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CHAPTER 4 STRATEGIC QUALITY PLANNING MULTIPLE-CHOICE QUESTIONS STRATEGY CONTENT Answer: A Easy 1. Strategic planning has two important dimensions. These are: A. analysis and synthesis B. implementation and control C. strategic and routine D. proactive and standardized E. content and process Answer: D Easy 2. Strategic plan __________ answers the question of what is to be contained in the strategic plan. A. process B. method C. operation D. content E. standardization Answer: E Moderate 3. Which of the following is not an example of a strategic content variable? A. time B. leadership C. quality costs D. generic strategies E. planning Answer: C Hard 4. A comprehensive study by the United States General Accounting Office stated that, on

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Page 1: Foster4 Tif Ch04

CHAPTER 4

STRATEGIC QUALITY PLANNING

MULTIPLE-CHOICE QUESTIONS

STRATEGY CONTENT

Answer: AEasy

1. Strategic planning has two important dimensions. These are:

A. analysis and synthesisB. implementation and controlC. strategic and routineD. proactive and standardizedE. content and process

Answer: DEasy

2. Strategic plan __________ answers the question of what is to be contained in the strategic plan.

A. processB. methodC. operationD. contentE. standardization

Answer: EModerate

3. Which of the following is not an example of a strategic content variable?

A. timeB. leadership C. quality costsD. generic strategiesE. planning

Answer: CHard

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. six monthsB. 1 yearC. 3.5 yearsD. 5 yearsE. 7 years

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Chapter 4: Strategic Quality Planning

Answer: CModerate

5. Strategic planning implies planning for:

A. the short termB. the intermediate termC. the long termD. the short term in manufacturing and the long term in servicesE. the short term in services and the long term in manufacturing

Answer: DModerate

5-01. A comprehensive study by the U.S. General Accounting Office3

stated that, on average, ____ years were required for companies to begin to see significant results from quality improvement programs.

A 2.0 B 2.5 C 3.0 D 3.5E 4.0

Answer: AModerate

5-02. The plan–do–check–act cycle is associated with _____________.

A W. E. Deming B Walter Shewhart C Joseph Jurand D Armand FeigenbaumE Kaoru Ishakawa

Answer: DModerate

5-03. The text book used cheating on “No Child Left Behind” exams as an example of _____________.

A synergism B autocorrelation C syncretism D distortion of the dataE synthetic division

LEADERSHIP FOR QUALITY

Answer: AEasy

6. __________ is the process by which a leader influences a group to move toward the attainment of superordinate goals.

A. LeadershipB. EmpowermentC. PlanningD. OrganizingE. Controlling

Answer: DModerate

7. __________ goals are those goals that pertain to achieving a higher end that benefits not just the individual, but the group.

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Chapter 4: Strategic Quality Planning

A. SubstantiveB. DeterministicC. Empowerment-relatedD. Superordinate E. Hierarchical

Answer: AModerate

8. Which type of power is derived from the possession of special knowledge (or the assumption that a person has special knowledge)?

A. power of expertiseB. reward powerC. coercive powerD. referent powerE. legitimate power

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Answer: CModerate

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. coercive powerB. legitimate powerC. reward powerD. power of expertiseE. referent power

Answer: DModerate

10. What type of power is derived from the ability to punish followers for not following rules or guidelines?

A. power of expertiseB. referent powerC. legitimate powerD. coercive powerE. reward power

Answer: BModerate

11. The use of __________ power tends to cause followers to rebel and try to even the power relationship?

A. reward B. coercive C. legitimate D. the power of expertiseE. referent

Answer: AModerate

12. What type of power is derived from an individual’s personal charisma or charm?

A. referent powerB. coercive powerC. power of expertiseD. legitimate powerE. reward power

Answer: BModerate

13. A case of __________ power is the mentor who is admired by his or her protegees who want to be like the mentor.

A. rewardB. referentC. legitimateD. coerciveE. power of expertise

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Chapter 4: Strategic Quality Planning

Answer: EModerate

14. What type of power is derived from the position an individual holds in an organization?

A. power of expertiseB. coerciveC. referentD. rewardE. legitimate

Answer: EModerate

14-01.

