Free IIA IIA-CIA-Part3 Exam Questions (page: 39)

Which statement beet describes the emphasis of total quality management TQM)?

  1. Reducing the cast of inspection.
  2. Implementing better statistical quality control techniques.
  3. Doing each job right the first time.
  4. Encouraging crass-functional teamwork.

Answer(s): C

Explanation:

The basic principles of TQM include doing each jab right the first time, being customer oriented, committing the company culture to continuous improvement, and building teamwork and employee empowerment.



Product-quality-related costs are part of a total quality control program. A product-quality related cost incurred in detecting individual products that do not conform to specifications is an example of a n)

  1. Prevention cost.
  2. Appraisal cost.
  3. External failure cost.
  4. Opportunity cost.

Answer(s): B

Explanation:

Quality-related costs can be subdivided into four categories: external failure costs, internal failure costs, prevention costs, and appraisal costs. Appraisal costs embrace such activities as statistical quality control programs, inspection, and testing. Thus, the cost of detecting nonconforming individual products is an appraisal cost.



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

  1. Prevention costs.
  2. Appraisal costs.
  3. Rework costs.
  4. Failure costs.

Answer(s): B

Explanation:

Appraisal embraces such activities as statistical quality control programs, inspection, and testing. Appraisal costs are those costs such as test equipment maintenance and destructive testing) incurred to detect which products do not conform to specifications.



The use of teams in total quality management TOM) is important because:

  1. Well-managed teams can be highly creative and are able to address complex problems better than individuals can.
  2. Teams are quicker to make decisions, thereby helping to reduce cycle time.
  3. Employee motivation is higher for team members than for individual contributors.
  4. The use of teams eliminates the need for supervision, thereby alloying a company to become leaner and more profitable.

Answer(s): A

Explanation:

Teams can use the diverse knowledge and skills of all team members. Employee involvement means training and empowering employees to harness their creativity for problem solving. Quality control circles are used to obtain input from employees and to locate the best perspective on problem solving.



A means of limiting production delays caused by equipment breakdown and repair is to:

  1. Schedule production based on capacity planning.
  2. Plan maintenance activity based on an analysis of equipment repair work orders.
  3. Pre-authorize equipment maintenance and overtime pa}.
  4. Establish a preventive maintenance program for all production equipment.

Answer(s): D

Explanation:

Preventive maintenance program will reduce equipment breakdowns and repairs.



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