Chapter 19 Managing Quality and Perfomance

A quality circle is a group of _____ volunteer employees.

6 to 12

Which of the following is a ratio that measures the firm's internal performance with respect to key activities defined by management?

An activity ratio

Which of the following is the process of measuring your organizational process against the best in the industry?

Benchmarking

_____ control is the process of setting targets for an organizations expenditures.

Budgetary

Which of the following refers to the system of governing an organization so that the interests of corporate owners are protected?

Corporate governance

Which of the following is a control system that measures performance in terms of after-tax profits minus the cost of capital invested in tangible assets

Economic value-added system

Which of these is based on a set of international standards for quality?

ISO certification

In the process of implementing the balanced scorecard approach at his company, operations manager Seth Howard wonders whether internal activities and processes add value for customers and shareholders. This involves which dimension of the balanced scorecard?

Internal business processes

Mistletoe Corporation has a detailed set of organizational goals and management information system that delivers timely and accurate information. Mistletoe still has control problems, however, because its managers refuse to act on the information they receive. Mistletoe's control process has flaws in which of the following areas?

Its ability to take corrective action when necessary

Which of the following refers to funding activities with borrowed money?

Leverage

Silver n' Gold Inc. recently introduced a new control philosophy where all employees have access to the same information that owners have, such as what money is coming in and where it is going. This is an example of which control philosophy?

Open-book management

Which of the following allows employees to see for themselves the financial condition of the company?

Open-book management

Tiffany recently discovered that the reject rate for her department has exceeded the standard for performance in this area. What should Tiffany do to exercise effective control?

She should investigate and discover the cause of the problem.

For control, this type of measure is an important part of achieving higher performance.

Statistical

Charlie, a manager at a textile company, is bothered by a lack in quality of products manufactured by his company. Charlie hopes to infuse quality into the company through continuous improvement by involving everyone who works there. This describes which control philosophy?

Total quality management

The _____ plans future investments in major assets to be depreciated over several years.

capital budget

It seems that once a year the managers of Stone Construction, Inc. attempt a major organization intervention, such as management-by-objectives. They never seem to be satisfied with the performance of Stone Construction and, sure enough, 12 months later, along comes another major intervention. By implementing organizational change in this way, Stone Construction's management may well be violating the principle of:

continuous improvement.

The _____ is purchase orders divided by customer inquiries.

conversion ratio

An advantage of the bottom-up budgeting process is:

lower managers are more involved.

Contingency factors that can influence the success of a TQM program in a positive way include all of the following EXCEPT:

managers wait for big, dramatic innovations

Contingency factors that can influence the success of a TQM program in a positive way include all of the following EXCEPT

managers wait for big, dramatic innovations.

According to the control model, after establishing standards of performance the manager should:

measure actual performance.

Net income divided by sales is the correct formula for calculating:

profit margin on sales.

To reduce the organization's cycle time is to reduce the number of:

steps in an organizational process.

Brad is a department manager at Home Theater, Inc. His sole role in the budget process is to implement the budget that is developed for him. This is an example of:

top-down budgeting.

A contingency factor that can influence the success of a TQM program in a negative way is that:

union leaders are left out of QC discussions.