Which one of the following is not a function of a quality leader

A organizeB plan and control C communicatesD teachesE analyze

LEADERSHIP DIMENSIONS

Answer: BModerate

15. The __________ dimension of leadership deals with such variables as height, productivity, and intelligence.

A. skillsB. traitC. behavioralD. cognitiveE. indigenous

Answer: EModerate

16. Which of the following selections is not a leadership “skill?”

A. knowledgeB. communicationC. planning D. visionE. intelligence

Answer: BModerate

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. skillsB. behaviorC. traitD. characteristicE. qualities

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Answer: BModerate

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. disintegrationB. attrition C. downsizingD. rightsizing E. erosion

Answer: DModerate

19. A commitment to quality by top management can be demonstrated by:A. attritionB. venuesC. CRID. fundingE. slogans

Answer: CModerate

20. The leader skill of communication includes this task:A. decision makingB. evaluation skillsC. conflict managementD. task managementE. time management

Answer: BHard

21. Nothing can damage a quality improvement effort faster than:A. increased pressure from outside competitionB. management’s failure to consider implementing employees’

recommended changesC. increase in the amount of slack time availableD. resources dedicated to the quality improvement effortE. rapid changes in technology

Answer: AHard

22. Commitment to quality means that leaders provide funding, slack time, and resources for quality improvements to be successful. This commitment is appropriately measured:

A. in decadesB. in quartersC. in budget-cyclesD. annuallyE. semiannually

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Answer: AModerate

22-01.

The textbook list ____ quadrants of leadership skills.

A 2B 3C 4D 5E 6

Answer: AModerate

22-02.

Nothing can damage a quality improvement effort faster than management’s failure to consider ._________________

A implementing changes that employees recommend.:B an appropriate reward systemC meeting times during working hoursD Pareto analysisE semi-annual reviews

Answer: AModerate

22-03.

Acceptance of diversity is in ____________

A Quadrant 1 : knowledgeB Quadrant 2: communicationC Quadrant 3: planningD Quadrant 4: visionE none of the above

Answer: BModerate

22-04.

Conflict management is in ____________

A Quadrant 1 : knowledgeB Quadrant 2: communicationC Quadrant 3: planningD Quadrant 4: visionE none of the above

Answer: CModerate

22-04.

Decision making is in ____________

A Quadrant 1 : knowledgeB Quadrant 2: communicationC Quadrant 3: planningD Quadrant 4: visionE none of the above

Answer: DModerate

22-05.

Identifying opportunities is in ____________

A Quadrant 1 : knowledgeB Quadrant 2: communicationC Quadrant 3: planningD Quadrant 4: vision

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E none of the above

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QUALITY AND ETHICS

Answer: EModerate

23. An unethical approach by management would be reflected by:A. reliable productsB. low defect ratesC. qualityD. valuing employeesE. none of the above are unethical

Answer: CModerate

24. It has been said that the entire US economy is based on one simple principle:A. Just do itB. The Pareto principleC. When I give you a check, there are funds sufficient in my account

to cover itD. He who has the gold, makes the rulesE. None of the above are correct

Answer: CModerate

24-01 .

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 of __________

A. the Pareto PrincipleB. the importance of financial planningC. ethicsD. the Golden Rule, that it, He who has the gold, makes the rulesE. the Decalogue

Answer: CModerate

24-02 .

Supporting a program of continuous improvement requires the development of an appropriate

A. bottom lineB. entrepreneurship programC. cultureD. benchmarking programE. commission sales program

QUALITY AS STRATEGY

Answer: AModerate

25. The three generic strategies are:

A. cost, differentiation, and focusB. manufacturing prowess, service quality, and durabilityC. cost, quality, and serviceD. differentiation, specialization, and customizationE. focus, breadth, and low-cost

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Answer: EModerate

26. There are two broad categories of quality costs, namely:

A. production costs and service costsB. design costs and control costsC. inspection costs and manufacturing costsD. 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: EModerate

26-01.

Life cycle costs are:

A costs associated with employee wellness programsB costs associated with employee stage in lifeC 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: BModerate

26-02.

In the context of quality, the acronym PAF stands for __________

A platelet activating factorB prevention, appraisal, failureC performance assessment framework D Project Air Force E postal address file

Answer: DModerate

26-03.

Which one of the following is considered a prevention cost?

A trainingB product quality audits C set up for quality tests D laboratory acceptance testingE on site performance tests.

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PAF PARADIGM AND OTHER QUALITY-RELATED ISSUES

Answer: CModerate

27. The PAF paradigm translates quality costs into three broad categories, which are then subdivided into other categories. The three categories are:

A. price, appraisal, and facility costsB. process, attitude, and failure costsC. prevention, appraisal, and failure costsD. procedures, attention, and failure costsE. process, appraisal, and facility costs

Answer: CModerate

28. __________ costs are those costs associated with preventing defects and imperfections from occurring.

