This set of Total Quality Management Multiple Choice Questions & Answers (MCQs) focuses on “Basic Concepts of Benchmarking”.
1. What is not benchmarking?
a) Systematic search for best practices
b) Systematic search for innovative ideas
c) Systematic search for highly effective operating procedures
d) Systematic search for imitating competitors
View Answer
Explanation: Benchmarking is the process of systematically searching for best practices, innovative ideas, and highly effective operating procedures. All these need to be done to survive and grow in this competitive industry.
2. Defining a proper metric for performance comparison is important in benchmarking.
a) True
b) False
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Explanation: Defining a proper metric for performance comparison is important in benchmarking. The target value must be what the best-in-class achieves. Then, organization compares its performance with the target value.
3. Benchmarking requires managers who understand the reasons for performance variation.
a) True
b) False
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Explanation: Benchmarking requires managers who understand the reasons for performance variation. Proper understanding will help the organization come closer to the target value achieved by the best-in-class.
4. Benchmarking is used by organizations as a ________ tool.
a) Intermittent improvement
b) Discontinuous improvement
c) Continuous improvement
d) Sporadic improvement
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Explanation: Benchmarking is used by organizations as a continuous improvement tool. It is the process of systematically searching for best practices, innovative ideas, and highly effective operating procedures.
5. Company A manufactures 10 defective products on an average out of 1000 products manufactured. Company B manufactures 5 defective products on an average out of 1000 products manufactured. Which company must be chosen for benchmarking and by whom?
a) B should choose A as benchmark
b) A should choose B as benchmark
c) Both are equally efficient
d) Concept of benchmarking is not applicable here
View Answer
Explanation: A should choose B as benchmark as A is manufacturing more defective products compared to B. A must reduce its average number of defects from 10 out of 1000 manufactured products.
6. Benchmarking involves ________ between the performance level of the organization with its benchmark.
a) Increasing the gap
b) Reducing the gap
c) Opening the gap
d) Broadening the gap
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Explanation: Benchmarking involves reducing the gap between the performance level of the organization with its benchmark. It is used as a continuous improvement tool.
7. Benchmarking is used extensively in __________
a) Manufacturing organizations only
b) Service organizations only
c) Manufacturing and service organizations
d) Government institutions only
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Explanation: Benchmarking is used extensively in manufacturing and service organizations. It is the process of systematically searching for best practices, innovative ideas, and highly effective operating procedures.
8. Proper selection of the best-in-class for benchmarking is _______
a) Crucial
b) Doesn’t hold great importance
c) Least important
d) Not important
View Answer
Explanation: In the contemporary world, many companies sell the same product. It is important to properly select the best-in-class for benchmarking. It should be a realistic and achievable target.
Sanfoundry Global Education & Learning Series – Total Quality Management.
To practice all areas of Total Quality Management, here is complete set of 1000+ Multiple Choice Questions and Answers.
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