions of service quality are the following:

Time: Low much time must a customer wait

Timeliness: @ill a service %e !erformed when !romised

Com!leteness: Are all items in the order included

Courtesy: >o frontline em!loyees greet each customer cheerfully

Consistency: Are services delivered in the same fashion for every

customer# and every time for the same customer

Accessi%ility and convenience: *s the service easy to o%tain

Accuracy: *s the service !erformed right the first time 5es!onsiveness: Can service !ersonnel react quic&ly and resolve

une4!ected !ro%lemsAACSB: 5eflective Thin&ing

Page: 18

63. @hat are the !oints organiations have to loo& into %eyond !roduct orientation to

ensure service quality

Answer: Service organiations must loo& %eyond !roduct orientation and !aysignificant attention to customer transactions and em!loyee %ehavior. Several

!oints that service organiations should consider are as follows: The quality characteristics that a firm should control may not %e the

o%vious ones.

Behavior is a quality characteristic.

*mage is a maGor factor in sha!ing customer e4!ectations of a service and

in setting standards %y which customers evaluate that service.

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uality control activity may %e required at times or in !laces where

su!ervision and control !ersonnel are not !resent.

AACSB: 5eflective Thin&ingPage: 1,

66. @hat are the !rinci!les of total quality

Answer: The !rinci!les of T involve some very %asic management conce!ts: E1F

customer and sta&eholder focusD EF a !rocess orientation su!!orted %y continuousim!rovement and learningD E)F em!loyee engagement and teamwor&D E-F

management %y factD E3F a strategic focus on quality as a source of com!etitive

advantageD and E6F visionary leadershi! that views !erformance e4cellence as anintegrated system.


Page:

68. Low is em!owerment related to em!loyee engagement

Answer:

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T views the management system as one %ased on social and human

values# whereas agency theory is %ased on an economic !ers!ective that

removes !eo!le from the equation. Agency theory assumes an inherent conflict of goals %etween agents and

!rinci!als# and that agent goals are aligned with !rinci!al goals through

formal contracts. *n T# everyone in the organiation shares commongoals and a continuous im!rovement !hiloso!hy.

Sharing information to achieve these goals is fundamental to T# whereas

agency theory suggests that information may %e concealed to advance self9

interests.

T ta&es a long9term !ers!ective %ased on continuous im!rovement#

whereas agency theory focuses on short9term achievement of the contract

%etween the !rinci!al and agent.

*n T# ris& ta&ing is necessary in order to innovate# whereas agency theory

assumes that ris&s are to %e minimied and shared %etween the two !arties.

'inally# T leaders !rovide a quality vision and !lay a strategic role in the

organiationD leaders in agency theory develo! control mechanisms andengage in monitoring.


Page: )39)8

8(. >escri%e the three maGor organiational models.

Answer: Three maGor organiational models that management theorists havestudied are the mechanistic# organismic# and cultural models of organiations.

The mechanistic model views an organiation as a tool or a machine

designed solely to create !rofits for its owners. @or& is reduced to

elementary tas&s with a focus on efficiency# conformity# and com!liance. The organismic model views organiational systems as living organisms

that de!end on their environments for resources and adGust the %ehavior of

their !arts to maintain the !ro!erties of the whole within acce!ta%le limits.This model assumes that systems goals# such as the need to survive#

dis!lace !erformance goals# such as !rofit.

The cultural model views an organiation as a collection of coo!erative

agreements entered into %y individuals with free will. The organiations

culture and social environment are enacted or socially constructed %y

organiation mem%ers. 'rom the !ers!ective of this model# the goal of an

organiation is to serve the diverse needs of all whom it affects=its

sta&eholders.AACSB: 5eflective Thin&ing

Page: )8



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