A. ProcessB. ProcedureC. PreventionD. IndigenousE. Spurious

Answer: AModerate

29. Costs such as training, quality planning, process engineering and other costs associated with quality beforehand are referred to as:

A. prevention costsB. process costsC. procedure costsD. methods costsE. indigenous costs

Answer: BModerate

30. __________ costs are associated with the direct costs of measuring quality.

A. MethodsB. AppraisalC. IndigenousD. PreventionE. Process

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Answer: DModerate

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. methods costsB. deterrence costsC. prevention costsD. appraisal costsE. process costs

Answer: DModerate

32. __________ failure costs are those associated with on-line failure.

A. IndigenousB. DomesticC. ExternalD. InternalE. Spurious

Answer: CModerate

33. Failure after the customer takes possession of the product results in a(n) __________ failure cost.

A. spuriousB. indigenousC. externalD. internalE. domestic

Answer: DHard

34. The Lundvall-Juran quality cost model is a model that states that:

A. as quality increases, customer satisfaction increasesB. as expenditures in inspection and control activities increase, quality

conformance should increaseC. as design and manufacturing costs increase, quality increasesD. as expenditures in prevention and appraisal activities increase,

quality conformance should increaseE. as inspection costs increase, quality decreases

Answer: EModerate

35. If a product is marketed to a particular region, then the generic strategy in use is:A. qualityB. costC. deliverabilityD. flexibilityE. focus

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Answer: DModerate

36. Which of the following is not an order winning criterion according to the Hill model?A. priceB. qualityC. deliveryD. synthesisE. color range

Answer: BHard

37. Using the planning framework developed by Terry Hill, a firm may first choose __________ as a corporate objective.A. qualityB. growthC. function supportD. product segmentsE. design leadership

Answer: AModerate

38. Prahalad and Hamel have identified the strategic concept of:

A. core competenceB. competitive advantageC. quality strategyD. quality controlE. employee empowerment

Answer: BHard

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 competencyC. is a core competency for service firms but is not a core competency

for manufacturing firmsD. is a core competency for international firms but is not a core

competency for strictly domestic firmsE. is definitely a core competency

Answer: AModerate

39-01.

Using the law of _________________, quality costs can be modeledto show the tradeoffs between these costs.

A diminishing marginal returns. B regression toward the meanC Occam’s RazorD law of attractionE law of accelerating returns.

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Answer: AModerate

39-01.

Using the law of diminishing marginal returns, quality costs can be modeledto show the tradeoffs between these costs. This tradeoff model, called the_____________ model

A Kendall-Stuart . B Joyner-KerseeC Moseley-BraunD Fawcett-MajorsE Lundvall-Juran

Answer: EModerate

39-02.

Using the law of diminishing marginal returns, quality costs can be modeledto show the tradeoffs between these costs. This tradeoff model, called the_____________ model

A Kendall-Stuart . B Harley-DavidsonC Moseley-BraunD Fawcett-MajorsE Lundvall-Juran

Answer: DModerate

39-03.

Which of the following is not typically considered a differentiated prodoct

A iPod . B Harley-Davidson motorcycleC Rolex watchD generic MP3 playerE Neimann-Marcus item

Answer: CModerate

39-04.

In the context of quality management, the acronym OWC stands for _____

A obstacle warning cue B Office of Workers’ CompensationC Order Winning CriterionD Owner Will CarryE Operational Watch Commander

Answer: AModerate

39-05.

The key to the Hill model for strategic marketing planning is reaching consensus on the __________

A OWC B LSDC DOSD SWFE CAD

QUALITY STRATEGY PROCESS

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Answer: AEasy

40. __________ refers to the variables, definitions, components, and concepts that are included in the strategy.

A. ContentB. ProcessC. CapabilitiesD. ParadigmE. Procedure

Answer: AModerate

41. In the Forced Choice model, the organization’s position is articulated by examining:A. major future programsB. major technological forcesC. key government issuesD. key regulatory issuesE. broad economic assumptions

Answer: BModerate

42. In the Forced Choice model, the environmental assessment is completed by examining:A. forecast of operational needsB. explicit strategies of competitorsC. statement of missionD. interrelated set of financial and nonfinancial objectivesE. major future programs

Answer: CHard

43. Which of the following statements in not true regarding the forced choice model?

A. it is used simply for explanation purposesB. it is particularly useful for companies that are relatively

inexperienced in strategic planningC. it is complicated when compared with other strategic planning

modelsD. it is generic E. it is used by firms that are new to strategic planning

Answer: DHard

43-01.

