Exam 19: Balanced Scorecard: Quality and Time

Without financial quality measures,________.

Cost of quality financial measures will usually deteriorate when nonfinancial measures of quality are emphasized and improved.

Which of the following is a financial measure of quality?

Revenue gains or price increases from fewer delays is a financial measure to increase the output of bottlenecks.

In the formula for calculating the average waiting time,the squared manufacturing time indicates ________.

Which of the following is an internal-business-process measure to study the output during bottleneck situations?

The time from which a machine setup begins for an order until the product is delivered to the customer is the ________.

The two basic aspects of quality are quality of design and conformance quality.Define and give an example of each.

An example of a financial measure of customer satisfaction would be the percentage of products that fail soon after delivery.

The amount of time from when an order is ready to start on the production line to when it becomes a finished good is referred to as ________.

Conformance quality ________.

One of the most direct financial measures of quality is the costs of quality.

The financial cost of quality measures serves as a common denominator for evaluating trade-offs among prevention costs and failure costs.

In successful quality programs,companies decrease costs of quality and,in particular,internal and external failure costs as a percentage of revenues.

Customer response time is the time it takes from the time a customer places an order for a product or service to the time the product or service is delivered to the customer.

From a balanced scorecard perspective,average reduction in setup time and processing time at bottleneck operations is an example of ________.

Answer the following questions using the information below: Cysco Corp has a budget of $1,200,000 in 2015 for prevention costs. If it decides to automate a portion of its prevention activities, it will save $100,000 in variable costs. The new method will require $50,000 in training costs and $140,000 in annual equipment costs. Management is willing to adjust the budget for an amount up to the cost of the new equipment. The budgeted production level is 200,000 units. Appraisal costs for the year are budgeted at $500,000. The new prevention procedures will save appraisal costs of $50,000. Internal failure costs average $30 per failed unit of finished goods. The internal failure rate is expected to be 5% of all completed items. The proposed changes will cut the internal failure rate by one-half. Internal failure units are destroyed. External failure costs average $50 per failed unit. The company's average external failures average 2.5% of units sold. The new proposal will reduce this rate to 1%. Assume all units produced are sold and there are no ending inventories. -What is the net change in the budget of prevention costs if the procedures are automated in 2015? Will management agree with the changes?

Examples of nonfinancial measures of quality include the ________.

The amount of time from when a customer places an order for a product or requests a service to when the product or service is delivered to the customer is referred to as ________.

Quality is defined as the total features and characteristics of a product or a service made or performed according to specifications to satisfy customers at the time of purchase and during use.