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Total Quality Management MCQs

Total quality management (TQM) is the continuous improvement in Quality, Productivity, Effectiveness obtained by establishing management responsibility

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Total Quality Management MCQs

Total quality management (TQM) is the continuous improvement in Quality, Productivity, Effectiveness obtained by establishing management responsibility for processes as well as output. Here on MCQs.club we have designed simple Multiple-Choice Questions (MCQs) on total quality management that fully covers the total quality control, its importance, concept, TQM model, Six Sigma in tqm, Benchmarking in tqm and its theory, TQM system, process and approach including Quality Circle and kaizen in tqm with examples. These MCQs also includes topics like: Total Quality Assurance, Deming total quality management (TQM), 5s in total quality management, Crosby TQM. These MCQs are useful for Competitive, Accountancy and Business management exams.

Quality management involves planning and controlling activities to ensure the product or service is fit for purpose, meeting design specifications and the needs of customers.

1. The above statement is correct
2. The above statement is incorrect

Identify the types of quality-related costs:

1. Prevention cost
2. Appraisal costs
3. Internal failure costs and external failure costs
4. All of the above

Prevention costs are:

1. Cost of preventing defects before they occur
2. Cost of quality inspection and testing
3. The costs arising from a failure to meet quality standards
4. All of the above

Appraisal costs are:

1. Cost of preventing defects before they occur
2. Cost of quality inspection and testing
3. The costs arising from a failure to meet quality standards
4. All of the above

Internal failure costs are the costs arising from a failure to meet quality standards. Occurs before the product/service reaches the customer.

1. True
2. False

External failure costs are the costs arising from a failure to meet quality standards. Occurs after the product/service reaches the customer.

1. False
2. True

Total quality management (TQM) is the continuous improvement in ___________ obtained by establishing management responsibility for processes as well as output.

1. Quality
2. Productivity
3. Effectiveness
4. All of the above

Deming gave a core concept on implementing TQM. Identify ‘Deming’s’ points on implementing TQM:

1. Create constancy of purpose for improving products and service, Institute training on the job.
2. Adopt the new philosophy, drive out fear and adopt and institute leadership
3. Cease dependence on inspection to achieve quality, Improve constantly.
4. End the practice of awarding business on price alone; instead, minimize total cost by working with a single supplier.
5. All of the above

The fundamental features of Total quality management (TQM) includes:

1. Prevention of errors before they occur
2. Continual Improvement
3. Real participation by all
4. All of the above

The Total quality management (TQM) will result in an increase in prevention costs but internal and external failure costs will fall.

1. The above statement is correct
2. The above statement is incorrect

The ‘total’ in Total quality management (TQM) means that everyone in the value chain is involved in the process, including:

1. Employees
2. Suppliers
3. Customers
4. All of the above

The Tools of Total quality management (TQM) are:

1. Quality circles
2. Kaizen
3. 5S Practice and Six Sigma
4. All of the above

A ‘Quality circle’ is a small group of employees, with a range of skills from all levels of the organization. They meet voluntarily on a regular basis to discuss quality issues and to develop solutions to real problems.

1. The above statement is correct
2. The above statement is incorrect

Advantages of quality circle include:

1. Improvements in quality, leading to greater customer satisfaction and improved productivity.
2. A culture of continuous improvement is encouraged.
3. Employees at operational level will form part of the quality circle.
4. All of the above

Practically, the idea of quality circles can be very difficult. Identify the ways in which firms can encourage the use of quality circles.

1. Ensuring that there is high profile executive commitment to support the initiative.
2. Reviewing the information system in the organization to identify the information needs of quality circles and to ensure that any data required assessing performance and identifying problems is available to them
3. Developing a culture in the organization that allows possible changes to be tested out, allowing for the possibility of mistakes.
4. All of the above

Kaizen is a Japanese term for the philosophy of continuous improvement in performance in all areas of an organization’s operations.

1. The above statement is correct
2. The above statement is incorrect

Features of kaizen include:

1. Involvement of all levels of employees.
2. Suggestions are not limited to a particular area but look at all areas of the business.
3. Kaizen involves setting standards and then continually improving those standards.
4. All of the above

Continuous improvement is a never-ending cycle. Its also called the Plan-Do-Check Act (PDCA) cycle.

1. True
2. False

Identify whether the following with to, PDCA, continuous improvement is correct.

- Plan: Plan Activities
- Do: Implement the plan
- Check: Check the results
- Act: Improve the process
  1. The above is correct
  2. The above is incorrect

Which of the following statement is correct with regard to 5S practice?

