Tqm Quiz 5

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CHAPTER 5 COMPETITIVE ADVANTAGE AND STRATEGIC MANAGEMENT FOR PERFORMANCE EXCELLENCE

TRUE/FALSE QUESTIONS

1.

Core competence process by which the members of an organization envision its future and develop the necessary procedures and operations to carry out that vision. Answer: False AACSB: Analytic Page: 188-189

2.

Improved conformance in production leads to lower manufacturing and service costs. Answer: True AACSB: Reflective Thinking Page: 190

3.

Market share is inversely related to perceived value of a product. Answer: True AACSB: Reflective Thinking Page: 191

4.

Firms focused on differentiation produce high volumes of mature products and achieve their competitive advantage through low prices. Answer: False AACSB: Reflective Thinking Page: 193

5.

High productivity and high capacity utilization leads to higher prices. Answer: False AACSB: Reflective Thinking Page: 193

6.

Minimizing the number of parts, eliminating fasteners, making parts symmetric whenever possible, avoiding rigid and stiff parts, and using one-sided assembly designs are some of the approaches companies use to achieve cost leadership for high-volume products.

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Answer: True AACSB: Reflective Thinking Page: 193

7.

Having a manufacturing system designed for flexible sequence of operations is a strategy used for cost-leadership for high-volume products. Answer: False AACSB: Reflective Thinking Page: 194

8.

Often, a firm with a cost-leadership strategy can command premium prices and achieve higher profits. Answer: False AACSB: Reflective Thinking Page: 194 The competitive advantage resulting from an organization‟s people can drive low cost and differentiation. Answer: True AACSB: Reflective Thinking Page: 195

9.

10.

The Taylor philosophy contributed to the development of a cooperative relationship between labor and management. Answer: False AACSB: Reflective Thinking Page: 196

11.

The most significant feature of the Taylor system was its focus on using the knowledge and creativity of the workforce. Answer: False AACSB: Reflective Thinking Page: 196

12.

Traditional management strategists advocated focusing on a single quality-related dimension. Answer: True AACSB: Analytic Page: 196

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13.

Durability refers to the probability of a product‟s surviving over a specified period of time under stated conditions of use: Answer: False AACSB: Analytic Page: 197

14.

The horsepower of an engine or the sound quality of a stereo amplifier are examples of the feature dimension of product quality. Answer: False AACSB: Reflective Thinking Page: 197

15.

Design review is a technique in quality engineering in which formal statistical experiments are applied to determine the best combinations of product and process parameters for high quality and low cost. Answer: False AACSB: Analytic Page: 198

16.

Two key components of service system quality are employees and information technology. Answer: True AACSB: Analytic Page: 199

17.

Attractive facilities, appropriately dressed employees, and well-designed forms that are easy to read and interpret are examples of the „tangibles‟ dimension of service quality. Answer: True AACSB: Analytic Page: 201

18.

Flexibility refers to the ability to produce a wide range of products and options. Answer: False AACSB: Analytic Page: 202

19.

Standard products are the basis for cost-leadership. Answer: True

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AACSB: Reflective Thinking Page: 202

20.

According to the...
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