QUIZLET Unit 5: Controlling Flashcards

1
Q

Refers to the systematic process of regulating organizational activities to make them consistent with the expectations established in plans, targets, and standards of performance.

A

Organization Control

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2
Q

Effectively controlling an organization requires information about ____________________ and __________________, as well as actions taken to correct any deviations from the standards.

A

performance standards; actual performance

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3
Q

Involves measuring, restraining and correcting performance to accomplish an objective as it was planned.

A

Controlling

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4
Q

Controlling involves ________________, __________________, and _________________ performance to accomplish an objective as it was planned.

A

measuring, restraining, and correcting

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5
Q

It involves the measurement of certain elements such as time, quality, quantity and cost against standards or models which have been established, and the evaluation of the work or performance of various personnel in the organization.

A

Controlling

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6
Q

What are measured in controlling? (4)

A
  • Quantity
  • Quality
  • Cost
  • Time
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7
Q

A good control system should.. (4)

A

○ Be flexible so managers can respond as needed
○ Provide accurate information about the organization
○ Provide information in a timely manner, and
○ Encourage each employee to exercise self-control

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8
Q

Degree of willingness of the employees to perform the job even if the managers are not monitoring or imposing performance.

A

Self-control

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9
Q

What are the three types of control?

A
  • Input Stage
  • Conversion Stage
  • Output Stage
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10
Q

Identify the type of control described:

Feedforward Control

A

Input Stage

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11
Q

Identify the type of control described:

Also called Preventive Control

A

Input Stage

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12
Q

Identify the type of control described:

Anticipate problems before they occur

A

Input Stage

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13
Q

Identify the type of control described:

Active anticipation of problems and their timely prevention rather than after the reaction.

A

Input Stage

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14
Q

Identify the type of control described:

Preventive maintenance of machines conducted at a regular schedule date to maintain good functioning of the equipment

A

Input Stage

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15
Q

Identify the type of control described:

Concurrent Control

A

Conversion Stage

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16
Q

Identify the type of control described:

Also called Real Time Control

A

Conversion Stage

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17
Q

Identify the type of control described:

Manage problems as they occur

A

Conversion Stage

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18
Q

Identify the type of control described:

Deals with the present rather than the future or past happenings of the problem

A

Conversion Stage

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19
Q

Identify the type of control described:

Feedback Control

A

Output Stage

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20
Q

Identify the type of control described:

Manage problems after they have arisen

A

Output Stage

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21
Q

Identify the type of control described:

Involves the checking of a completed activity or work

A

Output Stage

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22
Q

Identify the type of control described:

Learning from mistakes

A

Output Stage

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23
Q

Identify the type of control described:

Corrective in nature

A

Output Stage

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24
Q

This model involves using feedback to determine whether performance meets established standards.

A

Feedback Control Model

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25
Q

The feedback control model includes four key steps. What are those?

A

○ Establish standards
○ Measure performance
○ Compare performance to standards
○ Make corrections as necessary

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26
Q

What are the four steps in controlling?

A
  1. Determination of the standards or basis of control based on appraisal of past experience.
  2. Measurement of performance by observation, reports or statistical data.
  3. Comparison of performance with the standards, models or criteria to determine deviations or difference.
  4. Enactment of remedial measures or steps to correct deviation or errors.
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27
Q

Performance standard must be expressed in _________________ terms whenever possible

A

quantitative

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28
Q

It may mean the average unit of output an average employee may be able to perform per hour, per day or per week.

A

Performance Standard

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29
Q

True or False: Provide the employee with specific performance expectations that must be met to be appraised at a particular level of duty

A

True

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30
Q

Makes use of measures such as quantity, quality, and timeliness

A

Performance standard

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31
Q

Performance standard makes used of measures such as… (3)

A
  • Quantity
  • Quality
  • Timeliness
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32
Q

What concept is described below:

A laboratory technician prepares laboratory reagents, cultures, and solutions. All of these are prepared with extreme accuracy and stored appropriately. All specified safety regulations are followed and stocks are kept in supply.

A

Performance Standard

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33
Q

Addresses how quickly, when or by what date the work is produced

A

Timeliness

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33
Q

Addresses how well the work is performed and/or how accurate or how effective the final product is.

A

Quality

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34
Q

What are the two types of control in terms of leadership methods?

