CHAPTER 01—Introduction to Quality and Performance Excellence
TRUE/FALSE
1. The view of quality as the satisfaction of customer needs is often called fitness for use.
ANS: T DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: DISC: Operations Management TOP: A-Head: Quality and Performance Excellence
KEY: Bloom's: Knowledge
2. Since quality relates to goods or services, only for-profit organizations can benefit from adopting
performance excellence procedures.
ANS: F DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: DISC: Operations Management TOP: A-Head: Quality and Performance Excellence
KEY: Bloom's: Knowledge
3. “Scientific management” involved skilled craftspeople who served both as manufacturers and
inspectors, building quality into their products.
ANS: F DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: DISC: Operations Management TOP: A-Head: A Brief History
KEY: Bloom's: Knowledge
4. After World War II, the first country to adopt quality initiatives and improvement in industry was the
United States.
ANS: F DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: DISC: Operations Management TOP: A-Head: A Brief History
KEY: Bloom's: Knowledge
5. The Deming Prize was constituted by the United States to raise awareness of quality and recognize
national role models.
ANS: T DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: DISC: Operations Management TOP: A-Head: A Brief History
KEY: Bloom's: Knowledge
6. A successful organization is one which integrates quality principles with its mundane daily work
activities.
ANS: T DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: DISC: Operations Management TOP: A-Head: Quality in Organizations
KEY: Bloom's: Knowledge
7. In quality control, tolerances are acceptable deviations from the values assigned to the targets.
ANS: T DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: DISC: Operations Management TOP: A-Head: Quality in Organizations
, KEY: Bloom's: Knowledge
8. Performance excellence can be defined as “any primary or complementary activity that does not
directly produce a physical product.”
ANS: F DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: DISC: Operations Management TOP: A-Head: Quality in Organizations
KEY: Bloom's: Knowledge
9. A difference between service and manufacturing is that manufacturing is performed away from the
customer whereas customers are involved in the service process.
ANS: T DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: DISC: Operations Management TOP: A-Head: Quality in Organizations
KEY: Bloom's: Knowledge
10. Not-for-profit organizations are adopting quality principles because of their impact on the bottom line.
ANS: F DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: DISC: Operations Management TOP: A-Head: Quality in Organizations
KEY: Bloom's: Knowledge
11. From a total quality perspective, all strategic decisions a company makes are “customer-
driven.”
ANS: T DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: DISC: Operations Management
TOP: A-Head: Principles and Practices of Total Quality and Performance Excellence
KEY: Bloom's: Knowledge
12. Total Quality views everyone inside the enterprise as a customer of an internal or external
supplier and a supplier of an external or internal customer.
ANS: T DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: DISC: Operations Management
TOP: A-Head: Principles and Practices of Total Quality and Performance Excellence
KEY: Bloom's: Knowledge
13. Employee engagement is manifest by empowerment.
ANS: T DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: DISC: Operations Management
TOP: A-Head: Principles and Practices of Total Quality and Performance Excellence
KEY: Bloom's: Knowledge
14. Competitive behavior—one person against another or one group against another—is one of the basic
principles of TQ.
ANS: F DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: DISC: Operations Management
, TOP: A-Head: Principles and Practices of Total Quality and Performance Excellence
KEY: Bloom's: Knowledge
15. The traditional way of viewing an organization is by surveying the horizontal dimension—by keeping
an eye on an organization chart.
ANS: F DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: DISC: Operations Management
TOP: A-Head: Principles and Practices of Total Quality and Performance Excellence
KEY: Bloom's: Knowledge
16. In terms of total quality management, “continuous improvement” refers only to breakthrough
improvement.
ANS: F DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: DISC: Operations Management
TOP: A-Head: Principles and Practices of Total Quality and Performance Excellence
KEY: Bloom's: Knowledge
17. According to Noriaki Kano’s three classes of needs, the required safety features in an
automobile are an example of a satisfier.
ANS: F DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: DISC: Operations Management
TOP: A-Head: Principles and Practices of Total Quality and Performance Excellence
KEY: Bloom's: Knowledge
18. Process time refers to the time it takes to accomplish one cycle of a process.
ANS: F DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: DISC: Operations Management
TOP: A-Head: Principles and Practices of Total Quality and Performance Excellence
KEY: Bloom's: Knowledge
19. A firm that is characterized by flexibility and short cycle times is considered to be agile.
ANS: T DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: DISC: Operations Management
TOP: A-Head: Principles and Practices of Total Quality and Performance Excellence
KEY: Bloom's: Knowledge
20. Agency theory views the management system as one based on social and human values, whereas total
quality is based on an economic perspective.
