Chapter 12 1 Raymond Heading Team That Has Reached

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 12—Increasing Productivity and Quality

Chapt

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I n c r e

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P r o d u

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1. ________ is a measure of economic performance that compares how much is produced relative to

the resources used to produce it.

a. Re-engineering

b. Services

c. Total quality management

d. Productivity

e. Quality

Difficulty: 2 Page-Reference: 374

Question ID: 12-1-01 Skill: Knowledge

Objective: 12.1

2. Which of the following is the best description of quality?

a. A product’s fitness for use by consumers

b. How closely a product adheres to quality standards

c. A measurement of how much is produced relative to the resources used to produce the product or

service

d. The additional output in the current year compared to the output for the previous year

e. A measurement of how much is produced

Difficulty: 2 Page-Reference: 374

Question ID: 12-1-02 Skill: Comprehension

Objective: 12.1

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 12—Increasing Productivity and Quality

3. If a nation’s productivity drops as compared to competing nations, it will experience

a. low inflation.

b. a fall in its standard of living.

c. higher profits.

d. no loss of income.

e. increased wealth.

Difficulty: 1 Page-Reference: 374

Question ID: 12-1-03 Skill: Comprehension

Objective: 12.1

4. Which country has the highest economic output per hour?

a. Belgium

b. United States

c. Canada

d. Norway

e. Japan

Difficulty: 3 Page-Reference: 375

Question ID: 12-1-04 Skill: Knowledge

Objective: 12.1

5. Economic output per hour worked differs from nation to nation. This is due to all of the following

factors except

a. economic policies.

b. size of the nation.

c. human skills.

d. traditions.

e. natural resources.

Difficulty: 2 Page-Reference: 376

Question ID: 12-1-05 Skill: Comprehension

Objective: 12.1

6. According to Michael Porter, a Harvard University expert on international competitiveness,

Canada’s competitiveness is a concern because

a. Canada’s productivity is the lowest in the world.

b. we have been living off our rich diet of natural resources.

c. Canadian companies are only competitive due to the lower value of the Canadian dollar.

d. the quality of Canadian manufactured goods is low.

e. we don’t take advantage of the intellectual ability of our people.

Difficulty: 2 Page-Reference: 376

Question ID: 12-1-06 Skill: Knowledge

Objective: 12.1

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 12—Increasing Productivity and Quality

7. Which of the following would have the least interest in the productivity level of a Canadian business

firm?

a. A foreign firm not in direct competition with the firm

b. Employees of the firm

c. Investors

d. Union officials and members

e. Managers

Difficulty: 2 Page-Reference: 377

Question ID: 12-1-07 Skill: Comprehension

Objective: 12.1

8. Which of the following reflects the value of the resources used to create outputs?

a. Inputs

b. Quality

c. Outputs

d. Transformation

e. Productivity

Difficulty: 2 Page-Reference: 374

Question ID: 12-1-08 Skill: Knowledge

Objective: 12.1

9. Labour productivity of a country is calculated by dividing ________ by _________.

a. productivity; quality

b. GNP; the total number of workers

c. GDP; the total number of workers

d. inputs; outputs

e. outputs; inputs

Difficulty: 2 Page-Reference: 375

Question ID: 12-1-09 Skill: Knowledge

Objective: 12.1

10. If a country‘s labour force is 200 million people, and its GDP is $5 billion, what is labour

productivity?

a. $25.00

b. $1 billion

c. $700

d. $300

e. It is not possible to compute the answer from the information given.

Difficulty: 2 Page-Reference: 375

Question ID: 12-1-10 Skill: Application

Objective: 12.1

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 12—Increasing Productivity and Quality

11. Which of the following statements about productivity is correct?

a. Productivity does not vary much between countries.

b. It is difficult to compute productivity for different countries because of different industrial practices.

c. Additional wealth from higher productivity cannot be shared among workers.

d. Manufacturing productivity is higher than service productivity.

e. It is difficult to increase productivity in the service sector.

Difficulty: 2 Page-Reference: 377

Question ID: 12-1-11 Skill: Comprehension

Objective: 12.1

12. When a firm buys a new fleet of trucks, or a new state–of–the-art machine, this is likely to increase

________ productivity.

a. output

b. capital

c. labour

d. materials

e. motivational

Difficulty: 2 Page-Reference: 375

Question ID: 12-1-12 Skill: Comprehension

Objective: 12.1

13. Differences in labour productivity between nations is due to

a. differences in economic policies.

b. differences in traditions.

c. differences in technology and natural resources.

d. differences in human skills.

e. all of these cause differences in labour productivity.