A
  • Hierarchical Control
  • Decentralized Control
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35
Q

Identify if the statement below pertains to Hierarchical Control or Decentralized Control.

Definition: Involves monitoring and influencing employee behavior through extensive use of rules, policies, hierarchy of authority, written documentation, reward systems, and other formal mechanisms.

A

Hierarchical Control

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36
Q

Identify if the statement below pertains to Hierarchical Control or Decentralized Control.

Definition: In organizations foster compliance with organizational goals through the use of organizational culture, group norms, and a focus on goals rather than rules and procedures.

A

Decentralized Control

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37
Q

Identify if the statement below pertains to Hierarchical Control or Decentralized Control.

Basic Assumptions: People are incapable of self-discipline and cannot be trusted. They need to be monitored and controlled closely.

A

Hierarchical Control

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38
Q

Identify if the statement below pertains to Hierarchical Control or Decentralized Control.

Basic Assumptions: People work best when they are fully committed to the organization.

A

Decentralized Control

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39
Q

Identify if the statement below pertains to Hierarchical Control or Decentralized Control.

Uses detailed rules and procedures; formal control systems.

A

Hierarchical Control

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40
Q

Identify if the statement below pertains to Hierarchical Control or Decentralized Control.

Uses top-down authority, formal hierarchy, position, power, quality control inspectors.

A

Hierarchical Control

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41
Q

Identify if the statement below pertains to Hierarchical Control or Decentralized Control.

Relies on specific task-related job descriptions.

A

Hierarchical Control

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42
Q

Identify if the statement below pertains to Hierarchical Control or Decentralized Control.

Features limited use of rules; relies on values, group and self-control, selection, and socialization.

A

Decentralized Control

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43
Q

Identify if the statement below pertains to Hierarchical Control or Decentralized Control.

Relies on flexible authority, flat structure, expert power; everyone monitors quality.

A

Decentralized Control

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44
Q

Identify if the statement below pertains to Hierarchical Control or Decentralized Control.

Relies on result-based job descriptions; emphasizes goals to be achieved.

A

Decentralized Control

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45
Q

Identify if the statement below pertains to Hierarchical Control or Decentralized Control.

Features rigid organizational culture distrust of cultural norms as means of control.

A

Hierarchical Control

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46
Q

Identify if the statement below pertains to Hierarchical Control or Decentralized Control.

Individual employees are given extrinsic rewards (pay, benefits, status).

A

Hierarchical Control

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47
Q

Identify if the statement below pertains to Hierarchical Control or Decentralized Control.

Methods define explicit rules, policies, and procedures for employee behavior.

A

Hierarchical Control

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48
Q

Identify if the statement below pertains to Hierarchical Control or Decentralized Control.

Control relies on centralized authority: the formal hierarchy and closed personal supervision

A

Hierarchical Control

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49
Q

Identify if the statement below pertains to Hierarchical Control or Decentralized Control.

Responsibility for quality control rests with quality control inspectors and supervisors rather than employees.

A

Hierarchical Control

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50
Q

Who does the quality control in a hierarchical control?

A

Inspector or Supervisor

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51
Q

Who does the quality control in a decentralized control?

A

Employees

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52
Q

Identify if the statement below pertains to Hierarchical Control or Decentralized Control.

Managers define minimal standards for acceptable employee performance.

A

Hierarchical Control

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53
Q

Identify if the statement below pertains to Hierarchical Control or Decentralized Control.

Emphasizes extrinsic and intrinsic rewards (meaningful work, opportunities for growth).

A

Decentralized Control

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54
Q

Identify if the statement below pertains to Hierarchical Control or Decentralized Control.

Features adaptive culture; culture recognized as means for uniting individuals, team, and organizational goals for overall control

A

Decentralized Control

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55
Q

Identify if the statement below pertains to Hierarchical Control or Decentralized Control.

Consequence: Employees follow instructions and do just what they are told.

A

Hierarchical Control

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56
Q

Identify if the statement below pertains to Hierarchical Control or Decentralized Control.

Consequence: Employees feel a sense of indifference toward work.

A

Hierarchical Control

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57
Q

Identify if the statement below pertains to Hierarchical Control or Decentralized Control.

Consequence: Employee absenteeism and turnover is high.

A

Hierarchical Control

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58
Q

Identify if the statement below pertains to Hierarchical Control or Decentralized Control.

Consequence: Employees rarely participate in the control process with any participation being formalized through mechanisms such as grievance procedures.

