MNGT 301 || Chapter 16 - Control Systems and Quality Management: Techniques for Enhancing Organizational Effectiveness

The acceptable threshold for quality defects according to Six Sigma standards is 3.4 defects per ______ products or procedures. Multiple choice question. 1,000,000 100,000 10,000,000 10,000

1,000,000

Click and drag on elements in order Place the four steps of the control process in their typical order, from first (at the top) to last (at the bottom). Choice 1 of 4. Establish standards Choice 2 of 4. Compare performance to standards Choice 3 of 4. Take corrective action, if necessary Choice 4 of 4. Measure performance

1. Establish standards 2. Measure performance 3. Compare performance to standards 4. Take corrective action, if necessary

What is the first step of the control process? Multiple choice question. Compare performance to standards. Establish performance standards. Measure performance. Take corrective action, if necessary.

Establish performance standards.

True or false: The quality-control procedures outlined by ISO 9000 certification are based on the honor system that the company with the certification will carry out procedures as promised.

False

What steps should employers take to make monitoring of their workers more successful? (Choose every correct answer.) Multiple select question. Point out the benefits to workers. Communicate expectations. Make monitoring visible. Make monitoring invisible.

Point out the benefits to workers. Communicate expectations. Make monitoring visible.

True or false: In the service industry, customer satisfaction is often based on perception.

True

What are two ways that using AI can increase productivity? Multiple select question. Increasing stockholder dividends Speeding up decision making Encouraging employees to work faster Gathering performance data

Speeding up decision making Gathering performance data

Nicole has enough money in her budget to allow her to hire temporary help for the holiday rush. What type of budget does this represent? Multiple choice question. Marginal Variable Fixed Incremental

Variable

A(n) ______ is a formal financial projection that states an organization's planned activities for a given period of time in quantitative terms. Multiple choice question. trajectory statement budget

budget

A fixed budget, also known as a static budget, has resources allocated on a single estimate of costs. That budget amount ______. Multiple choice question. cannot be adjusted over time is adjusted frequently during the budget period must be adjusted over time is often adjusted over time

cannot be adjusted over time

Businesses can improve management of the supply (blank) through the use of AI.

chain

When Jensen asked his boss, "How many books do we want to sell by November?" he was trying to establish a(n) ______. Multiple choice question. unrealistic expectation upper bound corrective action control standard

control standard

The purpose of ______ is to monitor performance and take corrective action as needed to ensure that objectives are met. Multiple choice question. planning controlling leading organizing

controlling

Which of the following consists of quality-control procedures companies must install in all facets of their operations that can be audited by independent quality-control experts, or registrars? Multiple choice question. ISO 9000 ISO 1000 Six Sigma Statistical process control

ISO 9000

A(n) ______ summarizes an organization's financial results (revenues and expenses) over a specified period of time, such as a quarter or a year. Multiple choice question. stockholder's report audit balance sheet income statement

income statement

Using the previous budget as a starting point and making adjustments to the funds allocated to each expense category is the budgeting approach known as ______ budgeting. Multiple choice question. marginal incremental supplementary zero base

incremental

The balanced scorecard perspective that assesses whether or not the organization encourages employees to make suggestions and question the status quo is known as the ______ perspective. Multiple choice question. customer innovation and learning financial internal business

innovation and learning

Outputs divided by inputs over a specific period of time equals ______. Multiple choice question. dividends cash service productivity

productivity

The ability of a product or service to meet customer needs refers to ______. Multiple choice question. continuous improvement quality inventory benchmarking

quality

The two core principles of total ______ management are people orientation and improvement orientation. Multiple choice question. quality service value placement

quality

Greg prepares a financial statement for his business, listing the company's current assets, fixed assets, and the debts that are owed to suppliers and lenders. What document is Greg preparing for his business? Multiple choice question. Operating budget Annual report Balance sheet Income statement

Balance sheet

Which management function is involved with monitoring performance, comparing it with goals, and taking corrective action as needed? Multiple choice question. Planning Controlling Leading Organizing

