27) Business process reengineering is a tool for
A) expediting the redesign of existing products and shortening the design-to-market cycle.
B) radically redesigning and streamlining how an activity (workflow) is performed, by pulling
the pieces of strategy-critical activities out of different departments and unifying their
performance in a single department or cross-functional work group.
C) instituting total quality management.
D) making the most effective use of Six Sigma techniques.
E) the rapid redesign of an organization’s structure so as to quickly create organizational
competencies and capabilities.
28) Business process reengineering
A) involves radically redesigning and streamlining the workflow (typically enabled by cutting-
edge use of online technology and information systems), with the goal of achieving quantum
gains in performance of the activity.
B) is not a useful tool for streamlining a company’s work effort and moving it closer to
operational excellence.
C) is the major tool that ambidextrous organizations deploy to drive continuous improvement
efforts.
D) is typically cheaper and easier than using Six Sigma techniques to achieve the same cost
savings.
E) is a company’s best justification for eliminating all nonmonetary rewards and incentives for its
employees.
29) Total quality management (TQM)
A) entails creating a total quality culture that strives for continuously improving the performance
of every value chain activity and is driven by a philosophy of managing a set of business
practices: 100 percent accuracy in performing tasks (zero defects), involvement and
empowerment of employees at all levels, team-based work design, benchmarking, and total
customer satisfaction.
B) is a valuable tool for helping company managers identify what the best practice is for
performing a particular activity at a high level of quality.
C) works best when used in conjunction with Six Sigma quality control techniques.
D) is an excellent tool for reengineering business processes and making quantum gains in the
efficiency and effectiveness with which the processes are performed.
E) is a philosophy of doing things that aims at mistake-free management of a company’s entire
business.
30) Total quality management (TQM) emphasizes all of the following EXCEPT
A) a 100 percent accuracy in performing tasks.
B) the continuous improvement in all phases of operations.
C) the adoption of industry standard operating practices.
D) benchmarking and total customer satisfaction.
E) the empowerment of employees and team-based work design.
31) Why would Belinda, owner of GC Micro, a $70 million company that manufactures
customized IT equipment and software for Fortune 1000 companies and defense contractors,
decide to invest in a total quality management (TQM) program?
A) because a TQM program deals exclusively with procedures to achieve defect-free
manufacturing and assembly
B) because a TQM program nearly always contributes more to the achievement of operating
excellence than either business process reengineering or Six Sigma quality control techniques
C) because a TQM program entails creating a corporate culture bent on continuously improving
the performance of every task and every value chain activity
D) because TQM programs are considerably more effective in improving manufacturing and
assembly activities than they are in improving such value chain activities as R&D, human
resources management, supply chain management, information technology, sales, and marketing
and finance
E) because TQM programs are generally considered the best tool for reengineering strategy-
critical business processes
32) An erroneous justification to implement a total quality management (TQM) program is that
A) TQM aims at instilling enthusiasm and commitment to doing things right from the top to the
bottom of the organization.
B) TQM produces significant results very quickly, with very little benefit emerging after the first
six months.
C) TQM doctrine preaches that there’s no such thing as “good enough” and that everyone has a
responsibility to participate in continuous improvement.
D) TQM if used effectively can result in a corporate culture bent on continuously improving the
performance of every task and every value chain activity.
E) TQM emphasizes continuous improvement in all phases of operations, 100 percent accuracy
in performing tasks, involvement and empowerment of employees at all levels, team-based work
design, benchmarking, and total customer satisfaction.
33) Six Sigma programs
A) utilize advanced statistical methods to improve quality by reducing defects and variability in
the performance of business processes.
B) consist of a disciplined, statistics-based system aimed at producing not more than 2.5 defects
per million iterations for a manufacturing or assembly process.
C) are based on three principles: (1) all work is a statistically controllable process; (2) no well-
controlled process allows variability; and (3) defect-free work requires tight statistical controls.
D) suggest that all activities can be controlled, employee empowerment is the best control tool,
and 100 percent control is possible.
E) radically redesign and streamline how an activity is performed.
34) Six Sigma quality control
A) is a strategy implementer’s best, most reliable tool for simultaneously achieving top-notch
product quality and low manufacturing costs.
B) consists of a disciplined, statistics-based system aimed at producing not more than 2.5 defects
per million iterations for a manufacturing or assembly process.
C) consists of a disciplined, statistics-based system aimed at producing not more than 3.4 defects
per million iterations for any business process.
D) consists of a disciplined, statistics-based system aimed at fewer than 5.0 complaints per
million customer transactions.
E) is a powerful tool for companies whose customers are very picky about product quality and
product performance and who can’t afford for the product they use to break down and require
repairs.
35) Six Sigma processes
A) are based on three principles: (1) all work is a statistically controllable process; (2) no well-
controlled process allows variability; and (3) defect-free work requires tight statistical controls.
B) can be used for both improving existing business processes and for developing new processes
or products.