A

Hierarchical Control

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59
Q

Identify if the statement below pertains to Hierarchical Control or Decentralized Control.

Consequence: Employees take initiative and seek responsibility.

A

Decentralized Control

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60
Q

Identify if the statement below pertains to Hierarchical Control or Decentralized Control.

Consequence: Employees are actively engaged and committed to their work.

A

Decentralized Control

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61
Q

Identify if the statement below pertains to Hierarchical Control or Decentralized Control.

Consequence: Employees are actively engaged and committed to their work.

A

Decentralized Control

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62
Q

Total Quality Management is what type of control approach?

A

Decentralized

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63
Q

This focuses on teamwork, increasing customer satisfaction, and lowering costs.

A

Total Quality Management

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64
Q

Total Quality Management focuses on _____________, _________________, and _________________.

A
  • teamwork
  • increasing customer satisfaction
  • lowering costs
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65
Q

Organizations implement this by encouraging managers and employees to collaborate and suppliers, to identify areas for improvement, no matter how small.

A

Total Quality Management

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66
Q

The rationale of this is “each quality improvement is a step toward perfection and meeting a goal of zero defects.”

A

Total Quality Management

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67
Q

Quality control becomes part of the day-to-day business of every employee rather than being assigned to specialized departments.

A

Total Quality Management

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68
Q

What are the 5 Total Quality Management techniques?

A
  • Quality Circles
  • Benchmarking
  • Six Sigma
  • Quality Partnering
  • Continuous Improvement
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69
Q

Offer one technique for implementing TQM and include groups of 6 to 12 volunteer employees who meet regularly to discuss and solve problems affecting the quality of their work.

A

Quality Circles

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70
Q

The continuous process of measuring products, services, and practices against major competitors or industry leaders.

A

Benchmarking

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71
Q

Quality control approach that emphasizes a relentless pursuit of higher quality and lower costs

A

Six Sigma

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72
Q

Involves assigning dedicated personnel within a particular functional area of the business to identify opportunities for improvement throughout the work process.

A

Quality Partnering

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73
Q

The implementation of a large number of small, incremental improvements in all areas of the organization on an ongoing basis.

A

Continuous Improvement

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74
Q

Continuous Improvement is also called….

A

Kaizen

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75
Q

True or False: The tools of quality control and improvement should be used in an organized fashion by firms or organizations.

A

True

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76
Q

True or False: Tools by themselves will not lead to improvement they need to be incorporated into an improvement approach such as the six sigma.

A

True

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77
Q

This approach can be applied to processes in manufacturing, service, or administrative areas.

A

Six Sigma Concept

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78
Q

The Six Sigma approach can be applied to processes in ______________, _________________, and _________________ areas.

A

Manufacturing, Service, or Administrative

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79
Q

It is a systematic method for process improvement that often uses the five steps defined by the acronym DMAIC.

A

Six Sigma Concept

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80
Q

What are the 5 steps in the Six Sigma Concept?

A
  1. Define
  2. Measure
  3. Analyze
  4. Improve
  5. Control
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80
Q

How many steps are involved in the Six Sigma Concept?

A

6

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81
Q

What step in the Six Sigma is described below:

The process is selected for improvement, and the project charter is specified

A

Define

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82
Q

What step in the Six Sigma is described below:

Define the problem and the objectives

A

Define

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83
Q

What step in the Six Sigma is described below:

Quality variables valued by the customer are measured, and goals are set for improvement

A

Measure

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84
Q

What step in the Six Sigma is described below:

What do we need to improve?

A

Measure

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85
Q

What step in the Six Sigma is described below:

Can we measure this

A

Measure

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86
Q

What step in the Six Sigma is described below:

The root causes of the current defect levels are identified, and alternatives are considered for process changes

A

Analyze

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87
Q

What step in the Six Sigma is described below:

Analyze the process

A

Analyze

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88
Q

What step in the Six Sigma is described below:

Define factors of influence

A

Analyze

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89
Q

What step in the Six Sigma is described below:

The process is changed and checked for improvement

A

Improve

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90
Q

What step in the Six Sigma is described below:

Identify and implement improvements

A

Improve

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91
Q

What step in the Six Sigma is described below:

This step uses a control chart or measurements to ensure that the process improvement is not lost over time

A

Control

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92
Q

What step in the Six Sigma is described below:

Assure that improvements will sustain

A

Control

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93
Q

What is used in the Control Step?

