Test Bank & Instructor’s Solutions Manual to accompany QUALITY MANAGEMENT for Organizational Excellence Seventh Editio

Test Bank & Instructor’s Solutions Manual to accompany QUALITY MANAGEMENT for Organizational Excellence Seventh Edition David L. Goetsch Stanley B. Davis __________________________________________________________________________________ 1 TEST BANK Chapter One THE TOTAL QUALITY APPROACH TO QUALITY MANAGEMENT TRUE/FALSE: Place T or F in the space provided to the left of the statement. __T___1. Quality deals not only products and services but also includes people, processes, and environments. __F___2. Joseph M. Juran is best known for the Seven Deadly Diseases. __T___3. Today’s consumers define quality as being flawless and having all of the attributes they want in just the way they want them. _T____4. According to the Three-Legged Stool of Total Quality, the seat of the stool is customer focus. __F___5. Quality management has o future in the 21st century. __T___6. Peak performance is essential to organizations that operate in a globally competitive environment. MULTIPLE CHOICE: Circle the letter before the correct answer in each of the following questions. 1. The total quality approach has which of the following characteristics? A. ( Teamwork ) B. Obsession with quantity C. Confusion and poor leadership D. One employee in charge 2. Customers want an excellent product or service from an organization that also provides: A. The Deming Cycle B. Quick fixes C. ( Reliable delivery and after purchase support ) D. Stamps 2 3. Which of the following functions is part of the Juran Trilogy? A. Pareto Principle B. ( Quality planning ) C. Unity of purpose D. Six Sigma Program 4. Crosby's Quality Vaccine consists of three ingredients. Which of the following is not one of the three ingredients? A. ( Teamwork ) B. Education C. Determination D. Implementation 5. Which of the following is a trend that will shape the future of quality management? A. The Deming Cycle. B. The Juran Trilogy. C. Global economy. D. ( Increasing global competition. ) 6. Which of the following certifications is for managers who lead and champion continualprocess improvement initiatives? A. Calibration technician B. Six Sigma Green Belt C. ( Manager of Quality/Organizational Excellence ) D. Quality Process Analyst Chapter Two QUALITY AND GLOBAL COMPETITIVENESS TRUE OR FALSE: Place T or F in the space provided to the left of the statement. __F___1. U.S companies, mistakenly seeing quality as the issue, learned that quantity was the key to success in the global marketplace. __T___2. The need to improve an organization’s financial condition correlated directly with the process of making and measuring quality improvements. __T___3. A nation's ability to compete in the global marketplace has a direct bearing on the quality of life of its citizens. __F___4. The only way the U.S. can overcome business-related inhibitors is for the government to enact policies that will reduce non-value-added costs to a minimum. 3 __T___5. In order to be an exporter, a manufacturer must be able to outperform foreign competitors in terms of both quality and productivity. ___T__6. Management-by-accounting encourages short-term cost cutting instead of long-term improvement. MULTIPLE CHOICE: Circle the letter before the correct answer in each of the following questions. 1. Of the trends listed below, which one increases the level of globalization in business? A. Growing irrelevance of distance. B. Shifts in the interest rates. C. ( Quality of the product. ) D. Rise of small towns. 2. Which of the following statements are considered true concerning the affects of global integration? A. It has helped fuel economic growth throughout the industrialized world. B. It can be the Achilles heel of economic growth. C. Downturns in one country can now have a ripple effect that quickly spreads to other countries. D. ( All of the above ) 4 3. Which of the following countries is the most competitive country in the world? A. Germany B. United States C. ( Japan ) D. Switzerland 4. When making comparisons among internationally competing countries, the following indicators are used: A. ( Standard of living and investment. ) B. Quality is the key to success. C. Government infrastructure. D. Ability to compete. 5. The most important key in maximizing competitiveness is: A. Education B. ( Human resources ) C. Teamwork D. Government 1. The most common college degree among American CEOs is the: A. Quality management B. ( MBA ) C. CFO D. Management and Leadership Chapter Three STRATEGIC MANAGEMENT: PLANNING AND EXECUTION FOR COMPETITIVE ADVANTAGE TRUE OR FALSE: Place T or F in the space provided to the left of the statement. ___T__1. In order to survive in a globally competitive environment, organizations must adopt a broad strategy that gives them a sustainable competitive advantage. ___T__2. A core competency is something an organization does so well it can be viewed as a competitive advantage. ___F__3. SWOT Analysis is the only step needed in the strategic planning process. ___F__4. An organization's vision is a specific measurable goal it tries to achieve. __T___5. Change that is inflicted on employees will be resisted, but change that is engendered by employees who are involved in and prepared for it will be accepted and promoted. __T___6. Even the best plan can do no good until it is effectively executed. 5 MULTIPLE CHOICE: Circle the letter before the correct answer in each of the following questions. 1. Which of the following statements apply when developing a mission statement? A. ( The how-to statements. ) B. Describe the “who, what, and where” of the organization. C. Be brief, but comprehensive. D. Choose wording that is simple. 2. Which of the following statements best describe the acronym SWOT? A. Specific, Witness, Opportunities, and Time. B. Single, Weaknesses, Occasion, and Tactics. C. ( Strengths, Weaknesses, Opportunities, and Threats. ) D. Strategic, Weaknesses, Objectives, and Tactics. 3. Strategic management is A. Creative thinkers who look at their business environment from a different perspective. B. Expansive and wasteful. C. Constantly seeking gaps in the marketplace that their companies can fill. D. ( Management that bases decisions within an ethical framework. ) 6 4. Which of the following statements is true concerning strategies used to execute a strategic plan? A. ( Organizations should communicate at all times. ) B. Consult with only managers. C. Adjust to administrative barriers. D. Be flexible and improvise. 5. Which of the following strategies is important when executing a strategic plan? A. Review the plan with customers. B. ( Identify advocates and resisters. ) C. Form an application task force. D. Activate the steering committee. 6. To promote successful execution of strategies, organizations should undertake which of the following strategies? A. ( Eliminate administrative barriers ) B. Conduct a secondary SWOT analysis C. Hold a stakeholder’s gap analysis D. Contract with an execution specialist 7 Chapter Four QUALITY MANAGEMENT, ETHICS, AND CORPORATE SOCIAL RESPONSIBILITY TRUE OR FALSE: Place T or F in the space provided to the left of the statement. ___T__1. Morality refers to the values that are subscribed to and fostered by society in general and by individuals within society. ___F__2. Locus of control is a person's ability to undertake self-directed tasks and to cope with tense structure. __T___3. In a total quality setting, people are responsible for their actions and accountable for their performance. __F___4. Managers must establish ethical standards within their organization. __T___5. Corporate social responsibility is a balanced approach for organizations to address economic, social and environmental issues in a way that aims to benefit people, communities and society. ___F__6. People in positions of authority are exempt from their organization’s ethics standards. MULTIPLE CHOICE: Circle the letter before the correct answer in each of the following questions. 