INTERNATIONAL SCHOOL OF ASIA AND THE PACIFIC

Alimannao Hills, Penablanca, Cagayan

C OLLEGE OF B USINESS A DMINISTRATION AND A CCOUNTANCY

Name: _____________________________ Year& Section:________________Date:________________

FINAL EXAMINATION
B.A. 308
Total Quality Management

I. MULTIPLE CHOICES. Answer each question to the best of your ability by encircling the best
answer for each question. There is only one correct answer for each question, so read each question
fully before answering. Erasures means wrong. (40 points)
1. Total Quality Management (TQM) focuses on
a. Employee b. Customer c. Both (a) and (b) d. None of the above
2. Which of the following is responsible for quality objective?
a. Top level mngt. b. Middle level mngt. c. Frontline mngt. d. All of the above
3. While setting Quality objective, ________ to be considered.
a. Material quality b. Customer need c. Market demand d. All of the above
4. David Garvin categorized quality into 5 different approaches: the transcendent, the
manufacturing-based, the user- based, the product-based and the value- based. Making
sure a product or service is "fit for its purpose" is which kind of approach?
a. Transcendent b. User-based c. Product-based d. Manufacturing-based
5. A paper mill supplies a corrugated container manufacturer with Kraft paper. The corrugated
container manufacturer uses Kraft paper to manufacture corrugated shipping containers that are
then sold to a cereal manufacturer. Which of the following is true?
a. The corrugated container manufacturer is an internal customer to the cereal
manufacturer.
b. The corrugated container manufacturer is an external customer to the paper mill.
c. Both the paper mill and corrugated container manufacturer are internal customers to the
cereal manufacturer.
d. There are no external customers.

6. During 1800s, the quality was viewed as:

a. a problem that can never be solved c. a tool for measuring system
b. a problem to be solved d. a remedy to control decline

7. Why the factory managers created inspection departments?

a. To keep defective products aside, ensuring they do not reach the customers
b. To ensure quantity of goods/services
c. To count, grade, and rework
d. All of the above

8. During 1950s, controlling quality meant:

a. To understand and address the causes of poor quality
b. To simplify and speed up process
c. To link outcomes to uses
d. Acting on defects
9. Which of the following document(s) is (are) included in the quality system?
a. A quality policy b. Customer focus c. Commitment d. All of the given options

10. Quality checklists are used to:

a. Ensure that Quality Assurance steps were followed
b. Keep quality inspectors busy
c. Inform upper management where failures occur
d. Prevent project audits

11. The underlying cause(s) of TQM deficiencies is (are):

a. The failure of managers to understand the concept of quality
 b. Costly implementation of quality management system
c. Lack of employee involvement
d. All of the given options

12. One thing that the implementation plan must provide is:
a. Short-term focus b. Leadership delegation c. Vision statement d. Training

13. What is quality?

a. Meeting and exceeding the customer’s expectations
b. Adding extras to make the customer happy
c. The degree to which the project meets requirements
d. Conformance to management’s objectives

14. All of the following are the grounds to give birth to total quality approach EXCEPT:
a. Obsession with quantity c. One employee in charge
b. Confusion and poor leadership d. Political disorder

15. Which of the following is true for subsystems?

a. These are not linked together as internal customers and suppliers
b. These are linked together as external customers and suppliers
c. These are linked together as external and internal customers and suppliers
d. These are linked together as internal customers and suppliers

16. With total quality perspective, employees are empowered to think and make recommendations for
which of the following?
a. Continual improvement c. Problem solving
b. Strategic management d. Product development

17. Which one of the following depicts durability – a dimension of quality?

a. Exterior finish b. Quality of work c. Useful life d. Ease of repair

18. Which of the following statements is TRUE for total quality?

a. Stresses on learning and adaptation to change

b. Ability to repair a product quickly and easily
c. Establishing and measuring service levels may be difficult
d. A primary operating characteristic of product

19. What is the objective of a TQM system?

a. Continuous improvement c. Business improvement
b. Operational improvement d. Process improvement

20. Which of the following results in low costs?

a. High productivity and high capacity utilization
b. Low productivity and low capacity utilization
c. Low productivity and high capacity utilization
d. High productivity and low capacity utilization

