Foster4 Tif Ch04 29696u
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CHAPTER 4 STRATEGIC QUALITY PLANNING MULTIPLE-CHOICE QUESTIONS STRATEGY CONTENT Answer: A Easy
1.
Strategic planning has two important dimensions. These are: A. B. C. D. E.
Answer: D Easy
2.
Strategic plan __________ answers the question of what is to be contained in the strategic plan. A. B. C. D. E.
Answer: E Moderate
3.
4.
process method operation content standardization
Which of the following is not an example of a strategic content variable? A. B. C. D. E.
Answer: C Hard
analysis and synthesis implementation and control strategic and routine proactive and standardized content and process
time leadership quality costs generic strategies planning
A comprehensive study by the United States General ing Office stated that, on average, __________ were required for companies to being to see significant results from quality improvement programs. A. B. C. D. E.
six months 1 year 3.5 years 5 years 7 years
Chapter 4: Strategic Quality Planning
Answer: C Moderate
5.
Strategic planning implies planning for: A. B. C. D. E.
Answer: D Moderate
the short term the intermediate term the long term the short term in manufacturing and the long term in services the short term in services and the long term in manufacturing
5-01. A comprehensive study by the U.S. General ing Office3
stated that, on average, ____ years were required for companies to begin to see significant results from quality improvement programs.
B C D E
A 2.0 2.5 3.0 3.5 4.0
Answer: A Moderate
5-02. The plan–do–check–act cycle is associated with _____________.
Answer: D Moderate
5-03. The text book used cheating on “No Child Left Behind” exams as an
A B C D E
W. E. Deming Walter Shewhart Joseph Jurand Armand Feigenbaum Kaoru Ishakawa
example of _____________. A B C D E
synergism autocorrelation syncretism distortion of the data synthetic division
LEADERSHIP FOR QUALITY Answer: A Easy
6.
__________ is the process by which a leader influences a group to move toward the attainment of superordinate goals. A. B. C. D. E.
Answer: D Moderate
7.
Leadership Empowerment Planning Organizing Controlling
__________ goals are those goals that pertain to achieving a higher end that benefits not just the individual, but the group.
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Chapter 4: Strategic Quality Planning
A. B. C. D. E. Answer: A Moderate
8.
Substantive Deterministic Empowerment-related Superordinate Hierarchical
Which type of power is derived from the possession of special knowledge (or the assumption that a person has special knowledge)? A. B. C. D. E.
power of expertise reward power coercive power referent power legitimate power
47
Chapter 4: Strategic Quality Planning
Answer: C Moderate
9.
What type of power is derived from the possession of special rewards that a leader can bestow upon subordinates in return for desirable action? A. B. C. D. E.
Answer: D Moderate
10.
What type of power is derived from the ability to punish followers for not following rules or guidelines? A. B. C. D. E.
Answer: B Moderate
11.
12.
13.
reward coercive legitimate the power of expertise referent
What type of power is derived from an individual’s personal charisma or charm? A. B. C. D. E.
Answer: B Moderate
power of expertise referent power legitimate power coercive power reward power
The use of __________ power tends to cause followers to rebel and try to even the power relationship? A. B. C. D. E.
Answer: A Moderate
coercive power legitimate power reward power power of expertise referent power
referent power coercive power power of expertise legitimate power reward power
A case of __________ power is the mentor who is ired by his or her protegees who want to be like the mentor. A. B. C. D. E.
reward referent legitimate coercive power of expertise
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Chapter 4: Strategic Quality Planning
Answer: E Moderate
14.
What type of power is derived from the position an individual holds in an organization? A. B. C. D. E.
Answer: E Moderate
1401.
power of expertise coercive referent reward legitimate
Which one of the following is not a function of a quality leader B C D E
A organize plan and control communicates teaches analyze
LEADERSHIP DIMENSIONS Answer: B Moderate
15.
The __________ dimension of leadership deals with such variables as height, productivity, and intelligence. A. B. C. D. E.
Answer: E Moderate
16.
Which of the following selections is not a leadership “skill?” A. B. C. D. E.
Answer: B Moderate
17.
skills trait behavioral cognitive indigenous
knowledge communication planning vision intelligence
The leader __________ approach discusses how leaders behave to identify specific leadership styles and to study the effects of leadership style on subordinate satisfaction and performance. A. B. C. D. E.
skills behavior trait characteristic qualities
49
Chapter 4: Strategic Quality Planning
Answer: B Moderate
18.
One option firms have for lowering their number of employees is through __________, which means not hiring new employees as older employees either quit or retire. A. B. C. D. E.
disintegration attrition downsizing rightsizing erosion
Answer: D Moderate
19.
A commitment to quality by top management can be demonstrated by: A. attrition B. venues C. CRI D. funding E. slogans
Answer: C Moderate
20.
The leader skill of communication includes this task: A. decision making B. evaluation skills C. conflict management D. task management E. time management
Answer: B Hard
21.
Nothing can damage a quality improvement effort faster than: A. increased pressure from outside competition B. management’s failure to consider implementing employees’ recommended changes C. increase in the amount of slack time available D. resources dedicated to the quality improvement effort E. rapid changes in technology
Answer: A Hard
22.
Commitment to quality means that leaders provide funding, slack time, and resources for quality improvements to be successful. This commitment is appropriately measured: A. B. C. D. E.
in decades in quarters in budget-cycles annually semiannually
50
Chapter 4: Strategic Quality Planning
Answer: A Moderate
2201.
The textbook list ____ quadrants of leadership skills. B C D E
Answer: A Moderate
2202.
A 2 3 4 5 6
Nothing can damage a quality improvement effort faster than management’s failure to consider ._________________ A implementing changes that employees recommend.:
B C D E
an appropriate reward system meeting times during working hours Pareto analysis semi-annual reviews
Answer: A Moderate
2203.
Acceptance of diversity is in ____________
Answer: B Moderate
2204.
Conflict management is in ____________
Answer: C Moderate
2204.
Decision making is in ____________
Answer: D Moderate
2205.
Identifying opportunities is in ____________
A B C D E
A B C D E
A B C D E
A B C D
Quadrant 1 : knowledge Quadrant 2: communication Quadrant 3: planning Quadrant 4: vision none of the above
Quadrant 1 : knowledge Quadrant 2: communication Quadrant 3: planning Quadrant 4: vision none of the above
Quadrant 1 : knowledge Quadrant 2: communication Quadrant 3: planning Quadrant 4: vision none of the above
Quadrant 1 : Quadrant 2: Quadrant 3: Quadrant 4:
knowledge communication planning vision
51
Chapter 4: Strategic Quality Planning E none of the above
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Chapter 4: Strategic Quality Planning
QUALITY AND ETHICS Answer: E Moderate
23.
An unethical approach by management would be reflected by: A. reliable products B. low defect rates C. quality D. valuing employees E. none of the above are unethical
Answer: C Moderate
24.