1. The concepts of trust, integrity, and _______ are part of the value system of total quality. A. Morality B. ( Responsibility ) C. Trust D. Legality 2. Which of the following is not a value that leads to peak performance and excellence? A. Creativity B. Quality C. ( Dependability ) D. Opportunity 8 3. Managers have three main responsibilities in regard to ethics. Which of the following is NOT one of those? A. ( They are responsible for creating an internal environment that promotes, expects, and rewards ethical behavior. ) B. They are responsible for helping employees make ethical choices. C. They are responsible for setting an example of ethical behavior. D. They are responsible for helping employees follow through and exhibit ethical behavior after the appropriate choices have been made. 4. When handling an ethical dilemma, managers should select the option that will most likely: A. ( Pass the various ethics tests ) B. Build strength in the organization C. Set the best example for employees D. None of the above 5. When providing ethics training, it is important to: A. Facilitate, don’t preach B. Stimulate discussion C. Highlight practical applications D. ( All of the above are important ) 6. An organization’s responsibilities for ensuring ethical behavior include: A. Paying whistleblowers to speak up B. ( Creating and ethical environment ) C. Establishing in-house courts and juries D. Refusing to talk to the media Chapter Five PARTNERING AND STRATEGIC ALLIANCES TRUE OR FALSE: Place T or F in the space provided to the left of the statement. __T___1. The overall purpose of internal partnering is to harness the full potential of the workforce and focus it on continual improvement of quality. ___F__2. Any supplier would make a good partner. __F___3. If a manufacturer is not careful a customer-supplier partnership can be very costly, especially in the product development cycle. ___T__4. The rationale for partnering with potential competitors is competitiveness. 9 ___T__5. Educational institutions provide on-site customized training, technical assistance, and consulting services to help organizations continually improve their people and their processes. __F___6. Government mandated partnerships are recommended when dealing with foreign countries. MULTIPLE CHOICE: Circle the letter before the correct answer in each of the following questions. 1. The maximum benefits of partnering are realized when all parties in the chain of partners: A. Are satisfied B. ( Cooperate ) C. Get what they want D. Trust each other 2. Partnering can lead to continual improvements in such key areas as relationships between customers and suppliers, customer satisfaction, and A. Increased competitiveness B. Increased resources C. ( Processes and products ) D. Quality Control 3. Internal partnering occurs at three levels. Which of the following is NOT one of these levels? A. Team-to-team partnerships B. ( Management-to-management partnerships ) C. Management-to-employee partnerships D. Employee-to-employee partnerships 10 4. Successful supplier partnerships evolve in seven stages. They begin in the following order: Uncertainty and tentativeness; Short-term pressures; Need for new opportunity and ___________________. A. Adoption of new values B. Mature partnering C. ( Adoption of new paradigms ) D. Awareness of potential 5. Educational institutions provide which of the following services to help organizations continually improve their people and their processes. A. On-site customized training B. Technical assistance C. Consulting services D. ( All of the above ) 6. The rules for establishing global partnerships are the same as those for establishing domestic partnerships when: A. ( Partnerships are based on sound business principles rather than politics ) B. Governments agree to guarantee profits C. Governments are influenced D. Sound business principles are not allowed to inhibit partnerships Chapter Six QUALITY CULTURE: CHANGING HEARTS, MINDS, AND ATTITUDES TRUE OR FALSE: Place T or F in the space provided to the left of the statement. __T___1. Expectations are important determinants of organizational culture. __F___2. If an organization begins to decline after moving to total quality it should return to its traditional approach. __F___3. The most effective way to implement changes is to make sure all employees have sufficient warning prior to the actual changes. ___T__4. It might be necessary to change an organization’s leadership to ensure needed cultural change. __T___5. The key people in an organization that is establishing a quality culture are those who can facilitate and those who can inhibit implementation of the change. __T___6. To maintain a quality culture organizations must recognize and reward behaviors that nurture quality. 11 MULTIPLE CHOICE: Circle the letter before the correct answer in each of the following questions. 1. There are several primary reasons why cultural change must either precede or at least parallel the implementation of total quality. Which of the following is NOT a primary reason? A. Moving to Total Quality takes time. B. ( Employees may not adapt to too many changes. ) C. It can be difficult to overcome the past D. Change cannot occur in a hostile environment 2. Which of the following is NOT a law of organizational change? A. Involve everyone affected by change in making it. B. Be prepared to listen and observe. C. ( Trust people and treat them with dignity and respect. ) D. Understand the history behind the current culture. 3. Which of the following strategies are needed for establishing a quality culture? A. Take a hearts and minds approach B. Put the planned changes in writing C. Support of management D. ( All the strategies above are needed for establishing a quality culture. ) 4. Advocates of change: A. ( Are often unaware of how a proposed change will be perceived by potential resisters. ) B. Fear a loss of control. C. Sometimes fear the unknown. D. Are patient with the concerns of resisters. 5. Strategies for establishing a quality culture include which of the following? A. Watching shocking videos B. Realization of the work effort C. ( Developing a plan for making the changes ) D. Rebuilding teams 6. Which of the following is a strategy for maintaining a quality culture? A. Increase the company’s debt-to-assets ratio B. Streamline the RFP process C. Discourage initiative in favor of SOPs D. ( Keep employees involved ) 12 Chapter Seven CUSTOMER SATISFACTION, RETENTION, AND LOYALTY TRUE OR FALSE: Place T or F in the space provided to the left of the statement. ___T__1. The customer in a total quality setting defines quality. __F___2. It is important to acquire as many customers as an organization is able because customers are not reliable and an organization must always be replacing a lost customer. ___F__3. Communication just happens. ___T__4. Quality Function Deployment is a model for incorporating customer input and feedback into product development. ___T__5. Meeting customer specifications does not produce customer satisfaction. __F___6. Satisfied customers will not migrate to a competitor. MULTIPLE CHOICE: Circle the letter before the correct answer in each of the following questions. 