Controlling

Which philosophy proposed ideas for making organizations more responsive, more democratic, and less wasteful? Multiple choice question. ISO 9000 Deming management Total quality management (TQM) Six Sigma

Deming management

Jorge's firm has a mortgage on its factory in the amount of $540,000. It also owes $60,000 to a supplier. How would these amounts be listed on the firm's balance sheet? Multiple choice question. Current assets Revenues Liabilities Fixed assets

Liabilities

What do critics fear may result from employee monitoring programs? Multiple choice question. Reduction of the supply chain Loss of privacy Inappropriate workplace relationships Increased product defects

Loss of privacy

Which balanced scorecard perspective asks the question, "How do customers see us?" Multiple choice question. The innovation and learning perspective The internal business perspective The financial perspective The customer perspective

The customer perspective

Which balanced scorecard perspective asks the question, "At what must we excel?" Multiple choice question. The financial perspective The customer perspective The internal business perspective The innovation and learning perspective

The internal business perspective

What are characteristics of the production-run samples used for statistical process control? (Choose every correct answer.) Multiple select question. They are chosen randomly. They are taken only once. They are taken periodically. They always include the first item produced.

They are chosen randomly. They are taken periodically.

The focus of total quality management (TQM) is ______, training, and customer satisfaction. Multiple choice question. continuous quality improvement process efficiency enhanced profitability resource planning

continuous quality improvement

Under the people orientation of TQM, delivering ______ value is most important. Multiple choice question. customer economic efficient product

customer

What are the components of total quality management (TQM)? (Choose every correct answer.) Multiple select question. Focus on problem solving and performance improvement. Make continuous improvement a priority. Jointly establish SMART goals with employees. Use accurate standards to identify and eliminate problems. Get every employee involved. Listen to and learn from customers and employees.

Make continuous improvement a priority. Use accurate standards to identify and eliminate problems. Get every employee involved. Listen to and learn from customers and employees.

Which of the following is the second step of the control process? Multiple choice question. Take corrective action, if necessary Compare performance Establish standards Measure performance

Measure performance

Which of the following is a statistical analysis process that reduces defects in manufacturing and service-related processes and requires no more than 3.4 defects per million products or procedures? Multiple choice question. Malcolm Baldrige Award Pareto analysis Six Sigma Statistical process control

Six Sigma

Match the step in the control process with its description. Step 1 Step 2 Step 3 Step 4 Measured performance is compared to established standards. Corrective action is taken, if necessary. The desired performance level for a given goal is established. Actual performance is measured.

Step 1: The desired performance level for a given goal is established. Step 2: Actual performance is measured. Step 3: Measured performance is compared to established standards. Step 4: The desired performance level for a given goal is established.

What is true about product recalls in the 21st century? Multiple choice question. They have been eliminated by improved manufacturing techniques. They have cost businesses billions of dollars. They cost companies almost nothing. They are the result of "smart" manufacturing.

They have cost businesses billions of dollars.

Which approach is a comprehensive approach, led by top management and supported throughout the organization, and dedicated to continuous quality improvement, training, and customer satisfaction? Multiple choice question. Deming management ISO 9000 Statistical process control Total quality management

Total quality management

Sonja is a barista. Her manager has been hearing reports that Sonja's lattes taste like the milk is burned. Her manager talks to Sonja about these reports and shows her some tricks for steaming the milk to the correct temperature. This is an example of which type of control? Multiple choice question. Concurrent Tactical Primacy Feedback

Feedback

Which type of budgeting allocates increased or decreased funds to a department by using the last budget period as a reference point? Multiple choice question. Incremental Informal Fixed Production

Incremental

What is defined as the subcontracting of services and operations to an outside vendor? Multiple choice question. Outsourcing Benchmarking Decentralization TQM

Outsourcing

What are assumptions of the people orientation of TQM? (Choose every correct answer.) Multiple select question. People will focus on quality if given empowerment TQM requires training, teamwork, and cross-functional efforts It is better to make product improvements in separate phases Delivering product value is most important

