Total Quality Management

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CPA Business Environment and Concepts (BEC) › Total Quality Management

Questions 1 - 6
1

Which of the following is not a characteristic of Total Quality Management?

Continuous Improvement

Waste Reduction

Customer Focus

Quality Circles

Explanation

TQM focuses on customer needs, continuous improvements, and quality circles. Waste reduction is a quality of lean manufacturing, not TQM.

2

Which of the following management philosophies does not focus on quality?

Gap Analysis

Total Quality Management

Absolute conformance

Lean

Explanation

The main objective in lean manufacturing is waste reduction. Although customer requirements and demand pull serve as the basis for the approach, quality is not the most prominent concept.

3

Which of the following uses analysis of production processes to ensure that resource uses stay within target costs?

Activity based costing

Just-in-time

Value Chain Analysis

Kaizen

Explanation

Kaizen, or continuous improvement, occurs at the manufacturing stage where the ongoing search for cost reductions takes the form of analysis of production processes to ensure that resource uses stay within target costs.

4

Which of the following is not a requirement of just in time systems?

Supplies received as needed throughout the day

Employee empowerment

Strong job specialization

Reduced setup time

Explanation

Just in time means that employees with multiple skills are used more efficiently and will not specialize in merely one job or task.

5

Which of the following is not a typical characteristic of a just in time production environment?

Push through system

Lot sizes equal to one

Insignificant setup times and costs

Balanced and level workloads

Explanation

Just in time has the goal to minimize the level of inventory carried. It has a pull approach rather than a push approach.

6

There are 7 factors critical to total quality management. Which is not one of them?

Customer Focus

Objective measures

Timely recognition

Executive compensation

Explanation

Total quality management focuses on a customer-focused experience and compensation of the executives has no bearing on a customer.

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