It has been said that the entire US economy is based on one simple principle: A. Just do it B. The Pareto principle C. When I give you a check, there are funds sufficient in my to cover it D. He who has the gold, makes the rules E. None of the above are correct
Answer: C Moderate
2401 .
The well-known mission statement of a New Bedford, Massachusetts, shipbuilder: “We build good ships. At a profit if we can, at a loss if we must. But, we build good ships.” is given in the textbook as an example
of __________ A. B. C. D. E. Answer: C Moderate
2402 .
the Pareto Principle the importance of financial planning ethics the Golden Rule, that it, He who has the gold, makes the rules the Decalogue
ing a program of continuous improvement requires the development of an appropriate A. B. C. D. E.
bottom line entrepreneurship program culture benchmarking program commission sales program
QUALITY AS STRATEGY Answer: A Moderate
25.
The three generic strategies are: A. B. C. D. E.
cost, differentiation, and focus manufacturing prowess, service quality, and durability cost, quality, and service differentiation, specialization, and customization focus, breadth, and low-cost
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Chapter 4: Strategic Quality Planning
Answer: E Moderate
26.
There are two broad categories of quality costs, namely: A. B. C. D.
production costs and service costs design costs and control costs inspection costs and manufacturing costs those costs due to quality inspection and those costs due to quality design E. those costs due to poor quality and costs associated with improving quality Answer: E Moderate
2601.
Life cycle costs are: A costs associated with employee wellness programs B costs associated with employee stage in life C employee healthcare costs D costs associated with the impact of pollution on employees E the summation of costs over the life of a product
Answer: B Moderate
2602.
In the context of quality, the acronym PAF stands for __________ A B C D E
Answer: D Moderate
2603.
platelet activating factor prevention, appraisal, failure performance assessment framework Project Air Force postal address file
Which one of the following is considered a prevention cost? A B C D E
training product quality audits set up for quality tests laboratory acceptance testing on site performance tests.
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Chapter 4: Strategic Quality Planning
PAF PARADIGM AND OTHER QUALITY-RELATED ISSUES Answer: C Moderate
27.
The PAF paradigm translates quality costs into three broad categories, which are then subdivided into other categories. The three categories are: A. B. C. D. E.
Answer: C Moderate
28.
__________ costs are those costs associated with preventing defects and imperfections from occurring. A. B. C. D. E.
Answer: A Moderate
29.
30.
Process Procedure Prevention Indigenous Spurious
Costs such as training, quality planning, process engineering and other costs associated with quality beforehand are referred to as: A. B. C. D. E.
Answer: B Moderate
price, appraisal, and facility costs process, attitude, and failure costs prevention, appraisal, and failure costs procedures, attention, and failure costs process, appraisal, and facility costs
prevention costs process costs procedure costs methods costs indigenous costs
__________ costs are associated with the direct costs of measuring quality. A. B. C. D. E.
Methods Appraisal Indigenous Prevention Process
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Chapter 4: Strategic Quality Planning
Answer: D Moderate
31.
Lab testing, inspection, test equipment and materials, losses due to destructive tests, and costs associated with assessment for ISO 9000 or other awards are examples of: A. B. C. D. E.
Answer: D Moderate
32.
__________ failure costs are those associated with on-line failure. A. B. C. D. E.
Answer: C Moderate
33.
34.
Indigenous Domestic External Internal Spurious
Failure after the customer takes possession of the product results in a(n) __________ failure cost. A. B. C. D. E.
Answer: D Hard
methods costs deterrence costs prevention costs appraisal costs process costs
spurious indigenous external internal domestic
The Lundvall-Juran quality cost model is a model that states that: A. as quality increases, customer satisfaction increases B. as expenditures in inspection and control activities increase, quality conformance should increase C. as design and manufacturing costs increase, quality increases D. as expenditures in prevention and appraisal activities increase, quality conformance should increase E. as inspection costs increase, quality decreases
Answer: E Moderate
35.
If a product is marketed to a particular region, then the generic strategy in use is: A. quality B. cost C. deliverability D. flexibility E. focus
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Chapter 4: Strategic Quality Planning
Answer: D Moderate
36.
Which of the following is not an order winning criterion according to the Hill model? price quality delivery synthesis color range
Answer: B Hard
37.
Using the planning framework developed by Terry Hill, a firm may first choose __________ as a corporate objective. A. quality B. growth C. function D. product segments E. design leadership
Answer: A Moderate
38.
Prahalad and Hamel have identified the strategic concept of: A. B. C. D. E.
Answer: B Hard
39.
core competence competitive advantage quality strategy quality control employee empowerment
Using the Prahalad and Hamel definition of competency, quality: A. is a core competency for manufacturing firms but is not a core competency for service firms B. is probably not a core competency C. is a core competency for service firms but is not a core competency for manufacturing firms D. is a core competency for international firms but is not a core competency for strictly domestic firms E. is definitely a core competency
Answer: A Moderate
3901.
Using the law of _________________, quality costs can be modeled to show the tradeoffs between these costs.
B C D E
A diminishing marginal returns. regression toward the mean Occam’s Razor law of attraction law of accelerating returns.
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Chapter 4: Strategic Quality Planning
Answer: A Moderate
3901.
Using the law of diminishing marginal returns, quality costs can be modeled to show the tradeoffs between these costs. This tradeoff model, called the _____________ model A B C D E
Answer: E Moderate
3902.
Using the law of diminishing marginal returns, quality costs can be modeled to show the tradeoffs between these costs. This tradeoff model, called the _____________ model A B C D E
Answer: D Moderate
3903.
3904.
3905.
iPod . Harley-Davidson motorcycle Rolex watch generic MP3 player Neimann-Marcus item
In the context of quality management, the acronym OWC stands for _____ A B C D E
Answer: A Moderate
Kendall-Stuart . Harley-Davidson Moseley-Braun Fawcett-Majors Lundvall-Juran
Which of the following is not typically considered a differentiated prodoct A B C D E
Answer: C Moderate
Kendall-Stuart . Joyner-Kersee Moseley-Braun Fawcett-Majors Lundvall-Juran
obstacle warning cue Office of Workers’ Compensation Order Winning Criterion Owner Will Carry Operational Watch Commander
The key to the Hill model for strategic marketing planning is reaching consensus on the __________ A B C D E
OWC LSD DOS SWF CAD
QUALITY STRATEGY PROCESS
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Chapter 4: Strategic Quality Planning
Answer: A Easy
40.
__________ refers to the variables, definitions, components, and concepts that are included in the strategy. A. B. C. D. E.
Content Process Capabilities Paradigm Procedure
Answer: A Moderate
41.
In the Forced Choice model, the organization’s position is articulated by examining: major future programs major technological forces key government issues key regulatory issues broad economic assumptions
Answer: B Moderate
42.