People will focus on quality if given empowerment TQM requires training, teamwork, and cross-functional efforts

Two ways for a company to guarantee quality of a product are quality control and quality ______. Multiple choice question. benchmarking assurance efficiency feedback

assurance

The ______ perspective on the balanced scorecard approach focuses on the analysis of different types of customers, their level of satisfaction, and the processes used to deliver products and services to customers. Multiple choice question. innovation financial customer producer

customer

Reduced cycle time is the direct result of ______. Multiple choice question. introducing outsourcing into the work process cutting the number of workers required to complete a job decreasing the steps in a work process increasing the quality of training programs

decreasing the steps in a work process

The ______ perspective of the balanced scorecard asks the question, "How do we look to our shareholders?" Multiple choice question. customer innovation and learning financial internal business

financial

The perspective in the balanced scorecard approach that is concerned with the shareholders' view of organizational performance, such as market share, revenue growth, and stock price, is known as the ______ perspective. Multiple choice question. customer innovation and learning internal business financial

financial

Within the third step of the control process, ______ is a principle that states that managers should be informed of a situation only if data show a significant deviation from standards. Multiple choice question. balanced scorecard management by exception standard deviation management by walking around

management by exception

Samira receives a written report every six months detailing the production outputs of the warehouse. These reports demonstrate which step in the control process? Multiple choice question. establish standards compare performance to standards measure performance take corrective action

measure performance

Halimax has recently been hired by numerous city governments to handle security at major sporting events. The hiring of Halimax rather than relying on the city police force is an example of ______. Multiple choice question. strategic control outsourcing enterprise resource planning benchmarking

outsourcing

The two core principles of TQM are ______ orientation and ______ orientation. Multiple choice question. process; profit improvement; innovation people; product people; improvement

people; improvement

Since service industries do not produce a tangible product, often customer satisfaction may be a matter of ______. Multiple choice question. price personality perception client interaction

perception

Assets resulting from the sale of goods and services are known as ______. Multiple choice question. expenses budgets liabilities revenues

revenues

Practices that use artificial intelligence to reduce defects, shorten downtimes, and facilitate transitions are called (blank) manufacturing.

smart

A _______ map is a visual representation of the four perspectives of the balanced scorecard that enables managers to communicate their goals so that everyone in the company can understand how their jobs are linked to the overall objectives of the organization. Multiple choice question. strategy performance goal

strategy

A visual representation of the four perspectives of the balanced scorecard that enables managers to communicate their goals so that everyone in the company can understand how their jobs are linked to the overall objectives of the organization is called a ______. Multiple choice question. RATER scale strategy map strategic plan balance sheet

strategy map

At the end of the year, Kavita compares each employee's performance to the standards that were set at the beginning of the year. Which step of the organizational control process does this exemplify? Multiple choice question. First Second Third Fourth

third

The four components of ______ are to make continuous improvement a priority, get every employee involved, listen to and learn from customers and employees, and use accurate standards to identify and eliminate problems. Multiple choice question. the management process budget auditing and control total quality management change management

total quality management

A budget in which the allocation of resources fluctuates in proportion to different levels of activity during the budget period is known as a(n) ______ budget. Multiple choice question. informal incremental variable forecast

variable

The ______ approach gives upper management a quick but thorough view of the organization via four indicators: customer satisfaction, internal processes, innovation and improvement activities, and financial measures. Multiple choice question. external audit balance sheet balanced scorecard RATER scale

balanced scorecard

As a property manager for a large office complex, Alisha develops a projection of the costs that will be incurred over the next 12 months, such as landscape expenses, snow removal, insurance, and repairs. Alisha has prepared a(n) ______. Multiple choice question. annual report ratio analysis budget audit response

budget

The costs required to produce the goods or services of the organization are known as ______. Multiple choice question. revenues liabilities expenses