A

Control Chart

94
Q

Once a process is selected for improvement, a ______________________ is formed since most processes cut across functional lines.

A

Cross-functional team

95
Q

A full-time trained process improvement specialist, usually called a ________________ is chosen to lead to improvement team.

A

“black-belt”

96
Q

Who is hired in the improvement process?

A

full-time trained process improvement specialist

97
Q

Identify if the statement below pertains to LEAN or SIX SIGMA.

Goal: Understand process flow and eliminate waste

A

Lean

98
Q

Identify if the statement below pertains to LEAN or SIX SIGMA.

Goal: Improve process capability and eliminate/minimize variation

A

Six Sigma

99
Q

Identify if the statement below pertains to LEAN or SIX SIGMA.

Application: Primarily high volume processes

A

Lean

100
Q

Identify if the statement below pertains to LEAN or SIX SIGMA.

Application: Any business process

A

Six Sigma

101
Q

Identify if the statement below pertains to LEAN or SIX SIGMA.

Approach: Basic principles and “cookbook style” implementation based on accepted practices

A

Lean

102
Q

Identify if the statement below pertains to LEAN or SIX SIGMA.

Approach: Well understood problem-solving approach relying on statistics (DMAIC or DMADV)

A

Six Sigma

103
Q

Identify if the statement below pertains to LEAN or SIX SIGMA.

Project Selection: Driven by local supervisor

A

Lean

104
Q

Identify if the statement below pertains to LEAN or SIX SIGMA.

Project Selection: BPM and Gap Analysis

A

Six Sigma

105
Q

Identify if the statement below pertains to LEAN or SIX SIGMA.

Length of Projects: 1 week to 2 months

A

Lean

106
Q

Identify if the statement below pertains to LEAN or SIX SIGMA.

Length of Projects: 2 mos - 6 mos

A

Six Sigma

107
Q

Identify if the statement below pertains to LEAN or SIX SIGMA.

Infrastructure: Mostly ad-hoc, minimal formal training

A

Lean

108
Q

Identify if the statement below pertains to LEAN or SIX SIGMA.

Infrastructure: Dedicated resources, broad-based training

A

Six Sigma

109
Q

Identify if the statement below pertains to LEAN or SIX SIGMA.

Training: Learning by doing

A

Lean

110
Q

How many quality tools to achieve continuous improvement are there?

A

7

111
Q

If process is unable to meet customers satisfaction _________________________ or _______________ can be undertaken.

A

continuous improvement or kaizen

112
Q

The implementation of a large number of small, incremental improvements in all areas of the organization on an ongoing basis.

A

Continuous Improvement

113
Q

These tools are generally used by small groups of workers or employees along with managers and engineers to control and improve processes

A

Quality tools to achieve continuous improvement

114
Q

What are the 7 quality control tools?

A
  1. Flow Chart
  2. Fishbone Diagram
  3. Check Sheet
  4. Histogram
  5. Pareto Chart
  6. Scatter Diagram
  7. Control Chart
115
Q

The QC Tool that describe the flow of work and the relationships among steps in the process, and reveal any unnecessary steps and waste that can be eliminated.

A

Flow Chart

116
Q

Flow Chart describes the flow of work and the relationships among steps in the process, and reveal any _________________ and _______________ that can be eliminated.

A

unnecessary steps and waste

117
Q

The QC tool that identifies possible problems that need to be investigated via further data collection and analysis.

A

Flow Chart

118
Q

The QC tool that shows the relationship of factors and variables that might have led to the occurrence of issues.

A

Fishbone Diagram

119
Q

The QC tool that focuses on cause and effect.

A

Fishbone Diagram

120
Q

The QC tool that identifies the problem itself, the effect, which is placed on the right side of the diagram.

A

Fishbone Diagram

121
Q

In the Fishbone Diagram, where is the effect placed?

A

Right side

122
Q

Fleshes out the various potential causes of the problem that are shown along the spine of the diagram and categorized, for example, as materials, workers, inspection, and tools.

A

Fishbone Diagram

123
Q

Fleshes out the various potential causes of the problem that are shown along the ___________ of the diagram.