1. In a total quality setting, quality is defined by: A. The employee B. ( The customer ) C. The management D. The organization 2. An organization with a customer focus is: A. ( Outward-looking ) B. Inward-looking C. Established D. Continually improving 13 3. Which of the following mechanisms can help improve communication? A. An internal customer B. ( Self-managed and cross-departmental teams ) C. Organization employees D. External customers 14 4. Which of the following statements are true concerning communication with customers? A. Must extend only to internal customers. B. Is never misunderstood. C. ( Is essential in a competitive marketplace ) D. Is not necessary in a small town 5. The customer loyalty model consists of which of the following components? A. Business performance B. Global perceptions C. Loyalty behaviors D. ( All of the above are components of the customer loyalty model ) 6. The best way to generate customer loyalty is to provide customers with: A. Rebates B. Discounts C. ( Superior value ) D. Uninhibited access Chapter Eight EMPLOYEE EMPOWERMENT TRUE OR FALSE: Place T or F in the space provided to the left of the statement. ___T__1. Without empowerment, involvement is just another management tool that doesn’t work. __F___2. Employee empowerment is a new name for participatory management. __T___3. A workforce that is ready for empowerment is accustomed to critical thinking. ___T__4. A quality circle is a group of employees that meets regularly for the purpose of identifying, recommending, and making workplace improvement. ___T__5. Employee enlistment means not simply empowering employees to participate in the decision-making process but expecting them to do so. ___T__6. Fear of exclusion can cause managers to resist employee empowerment. 15 MULTIPLE CHOICE: Circle the letter before the correct answer in each of the following questions. 1. Employee empowerment is: A. Employee involvement in decision making. B. Power of the employee to make suggestions that will be reviewed by management C. Employee input that is heard, seriously considered, and followed up on whether it is accepted or not. D. Power of the employee to make a decision without management involvement. Answer : C 2. The primary inhibitor of empowerment is: A. The Wohcao Syndrome B. Human nature's resistance to change. C. Resistance from employees and unions. D. Resistance from management. Answer : B 3. The word that best describes management’s role in employee empowerment is: A. Facilitation B. Leadership C. Commitment D. All of the above Answer : D 16 4. Which of the following strategies will help organizations move beyond empowerment to enlistment? A. Set up a reward system. B. Make it clear to all employees that their ownership is not just wanted and needed but that it is expected. C. Make it clear to implement suggestions. D. Empower employees for suggestions that are implemented. Answer : B 5. A workforce that is ready for empowerment: A. Is accustomed to critical thinking B. Understands the decision making process C. Knows where it fits into the big picture D. All of the above Answer : D 6. Which of the following is an element of management’s role in empowerment? A. Commitment B. Establishing quality circles C. Establishing customer feedback mechanisms D. Being impatient to earn employee buy-in Answer : A 17 Chapter Nine LEADERSHIP AND CHANGE TRUE OR FALSE: Place T or F in the space provided to the left of the statement. __F___1. Misleaders surround themselves with knowledgeable, strong people who are able to make them appear to be good leaders. ___F__2. Democratic leadership is called open, free-reign, or nondirective leadership. __T___3. Servant leadership/stewardship seeks to do a better job of serving both external and internal customers. ___T__4. Building trust requires leadership on the part of managers. ___T__5. To facilitate change in a positive way, leaders must have a clear vision and corresponding goals, exhibit a strong sense of responsibility, be effective communicators, have a high energy level, and have the will to change. __T___6. It is important for those who want to lead to first learn how to follow. MULTIPLE CHOICE: Circle the letter before the correct answer in each of the following questions. 1. Which of the following characteristics is not necessarily needed to be a good leader? A. Good communication skills B. Positive role model C. A charismatic personality D. Persuasiveness Answer : C 2. The most effective leaders can be found in what part of an organization? A. Top-level management B. Mid-level management C. Lowest paid wage earner D. All of the above Answer : D 3. Leadership skills are: A. Inherited B. Learned C. Both A and B D. None of the above Answer : C 18 4. Which of the following is the most appropriate leadership style in a total quality setting? A. Autocratic B. Democratic C. Participative D. Goal-orientated Answer : C 5. The change facilitation model contains which of the following steps? A. Develop a compelling change picture B. Conduct a comprehensive roadblock analysis C. Monitor and adjust D. All of the above Answer : D 6. Which of the following is a benefit of mentoring? A. Enhances performance B. Satisfies ISO 9000 standards C. Decreases the organization’s retention rate D. Eliminates the problem of stewardship Answer : A 19 Chapter Ten TEAM BUILDING AND TEAMWORK TRUE OR FALSE: Place T or F in the space provided to the left of the statement. ___T__1. A team is a group of people with a common, collective goal. ___T__2. A team must have a mission statement because it explains the team’s reason for being. ___F__3. Teams are not coached - they are bossed. ___T__4. Coaches promote mutual respect among team members and promote cultural diversity. ___F__5. Employees always work well together as a team just because it’s the right thing to do. __F___6. People in teams will respond to change in the same ways. MULTIPLE CHOICE: Circle the letter before the correct answer in each of the following questions. 1. Which of the following is not classified as a type of team according to Johnson, Katner, and Kikora? A. Environmental improvement team B. Departmental improvement team C. Process improvement team D. Task force Answer : A 2. Which of the following strategies counter the negative influences of advisor and followers? A. Personal identity of members B. Looking for disagreement among advisors C. Relationships among team members D. Follower’s identity within the organization Answer : B 3. Which of the following strategies are applied in order to be a good team member? A. Establish ground rules B. Be well prepared and participate C. Identify success criteria D. None of the above Answer : B 20 4. Which of the following character traits promote successful teamwork? A. Honesty B. Controlling C. Impatience D. Need to be in-charge (bossy) Answer : A 5. Which of the following is a common structural inhibitor to teamwork in organizations? A. Sensitivity B. Honesty C. Accountability to management D. Tolerance Answer : C 6. Which of the following is a personally negative response to conflict? A. Filing a lawsuit B. Going into denial C. Filing a grievance D. Submitting to mediation Answer : B 21 Chapter Eleven EFFECTIVE COMMUNICATION TRUE OR FALSE: Place T or F in the space provided to the left of the statement. __F___1. Effective communication means receiving a message, correctly decoding it, and accurately perceiving what it means. ___F__2. Company level communication is communication within a peer group. ___T__3. When trying to communicate it is important that you do not use open-ended questions. ___T__4. In order for employees and managers to function effectively in a total quality setting, they must have good interpersonal skills. ___T__5. Interpersonal skills are those needed for people to work together in a positive manner that is conductive to both personal and corporate success. ___F__6. One-way communication helps maintain a climate that is conducive to effective communication. MULTIPLE CHOICE: Circle the letter before the correct answer in each of the following questions. 