expenses

A summary of some aspect of an organization's financial status such as a balance sheet and an income statement is a ______. Multiple choice question. fixed budget strategy map financial statement balanced scorecard

financial statement

A(n) ______ budget is where resources are allocated on a single estimate of costs, also known as a static budget, and that budget amount cannot be adjusted over time. Multiple choice question. variable fixed dynamic austerity

fixed

Assets not easily converted to cash, such as property, buildings, and equipment, are classified on a firm's balance sheet as ______ assets. Multiple choice question. income fixed consumable variable

fixed

A firm's ______ statement summarizes its financial results (revenues and expenses) over a specified period of time, such as a month, quarter or year. Multiple choice question. income balance fiscal

income

The ability of artificial intelligence to automate decision making and analyze data leads to ______. Multiple choice question. unquantifiable cost less fear of computers increased productivity lower customer service

increased productivity

Which report summarizes the overall financial worth of an organization, such as assets and liabilities, at a specific point in time? Multiple choice question. Balance sheet Capital expenditure budget Ratio analysis Income statement

Balance sheet

What are basic types of financial statements? (Choose every correct answer.) Multiple select question. Balance sheet Financial budget Income statement Ratio analysis

Balance sheet Income statement

Which of the following assets would be categorized as current assets on a firm's balance sheet? Multiple select question. Buildings Cash Equipment Accounts receivable Treasury bills

Cash Accounts receivable Treasury bills

How can managers help ensure that employees will accept monitoring of their time and activities? Multiple choice question. Communicate expectations clearly. Fire those who complain. Raise salaries of those who are monitored. Keep monitoring secret.

Communicate expectations clearly.

What are some of the downsides to electronic monitoring of employees? (Choose every correct answer.) Multiple select question. Employees may leave the job. It places too much trust in employees. It is intrusive. Data can be misused.

Employees may leave the job. It is intrusive. Data can be misused.

Match the type of control (on the left) with its definition (on the right). Feedforward Concurrent Feedback Focuses on preventing future problems Focuses on collecting performance information after a task or project is complete Focuses on collecting performance information in real time

Feedforward: Focuses on preventing future problems Concurrent: Focuses on collecting performance information in real time Feedback: Focuses on collecting performance information after a task or project is complete

Which activities related to internal business control are powered by AI? (Choose every correct answer.) Multiple select question. Improving productivity Increasing in-person sales Decreasing defects Boosting supply-chain management

Improving productivity Decreasing defects Boosting supply-chain management

Which perspective in the balanced scorecard approach addresses how the organization can continue to improve? Multiple choice question. Financial perspective Customer perspective Innovation and learning perspective Internal business perspective

Innovation and learning perspective

What are the indicators that make up the balanced scorecard? (Choose every correct answer.) Multiple select question. Employee engagement Internal processes Innovation and improvement activities Customer satisfaction Financial measures

Internal processes Innovation and improvement activities Customer satisfaction Financial measures

Productivity is defined by the formula of outputs divided by ______ for a specified period of time. Multiple choice question. labor processes inputs capital

inputs

The ______ perspective of the balanced scorecard approach examines such metrics as productivity, efficiency, quality, and safety. Multiple choice question. internal business financial customer innovation and learning

internal business

Deming management proposed ideas for making organizations more responsive, more democratic, and ______. Multiple choice question. smaller more hierarchical less wasteful better controlled

less wasteful

Debts or claims by suppliers and lenders against the assets of a company are classified as ______ on the company's balance sheet. Multiple choice question. receivables taxes liabilities income

liabilities

Statistical process control is a statistical technique that uses ______ from production runs to see if quality is being maintained within a standard range of acceptability. Multiple choice question. documentation expert advice and worker input periodic random samples customer feedback

periodic random samples

Using robots to paint products on a 24-hour basis rather than using humans, who require downtime for personal breaks, would result in ______. Multiple choice question. reduced cycle time decreased customer interaction increased manpower requirements unhappy robots

reduced cycle time