A

spine

124
Q
A
125
Q
A
126
Q
A
127
Q
A
128
Q

Contain critical process measurements taken at periodic intervals during the dat and tabulated by the time taken

A

Check Sheet

128
Q

True or False: The causes of the problem in the fishbone diagram do not need to be categorized.

A

False

128
Q

New charts with new center lines and upper and lower limits can be created, based on data from the improved process

A

Control Chart

128
Q

Are data collection done which are put in a tabular list representing collected data about the process

A

Check Sheet

128
Q

Shows an appearance of a diagram that suggest a fish analogy

A

Fishbone Diagram

128
Q

Control charts in the laboratory are plotted __________.

A

daily

128
Q

Show the relationship between two variables

A

Scatter Diagram

128
Q

Used to tabulate the frequency of certain defects or other quality-related events

A

Check Sheet

128
Q

Once improvements have been made, the new process should be stabilized to hold the gains by using _____________.

A

Control Chart

128
Q

These are often used in the clinical laboratories which are plotted daily.

A

Control Chart

128
Q

If a particular cause and effect are suspected to be related, the relationship will be apparent as a linear or curved pattern on the scatter diagram through this QC tool

A

Scatter Diagram

128
Q

Histogram is a frequency count using data from….

A

Check Sheet

128
Q

True or False: The original control chart from before process improvement, will still be appropriate following the improvements.

A

False

128
Q

Is a frequency count using data from the check sheet to show the form and shape of the distribution of the data

A

Histogram

129
Q

Indicates that some data points are outliers, or there may be odd shapes to the distribution that indicate skewness or possibly more than one mode or peak in the distribution

A

Histogram

129
Q

The QC tool that states that a few of the failure modes account for most of the observed defects.

A

Pareto Diagram

129
Q

Can be constructed to show the most important problems

A

Pareto Diagram

129
Q

What are the categories under Cost of Quality?

A
  • Appraisal
  • Prevention
  • Internal Failures
  • External Failures
129
Q

He observed that a few items in any population constitute a significant percentage of the entire group-the vital few.

A

Vilfredo Pareto

129
Q

This law states that a few of the failure modes account for most of the observed defects.

A

Pareto Law

129
Q

Includes prevention, appraisal, internal failure, and external failure categories

A

Cost of Quality

129
Q

True or False: Appraisal, Prevention, Internal Failures, External Failures are all a cost of not doing things right the first time.

A

False

(Prevention is not included)

129
Q

True or False: When a cost is assigned to poor quality, it can be managed and controlled like any other cost.

A

True

129
Q

A powerful idea in the area of control and quality is to calculate the…

A

Cost of Quality

130
Q

The cost of quality may be divided into 2 components. What are those?

A
  • Control Cost
  • Failure Cos
131
Q

Are related to activities that remove defects from the production stream

A

Control Costs

132
Q

Control Costs may be done through what ways? (2)

A
  • Prevention
  • Appraisal
133
Q

These are control costs with activities mostly occurring before production and are aimed at preventing defects before they occur.

A

Prevention Costs

134
Q

The control cost that aims to eliminate defects after they occur but before the products or services reach the customer

A

Appraisal Costs

135
Q

Determine if the aspect is under PREVENTION COSTS or APPRAISAL COSTS.

Quality Planning

A

Prevention Costs

136
Q

Determine if the aspect is under PREVENTION COSTS or APPRAISAL COSTS.

New Product Review

A

Prevention Costs

137
Q

Determine if the aspect is under PREVENTION COSTS or APPRAISAL COSTS.

Training

A

Prevention Costs

138
Q

Determine if the aspect is under PREVENTION COSTS or APPRAISAL COSTS.

Quality Data

A

Prevention Costs

139
Q

Determine if the aspect is under PREVENTION COSTS or APPRAISAL COSTS.

Process Planning

A

Prevention Costs

140
Q

Determine if the aspect is under PREVENTION COSTS or APPRAISAL COSTS.

Improvement projects

A

Prevention Costs

141
Q

Determine if the aspect is under PREVENTION COSTS or APPRAISAL COSTS.

Incoming materials inspection

A

Appraisal Costs

142
Q

Determine if the aspect is under PREVENTION COSTS or APPRAISAL COSTS.

Process inspection

A

Appraisal Costs

143
Q

Determine if the aspect is under PREVENTION COSTS or APPRAISAL COSTS.

Final goods inspection

A

Appraisal Costs

144
Q

Determine if the aspect is under PREVENTION COSTS or APPRAISAL COSTS.