ANS: F DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: DISC: Operations Management TOP: A-Head: TQ and Agency Theory
KEY: Bloom's: Knowledge
21. Agency theory suggests that information may be concealed to advance self-interests.
, ANS: T DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: DISC: Operations Management TOP: A-Head: TQ and Agency Theory
KEY: Bloom's: Knowledge
22. Agency theory assumes that risks are to be minimized and shared between the two parties.
ANS: T DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: DISC: Operations Management TOP: A-Head: TQ and Agency Theory
KEY: Bloom's: Knowledge
23. Leaders in agency theory provide a quality vision and play a strategic role in the organization.
ANS: F DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: DISC: Operations Management TOP: A-Head: TQ and Agency Theory
KEY: Bloom's: Knowledge
24. In the organismic model of organizations, organizations are considered to be autonomous
entities.
ANS: F DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: DISC: Operations Management TOP: A-Head: TQ and Organizational Models
KEY: Bloom's: Knowledge
25. In the organismic model of organizations, work is reduced to elementary tasks with a focus on
efficiency, conformity, and compliance.
ANS: F DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: DISC: Operations Management TOP: A-Head: TQ and Organizational Models
KEY: Bloom's: Knowledge
26. The mechanical organizational model assumes that systems goals such as the need to survive displace
performance goals, such as profit.
ANS: F DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: DISC: Operations Management TOP: A-Head: TQ and Organizational Models
KEY: Bloom's: Knowledge
27. The organismic model of organizations views an organization as a tool or a machine designed solely to
create profits for its owners.
ANS: F DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: DISC: Operations Management TOP: A-Head: TQ and Organizational Models
KEY: Bloom's: Knowledge
28. In the cultural organizational model, managers relinquish control and share power in order to meet the
needs of the many individuals.
ANS: T DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: DISC: Operations Management TOP: A-Head: TQ and Organizational Models
KEY: Bloom's: Knowledge
TRUE/FALSE
1. The view of quality as the satisfaction of customer needs is often called fitness for use.
ANS: T DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: DISC: Operations Management TOP: A-Head: Quality and Performance Excellence
KEY: Bloom's: Knowledge
2. Since quality relates to goods or services, only for-profit organizations can benefit from adopting
performance excellence procedures.
ANS: F DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: DISC: Operations Management TOP: A-Head: Quality and Performance Excellence
KEY: Bloom's: Knowledge
3. “Scientific management” involved skilled craftspeople who served both as manufacturers and
inspectors, building quality into their products.
ANS: F DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: DISC: Operations Management TOP: A-Head: A Brief History
KEY: Bloom's: Knowledge
4. After World War II, the first country to adopt quality initiatives and improvement in industry was the
United States.
ANS: F DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: DISC: Operations Management TOP: A-Head: A Brief History
KEY: Bloom's: Knowledge
5. The Deming Prize was constituted by the United States to raise awareness of quality and recognize
national role models.
ANS: T DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: DISC: Operations Management TOP: A-Head: A Brief History
KEY: Bloom's: Knowledge
6. A successful organization is one which integrates quality principles with its mundane daily work
activities.
ANS: T DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: DISC: Operations Management TOP: A-Head: Quality in Organizations
KEY: Bloom's: Knowledge
7. In quality control, tolerances are acceptable deviations from the values assigned to the targets.
ANS: T DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: DISC: Operations Management TOP: A-Head: Quality in Organizations
, KEY: Bloom's: Knowledge
8. Performance excellence can be defined as “any primary or complementary activity that does not
directly produce a physical product.”
ANS: F DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: DISC: Operations Management TOP: A-Head: Quality in Organizations
KEY: Bloom's: Knowledge
9. A difference between service and manufacturing is that manufacturing is performed away from the
customer whereas customers are involved in the service process.
ANS: T DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: DISC: Operations Management TOP: A-Head: Quality in Organizations
KEY: Bloom's: Knowledge
10. Not-for-profit organizations are adopting quality principles because of their impact on the bottom line.
ANS: F DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: DISC: Operations Management TOP: A-Head: Quality in Organizations
KEY: Bloom's: Knowledge
11. From a total quality perspective, all strategic decisions a company makes are “customer-
driven.”
