Ch 12

Performance reviews in an organization are usually conducted on a daily or weekly basis for long-term control decisions, and periodically throughout the year for short-term decisions and improvement. a. True b. False

False,

Organizations that share quality, customer satisfaction, and financial performance results with its employees and customers often exhibit poor performance in comparison with organizations which do not share such information. a. True b. False

False, better not poor

A good balanced scorecard contains only leading measures and indicators. a. True b. False

False, both not only, leading and lagging

A balanced scorecard greatly helps in identifying the real drivers of customer satisfaction. a. True b. False

False, interlinking not balanced scorecard

Data mining is the most effective method of establishing cause and effect relationship among variables. a. True b. False

False, interlinking not data mining

Google is one of the most prominent vendors for ERP software. a. True b. False

False, people soft not google

Compared to money, labor, and capital equipment, knowledge is always the easiest to manage. a. True b. False

False, probably not always and most difficult not easiest

Physical and financial assets have become more important than knowledge assets in many organizations. a. True b. False

False, switch knowledge and financial

The purpose of the balanced scorecard is "to translate strategy into measures that uniquely communicate your vision to the organization." a. True b. False

True

The quality of information can be improved by capturing data multiple times and as away from the origin of the data as possible a. True b. False

False

Which of the following perspectives of the balanced scorecard measures the ultimate results that the business provides to its shareholders? a. Financial perspective b. Internal perspective c. Innovation perspective d. Customer perspective

Financial perspective

A knowledge-enabled culture is created when an organization employs a system of aligned human resource policies, tactics, processes, and practices that ensure knowledge is created, captured, used, and reused to achieve superior organizational results as a sustainable advantage. a. True b. False

True

A useful approach to ensuring data reliability is for internal cross-functional teams or external auditors to conduct periodic audits of the processes used to collect the data. a. True b. False

True

Data accessibility empowers employees and encourages their participation in quality improvement efforts. a. True b. False

True

Interlinking is the term that describes the quantitative modeling of cause-and-effect relationships between performance measures, such as the customer satisfaction and product quality or employee performance. a. True b. False

True

Measurement reliability in manufacturing demands careful attention to metrology, the science of measurement. a. True b. False

True

The American Productivity and Quality Center (APQC) noted that executives have long felt frustrated by their inability to identify or transfer outstanding practices from one location or function to another. a. True b. False

True

The transfer of knowledge within organizations and the identification and sharing of best practices often set high-performing organizations apart from the rest. a. True b. False

True

_____ refers to an examination of facts and data to provide a basis for effective decisions. a. Analysis b. Data warehousing c. Interlinking d. Clustering

a. Analysis

Data _____ is the process of searching large databases to find hidden patterns in data. a. mining b. interlinking c. planning d. benchmarking

a. mining

The process in which locations, divisions and functions in an organizational structure focus on maximizing their own accomplishments and rewards was called _____ by Deming. a. suboptimization b. return on quality c. Interlinking d. lean production

a. suboptimization

Which of the following is most likely to be used to obtain comparative data? a. Interlinking approach b. Cluster analysis c. Benchmarking approach d. Cause-and-effect approach

c. Benchmarking approach

_____ data refer to industry averages, competitor performance, world-class benchmarks, or performance measures of other organizations with similar product offerings. a. Cross-functional b. Comparitive c. Reviewed d. Interlinked

b. Comparitive

_____ assets refer to the accumulated intellectual resources that an organization possesses, including information, ideas, learning, understanding, memory, insights, cognitive and technical skills, and capabilities. a. Personal b. Knowledge c. Strategical d. Deployment

b. Knowledge

Which of the following measures of the Baldrige criteria of performance measurement includes internal quality measurements, defect levels, service errors, and response times? a. Governance outcomes b. Product outcomes c. Market outcomes d. Financial outcomes

b. Product outcomes

To achieve a high level of performance excellence, an organization requires a much broader set of performance measures that are aligned to an organization's strategy; this became known as the: a. quality trilogy. b. balanced scorecard c. quincunx. d. Taguchi loss function.

b. balanced scorecard

In the context of managing information resources, the quality of information can be improved by: a. avoiding electronic data capture. b. placing accountability on the creators of data and information. c. using multiple databases whenever feasible. d. using as many intermediaries as possible to handle data.

b. placing accountability on the creators of data and information.

_____ of product and service performance and customer indicators is a critical management tool for defining and focusing on key quality and customer requirements, identifying product and service differentiators in the marketplace, and determining cause-effect relationships between product and service attributes and measures of customer satisfaction and loyalty. a. Regression analysis b. Benchmarking c. Correlation analysis d. Quincunx experimentation

c. Correlation analysis

_____ knowledge includes information stored in documents or other forms of media such as databases, policies and procedures, and technical drawings. a. Tacit b. Allusive c. Explicit d. Indirect

c. Explicit

Which of the following perspectives of the balanced scorecard includes intellectual assets, employee satisfaction, market innovation, and skills development? a. Financial and internal perspective b. Internal perspective c. Innovation and learning perspective d. Customer perspective

c. Innovation and learning perspective

_____ is the term that describes the quantitative modeling of cause-and-effect relationships between performance measures, such as the customer satisfaction and product quality or employee performance. a. Programming b. Mining c. Interlinking d. Enterprise resource planning

c. Interlinking

Which of the following perspectives of the balanced scorecard includes such measures as quality levels, productivity, cycle time, and cost? a. Innovation perspective b. Customer perspective c. Internal perspective d. Financial perspective

c. Internal perspective

_____ involves the process of identifying, capturing, organizing, and using knowledge assets to create and sustain competitive advantage. a. Knowledge mining b. Suboptimization c. Knowledge management d. Lean production

c. Knowledge management

Which of the following is true about the practical guidelines suggested by Mark Graham Brown for designing a performance measurement system? a. Concentrate on measuring a large number of trivial variables. b. Avoid changing and adjusting measures even if the environment and strategy changes. c. Measures should be based around the needs of customers, shareholders, and other key stakeholders. d. Measures should start at the bottom and flow up to all levels of top management in the organization.

c. Measures should be based around the needs of customers, shareholders, and other key stakeholders.

Which of the following organizations is one of the most prominent vendors of ERP software? a. STMocroelectronics b. Convergys c. Oracle d. Analog devices

c. Oracle

_____ involves the discovery, learning, creation, and reuse of knowledge that eventually becomes intellectual capital—knowledge that can be converted into value and profits. a. Knowledge costing b. Knowledge internationalization c. Rapid knowledge transfer d. Knowledge interlinking

c. Rapid knowledge transfer

_____ knowledge is information that is formed around intangible factors resulting from an organization's or individual's experience, and is content-specific. a. Lucid b. Definitive c. Tacit d. Explicit

c. Tacit

The ability to identify and transfer best practices within the organization is sometimes called _____. a. enterprise resource planning b. interlinking c. internal benchmarking d. data mining

c. internal benchmarking

_____ systems allow organizations to share databases in a networking environment and store and process key data in a unique database, and distribute it to a large group of users. a. Juran's quality trilogy b. Quincunx experimental c. The balanced scorecard d. Enterprise resource planning

d. Enterprise resource planning

Which of the following analytical approach or technology is most likely to be used for data mining? a. Histogram b. Pareto diagram c. Quincunx experiment d. Fuzzy logic

d. Fuzzy logic