Quality laboratories

A

Appraisal Costs

145
Q

Goals of preparing an overall plan, numerous specialized plans, quality manuals, procedures.

A

Quality Planning

146
Q

Review or prepare quality specifications for new products, evaluation of new designs, preparation of tests, and experimental programs, evaluation of vendors, marketing studies to determine customers’ quality requirements

A

New Product Reviewing

147
Q

Developing and conducting training programs

A

Training

148
Q

Designing and developing process control devices

A

Process Planning

149
Q

Collecting data, data analysis, reporting

A

Quality Data

150
Q

Manned failure investigations aimed at correcting quality problems

A

Improvement Projects

151
Q

The cost of determining quality of incoming raw materials

A

Incoming materials inspection

152
Q

All facts, sampling procedures, and inspections done while the product is being made

A

process Inspection

153
Q

All inspections or tests conducted on the finished product in the plant or the field

A

Final Goods Inspection

154
Q

The cost of operating laboratories to inspect materials at all stages of production

A

Quality Laboratories

155
Q

Incurred either during the production process or internal failure or after product is shipped which is external failure costs

A

Failure Costs

156
Q

Failure in the production process

A

Internal Failure

157
Q

Failure after product is shipped

A

External Failure

158
Q

What is the greatest external cost?

A

The potential loss of customer’s confidence in the product or service

159
Q

Identify if the failure cost below is INTERNAL FAILURE or EXTERNAL FAILURE.

Scrap

A

Internal Failure

160
Q

Identify if the failure cost below is INTERNAL FAILURE or EXTERNAL FAILURE.

Rework

A

Internal Failure

161
Q

Identify if the failure cost below is INTERNAL FAILURE or EXTERNAL FAILURE.

Downgrading

A

Internal Failure

162
Q

Identify if the failure cost below is INTERNAL FAILURE or EXTERNAL FAILURE.

Retest

A

Internal Failure

163
Q

Identify if the failure cost below is INTERNAL FAILURE or EXTERNAL FAILURE.

Downtime

A

Internal Failure

164
Q

Identify if the failure cost below is INTERNAL FAILURE or EXTERNAL FAILURE.

Warranty

A

External Failure

165
Q

Identify if the failure cost below is INTERNAL FAILURE or EXTERNAL FAILURE.

Returned Merchandise

A

External Failure

166
Q

Identify if the failure cost below is INTERNAL FAILURE or EXTERNAL FAILURE.

Returned Merchandise

A

External Failure

167
Q

Identify if the failure cost below is INTERNAL FAILURE or EXTERNAL FAILURE.

Complaints

A

External Failure

168
Q

Identify if the failure cost below is INTERNAL FAILURE or EXTERNAL FAILURE.

Allowances

A

External Failure

169
Q

The cost of labor and materials for product that cannot be used or sold

A

Scrap

170
Q

The cost of redoing a product that can be made to conform

A

Rework

171
Q

Product that must be sold at less than full value due to quality problems

A

Downgrade

172
Q

Cost of inspection and tests after rework

A

Retest

173
Q

Idle facilities and people due to quality failures

A

Downtime

174
Q

The cost of refunds, repairing, or replacing products on warranty

A

Warranty

175
Q

Merchandise that is returned to the seller

A

Returned Merchandise

176
Q

The cost of resolving customer complaint due to poor quality

A

Complaint

177
Q

The cost of concessions made to customers due to substandard quality

A

Allowance

178
Q

One of the most commonly used forms of managerial control

A

Budgetary Control

178
Q

Many companies have found that by investing in _______________ activities such as training, process planning, and new product review, they can avoid costs that occur after production (in the case of external failure).

A

prevention

179
Q

This is a tremendous leverage factor. Investing 1 dollar in this form activities generates more than 1 dollar in appraisal.

A

Prevention

180
Q

It is the process of setting targets for an organization’s expenditures, monitoring results and comparing them to the budget, and making changes as needed

A

Budgetary Control

181
Q

True or False: A budget is created for every division or department within an organization, no matter how small, as long as it performs a distinct project, program, or function).

A

True

182
Q

Budgetary Control as a control device; budgets are reports that list planned and actual expenditures for ___________________, and other resources. (4)

A

cash, assets, raw materials, salaries

183
Q

This usually lists the variance between the budgeted and actual amounts for each item.