The forced-choice model is particularly useful for companies that arerelatively __________________

A experienced in strategic planningB sophisticated in their use of information technology (IT)C unsophisticated in their use of information technology (IT)D inexperienced in strategic planning E experienced users of Hoshin planning

DEPLOYING QUALITY (HOSHIN KANRI)

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Answer: EModerate

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 effortC. quality, goodness, soundness, or featureD. a directive, an order, a request, or a plea E. a compass, a course, a policy, or a plan

Answer: DHard

45. Kanri refers to:

A. quality controlB. employee empowermentC. worker controlD. management controlE. quality conformance

Answer: AHard

46. __________ is the term used to describe the interactive nature of the Hoshin planning process.

A. CatchballB. KanriC. TaguchiD. Statistical process controlE. Benchmarking

Answer: EHard

47. __________ involves reporting from teams and feedback from management.

A. HoshinB. Statistical process controlC. KanriD. TaguchiE. Catchball

Answer: AHard

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 HoshinB. product management develops 1-year Hoshin goals – senior

management action plansC. product management develops 1-year Hoshin goals – product

management action plansD. product management action plans – review by senior

management

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E. senior management action plans – review by CEO

Answer: CModerate

49. According to the textbook, results regarding the effects of quality on business results are:

A. negativeB. positiveC. mixedD. positive for manufacturing firms and negative for service firmsE. positive for service firms and negative for manufacturing firms

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Answer: DHard

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. quality is unimportant in the minds of some customersB. quality is difficult to measureC. business results are difficult to measureD. many companies implement quality incorrectlyE. some firms spend more on quality than they recoup in increased

revenues

Answer: AHard

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. there are many variables affecting profitability besides qualityB. quality is difficult to measureC. business results are difficult to measureD. companies control quality poorlyE. some firms spend more on quality than they recoup in increase

revenues

Answer: BModerate

52. It is expected that if the trend towards high-quality, low-priced goods continues, then the relationship between price and quality will:A. IncreaseB. DecreaseC. Remain constantD. ReverseE. Amplify

Answer: BModerate

53. 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 productsD. producers wield monopolistic power to increase market share E. producers sell products at home below the price they sell the same

products overseas

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Answer: EModerate

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:A. bypass traditional channels of distributionB. engage in non-traditional marketing methodsC. produce new designs more slowly than competitorsD. produce new designs more rapidly than competitorsE. incur lower costs they can pass along to consumers

Answer: CEasy

55. The elimination of waste results in:A. lower qualityB. higher priceC. higher productivityD. higher costE. none of these are true

Answer: BHard

56. Each year, the National Institute of Standards and Technology (NIST), the administrator of the Baldrige award, touts the outstanding:A. employee relations of the winnersB. stock performance of the winnersC. market share of the winnersD. management of the winnersE. company cafeterias of the winners

Answer: EEasy

57. A US General Accounting Office study of 30 Baldrige winners found that quality:A. improved employee relationsB. lowered costsC. increased customer satisfactionD. improved market shareE. the survey found that all the above metrics improved

Answer: AModerate

58. The acronym TQEM (as described in the textbook) stands for:

A. total quality environmental managementB. total quality engineering and managementC. total quality employee managementD. total quality energy managementE. total quality entertainment management

Answer: CHard

59. Environmental friendliness does not include:A. waste managementB. product integrityC. competitive analysisD. worker healthE. government relations

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Answer: EModerate

60. __________ uses value analysis to identify the total costs of products from a worldwide perspective.

A. Value-chain costingB. Inside-outside costingC. External-internal costingD. Force field costingE. Life cycle costing

Answer: CModerate

60-01.

Hoshin is _______________for a compass, a course, a policy, or a plan..

A French B TagalogC JapaneseD KoreanE Pidgin

Answer: CModerate

60-02.

Hoshin has been used in _________since the 1960s as a means of implementing policy

A FranceB the PhillipinesC JapanD South KoreaE the South Pacific

Answer: EModerate

60-03.

Hoshin plans are ___________ plans for corporate objectives.

A marketingB financial plansC technologyD human resourcesE deployment

Answer: DModerate

60-04.

In the context of the textbook, the acronym ERP stands for __________

A European Recovery Program B Electronic Road PricingC Equity Risk PremiumD Enterprise Resource PlanningE External Review Panel

Answer: AModerate

60-05.

________________ 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 American B BritishC French D YugoslavianE German Democratic

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TRUE-FALSE QUESTIONS

STRATEGY CONTENT

Answer: TEasy

61. The two dimensions of strategic planning are content and process.

Answer: TModerate

62. W. Edwards Deming consistently stated that continuous quality improvement was a slow process that required commitment of resources and time.

Answer: FEasy

63. Strategic planning implies planning for the short term.

Answer: TEasy

63-01 .