Difficulty: 2 Page-Reference: 376

Question ID: 12-1-13 Skill: Knowledge

Objective: 12.1

14. Both productivity and quality improvements require

a. knowledge of current cost levels.

b. paying attention to customer needs.

c. total productivity ratios and quality/cost studies.

d. competitive product analysis.

e. statistical process control.

Difficulty: 2 Page-Reference: 374

Question ID: 12-1-14 Skill: Comprehension

Objective: 12.1

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 12—Increasing Productivity and Quality

15. Which of the following is correct with regard to the issue of productivity?

a. A 2011 OECD study showed that Singapore has the world’s highest productivity.

b. Countries do not have to worry about their productivity if they are not very involved in global trade.

c. Manufacturing productivity is higher than service productivity.

d. Industries do not differ much in terms of productivity.

e. All of these are correct.

Difficulty: 2 Page-Reference: 377

Question ID: 12-1-15 Skill: Comprehension

Objective: 12.1

16. In Michael Porter’s view, Canada will have to start emphasizing ________ if it hopes to be

successful in international markets.

a. hard work

b. innovation

c. growth

d. recycling

e. total quality management

Difficulty: 2 Page-Reference: 376

Question ID: 12-1-16 Skill: Knowledge

Objective: 12.1

17. Levels of productivity refer to

a. the “fitness” of a product for use by customers.

b. the dollar value of goods and services produced by each worker in a country.

c. profit or loss amounts by all industrial companies in a given country.

d. government estimates of the value of goods and services produced in a country.

e. comparisons with competitor countries.

Difficulty: 1 Page-Reference: 375

Question ID: 12-1-17 Skill: Comprehension

Objective: 12.1

18. The productivity of a business is important to

a. managers.

b. unions.

c. investors.

d. employees.

e. all of these.

Difficulty: 1 Page-Reference: 378

Question ID: 12-1-18 Skill: Knowledge

Objective: 12.2

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 12—Increasing Productivity and Quality

19. Which of the following is an advantage to a firm with increasing productivity?

a. Machine breakdowns will be less likely.

b. Raw materials will decline in price.

c. The firm can afford to pay workers higher wages without raising prices.

d. Workers will not want to unionize.

e. The standard of living of its employees will fall.

Difficulty: 2 Page-Reference: 378

Question ID: 12-1-19 Skill: Comprehension

Objective: 12.2

20. Which of the following is correct with regard to productivity?

a. Productivity does not vary much across different industries.

b. Productivity is not important to labour unions when they are negotiating a new collective

agreement, but it is important to investors.

c. Activities like web surfing, social networking, and water cooler conversations inhibit productivity.

d. Increased productivity allows companies to pay workers higher wages without raising prices to

consumers.

e. All of these statements are correct.

Difficulty: 2 Page-Reference: 378

Question ID: 12-1-20 Skill: Comprehension

Objective: 12.2

21. Who developed the first structured process for managing quality called the “Quality Trilogy”

(quality planning, quality control, and quality improvement)?

a. Malcolm Baldridge

b. Kaoru Ishikawa

c. Shoichiro Toyoda

d. Joseph Juran

e. W. Edwards Deming

Difficulty: 2 Page-Reference: 379

Question ID: 12-1-21 Skill: Knowledge

Objective: 12.3

22. ___________, which is used to help track down what is causing quality problems, is also known

as __________.

a. The Ishikawa diagram; the fishbone diagram

b. Total quality assurance; quality control

c. Company productivity; department productivity

d. Value-added analysis; statistical process control

e. Quality improvement; the quality circle

Difficulty: 2 Page-Reference: 378

Question ID: 12-1-22 Skill: Knowledge

Objective: 12.3

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 12—Increasing Productivity and Quality

23. “Fishbone diagrams” are designed to

a. show the steps in the production process.

b. measure the amount of process variation.

c. identify management steps for ensuring quality.

d. help teams of employees investigate and track down causes of quality problems in their work areas.

e. identify the inefficiency problems in the production process.

