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STRATEGY CONTENT Answer: A Easy 1. Strategic planning has two important dimensions. These are: A. B. C. D. E. Answer: D Easy 2. analysis and synthesis implementation and control strategic and routine proactive and standardized content and process
Strategic plan __________ answers the question of what is to be contained in the strategic plan. A. B. C. D. E. process method operation content standardization
Answer: E Moderate
3.
Which of the following is not an example of a strategic content variable? A. B. C. D. E. time leadership quality costs generic strategies planning
Answer: C Hard
4.
A comprehensive study by the United States General Accounting Office stated that, on average, __________ were required for companies to being to see significant results from quality improvement programs. A. B. C. D. E. six months 1 year 3.5 years 5 years 7 years
Answer: C Moderate
5.
Strategic planning implies planning for: A. B. C. D. E. the short term the intermediate term the long term the short term in manufacturing and the long term in services the short term in services and the long term in manufacturing
Answer: D Moderate
stated that, on average, ____ years were required for companies to begin to see significant results from quality improvement programs.
B C D E Answer: A Moderate
Answer: D Moderate
5-03. The text book used cheating on No Child Left Behind exams as an
example of _____________. A B C D E synergism autocorrelation syncretism distortion of the data synthetic division
LEADERSHIP FOR QUALITY Answer: A Easy 6. __________ is the process by which a leader influences a group to move toward the attainment of superordinate goals. A. B. C. D. E. Answer: D Moderate 7. Leadership Empowerment Planning Organizing Controlling
__________ goals are those goals that pertain to achieving a higher end that benefits not just the individual, but the group.
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A. B. C. D. E. Answer: A Moderate 8.
Which type of power is derived from the possession of special knowledge (or the assumption that a person has special knowledge)? A. B. C. D. E. power of expertise reward power coercive power referent power legitimate power
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Answer: C Moderate
9.
What type of power is derived from the possession of special rewards that a leader can bestow upon subordinates in return for desirable action? A. B. C. D. E. coercive power legitimate power reward power power of expertise referent power
Answer: D Moderate
10.
What type of power is derived from the ability to punish followers for not following rules or guidelines? A. B. C. D. E. power of expertise referent power legitimate power coercive power reward power
Answer: B Moderate
11.
The use of __________ power tends to cause followers to rebel and try to even the power relationship? A. B. C. D. E. reward coercive legitimate the power of expertise referent
Answer: A Moderate
12.
What type of power is derived from an individuals personal charisma or charm? A. B. C. D. E. referent power coercive power power of expertise legitimate power reward power
Answer: B Moderate
13.
A case of __________ power is the mentor who is admired by his or her protegees who want to be like the mentor. A. B. C. D. E. reward referent legitimate coercive power of expertise
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Answer: E Moderate
14.
What type of power is derived from the position an individual holds in an organization? A. B. C. D. E. power of expertise coercive referent reward legitimate
Answer: E Moderate
1401.
Which one of the following is not a function of a quality leader B C D E A organize plan and control communicates teaches analyze
LEADERSHIP DIMENSIONS Answer: B Moderate 15. The __________ dimension of leadership deals with such variables as height, productivity, and intelligence. A. B. C. D. E. Answer: E Moderate 16. skills trait behavioral cognitive indigenous
Which of the following selections is not a leadership skill? A. B. C. D. E. knowledge communication planning vision intelligence
Answer: B Moderate
17.
The leader __________ approach discusses how leaders behave to identify specific leadership styles and to study the effects of leadership style on subordinate satisfaction and performance. A. B. C. D. E. skills behavior trait characteristic qualities
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Answer: B Moderate
18.
One option firms have for lowering their number of employees is through __________, which means not hiring new employees as older employees either quit or retire. A. B. C. D. E. disintegration attrition downsizing rightsizing erosion
Answer: D Moderate
19.