21. Which of the following statements is true about routine inspection:

a. It adds value to the product
b. It acknowledges defects as well as adds value to the product
c. It acknowledges defects but does not add value to the product
d. All of the given options

22. The success of Japanese manufacturers is due to ________, small and incremental improvements
in design and production.
a. Continuous b. Abrupt c. Frequent d. None of the given options

23. One of the advantages of team work is:

a. It breaks down barriers between internal customers and suppliers
b. It results in promotion
c. It results in salary increment
d. None of the given options
24. Which of the following is TRUE for higher costs of quality?
a. Doing the wrong thing in the wrong way c. Doing the right thing in the wrong way
b. Doing the wrong thing in the right way d. Doing the right thing in the right way

25. The role of the management is to

a. provide resources c. monitor the effectiveness of the system

b. define EMS d. all of the above

26. A quality strategy is necessary to provide the goals and guidelines to keep a TQM programme
heading in the right direction. The strategy would normally comprise such aspects as:

a. The competitive priorities of the organisation and how the TQM programme is expected to
contribute, the roles and responsibilities, the resources available and the philosophy towards
quality.
b. A public statement from the Board indicating that the company will be a 'quality'
company.
c. The performance-related pay that staff can expect to obtain and the penalties that will be
imposed for under-performance.
d. A textbook approach detailing all the dos and don’ts of TQM implementation.

27. Which one of the following depicts feature, which is a dimension of quality?

a. Product looks and sounds c. Bells and whistles of the product

b. Brand name and price d. Ability to repair a product

28. Which of the following statements is TRUE for the organizations focusing problem-solving and
continuous improvement?

a. Fail to emphasize error prevention and design quality

b. Fail to focus on what is truly important to the customer
c. Fail to identify the best times about the situation in the past
d. Fail to integrate all organizational functions

29. Quality applies to which aspect(s) of the organization?

a. Customer and Operations c. People and product

b. Products and services d. Products, services, and people

30. Which of the following is concerned about quality for achievement of TQM?

a. The Managing Director c. The Quality Manager

b. The Operations manager d. Everyone in the organization

31. The majority of advertisers appeal the public on the basis of which of the following?
a. Quality of product c. Inferiority of product
b. Quality of staff d. Inferiority of service

32. All of the following are the reasons why Total Quality Management programs are not prolific for
many companies, EXCEPT:

a. TQM focuses on minimum standards

b. TQM develops its own cumbersome bureaucracy
c. TQM has no place for love and passion
d. TQM focuses on customers and stakeholders

33. What is necessary for a system to be effective?

a. The components of any system must work together for the system
b. The components of any system must not work together for the system
c. The components of any system should not be organized for the system
d. The components of any system should provide disruption for the system
34. How should the benchmarking of individual processes as well as customer satisfaction be
employed?

a. As a standard tool c. As an improvement tool

b. As a defective tool d. As an instrumental tool

35. How can the quality be computed?

a. Quality = Expectation/Performance
b. Quality = Performance/Expectation
c. Quality = Performance+Expectation
d. Quality = Performance-Expectation

36. All of the following steps are required for quality planning EXCEPT:

a. determine who the customers are

b. deploy the plans to operational levels
c. identify customers’ needs
d. assess actual quality performance

37. What does the transcendent view imply for high quality?

a. It is something everlasting c. It is something priceless

b. It is something timeless and enduring d. It is something perfect

38. When a manager monitors the work performance of workers in his department to determine if the
quality of their work is 'up to standard', this manager is engaging in which function?

a. Planning b. Controlling c. Organising d. Leading

39. Which of the following are key components of a Total Quality Management system?

a. Individual responsibility, incremental improvement, use of raw data

b. Collective responsibility, continual improvement, use of raw data
c. Group responsibility, staged improvement, knowledge
d. Involves everyone, continual improvement, use of data and knowledge

40. What are the main characteristics of an effective control system?

a. Flexibility, accuracy, timeliness and objectivity

b. Flexibility, measurability, timeliness and objectivity
c. Flexibility, accuracy, relevance and objectivity
d. Flexibility, accuracy, timeliness and relevance

-----------------------------------------------------------------------------------------------------------------------------