Much of the traditional approach to quality was reactive and after the fact..

Answer: TEasy

63-02.

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..

Answer: FModerate

63-03.

Shigeo Shingo5 stated that 15 years were required for Toyota Motor Company toachieve significant improvement and that this time could be reduced to10 years for competitors.

Answer: TEasy

63-04.

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.

LEADERSHIP FOR QUALITY

Answer: TEasy

64. Leadership is a key strategic variable for quality management.

Answer: FModerate

65. Leadership is the process by which a leader influences a group to move toward the attainment of subordinate goals.

Answer: FModerate

66. The power of expertise is derived from the power to punish a follower for not following organizational rules or guidelines.

Answer: TModerate

67. Referent power is derived from personal charisma or charm.

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Answer: TModerate

68. Legitimate power is derived from the position an individual holds in an organization.

Answer: TModerate

69. Four important traits of effective leaders are knowledge, communication, planning, and vision.

Answer: FEasy

70. Commitment to quality is comfortably measured in quarters.

Answer: FEasy

70-01.

John F. Kennedy was used as an example of reward power.

Answer: FModerate

70-02.

Leadership is the process by which a leader influences a group to movetoward the attainment of contraordinate goals

Answer: TModerate

70-03.

Professors are leaders in the classroom because they have knowledge that they are sharing with the students.

OTHER QUALITY RELATED ISSUES

Answer: TEasy

71. Quality is good ethics.

Answer: TModerate

72. The PAF paradigm translates quality costs into three broad categories, which are then subdivided into other categories.

Answer: TModerate

73. Prevention costs are those costs associated with preventing defects and imperfections from occurring.

Answer: FModerate

74. Failure costs are roughly categorized into two areas of costs: tangible failure costs in intangible failure costs.

Answer: TModerate

75. Internal failure costs are those associated with on-line failure

Answer: TEasy

76. External failure costs are associated with product failure after the production process.

Answer: FModerate

77. The Lundvall-Juran Quality Cost Model states that as expenditures in appraisal increase, quality conformance should decrease.

Answer: TModerate

78. Differentiation is achieved by a competitor if the consumer merely perceives the product or service is unique.

Answer: FModerate

79. Quality through focus may be achieved by focusing on one item that appeals to all consumers.

Answer: FModerate

80. An order winning criterion is simply the way for a company to place orders with suppliers.

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Answer: FHard

81. As with most things, core competencies diminish with use.

Answer: FEasy

82. The forced-choice model is useful only for companies that are seasoned strategic planners.

Answer: TModerate

83. Hoshin is Japanese for a compass, a course, a policy, or a plan.

Answer: FHard

84. Kanri is the term used to describe the interactive nature of the Hoshin planning process.

Answer: TModerate

85. The term “catchball” refers to the interactive nature of the Hoshin planning process.

Answer: THard

86. Life cycle costing uses value analysis to identify the total costs of products from a worldwide perspective.

Answer: FEasy

86-01.

Quality invariably leads to better business results. .

Answer: TModerate

86-02.

Deming proposed a theoretical basis for concluding that quality will pay off..

Answer: TModerate

86-03.

Many companies implement quality incorrectly

Answer: TModerate

86-04.

The price–quality relationship becomes increasingly unclear when cultural differences in an international setting are considered.

Answer: TModerate

86-05.

The price–quality relationship becomes increasingly unclear when cultural differences in an international setting are considered.

Answer: FModerate

86-06.

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.

Answer: FModerate

86-07.

NIST is the , the administrator of the Baldrige award. The acronym NIST stands for National Industrial Security Program

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 management’s care for its customers.

Answer: Moderate

89-01.

In developing its Excellence through Quality program, Ames initially benchmarkedagainst Xerox. Is benchmarking against another company’s quality programa good idea? What are the potential hazards and benefits involved?

Answer: . By benchmarking with other firms and competitors, we learn the voice of the market. To stay ahead, a firm must know what is happening around it. This provides a logical progression from average, to market leader, to world-class firm.

The cultural changes at Ames were profound: Involvement (self-managed) groups. Typically leadership is

democratically elected Cost of quality means significant changes in the cost

accounting system and more sharing of information “yield improvement teams” Pareto thinking, focusing on “low

hanging fruit” change the firm’s decision making process Management subject to the scrutiny of periodic operations

and strategy reviews Extensive training of employees means more and better

critical thinking Egalitarian philosophy changes day-to-day interaction among

associates and managers

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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.

AnswerModerate

91 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 results2. people will distort the data3. 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.

AnswerModerate

92 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. knowledge2. communication3. planning4. 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.

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