ANS: T DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: DISC: Operations Management
TOP: A-Head: Principles and Practices of Total Quality and Performance Excellence
KEY: Bloom's: Knowledge
12. Total Quality views everyone inside the enterprise as a customer of an internal or external
supplier and a supplier of an external or internal customer.
ANS: T DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: DISC: Operations Management
TOP: A-Head: Principles and Practices of Total Quality and Performance Excellence
KEY: Bloom's: Knowledge
13. Employee engagement is manifest by empowerment.
ANS: T DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: DISC: Operations Management
TOP: A-Head: Principles and Practices of Total Quality and Performance Excellence
KEY: Bloom's: Knowledge
14. Competitive behavior—one person against another or one group against another—is one of the basic
principles of TQ.
ANS: F DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: DISC: Operations Management
, TOP: A-Head: Principles and Practices of Total Quality and Performance Excellence
KEY: Bloom's: Knowledge
15. The traditional way of viewing an organization is by surveying the horizontal dimension—by keeping
an eye on an organization chart.
ANS: F DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: DISC: Operations Management
TOP: A-Head: Principles and Practices of Total Quality and Performance Excellence
KEY: Bloom's: Knowledge
16. In terms of total quality management, “continuous improvement” refers only to breakthrough
improvement.
ANS: F DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: DISC: Operations Management
TOP: A-Head: Principles and Practices of Total Quality and Performance Excellence
KEY: Bloom's: Knowledge
17. According to Noriaki Kano’s three classes of needs, the required safety features in an
automobile are an example of a satisfier.
ANS: F DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: DISC: Operations Management
TOP: A-Head: Principles and Practices of Total Quality and Performance Excellence
KEY: Bloom's: Knowledge
18. Process time refers to the time it takes to accomplish one cycle of a process.
ANS: F DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: DISC: Operations Management
TOP: A-Head: Principles and Practices of Total Quality and Performance Excellence
KEY: Bloom's: Knowledge
19. A firm that is characterized by flexibility and short cycle times is considered to be agile.
ANS: T DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: DISC: Operations Management
TOP: A-Head: Principles and Practices of Total Quality and Performance Excellence
KEY: Bloom's: Knowledge
20. Agency theory views the management system as one based on social and human values, whereas total
quality is based on an economic perspective.
ANS: F DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: DISC: Operations Management TOP: A-Head: TQ and Agency Theory
KEY: Bloom's: Knowledge
21. Agency theory suggests that information may be concealed to advance self-interests.
, ANS: T DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: DISC: Operations Management TOP: A-Head: TQ and Agency Theory
KEY: Bloom's: Knowledge
22. Agency theory assumes that risks are to be minimized and shared between the two parties.
ANS: T DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: DISC: Operations Management TOP: A-Head: TQ and Agency Theory
KEY: Bloom's: Knowledge
23. Leaders in agency theory provide a quality vision and play a strategic role in the organization.
ANS: F DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: DISC: Operations Management TOP: A-Head: TQ and Agency Theory
KEY: Bloom's: Knowledge
24. In the organismic model of organizations, organizations are considered to be autonomous
entities.
ANS: F DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: DISC: Operations Management TOP: A-Head: TQ and Organizational Models
KEY: Bloom's: Knowledge
25. In the organismic model of organizations, work is reduced to elementary tasks with a focus on
efficiency, conformity, and compliance.
ANS: F DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: DISC: Operations Management TOP: A-Head: TQ and Organizational Models
KEY: Bloom's: Knowledge
26. The mechanical organizational model assumes that systems goals such as the need to survive displace
performance goals, such as profit.
ANS: F DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: DISC: Operations Management TOP: A-Head: TQ and Organizational Models
KEY: Bloom's: Knowledge
27. The organismic model of organizations views an organization as a tool or a machine designed solely to
create profits for its owners.
ANS: F DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: DISC: Operations Management TOP: A-Head: TQ and Organizational Models
KEY: Bloom's: Knowledge
28. In the cultural organizational model, managers relinquish control and share power in order to meet the
needs of the many individuals.
ANS: T DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: DISC: Operations Management TOP: A-Head: TQ and Organizational Models
KEY: Bloom's: Knowledge
