Management 3710

Fall, 2002
Sample Questions for Exam 1
These are questions that are intended to give some idea about the type of questions that will be asked on the first
exam. Please keep this in mind; these questions are not intended to be a complete review of the assigned material or
to substitute for reading and understanding the assigned material.
CHAPTER 1
INTRODUCTION TO QUALITY
TRUE-FALSE
1. Productivity compares the amount of output achieved per unit of input.
2.

Quality assurance refers to any action directed toward providing consumers with goods and services of
appropriate quality.

3.

The use of interchangeable parts reduces the need for quality control.

4.

Inspection was the primary means of quality control during the first half of the twentieth century.

5.

Because of the gains achieved in the 1980s and 1990s, executives no longer regard quality management as a
future strategic issue.

6.

To exceed customer expectations, a company must generally concentrate on conforming to specifications.

7.

Traditional management views an enterprise as a system of interdependent processes while TQ views an

enterprise as a collection of highly specialized and individual processes.

8.

Total quality represents a set of tools and techniques rather than a management philosophy.

MULTIPLE CHOICE
9. Which of the following refers to any action aimed at providing customers with goods and services of
appropriate quality?
a. quality review
b. manufacturing planning and control
c. quality engineering
d. quality assurance
10. The creation of separate quality departments in the early 1900s caused:
a. indifference to quality among workers
b. reduced knowledge about quality from upper management
c. less responsibility for quality assigned to the quality department
d. both a and b
11. Until the 1980s, most U.S. companies focused on maintaining quality levels by utilizing which of the following
practices:
a. design quality reviews
b. mass inspection
c. quality improvement teams
d. customer-driven quality

12. A consumer purchases a generic product at a cost of $5.00 instead of the competing brand-name product that
sells for $7.00. The consumer feels that there is no difference in quality between the generic and brand name
products. This scenario illustrates which of the following definitions of quality?
a. manufacturing-based
b. value-based
c. user-based
d. none of the above
13. Which of the following is not a core principle of the total quality philosophy?
a. meeting or exceeding the customer's quality expectations
b. continuous improvement
c. company wide participation and teamwork
d. cost cutting to improve short term profitability
14. Which of the following are not elements of total quality infrastructure?
a. data and information management
b. strategic planning
c. quality assurance department
d. human resources management
15. Which of the following are not foundation principles of total quality?
a. customer focus
b. continuous improvement and learning
c. tight managerial control
d. participation and learning
16. Formal studies indicate that effective quality management practices translate into
a. operational improvements but not financial improvements
b. financial improvements but not operational improvements
c. both operational and financial improvements
d. none of the above
DISCUSSION QUESTIONS
17. Explain why it is difficult to obtain a single, universal definition of quality.
18. Discuss how a fast-food restaurant could measure its quality effectiveness using each of the following
definitions of quality: product-based, user-based, value-based, and manufacturing-based.
CHAPTER 2
TOTAL QUALITY IN ORGANIZATIONS
TRUE-FALSE
1. In managing for quality, it is better to analyze systems by looking at their individual parts that to analyze the
interaction between parts of the system.
2.

The purchasing department can help a firm achieve quality by providing quality improvement training to
suppliers.

3.

A contemporary trend in manufacturing practice has been the shift in responsibility for quality away from the
worker to the quality control department.

4.

It is usually more cost-effective to find new customers than to keep current ones.

5.

Many health care providers are adapting quality management practices as a means of improving performance
and lowering costs.

6.

A universitys faculty is an example of an output of the higher education production system.

7.

Quality improvement practices have not been successfully applied to education.

8.

Consistency in services can be defined as the degree to which all items in an order are included.

MULTIPLE CHOICE
9. If quality is built into the product, final inspection should be
a. used for auditing and testing.
b. maintained at a 100% level.
c. eliminated.
d. the dominant aspect of quality control.
10. Asking graduates about how to improve their college degree program is an example of
a. the production process.
b. supplier selection.
c. customer research.
d. redesign.
12. Motorolas goal of six-sigma quality is a level of quality representing no more than 3.4 defects per _______
opportunities.
a. hundred
b. thousand
c. million
d. billion
13. A dimension of quality that is unique to service transactions concerns
a. product features.
b. courtesy.
c. reliability.
d. performance.
14. Common complaints about service employees include
a. not showing up at the promised time.
b. providing too much information.
c. excessive knowledge of how a product works.
d. a and c
15. Studies indicate that quality problems related to health care include
a. patients injured during the course of treatment.
b. overuse of health care services.
c. wide patterns of variation in health care practices.
d. all of the above.
16. Leading practices in improving education quality include
a. involving students in the improvement of school processes.
b. dropping the traditional grading system.
c. a focus on school administrative processes rather than on classroom processes.
d. both a and b.
DISCUSSION QUESTIONS
17. Define and discuss each of the following dimensions of service quality with respect to eating lunch at your
favorite fast-food restaurant: consistency, accessibility, completeness, courtesy, time, accuracy
18. Select four major functions of a manufacturing firm and describe how each function contributes to the firms
achievement of quality.