A commitment to quality by top management can be demonstrated by: A. attrition B. venues C. CRI D. funding E. slogans The leader skill of communication includes this task: A. decision making B. evaluation skills C. conflict management D. task management E. time management Nothing can damage a quality improvement effort faster than: A. increased pressure from outside competition B. managements failure to consider implementing employees recommended changes C. increase in the amount of slack time available D. resources dedicated to the quality improvement effort E. rapid changes in technology Commitment to quality means that leaders provide funding, slack time, and resources for quality improvements to be successful. This commitment is appropriately measured: A. B. C. D. E. in decades in quarters in budget-cycles annually semiannually
Answer: C Moderate
20.
Answer: B Hard
21.
Answer: A Hard
22.
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Answer: A Moderate
2201.
Answer: A Moderate
2202.
Nothing can damage a quality improvement effort faster than managements failure to consider ._________________ A implementing changes that employees recommend.:
an appropriate reward system meeting times during working hours Pareto analysis semi-annual reviews
Acceptance of diversity is in ____________ A B C D E Quadrant 1 : knowledge Quadrant 2: communication Quadrant 3: planning Quadrant 4: vision none of the above
Answer: B Moderate
2204.
Conflict management is in ____________ A B C D E Quadrant 1 : knowledge Quadrant 2: communication Quadrant 3: planning Quadrant 4: vision none of the above
Answer: C Moderate
2204.
Decision making is in ____________ A B C D E Quadrant 1 : knowledge Quadrant 2: communication Quadrant 3: planning Quadrant 4: vision none of the above
Answer: D Moderate
2205.
Identifying opportunities is in ____________ A B C D Quadrant 1 : Quadrant 2: Quadrant 3: Quadrant 4: knowledge communication planning vision
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QUALITY AND ETHICS Answer: E Moderate 23. An unethical approach by management would be reflected by: A. reliable products B. low defect rates C. quality D. valuing employees E. none of the above are unethical It has been said that the entire US economy is based on one simple principle: A. Just do it B. The Pareto principle C. When I give you a check, there are funds sufficient in my account to cover it D. He who has the gold, makes the rules E. None of the above are correct
The well-known mission statement of a New Bedford, Massachusetts, shipbuilder: We build good ships. At a profit if we can, at a loss if we must. But, we build good ships. is given in the textbook as an example
Answer: C Moderate
24.
Answer: C Moderate
2401 .
of __________ A. B. C. D. E. Answer: C Moderate 2402 . the Pareto Principle the importance of financial planning ethics the Golden Rule, that it, He who has the gold, makes the rules the Decalogue
Supporting a program of continuous improvement requires the development of an appropriate A. B. C. D. E. bottom line entrepreneurship program culture benchmarking program commission sales program
QUALITY AS STRATEGY Answer: A Moderate 25. The three generic strategies are: A. B. C. D. E. cost, differentiation, and focus manufacturing prowess, service quality, and durability cost, quality, and service differentiation, specialization, and customization focus, breadth, and low-cost
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Answer: E Moderate
26.
There are two broad categories of quality costs, namely: A. B. C. D. production costs and service costs design costs and control costs inspection costs and manufacturing costs those costs due to quality inspection and those costs due to quality design E. those costs due to poor quality and costs associated with improving quality
Answer: E Moderate
2601.
Life cycle costs are: A costs associated with employee wellness programs B costs associated with employee stage in life C employee healthcare costs D costs associated with the impact of pollution on employees E the summation of costs over the life of a product
Answer: B Moderate
2602.
In the context of quality, the acronym PAF stands for __________ A B C D E platelet activating factor prevention, appraisal, failure performance assessment framework Project Air Force postal address file
Answer: D Moderate
2603.
Which one of the following is considered a prevention cost? A B C D E training product quality audits set up for quality tests laboratory acceptance testing on site performance tests.
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PAF PARADIGM AND OTHER QUALITY-RELATED ISSUES Answer: C Moderate 27. The PAF paradigm translates quality costs into three broad categories, which are then subdivided into other categories. The three categories are: A. B. C. D. E. Answer: C Moderate 28. price, appraisal, and facility costs process, attitude, and failure costs prevention, appraisal, and failure costs procedures, attention, and failure costs process, appraisal, and facility costs
__________ costs are those costs associated with preventing defects and imperfections from occurring. A. B. C. D. E. Process Procedure Prevention Indigenous Spurious
Answer: A Moderate
29.