1. There are several components of communication. They are: A. The sender, the message, the receiver, verification B. The message, the medium, the sender, the customer C. The medium, the goals, the receiver, the message D. The message, the sender, the receiver, the medium Answer : D 2. Which of the following is not a common inhibitor of communication? A. Lack of trust B. Lack of concentration C. Interference D. Inaccurate assumptions Answer : B 3. Empathic listening means: A. Agreeing with what is being said B. Receiving the message, correctly decoding it, and accurately perceiving what is means C. Listening with the intent to understand D. Pretending to listen Answer : C 22 4. Robert Luke offers four guidelines for enhancing the effectiveness of corrective feedback. They are: A. Be positive, be prepared, be realistic, and don’t be completely negative B. Be positive, be prepared, be realistic, be accurate C. Be direct, be prepared, be realistic, be accurate D. Don’t be completely negative, be positive, be brief, and be understanding Answer : A 5. Verbal communication is least effective when: A. Reprimanding an employee for poor performance B. Promoting a safety campaign C. Commending an employee for doing a good job D. Attempting to resolve conflict between or among employees Answer : B 6. One of the highest levels of verbal communication occurs when speakers use what to make their points? A. Stories B. Facts C. Photographs D. Graphs and charts Answer : A 23 Chapter Twelve EDUCATION AND TRAINING TRUE OR FALSE: Place T or F in the space provided to the left of the statement. __F___1. Technology transfer is the process of moving newly commercialized technologies into the workplace where they can be used to enhance productivity, quality, and competitiveness. ___T__2. The job task analysis survey is the most structured approach managers can use to assess training. _F____3. The lecture/discussion method of teaching should be used when the subject matter deals with skill development or how-to information. ___F__4. One half of the adult population in the US are marginally to functionally illiterate. ___T__5. E-learning is a tool, not a strategy. ___T__6. Training sometimes fails because of a lack of participation in planning on the part of management. MULTIPLE CHOICE: Circle the letter before the correct answer in each of the following questions. 1. The most important factors that combine to magnify the need for training are global competition, rapid and continual change, quality of the existing labor pool, technology transfer problems, and . A. Quality of organization B. Changing demographics C. Change in productivity D. Corporate image Answer : B 2. Computer-based training is part of: A. The external approach to training B. The internal approach to training C. The partnership approach to training D. None of the above Answer : B 24 3. What percentage of what is read is remembered and retained? A. 50% B. 30% C. 90% D. 10% Answer : D 25 4. What is the oldest and most used method of teaching? A. The demonstration method B. The conference method C. The lecture/discussion method D. The simulation method Answer : C 5. Which of the following is a strategy of e-learning? A. E-learning works best when there are learning coaches and mentors provided. B. E-learning must have a statement of purpose. C. Build in quality. D. Conflicting information Answer : A 6. Topics that are widely addressed in ethics training programs are: A. Drug and alcohol abuse B. Employee theft and sexual harassment C. Inaccuracy of books and records D. All of the above Answer : D 26 Chapter Thirteen OVERCOMING POLITICS, NEGATIVITY, AND CONFLICT IN THE WORKPLACE TRUE OR FALSE: Place T or F in the space provided to the left of the statement. ___T__1. Internal politics consists of the games people play to promote decisions that are based on criteria other than merit. ___F__2. Internal politics occurs when individuals put the organization’s goals ahead of their own. ___T__3. Power is the ability to exert influence. ___F__4. There are certain organizational structures that tend to prevent internal politics. __T___5. Conflict management means resolving conflict whenever it is detrimental and initiating it when necessary to overcome stagnation in an organization. __T___6. One definition of corporate culture is the way things are done in an organization. MULTIPLE CHOICE: Circle the letter before the correct answer in each of the following questions. 1. The Achilles Heel of the geographic structure with regard to internal politics is: A. Individual goals of the division managers B. The CEOs persona agenda C. Distance D. East/west and north/south conflict Answer : C 2. A strategy used by internal politics that involves the sharing and/or selective withholding of information is: A. Coalition building B. Lobbying C. Electioneering D. Spreading of rumors and gossip Answer : B 27 3. Bringing together people who have a common cause or goal is a strategy of internal politicians known as: A. Electioneering B. Lobbying C. Coalition building D. Rumor mongering Answer : C 4. Which of the following is NOT typically an effect of internal politics in an organization? A. Loss of morale B. Counterproductive internal competition C. Loss of quality, competitiveness, and customers D. Enhanced competitiveness Answer : D 5. Which of the following is NOT a strategy for preventing internal politics? A. Explaining the strategic plan to all employees B. Rewarding employees who win in internal competition situations C. Leadership by example D. Encouraging a customer focus Answer : B 6. Which of the following situations indicates that conflict should be stimulated? A. When employees always agree and tell managers what they want to hear B. Employees willingly admit their mistakes C. The turnover rate is unusually high D. Employees avoid proposing new ideas Answer : A 28 Chapter Fourteen ISO 9000 AND TOTAL QUALITY: THE RELATIONSHIP TRUE OR FALSE: Place T or F in the space provided to the left of the statement. ___F__1. ISO 9000 and total quality are interchangeable. ___T__2. ISO 9000 is compatible with, and can be a subset of total quality. __F___3. ISO 9000 is never implemented in a non-total quality environment. ___T__4. ISO 9000 can improve operations in a traditional environment. ___T__5. ISO 9000 may be redundant in a mature total quality environment. __T___6. ISO 9001 is intentionally generic so it can be applied to any kind of organization. MULTIPLE CHOICE: Circle the letter before the correct answer in each of the following questions. 1. Appropriate motives for adopting ISO 9000 include which of the following? A. To create a quality management system B. To improve operations C. To conform to the requirements of customers D. All of the above Answer : D 2. Which of the following is a documentation requirement for the ISO 9000 quality system? A. A Quality Policy B. Statement of Customer Focus C. Statement of Management Commitment D. Declaration that Teamwork is to be employed in all areas Answer : A 3. Which of the following statements outline the relationship factor? A. ISO 9000 and total quality are not in competition B. ISO 9000 and total quality are not interchangeable C. ISO 9000 is compatible with total quality D. All of the above Answer : D 29 4. Characteristics of total quality include: A. Scientific approach to problem solving and decision making B. Concerned only with quality management procedures C. Unity of purpose - all employees, all levels D. Both A & C Answer : D 5. Which of the following statements is true concerning the original aims of ISO 9000? A. To transform organizations into competitive players in the global marketplace. B. To create a universally recognized family of quality standards. Answer : B 6. Which of the following is a basic principle of ISO 9000? A. Certification authority held by ISO B. Continual improvement of processes and products C. Management authority D. Periodic internal audits Answer : B 30 Chapter Fifteen OVERVIEW OF TOTAL QUALITY TOOLS TRUE OR FALSE: Place T or F in the space provided to the left of the statement. ___T__1. A graphic representation of a process is called a Flowchart. __F___2. Attributes data are something resulting from measurement. __F___3. The diamond shaped symbol on a flowchart denotes an input or an output. ___T__4. FMEA is a tool to deal with potential product failures. ___T__5. Design of experiments is a very sophisticated method for experimenting with processes with the objective of optimizing them. MULTIPLE CHOICE: Circle the letter before the correct answer in each of the following questions. 