1. The 5S practice is an approach to achieving an organized, clean and standardized workplace.
2. The 5S practice is often part of a kaizen approach.
3. The 5S are: structurise, systemize, sanitize, standardize, self-discipline
  1. All of the above are correct
  2. (I) and (II) only
  3. (I) only
  4. None

5S – idea behind the 5Ss is that there is ‘a place for everything and everything goes in its place’. Discipline, simplicity, pride, standardization and repeatability are emphasized in the 5Ss as being critical to efficiency.

1. The above statement is true
2. The above statement is false

Which of the following is correct regarding SIX SIGMA?

1. Six-sigma – is a process that is designed to assist organizations to focus on developing and delivering near-perfect products and services.
2. Six-sigma, the aim of the approach is to achieve a reduction in the number of faults that go beyond an accepted tolerance limit.
3. Both A&B
4. None

The sigma stands for standard deviation. If the error rate lies beyond the sixth sigma of probability, there will be fewer than 3.4 detects in every one million.

1. The above statement is incorrect
2. The above statement is correct

Six Sigma ensures the progressive elimination of defects by:

1. Identifying the root causes of error
2. Confirming the critical root causes
3. Implementing corrective action
4. All of the above

Benchmarking is the process of systematic comparison of a service, practice or process. Its use is to provide a target for action in order to improve competitive position.

1. The above statement is correct
2. The above statement is incorrect

Identify the types of benchmarking.

1. Competitive
2. Internal
3. Functional
4. All of the above

Which of the following statement is correct with regard to the types of benchmarking?

1. Competitive benchmarking is a method of comparing performance in key areas with that of your most successful competitors.
2. Internal benchmarking is a method of comparing performance in key areas in one part of the organization with the performance in another part of the organization.
3. Functional benchmarking involves comparing a function with the practice of an organization known to excel in that area.
4. All of the above are correct

What are the elements of William Ouchi’s Theory Z?

1. Interpersonal skills, Building relationships, Group interaction and decision-making
2. Participative management, Free flow of information, Trust
3. Retention of hierarchical rules and control, Formal procedures for planning and setting objectives.
4. All of the above

Crosby (Quality costs) – ‘absolutes of quality management are:

1. Quality is conformance to requirements.
2. Prevention is required, not an appraisal of the costs of poor quality.
3. Zero defects in production.
4. Organizations should measure the cost or price of ‘non-conformance’.
5. There is no such thing as a ‘quality problem’.
  1. All of the above
  2. (I) (III) and (V) only
  3. (II) and (V) only
  4. None

Service level agreement – is a statement of the standard of service and supply that will be provided to the internal customer and will cover issues such as the range of services supplied, response times, dependability and so on.

1. The above statement is incorrect
2. The above statement is correct

Which of the following is correct with regards to ‘Empowerment’?

1. Empowerment recognizes that employees are likely to know how best to perform their role and to improve quality.
2. Empowerment contrasts with traditional ‘top down management’ which assumes that management is best qualified to make decisions.
3. Both A&B are correct
4. None

Empowerment includes key aspects such as:

1. Allowing workers to have the freedom to decide how to do the necessary work, using the skills they possess and acquiring new skills as necessary to be an effective team member.
2. Making workers responsible for achieving production targets and for quality control.
3. Both A&B
4. None

Quality management is not a one-off process but is the continuous examination and improvement of processes. This continuous improvement is sometimes referred to as ‘Kaizen’

1. True
2. False

Kaizen looks for uninterrupted incremental change. It can be implemented by improving every aspect of a business process in a step-by-step approach, while gradually developing employee skills through training, education and increased involvement.

1. The above statement is correct
2. The above statement is incorrect

The principles of continuous improvement/Kaizen are:

1. People are the most important organizational asset.
2. Processes should evolve by gradual improvement rather than radical change.
3. Improvement should be based on statistical / quantitative evaluation of process performance.
4. Resources, measurements, rewards, and incentives all need to be aligned.
5. Continuous improvement enables changing customer needs to be taken into account.
6. Continuous improvement enables new technologies to be introduced.
  1. All of the above
  2. (II) (IV) and (VI) only
  3. (II) (V) and (VI) only
  4. None

Tools used in the Kaizen process include:

1. The five why process
2. Fishbone diagrams
3. Plan-do-check-act (PDCA)
4. Pareto analysis (80/20 rule)
5. All of the above

The five why process –:

1. This process seeks to identify the root cause of a problem by encouraging the employee to ask ‘Why’ to generate a symptom. This creates issues and questions and the process repeats until the solution or reason is discovered (often after 5 ‘Whys’.)
2. These are cause and effect diagrams used to analyze all causes (or inputs) that result in a single effect (or output). A map in the form of a Fishbone is created and the route of continuous improvement is drawn. Potential problems that may be encountered will ‘splinter’ off from the path.
3. is based on the idea that 80% of an outcome is dependent on only 20% of the work (inputs or processes). Another way of looking at the rule would be to consider that 20% of output accounts for 80% of the overall revenue or value.
4. None

Fishbone diagrams –:

1. This process seeks to identify the root cause of a problem by encouraging the employee to ask ‘Why’ to generate a symptom. This creates issues and questions and the process repeats until the solution or reason is discovered (often after 5 ‘Whys’.)
2. These are cause and effect diagrams used to analyze all causes (or inputs) that result in a single effect (or output). A map in the form of a Fishbone is created and the route of continuous improvement is drawn. Potential problems that may be encountered will ‘splinter’ off from the path.
3. is based on the idea that 80% of an outcome is dependent on only 20% of the work (inputs or processes). Another way of looking at the rule would be to consider that 20% of output accounts for 80% of the overall revenue or value.
4. None

Pareto analysis (80/20 rule) –:

1. This process seeks to identify the root cause of a problem by encouraging the employee to ask ‘Why’ to generate a symptom. This creates issues and questions and the process repeats until the solution or reason is discovered (often after 5 ‘Whys’.)
2. These are cause and effect diagrams used to analyze all causes (or inputs) that result in a single effect (or output). A map in the form of a Fishbone is created and the route of continuous improvement is drawn. Potential problems that may be encountered will ‘splinter’ off from the path.
3. is based on the idea that 80% of an outcome is dependent on only 20% of the work (inputs or processes). Another way of looking at the rule would be to consider that 20% of output accounts for 80% of the overall revenue or value.
4. None

The types of quality cost are –

1. Prevention, appraisal/inspection,
2. Internal and external failure.
3. Both A&B
4. None

Prevention and appraisal costs are known as:

1. Conformance costs
2. Non-conformance costs
3. Both A&B
4. None

Internal failure and external failure costs are known as:

1. Conformance costs
2. Non-conformance costs
3. Both A&B
4. None

Internal failure cost – This is a cost arising from inadequate quality, where the problem is identified before the transfer of the item or service from the organization to the customer or client e.g. Cost of output rejected during the inspection process.

1. True
2. False

Prevention cost –:

1. Costs incurred prior to making the product or delivering the service – to prevent substandard quality products or services being delivered.
2. This is a cost incurred after a product has been made or service delivered, to ensure that the output or service performance meets the required quality standard or service performance.
3. This is a cost arising from inadequate quality, where the problem is identified after the transfer of the item or service from the organization to the customer.
4. None

Appraisal cost or inspection cost –:

1. Costs incurred prior to making the product or delivering the service – to prevent substandard quality products or services being delivered.
2. This is a cost incurred after a product has been made or service delivered, to ensure that the output or service performance meets the required quality standard or service performance.
3. This is a cost arising from inadequate quality, where the problem is identified after the transfer of the item or service from the organization to the customer.
4. None

External failure cost –:

1. Costs incurred prior to making the product or delivering the service – to prevent substandard quality products or services being delivered.
2. This is a cost incurred after a product has been made or service delivered, to ensure that the output or service performance meets the required quality standard or service performance.
3. This is a cost arising from inadequate quality, where the problem is identified after the transfer of the item or service from the organization to the customer.
4. None

Identify the structure may be used by an organisation looking to implement a TQM approach:

1. Obtain senior management support and provide them with training on quality
2. Form a quality steering committee to oversee the implementation
3. Communicate the change down through the organisation’s hierarchy to obtain employee support
4. Form quality circles if appropriate
5. Record all actions taken and monitor progress against expectations
  1. All of the above
  2. (I) (III) and (IV) only
  3. (I) and (III) only
  4. None

Common reasons for failure in TQM programmes include:

1. Lack of management buy-in. Managers continue to monitor, control and punish rather than being facilitators of open communication and worker involvement.
2. Tail-off. After the initial enthusiasm, interest and support fades.
3. Deflection. Other initiatives or problems take over from TQM.
4. Rejection.
5. TQM is not compatible with managers who feel their authority is threatened and make decisions with the aim of maintaining their position.
6. General cynicism about quality and its role in fulfilling customer needs.
  1. (I) (V) and (VI) only
  2. (I) and (VI) only
  3. All of the above
  4. None

Quality circles – is a team of workers from within the organization which meets at intervals to discuss issues relating to the quality of the product or service produced. A typical quality circle comprises employees from many levels of the organization who meet regularly.