Difficulty: 2 Page-Reference: 379–380

Question ID: 12-1-23 Skill: Knowledge

Objective: 12.3

24. The starting point for total quality management is

a. quality ownership.

b. performance quality.

c. quality reliability.

d. customer focus.

e. value-added analysis.

Difficulty: 1 Page-Reference: 380

Question ID: 12-1-24 Skill: Knowledge

Objective: 12.3

25. TQM starts by focusing on which of the following parts of the business?

a. Employees

b. Customers

c. Suppliers

d. Competitors

e. Investors

Difficulty: 1 Page-Reference: 380

Question ID: 12-1-25 Skill: Knowledge

Objective: 12.3

26. In his annual motivational talk to his employees, CEO Marvin Garden stressed that no defects are

tolerable and that all employees are responsible for maintaining quality standards. Marvin was promoting

a. performance quality.

b. total quality management.

c. quality reliability.

d. quality ownership.

e. quality circles.

Difficulty: 1 Page-Reference: 380

Question ID: 12-1-26 Skill: Comprehension

Objective: 12.3

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 12—Increasing Productivity and Quality

27. With respect to the management of quality, which of the following is correct?

a. Performance quality may or may not be related to quality reliability in a product.

b. Separate quality control departments are necessary, but not sufficient for achieving the high quality

levels demanded by modern consumers.

c. Planning for quality should begin before products are designed.

d. Leading for quality means getting employees to accept quality ownership.

e. All of these statements are correct.

Difficulty: 1 Page-Reference: 380-383

Question ID: 12-1-27 Skill: Comprehension

Objective: 12.3

28. The consistency of product quality from one finished product to the next is

a. quality reliability.

b. quality control.

c. total quality management.

d. performance quality.

e. quality circles.

Difficulty: 1 Page-Reference: 382

Question ID: 12-1-28 Skill: Knowledge

Objective: 12.3

29. Maytag is able to get premium prices for its appliances because they are perceived as offering

more advanced features and longer life than competing brands. Maytag’s products demonstrate

a. quality control.

b. quality reliability.

c. quality ownership.

d. quality assurance.

e. performance quality.

Difficulty: 2 Page-Reference: 381

Question ID: 12-1-29 Skill: Comprehension

Objective: 12.3

30. Toyota’s reputation for producing very few “lemons” is an illustration of

a. quality reliability.

b. quality control.

c. quality assurance.

d. quality ownership.

e. performance quality.

Difficulty: 2 Page-Reference: 382

Question ID: 12-1-30 Skill: Comprehension

Objective: 12.3

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 12—Increasing Productivity and Quality

31. When Custom Research delivers 99 percent of its final research reports on time it is

demonstrating

a. performance quality.

b. quality reliability.

c. quality control.

d. quality assurance.

e. quality ownership.

Difficulty: 2 Page-Reference: 382

Question ID: 12-1-31 Skill: Comprehension

Objective: 12.3

32. When new versions of software include features not in previous editions, the vendors are

demonstrating

a. quality assurance.

b. quality ownership.

c. quality reliability.

d. quality control.

e. performance quality.

Difficulty: 2 Page-Reference: 381

Question ID: 12-1-32 Skill: Comprehension

Objective: 12.3

33. Which term captures the idea that quality belongs to each person who creates it while performing

a job?

a. Total quality management

b. Value added analysis

c. Employee empowerment

d. Competitive product analysis

e. Quality ownership

Difficulty: 1 Page-Reference: 382

Question ID: 12-1-33 Skill: Knowledge

Objective: 12.3

34. Which of the following is most effective for improving success in quality efforts?

a. Train quality inspectors in inspection techniques

b. Hire better trained and qualified employees

c. Establish a separate quality control department

d. Require quality inspectors to inspect every component of the product

e. Use statistical process control methods throughout the production process

Difficulty: 2 Page-Reference: 383-384

Question ID: 12-1-34 Skill: Comprehension

Objective: 12.3

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 12—Increasing Productivity and Quality

35. The process by which a company analyzes a competitor’s product to identify desirable

improvements in its own products is called

a. quality reliability analysis.

b. performance quality analysis.

c. quality/cost studies.

d. competitive product analysis.

e. benchmarking.