1. The purpose of the Pareto Chart is: A. To identify and isolate the causes of a problem B. To show where to apply resources by revealing the significant few from the trivial many C. To collect variables data D. To determine the correlation between two characteristics Answer : B 2. Frequency Distribution Diagram is another name for a: A. Pareto Chart B. Fishbone Diagram C. Scatter Diagram D. Histogram Answer : D 3. Which chart is often referred to as a trend chart? A. Control Chart B. Run Chart C. Pareto Chart D. Scatter Diagram Answer : B 31 4. Which of the following is used to show correlation of two variables? A. Run Charts B. Histograms C. Scatter Diagram D. Stratification Answer : C 5. Which of the following reveals whether process variation is the result of a special cause? A. Control Chart B. Check Sheet C. Pareto Chart D. Run Chart Answer : A 32 Chapter Sixteen PROBLEM SOLVING AND DECISION MAKING TRUE OR FALSE: Place T or F in the space provided to the left of the statement. __T___1. When a problem solution returns a process to the state that existed before the problem occurred, a total quality organization would say that the problem was NOT resolved. ___T__2. Dr. Juran’s 85/15 rule holds that at least 85% of an organization’s problems would be eliminated if employees did their jobs correctly. __F___3. The PDCA cycle is one model for continual improvement. _____4. The Seven-Step Problem Solving process promoted by the authors was developed by Toyota. _____5. The major problem with employee involvement in problem solving is time. _____6. Repeatedly asking “why” related to the problem should eventually lead to a root cause. MULTIPLE CHOICE: Circle the letter before the correct answer in each of the following questions. 1. There are two ways to evaluate decisions. One way is to: A. Examine the results B. Examine the input that is used in decision making C. Evaluate the process used in making the decision D. A or C Answer : D 2. Objective information is: A. Not always factual B. Factual C. Open to interpretation D. Not reliable Answer : B 3. Factors that inhibit problem solving creativity include: A. Failing to be concerned about risk B. Fear of looking foolish or being rejected C. Having more than 4-5 people on the team D. Allowing ambiguity Answer : B 33 4. After defining a problem, the next step in the problem solving/decision making process should be: A. Institute a temporary fix to keep things moving B. Use Five-Why analysis C. Clarify the issue or problem in order to “grasp the situation” D. Define what the outcome should be Answer : C 5. Which of the following is a strategy for helping people think creatively? A. Idea vending (or stirring the pot) B. Being risk averse C. Unwillingness to hear “over the top” ideas or input D. Looking for the one right answer Answer : A 34 Chapter Seventeen QUALITY FUNCTION DEPLOYMENT TRUE OR FALSE: Place T or F in the space provided to the left of the statement. __T___1. Quality Function Deployment seeks to ensure that customer input is an important factor in the design of products. ___F__2. Quality Function Deployment’s HOQ matrix number 1 is for establishing the interrelationships between customer need and the technical requirements for the product. __T___3. The affinity diagram is used to bring logic and structure to the creative process. ___F__4. The HOQ matrix diagram establishes responsibilities for the producing organization’s various departments, minimizing the need for inter-departmental communication. ___T__5. The purpose of the HOQ’s Roof (Correlation Matrix) is to graphically show which product technical requirements support, and which impede, the others. MULTIPLE CHOICE: Circle the letter before the correct answer in each of the following questions. 1. QFD was developed in 1966 by: A. Yoji Akao B. Motorola C. W. Edwards Deming D. Ford Motor Co. Answer : A 2. In what matrix of the QFD HOQ are the improvement factor and sales point developed? A. Matrix 1 (Customer Needs) B. Matrix 2 (Planning) C. Matrix 4 (Interrelationships) D. Matrix 6 (Design Targets) Answer : B 3. A plus symbol (+) in one of the squares under the HOQ roof indicates that the two technical requirements forming that intersection: A. Are closely related. B. Are supportive of each other. C. Are high priority customer needs. D. Verifies the math in the planning section. Answer : B 35 4. Data in the Customer Importance column of the customer needs matrix A. Should be non-limiting and non-specific B. Is developed from unanimous customer input C. Is an estimate (by the QFD team) of the relative importance of the customer needs D. Is typically based on a scale of 1 – 5, with 1 being the highest importance Answer : C 5. QFD can be: A. Applicable to a wide range of products (or services), whether competed or not B. Applicable to large or small companies/organizations C. Applicable to both new and existing products D. All of the above. Answer : D 36 Chapter Eighteen OPTIMIZING AND CONTROLLING PROCESSES THROUGH STATISTICAL PROCESS CONTROL TRUE OR FALSE: Place T or F in the space provided to the left of the statement. ___T__1. Variation in any amount is considered a negative for quality. __T___2. At the heart of SPC is the realization that all processes have a natural, or built-in, variation. Processes may also be affected by special causes of variation. The objective of SPC is to separate special-cause variation from the natural variation. __F___3. For a process under SPC, it is important to frequently tweak its parameters in order to keep the process within the upper and lower control limits. ___T__4. Before a process can qualify for SPC, it must be free of special-cause variation. ___F__5. Upper and lower control limits may be derived from logged process data, or from tolerance specifications. MULTIPLE CHOICE: Circle the letter before the correct answer in each of the following questions. 1. The rationale for western manufacturers to embrace SPC is: A. Improve product quality and simultaneously reduce costs B. To be able to compete better with Japan and the world’s markets C. Improve their product image D. All of the above Answer : D 2. The most common inhibitor of SPC is: A. Inadequate training B. Lack of resources resulting from the absence of management commitment C. Failure to have processes under control D. Low production rates Answer : B 37 3. When a process is “in control” what percent of its output will be within the ±3σ limits? A. 66.6% B. 82.4% C. 99.7% D. 100% Answer : C 38 4. The minimum management involvement relative to SPC training involves: A. Providing sufficient funding B. Teaching classes C. Commitment D. None of the above Answer : A 5. The first step in the SPC execution phase is: A. To develop control charts B. Flowcharting or characterizing the process to which SPC will be applied C. Eliminate the special causes of variation D. Collect and plot SPC data Answer : B 39 Chapter Nineteen CONTINUAL IMPROVEMENT METHODS WITH SIX SIGMA, LEAN, LEAN SIX SIGMA, AND MORE TRUE OR FALSE: Place T or F in the space provided to the left of the statement. __T___1. As part of its leadership responsibility, management in an organization that practices total quality must be personally involved in continual improvement. __F___2. The only way a company can hope to compete in the modern marketplace is to improve its products, processes and people continually. ___T__3. If there are 10 processes that might be improved, the processes that should be worked on first are those which will yield the most benefit if improved. __F___4. Six Sigma can only be achieved through process improvement. __F___5. When we combine the most important features of Lean with the best features of Six Sigma we have Lean Six Sigma. MULTIPLE CHOICE: Circle the letter before the correct answer in each of the following questions. 