A

Budget Report

184
Q

Is defined as any organizational department or unit under the supervision of a single person who is responsible for its activity

A

A Responsibility Center

185
Q

What are the four types of budget?

A
  • Expense Budget
  • Revenue Budget
  • Cash Budget
  • Capital Budget
186
Q

Identify the type of budget described in the statement below.

Outlines the anticipated and actual expenses for a responsibility center

A

Expense Budget

187
Q

Identify the type of budget described in the statement below.

May show all types of expenses or it may focus on a particular category such as materials or research and development expenses

A

Expense Budget

188
Q

Identify the type of budget described in the statement below.

When actual expenses exceed budgeted amounts, the difference signals the need for managers to identify possible problems and take corrective action if needed.

A

Expenses Budget

188
Q

The difference between the actual expenses and budgeted amount may arise from ______________ or expenses may be higher because the organization’s sale are growing faster than anticipated.

A

inefficiency

189
Q

True or False: Revenues above budget would require determining whether the organization can obtain the necessary resources to meet the higher than expected demand of its products or services

A

True

190
Q

Identify the type of budget described in the statement below.

Lists forecasted and actual revenues of the organization.

A

Revenue Budget

190
Q

True or False: Revenues above the budgeted amount signal a need to investigate the problem to see whether the organization can improve revenues.

A

False

(below)

191
Q

Identify the type of budget described in the statement below.

Estimates receipts and expenditures of money on a daily or weekly basis to ensure that an organization has sufficient cash to meet its obligations

A

Cash Budget

192
Q

Identify the type of budget described in the statement below.

Shows the level of funds flowing through the organization and the nature of cash disbursement

A

Cash Budget

193
Q

Identify the type of budget described in the statement below.

A budget that plans and reports investments in major assets to be depreciated over several years

A

Capital Budget

194
Q

Identify the type of budget described in the statement below.

Lists planned investments in major assets such as building, heavy machinery, complex information technologies system often involving expenditures over more than a year

A

Capital Budget

195
Q

_____________________ not only have a large impact on future expenses but they are also investments designed to enhance profits

A

Capital expenditures

196
Q

This has been expanded to refer to the framework of systems, rules, and practices by which an organization ensures accountability, fairness, and transparency in its relationships with all stakeholders, including investors, employees, customers, and the general public

A

Corporate Governance

197
Q

Traditionally defined as the ways in which an organization safeguards the interest of shareholders

A

Corporate Governance

197
Q

Managers record, analyze, and discuss these various metrics to determine how well the organization is achieving its strategic goals.

A

The Four Perspectives in a Balanced Scorecard

198
Q

This is an effective tool for managing and improving performance, but only if it is clearly linked to a well-defined organizational strategy and goals.

A

Scorecard

199
Q

What are the four perspectives in a balanced scorecard?

A
  • Financial Performance
  • Customer Service
  • Internal Business Processes
  • Potential for Learning and Growth
199
Q

Identify the perspective described below based on the balanced scorecard.

This reflects a concern that the organization’s activities contribute to improving short- and long-term financial performance.

A

Identify the perspective described below based on the balanced scorecard.

This reflects a concern that the organization’s activities contribute to improving short- and long-term financial performance.

199
Q

Identify the perspective described below based on the balanced scorecard.

It includes traditional measures such as net income and return on investment.

A

Financial Performance

200
Q

Identify the perspective described below based on the balanced scorecard.

Measures information such as how customers view the organization and customer retention and satisfaction.

A

Customer Satisfaction

201
Q

Identify the perspective described below based on the balanced scorecard.

These data may be collected in many forms, including testimonials from customers describing superlative service or from customer surveys

A

Customer Satisfaction

202
Q

Identify the perspective described below based on the balanced scorecard.

Indicators focus on production and operating statistics.

A

Internal Business Processes

202
Q

Identify the perspective described below based on the balanced scorecard.

May include fast turn-around-time in releasing results, the use of fully-automated systems to accommodate high-volume samples, and adherence to safety guidelines.

A

Internal Business Processes

203
Q

Identify the perspective described below based on the balanced scorecard.

Metrics may include things such as employee retention and the introduction of new products

A

Potential for learning and growth

203
Q

Identify the perspective described below based on the balanced scorecard.

Looks at the organization’s potential for learning and growth, focusing on how well resources and human capital are being managed for the company’s future

A

Potential for learning and growth