CHAPTER 3
PHILOSOPHIES AND FRAMEWORKS
TRUE-FALSE
1. Deming favored the use of slogans as a means to motivate workers.
2.

Deming advocated the use of relatively few suppliers as a means to reduce raw material variation.

3.

Juran, unlike Deming, specifies a detailed mechanism for quality improvement.

4.

Crosby argues that zero defects is a performance standard and not a motivational program.

5.

A central purpose of the Malcolm Baldrige National Quality Award is to improve the competitiveness of U.S.
businesses.

6.

A popular use of the Baldrige criteria is for company self-evaluation and improvement of their internal systems.

7.

The basic premise behind the ISO 9000 standards is that a well-managed quality assurance system will result in
products that meet customer requirements.

8.

The QS 9000 standards are more prescriptive than the ISO 9000 standards.

MULTIPLE CHOICE
9. The Deming philosophy focuses on improvements in product and service quality by
a. 100% inspection
b. reducing uncertainty and variability.
c. financial analysis.
d. separating the planning and execution functions of management.
10. Deming stressed that the ultimate responsibility for quality improvement lies with
a. design engineers.
b. cost accountants.
c. top management.
d. raw material vendors.
11. Juran's Quality Trilogy consists of three processes. These processes are
a. quality planning, forecasting and cost of quality.
b. cost accounting, quality control and reliability management.
c. quality planning, quality control and quality improvement.
d. cost of quality, common cause variation and special cause variation.
12. Which is a major difference in the Deming and Crosby philosophies?
a. Top management commitment.
b. Continuous improvement.
c. Quality practices save money.
d. Use of statistical techniques.
13. How a company determines customer satisfaction and satisfaction relative competitors is an example of a key
management practice under the Malcolm Baldrige National Quality Award category that examines
a. strategic planning.
b. customer and market focus.
c. leadership.
d. information and analysis.

14. Which of the following is true about the ISO 9000:2000

a. the scope of the standards aligns more closely with the Baldrige criteria.
b. emphasis has shifted towards evaluating product quality.
c. the previous focus on customer expectations has been reduced.
d. the requirements for quality system documentation have increased.
15. Which of the following standards was specifically designed for automotive suppliers?
a. QS 9000
b. ISO 9001:2000
c. TL 9000
d. AS 9000
16. Which of the following best describes the ISO 9000 standards?
a. They are product quality standards.
b. They are quality system standards.
c. They are environmental quality standards.
d. All of the above.
DISCUSSION QUESTION
17. Discuss the reasons why a firm would seek ISO 9000 registration.
18. In Deming's view, variation is the root cause of poor quality. Explain the difference between common and
special cause variation. Discuss Deming's recommendations to eliminate variation.
CHAPTER 4
FOCUSING ON CUSTOMERS
TRUE-FALSE
1. Expected quality is a measure of what a manufacturer thinks customers want in a product or service.
2.

Profitable businesses focus more on customer satisfactions than on customer loyalty.

3.

As customers become more familiar with new or innovative product features, the exciter/delighter becomes a
satisfier.

4.

An advantage of mail questionnaires is low non-response bias.

5.

Unexpected satisfaction occurs when actual quality exceeds expected quality.

6.

The American Customer Satisfaction Index is a comparative survey of top U.S. chief executives.

7.

Surveys are a more effective means of gathering customer information than are focus groups.

8.

Customer-focused organizations make it easy for customers to complain.

MULTIPLE CHOICE
9. Moments of truth are instances when:
a. new products are launched
b. a firm is audited by the IRS
c. a customer comes into contact with an employee
d. a new competitor enters the market
10. Which of the following statements is true?
a. Customer satisfaction leads to perceived value
b. Customer satisfaction leads to customer loyalty
c. Customer loyalty leads to perceived value
d. Customer loyalty leads to customer satisfaction

11. A disadvantage of focus groups is

a. limited direct customer contact.
b. high cost.
c. lack of in depth probing of panel members.
d. inability to control the membership of the panel.
12. The ability to accurately and dependably provide a customer with what was promised illustrates the service
quality dimension of
a. responsiveness.
b. assurance.
c. empathy.
d. reliability.
13. Gathering information from repair technicians on the problems encountered by customers with the companys
installed products is an example of
a. market survey.
b. focus group.
c. direct assessment.
d. field intelligence.
14. Questions in a satisfaction survey must be properly designed in order to
a. be short.
b. cover all facets of the market.
c. achieve actionable results.
d. address more than one issue per question.
15. Which of the following is used to organize large numbers of ideas or facts into natural patterns or groupings?
a. Process diagram
b. Comment card
c. Focus diagram
d. Affinity diagram
16. A question on a customer service questionnaire uses the following measurement scale:
Strongly
Agree

Agree

Neutral

Disagree

Strongly
Disagree

This is an example of what type of measurement scale?

a. open-ended
b. control
c. systematic differential
d. Likert
DISCUSSION QUESTIONS
17. A mail order clothing company is considering using customer segmentation.
a. Discuss the benefits associated with customer segmentation.
b. Identify five different ways in which the clothing company could segment customers.
18. Discuss the role of complaint management in customer relationship management.
CHAPTER 5
LEADERSHIP AND STRATEGIC PLANNING
TRUE-FALSE
1. Strategy can be viewed as a pattern of decisions that reveals a companys goals, policies, and plans to meet
stakeholder needs.