Difficulty: 1 Page-Reference: 383

Question ID: 12-1-35 Skill: Knowledge

Objective: 12.3

36. If Toshiba buys a Xerox copier and then takes it apart to determine how well Toshiba’s

components perform compared to Xerox‘s, this is an example of

a. statistical process control.

b. competitive market research.

c. process capability.

d. competitive product analysis.

e. quality ownership.

Difficulty: 2 Page-Reference: 383

Question ID: 12-1-36 Skill: Comprehension

Objective: 12.3

37. Which is the best description of competitive product analysis?

a. A company looks at all the competitors’ products and rates them on a scale of 1 to 10.

b. An independent testing service, such as Consumers‘ Union, is hired to test and rate a group of

competing products.

c. A competitor’s product is purchased, disassembled, and the components tested in order to

generate ideas for improving the quality of products.

d. An independent firm conducts consumer research in order to rate competing products.

e. It is the result of a consumer survey by the marketing department.

Difficulty: 2 Page-Reference: 383

Question ID: 12-1-37 Skill: Comprehension

Objective: 12.3

38. The evaluation of all work activities, materials flows, and paperwork to determine the value that

they add for customers is

a. value-added analysis.

b. quality/cost studies.

c. statistical process control.

d. getting closer to the customer.

e. benchmarking.

Difficulty: 1 Page-Reference: 383

Question ID: 12-1-38 Skill: Knowledge

Objective: 12.3

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 12—Increasing Productivity and Quality

39. When Hewlett-Packard simplified its contracts and reduced them from 20 pages to two pages, it

was engaging in

a. quality/cost studies.

b. statistical process control.

c. getting closer to the customer.

d. value-added analysis.

e. benchmarking.

Difficulty: 1 Page-Reference: 383

Question ID: 12-1-39 Skill: Comprehension

Objective: 12.3

40. The evaluation method that allows managers to analyze variations in a company’s production

activities to determine when adjustments are needed is called

a. internal failure analysis.

b. statistical process control.

c. quality circles.

d. upper/lower control limit analysis.

e. quality/cost study.

Difficulty: 1 Page-Reference: 383-384

Question ID: 12-1-40 Skill: Knowledge

Objective: 12.3

41. When analysts at Farbex spot-check the weight of samples at several points in the production

process, they are engaging in

a. value-added analysis.

b. quality/cost studies.

c. benchmarking.

d. statistical process control.

e. getting closer to the customer.

Difficulty: 1 Page-Reference: 383-384

Question ID: 12-1-41 Skill: Comprehension

Objective: 12.3

42. What is the purpose of statistical process control?

a. To analyze variations in department productivity

b. To analyze variations in department quality

c. To analyze variations in production data

d. To identify a firm’s current costs

e. To compare the firm against its key competitors

Difficulty: 1 Page-Reference: 383-384

Question ID: 12-1-42 Skill: Comprehension

Objective: 12.3

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 12—Increasing Productivity and Quality

43. George is developing information about the amount of variation in the production of electronic

components. He is doing

a. a value-added analysis.

b. benchmarking.

c. a quality study.

d. a process capability study.

e. a specification study.

Difficulty: 2 Page-Reference: 384

Question ID: 12-1-43 Skill: Comprehension

Objective: 12.3

44. What is the purpose of a process capability study?

a. To determine how the quality of the company’s products compares to the quality of its

competitors’ products

b. To provide information about variation in the company’s production processes

c. To determine how much value various work activities add for customers

d. To determine if work teams will improve quality

e. To determine whether the causes of product failures are internal or external

Difficulty: 3 Page-Reference: 384

Question ID: 12-1-44 Skill: Comprehension

Objective: 12.3

45. Louis is a production manager. How can he determine if production machinery is capable of

meeting the upper and lower specification limits?

a. Use control charts

b. Conduct a process capability study

c. Conduct competitive product analysis

d. Implement a quality circles program

e. Hire a marketing consultant

Difficulty: 2 Page-Reference: 384

Question ID: 12-1-45 Skill: Application

Objective: 12.3

46. Which of the following is correct with regard to setting the control limits for the control chart?

a. Control limits depend solely on statistical considerations.

b. Quality circles determine the control chart’s control limits.

c. The control chart is used to plot the result of individual units that were sampled.

d. The control limits are set at 5% higher than the specification limits.

e. The control limits are the same as the specification limits for individual units.

