BACHELOR OF SCIENCE IN BUSINESS ADMINISTRATION

Level 2 PACUCOA Accredited Program

Midterm Examination
Total Quality Management
Review Material
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Test I. Enumeration. Write the answer of what is being required only. Do not make any erasure.
(1 point each)
1. Three growing principles describe Customer-Supplier Relationships.
a. Recognition of strategic importance of customers and suppliers.
b. Development of win-win relationships between customers and suppliers;
c. Establishing relationships based on trust

2. Customer-Supplier Relations in Organization Theory

a. resource
b. worker
c. buyer
d. beneficiary

3. key ideas of integrative bargaining

a. separate the people from the problem
b. focus on interest, not positions
c. invent options for mutual gain
d. insist on using objective criteria
e. Outcome or product of value-creating transformation activities

4. Problems with functional structure

a. separate employees from customers
b. inhibits process improvement
c. have a separate function for quality called quality control or quality assurance

5. Elements of a Total Quality Culture

a. visionary leadership
b. customer-driven excellence
c. organizational and personal learning
d. valuing employees and partners
e. agility
f. focus on the future
g. managing for innovation
h. management by fact
i. public responsibility and citizenship
j. focus on results and creating values
k. system perspectives

6. American views in changing process-steps

a. scope the change
b. create a vision
c. driving commitment
d. accelerate the transition
e. sustain momentum

7. Steps for accelerated continues improvement

a. Focus and pinpoint
b. Communicate
 BACHELOR OF SCIENCE IN BUSINESS ADMINISTRATION
Level 2 PACUCOA Accredited Program

c. Translate and link

d. Create a management action plan
e. Improve progress
f. Measure progress and provide feedback
g. Reinforce behaviors and celebrate results

8. Benchmarking process
a. Determine which functions to benchmark
b. Identify key performance indicators to measure
c. Identify the best-in-class companies
d. Measure the performance of the best-in-class companies and compare the results to your own
performance
e. Define and take actions to meet or exceed the best performance

9. Principles of process Redesign

a. reduces handoffs
b. Eliminate steps
c. Perform steps in parallel rather than in sequence

10. Perspectives on Total quality

a. The Reason for Change
b. The Source of Change
c. Types of Change

Test II. Identification. 1 point each.

1. okyakusama – meaning customer and honorable guest
2. loyal customers – those who stay with a company and make positive referrals
3. imprint analysis – a more formal approach to getting into customer’s minds
4. Service standards – are measurable performance levels or expectations that define the
quality of customer contracts.
5. internal customers – who contribute to the company’s mission and depend on the
department’s or function’s products or services to ultimately serve consumers and external
customers.
6. Process management – involves the design of processes to develop and deliver products and
services that meet the needs of customers, daily control so that they perform as required,
and their continual improvement.
7. Culture - is the set of beliefs and values shared by the people in an organization.
8. Fairness – we treat each other as we expected to be treated
9. trust – we respect and rely on each other.
10. teamwork – we are empowered to manage our areas of responsibility
11. Diversity – we value different points of view.
12. employee well-being – we have safe, healthy, and desirable workplace
13. winning attitude – our can-do attitude and desire for excellence drive continual
improvement, making us winners in everything.
14. Kaizen – continuous improvement
15. Breakthrough improvement – refers to discontinuous change, as opposed to the gradual,
continuous improvement philosophy.
16. Benchmarking – is the search for best practices that will lead to superior performance
17. Best practices – refers to approaches that produce exceptional results, are usually
innovative in terms of the use of technology or human resources, and are recognized by
customers or industry experts.
 BACHELOR OF SCIENCE IN BUSINESS ADMINISTRATION
Level 2 PACUCOA Accredited Program

