Quality Chapter 12

Google is one of the most prominent vendors for ERP software.

False

Financial measures of performance measurement in the Baldrige criteria are generally tracked by senior leadership to gauge overall organizational performance and are often used to determine incentive compensation for senior executives.

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.

True

Leading organizations continually improve their performance measurement systems, staying abreast of new techniques.

True

Measurement reliability in manufacturing demands careful attention to metrology, the science of measurement.

True

Setting targets for each performance measure provides the basis for strategy deployment.

True

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

True

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

True

Workforce-focused outcomes used for performance measurement in the Baldrige criteria show how well the organization has created and maintained a productive, engaging, and caring work environment.

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

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

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.

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

_____ 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

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

c. Oracle

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

Which of the following measures of the Baldrige criteria of performance measurement includes revenue, return on equity, return on investment, and operating profit? a. Workforce focused outcomes b. Leadership outcomes c. Governance outcomes d. Financial outcomes

d. Financial outcomes

An emphasis on machine utilization in an organization encourages having fewer, but larger, general-purpose machines, which results in decreased inventory and throughput time.

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.

False

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.

False

Physical and financial assets have become more important than knowledge assets in many organizations.

False

A balanced scorecard greatly helps in identifying the real drivers of customer satisfaction.

False

A good balanced scorecard contains only leading measures and indicators.

False

Compared to money, labor, and capital equipment, knowledge is always the easiest to manage.

False

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

False

Leading indicators of a balanced scorecard represent long-term results.

False

The quality of information can be improved by capturing data multiple times and as away from the origin of the data as possible

False

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.

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.

True

An effective knowledge management system should include a common framework for managing knowledge and some way of validating and synthesizing new knowledge as it is acquired.

True

An organization must align its performance measurement system to its vision and strategy and select meaningful measurements.

True

Confidentiality and security are critical in managing data, particularly with the increasing use of electronic data transfer.

True

Data accessibility empowers employees and encourages their participation in quality improvement efforts

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.

True

_____ systems are software packages that integrate organizational information systems and provide an infrastructure for managing information across the organization. a. Enterprise resource planning b. Balanced scorecard c. Juran's quality trilogy d. Quincunx experimental

a. Enterprise resource planning

_____ knowledge is easily captured, stored, and disseminated using computer technology. a. Explicit b. Indirect c. Tacit d. Allusive

a. Explicit

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

a. Financial perspective

Which of the following perspectives of the balanced scorecard directs attention to the basis of a future success —the organization's people and infrastructure? a. Innovation and learning perspective b. Customer perspective c. Financial and internal perspective d. Internal perspective

a. Innovation and learning perspective

_____ balanced scorecard is the only version of performance measurement systems that have emerged as organizations recognized the need for a broad set of performance measures that provide a comprehensive view of business performance. a. Kaplan and Nortan's b. Raytheon's c. Deming's and Juran's d. Schneiderman's

a. Kaplan and Nortan's

Pal's Sudden Service uses an automated data collection, integration, and analysis system called _____ to generate store-level and companywide reports on sales. a. SysDine b. Knowledge Network c. Quincunx d. eTracker

a. SysDine

With respect to the Balrige criteria performance measures, _____ performance indicators include measures of business growth and percentage of new product sales. a. marketplace b. leadership c. governance d. process-based

a. marketplace

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

Who among the following first developed the concept of a balanced scorecard? a. Edwards Deming b. Art Schneiderman c. Joseph Juran d. Kaoru Ishikawa

b. Art Schneiderman

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

b. Comparative

Which of the following perspectives of the balanced scorecard focuses on market share? a. Internal perspective b. Customer perspective c. Innovation perspective d. Learning perspective

b. Customer perspective

_____ 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

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.

Which of the following perspectives of the balanced scorecard include service levels, satisfaction ratings, and repeat business? a. Internal perspective b. Financial perspective c. Customer perspective d. Innovation perspective

c. Customer perspective

_____ 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.

_____ 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

_____ 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 perspectives of the balanced scorecard includes profitability, revenue growth, return on investment, economic value added (EVA), and shareholder value? a. Internal perspective b. Learning perspective c. Customer perspective d. Financial perspective

d. Financial perspective

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