In the Forced Choice model, the environmental assessment is completed by examining: forecast of operational needs explicit strategies of competitors statement of mission interrelated set of financial and nonfinancial objectives major future programs
Answer: C Hard
43.
Which of the following statements in not true regarding the forced choice model? A. it is used simply for explanation purposes B. it is particularly useful for companies that are relatively inexperienced in strategic planning C. it is complicated when compared with other strategic planning models D. it is generic E. it is used by firms that are new to strategic planning
Answer: D Hard
4301.
The forced-choice model is particularly useful for companies that are relatively __________________
A experienced in strategic planning B sophisticated in their use of information technology (IT) C unsophisticated in their use of information technology (IT) D inexperienced in strategic planning
E experienced s of Hoshin planning DEPLOYING QUALITY (HOSHIN KANRI)
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Chapter 4: Strategic Quality Planning
Answer: E Moderate
44.
Hoshin is Japanese for: A. an agreement, a meeting-of-the-minds, a mutually acceptable proposal, or a mutually acceptable plan B. work, labor, toil, or effort C. quality, goodness, soundness, or feature D. a directive, an order, a request, or a plea E. a com, a course, a policy, or a plan
Answer: D Hard
45.
Kanri refers to: A. B. C. D. E.
Answer: A Hard
46.
__________ is the term used to describe the interactive nature of the Hoshin planning process. A. B. C. D. E.
Answer: E Hard
47.
48.
Catchball Kanri Taguchi Statistical process control Benchmarking
__________ involves reporting from teams and from management. A. B. C. D. E.
Answer: A Hard
quality control employee empowerment worker control management control quality conformance
Hoshin Statistical process control Kanri Taguchi Catchball
Which two-step sequence is out of order for a typical Hoshin planning process? A. senior management develops 1-year Hoshin goals – development of 3-5 years Hoshin B. product management develops 1-year Hoshin goals – senior management action plans C. product management develops 1-year Hoshin goals – product management action plans D. product management action plans – review by senior management E. senior management action plans – review by CEO 60
Chapter 4: Strategic Quality Planning
Answer: C Moderate
49.
According to the textbook, results regarding the effects of quality on business results are: A. B. C. D. E.
negative positive mixed positive for manufacturing firms and negative for service firms positive for service firms and negative for manufacturing firms
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Chapter 4: Strategic Quality Planning
Answer: D Hard
50.
There are two primary reasons that the results regarding the effects of quality on business results are mixed. The first reason is that there are many variables affecting profitability besides quality. The second reason is that: A. B. C. D. E.
Answer: A Hard
51.
quality is unimportant in the minds of some customers quality is difficult to measure business results are difficult to measure many companies implement quality incorrectly some firms spend more on quality than they recoup in increased revenues
There are two primary reasons that the results regarding the effects of quality on business results are mixed. The first is that many companies implement quality incorrectly. The second is that: A. B. C. D. E.
there are many variables affecting profitability besides quality quality is difficult to measure business results are difficult to measure companies control quality poorly some firms spend more on quality than they recoup in increase revenues
Answer: B Moderate
52.
It is expected that if the trend towards high-quality, low-priced goods continues, then the relationship between price and quality will: A. Increase B. Decrease C. Remain constant D. Reverse E. Amplify
Answer: B Moderate
53.
Dumping occurs when: A. producers sell products in a foreign country below the price they sell the same products at home B. producers sell products at below cost to improve market share and to kill competition C. producers sell low quality products D. producers wield monopolistic power to increase market share E. producers sell products at home below the price they sell the same products overseas
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Chapter 4: Strategic Quality Planning
Answer: E Moderate
54.
According to your textbook, quality will tend to provide a competitive advantage relative to other competitors by allowing forms with a high quality strategy to: by traditional channels of distribution engage in non-traditional marketing methods produce new designs more slowly than competitors produce new designs more rapidly than competitors incur lower costs they can along to consumers
Answer: C Easy
55.
The elimination of waste results in: lower quality higher price higher productivity higher cost none of these are true
Answer: B Hard
56.
Each year, the National Institute of Standards and Technology (NIST), the of the Baldrige award, touts the outstanding: A. employee relations of the winners B. stock performance of the winners C. market share of the winners D. management of the winners E. company cafeterias of the winners
Answer: E Easy
57.
A US General ing Office study of 30 Baldrige winners found that quality: A. improved employee relations B. lowered costs C. increased customer satisfaction D. improved market share E. the survey found that all the above metrics improved
Answer: A Moderate
58.
The acronym TQEM (as described in the textbook) stands for: A. B. C. D. E.
Answer: C Hard
59.
total quality environmental management total quality engineering and management total quality employee management total quality energy management total quality entertainment management
Environmental friendliness does not include: A. waste management B. product integrity C. competitive analysis D. worker health E. government relations 63
Chapter 4: Strategic Quality Planning
Answer: E Moderate
60.
__________ uses value analysis to identify the total costs of products from a worldwide perspective. A. B. C. D. E.
Answer: C Moderate
6001.
Hoshin is _______________for a com, a course, a policy, or a plan..
B C D E Answer: C Moderate
6002.
Value-chain costing Inside-outside costing External-internal costing Force field costing Life cycle costing
A French Tagalog Japanese Korean Pidgin
Hoshin has been used in _________since the 1960s as a means of implementing policy A B C D E
the Phillipines Japan South Korea the South Pacific
Answer: E Moderate
6003.
Hoshin plans are ___________ plans for corporate objectives.
Answer: D Moderate
6004.
In the context of the textbook, the acronym ERP stands for __________
Answer: A Moderate
6005.
________________ Motors products of the early 1980s were given awards for outstanding design (e.g., the Renault Alliance). At the same time, these products were not well accepted by their customers, and the company went out of business
A B C D E
A B C D E
A B C D E
marketing financial plans technology human resources deployment
European Recovery Program Electronic Road Pricing Equity Risk Enterprise Resource Planning External Review
American British French Yugoslavian German Democratic
64
Chapter 4: Strategic Quality Planning
TRUE-FALSE QUESTIONS STRATEGY CONTENT Answer: T Easy Answer: T Moderate
61.
The two dimensions of strategic planning are content and process.
62.
W. Edwards Deming consistently stated that continuous quality improvement was a slow process that required commitment of resources and time.
Answer: F Easy
63.
Strategic planning implies planning for the short term.
Answer: T Easy
6301 .
Much of the traditional approach to quality was reactive and after the fact..
Answer: T Easy
6302.
A major study of best quality-related practices undertaken by Ernst and Young2 was critical of total quality management (TQM) programs for not providing bottom-line results..
Answer: F Moderate
6303.
Answer: T Easy
6304.
Shigeo Shingo5 stated that 15 years were required for Toyota Motor Company to achieve significant improvement and that this time could be reduced to 10 years for competitors. According to Donald Wheeler, a quality expert, when goals such as these are set, one of three things will occur: 1. People will achieve the goals and incur positive results. 2. People will distort the data. 3. People will distort the system.
