A Quality Circle Studying the Problem of Incorrect Prices on Purchase

question 64

Multiple Choice

A quality circle studying the problem of incorrect prices on purchase orders identified several potential causes: incorrect information from requesting department, out-of-date catalogues from suppliers, defective computer software, and worker practices in the purchasing department.These potential cause-and-effect relationships are best illustrated by a ___.

• A)check list
• B)Pareto chart
• C)control chart
• D)point-and-figure chart
• E)Fishbone diagram

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Definitions:

Scientific Management

Scientific management is a system of improving productivity developed in the 1910s by Frederick W. Taylor. After analyzing the movements of workers as they did their jobs, Taylor trained them to eliminate unnecessary actions and greatly improve their efficiency.

Unnecessary Actions

Actions or efforts that do not contribute to achieving a goal or are not required for a successful outcome.

Working Conditions

The environment, terms, and circumstances under which individuals perform their jobs, including aspects like safety, hours, and rights.

Fringe Benefits

Additional benefits supplementing an employee's salary, such as health insurance, paid vacation, allowances, and retirement plans.