MGMT201

Compensation should be tied to what?

Compensation should only be tied to balanced scorecard measures after the organization has been successfully managed with it for some time

Operational excellence is an example of a company what?

Of company strategy

The "triple-bottom line" refers to what?

People, Planet, and Profit

A balanced score card does what?

Presents a theory of how a company can take action to obtain its desired outcomes

The only value-added component of throughput time is what?

Process Time

To analyze a company's current quality management efforts, what kind of report should be prepared?

Quality cost report

Which of the following is NOT a dimension of internal business process measures? -Lean resource management -Agility -Cost -Skills development

Skills Development

When it comes to quality of conformance, an economy car _______ quality of conformance as a luxury car

may have the same

A MCE of less than 1 indicates what?

non-value added time is present

To reduce the cost of quality organizations should increase what?

prevention and appraisal costs to reduce internal and external failure costs

Preventing, detecting, and dealing with defects causes the incurrence of what costs?

quality costs

Products that meet or exceed their expectations and are free from defects that mar or degrade their performance are said to have a high what?

quality of conformance

Which of the following statements are true regarding corporate social responsibility and the balanced scorecard? -Average compensation for female employees ÷ average compensation for male employees is a learning and growth measure. -While these measures are important, they should not be tied to managers evaluations and rewards. -A company should always connect its measures using if-then hypothesis statements.

-Average compensation for female employees ÷ average compensation for male employees is a learning and growth measure. -A company should always connect its measures using if-then hypothesis statements.

Which of the following statements are true? -It is important that balanced scorecard measures are not easily manipulated. -Using balanced scorecard performance measures to reward employees can result in sub-optimal results. -In order for employees to understand the importance of the balanced scorecard, incentive compensation should immediately be tied to it.

-It is important that balanced scorecard measures are not easily manipulated. -Using balanced scorecard performance measures to reward employees can result in sub-optimal results.

Which of the following statements are true? -The impact of customer ill will is generally not found on quality control reports. -Measuring and reporting quality costs does not solve quality problems. -Quality cost information helps managers identify the relative importance of quality problems. -Decreases in quality costs generally occur as soon as improvement programs are implemented.

-The impact of customer ill will is generally not found on quality control reports. -Measuring and reporting quality costs does not solve quality problems. -Quality cost information helps managers identify the relative importance of quality problems.

Measures related to recruiting and retention are included in what section of the balanced scorecard?

Learning and growth

A company's strategy has an important influence on the categories it will include on its balanced scorecard. T/F

False

True or false: Corporate social responsibility focuses on legal compliance only.

False

Measures related to trend and market performance are included in what section of the balanced scorecard?

Financial

A leading organization in the field of social and environmental performance measurement is the what?

Global Reporting Initiative

Measures related to innovation and time are included in what section of the balanced scorecard?

Internal business process

The Global Reporting Initiative do which of the following? -focuses on environmental and social performance indicators only -has created a widely adopted sustainability reporting framework -standards require the CEO to describe failures related to corporate social performance -standards require companies to provide disclosures related to stakeholder engagement

It has created a widely adopted sustainability reporting framework and its standards require companies to provide disclosures related to stakeholder engagement.

The balanced scorecard framework does what two things?

It holds organizations accountable for translating improvements in nonfinancial performance to financial results and considers market performance as a financial measure

A manufacturing cycle efficiency of 40% means what?

It means that value-added activities are being performed 40% of the time and that the typical order is being worked on 40% of the time

Which of the following is NOT a dimension of learning and growth measures? -Compensation and advancement -Lean resource management -Wellness/Safety -Skills development

Lean resource management

Which of the following is NOT a dimensiterm-21on of learning and growth measures? -Wellness/Safety -Compensation and advancement -Skills development -Lean resource management

Lean resource management

Define Corporate social responsibility (CSR)

The CSR is a concept whereby organizations consider the needs of all stakeholders when making decisions. CSR extends beyond legal compliance to include voluntary actions that satisfy stakeholder expectations.

Define delivery cycle time

The elapsed time from when a customer order is received until the finished goods are shipped

Social and environmental performance measures may be what to a balanced scorecard?

They may be incorporated into an existing

An advantage of using a(n) what is that it continually tests the theories underlying management strategies?

This is the advantage of using a balanced scorecard

The period from which a product begins production as raw materials and ends as a finished product is known as what?

Throughput or manufacturing cycle time

Because companies target different customers with different kinds of products and services, performance measures should be tailored to the specific what of a company?

To the specific strategy of a company

Improvements in learning and growth and internal business process measures should ultimately have a positive influence on customer measures. T/F

True

Strategy has an important influence on the measures included in each category, not the categories themselves. T/F

True

True or false: Reducing wait time often enables companies to increase customer satisfaction and profits

True

When considering overall equipment effectiveness, avoiding machine breakdowns and minimizing average setup times is the key to increasing what?

Utilization rate

An integrated set of performance measures that are derived from the company's strategy is...

a balanced scorecard

Costs incurred to identify defective products before they are shipped to customers are ______ costs.

appraisal

An integrated set of performance measures that are derived from the company's strategy is a(n)

balanced scorecard

A series of steps that are followed in order to carry out some task in an organization is called a(n)

business process

Measures related to satisfaction, lifetime value and loyalty are included in what section of the balanced scorecard?

customer

The time between when an order is placed and when it is delivered is known as the what?

delivery cycle time

Which of the following is not a category of quality costs? -Appraisal costs -Prevention costs -Internal Failure costs -Direct costs

direct costs

Measures related to trend and market performance are included in what section of the balanced scorecard?

financial

Time spent ensuring that the product is not defective is referred to as what?

inspection time

Assembling products and handling baggage are examples of what kind of processes?

internal business

What the company does to appease the customer falls into what group on the balanced scorecard?

internal business process

Which of the following performance measures are part of the balanced scorecard? -vendor -learning and growth -financial -customer

learning and growth, financial, and customer

What performance measures make up a balanced scorecard?

learning and growth, financial, customer, and internal business process

Quality cost information reports do what?

show managers if quality control costs are poorly distributed, help identify the financial cost of defects, and give managers an idea of where to focus quality control efforts

Customer value propositions are the essence of...

strategy

Corporate social responsibility performance reports are also called what?

sustainability reports

Define queue time

the amount of time a product spends waiting to be worked on, to be moved, to be inspected, or to be shipped

Define Inspection time

the amount of time ensuring that the product is not defective

Define Process time

the amount of time that work is actually done on the product

If a balanced scorecard is well constructed, then ...

the performance measures should link together in a cause-and-effect basis

Define move time

the time required to move materials or partially completed products from workstation to workstation

The manufacturing cycle efficiency is computed by relating the value-added time to the what?

throughput time

The elapsed time from when a customer order is received and when production begins is called what?

wait time