1. In order for an organization to make continual improvement it must: A. Establish an organization-wide quality council B. Establish quality improvement goals with target dates C. Have top management commitment that is visible to all employees D. All of the above Answer : D 2. Variation in processes A. Can be caused by include people, machines, material, and environment B. Is of three kinds C. Should not be of concern D. Must be eliminated if continual improvement is to happen Answer : A 40 3. The Five-Step Plan that involves straightening up, putting things in order, cleaning up, standardizing, and discipline belongs to: A. Jidoka B. Kaizen C. CEDAC D. DMAIC Answer : B 41 4. Lean is based on the manufacturing system that was developed by A. Motorola B. Toyota C. Goldratt D. IBM Answer : B 5. Six Sigma process performance A. Represents a major advance in capability over the typical. B. Has yet to be achieved in actual practice C. Predicts 1 nonconformance in 500 million opportunities D. Is useful only in large scale manufacturing Answer : A 42 Chapter Twenty BENCHMARKING TRUE OR FALSE: Place T or F in the space provided to the left of the statement. ___T__1. Benchmarking supports total quality by providing the best means for rapid, significant process improvement. ___T__2. To achieve best in class, an organization must surpass the performance of the benchmark process ___F__3. Benchmarking is considered to be a one-shot process. ___T__4. The first member selected for a benchmarking team should be a process owner. ___F__5. Your selection of a benchmarking partner must be from your industry. MULTIPLE CHOICE: Circle the letter before the correct answer in each of the following questions. 1. Which of the following behaviors best describe the concept of benchmarking? A. Unethical B. Illegal C. Industrial espionage D. None of the above Answer : D 2. One of the three phases of benchmarking is: A. Conclusion B. Postexecution C. Reporting D. None of the above Answer : B 3. Several benchmarking considerations require management’s approval before the process can start: commitment to change; funding; personnel; disclosure; and . A. Oversight B. Direction C. Involvement D. Direct supervision Answer : C 43 4. Re-engineering is an appropriate replacement for benchmarking when: A. Your process is fairly strong relative to best-in-class. B. The best-in-class is not in your industry. C. Your process is not in statistical control, i.e. is unstable. D. Best-in-class is unwilling to cooperate. Answer : D 5. Benchmarking should be used when: A. Your process is too far behind to catch up with best-in-class through incremental improvement. B. Your process is close to, but not quite as good as, best-in-class. C. When another company sells a product for less than you can. D. When your process is clearly better than your competitor’s. Answer : A 44 Chapter Twenty-One JUST-IN-TIME/LEAN MANUFACTURING (JIT/LEAN) TRUE OR FALSE: Place T or F in the space provided to the left of the statement. __T___1. JIT/LEAN/Lean minimizes production lot sizes. ___T__2. In order for JIT/LEAN/Lean to bring about all the benefits inherent in its philosophy, it must be part of a total quality system. __F___3. In a JIT/LEAN/Lean production facility, the supplying process makes product, then stores it until a Kanban from the receiving process notifies the supplying process that product is needed. __F___4. In a JIT/LEAN plant, there is no such thing as a bottleneck. ___F__5. Automation is being superseded by JIT/LEAN/Lean in manufacturing plants. MULTIPLE CHOICE: Circle the letter before the correct answer in each of the following questions. 1. The JIT/LEAN/Lean “pull” system ensures that: A. Costs are minimized through “economy of scale.” B. That the production line will never stop because of a problem C. Buffer stocks are on hand to prevent line stoppage when a critical machine fails. D. The internal supplier process does not build product unless told to do so by the internal customer process. Answer : D 2. Which of the following individuals are identified as the developer of JIT/LEAN/Lean? A. Eiji Toyoda B. W. Edwards Deming C. Taiichi Ohno D. Henry Ford Answer : C 3. Reduced setup times are essential for: A. Supporting smaller lot sizes B. Preventing machine problems C. Making larger lot sizes possible D. Reducing machine maintenance time Answer : A 45 4. It is critical that machines used in JIT/LEAN/Lean processes are consistent and reliable. Which of the following philosophies are used to assure that? A. Concurrent engineering B. Total Productive Maintenance (TPM) C. If it isn’t broken, don’t fix it D. Frequent machine replacement Answer : B 5. Which of the following are NOT consistent with JIT/LEAN/Lean manufacturing? A. Partnering with suppliers B. Product flexibility C. Having environmentally controlled warehouses D. Elimination of all kinds of waste Answer : C 46 Chapter Twenty-Two IMPLEMENTING TOTAL QUALITY MANAGEMENT TRUE OR FALSE: Place T or F in the space provided to the left of the statement. ___T__1. In order for total quality to be implemented into an organization, top management must have an unwavering and unquestioned commitment to TQM. ___F__2. It is important for an organization to provide TQM training to all employees before actually starting a total quality program. ___T__3. Top management has to lead, and be actively involved in, the implementation, and its role must not be delegated. __T___4. The Steering Committee establishes the composition of the teams that will execute the projects that have been selected. ___F__5. The organization’s goals and objectives determine its Vision. MULTIPLE CHOICE: Circle the letter before the correct answer in each of the following questions. 1. The traditional management approach: A. Combines leadership and bossmanship in equal parts. B. Has more bossmanship than leadership. C. Has been around since about 1950 when Deming started working with the Japanese. D. Expects employees to find their own ways to improve processes. Answer : B 2. The Steering Committee must develop: A. Vision statement. B. Mission statement. C. Guiding principles. D. All of the above. Answer : D 47 3. The implementation plan must consider and provide for: A. Training of employees, and when to do it. B. Which departments are to be included in the implementation. C. The number of teams to be established. D. Who is to head the implementation. Answer : A 48 4. The steering committee is ideally composed of: A. The head of the Quality Assurance department and managers from other departments. B. The department heads and the managers reporting directly to them. C. The top manager and his/her immediate direct subordinates. D. The top manager and a group of employees most likely to support TQM. Answer : C 5. Infrastructure that supports total quality includes: A. Documented procedures for all key processes. B. An organizational structure that facilitates cross-functional communication. C. An awards and recognition program designed to reward total quality activity and behavior. D. All of the above. Answer : D 49 ANSWERS TO REVIEW QUESTIONS Chapter One THE TOTAL QUALITY APPROACH TO QUALITY MANAGEMENT ACHIEVING ORGANIZATIONAL EXCELLENCE 1. Define the term quality. Quality is a dynamic state associated with products, services, people, processes, and environments that meets or exceeds expectations. 2. What is total quality? Total quality is an approach to doing business that attempts to maximize the competitiveness of an organization through the continual improvement of the quality of its products, services, people, processes, and environments. 