Difficulty: 3 Page-Reference: 384-385

Question ID: 12-1-46 Skill: Comprehension

Objective: 12.3

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 12—Increasing Productivity and Quality

47. Pauline is an operator monitoring a production process. Which one of the following should she

use during the production process to monitor quality of the product?

a. A process capability study

b. A control chart

c. Competitive product analysis

d. A pacing meter system

e. Quality circles

Difficulty: 1 Page-Reference: 384-385

Question ID: 12-1-47 Skill: Application

Objective: 12.3

48. Gerry is a production manager. If she wants to increase the uniformity of outputs by

understanding the sources of variation, she would use

a. statistical process control.

b. internal failure analysis.

c. quality/cost study.

d. quality circles.

e. upper/lower control limit analysis.

Difficulty: 1 Page-Reference: 383-384

Question ID: 12-1-48 Skill: Application

Objective: 12.3

49. Harry needs to receive accurate information about variation in the production process, so he

should do a

a. machine operator study.

b. measurement calibration.

c. process capability study.

d. benchmarking study.

e. control chart.

Difficulty: 1 Page-Reference: 384

Question ID: 12-1-49 Skill: Application

Objective: 12.3

50. A consultant who came to study the production process at Honey Nuggets Inc. determined the

accuracy of the upper and lower specification limits by

a. a process capability study.

b. a competitive product analysis.

c. instituting a quality circles program.

d. a triangulation process.

e. developing a control chart.

Difficulty: 2 Page-Reference: 384

Question ID: 12-1-50 Skill: Comprehension

Objective: 12.3

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 12—Increasing Productivity and Quality

51. Quality/cost studies show what a firm’s current costs are, and also reveal

a. areas that have the biggest cost-savings potential.

b. the limits of acceptable and unacceptable quality in production of a good or service.

c. how much quality will have to be achieved in order to meet consumer expectations.

d. how motivated employees are to build quality into products.

e. the level of quality that is currently being achieved.

Difficulty: 1 Page-Reference: 385

Question ID: 12-1-51 Skill: Comprehension

Objective: 12.3

52. Which term identifies the results of a quality/cost study that identified defective products that

reached customers?

a. External failures

b. Boundary-spanning failures

c. Six sigma

d. Internal failures

e. Quality circles

Difficulty: 1 Page-Reference: 385

Question ID: 12-1-52 Skill: Knowledge

Objective: 12.3

53. Which of the following is an internal failure that should be considered in a quality/cost study of

Honey Nuggets cereal?

a. How much the firm spends for appraising quality during production

b. Expenses incurred during production before bad products leave the plant

c. How much the firm spends to prevent production of defective products

d. Expenses incurred after bad products reach the consumer

e. All of these

Difficulty: 2 Page-Reference: 385

Question ID: 12-1-53 Skill: Comprehension

Objective: 12.3

54. Studies indicate that many manufacturers incur up to ________ percent of total costs for internal

failures.

a. 45

b. 33

c. 50

d. 40

e. 55

Difficulty: 2 Page-Reference: 385

Question ID: 12-1-54 Skill: Knowledge

Objective: 12.3

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 12—Increasing Productivity and Quality

55. All of the following are examples of an external failure except

a. refunds to customers.

b. transportation costs to return defective products.

c. factory recalls.

d. raw materials costs.

e. possible lawsuits.

Difficulty: 2 Page-Reference: 385

Question ID: 12-1-55 Skill: Comprehension

Objective: 12.3

56. The filling machine operator at Honey Nuggets weighs a box of cereal from the production line

every 15 minutes. Where is she likely to record the data?

a. Control charts

b. Benchmarking

c. Process capability studies

d. Value-added analysis

e. Quality/cost studies

Difficulty: 2 Page-Reference: 384-385

Question ID: 12-1-56 Skill: Comprehension

Objective: 12.3

57. At the Honey Nuggets factory, boxes are taken from each of three filling machines. Analyzing the

results show that one of the machines cannot reliably meet specification. Which tool is being used?

a. Value-added analysis

b. Control charts

c. Process capability studies

d. Quality/cost studies

e. Benchmarking

Difficulty: 2 Page-Reference: 384

Question ID: 12-1-57 Skill: Comprehension

Objective: 12.3

58. Ken is a production operator who plots a sample of the product output and finds that it is outside

the upper or lower specification limits on the control chart. What should he do?

a. Continue with production and analyze why the problem might be occurring

b. Do nothing; wait to see if the next sample is within the control limits

c. Tell co-workers “the sky is falling”!

d. Correct the problem (e.g., people, equipment, materials, or work methods)

e. Shut down the machine and have a manager investigate the problem

Difficulty: 3 Page-Reference: 384-385

Question ID: 12-1-58 Skill: Application

Objective: 12.3

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 12—Increasing Productivity and Quality

59. Roll-On Corp. regularly analyzes and applies the best practices of other companies to their own

operations. It is using

a. quality/cost analysis.

b. performance quality analysis.

c. benchmarking.

d. quality reliability analysis.

e. competitive product analysis.

