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2. Investing in the same TQM Initiative round after round will create
A. ever increasing returns
B. diminishing returns
C. the same amount of return
With sufficient investment, initiatives will improve processes and quality to the
greatest extent possible, however, each initiative will reach a point where no
further improvement is possible, therefore the investments create no additional
returns.
3. According to the S-Shaped curve, diminishing returns for a single year budget
become significant at
A. $1,000,000
B. $1,500,000
C. $750,000
The S-Shaped curve predicts return on investment. Depending on the slope of the
curve, the return on investment can be small or large. For example, suppose a
project is budgeted at $250,000. This project might go through a planning stage
that produces a set of recommendations, but there is no money left to implement
the recommendations. At $500,000, sufficient funds are available to plan, and
begin implementing the recommendations. At $750,000, the budget is sufficient to
plan and put in place most of the recommendations. At $1,000,000, all of the
recommendations have been implemented, and additional money beyond that level
has little or no effect.
4. The exact outcome of TQM efforts appear on the TQM Report, and as bar charts
on the TQM spreadsheet. These results are for