Costs such as training, quality planning, process engineering and other costs associated with quality beforehand are referred to as: A. B. C. D. E. prevention costs process costs procedure costs methods costs indigenous costs
Answer: B Moderate
30.
__________ costs are associated with the direct costs of measuring quality. A. B. C. D. E. Methods Appraisal Indigenous Prevention Process
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Answer: D Moderate
31.
Lab testing, inspection, test equipment and materials, losses due to destructive tests, and costs associated with assessment for ISO 9000 or other awards are examples of: A. B. C. D. E. methods costs deterrence costs prevention costs appraisal costs process costs
Answer: D Moderate
32.
__________ failure costs are those associated with on-line failure. A. B. C. D. E. Indigenous Domestic External Internal Spurious
Answer: C Moderate
33.
Failure after the customer takes possession of the product results in a(n) __________ failure cost. A. B. C. D. E. spurious indigenous external internal domestic
Answer: D Hard
34.
The Lundvall-Juran quality cost model is a model that states that: A. as quality increases, customer satisfaction increases B. as expenditures in inspection and control activities increase, quality conformance should increase C. as design and manufacturing costs increase, quality increases D. as expenditures in prevention and appraisal activities increase, quality conformance should increase E. as inspection costs increase, quality decreases
Answer: E Moderate
35.
If a product is marketed to a particular region, then the generic strategy in use is: A. quality B. cost C. deliverability D. flexibility E. focus
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Answer: D Moderate
36.
Which of the following is not an order winning criterion according to the Hill model? price quality delivery synthesis color range Using the planning framework developed by Terry Hill, a firm may first choose __________ as a corporate objective. A. quality B. growth C. function support D. product segments E. design leadership Prahalad and Hamel have identified the strategic concept of: A. B. C. D. E. core competence competitive advantage quality strategy quality control employee empowerment
Answer: B Hard
37.
Answer: A Moderate
38.
Answer: B Hard
39.
Using the Prahalad and Hamel definition of competency, quality: A. is a core competency for manufacturing firms but is not a core competency for service firms B. is probably not a core competency C. is a core competency for service firms but is not a core competency for manufacturing firms D. is a core competency for international firms but is not a core competency for strictly domestic firms E. is definitely a core competency
Answer: A Moderate
3901.
Using the law of _________________, quality costs can be modeled to show the tradeoffs between these costs.
B C D E
A diminishing marginal returns. regression toward the mean Occams Razor law of attraction law of accelerating returns.
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Answer: A Moderate
3901.
Using the law of diminishing marginal returns, quality costs can be modeled to show the tradeoffs between these costs. This tradeoff model, called the _____________ model A B C D E Kendall-Stuart . Joyner-Kersee Moseley-Braun Fawcett-Majors Lundvall-Juran
Answer: E Moderate
3902.
Using the law of diminishing marginal returns, quality costs can be modeled to show the tradeoffs between these costs. This tradeoff model, called the _____________ model A B C D E Kendall-Stuart . Harley-Davidson Moseley-Braun Fawcett-Majors Lundvall-Juran
Answer: D Moderate
3903.
Which of the following is not typically considered a differentiated prodoct A B C D E iPod . Harley-Davidson motorcycle Rolex watch generic MP3 player Neimann-Marcus item
Answer: C Moderate
3904.
In the context of quality management, the acronym OWC stands for _____ A B C D E obstacle warning cue Office of Workers Compensation Order Winning Criterion Owner Will Carry Operational Watch Commander
Answer: A Moderate
3905.
The key to the Hill model for strategic marketing planning is reaching consensus on the __________ A B C D E OWC LSD DOS SWF CAD
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Answer: A Easy
40.
__________ refers to the variables, definitions, components, and concepts that are included in the strategy. A. B. C. D. E. Content Process Capabilities Paradigm Procedure
Answer: A Moderate
41.