LEADERSHIP FOR QUALITY Answer: T Easy
64.
Leadership is a key strategic variable for quality management.
Answer: F Moderate
65.
Leadership is the process by which a leader influences a group to move toward the attainment of subordinate goals.
Answer: F Moderate
66.
The power of expertise is derived from the power to punish a follower for not following organizational rules or guidelines.
Answer: T Moderate
67.
Referent power is derived from personal charisma or charm.
65
Chapter 4: Strategic Quality Planning
Answer: T Moderate
68.
Legitimate power is derived from the position an individual holds in an organization.
Answer: T Moderate
69.
Four important traits of effective leaders are knowledge, communication, planning, and vision.
Answer: F Easy Answer: F Easy
70.
Commitment to quality is comfortably measured in quarters.
7001.
John F. Kennedy was used as an example of reward power.
Answer: F Moderate
7002.
Leadership is the process by which a leader influences a group to move toward the attainment of contraordinate goals
Answer: T Moderate
7003.
Professors are leaders in the classroom because they have knowledge that they are sharing with the students.
OTHER QUALITY RELATED ISSUES Answer: T Easy Answer: T Moderate
71.
Quality is good ethics.
72.
The PAF paradigm translates quality costs into three broad categories, which are then subdivided into other categories.
Answer: T Moderate
73.
Prevention costs are those costs associated with preventing defects and imperfections from occurring.
Answer: F Moderate
74.
Failure costs are roughly categorized into two areas of costs: tangible failure costs in intangible failure costs.
Answer: T Moderate Answer: T Easy
75.
Internal failure costs are those associated with on-line failure
76.
External failure costs are associated with product failure after the production process.
Answer: F Moderate
77.
The Lundvall-Juran Quality Cost Model states that as expenditures in appraisal increase, quality conformance should decrease.
Answer: T Moderate
78.
Differentiation is achieved by a competitor if the consumer merely perceives the product or service is unique.
Answer: F Moderate
79.
Quality through focus may be achieved by focusing on one item that appeals to all consumers.
Answer: F Moderate
80.
An order winning criterion is simply the way for a company to place orders with suppliers.
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Chapter 4: Strategic Quality Planning
Answer: F Hard Answer: F Easy
81.
As with most things, core competencies diminish with use.
82.
The forced-choice model is useful only for companies that are seasoned strategic planners.
Answer: T Moderate
83.
Hoshin is Japanese for a com, a course, a policy, or a plan.
Answer: F Hard
84.
Kanri is the term used to describe the interactive nature of the Hoshin planning process.
Answer: T Moderate
85.
The term “catchball” refers to the interactive nature of the Hoshin planning process.
Answer: T Hard
86.
Life cycle costing uses value analysis to identify the total costs of products from a worldwide perspective.
Answer: F Easy
8601.
Quality invariably leads to better business results. .
Answer: T Moderate
8602.
Deming proposed a theoretical basis for concluding that quality will pay off..
Answer: T Moderate
8603.
Many companies implement quality incorrectly
Answer: T Moderate
8604.
The price–quality relationship becomes increasingly unclear when cultural differences in an international setting are considered.
Answer: T Moderate
8605.
The price–quality relationship becomes increasingly unclear when cultural differences in an international setting are considered.
Answer: F Moderate
8606.
Because of the possible relationship between pricing and low-cost structure, it is unlikley that quality will tend to provide a competitive advantage relative to other competitors by allowing firms with a high-quality strategy to incur lower costs they can along to the customers.
Answer: F Moderate
8607.
NIST is the , the of the Baldrige award. The acronym NIST stands for National Industrial Security Program
ESSAY QUESTIONS Answer: Easy
87.
Does quality lead to better business results? Answer: The effects of quality on business are mixed; some firms have been wildly successful with their quality efforts and others have been 67
Chapter 4: Strategic Quality Planning
unsuccessful in gaining bottom-line results. W. Edwards Deming proposed the Deming Chain which indicates that quality will pay off. The two primary reasons for mixed results are that many variables other than quality affect profitability and that many companies implement quality incorrectly. Answer: Easy
88.
What are content variables? Provide examples of the content variables that are considered in the strategic planning process? Answer: The content variables are the key considerations in the strategic plan itself. Content is often contrasted with process. Process variables are the key components of how a plan is devised. The content variables comprise the plan itself. Examples of key content variables in the context of quality planning are time, leadership, quality costs, generic strategies, order winners, and quality as a core competency.
Answer: Moderate
89.
What is the relationship between quality and ethics? Answer: As stated in the textbook, quality is not only good business, it is also good ethics. It is unethical to ship defective products knowingly to a customer. Reliable products and low defect rates reflect an ethical approach of management’s care for its customers.
Answer: Moderate
8901.
In developing its Excellence through Quality program, Ames initially benchmarked against Xerox. Is benchmarking against another company’s quality program a good idea? What are the potential hazards and benefits involved?
Answer: . By benchmarking with other firms and competitors, we learn the voice of the market. To stay ahead, a firm must know what is happening around it. This provides a logical progression from average, to market leader, to world-class firm. The cultural changes at Ames were profound: • Involvement (self-managed) groups. Typically leadership is democratically elected • Cost of quality means significant changes in the cost ing system and more sharing of information • “yield improvement teams” Pareto thinking, focusing on “low hanging fruit” change the firm’s decision making process • Management subject to the scrutiny of periodic operations and strategy reviews • Extensive training of employees means more and better critical thinking • Egalitarian philosophy changes day-to-day interaction among associates and managers
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Chapter 4: Strategic Quality Planning
Answer: Hard
90.
What is the PAF paradigm? Describe the three broad categories that comprise the PAF paradigm. Answer: The PAF paradigm translates quality costs into three broad categories, which are then subdivided into other categories. The three categories are prevention, appraisal, and failure costs (hence, the acronym PAF) which are defined below: • • •
Answer Moderate
Answer Moderate
91
92
Prevention costs are those costs associated with preventing defects and imperfections from occurring. Appraisal costs are associated with the direct costs of measuring quality. Failure costs are roughly categorized into two areas of costs: internal failure costs and external failure costs. Internal failure costs are those associated with on-line failure while external failure costs are associated with product failure after the production process.
What sort of consequences can ensue if management sets numeric goals for quality improvement? Answer: According to Donald Wheeler at the University of Tennessee, when numeric goals for quality improvement are set, one of three things will occur: 1. people will achieve the goals and incur positive results 2. people will distort the data 3. people will distort the system There are many practical examples that could be drawn from public policy, e.g., No Child Left Behind Act. This material is now included in the book so the students could be asked to give examples. Discuss the leadership of (President Bush, Senator Hillary Clinton,, etc) in of the quadrant model of the dimensions of leadership. Answer: The four quadrants include: 1. knowledge 2. communication 3. planning 4. vision To the extent that student responses are specific and knowledgeable, they would receive full points. Two students could have radically different opinions of President Bush and still get full points.
