CPA Business Environment and Concepts (BEC) : Total Quality Management
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Example Questions
Example Question #1 : Technology Process Management
Which of the following is not a characteristic of Total Quality Management?
Continuous Improvement
Customer Focus
Quality Circles
Waste Reduction
Waste Reduction
TQM focuses on customer needs, continuous improvements, and quality circles. Waste reduction is a quality of lean manufacturing, not TQM.
Example Question #2 : Technology Process Management
Which of the following management philosophies does not focus on quality?
Lean
Gap Analysis
Total Quality Management
Absolute conformance
Lean
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.
Example Question #3 : Technology Process Management
Which of the following uses analysis of production processes to ensure that resource uses stay within target costs?
Activity based costing
Kaizen
Value Chain Analysis
Just-in-time
Kaizen
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.
Example Question #4 : Technology Process Management
Which of the following is not a requirement of just in time systems?
Employee empowerment
Reduced setup time
Strong job specialization
Supplies received as needed throughout the day
Strong job specialization
Just in time means that employees with multiple skills are used more efficiently and will not specialize in merely one job or task.
Example Question #5 : Technology Process Management
Which of the following is not a typical characteristic of a just in time production environment?
Insignificant setup times and costs
Lot sizes equal to one
Balanced and level workloads
Push through system
Push through system
Just in time has the goal to minimize the level of inventory carried. It has a pull approach rather than a push approach.
Example Question #6 : Technology Process Management
There are 7 factors critical to total quality management. Which is not one of them?
Customer Focus
Executive compensation
Timely recognition
Objective measures
Executive compensation
Total quality management focuses on a customer-focused experience and compensation of the executives has no bearing on a customer.
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