CH 16

The goal of this technique is to improve performance by eliminating barriers, waste, and unnecessary steps

reduced cycle time

Threadless receives immediate customer feedback on specific promotions through online orders. What type of control does this represent?

concurrent

The oversupply of oil in world markets and the increase in interest rates primarily negatively impacted which perspective of U.S. shale's balanced scorecard?

financial

Threadless sets an annual budget for the next year after the end of the current year's holiday season. The process includes reviewing the current budget and setting goals for the next year. The company then supplements the annual budget with forecasts. What type of budgeting does this resemble?

incremental

A company that works to create a culture that encourages rank-and-file employees to make suggestions, question the status quo, and also measure employee growth, is developing which perspective of the balanced scorecard?

innovation and learning perspective

U.S. shale companies' use of technology such as AI, to make drilling more efficient, primarily supports the ______ perspective of the balanced scorecard.

internal business

A budget is a formal financial

projection.

The case mentions that Saudi Arabia, for instance, is able to produce conventional oil for under $10 a barrel, making it more resilient during price slumps. With this in mind, the primary reason why U.S. shale companies need to utilize effective control measures is to

reduce costs.

A Deloitte Insights survey found that companies are using AI to

reduce errors and defects, increase productivity, and enhance supply chain management.

Companies that use this technique are focused on improving quality and reducing waste to the point that errors nearly vanish.

six sigma and lean

Assume that a U.S. shale company partners with an oil refinery to take random samples of oil that's been produced in order to confirm adequate quality and proper viscosity. This would be an example of utilizing which TQM tool or technique?

statistical process control

Periodic random samples during production ensure that quality is maintained within a standard acceptable range

statistical process control

Managers use ________ to visualize how strategic goals relate to one another and to overall firm success.

strategic maps

Threadless switched to 100 percent on-demand printing, allowing vendors to print one shirt at a time (instead of bulk) and to send the shirt directly to customers. Threadless never has to actually touch the product, reducing its fixed costs. This is an effective way to manage the company's

supply chain.

Assume that Jason Macatangay, the company's VP of Finance and Treasurer, changes the company to 100 percent on-demand printing, completely overhauling its supply chain so that performance will meet standards. What step in the control process would this represent?

take corrective action

The two core principles of TQM are

uniform focus on delivering customer value, and continuous improvement of work processes

Control helps an organization

detect opportunities

The PDCA cycle is part of

Deming management

Amaia has been very careful to work with her team to finalize next year's goals. She has taken the process seriously and now wants to make sure that others do their part. Amaia is insisting that all employees follow instructions fully and completely. Amaia seems to be exhibiting the

controlling function because she is concerned with seeing that the right things happen at the right time.

Identifies standards for corporate environmental performance that can be audited by independent quality control experts.

ISO 9000 and ISO 14000

________ focuses on problem solving and performance improvement, or speed with excellence, of a well-defined project.

Lean Six Sigma

Subcontracting project work to freelancers in the gig economy saves companies many employee-related expenses.

Outsourcing

________ is the last step in the control process.

Take corrective action if necessary

Some U.S. shale companies fit their machines with sensors that collect performance data in real time. What type of control does this represent?

concurrent