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IIA IIA-CIA-PART3-3P Exam Prep
Certified Internal Auditor - Part 3, Business Analysis and Information Technology (Page 37 )

Updated On: 22-Aug-2026
Page 37 of 312
PDF with 1555 Questions

Total quality management in a manufacturing environment is best exemplified by:

  1. Identifying and reworking production defects before sale.
  2. Designing the product to minimize defects.
  3. Performing inspections to isolate defects as early as possible.
  4. Making machine adjustments periodically to reduce defects.

Answer(s): B

Explanation:

Total quality management emphasizes quality as a basic organizational function. TOM is the continuous pursuit of quality in every aspect of organizational activities. One of the basic tenets of TOM is doing it right the first time. Thus, errors should be caught and corrected at the source, and quality should be built in designed in) from the start.



One of the main reasons that implementation of a total quality management program works better through the use of teams is:

  1. Teams are more efficient and help an organization reduce its staffing.
  2. Employee motivation is always higher for team members than for individual contributors.
  3. Teams are a natural vehicle for sharing ideas, which leads to process improvement.
  4. The use of teams eliminates the need for supervision, thereby allowing a company to reduce staffing.

Answer(s): C

Explanation:

TQM promotes teamwork by modifying or eliminating traditional and rigid) vertical hierarchies and instead forming flexible groups of specialists. Duality circles, cross functional teams, and self managed teams are typical formats. Teams are an excellent vehicle for encouraging the sharing of ideas and removing process improvement obstacles. Listed below are costs of quality that a plans to prepare a report that classifies costs, internal failure costs, and extern:



The costs of quality that are incurred in detecting units of product that do not conform to product specifications are referred to as:

  1. Preventive costs.
  2. Appraisal costs.
  3. Internal failure costs.
  4. External failure costs.

Answer(s): B

Explanation:

The Categories of quality costs include conformance costs (prevention and appraisal) and nonconformance costs(internal failure and external failure).appraisal costs embrace such activities as statistical quality control programs. inspection, and testing. thus, the cost of detecting nonconfoming products is an appraisal cost. listed below are costs of quality that a manufacturing company has incurred throughout its operations, the company plans to prepare a report that classified these costs into the following four categories: preventive costs, appraisal costs, internal failure costs, and external failure costs.



The US dollar amount of the costs of quality classified as preventive costs for the manufacturing firm would be:

  1. US $643,000
  2. US $701,000
  3. US $736,000
  4. US $768,000

Answer(s): B

Explanation:

Prevention attempts to avoid defective output, e.g., by employee training, reviews of equipment design, preventive maintenance, and evaluation of suppliers. Accordingly, the preventive costs equal U $701,000 U $275,000 design revie.ofs + U $180,000 process engineering + U $90,000 scheduled maintenance + U $1,000 training).



Which of the following is a key to successful total quality management?

  1. Training quality inspectors.
  2. Focusing intensely on the customer.
  3. Creating appropriate hierarchies to increase efficiency.
  4. Establishing a well-defined quality standard, then focusing on meeting it.

Answer(s): B

Explanation:

TOM emphasizes satisfaction of customers, both internal and external. TOM considers the supplier's relationship with the customer, identifies customer needs, and recognizes that everyone in a process is at some time a customer or supplier of someone else, either inside or outside of the organization. Thus, TOM begins with external customer requirements, identifies internal customer- supplier relationships and requirements, and establishes requirements for external suppliers.



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