In: Accounting
Q1. TQM seeks to improve the quality of both the product and the work environment. (T/F)
Q2. In order to be effective, everyone in the organization must be involved in the total quality management program. (T/F)
Q3. Total quality management has many of the same characteristics as the JIT philosophy (T/F)
Q4. Studies have shown that improvements in quality can lead to
a. A higher total cost as additional costs are spent to improve quality.
b. Lower productivity because of the need to meet a higher quality standard.
c. Increases in throughput time
d. Increased warranty costs
e. Increases in productivity (i.e., lower manufacturing costs)
Q5. Which of the following is not included in the cost of quality?
a. Inspection costs
b. Rework costs
c. Inventory ordering costs
d. Costs of handling customer complaints
Answer 1:
True
Reason: Total
Quality Management (TQM) is a structured approach to overall
organizational management. The focus of the process is to improve
the quality of organizations outputs, including goods and services,
through continual improvement of internal practices.
Answer 2:
True
Reason: TQM is
considered a customer-focused process and aims for continual
improvement of business operations. It strives to ensure all
associated employees work toward the common goals of improving
product or service quality, as well as improving the procedures
that are in place for production.
Answer 3:
True
Reason: Some of the common factors are build quality into all processes, preventive maintenance, focus on continuous improvement and working environment.
Answer 4:
e. Increases in productivity (i.e., lower manufacturing costs)
Reason: As improvement in quality is achieved b improving all internal activities and procedures and therefore reduces waste and improve productivity.
Answer 5:
c. Inventory ordering costs
Reason: Cost of quality includes Inspection costs (appraisal cost), Rework costs (internal failure cost) and Costs of handling customer complaints (external failure cost).