ICPM 3 - Chapter 7

A quality control tool used to predict product quality of a batch of raw

materials or products by inspecting a random sample size for defects is

best known as which of the following?

• Stratification

• Acceptance sampling

• Histogram

• TQM check sheet

• Pareto analysis

__________ measures supplier quality by calculating the percentage of

defective materials received from a specific supplier over time.

• Customer response time

• Sustainable yield

• Number of defects per unit

• Supplier defects

• First pass yield

Which of the following is an important reason for subordinates to

participate in goal setting?

• It strengthens subordinates’ commitment to achieving goals and

  meeting budgets.

• It centralizes the responsibility of setting goals and achieving those goals.

• It enables direct supervision and close scrutiny of employees.

• It enables complete evaluation of employees over relatively short periods.

• It enables managers to set goals that are slightly higher above an

  employee’s reach.

__________ is the process by which managers monitor and regulate the

efficiency and effectiveness of the workers in an organization.

• Planning

• Organizing

• Leading

• Controlling

• Coordinating

Which type of financial ratio measures how well the managers of L&B

Rentals, Inc. are converting the organization’s assets into cash or sales?

• Leverage ratios

• Liquidity ratios

• Profit ratios

• Current ratios

• Activity ratios

Which of the following types of controls do managers use during the

output stage of transforming raw materials into finished goods?

• Concurrent control

• Feedforward control

• Feedback control

• Bureaucratic control

• Clan control

Management by Objectives starts when top managers do which of the

following?

• Determine subordinates’ goals.

• Review subordinates’ progress toward meeting goals.

• Resort to direct supervision.

• Establish overall organizational objectives.

• Link performance evaluations to rewards.

Once managers have chosen the standards to evaluate performance, the

next step in the control process is to __________.

• Measure actual performance.

• Compare actual performance against chosen standards of performance.

• Initiate corrective action if the chosen standard is not being achieved.

• Evaluate the results of the comparison.

• Revise performance standards.

An organization monitors the number of customer returns for each

product model as a part of an attempt to recognize defective products. This

is an example of which of the following?

• Concurrent control

• Feedforward control

• Feedback control

• Bureaucratic control

• Clan control

Which of the following can hurt the performance of an organization?

• Adopting realistic performance standards.

• Setting stretch goals for employees.

• Establishing operating budgets that regulate how managers and workers

  attain their goals.

• Using output controls to motivate managers and employees at different

  levels.

• Focusing on only one standard instead of a hundred different

  standards.