18. Competitive benchmarking – usually focuses on the products and manufacturing of a

company’s competitors
19. Generic Benchmarking – evaluates the process or business functions against the best
companies, regardless of their industry.
20. Total Quality – a comprehensive, organization-wide effort to improve the quality of products
and services
21. Agility – is a term that is commonly used to characterized flexibility and short cycles times.
22. Sample space - The collection of all possible outcomes of an experiment.
23. Probability - The likelihood that an outcome occurs.
24. event - A collection of one or more outcomes from a sample space, such as finding or fewer
defectives in the sample.
25. random variables - A numerical description of the outcome of an experiment. A function
that assigns a numerical value to every possible outcome in a sample space.
26. probability distribution - A characterization of the possible values that a random variable
may assume along with the probability of assuming values.
27. Probability density function - Characterizes outcomes of a continuous random variable.
28. Concurrent engineering - A process in which all major functions involved with bringing a
product to market are continuously involved with product development from conception
through sales.
29. Concept development - The process of applying scientific, engineering, and business
knowledge to produce a basic functional design that meets both customer needs and
manufacturing or service delivery requirements.
30. Nominal - Refers to the idea dimensions or the target value that manufacturing seeks to
meet.
31. Tolerance - The permissible variation, recognizing the difficulty of meeting a target
consistency.
32. Tolerance design - Involves determining the permissible variation in a dimension.
33. reliability - The probability that a product, piece of equipment, or system performs its
intended function for a stated period of time under specified operation conditions.
34. hazard function - reliability engineers characterize the instantaneous failure rate over time.
35. Robust design - Designing goods and services that are insensitive to variation in
manufacturing processes and when consumers use them.
36. Design for manufacturability - The process of designing a product for efficient production at
the highest level of quality.
37. Accelerated life testing - Involves overstressing components to reduce the time to failure
and find weaknesses.
38. Measurement - The act of collecting data to quantify the values of product, service, process,
and other business metric.
39. Measures and indicators - Refers to the numerical results obtained from measurement.
40. nonconformance - Any defect or error associated with a unit of work.
41. variable measurement - Apply to dimensional quantities such as length, weight, and time, or
any value on a continuous scale of measurement.
42. Unit of work - The output of a process or an individual process step.
43. Prevention costs - Are investments made to keep nonconforming products from occurring
and reaching the customer.
44. Appraisal costs - Are those associated with efforts to ensure conformance to requirements,
generally through measurement and analysis of data to detect non-conformances.
45. Internal failure costs - Are incurred as a result of unsatisfactory quality found before the
delivery of a product to the customer.
46. External failure costs - Occur after poor-quality products reach the customer.
 BACHELOR OF SCIENCE IN BUSINESS ADMINISTRATION
Level 2 PACUCOA Accredited Program

47. Metrology - It is the Science of measurement and defined broadly as the collection of
people, equipment, facilities, methods, and procedures used to assure the correctness or
adequacy of measurement.
48. calibration - The process of verifying the capability and performance of an item of
measuring and test equipment compared to traceable measurement standards.
49. Equipment variation - The variation in multiple measurement of a quality characteristic by
an individual using the same instrument.
50. Reproducibility - Indicates how consistent workers are in using measurement instruments.
51. Process capability study - A carefully planned study designed to yield specific information
about the performance of a process under specified operating conditions.
52. Process capability - The ability of a process to produce output that conforms to
specifications.
53. Process performance indexes - A process that may include causes of variation, practitioners
use alternative capability indexes.
54. pre-control - It is a simple technique for ensuring that a process that has relatively good
capability remain controlled.
55. Statistical process control - A methodology for monitoring a process to identify special
causes of variation and signal the need to take corrective action.
56. Trend - The result of some causes that gradually affects the measurement and causes the
points on a control chart to gradually move up or down from the center line.
57. Hugging the Center line - Occurs when nearly all the points fall close to the center line.
58. breakthrough - Joran defined as the accomplishment of any improvement that takes an
organization to unprecedented levels of performance.
59. Deming Cycle - A simple adaptation of the scientific method for process improvement.
60. Lean six sigma - An integrated improvement approach to improve goods and services and
operations efficiency by reducing defects, variation, and waste.
61. statistics - The science concerned with the “collection, organization, analysis, interpretation,
and presentation of data”.
62. Brain storming - A useful group problem-solving procedure for generating ideas, was
proposed by Alex Osborn “for the sole purpose of producing checklist of ideas” that can be
used in developing a solution to a problem.