69
1.
Strategic planning has two important dimensions. These are: A. B. C. D. E.
Answer: D Easy
2.
Strategic plan __________ answers the question of what is to be contained in the strategic plan. A. B. C. D. E.
Answer: E Moderate
3.
4.
process method operation content standardization
Which of the following is not an example of a strategic content variable? A. B. C. D. E.
Answer: C Hard
analysis and synthesis implementation and control strategic and routine proactive and standardized content and process
time leadership quality costs generic strategies planning
A comprehensive study by the United States General ing Office stated that, on average, __________ were required for companies to being to see significant results from quality improvement programs. A. B. C. D. E.
six months 1 year 3.5 years 5 years 7 years
Chapter 4: Strategic Quality Planning
Answer: C Moderate
5.
Strategic planning implies planning for: A. B. C. D. E.
Answer: D Moderate
the short term the intermediate term the long term the short term in manufacturing and the long term in services the short term in services and the long term in manufacturing
5-01. A comprehensive study by the U.S. General ing Office3
stated that, on average, ____ years were required for companies to begin to see significant results from quality improvement programs.
B C D E
A 2.0 2.5 3.0 3.5 4.0
Answer: A Moderate
5-02. The plan–do–check–act cycle is associated with _____________.
Answer: D Moderate
5-03. The text book used cheating on “No Child Left Behind” exams as an
A B C D E
W. E. Deming Walter Shewhart Joseph Jurand Armand Feigenbaum Kaoru Ishakawa
example of _____________. A B C D E
synergism autocorrelation syncretism distortion of the data synthetic division
LEADERSHIP FOR QUALITY Answer: A Easy
6.
__________ is the process by which a leader influences a group to move toward the attainment of superordinate goals. A. B. C. D. E.
Answer: D Moderate
7.
Leadership Empowerment Planning Organizing Controlling
__________ goals are those goals that pertain to achieving a higher end that benefits not just the individual, but the group.
46
Chapter 4: Strategic Quality Planning
A. B. C. D. E. Answer: A Moderate
8.
Substantive Deterministic Empowerment-related Superordinate Hierarchical
Which type of power is derived from the possession of special knowledge (or the assumption that a person has special knowledge)? A. B. C. D. E.
power of expertise reward power coercive power referent power legitimate power
47
Chapter 4: Strategic Quality Planning
Answer: C Moderate
9.
What type of power is derived from the possession of special rewards that a leader can bestow upon subordinates in return for desirable action? A. B. C. D. E.
Answer: D Moderate
10.
What type of power is derived from the ability to punish followers for not following rules or guidelines? A. B. C. D. E.
Answer: B Moderate
11.
12.
13.
reward coercive legitimate the power of expertise referent
What type of power is derived from an individual’s personal charisma or charm? A. B. C. D. E.
Answer: B Moderate
power of expertise referent power legitimate power coercive power reward power
The use of __________ power tends to cause followers to rebel and try to even the power relationship? A. B. C. D. E.
Answer: A Moderate
coercive power legitimate power reward power power of expertise referent power
referent power coercive power power of expertise legitimate power reward power
A case of __________ power is the mentor who is ired by his or her protegees who want to be like the mentor. A. B. C. D. E.
reward referent legitimate coercive power of expertise
48
Chapter 4: Strategic Quality Planning
Answer: E Moderate
14.
What type of power is derived from the position an individual holds in an organization? A. B. C. D. E.
Answer: E Moderate
1401.
power of expertise coercive referent reward legitimate
Which one of the following is not a function of a quality leader B C D E
A organize plan and control communicates teaches analyze
LEADERSHIP DIMENSIONS Answer: B Moderate
15.
The __________ dimension of leadership deals with such variables as height, productivity, and intelligence. A. B. C. D. E.
Answer: E Moderate
16.
Which of the following selections is not a leadership “skill?” A. B. C. D. E.
Answer: B Moderate
17.
skills trait behavioral cognitive indigenous
knowledge communication planning vision intelligence
The leader __________ approach discusses how leaders behave to identify specific leadership styles and to study the effects of leadership style on subordinate satisfaction and performance. A. B. C. D. E.
skills behavior trait characteristic qualities
49
Chapter 4: Strategic Quality Planning
Answer: B Moderate
18.
One option firms have for lowering their number of employees is through __________, which means not hiring new employees as older employees either quit or retire. A. B. C. D. E.
disintegration attrition downsizing rightsizing erosion
Answer: D Moderate
19.
A commitment to quality by top management can be demonstrated by: A. attrition B. venues C. CRI D. funding E. slogans
Answer: C Moderate
20.
The leader skill of communication includes this task: A. decision making B. evaluation skills C. conflict management D. task management E. time management
Answer: B Hard
21.
Nothing can damage a quality improvement effort faster than: A. increased pressure from outside competition B. management’s failure to consider implementing employees’ recommended changes C. increase in the amount of slack time available D. resources dedicated to the quality improvement effort E. rapid changes in technology
Answer: A Hard
22.
Commitment to quality means that leaders provide funding, slack time, and resources for quality improvements to be successful. This commitment is appropriately measured: A. B. C. D. E.
in decades in quarters in budget-cycles annually semiannually
50
Chapter 4: Strategic Quality Planning
Answer: A Moderate
2201.
The textbook list ____ quadrants of leadership skills. B C D E
Answer: A Moderate
2202.
A 2 3 4 5 6
Nothing can damage a quality improvement effort faster than management’s failure to consider ._________________ A implementing changes that employees recommend.:
B C D E
an appropriate reward system meeting times during working hours Pareto analysis semi-annual reviews
Answer: A Moderate
2203.
Acceptance of diversity is in ____________
Answer: B Moderate
2204.
Conflict management is in ____________
Answer: C Moderate
2204.
Decision making is in ____________
Answer: D Moderate
2205.
Identifying opportunities is in ____________
A B C D E
A B C D E
A B C D E
A B C D
Quadrant 1 : knowledge Quadrant 2: communication Quadrant 3: planning Quadrant 4: vision none of the above
Quadrant 1 : knowledge Quadrant 2: communication Quadrant 3: planning Quadrant 4: vision none of the above
Quadrant 1 : knowledge Quadrant 2: communication Quadrant 3: planning Quadrant 4: vision none of the above
Quadrant 1 : Quadrant 2: Quadrant 3: Quadrant 4:
knowledge communication planning vision
51
Chapter 4: Strategic Quality Planning E none of the above
52
Chapter 4: Strategic Quality Planning
QUALITY AND ETHICS Answer: E Moderate
23.
An unethical approach by management would be reflected by: A. reliable products B. low defect rates C. quality D. valuing employees E. none of the above are unethical
Answer: C Moderate
24.
