If the net present value of a project is a positive amount, the return on investment is best described as being:
A. below the target rate
B. above the target rate
C. the same as the net present value
D. the same as the breakeven point
The primary reason that senior management should be involved in quality training is to:
A. explain quality principles and concepts to all employees
B. acquire an awareness of and a visible commitment to quality
C. provide the technical skills necessary to design and implement the quality system
D. provide the skills necessary to assist colleagues in the design of the quality system
An organization that has similar norms and values across product, unit, or functional boundaries is best described as having which of the following types of culture?
A. Strategic
B. Strong
C. Adaptive
D. Integrated
When a quality manager develops a long-term strategy for quality within an organization, which of the following is the first step?
A. Establishing benchmarks
B. Developing the quality mission statement
C. Interviewing line personnel
D. Assigning staff to assist in the effort
Which of the following elements of an organization's strategic planning process includes developing detailed action plans, defining resource requirements, establishing performance measures, and aligning work units?
A. Strategic objectives
B. Strategy deployment
C. Strategic plan linkage
D. Guiding principles
A company has entered into a partnership with a key supplier. All other sources for this key component have been eliminated. An auditor reports that the qualifying audit done by the previous auditor contained a significant omission. In this situation, the quality manager should do which of the following first?
A. Inform the supplier of the problem
B. Inform the chief executive officer of the omission
C. Issue a stop-work order to prevent further impact to the organization
D. Assess the impact of the auditor's omission
Which of the following tools shows the distribution of data and the frequency of measurements that fall within specified intervals?
A. Histogram
B. Pareto diagram
C. Bar chart
D. Pie chart
Which of the following tools is effective for dealing with multiple customer requirements?
A. Statistical process control (SPC)
B. Quality function deployment (QFD)
C. Total quality management (TQM)
D. Value added analysis
Which of the following actions will support supply chain optimization?
A. Adding redundancies within the production system power
B. Changing production from a pull system to a push system
C. Eliminating waste by using zero-based inventory levels
D. Pulling product based on its consumption rather than on forecasts
What is the first step in creating change?
A. Establishing a strategic plan
B. Identifying stakeholders
C. Developing a vision
D. Anticipating resistance
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