1. Control chart is a
a) Process monitoring tool 3. If "quality is free", why do authorities
b) Process control tool recognise that an improvement programme
c) Both (a) and (b) needs investment?
d) None of the above
a) Reductions in prevention and appraisal
2. A control chart to record process performance costs lag behind investment in prevention.
usually identifies control limits and b) Zero defects is not possible.
specification limits. Which one of the following is c) It is never free.
true? d) There is an inevitable worsening of quality
during periods of change.
a) Control limits are set outside the
specification limits. 4. What does the term kaizen mean when
b) Control charts do not prevent poor quality applied to quality?
output.
c) Designers always set upper and lower a) Quality is everyone's job
limits. b) Continuous improvement
d) Control charts require complex statistical c) Mutual dependence
analysis to set them up. d) Maintain a steady flow
5. Quality has gained such prominence because
organizations
a) are following the latest management fad
b) have found a low cost process to keep some
employees busy
c) understand it is minimal cost and something
to do
d) have gained an understanding of the high
cost of poor quality
6. During World War II, quality
a) Meant inspecting products to ensure that
they met specifications
b) Encompassed the entire organization
c) Became customer driven
d) Became more statistical in nature
8. Quality checklists are used to:
a) Ensure that Quality Assurance steps were
followed
b) Keep quality inspectors busy
c) Inform upper management where failures
occur
d) Prevent project audits
9. ____________ provides information on how
productivity and quality can be continuously
improved through problem identification.
a) Statistical quality control
b) Statistical process control
c) Tree Diagram
d) None of the given option

7. The Japanese term for continuous 10. Drawing control charts requires
improvement is a) Calculation of statistics from data
b) Adjusting the machines
a) Poka-yoke b) Kaizen c) Teamwork training of workers
c) Kanban d) Muda d) data gathering procedure

1. Two "quality gurus" that were involved in training Japanese manufacturers in the 1950's were:
a) Crosby and Shewhart b) Juran and Deming
c) Crosby and Juran d) Deming and Crosby

2. The difference between and internal and an external customer is:

a) External customers care about what they receive, internal customers do not.
b) Internal customers usually work in the business, external customers do not.
c) Internal customers do not evaluate quality, and external customers do.
d) Quality-oriented businesses care only about external customers.

3. The most frequently used framework for obtaining continuous improvement is:
a) The Pareto analysis b) The plan-do-check-act cycle
c) The quality circle d) The cause and effect process

4. According to Deming, quality problems are:

a) Due to method b) Due to management
c) Due to machine d) Due to materials

5. When a manager monitors the work performance if workers in his department to determine if
quality of their work is ‘up to standard’, the manager is engaging on what function?
a) Checking b) Controlling c) Criticizing d) Clearing

6. Cost associated with efforts to prevent errors are:

a) Appraisal cost b) Prevention cost c) Direct cost d) Expected cost

7. Customer satisfaction achieved in two dimensions:

a) Product features; freedom from damages
b) Product features; freedom from deficiencies
c) Product performance; freedom from deficiencies
d) None of these

8. Dubbed as the “Grandfather of Quality Control.”

a) Deming b) Shewart c. Juran d) Taguchi

9.The “Father of Quality Control.”

a) Shewhart b) Deming c. Juran d) Taguchi

10. A __________, by definition, is a good person, a wise person and a teacher.

 a) assessor b)guru c) mayor d) experts

11. Quality is defined as “conformance to requirements” by:

a) Deming b) Crosby c) Juran d) Carvin

12. The two most important drivers of service quality are ___________ and ______________.
a) Time; Convenience b) People; Technology c. Satisfaction; feedback d) a& c

13. The transition to a customer- driven organization has caused fundamental changes in
manufacturing practices. Identify which of the following is NOT one of the changes.
a) Suppliers have become partners in product design and manufacturing efforts
b) Quality control has shifted from the production floor to the quality department
c) Product design activities now closely integrate marketing, engineering, and
manufacturing operations
d) Quality control has shifted from the production floor to the quality department.

