Question

In: Accounting

Q1. TQM seeks to improve the quality of both the product and the work environment. (T/F)...

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

Solutions

Expert Solution

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).


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