C) can be used for improving products or business processes but not for developing new
products or new processes.
D) consists of a disciplined, statistics-based system aimed at producing not more than 10 defects
per million iterations for a manufacturing or assembly process.
E) can be used for developing new products or new business processes but not for improving
existing products or business processes.
36) The Six Sigma process of define, measure, analyze, improve, and control (DMAIC) is a(n)
A) improvement system for existing processes falling below specification and needing
incremental improvement.
B) improvement system used to develop new processes or products at 100 percent defect-free
levels.
C) system of statistical procedures for achieving 100 percent control over how a task is
performed.
D) improvement system used to develop new processes or products at Six Sigma levels.
E) system of statistical procedures for eliminating 100 percent of the variability in how a task is
performed.
37) Six Sigma’s DMADV process of define, measure, analyze, design, and verify is a particularly
good vehicle for
A) improving performance when there are small variations in how well an activity is performed.
If there are wide variations, then the Six Sigma DMVSI process has to be used.
B) achieving 100 percent control over how a task is performed and eliminating 100 percent of
the variability in how a task is performed.
C) improving performance when there are wide variations in how well an activity is performed.
D) developing new processes or products at Six Sigma quality levels.
E) improving customer satisfaction, whereas Six Sigma improves manufacturing processes.
38) The statistical thinking underlying Six Sigma is based on which of the following three
principles?
A) All activities can be controlled, employee empowerment is the best control tool, and 100
percent control is possible.
B) All work is a process, all processes have variability, and all processes create data that explains
variability.
C) All work activities can be done accurately most of the time, empowered employees are
necessary for effective control, and good statistical data is an empowered employee’s best control
tool.
D) All work is a statistically controllable process, 100 percent control is possible, and every
well-controlled process is defect-free.
E) Most business processes are subject to control, Six Sigma can totally remove variability in
how processes are performed, and most defects can be eliminated.
39) Charleston Area Medical Center (CAMC) has implemented Six Sigma quality programs in
order to
A) improve the efficiency of numerous CAMC health care delivery operating processes,
although the downside is that using Six Sigma approach can stifle innovative activities.
B) manage a set of business practices that emphasizes continuous improvement in all phases of
CAMC’s operations and 100 percent accuracy in performing tasks order to control healthcare
costs.
C) improve the performance of CAMC’s heath care delivery services when there are only small
variations in how well an activity is performed.
D) focus on development of new health care delivery processes but not on improving existing
business processes at CAMC.
E) employ statistical procedures to eliminate 92 percent of the variability in how a task is
performed at CAMC
40) Lagunitas Brewing Company has successfully and methodically applied Six Sigma methods
to its value chain, activity by activity, so that the company can
A) clearly consider what it will take to overtake rivals with the industry’s overall best strategy.
B) make major strides in improving the proficiency with which its strategy is executed without
sacrificing innovation.
C) increase its bargaining power with suppliers and create better seller-supplier collaborations.
D) assess the extent to which rivals have competitively valuable competencies or capabilities.
E) construct a business model that entails a value proposition based on quality.
41) An ambidextrous organization is one that
A) pursues incremental improvements in operating efficiency, while R&D and other processes
that allow the company to develop new ways of offering value to customers are given freer rein.
B) is capable of using efficiency and effectiveness with equal skill.
C) is very skillful and versatile with operating activity.
D) is managed by employing continuous improvement in operating practices while managing
employees as a loosely integrated network of efficiency.
E) employs identical improvement methods for both operating processes and R&D.
42) The big difference between business process reengineering and continuous improvement
programs like TQM or Six Sigma is that
A) reengineering is a tool for installing process organization, whereas TQM/Six Sigma concern
defect-free production methods and delivering world-class customer service.
B) reengineering helps create core competencies, whereas TQM/Six Sigma are tools for making
a core competence stronger and more efficient.
C) reengineering is a tool for achieving one-time quantum improvement, whereas TQM and Six
Sigma programs aim at ongoing incremental improvements.
D) business process reengineering requires benchmarking, whereas TQM and Six Sigma do not.
E) reengineering represents an effort to totally revamp a firm’s value chain, whereas TQM looks
at incrementally improving the performance of two or three targeted value chain activities and
Six Sigma is primarily for reducing manufacturing defects.
43) To obtain maximum benefits from benchmarking, best practices, reengineering, TQM, and
Six Sigma programs aimed at facilitating better strategy execution, managers need to
A) start with a clear idea of what specific outcomes really matter, such as a Six Sigma defect rate
or superior customer satisfaction, and then build a total quality culture that is genuinely
committed to achieving these outcomes.
B) have annual contests to see which part of the company is making the greatest strides in
approaching operating excellence.
C) strive for 100 percent control over the variability in how each and every value chain activity
is performed.
D) have at least 50 percent of company personnel earn “green belts” in Six Sigma techniques.
