Question

True or False: Diminishing returns will occur when investing in the same TQM Initiative round after round. A. True B. False True or False: According to the S-Shaped curve, diminishing returns for a single year budget become noticeable at $2,000,000 A. True B. False True or False: If a company with low automation wanted to invest in a single area that exclusively lowers labor costs, they would select QIT (Quality Initiative Training). A. True B. False True or False: The exact outcome of TQM efforts appear on the TQM Report, and as bar charts on the TQM spreadsheet. These results are for the previous round only, assuming no additional investment is made A. True B. False The TQM report can be accessed from the A Capstone(r) Courier B. Industry Conditions Report C. Annual Reports

Answer 1

1) True

Sufficient investment will bring about improvement to the maximum possible extent in the product quality and processes. Every TQM initiative will reach a ceiling, after which no further incremental improvement is possible. So additional investments will create very less or no additional returns.

2) True

S-shaped curve shows the return on investment. Slope of the curve determines whether the extent of return will be small or large. At $ 500000, the project goes through planning and recommendations. At $ 1 m, funds are available to start implementation. At $ 1.5 m, most of the recommendations can be implemented. At $ 2m, all the recommendations are implemented and further investment brings no incremental returns. Therefore diminishing returns are apparent beyond this investment level.

3) True

4) True

5) A. Capstone Courier