1. The above statement is correct
2. The above statement is incorrect

An organization can encourage the use of quality circles by:

1. Rewarding the circle for suggestions that are implemented (e.g. a share of any savings made).
2. Providing a budget and support to run the quality circle in terms of room provision, refreshments, staff to take minutes etc.
3. Ensuring management are supportive and prepared to act on useful suggestions from the circle.
4. Providing an explanation as to why suggestions not implemented were rejected.
5. Management asking the circle for suggestions and comments on specific issues and problems facing the company, without anticipating the outcomes.
  1. All of the above
  2. (II) (III) and (V) only
  3. (III) and (V) only
  4. None

The benefits of quality circles include:

1. Employee involvement improves morale.
2. Practical improvements/solutions are likely as workers know the processes involved.
3. Organization unity is fostered as the circle includes all levels.
4. Suggestions can result in valuable savings.
5. All of the above

Possible drawbacks of quality circles include:

1. Employee ‘power’ is hard to control.
2. The scope of influence can become very wide.
3. Rejected suggestions may cause resentment.
4. Business practicalities (e.g. cost) may not be fully understood.
5. All of the above

Which of the following is correct regarding TQMEX?

1. TQMEX model to indicate the relationship between quality management and other aspects of operations management.
2. The model demonstrates how contemporary approaches to quality may be integrated to achieve a philosophy of quality throughout the organization.
3. Both A&B
4. None

Business Process Re-engineering (BPR) – is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical contemporary measures of performance, such as cost, quality, service and speed.

1. The above statement is correct
2. The above statement is incorrect

Identify the themes of BPR.

1. Process reorientation – There should be a focus on resources, tasks and constraints.
2. Creative use of IT should be explored.
3. Ambition – Don’t be restricted by current ways of working. Think widely and ambitiously.
4. Challenge and break rules – Think radically. Old rules may not apply to new processes.
5. All of the above

Identify the phases of Business Process Re-engineering (BPR).

1. Planning,
2. Internal learning, External learning
3. Redesign and Implementation
4. All of the above

To succeed, a BPR initiative requires:

1. Sustained management commitment and leadership
2. Realistic scope and expectations, and a willingness to change.
3. Both A&B
4. None

Service Quality – is the totality of features and characteristics of that service which bears on its ability to meet stated or implied needs.

1. True
2. False

Service quality dimensions are:

1. Technical quality
2. Functional quality
3. Both A&B
4. None

There are various ways in which service quality factors may be classified. Identify those:

1. Hygiene factors and Enhancing factors
2. Critical factors and Neutral factors
3. Both A&B
4. None

Enhancing factors – These may partially delight but will not be a source of dissatisfaction if absent e.g. a hotel guest is likely to really appreciate friendly staff but might not be dissatisfied if they are not all that cheerful.

1. The above statement is correct
2. The above statement is incorrect

Hygiene factors –:

1. These are very much base line factors. If not present will tend to dissatisfy a customer, e.g. a hotel guest will expect proper security but it is unlikely to delight.
2. These have the potential to delight as well as dissatisfy e.g. a hotel guest will expect staff responsiveness.
3. These usually have little impact on satisfaction e.g. a hotel guest may be delighted if a hotel is aesthetically pleasing with nice wallpaper, smart fittings etc, but may well not miss them if not present.
4. None

Critical factors –:

1. These are very much base line factors. If not present will tend to dissatisfy a customer, e.g. a hotel guest will expect proper security but it is unlikely to delight.
2. These have the potential to delight as well as dissatisfy e.g. a hotel guest will expect staff responsiveness.
3. These usually have little impact on satisfaction e.g. a hotel guest may be delighted if a hotel is aesthetically pleasing with nice wallpaper, smart fittings etc, but may well not miss them if not present.
4. None

Neutral factors –:

1. These are very much base line factors. If not present will tend to dissatisfy a customer, e.g. a hotel guest will expect proper security but it is unlikely to delight.
2. These have the potential to delight as well as dissatisfy e.g. a hotel guest will expect staff responsiveness.
3. These usually have little impact on satisfaction e.g. a hotel guest may be delighted if a hotel is aesthetically pleasing with nice wallpaper, smart fittings etc, but may well not miss them if not present.
4. None

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