Refer to the Scenario Below to Answer the Following Questions

question 81

Multiple Choice

Refer to the scenario below to answer the following questions.
Embarking on TQM at Maestro Motors (Scenario)
Hector glanced at the watch and sighed. It was already 6:30 and he should be heading home for dinner. Dina would be mad because he was late again. He closed the main garage door at his auto repair shop, Maestro Motors. His two mechanics has just left even though the queue of cars waiting for repairs was longer than usual. He couldn't ask them to work overtime every night. Things were not working well at the moment and he needed to do something to get things turned around. Last night, over a beer at nearby pub, his pal Rodrigo told him about something called total quality management. It sounded like something he should look into and immediately, not in some vague future. It was not only the backup in work; he had received more than the usual number of calls from irate customers. Mostly it was about the delays in getting the cars repaired. Some, however, were about the repairs themselves. Some had even brought their cars back for re-work. Hector was determined to turn things around and that evening, after Dina and the kids were in bed, he started researching this total quality management on his computer. What he found was not only interesting, but in his mind quite doable and not that complicated.
-In further examining the concept of total quality management, Hector quickly realized that it was not enough to measure all the variables in the operations; he also had to establish ______________ which would eventually tell him if the work was improving.

• A) new job descriptions for all employees
• B) new processes in taking on new work
• C) evaluation techniques of employees' work
• D) rules about how customers were handled
• E) standards against which to measure work

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Definitions:

Spending Variance

The difference between the actual amount spent on a budget item and the amount that was expected or budgeted.

Indirect Labor

The labor costs of janitors, supervisors, materials handlers, and other factory workers that cannot be conveniently traced to particular products.

Direct Labor-Hours

The total hours worked by employees directly involved in the production process.

Spending Variance

This refers to the difference between the budgeted amount of spending and the actual amount spent.