Difficulty: 1 Page-Reference: 386

Question ID: 12-1-59 Skill: Comprehension

Objective: 12.3

60. Barden Corp. tracks its performance over time in order to evaluate progress and set goals for

improvement. It is using

a. quality improvement.

b. failure management.

c. process improvement.

d. external benchmarking.

e. internal benchmarking.

Difficulty: 2 Page-Reference: 386

Question ID: 12-1-60 Skill: Comprehension

Objective: 12.3

61. When Motorola wanted to reduce the time between receipt and delivery of a customer’s order for

cellular phones, it studied Domino’s Pizza procedures for delivery cycles. This is an example of

a. quality/cost studies.

b. benchmarking.

c. quality reliability analysis.

d. performance quality analysis.

e. competitive product analysis.

Difficulty: 2 Page-Reference: 386

Question ID: 12-1-61 Skill: Comprehension

Objective: 12.3

62. According to one expert, ” ________ are an economic asset. They’re not on the balance sheet,

but they should be.”

a. Quality employees

b. Capital goods

c. Quality improvement teams

d. Customers

e. Competent top management personnel

Difficulty: 3 Page-Reference: 386

Question ID: 12-1-62 Skill: Knowledge

Objective: 12.3

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 12—Increasing Productivity and Quality

63. The quality program that is being adopted by many multinational firms is

a. QC 2000.

b. ROQ.

c. ISO 9000.

d. IQS 8000.

e. TQM 2001.

Difficulty: 1 Page-Reference: 387

Question ID: 12-1-63 Skill: Knowledge

Objective: 12.4

64. ISO 9000:2000 certified businesses must

a. have documented procedures for each stage of production.

b. have no defects.

c. have strict quality controls.

d. produce a variety of quality goods.

e. be productive.

Difficulty: 3 Page-Reference: 387

Question ID: 12-1-64 Skill: Knowledge

Objective: 12.4

65. ISO 9000 standards allow firms to demonstrate that they follow documented procedures for all of

the following except

a. fixing product defects.

b. re-engineering.

c. testing products.

d. training workers.

e. keeping records.

Difficulty: 2 Page-Reference: 387

Question ID: 12-1-65 Skill: Comprehension

Objective: 12.4

66. For ISO 9000 certification, firms are required to demonstrate documented procedures for all of the

following except

a. testing products.

b. selecting vendors.

c. training workers.

d. fixing product defects.

e. keeping records.

Difficulty: 1 Page-Reference: 387

Question ID: 12-1-66 Skill: Comprehension

Objective: 12.4

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 12—Increasing Productivity and Quality

67. ISO 9000 is

a. the concept that all employees are valuable contributors to a firm’s business, and should be

entrusted with decisions regarding their work.

b. a program certifying that a factory, laboratory, or office has met the quality management standards

of the International Organization for Standardization.

c. the principle of looking at the supply chain as a whole in order to improve the overall flow through

the system.

d. a certification program attesting to the fact that a factory, laboratory, or office has improved

environmental performance.

e. the redesigning of business processes to improve performance, quality, and productivity.

Difficulty: 2 Page-Reference: 387

Question ID: 12-1-67 Skill: Knowledge

Objective: 12.4

68. In ISO 9000:2000, which of the following is not required for certification?

a. Proving that the company has sound financial practices

b. Documented procedures for testing products

c. Fixing product defects

d. Keeping records

e. Testing products

Difficulty: 2 Page-Reference: 387

Question ID: 12-1-68 Skill: Comprehension

Objective: 12.4

69. ISO 14000 is

a. the concept that all employees are valuable contributors to a firm’s business, and should be

entrusted with decisions regarding their work.

b. the redesigning of business processes to improve performance, quality, and productivity.

c. a program certifying that a factory, laboratory, or office has met the quality management standards

of the International Organization for Standardization.

d. a certification program attesting to the fact that a factory, laboratory, or office has improved

environmental performance.

e. the principle of looking at the supply chain as a whole in order to improve the overall flow through

the system.