In the Forced Choice model, the organizations position is articulated by examining: major future programs major technological forces key government issues key regulatory issues broad economic assumptions In the Forced Choice model, the environmental assessment is completed by examining: forecast of operational needs explicit strategies of competitors statement of mission interrelated set of financial and nonfinancial objectives major future programs Which of the following statements in not true regarding the forced choice model? A. it is used simply for explanation purposes B. it is particularly useful for companies that are relatively inexperienced in strategic planning C. it is complicated when compared with other strategic planning models D. it is generic E. it is used by firms that are new to strategic planning
Answer: B Moderate
42.
Answer: C Hard
43.
Answer: D Hard
4301.
The forced-choice model is particularly useful for companies that are relatively __________________
A experienced in strategic planning B sophisticated in their use of information technology (IT) C unsophisticated in their use of information technology (IT)
D inexperienced in strategic planning
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Answer: E Moderate
44.
Hoshin is Japanese for: A. an agreement, a meeting-of-the-minds, a mutually acceptable proposal, or a mutually acceptable plan B. work, labor, toil, or effort C. quality, goodness, soundness, or feature D. a directive, an order, a request, or a plea E. a compass, a course, a policy, or a plan
Answer: D Hard
45.
Kanri refers to: A. B. C. D. E. quality control employee empowerment worker control management control quality conformance
Answer: A Hard
46.
__________ is the term used to describe the interactive nature of the Hoshin planning process. A. B. C. D. E. Catchball Kanri Taguchi Statistical process control Benchmarking
Answer: E Hard
47.
__________ involves reporting from teams and feedback from management. A. B. C. D. E. Hoshin Statistical process control Kanri Taguchi Catchball
Answer: A Hard
48.
Which two-step sequence is out of order for a typical Hoshin planning process? A. senior management develops 1-year Hoshin goals development of 3-5 years Hoshin B. product management develops 1-year Hoshin goals senior management action plans C. product management develops 1-year Hoshin goals product management action plans D. product management action plans review by senior management E. senior management action plans review by CEO
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Answer: C Moderate
49.
According to the textbook, results regarding the effects of quality on business results are: A. B. C. D. E. negative positive mixed positive for manufacturing firms and negative for service firms positive for service firms and negative for manufacturing firms
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Answer: D Hard
50.
There are two primary reasons that the results regarding the effects of quality on business results are mixed. The first reason is that there are many variables affecting profitability besides quality. The second reason is that: A. B. C. D. E. quality is unimportant in the minds of some customers quality is difficult to measure business results are difficult to measure many companies implement quality incorrectly some firms spend more on quality than they recoup in increased revenues
Answer: A Hard
51.
There are two primary reasons that the results regarding the effects of quality on business results are mixed. The first is that many companies implement quality incorrectly. The second is that: A. B. C. D. E. there are many variables affecting profitability besides quality quality is difficult to measure business results are difficult to measure companies control quality poorly some firms spend more on quality than they recoup in increase revenues
Answer: B Moderate
52.
It is expected that if the trend towards high-quality, low-priced goods continues, then the relationship between price and quality will: A. Increase B. Decrease C. Remain constant D. Reverse E. Amplify Dumping occurs when: A. producers sell products in a foreign country below the price they sell the same products at home B. producers sell products at below cost to improve market share and to kill competition C. producers sell low quality products D. producers wield monopolistic power to increase market share E. producers sell products at home below the price they sell the same products overseas
Answer: B Moderate
53.
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Answer: E Moderate
54.
According to your textbook, quality will tend to provide a competitive advantage relative to other competitors by allowing forms with a high quality strategy to: bypass traditional channels of distribution engage in non-traditional marketing methods produce new designs more slowly than competitors produce new designs more rapidly than competitors incur lower costs they can pass along to consumers The elimination of waste results in: lower quality higher price higher productivity higher cost none of these are true Each year, the National Institute of Standards and Technology (NIST), the administrator of the Baldrige award, touts the outstanding: A. employee relations of the winners B. stock performance of the winners C. market share of the winners D. management of the winners E. company cafeterias of the winners A US General Accounting Office study of 30 Baldrige winners found that quality: A. improved employee relations B. lowered costs C. increased customer satisfaction D. improved market share E. the survey found that all the above metrics improved The acronym TQEM (as described in the textbook) stands for: A. B. C. D. E. total quality environmental management total quality engineering and management total quality employee management total quality energy management total quality entertainment management
Answer: C Easy
55.
