Exam 26: Quality Management and Measurement

Consider the following data for Sue Company: Compute the following quality ratios for Sue Company: a.Total costs of quality as a percentage of sales b.Ratio of costs of conformance to total costs of quality c.Ratio of costs of nonconformance to total costs of quality d.Costs of nonconformance as a percentage of sales Preliminary calculations: Cost of conformance: $800 + $1,000 = $1,800 Cost of nonconformance: $400 + $600 = 1,000 Total costs of quality $2,800

-Based on the graph above,which company is taking the most serious approach to TQM?

If a company is spending more on the costs of nonconformance than on the costs of conformance

Today's MIS focuses on activities rather than costs.

Quality training of employees is an example of

Which of the following was created by the U.S.Congress to recognize quality and performance excellence?

Using an MIS system to customize reports for performance analysis and decision making falls under which stage of the management process?

Although focus on quality is considered a modern management issue,the Deming Prize was actually established in the 1950s.

Reducing the costs of quality and increasing overall product quality can be achieved simultaneously.

The sale and shipment of a product marks the end of performance measurement.

-Based on the above data,which department is least committed to TQM?

An advantage of SaaS is

The gradual and ongoing improvement of products and processes while reducing costs is known as

The following sales and quality-related data pertain to April for Direction Company: a.Prepare an analysis of the costs of quality of the three divisions.Categorize the costs as follows: costs of conformance with subsets of prevention costs and appraisal costs,and costs of nonconformance with subsets of internal failure costs and external failure costs.Compute the total costs for each category for each division. b.Compute the percentage of sales of each cost-of-quality total for each division.Round percentages to two places beyond the decimal point. c.Interpret the cost-of-quality data for each division.Is each division's product of high or low quality? Why? Are the divisions headed in the right direction to be globally competitive? d.Evaluate the nonfinancial measures of quality in terms of customer satisfaction.Explain your answer.

The EFQM Excellence Award was established by a Japanese Union of Scientists and Engineers to honor individuals and groups who have contributed to the development and dissemination of total quality control.

Today's MIS is designed to support

Service businesses cannot measure the quality of their work.

The two components of costs of quality are costs of conformance and costs of nonconformance.

The first step in ensuring the production of high-quality products is to have a sound product design.

Warranty claims and adjustments are examples of