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IFPC Exam on Management Theory and
Practice Ch. 16 Smart book Questions
and Answers.
What term is used to describe the wise and cost-effective use of
resources? - Correct Ans: ✅Efficiency
Quality control ______. - Correct Ans: ✅is the strategy for minimizing errors by managing each stage of production
Which perspective in the balanced scorecard approach addresses
how the organization can continue to improve? - Correct Ans:
✅Innovation and learning perspective
Within the quality management viewpoint, quality _______ focuses on the performance of workers and urges employees to strive for
"zero defects" in the production of goods and services. - Correct
Ans: ✅assurance
A visual representation of the four perspectives of the balanced scorecard that enables managers to communicate their goals so that everyone in the company can understand how their jobs are linked to the overall objectives of the organization is called a ______. -
Correct Ans: ✅strategy map
Deming management proposed ideas for making organizations more
responsive, more democratic, and ______. - Correct Ans: ✅less wasteful
One principle of Deming management is that quality should be aimed
at ______. - Correct Ans: ✅the needs of the consumer
The ability of a product or service to meet customer needs refers to
______. - Correct Ans: ✅quality
The strategy for minimizing errors at each stage of production is
called _____. - Correct Ans: ✅quality control
Which approach is a comprehensive approach, led by top management and supported throughout the organization, and dedicated to continuous quality improvement, training, and
customer satisfaction? - Correct Ans: ✅Total quality management
The goal of quality assurance is _____. - Correct Ans: ✅No defects
What are the components of total quality management (TQM)?
(Choose every correct answer.) - Correct Ans: ✅Make continuous improvement a priority.
Use accurate standards to identify and eliminate problems.
Get every employee involved.
Listen to and learn from customers and employees.
The four components of ______ are to make continuous improvement a priority, get every employee involved, listen to and learn from customers and employees, and use accurate standards to
identify and eliminate problems. - Correct Ans: ✅total quality management
What are assumptions made by continuous improvement
orientation? (Choose every correct answer.) - Correct Ans: ✅It is better to make small improvements all the time.
It is less expensive to do something right the first time.
The two core principles of total ______ management are people
orientation and improvement orientation. - Correct Ans: ✅quality
Since service industries do not produce a tangible product, often
customer satisfaction may be a matter of ______. - Correct Ans:
✅perception
What are assumptions of the people orientation of TQM? - Correct
Ans: ✅People will focus on quality if given empowerment.
TQM requires training, teamwork, and cross-functional efforts.
What type of improvement is defined as ongoing small, incremental
improvements in all parts of an organization? - Correct Ans:
✅Continuous
What is defined as the subcontracting of services and operations to
an outside vendor? - Correct Ans: ✅Outsourcing
Improvement orientation is based on the belief that performance
gains are best achieved by replacing existing procedures. - Correct
Ans: ✅False
Reason:
Improvement orientation assumes that it is better to make small improvements all the time.
Reduced cycle time is the direct result of ______. - Correct Ans:
✅decreasing the steps in a work process
In the service industry, customer satisfaction is often based on
perception. - Correct Ans: ✅True
What are characteristics of the production-run samples used for
statistical process control? (Choose every correct answer.) - Correct
Ans: ✅They are chosen randomly.
They are taken periodically.
Which of the following is a statistical analysis process that reduces defects in manufacturing and service-related processes and requires no more than 3.4 defects per million products or procedures? -
Correct Ans: ✅Six Sigma
Which activities related to internal business control are powered by
AI? (Choose every correct answer.) - Correct Ans: ✅Improving productivity
Boosting supply-chain management
Decreasing defects
The acceptable threshold for quality defects according to Six Sigma standards is 3.4 defects per ______ products or procedures. -
Correct Ans: ✅1,000,
Practices that use artificial intelligence to reduce defects, shorten
downtimes, and facilitate transitions are called - Correct Ans:
✅Smart Manufacturing
The quality-control procedures outlined by ISO 9000 certification are based on the honor system that the company with the certification
will carry out procedures as promised. - Correct Ans: ✅False
Reason:
ISO 9000 certification consists of procedures that can be verified by independent quality-control experts.