Answer: B Hard
56.
Answer: E Easy
57.
Answer: A Moderate
58.
Answer: C Hard
59.
Environmental friendliness does not include: A. waste management B. product integrity C. competitive analysis D. worker health E. government relations
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Answer: E Moderate
60.
__________ uses value analysis to identify the total costs of products from a worldwide perspective. A. B. C. D. E. Value-chain costing Inside-outside costing External-internal costing Force field costing Life cycle costing
Answer: C Moderate
6001.
Hoshin has been used in _________since the 1960s as a means of implementing policy A B C D E France the Phillipines Japan South Korea the South Pacific
Answer: E Moderate
6003.
A B C D E
Answer: D Moderate
6004.
In the context of the textbook, the acronym ERP stands for __________ A B C D E European Recovery Program Electronic Road Pricing Equity Risk Premium Enterprise Resource Planning External Review Panel
Answer: A Moderate
6005.
________________ Motors products of the early 1980s were given awards for outstanding design (e.g., the Renault Alliance). At the same time, these products were not well accepted by their customers, and the company went out of business
A B C D E American British French Yugoslavian German Democratic
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TRUE-FALSE QUESTIONS
STRATEGY CONTENT Answer: T Easy Answer: T Moderate Answer: F Easy Answer: T Easy Answer: T Easy Answer: F Moderate 61. 62. The two dimensions of strategic planning are content and process. W. Edwards Deming consistently stated that continuous quality improvement was a slow process that required commitment of resources and time. Strategic planning implies planning for the short term.
Much of the traditional approach to quality was reactive and after the fact.. A major study of best quality-related practices undertaken by Ernst and Young2 was critical of total quality management (TQM) programs for not providing bottom-line results.. Shigeo Shingo5 stated that 15 years were required for Toyota Motor Company to achieve significant improvement and that this time could be reduced to 10 years for competitors. According to Donald Wheeler, a quality expert, when goals such as these are set, one of three things will occur: 1. People will achieve the goals and incur positive results. 2. People will distort the data. 3. People will distort the system.
Answer: T Easy
6304.
LEADERSHIP FOR QUALITY Answer: T Easy Answer: F Moderate Answer: F Moderate Answer: T Moderate 64. 65. 66. 67. Leadership is a key strategic variable for quality management. Leadership is the process by which a leader influences a group to move toward the attainment of subordinate goals. The power of expertise is derived from the power to punish a follower for not following organizational rules or guidelines. Referent power is derived from personal charisma or charm.
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Answer: T Moderate Answer: T Moderate Answer: F Easy Answer: F Easy Answer: F Moderate Answer: T Moderate
Legitimate power is derived from the position an individual holds in an organization. Four important traits of effective leaders are knowledge, communication, planning, and vision. Commitment to quality is comfortably measured in quarters. John F. Kennedy was used as an example of reward power.
Leadership is the process by which a leader influences a group to move toward the attainment of contraordinate goals Professors are leaders in the classroom because they have knowledge that they are sharing with the students.
OTHER QUALITY RELATED ISSUES Answer: T Easy Answer: T Moderate Answer: T Moderate Answer: F Moderate Answer: T Moderate Answer: T Easy Answer: F Moderate Answer: T Moderate Answer: F Moderate Answer: F Moderate 71. 72. 73. 74. 75. 76. 77. 78. 79. 80. Quality is good ethics. The PAF paradigm translates quality costs into three broad categories, which are then subdivided into other categories. Prevention costs are those costs associated with preventing defects and imperfections from occurring. Failure costs are roughly categorized into two areas of costs: tangible failure costs in intangible failure costs. Internal failure costs are those associated with on-line failure External failure costs are associated with product failure after the production process. The Lundvall-Juran Quality Cost Model states that as expenditures in appraisal increase, quality conformance should decrease. Differentiation is achieved by a competitor if the consumer merely perceives the product or service is unique. Quality through focus may be achieved by focusing on one item that appeals to all consumers. An order winning criterion is simply the way for a company to place orders with suppliers.