It has been said that the entire US economy is based on one simple principle: A. Just do it B. The Pareto principle C. When I give you a check, there are funds sufficient in my to cover it D. He who has the gold, makes the rules E. None of the above are correct
Answer: C Moderate
2401 .
The well-known mission statement of a New Bedford, Massachusetts, shipbuilder: “We build good ships. At a profit if we can, at a loss if we must. But, we build good ships.” is given in the textbook as an example
of __________ A. B. C. D. E. Answer: C Moderate
2402 .
the Pareto Principle the importance of financial planning ethics the Golden Rule, that it, He who has the gold, makes the rules the Decalogue
ing a program of continuous improvement requires the development of an appropriate A. B. C. D. E.
bottom line entrepreneurship program culture benchmarking program commission sales program
QUALITY AS STRATEGY Answer: A Moderate
25.
The three generic strategies are: A. B. C. D. E.
cost, differentiation, and focus manufacturing prowess, service quality, and durability cost, quality, and service differentiation, specialization, and customization focus, breadth, and low-cost
53
Chapter 4: Strategic Quality Planning
Answer: E Moderate
26.
There are two broad categories of quality costs, namely: A. B. C. D.
production costs and service costs design costs and control costs inspection costs and manufacturing costs those costs due to quality inspection and those costs due to quality design E. those costs due to poor quality and costs associated with improving quality Answer: E Moderate
2601.
Life cycle costs are: A costs associated with employee wellness programs B costs associated with employee stage in life C employee healthcare costs D costs associated with the impact of pollution on employees E the summation of costs over the life of a product
Answer: B Moderate
2602.
In the context of quality, the acronym PAF stands for __________ A B C D E
Answer: D Moderate
2603.
platelet activating factor prevention, appraisal, failure performance assessment framework Project Air Force postal address file
Which one of the following is considered a prevention cost? A B C D E
training product quality audits set up for quality tests laboratory acceptance testing on site performance tests.
54
Chapter 4: Strategic Quality Planning
PAF PARADIGM AND OTHER QUALITY-RELATED ISSUES Answer: C Moderate
27.
The PAF paradigm translates quality costs into three broad categories, which are then subdivided into other categories. The three categories are: A. B. C. D. E.
Answer: C Moderate
28.
__________ costs are those costs associated with preventing defects and imperfections from occurring. A. B. C. D. E.
Answer: A Moderate
29.
30.
Process Procedure Prevention Indigenous Spurious
Costs such as training, quality planning, process engineering and other costs associated with quality beforehand are referred to as: A. B. C. D. E.
Answer: B Moderate
price, appraisal, and facility costs process, attitude, and failure costs prevention, appraisal, and failure costs procedures, attention, and failure costs process, appraisal, and facility costs
prevention costs process costs procedure costs methods costs indigenous costs
__________ costs are associated with the direct costs of measuring quality. A. B. C. D. E.
Methods Appraisal Indigenous Prevention Process
55
Chapter 4: Strategic Quality Planning
Answer: D Moderate
31.
Lab testing, inspection, test equipment and materials, losses due to destructive tests, and costs associated with assessment for ISO 9000 or other awards are examples of: A. B. C. D. E.
Answer: D Moderate
32.
__________ failure costs are those associated with on-line failure. A. B. C. D. E.
Answer: C Moderate
33.
34.
Indigenous Domestic External Internal Spurious
Failure after the customer takes possession of the product results in a(n) __________ failure cost. A. B. C. D. E.
Answer: D Hard
methods costs deterrence costs prevention costs appraisal costs process costs
spurious indigenous external internal domestic
The Lundvall-Juran quality cost model is a model that states that: A. as quality increases, customer satisfaction increases B. as expenditures in inspection and control activities increase, quality conformance should increase C. as design and manufacturing costs increase, quality increases D. as expenditures in prevention and appraisal activities increase, quality conformance should increase E. as inspection costs increase, quality decreases
Answer: E Moderate
35.
If a product is marketed to a particular region, then the generic strategy in use is: A. quality B. cost C. deliverability D. flexibility E. focus
56
Chapter 4: Strategic Quality Planning
Answer: D Moderate
36.
Which of the following is not an order winning criterion according to the Hill model? price quality delivery synthesis color range
Answer: B Hard
37.
Using the planning framework developed by Terry Hill, a firm may first choose __________ as a corporate objective. A. quality B. growth C. function D. product segments E. design leadership
Answer: A Moderate
38.
Prahalad and Hamel have identified the strategic concept of: A. B. C. D. E.
Answer: B Hard
39.
core competence competitive advantage quality strategy quality control employee empowerment
Using the Prahalad and Hamel definition of competency, quality: A. is a core competency for manufacturing firms but is not a core competency for service firms B. is probably not a core competency C. is a core competency for service firms but is not a core competency for manufacturing firms D. is a core competency for international firms but is not a core competency for strictly domestic firms E. is definitely a core competency
Answer: A Moderate
3901.
Using the law of _________________, quality costs can be modeled to show the tradeoffs between these costs.
B C D E
A diminishing marginal returns. regression toward the mean Occam’s Razor law of attraction law of accelerating returns.
57
Chapter 4: Strategic Quality Planning
Answer: A Moderate
3901.
Using the law of diminishing marginal returns, quality costs can be modeled to show the tradeoffs between these costs. This tradeoff model, called the _____________ model A B C D E
Answer: E Moderate
3902.
Using the law of diminishing marginal returns, quality costs can be modeled to show the tradeoffs between these costs. This tradeoff model, called the _____________ model A B C D E
Answer: D Moderate
3903.
3904.
3905.
iPod . Harley-Davidson motorcycle Rolex watch generic MP3 player Neimann-Marcus item
In the context of quality management, the acronym OWC stands for _____ A B C D E
Answer: A Moderate
Kendall-Stuart . Harley-Davidson Moseley-Braun Fawcett-Majors Lundvall-Juran
Which of the following is not typically considered a differentiated prodoct A B C D E
Answer: C Moderate
Kendall-Stuart . Joyner-Kersee Moseley-Braun Fawcett-Majors Lundvall-Juran
obstacle warning cue Office of Workers’ Compensation Order Winning Criterion Owner Will Carry Operational Watch Commander
The key to the Hill model for strategic marketing planning is reaching consensus on the __________ A B C D E
OWC LSD DOS SWF CAD
QUALITY STRATEGY PROCESS
58
Chapter 4: Strategic Quality Planning
Answer: A Easy
40.
__________ refers to the variables, definitions, components, and concepts that are included in the strategy. A. B. C. D. E.
Content Process Capabilities Paradigm Procedure
Answer: A Moderate
41.
In the Forced Choice model, the organization’s position is articulated by examining: major future programs major technological forces key government issues key regulatory issues broad economic assumptions
Answer: B Moderate
42.
In the Forced Choice model, the environmental assessment is completed by examining: forecast of operational needs explicit strategies of competitors statement of mission interrelated set of financial and nonfinancial objectives major future programs
Answer: C Hard
43.
