chapter 16

Question 1

a control principle that states that managers should be Informed of a situation only if data show a significant deviation from standards.

Answer 1

management by exception

Question 2

entails collecting performance information in real time

Answer 2

concurrent control

Question 3

amounts to collecting performance information after a task or project is done.

Answer 3

feedback control

Question 4

allows the allocation of resources to vary in proportion with various levels of activity.

Answer 4

variable budget

Question 5

summarizes an organization’s overall financial worth-that is, assets and liabilities-at a specific point in time.

Answer 5

balance sheet

Question 6

refers to the actions companies take to reduce customer defections.

Answer 6

customer retention

Question 7

focuses on the performance of workers, urging employees to strive for “zero defects.”

Answer 7

quality assurance

Question 8

proposed ideas for making organizations more responsive, more democratic, and less wasteful.

Answer 8

deming management

Question 9

is a Japanese philosophy of small continuous improvement that seeks to involve everyone at every level of the organization in the process of identifying opportunities and implementing and testing solutions.!’

Answer 9

kaizen

Question 10

a rigorous statistical analysis process that reduces defects in manufacturing and service-related processes. By testing thousands of variables and eliminating guesswork, a company using

Answer 10

six sigma

Question 11

which focuses on problem solving and performance improve-ment-speed with excellence-of a well-defined project.125

Answer 11

lean six sigma