14. Which of the following statements is TRUE regarding numerical quotas and management by
objectives?
a) They encourage improvement, particularly if rewards are tied to meeting quotas
b) Workers may short- cut quality to reach goal
c) Measurement has been, and often still is, motivational
d) Standards and quotas are based on long- term perspectives

15. Which of the following statements is not part of the explanation for Deming’s Principle 1 which is
to ‘create a constancy of purpose?
a) Define the problems of today and the future
b) Allocate resources for repairs and education
c) Constantly improve design of product and services
d) Allocate resources for long- term planning

16. Improve every process means

a) Improve constantly and forever every process for planning, production, and inspection
b) institute inspection of product and services
c) Search continually for problems in order to improve every activity
d) constantly decrease manpower for inefficient process

17. Encouraging effective two-way communication is one way of _________________.

a) breaking down barriers
b) Instituting leadership
c) driving out fear
d) eliminating exhortations

18. What particular award is given or awarded annually to firms who distinguish themselves with
quality management programs?
a) Quality Seal for Good Governance c) Outstanding Firm Award
b) Deming Prize d) Quality Management Award

19. In the early 1950’s, Japan initiated a call to the American gurus in order for them to develop and
give quality lectures. Japan is driven on the purpose of ____________________.
a) Maintain their status as one of the Asia’s Tiger Economy
b) Emerge Japan as a quality leader
c) Sustaining the quality needs of Japanese industry and technology
d) Applying statistical concepts to non- manufacturing environments

20. Deming encourage the adoption of a systematic approach to problem solving known as
___________________
a) PDCA Wheel b) PDCA Cycle c) PDSA Approach d) all of the above

21. Which of the following statements is TRUE about the Deming Chain Reaction?
a) Improve Quality would result to cost and jobs decrease
b) When productivity improves, companies will capture market with better quality and lower
price
c) Improve quality means less work, few delays and machine type production resulting to
higher quota
d) When productivity improves, there is reward for every employee of the company
22. It occurs when managers can’t define the actual problems and not learning from them.
a) Reliance on performance of appraisal and merits
b) Too much staff mobility
c) Over dependence to the top management
d) Lack of consistency of purpose

23. It’s a process which aims at achieving good quality during manufacture through prevention
rather than detection.
a) Total Quality Control b) Statistical Process Controlling c) TQM d) Control

24. The following statements below explains the Deming’s paradigm except:
a) Intrinsic & extrinsic motivation
b) Management needs to improve and innovate processes to create consistency of purpose
c) Optimize the entire system toward its aim
d) Cooperation is better than competition.

25. Which of the following companies are recipient of the Deming Prize?
a) Stainless Steel (2008) & Mahatma Indira Manufacturing (2008)
b) Tata Steel (2008) & Mahindra- Mahindra Tractors (2003)
c) Toyota (2002) & Japanese Tractors (2003)
d) Motorola (2001) & Mikato Tractors (2007)

26. The Statistical Process Controlling of W. Edwards Deming emphasizes:

a) SPC has tremendous impact on the on the management and control of quality and way companies
operate.
b) causes of poor quality: 80% depends on management and 20% depends on employee
c) Management needs to improve and innovate processes to create results
d) Optimize the entire SYSTEM toward its aim

27. He is an internationally acclaimed quality guru, similar to Edwards Deming, strongly influencing
Japanese manufacturing practices.
a) Kaoru Ishikawa b) Joseph Juran c) David Garvin d) Walter Shewart

28. This belief of Dr. Joseph Juran gave rise to the development on one of his contributions:
a) Without standards there is no logical basis for making a decision or taking action.
b) Quality does not happen by accident
c) Quality if “fitness for use”
d) Quality is FREE

29. Juran defines QUALITY as fitness for use and goes on to further quantify it into 2 different
categories, which includes:
a) Product features that meet employee needs; Freedom from deficiencies
b) Product features that meet customer needs; Freedom from deficiencies
c) Product quality that meet customer needs; Freedom from defects
d) Product quality that meet employee needs; Freedom from defects

30. Breakthrough are sequences of process improvements, which take 2 journeys: (1) journey to
symptom to cause and ________________.
a) journey from problem identification to remedy
b) journey from cause to remedy
c) journey from cause to quality
d) journey from problem identification to quality

31. Quality isn’t the concern of the production or the total quality within the organization, but it
extends to link between organization departments, operations and services. This is the explanation
of what significant contribution of Juran?

a) Quality Council b) Juran Big Q c) Breakthrough d) Management commitment

32. Joseph Juran emphasized that Quality is associated with customer satisfaction and
dissatisfaction. The word CUSTOMER there merely pertains to ________________.
a) External customers b) Internal customers c) Suppliers d) both A & B

