1. What is a cause-and-effect diagram? What is its primary purpose?

2. What are the main causes of quality problems depicted in a typical cause-and-effect diagram for manufacturing operations?

3. What is a Pareto chart? What is its function?

4. Define the terms customer-response time, manufacturing-lead (manufacturing cycle) time, and
cycle time efficiency (also known as throughput time ratio or process cycle efficiency).

5. As explained in the chapter, many organizations today are embracing the notion of total quality management (TQM), that is, they are attempting to secure competitive advantage through quality across all areas of the value chain. Discuss the role that management accounting can play to support the goal of TQM. (Hint: Use Exhibit 17.2 as a reference point.)

6. Define what is meant by the term relevant financial information (for decision-making purposes). Within the context of quality-related spending and investments, list some of the more important benefits (cost savings and revenue gains) that organizations can anticipate.

7. From a design standpoint, what are some desirable characteristics of a cost of quality (COQ) report- ing system? That is, if you were to design such a system from scratch, what would the key attributes of the system be?

8. Of the four categories in a COQ report, which category of quality cost is the most damaging to the organization? Why is this the case?