3. List and explain the key elements of total quality. Strategically-based Total quality organizations have a comprehensive strategic plan that contains at least the following elements: vision, mission, broad objectives, and activities that must be completed to accomplish the broad objectives. The strategic plan for a total quality organization is designed to give it a sustainable competitive advantage in the marketplace. Customer Focus In a total quality setting, the customer is the driver. This applies to both internal and external customers. Obsession with Quality This means all personnel at all levels approach all aspects of the job from the perspective of "How can we do this better?" When an organization is obsessed with quality, good enough is never good enough. Scientific Approach While it is true that people skills, involvement, and empowerment are important in a total quality setting, they represent only a part of the equation. Another important part of the equation is the use of the scientific approach in structuring work and in decision making and problem solving that relates to the work. Long-Term Commitment Organizations that implement management innovations after attending short-term seminars often fail in their initial attempt to adopt the total quality approach. This is because they approach total quality as just another management innovation rather than as a whole new way of doing business that requires a whole new corporate culture. Teamwork Internal competition tends to use energy that should be focused on improving quality, and, in turn, external competitiveness. Continual Improvement of Systems 50 In order to continually improve the quality of products or services: which is a fundamental goal in a total quality setting. It is necessary to continually improve systems. Continual Process Improvement Products are developed and services are delivered by people using processes within environments (systems). To continually improve the quality of products and services— which is a fundamental goal in a total quality setting—it is necessary to continually improve the processes that make up the organization’s systems. Education and Training Education and training are fundamental to total quality because they represent the best way to improve people on a continual basis. In a total quality organization, everyone is constantly learning. Freedom through Control Involving and empowering employees is fundamental to total quality as a way to simultaneously bring more minds to bear on the decision making process and increase the ownership employees feel in decisions that are made. The freedoms enjoyed in a total quality setting are actually the result of well-planned and carried out controls. Unity of Purpose In order to apply the total quality approach, organizations must have unity of purpose. Collective bargaining is about wages, benefits, and working conditions, not about corporate purpose and vision. Employees should feel more involved and empowered in a total quality setting than in a traditionally managed situation, but the goal of total quality is to enhance competitiveness not to eliminate unions. Employee involvement The basis for involving employees increases the likelihood of a good decision1 a better plan, or a more effective improvement by bring more minds to bear on the situation: not just any minds, but the minds of the people who are closest to the work in quest. It also promotes ownership of decisions by involving the people who will have to implement them. Empowerment means not just involving people but involving them in ways that give them a real voice. Peak Performance When effectively practiced, total quality allows every aspect of an organization to operate at peak levels. This means that personnel and processes operate at their best. Peak performance is essential to organizations that operate in a global environment where competition is intense, constant, and unforgiving. 4. Explain the rationale for the total quality approach to doing business. Total quality is not just one individual concept. It is a number of related concepts pulled together to create a comprehensive approach to doing business. Many people contributed in meaningful ways to the development of the various concepts that are known collectively as total quality. 5. Describe the following concepts: Deming's Fourteen Points His Fourteen Points describe what is necessary for a business to survive and be competitive today. They summarize what a company must do to effect a positive transition from 51 business-as-usual to world-class performance. They contain the essence of all of Dr. Deming's teachings and are the heart of his philosophy. 1. Create constancy of purpose toward the improvement of products and services in order to become competitive, stay in business, and provide jobs. 2. Adopt the new philosophy. Management must learn that it is a new economic age and awaken to the challenge, learn their responsibilities, and take on leadership for change. 3. Stop depending on inspection to achieve quality. Build in quality from the start. 4. Stop awarding contracts on the basis of low bids. 5. Improve continuously and forever the system of production and service, to improve quality and productivity, and thus constantly reduce costs. 6. Institute training on the job. 7. Institute leadership. The purpose of leadership should be to help people and technology work better. 8. Drive out fear so that everyone may work effectively. 9. Break down barriers between departments so that people can work as a team. 10. Eliminate slogans, exhortations, and targets for the workforce. They create adversarial relationships. 11. Eliminate quotas and management by objectives. Substitute leadership. 12. Remove barriers that rob employees of their pride of workmanship. 13. Institute a vigorous program of education and self-improvement. 14. Make the transformation everyone's job and put everyone to work on it. The Deming Cycle The Deming Cycle was developed to link the production of a product with consumer needs and focusing the resources of all departments (research, design, production, and marketing) in a cooperative effort to meet those needs. 1. Conduct consumer research and use it in planning the product (plan). 2. Produce the product (do). 3. Check the product to make sure it was produced in accordance with the plan (Check). 4. Market the product (act). 5. Analyze how the product is received in the marketplace in terms of quality, cost, and other criteria, or how it measures up against expectations (analyze). The Seven Deadly Sins The Seven Deadly Sins summarize Dr. Deming's views on what can inhibit the transformation from business-as-usual to worldclass quality. 1. Lack of constancy of purpose to pan products and services that have a market sufficient to keep the company n business and provide jobs. 2. Emphasis on short-term profits; short4erm thinking that is driven by a fear of unfriendly takeover attempts and pressure from bankers and shareholders to produce dividends. 3. Personal review systems for managers and management by objectives without providing methods of resources to accomplish objectives. Performance evaluations, merit ratings, and annual appraisals are all part of it - its disease. 4. Job hopping by managers. 5. Using only visible data and information in decision making with little or no consideration given to what is not known or cannot be known. 52 6. Excessive medical costs. 7. Excessive costs of liability driven up by lawyers who work on contingency fees. 5. List and explain Juran's main contributions to the quality movement. Juran's three Basic Steps to Progress. These are broad steps that, in Juran's opinion, companies must take if they are to achieve world-class quality. He also believes there is a point of diminishing return that applies to quality and competitiveness. 1. Achieve structured improvements on a continual basis combined with dedication and a sense of urgency. 2. Establish an extensive training program. 3. Establish commitment and leadership on the part of higher management Juran’s Ten Steps to Quality Improvement Ten steps which overlap with Deming's Fourteen Points. They mesh well with the philosophy of quality experts. 1. Build awareness of both the need for improvement and opportunities for improvement. 2. Set goals for improvement. 