Which of the following statements concerning the ISO 14000 series is
true? - Correct Ans: ✅It identifies standards for environmental performance.
What are two ways that using AI can increase productivity? - Correct
Ans: ✅Speeding up decision making
Gathering performance data
What are key inhibitors to implementing TQM successfully? - Correct
Ans: ✅The failure to provide evidence supporting previous improvement activities
The inability to develop a culture of quality
Businesses can improve management of the supply (Blank) through
the use of AI. - Correct Ans: ✅Chain
The sequence of suppliers that contribute to creating and delivering
a product is known as the ______. - Correct Ans: ✅supply chain
What is true about product recalls in the 21st century? - Correct
Ans: ✅They have cost businesses billions of dollars.
Better Products Company recently issued its employees identification tags that contain a chip that records how long individual workers spend at their workstations and how many times they visit the restroom. Which function might this technology serve?
- Correct Ans: ✅Reducing company time wasted by employees
What do critics fear may result from employee monitoring
programs? - Correct Ans: ✅Loss of privacy
They have tools for sharing tasks.
They offer help with task management.
Which are advantages associated with electronic monitoring of
workers? (Choose every correct answer.) - Correct Ans: ✅Reduction of employee theft
Ensuring use of safety practices
Identification of work-process bottlenecks
Which of the following are among the keys to managerial success?
(Choose every correct answer.) - Correct Ans: ✅Treat people as if they matter, because they do.
Fine-tune your people skills.
Encourage self-discovery and be realistic.
Learn how to develop leadership skills.
What are some of the downsides to electronic monitoring of
employees? - Correct Ans: ✅Employees may leave the job.
It is intrusive.
Data can be misused.
How can managers help ensure that employees will accept
monitoring of their time and activities? - Correct Ans:
✅Communicate expectations clearly.
What are recommended actions for managing your career? (Choose
every correct answer.) - Correct Ans: ✅Make every day count.
Network with others in your profession.
Stay informed.
Which of the following are readily accessed technological resources
for self-improvement? (Choose every correct answer.) - Correct Ans:
✅Podcasts
Online classes
Apps for mobile devices
Petra adjusts her management style based on the reaction of her employees to a project. She does not employ the same tactics every
time. What approach to management is Petra using? - Correct Ans:
✅Flexibility
What are recommended actions for managing your career? (Choose
every correct answer.) - Correct Ans: ✅
Which management function is involved with monitoring performance, comparing it with goals, and taking corrective action as
needed? - Correct Ans: ✅Controlling
What are the four management functions? (Choose every correct
answer.) - Correct Ans: ✅Leading
organizing
planning
To detect opportunities
To reduce costs and increase productivity
To adapt to change and uncertainty
When Jensen asked his boss, "How many books do we want to sell by
November?" he was trying to establish a(n) ______. - Correct Ans:
✅control standard
Which may be the cause of an "out-of-control" indication on a
control chart? (Choose every correct answer.) - Correct Ans: ✅Loss of a large percentage of the workforce due to illness
Sudden decrease in production due to a materials shortage
Which of the following is the second step of the control process? -
Correct Ans: ✅Measure performance
Which of the following represent potential actions that a manager may take in the fourth step of the control process? (Choose every
correct answer.) - Correct Ans: ✅Take action to correct negative performance
Recognize and reinforce positive performance
Make no changes
At the end of the year, Kavita compares each employee's performance to the standards that were set at the beginning of the
year. Which step of the organizational control process does this
exemplify? - Correct Ans: ✅Third
The ______ approach gives upper management a quick but thorough view of the organization via four indicators: customer satisfaction, internal processes, innovation and improvement activities, and
financial measures. - Correct Ans: ✅balanced scorecard
Marci rewarded her team with a bonus when she found that their performance exceeded the standards she had set. Which step of the
control process does giving the reward represent? - Correct Ans:
✅Step four
The ______ perspective of the balanced scorecard asks the question,
"How do we look to our shareholders?" - Correct Ans: ✅financial
Sonja is a barista. Her manager has been hearing reports that Sonja's lattes taste like the milk is burned. Her manager talks to Sonja about these reports and shows her some tricks for steaming the milk to the correct temperature. This is an example of which type of control? -
Correct Ans: ✅Feedback
What are the indicators that make up the balanced scorecard? -
Correct Ans: ✅Internal processes
Financial measures
Customer satisfaction
Innovation and improvement activities
Using the previous budget as a starting point and making adjustments to the funds allocated to each expense category is the
budgeting approach known as ______ budgeting. - Correct Ans:
✅incremental
A summary of some aspect of an organization's financial status such
as a balance sheet and an income statement is a ______. - Correct
Ans: ✅financial statement
A fixed budget, also known as a static budget, has resources allocated on a single estimate of costs. That budget amount ______.