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Answer: F Hard Answer: F Easy Answer: T Moderate Answer: F Hard Answer: T Moderate Answer: T Hard Answer: F Easy Answer: T Moderate Answer: T Moderate Answer: T Moderate Answer: T Moderate Answer: F Moderate
81. 82. 83. 84. 85. 86. 8601. 8602. 8603. 8604. 8605. 8606.
As with most things, core competencies diminish with use. The forced-choice model is useful only for companies that are seasoned strategic planners. Hoshin is Japanese for a compass, a course, a policy, or a plan. Kanri is the term used to describe the interactive nature of the Hoshin planning process. The term catchball refers to the interactive nature of the Hoshin planning process. Life cycle costing uses value analysis to identify the total costs of products from a worldwide perspective. Quality invariably leads to better business results. .
Deming proposed a theoretical basis for concluding that quality will pay off..
Many companies implement quality incorrectly The pricequality relationship becomes increasingly unclear when cultural differences in an international setting are considered. The pricequality relationship becomes increasingly unclear when cultural differences in an international setting are considered. Because of the possible relationship between pricing and low-cost structure, it is unlikley that quality will tend to provide a competitive advantage relative to other competitors by allowing firms with a high-quality strategy to incur lower costs they can pass along to the customers. NIST is the , the administrator of the Baldrige award. The acronym NIST stands for National Industrial Security Program
Answer: F Moderate
8607.
ESSAY QUESTIONS
Answer: Easy 87. Does quality lead to better business results? Answer: The effects of quality on business are mixed; some firms have been wildly successful with their quality efforts and others have been
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unsuccessful in gaining bottom-line results. W. Edwards Deming proposed the Deming Chain which indicates that quality will pay off. The two primary reasons for mixed results are that many variables other than quality affect profitability and that many companies implement quality incorrectly. Answer: Easy 88. What are content variables? Provide examples of the content variables that are considered in the strategic planning process? Answer: The content variables are the key considerations in the strategic plan itself. Content is often contrasted with process. Process variables are the key components of how a plan is devised. The content variables comprise the plan itself. Examples of key content variables in the context of quality planning are time, leadership, quality costs, generic strategies, order winners, and quality as a core competency. Answer: Moderate 89. What is the relationship between quality and ethics? Answer: As stated in the textbook, quality is not only good business, it is also good ethics. It is unethical to ship defective products knowingly to a customer. Reliable products and low defect rates reflect an ethical approach of managements care for its customers. Answer: Moderate 8901.
In developing its Excellence through Quality program, Ames initially benchmarked against Xerox. Is benchmarking against another companys quality program a good idea? What are the potential hazards and benefits involved?
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Answer: Hard
90.
What is the PAF paradigm? Describe the three broad categories that comprise the PAF paradigm. Answer: The PAF paradigm translates quality costs into three broad categories, which are then subdivided into other categories. The three categories are prevention, appraisal, and failure costs (hence, the acronym PAF) which are defined below: Prevention costs are those costs associated with preventing defects and imperfections from occurring. Appraisal costs are associated with the direct costs of measuring quality. Failure costs are roughly categorized into two areas of costs: internal failure costs and external failure costs. Internal failure costs are those associated with on-line failure while external failure costs are associated with product failure after the production process.
Answer Moderate
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What sort of consequences can ensue if management sets numeric goals for quality improvement? Answer: According to Donald Wheeler at the University of Tennessee, when numeric goals for quality improvement are set, one of three things will occur: 1. people will achieve the goals and incur positive results 2. people will distort the data 3. people will distort the system There are many practical examples that could be drawn from public policy, e.g., No Child Left Behind Act. This material is now included in the book so the students could be asked to give examples. Discuss the leadership of (President Bush, Senator Hillary Clinton,, etc) in terms of the quadrant model of the dimensions of leadership. Answer: The four quadrants include: 1. knowledge 2. communication 3. planning 4. vision To the extent that student responses are specific and knowledgeable, they would receive full points. Two students could have radically different opinions of President Bush and still get full points.
Answer Moderate
92
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