To Build a Total Quality Culture and Achieve Full Value

question 27

Multiple Choice

To build a total quality culture and achieve full value from the use of TQM or Six Sigma initiatives,managers can take such action steps as

• A) signaling unequivocal and unyielding commitment to total quality and operating excellence; encouraging quality-supportive behaviors on the part of employees, empowering employees to make changes to improve quality; and using online systems to give employees immediate access to best practice information and experiences.
• B) requiring all company personnel to attend Six Sigma training programs and achieve "black belt" status.
• C) instituting greater centralization of decision-making to help enforce strict compliance with quality control policies and procedures.
• D) stressing 100% accurate individual performance rather than group or team performance.
• E) dismissing employees who repeatedly fail to achieve 100% accuracy in their work after a 12-month trial period.

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Definitions:

Residual Income

The amount of income that an individual or business has after all expenses and debts have been paid.

Return on Investment

A financial metric used to gauge the profitability of an investment, calculated by dividing the profit gained from an investment by the cost of the investment.

Operating Income

EBIT, which stands for Earnings Before Interest and Taxes, indicates a firm's profit derived specifically from its primary business activities.

Investment Turnover

A measure of a company's efficiency in using its assets to generate sales revenue; calculated as sales divided by the investment in assets.