E) build core competencies in TQM, Six Sigma, benchmarking, best practices adoption, and
business process reengineering.
44) Without a strategic framework, managers lack the context in which to
A) fix things that really matter to business-unit performance and competitive success.
B) carry out companywide goals related to the dynamics of a single business model.
C) employ the company’s resources in the pursuit of sustainable competitive advantage.
D) communicate aspirations for the company.
E) analyze the emerging market opportunities more precisely.
45) To build a total quality culture and achieve full value from the use of TQM or Six Sigma
initiatives, managers can take such action steps as
A) encouraging quality-supportive behaviors on the part of employees, while empowering
employees to make changes to improve quality.
B) requiring all employees to attend Six Sigma training programs and achieve “black belt” status.
C) instituting greater centralization of decision making to help enforce strict compliance with
quality control policies and procedures.
D) dismissing employees that do not want to be part of an ambidextrous organization.
E) using online systems to discover and disseminate any unethical actions by employees.
46) Although it is relatively easy for rivals to implement process management tools, it is much
more difficult and time-consuming for them to
A) instill a deeply ingrained culture of operating excellence.
B) keep employees well-informed about the strides being made with continuous improvement.
C) unify the managerial efforts behind improving operating practices as a commendable goal.
D) combine the pursuit of financial objectives with the pursuit of its strategic objectives.
E) understand the barriers to installing new operating activities.
47) Which of the following exemplifies one of the most widely used methods of gauging how
well a company is executing its strategy?
A) Merrill & Company has a disconnected organizational arrangement whereby pieces of an
activity are performed in different functional departments.
B) Oceania identifies agents of change who are convinced about sticking to the old ways of
doing things.
C) Honeywell narrates success stories of rival brands to convince its personnel about traditional
wisdom.
D) Fizz-Cola judges the efficiency of internal operations by benchmarking them against best-in–
industry performers.
E) Motorola develops the data to measure how poorly rival brands perform against the best-
practice standards across industry.
48) Which organization does NOT use business process reengineering?
A) Blue Mountain creates teams of mixed-occupation freelancers to design Christmas cards.
B) Speedmore integrates three distribution units to form a consolidated zonal distribution center.
C) Bank of America automates global transaction services in a quest for operational efficiencies.
D) PayPal segregates payment notification operations from mobile transfer operations to expand
its customer base.
E) Florida Power eliminates work depots, entrusting the task of repair to crew members in a
mobile van.
49) Which organization uses business process reengineering to attain operational excellence?
A) AT&T works toward creating a total quality culture by continuously reviewing the
performance of every value chain activity.
B) Acer Phones uses advanced statistical methods to remove the causes of defects at its
manufacturing units.
C) Ericsson introduces continuous-improvement business philosophy at its customer care
centers.
D) Cellkon pulls the pieces of an activity out of different departments to create a cross-functional
work group.
E) Honeywell strives to incrementally reduce defects through an ongoing assessment process.
50) Which organization uses Six Sigma programs to improve quality and strategy execution?
A) Memphis & Company applies advanced statistical methods to identify and remove the causes
of defects.
B) Froedtert Hospital improves the accuracy of administering the proper drug doses to patients.
C) LG Electronics reengineers its value chain activities by creating cross-functional teams.
D) La Tagliata Boutiques offers a different range of products at different outlets across London.
E) Amtrak replaces train repair facility in Beech Grove, Indiana with mobile repair vans to cut
operational costs by 40 percent.
51) There is evidence that Six Sigma can
A) take longer than TQM to demonstrate significant results.
B) stifle innovation and creativity in organizations.
C) help managers run a tight ship and preserve strong, centralized control over internal activities.
D) provide ample justification for becoming an ambidextrous organization.
E) foster decentralized decision making and employee empowerment.
52) Well-conceived, state-of-the-art information and operating systems
A) are essential because business process reengineering efforts, TQM, Six Sigma, and
benchmarking programs can’t be carried out effectively without them.
B) not only enable better strategy execution but also strengthen organizational capabilities
(perhaps enough to provide a competitive edge over rivals).
C) make it simple and easy to spot cost overruns and inefficiencies.
D) are valuable tools for shortening a company’s value chain, boosting workforce morale and
productivity, and simplifying the task of adopting best practices.
E) help managers run a tight ship and preserve strong, centralized control over internal activities.
53) Internal information business systems generally DO NOT track ________ data.
A) financial performance
B) supplier/strategic partner
C) customer
D) operations
E) competitor
54) The broad areas that internal information business systems need to cover include all of the
following EXCEPT
A) financial performance data.
B) corporate culture data.
C) customer data.
D) operations data.
E) employee data.
55) Information systems provide managers with a means for monitoring all of the following
EXCEPT
A) the results that flow from the actions of subordinates.
B) the performance of empowered workers.
C) weekly operating statistics.
D) employees with over-the-shoulder supervision.
E) daily operating statistics.