33. _____________________ occurs when the product has superior performance and features
a) Product quality b) Customer satisfaction c) Employee satisfaction d) all of the above
34. Juran also elaborated that customer satisfaction has two dimensions:
Internal: _____________________ External: matching customer requirements and meet their
expectations

a) Achieving superior performance and features

b) Building the product and the service correctly
c) Efficient adaptation of quality
d) Giving what is due to customers

35. What particular ideas of Joseph Juran wherein he assumed that every process has an internal
customer and supplier which linked to each other through a process to reach the optimum
quality.

a) Juran Trilogy b) Juran three role models c) Juran Pareto analysis d) Juran principles

36. It is considered as the best approaches developed by Dr. Joseph Juran.

a) Juran Pareto Analysis b) Juran Trilogy c) Juran principles d) All of the above

37. When you determine the organization internal and external customers, customer needs,
requirements and expectations, design the product to achieve customer satisfaction and prepare
a design to achieve a good quality- you are most likely doing what particular process?
a) Quality improvement b) Quality Planning c) Quality design d) both a & b

38. He popularized the idea of the "cost of poor quality", that is, figuring out how much it really costs
to do things badly.
a) David Garvin b) Philip Crosby c) Joseph Juran d) Kaoru Ishikawa

39. Phillip B. Crosby pointed out that quality has hidden costs. All of the given items below will fall
under the hidden cost EXCEPT:
a) increased labor and machine hours
b) higher productivity allowance
c) customer dissatisfaction
d) increased warranty cost

40. In the 14 Points given by Crosby, what will you hold or initiate to reaffirm management
commitment?
a) Reorientation program for both management and employees
b) Zero Defects Day
c) Team Building Activity
d) Quality progress monitoring

41. Based on Crosby’s estimation, system that allows things to go wrong- so that those things have to
be done again- can cost how many percent of the organization’s revenue?

a) a ratio of 80- 20% for management and employees

b) between 20% and 35%
c) 20% of the total revenues
d) potentially 25% percent of the total revenue

42. If you fanatically follow a zero defects approach in areas which don’t need it, you’ll most likely
___________________ ?

a) losing a 20% of your total revenue?

b) be wasting resources
c) doing a time- destroying perfectionism
d) introducing flaws within the organization

43. What is the literal meaning or thought when we consider “ZERO DEFECTS” as part of our quality
program?
a) everyone should be perfectly produce products and services
b) everyone should do things right the first time
c) that this is not a motivational program for managers and employees
d) perfectionism

44. Mr. Crosby defined quality as:

a) able to meet certain criteria
 b) conformity to certain specifications
c) attaining zero defect
d) conformity to goals set

45. All the costs involved in not getting the product or a service right is part of what Crosby quality
cost?
a) Price of zero conformance
b) Price of non conformance
c) Cost of dissatisfaction
d) Cost associated on not getting the right product and service

46. Most companies implement ‘Zero Defects’ initiatives but struggle with results due to:
a) Decreasing management commitment
b) Lack of skills and experience in employees to create a Zero defect environment
c) Lack of understanding about cost of poor quality
d) Most companies implement it just for compliance

47. All of the following are the quality cost presented by Feigenbaum except:
a) Prevention Cost c) Internal Failure Cost
b) Poor Quality cost d) Appraisal Cost

48. In every factory, a certain portion of its capacity is wasted through not getting it right the first
time. How many percent of the capacity is being wasted according to Feigenbaum’s estimation?
a) up to 35% b) up to 40%
c) up to 65% d) up to 20%

49. Which of the following eight dimensions of quality that includes the feel, finish and manner in
which the customer dealt with pertaining to products or services?

a) Serviceability b) Perceived quality c) Aesthetics d) Conformance

50. The categories of causes according to Ishikawa includes all of the following except:
a) 6M’s b) 3Q’s c) 8P’s d) 4S’s

------------------------------------------END OF EXAMINATION---------------------------------------

Discipline is the bridge between goals and accomplishment.

-BSI12-20-93F

Prepare by: Checked and reviewed by:

BRIAN S. INCOGNITO, MBA PELAGIO C. LABANG, JR., MBA

Instructor Dean, College of Business Admin. And Accountancy

Approved by:

PRESENITA C. AGUON, PhD.

Vice President for Academic Affairs