Difficulty: 2 Page-Reference: 387

Question ID: 12-1-69 Skill: Knowledge

Objective: 12.4

70. The ISO 14000 certification program certifies for

a. quality improvement programs.

b. improvements in environmental performance.

c. government contracts.

d. access to advanced quality control techniques.

e. networking.

Difficulty: 2 Page-Reference: 387

Question ID: 12-1-70 Skill: Knowledge

Objective: 12.4

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 12—Increasing Productivity and Quality

71. Which of the following is an example of a business process?

a. Filing insurance claims for auto accidents

b. Inspecting property for termites

c. Receiving and storing materials

d. Billing patients for medical treatment

e. All of these

Difficulty: 2 Page-Reference: 387-388

Question ID: 12-1-71 Skill: Comprehension

Objective: 12.4

72. ________ focuses on improving both the quality and productivity of an organization’s operations.

a. ROQ

b. Reengineering

c. Back to Basics

d. Six Sigma

e. ISO 9000

Difficulty: 2 Page-Reference: 388

Question ID: 12-1-72 Skill: Knowledge

Objective: 12.4

73. Business process reengineering is

a. the principle of looking at the supply chain as a whole in order to improve the overall flow through

the system.

b. a program certifying that a factory, laboratory, or office has met the quality management standards

of the International Organization for Standardization.

c. a certification program attesting to the fact that a factory, laboratory, or office has improved

environmental performance.

d. the redesigning of business processes to improve performance, quality, and productivity.

e. the concept that all employees are valuable contributors to a firm’s business, and should be

entrusted with decisions regarding their work.

Difficulty: 2 Page-Reference: 388

Question ID: 12-1-73 Skill: Knowledge

Objective: 12.4

74. Wire Corp. recently started a re-engineering process. Their first step was to state a case for

action. What is the next step they should take?

a. Evaluate information and human resource requirements for re-engineering.

b. Understand the current process.

c. Identify the process for re-engineering.

d. Create a new process design.

e. Implement the re-engineered process.

Difficulty: 2 Page-Reference: 388

Question ID: 12-1-74 Skill: Application

Objective: 12.4

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 12—Increasing Productivity and Quality

75. As part of its re-engineering process, Wire Corp. has identified the process they will use for re-

engineering. What is the next step they should take?

a. Evaluate information and human resource requirements for re-engineering.

b. Understand the current process.

c. State a case for action.

d. Create a new process design.

e. Implement the re-engineered process.

Difficulty: 2 Page-Reference: 388

Question ID: 12-1-75 Skill: Application

Objective: 12.4

76. ________ is based on the desire to improve operations in order to produce goods and services at

the lowest possible cost, and at the highest value for the customer.

a. Back to Basics

b. ISO 9000

c. Six Sigma

d. ROQ

e. Re-engineering

Difficulty: 2 Page-Reference: 388

Question ID: 12-1-76 Skill: Knowledge

Objective: 12.4

77. The second step in the re-engineering process is to identify the process for re–engineering. Which

of the following best describes the activities during this phase?

a. Eliminate all waste work and apply the tools for process redesign to determine the best practices

for adding value to customers

b. Diagnose the current process to understand how it relates to other processes, and identify value-

adding steps versus wasteful steps in the current process

c. Show value that will be added for customers and for the company

d. Determine if the information technology exists for the re-engineered process and determine if the

organization culture is ready for the change

e. Determine which process, if changed, will yield best improvement, and determine how it might be

changed and at what cost

Difficulty: 2 Page-Reference: 388

Question ID: 12-1-77 Skill: Comprehension

Objective: 12.4

78. Raymond is heading a team that has reached the second step in the re-engineering process.

Which of the following are key resources that Raymond and his team will need at this stage of the

process?

a. Process flow analysis; process mapping

b. Information technology; business culture management

c. Teamwork; customer focus

d. Process analysis skills

e. Company vision statement; awareness of competitive status

Difficulty: 3 Page-Reference: 389

Question ID: 12-1-78 Skill: Application

Objective: 12.4