Deck 12: Increasing Productivity and Quality

Question 1

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.

Answer 1

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

Question 2

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

Answer 2

B
innovation

Question 3

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.

Answer 3

A
$25.
00

Question 4

Which country has the highest economic output per hour?

A) Belgium
B) United States
C) Canada
D) Norway
E) Japan

Question 5

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.

Question 6

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

A) Inputs
B) Quality
C) Outputs
D) Transformation
E) Productivity

Question 7

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

Question 8

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.

Question 9

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.

Question 10

The productivity of a business is important to

A) managers.
B) unions.
C) investors.
D) employees.
E) all of these.

Question 11

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

Question 12

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.

Question 13

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.

Question 14

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

Question 15

________ 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

Question 16

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.

Question 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.

Question 18

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

Question 19

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.

Question 20

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.

Question 21

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.

Question 22

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.

Question 23

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.

Question 24

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.

Question 25

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.

Question 26

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.

Question 27

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.

Question 28

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.

Question 29

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.

Question 30

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.

Question 31

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

Question 32

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.

Question 33

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.

Question 34

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

Question 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.

Question 36

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

Question 37

The starting point for total quality management is

A) quality ownership.
B) performance quality.
C) quality reliability.
D) customer focus.
E) value-added analysis.

Question 38

___________,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

Question 39

"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.

Question 40

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

A) Employees
B) Customers
C) Suppliers
D) Competitors
E) Investors

Question 41

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

Question 42

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.

Question 43

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.

Question 44

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

Question 45

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

Question 46

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

Question 47

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.

Question 48

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

Question 49

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.

Question 50

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.

Question 51

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.

Question 52

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.

Question 53

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

Question 54

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.

Question 55

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

Question 56

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.

Question 57

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

Question 58

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

Question 59

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

Question 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.

Question 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.

Question 62

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

Question 63

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

Question 64

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.

Question 65

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

Question 66

The fourth step in the re-engineering process is to understand the current process.What are the key resources needed for this step?

A) Process analysis skills
B) Teamwork; customer focus
C) Process flow analysis; process mapping
D) Information technology; business culture management
E) Company vision statement; awareness of competitive status

Question 67

Mark is heading a team that has reached the third step in the re-engineering process.Which of the following are key resources needed for Mark and his team 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; customer focus
E) Company vision statement; awareness of competitive status

Question 68

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.

Question 69

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.

Question 70

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.

Question 71

________ 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

Question 72

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

Question 73

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.

Question 74

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.

Question 75

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.

Question 76

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.

Question 77

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

Question 78

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.

Question 79

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.

Question 80

________ 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