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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
AACSB: AnalyticPage: 13
3. Performance e4cellence can %e defined as "any !rimary or com!lementaryactivity that does not directly !roduce a !hysical !roduct.$
Answer: 'alse
AACSB: AnalyticPage: 13
6. nli&e services# manufacturing is !erformed away from the customer.
Answer: True
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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
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,. 0ot9for9!rofit organiations are ado!ting quality !rinci!les %ecause of their
im!act on the %ottom line.
Answer: 'alseAACSB: 5eflective Thin&ing
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+. 'rom a total quality !ers!ective# all strategic decisions a com!any ma&es are
"customer9driven.$Answer: True
AACSB: 5eflective Thin&ing
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1(. T views everyone inside the enter!rise as a customer of an internal or e4ternal
su!!lier and a su!!lier of an e4ternal or internal customer.Answer: True
AACSB: 5eflective Thin&ing
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11. The "voice of the customer$ refers to %oth near9term and longer9term customerneeds and e4!ectations.
Answer: True
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1. The traditional way of viewing an organiation is %y surveying the horiontaldimension.
Answer: 'alse
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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
AACSB: 5eflective Thin&ing
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13. Process time refers to the time it ta&es to accom!lish one cycle of a !rocess.
Answer: 'alse
AACSB: AnalyticPage: 8
16. A firm that is characteried %y fle4i%ility and short cycle times is considered to %e
agile.Answer: True
AACSB: 5eflective Thin&ing
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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
AACSB: 5eflective Thin&ing
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. *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
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Page: )8
-. The mechanical organiational model assumes that systems goals# such as theneed to survive# dis!lace !erformance goals# such as !rofit.
Answer: 'alse
AACSB: 5eflective Thin&ingPage: )8
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
AACSB: AnalyticPage: 698
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
AACSB: 5eflective Thin&ing
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). ????? 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: >
AACSB: AnalyticPage: 13
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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: >
AACSB: 5eflective Thin&ing
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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
AACSB: AnalyticPage: 6
--. ????? refer to those needs that are e4!ected in a !roduct or service.
a. issatisfiers
c. >elightersIe4citersd. Satisfiers
Answer: A
AACSB: AnalyticPage: 6
-3. ????? are the needs that customers say they want.
a. issatisfiers
c. >elightersIe4citersd. Satisfiers
Answer: >
AACSB: AnalyticPage: 6
-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
AACSB: 5eflective Thin&ing
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-,. 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
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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
AACSB: 5eflective Thin&ingPage: )1
3. @hich of the following is not !erformance data at the !rocess levela. Mields
%. Cycle timesc. Productivity measures
d. 2ar&et indicators
Answer: >AACSB: Analytic
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.
Answer: AAACSB: Analytic
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
Answer: AAACSB: Analytic
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
Answer: >AACSB: Analytic
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.
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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.
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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.
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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.
AACSB: 5eflective Thin&ing
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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