Questions and Answers
Productivity is a tool of measurement that determines the efficiency of the organization in terms of the ratio of output produced with respect to ______.
inputs
The real cost of quality is the cost of avoiding nonconformance and ______.
failure
Quality is one of the key issues which defines an organization's competitive position in the ______.
market
To gain competitive advantage in the market through quality, organizations have adopted the Total Quality ______ (TQM) approach.
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Measuring productivity in production organizations is relatively easy, but measuring productivity for knowledge workers and in the ______ organizations is difficult.
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Control charts such as X-Charts, R-Charts, P-Charts, and C-Charts are tools used for _____ control.
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Total Quality Management (TQM) is based on the premise that quality is the responsibility of everyone involved in the _____ or consumption of goods.
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One of the basic principles of TQM is to continuously _____ the business processes.
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A key TQM practice involves ______ quality management, which focuses on ensuring suppliers meet quality standards.
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The first major principle of TQM is to satisfy the _____ who pays for the product or service.
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Study Notes
Overview of Productivity and Quality Tools
- Productivity measures organizational efficiency based on the output-to-input ratio.
- Profitability is achieved when sales exceed costs.
- Quality expenditures impact the overall cost of products/services.
- Efficient cost management is crucial throughout the market system from manufacturing to consumption.
- Productivity and quality are interrelated; improvements in one can influence the other.
- The cost of quality encompasses expenses related to preventing nonconformance and loss of customers.
- Factors influencing productivity include technology, plant layout, equipment, and machinery.
- Regular reviews by operations managers help maintain and enhance productivity levels.
- Productivity can be assessed as total or partial; measuring knowledge worker productivity poses challenges.
- In service industries, productivity can be tracked using time sheets for task duration and output.
- Quality determines a firm's competitive market position; by the mid-1970s, quality management shifted to a competitive advantage focus.
- Total Quality Management (TQM) is employed by organizations to enhance quality as a competitive asset.
- TQM emphasizes that quality responsibility lies with every employee, not just the quality control department.
- Quality is defined as meeting customer requirements, irrespective of production accuracy.
- Companies can leverage eight dimensions of quality for a competitive edge.
Total Quality Management (TQM)
- TQM extends the responsibility of quality to all stakeholders: management, workforce, suppliers, and customers.
- The aim of TQM is to meet or exceed customer expectations through collaborative efforts.
- Nine common TQM practices include:
- Cross-functional product design
- Process management
- Supplier quality management
- Customer involvement
- Information and feedback
- Committed leadership
- Strategic planning
- Cross-functional training
- Employee involvement
Basic Principles of Total Quality Management
- Customer satisfaction is the foremost TQM principle; customers expect value from purchases.
- Supplier satisfaction is vital; maintaining good relationships with suppliers supports business operations.
- Continuous improvement is essential; organizations must strive to enhance processes consistently to stay competitive.
Principles of Quality Management
- Quality management relies on key principles guiding organizations to improve performance, notably:
- Customer focus: organizations must prioritize customer needs and expectations.
- Supplier relationships are critical for maintaining a quality supply chain.
- Continuous innovation is necessary in processes to keep pace with competitors.
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Description
This quiz covers Chapter 1, which focuses on the concepts of productivity and quality tools in measuring organizational efficiency. It explores how profitability is influenced by cost management and quality specifications in product and service delivery. Understanding these tools is essential for optimizing performance and achieving business success.
