Quality Management Chapter 9 Exam 19 Questions with Verified Answers,100% CORRECT

Quality Management Chapter 9 Exam 19 Questions with Verified Answers Auditing Takes Many Forms - CORRECT ANSWER Internal Auditing: adding value to an organization by increasing the ability to perform the mission, reducing cost, and reducing fiduciary risk Auditing is not always about standards. It can evaluate operations or processes to define best practices. Continuous improvement or kaizen: seeking to improve the standard incrementally Or: use external research or innovation for breakthrough best practices Quality Auditing - CORRECT ANSWER Ensures that quality practices are meeting internal standards (for formal certification) and external standards (assessment of certification - ISO, CMMI, MBNQA) Auditing offers 2 opportunities for improvement: the chance to assign independent resources where they are needed and the need for an independent perspective OR the chance to look back at what went wrong, and learn from mistakes, and where to focus process improvements Auditing - CORRECT ANSWER Auditors: investigate, report, recommend, advise but they do not manage Why don't auditors take corrective action? Because it the role of the business. Auditor are there to collect data and give results. Adding Value and Managing Risk - CORRECT ANSWER Audit Department goal: add maximum value to the organization with given resources Increase the organization's ability to perform its mission; effectiveness Reduce cost; efficiency Reduce risk of fiduciary liability; reduce exposure Auditors Look at These Issues - CORRECT ANSWER Size of operation Assessment of risk for particular activities Other audit or assessment activities ***** Risk Footprint Auditing Standards and Methods - CORRECT ANSWER Philosophical Scientific Forensic Engineering Business Auditors versus Auditees - CORRECT ANSWER Meaning of the word "all" Everyone needs to be aware of the level of standard we are working towards in quality management. These needs should be communicated clearly at the different levels Audits can be impacted by - CORRECT ANSWER Politics Traditions Scope of audit Objectives of audit Four categories that auditors use to examine controls, processes or results - CORRECT ANSWER Comparison to an appropriate standard or regulation Comparison to best practices Benchmarking - comparison to accepted targets for effectiveness or efficiency Technical analysis applying common sense, such as the elimination of work that delivers no defined result and elimination of duplicate effort Results of a Classic Audit - CORRECT ANSWER Condition - measure of performance of how things were done Criteria - relevant standard or best practice Effect/Impact - gap between condition and criteria Cause - reason for good or poor performance *********************** Experimental control - group that does not have the intervention. Results in an Impact Finding report. Management response report details a plan of action based on the audit report. Auditing to Quality Standards: Reasons audits are undertaken - CORRECT ANSWER Company commits to a standard. Audit provides tests and checks. Client or stakeholder requires a standard. Audit confirms the standard is being used. Products or services may be operating in the audited environment. Ex. Security risk audit External quality auditing would be invoiced in the assessment of certification such as the - CORRECT ANSWER ISO -9000, CMMI, or the granting of awards such as the Baldridge Quality Award. Forensic - CORRECT ANSWER is that the investigation or approach is acceptable in a court of law. Richard P. Freeman - CORRECT ANSWER Nobel Prize winning physicist "Minority Report to the Space Shuttle Challenger Inquiry" in The Pleasure of Finding Things Out (1999) Which of these best describes an auditor's activities in terms of the Plan, Do, Check, Act (PDCA) cycle? - CORRECT ANSWER Independent checking A risk footprint is - CORRECT ANSWER a tool prepared by auditors using structured interviews to determine what audits or reviews are most likely to have significant findings. An intervention is - CORRECT ANSWER a new or different process being tested by evaluation or experiment. Which of these are the three main ways in which auditing can add value? - CORRECT ANSWER Increasing ability or likelihood of achieving mission. Reducing cost or risk of cost. Reducing fiduciary responsibility. Pareto Optimization is primarily used to - CORRECT ANSWER identify root causes.