- Correct Ans: ✅cannot be adjusted over time
Greg prepares a financial statement for his business, listing the company's current assets, fixed assets, and the debts that are owed to suppliers and lenders. What document is Greg preparing for his
business? - Correct Ans: ✅Balance sheet
Assets not easily converted to cash, such as property, buildings, and equipment, are classified on a firm's balance sheet as ______ assets.
Nicole has enough money in her budget to allow her to hire temporary help for the holiday rush. What type of budget does this
represent? - Correct Ans: ✅Variable
Debts or claims by suppliers and lenders against the assets of a company are classified as ______ on the company's balance sheet. -
Correct Ans: ✅liabilities
A firm's ______ statement summarizes its financial results (revenues and expenses) over a specified period of time, such as a month,
quarter or year. - Correct Ans: ✅income
What are basic types of financial statements? (Choose every correct
answer.) - Correct Ans: ✅Income statement
Balance sheet
Dicte has a small business making beaded jewelry. The costs of purchasing the beads, semi-precious stones, clasps, and other supplies used to make the jewelry and the rent on her store are the ______ of her business, whereas the assets resulting from the sale of
her jewelry are the business's ______. - Correct Ans: ✅expenses; revenues
Which report summarizes the overall financial worth of an organization, such as assets and liabilities, at a specific point in time?
- Correct Ans: ✅Balance sheet
A report of the cash a business earns and spends over a period of
time is the statement of cash (Blank) - Correct Ans: ✅flow or flows
Actions a company takes to keep customers from leaving to buy from
rival businesses are together called customer - Correct Ans:
✅retention
What best describes what is reported by a cash flow statement? -
Correct Ans: ✅Money generated and used during a specific period
Which balanced scorecard perspective asks the question, "At what
must we excel?" - Correct Ans: ✅The internal business perspective
Indicators created by mathematical formulas using a company's financial information for comparison purposes are called ______. -
Correct Ans: ✅financial ratios
The ______ perspective on the balanced scorecard approach focuses on the analysis of different types of customers, their level of satisfaction, and the processes used to deliver products and services
to customers. - Correct Ans: ✅customer
Outputs divided by inputs over a specific period of time equals
______. - Correct Ans: ✅productivity
Why is customer satisfaction so important? - Correct Ans: ✅Getting new customers costs more than retaining them.
What is the term for the set of guidelines, ethics, or ideas that
represent the most efficient or prudent course of action? - Correct
Ans: ✅Best practices
Which are effective techniques for keeping customers? - Correct
Ans: ✅Managing their expectations
Personalizing their shopping experience
Providing extra service
The ______ perspective of the balanced scorecard approach examines such metrics as productivity, efficiency, quality, and safety.
- Correct Ans: ✅internal business
What is the best definition of efficiency? - Correct Ans: ✅Making the most cost-effective use of time and resources
The balanced scorecard perspective that assesses whether or not the organization encourages employees to make suggestions and question the status quo is known as the ______ perspective. -
Correct Ans: ✅innovation and learning
Productivity is defined by the formula of outputs divided by ______
for a specified period of time. - Correct Ans: ✅inputs
A _______ map is a visual representation of the four perspectives of the balanced scorecard that enables managers to communicate their goals so that everyone in the company can understand how their