Which of the following statements in not true regarding the forced choice model? A. it is used simply for explanation purposes B. it is particularly useful for companies that are relatively inexperienced in strategic planning C. it is complicated when compared with other strategic planning models D. it is generic E. it is used by firms that are new to strategic planning
Answer: D Hard
4301.
The forced-choice model is particularly useful for companies that are relatively __________________
A experienced in strategic planning B sophisticated in their use of information technology (IT) C unsophisticated in their use of information technology (IT) D inexperienced in strategic planning
E experienced s of Hoshin planning DEPLOYING QUALITY (HOSHIN KANRI)
59
Chapter 4: Strategic Quality Planning
Answer: E Moderate
44.
Hoshin is Japanese for: A. an agreement, a meeting-of-the-minds, a mutually acceptable proposal, or a mutually acceptable plan B. work, labor, toil, or effort C. quality, goodness, soundness, or feature D. a directive, an order, a request, or a plea E. a com, a course, a policy, or a plan
Answer: D Hard
45.
Kanri refers to: A. B. C. D. E.
Answer: A Hard
46.
__________ is the term used to describe the interactive nature of the Hoshin planning process. A. B. C. D. E.
Answer: E Hard
47.
48.
Catchball Kanri Taguchi Statistical process control Benchmarking
__________ involves reporting from teams and from management. A. B. C. D. E.
Answer: A Hard
quality control employee empowerment worker control management control quality conformance
Hoshin Statistical process control Kanri Taguchi Catchball
Which two-step sequence is out of order for a typical Hoshin planning process? A. senior management develops 1-year Hoshin goals – development of 3-5 years Hoshin B. product management develops 1-year Hoshin goals – senior management action plans C. product management develops 1-year Hoshin goals – product management action plans D. product management action plans – review by senior management E. senior management action plans – review by CEO 60
Chapter 4: Strategic Quality Planning
Answer: C Moderate
49.
According to the textbook, results regarding the effects of quality on business results are: A. B. C. D. E.
negative positive mixed positive for manufacturing firms and negative for service firms positive for service firms and negative for manufacturing firms
61
Chapter 4: Strategic Quality Planning
Answer: D Hard
50.
There are two primary reasons that the results regarding the effects of quality on business results are mixed. The first reason is that there are many variables affecting profitability besides quality. The second reason is that: A. B. C. D. E.
Answer: A Hard
51.
quality is unimportant in the minds of some customers quality is difficult to measure business results are difficult to measure many companies implement quality incorrectly some firms spend more on quality than they recoup in increased revenues
There are two primary reasons that the results regarding the effects of quality on business results are mixed. The first is that many companies implement quality incorrectly. The second is that: A. B. C. D. E.
there are many variables affecting profitability besides quality quality is difficult to measure business results are difficult to measure companies control quality poorly some firms spend more on quality than they recoup in increase revenues
Answer: B Moderate
52.
It is expected that if the trend towards high-quality, low-priced goods continues, then the relationship between price and quality will: A. Increase B. Decrease C. Remain constant D. Reverse E. Amplify
Answer: B Moderate
53.
Dumping occurs when: A. producers sell products in a foreign country below the price they sell the same products at home B. producers sell products at below cost to improve market share and to kill competition C. producers sell low quality products D. producers wield monopolistic power to increase market share E. producers sell products at home below the price they sell the same products overseas
62
Chapter 4: Strategic Quality Planning
Answer: E Moderate
54.
According to your textbook, quality will tend to provide a competitive advantage relative to other competitors by allowing forms with a high quality strategy to: by traditional channels of distribution engage in non-traditional marketing methods produce new designs more slowly than competitors produce new designs more rapidly than competitors incur lower costs they can along to consumers
Answer: C Easy
55.
The elimination of waste results in: lower quality higher price higher productivity higher cost none of these are true
Answer: B Hard
56.
Each year, the National Institute of Standards and Technology (NIST), the of the Baldrige award, touts the outstanding: A. employee relations of the winners B. stock performance of the winners C. market share of the winners D. management of the winners E. company cafeterias of the winners
Answer: E Easy
57.
A US General ing Office study of 30 Baldrige winners found that quality: A. improved employee relations B. lowered costs C. increased customer satisfaction D. improved market share E. the survey found that all the above metrics improved
Answer: A Moderate
58.
The acronym TQEM (as described in the textbook) stands for: A. B. C. D. E.
Answer: C Hard
59.
total quality environmental management total quality engineering and management total quality employee management total quality energy management total quality entertainment management
Environmental friendliness does not include: A. waste management B. product integrity C. competitive analysis D. worker health E. government relations 63
Chapter 4: Strategic Quality Planning
Answer: E Moderate
60.
__________ uses value analysis to identify the total costs of products from a worldwide perspective. A. B. C. D. E.
Answer: C Moderate
6001.
Hoshin is _______________for a com, a course, a policy, or a plan..
B C D E Answer: C Moderate
6002.
Value-chain costing Inside-outside costing External-internal costing Force field costing Life cycle costing
A French Tagalog Japanese Korean Pidgin
Hoshin has been used in _________since the 1960s as a means of implementing policy A B C D E
the Phillipines Japan South Korea the South Pacific
Answer: E Moderate
6003.
Hoshin plans are ___________ plans for corporate objectives.
Answer: D Moderate
6004.
In the context of the textbook, the acronym ERP stands for __________
Answer: A Moderate
6005.
________________ Motors products of the early 1980s were given awards for outstanding design (e.g., the Renault Alliance). At the same time, these products were not well accepted by their customers, and the company went out of business
A B C D E
A B C D E
A B C D E
marketing financial plans technology human resources deployment
European Recovery Program Electronic Road Pricing Equity Risk Enterprise Resource Planning External Review
American British French Yugoslavian German Democratic
64
Chapter 4: Strategic Quality Planning
TRUE-FALSE QUESTIONS STRATEGY CONTENT Answer: T Easy Answer: T Moderate
61.
The two dimensions of strategic planning are content and process.
62.
W. Edwards Deming consistently stated that continuous quality improvement was a slow process that required commitment of resources and time.
Answer: F Easy
63.
Strategic planning implies planning for the short term.
Answer: T Easy
6301 .
Much of the traditional approach to quality was reactive and after the fact..
Answer: T Easy
6302.
A major study of best quality-related practices undertaken by Ernst and Young2 was critical of total quality management (TQM) programs for not providing bottom-line results..
Answer: F Moderate
6303.
Answer: T Easy
6304.
Shigeo Shingo5 stated that 15 years were required for Toyota Motor Company to achieve significant improvement and that this time could be reduced to 10 years for competitors. According to Donald Wheeler, a quality expert, when goals such as these are set, one of three things will occur: 1. People will achieve the goals and incur positive results. 2. People will distort the data. 3. People will distort the system.
LEADERSHIP FOR QUALITY Answer: T Easy
64.