2.

Leadership should not be considered effective unless it has a meaningful impact on the organization and the
firms results.

3.

True power is based upon formal position and authority.

4.

True power is based upon formal position and authority.

5.

A common practice of effective leaders is to delegate quality-related activities to their staff.

6.

Strategic plans are best kept secret by top management to prohibit competitors from discovering the company's
intentions.

7.

Assessment of the companys internal capabilities should be part of the strategy development process.

8.

An increasing part of strategic planning is projecting the competitive environment.

MIULTIPLE CHOICE
9. Leaders who encourage employees to participate in quality improvement efforts and develop cross-functional
teamwork and customer-supplier partnerships are demonstrating the leadership skill of
a. vision.
b. intuition.
c. empowerment.
d. self-understanding.
10. In firms committed to total quality, leading practices in leadership include
a. controlling the status quo.
b. delegating quality issues to technical experts.
c. setting clear values for business decisions.
d. focusing on the internal operation of the company.
11. Which of the following are approaches to strategic planning that are shared by effective organizations?
a. Organization-wide participation in planning
b. Focus on near term goals
c. Special emphasis on stock market expectations
d. Unstructured systems for strategy development and deployment
12. Which of the following represent a leading practice in strategic planning?
a. Gathering and analyzing a variety of data about internal and external factors as part of strategic
planning.
b. Using measures to track progress of strategy deployment.
c. Limiting the strategic planning group to the top management team.
d. a and b only
13. Which of the following would be considered a part of strategy deployment?
a. Monitoring key market place goals and objectives that gauge effective implementation of the strategy.
b. Developing the strategic plan.
c. Assessing the competitions competitive strengths and weaknesses.
d. None of the above.
14. Which of the following is not a basic form of organization structure?
a. line organization
b. matrix organization
c. symmetric organization
d. line and staff organization

15. A plan that integrates an organization's major goals, policies, and action sequences into a cohesive whole is
referred to as
a. goal attainment.
b. k parametric program.
c. material requirements plan.
d. strategy.
16. The contingency theory approach to leadership states that:
a. coercive power is crucial to a leader's success
b. true leadership skills cannot be learned
c. leadership behavior is situation dependent
d. formal position is the basis of leadership
DISCUSSION QUESTIONS
17. Identify four leadership practices commonly observed in total quality organizations.
18. Identify the benefits to an organization when it incorporates quality into strategic planning.
CHAPTER 6
HUMAN RESOURCE PRACTICES
TRUE-FALSE
1. A belief among many businesses is that, in order to satisfy customers, employees must be satisfied.
2.

Training becomes more important in organizations that adopt total quality.

3.

Total quality firms separate health, safety, and ergonomics issues from quality improvement activities.

4.

Deming was strongly opposed to traditional performance appraisal systems because the performance factors are
beyond the control of the individual being appraised.

5.

There are federal laws that threaten the organization of joint management-worker teams.

6.

In total quality companies, the major objective behind employee involvement initiatives is to make employees
feel important.

7.

Employee involvement works well in a Theory X work environment.

8.

All work teams require problem-solving skills.

MULTIPLE CHOICE
9. The major focus of Taylor's philosophy of scientific management was:
a. productivity
b. automation
c. quality
d. labor relations
10. In the context of total quality, managerial roles can be described as:
a. controllers
b. appraisers
c. directors
d. facilitators

11. Herzberg's two-factor theory suggests that two type of factors affect job performance. These factors are
a. referent and release factors.
b. creative and innovative factors.
c. motivation and supervision factors.
d. maintenance and motivational factors.
12. The concept of job _____ involves increasing a worker's level of responsibility so as to provide the worker the
opportunity to use a wider range of skills.
a. security
b. enlargement
c. rotation
d. enrichment
13. Organizations have commonly used performance appraisals to
a. provide feedback to employees on strengths and weaknesses.
b. identify people for promotion.
c. provide a paper trail in case of legal action.
d. a and b.
14. The foundations of employee involvement are
a. participation and teamwork.
b. statistical methods and reengineering.
c. scientific management principles and QFD.
d. Theory X motivational models and teamwork.
15. The major difference between quality circles and self-managed teams is self-managed teams
a. are not voluntary.
b. work on pre-chosen problems.
c. do not meet regularly.
d. have more autonomy and authority.
16. A group of employees fully responsible for all aspects of processing claims at an insurance company is an
example of a
a. quality circle.
b. project team.
c. virtual team.
d. self-managed team.
DISCUSSION QUESTIONS
17. Contrast the role and function of human resource management under the traditional and TQ approaches.
18. Describe each of the following types of teams:
a. Problem-solving
b. Management teams
c. Work teams
d. Virtual teams