3. Organize to meet the goals that have been set. 4. Provide training. 5. Implement projects aimed at solving problems. 6. Report progress. 7. Give recognition. 8. Communicate results. 9. Keep score. 10. Maintain momentum by building improvement into the company's regular systems. The Pareto Principle According to this principle, organizations should concentrate their energy on eliminating the vital few sources that cause the majority of problems. This principle is sometimes called the 80/20 rule. 80% of the trouble comes from 20% of the problems. Though named for turn-of-the-century economist, Vilfredo Pareto, it was Dr. Juran who applied this idea to management. Dr. Juran advises us to concentrate on the vital few sources of problems and not be distracted by those of lesser importance. The Juran Trilogy The Juran Trilogy summarizes the three primary managerial functions. They are: Quality Planning, Quality Control, and Quality Improvement 6. Why do some quality initiatives fail? When organizations approach total quality as just another management innovation or, even worse, as a quick fix, their efforts are doomed to fail from the start. 7. What contributions to the quality movement is Philip B. Crosby known for? 53 Philip B. Crosby is best known for his advocacy of zero-effects management and prevention as opposed to statistically acceptable levels of quality. He is also known for his Quality Vaccine and Crosby's Fourteen Steps to Quality Improvement. Crosby's Quality Vaccine consists of 1) Determination, 2) Education, and 3) Implementation. Crosby's Fourteen Steps to Quality Improvement are as follows: 1. Make it dear that management is committed to quality for the long term. 2. Form cross-departmental quality teams. 3. Identify where current and potential problems exist 4. Assess the cost of quality and explain how it is used as a management tool. 5. Increase the quality awareness and personal commitment of all employees. 6. Take immediate action to correct problems identified. 7. Establish a zero defects program. 8. Train supervisors to carry out their responsibilities in the quality program. 9. Hold a Zero Defects Day to ensure all employees are aware there is a new direction. 10. Encourage individuals and teams to establish both personal and team improvement goals. 11. Encourage employees to tell management about obstacles they face in trying to meet quality goals. 12. Recognize employees who participate. 13. Implement quality councils to promote continual communication. 14. Repeat everything to illustrate that quality improvement is a never-ending process. 8. Summarize the most common errors made when starting quality initiatives. Senior management delegation and poor leadership Team mania Deployment process Taking a narrow dogmatic approach Confusion about the differences among education, awareness, inspiration, and skill building. 9. Explain the trends that are affecting the future of quality management are as follows: Increasing global competition. Today’s customers share two common characteristics: 1) they are part of regional trade alliances and 2) they expect both high quality and added value. Increasing customer expectations. Customers want an excellent product or service from an organization that also provides accurate billing, reliable delivery, and after purchase support. Opposing economic pressures. The global marketplace exerts enormous unrelenting pressure on organizations to continually improve quality while simultaneously reducing the prices they charge for goods and services. New approaches to management. Companies that succeed in the global marketplace have learned that you manage budgets, but lead people. 54 Chapter Two QUALITY AND GLOBAL COMPETIVENESS 1. Explain the relationship between quality and competitiveness. Companies that used to compete only on a local, regional, or national level now find themselves competing against companies from throughout the world. Some of these companies find the competition to be more intense than any they have ever encountered. Those who are able to produce world-class quality can compete at this level. 2. Explain how the cost of poor quality can affect competitiveness. The need to improve an organization’s financial condition correlates directly with the process of making and measuring quality improvements. Lower deficiencies will lead to lower total costs. Improvements in product or service features can lead to higher market share at a better price, which means higher revenue. 3. Describe the evolution of the rebuilding effort undertaken by Japan and Germany following World War II. As Japanese and German manufacturers rebuilt, two things became apparent to them: 1) In order to succeed, they would have to compete globally; and 2) In order to compete globally; they would have to produce goods of world-class quality. This meant producing better goods but at reasonable competitive prices. 4. Explain the actions of U.S. manufacturers during the same period on which Japan and Germany were rebuilding following World War II. The U.S. came out of World War II as the only major industrialized nation with its manufacturing sector completely intact. A well-oiled manufacturing sector and the availability of abundant raw materials helped the U.S. become the world leader in the production and export of durable goods. This resulted in a period of unparalleled prosperity and one of the highest standards of living ever experienced by any country. While the U.S. was enjoying its position as the world's preeminent economic superpower, the other industrialized nations of the world, particularly Japan and Germany, were busy rebuilding their manufacturing sectors. The U.S. manufacturers were slow to catch on that the game had changed from mass production with acceptable levels of waste to quality production with things done right the first time every time. With foreign companies, through a combination of better people, better technology, and better management began to eat away at markets, U.S. companies, mistakenly seeing cost rather than quality as the issue, learned that quality was the key to success in the global marketplace, Japan, Germany, Taiwan, and Korea had made major inroads into global markets previously dominated by U.S. manufacturers (i.e., steel, automobiles, computers, and consumer electronics). 5. How does a nation's ability to compete affect its quality of life? A nation's ability to compete in the global marketplace has a direct bearing on the quality of life of its citizens. Because the ability to compete translates into the ability to do a better 55 job of producing quality goods, it is critical that nations and individual organizations within them focus their policies, systems, and resources in a coordinated way on continually improving both quality and competitiveness. 6. Explain how education-related factors can inhibit competitiveness. The quality of a country's education system is a major determinant of the quality of its labor pool. The higher the quality of the labor pool, the higher the quality of entry-level employees. The higher the quality of entry-level employees, the faster they can become productive employees and contribute to the competitiveness of their employers. Consequently, a high-quality education system is an important component of the competitiveness equation. What all this means is that businesses in the U.S. are forced to spend money helping employees learn the basic skills of reading and writing while their competitors are able to devote their training dollars to developing advanced work-related skills. If international competition can be viewed as a footrace, this is the equivalent of forcing U.S. firms to start 100 yards behind the other competitor in a 200-yard race. 7. Compare investment and manufacturing productivity in the U.S with investment and manufacturing productivity in Japan. Investment, from the perspective of global competitiveness, is the percent of gross national