Leadership is a key strategic variable for quality management.
Answer: F Moderate
65.
Leadership is the process by which a leader influences a group to move toward the attainment of subordinate goals.
Answer: F Moderate
66.
The power of expertise is derived from the power to punish a follower for not following organizational rules or guidelines.
Answer: T Moderate
67.
Referent power is derived from personal charisma or charm.
65
Chapter 4: Strategic Quality Planning
Answer: T Moderate
68.
Legitimate power is derived from the position an individual holds in an organization.
Answer: T Moderate
69.
Four important traits of effective leaders are knowledge, communication, planning, and vision.
Answer: F Easy Answer: F Easy
70.
Commitment to quality is comfortably measured in quarters.
7001.
John F. Kennedy was used as an example of reward power.
Answer: F Moderate
7002.
Leadership is the process by which a leader influences a group to move toward the attainment of contraordinate goals
Answer: T Moderate
7003.
Professors are leaders in the classroom because they have knowledge that they are sharing with the students.
OTHER QUALITY RELATED ISSUES Answer: T Easy Answer: T Moderate
71.
Quality is good ethics.
72.
The PAF paradigm translates quality costs into three broad categories, which are then subdivided into other categories.
Answer: T Moderate
73.
Prevention costs are those costs associated with preventing defects and imperfections from occurring.
Answer: F Moderate
74.
Failure costs are roughly categorized into two areas of costs: tangible failure costs in intangible failure costs.
Answer: T Moderate Answer: T Easy
75.
Internal failure costs are those associated with on-line failure
76.
External failure costs are associated with product failure after the production process.
Answer: F Moderate
77.
The Lundvall-Juran Quality Cost Model states that as expenditures in appraisal increase, quality conformance should decrease.
Answer: T Moderate
78.
Differentiation is achieved by a competitor if the consumer merely perceives the product or service is unique.
Answer: F Moderate
79.
Quality through focus may be achieved by focusing on one item that appeals to all consumers.
Answer: F Moderate
80.
An order winning criterion is simply the way for a company to place orders with suppliers.
66
Chapter 4: Strategic Quality Planning
Answer: F Hard Answer: F Easy
81.
As with most things, core competencies diminish with use.
82.
The forced-choice model is useful only for companies that are seasoned strategic planners.
Answer: T Moderate
83.
Hoshin is Japanese for a com, a course, a policy, or a plan.
Answer: F Hard
84.
Kanri is the term used to describe the interactive nature of the Hoshin planning process.
Answer: T Moderate
85.
The term “catchball” refers to the interactive nature of the Hoshin planning process.
Answer: T Hard
86.
Life cycle costing uses value analysis to identify the total costs of products from a worldwide perspective.
Answer: F Easy
8601.
Quality invariably leads to better business results. .
Answer: T Moderate
8602.
Deming proposed a theoretical basis for concluding that quality will pay off..
Answer: T Moderate
8603.
Many companies implement quality incorrectly
Answer: T Moderate
8604.
The price–quality relationship becomes increasingly unclear when cultural differences in an international setting are considered.
Answer: T Moderate
8605.
The price–quality relationship becomes increasingly unclear when cultural differences in an international setting are considered.
Answer: F Moderate
8606.
Because of the possible relationship between pricing and low-cost structure, it is unlikley that quality will tend to provide a competitive advantage relative to other competitors by allowing firms with a high-quality strategy to incur lower costs they can along to the customers.
Answer: F Moderate
8607.
NIST is the , the of the Baldrige award. The acronym NIST stands for National Industrial Security Program
ESSAY QUESTIONS Answer: Easy
87.
Does quality lead to better business results? Answer: The effects of quality on business are mixed; some firms have been wildly successful with their quality efforts and others have been 67
Chapter 4: Strategic Quality Planning
unsuccessful in gaining bottom-line results. W. Edwards Deming proposed the Deming Chain which indicates that quality will pay off. The two primary reasons for mixed results are that many variables other than quality affect profitability and that many companies implement quality incorrectly. Answer: Easy
88.
What are content variables? Provide examples of the content variables that are considered in the strategic planning process? Answer: The content variables are the key considerations in the strategic plan itself. Content is often contrasted with process. Process variables are the key components of how a plan is devised. The content variables comprise the plan itself. Examples of key content variables in the context of quality planning are time, leadership, quality costs, generic strategies, order winners, and quality as a core competency.
Answer: Moderate
89.
What is the relationship between quality and ethics? Answer: As stated in the textbook, quality is not only good business, it is also good ethics. It is unethical to ship defective products knowingly to a customer. Reliable products and low defect rates reflect an ethical approach of management’s care for its customers.
Answer: Moderate
8901.
In developing its Excellence through Quality program, Ames initially benchmarked against Xerox. Is benchmarking against another company’s quality program a good idea? What are the potential hazards and benefits involved?
Answer: . By benchmarking with other firms and competitors, we learn the voice of the market. To stay ahead, a firm must know what is happening around it. This provides a logical progression from average, to market leader, to world-class firm. The cultural changes at Ames were profound: • Involvement (self-managed) groups. Typically leadership is democratically elected • Cost of quality means significant changes in the cost ing system and more sharing of information • “yield improvement teams” Pareto thinking, focusing on “low hanging fruit” change the firm’s decision making process • Management subject to the scrutiny of periodic operations and strategy reviews • Extensive training of employees means more and better critical thinking • Egalitarian philosophy changes day-to-day interaction among associates and managers
68
Chapter 4: Strategic Quality Planning
Answer: Hard
90.
What is the PAF paradigm? Describe the three broad categories that comprise the PAF paradigm. Answer: The PAF paradigm translates quality costs into three broad categories, which are then subdivided into other categories. The three categories are prevention, appraisal, and failure costs (hence, the acronym PAF) which are defined below: • • •
Answer Moderate
Answer Moderate
91
92
Prevention costs are those costs associated with preventing defects and imperfections from occurring. Appraisal costs are associated with the direct costs of measuring quality. Failure costs are roughly categorized into two areas of costs: internal failure costs and external failure costs. Internal failure costs are those associated with on-line failure while external failure costs are associated with product failure after the production process.
What sort of consequences can ensue if management sets numeric goals for quality improvement? Answer: According to Donald Wheeler at the University of Tennessee, when numeric goals for quality improvement are set, one of three things will occur: 1. people will achieve the goals and incur positive results 2. people will distort the data 3. people will distort the system There are many practical examples that could be drawn from public policy, e.g., No Child Left Behind Act. This material is now included in the book so the students could be asked to give examples. Discuss the leadership of (President Bush, Senator Hillary Clinton,, etc) in of the quadrant model of the dimensions of leadership. Answer: The four quadrants include: 1. knowledge 2. communication 3. planning 4. vision To the extent that student responses are specific and knowledgeable, they would receive full points. Two students could have radically different opinions of President Bush and still get full points.
69
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