Planning guarantees organizational success.
True / False
False
Cycle time refers to the length of time required to complete a process.
True / False
True
Sam Walton stated that Wal-Mart's key to success was "economy of scale."
True / False
False
According to the text, planning is the key to ensuring an adequate business response to global competition.
True / False
True
Strategic planning is usually carried out by top management.
True / False
True
A niche strategy is only applicable to products and not to organizations that provide services.
True / False
False
Operational planning covers a longer period of time than tactical planning.
True / False
False
A standing plan has a relatively narrow scope and goals and a clear time frame.
True / False
False
The last two steps in the planning process are implementation and control.
True / False
True
Goals must be specific.
True / False
True
According to the text, the terms goal and objectives are interchangeable.
True / False
False
Measuring performance relative to products, markets and customer service are called quality objectives.
True / False
False
A policy is a statement that reflects a plan's basic values and provides guidelines for selecting actions to achieve objectives.
True / False
True
According to the text, Proctor & Gamble use the PDCA cycle to manage environmental quality efforts.
True / False
True
Planning for continuous improvement is based on the idea that there is a single ultimate solution that will meet customer demands permanently.
True / False
False
authority:
Decision-making power that stems from a formal position in the hierarchy of an organization, as contrasted with persuasive power that stems from the personal attributes of the person holding the position.
budget:
A document that both predicts future resources and allocates resources for various purposes within the organization.
centralized planning:
A system in which responsibility for planning lies with the organization's highest level, or top management.
cycle time reduction (CTR):
Actions to reduce the time required to complete a process and to be ready to begin the cycle anew.
decentralized planning:
A system in which responsibility for planning lies with employees at several levels of the organization and participation in the planning process is widespread.
economy of time:
Saving time through reducing lost time, as in having faster inventory turns or quicker turnover of customer seats in a restaurant.
feedback:
(1) Information concerning results of activity that is conveyed to the policymakers or authority figures, enabling them to confirm, amend, or abandon the policy in question; (2) The receiver's response to the sender's message, communicated back to the sender.
forecast:
A prediction of future events, based on experience, past and current, and expectations for the future.
goal:
Specific achievements that the organization intends to accomplish, based on its mission statement.
implementation:
Putting a plan into action by assigning people and other resources to it, and by acting to achieve its design.
level of detail:
The degree of specificity.
mission statement:
A statement of the organization's purpose and intentions, its long-term vision, that distinguishes it from other organizations.
niche strategy:
The strategy of finding a unique characteristic such as design, form and speed of service, or attractiveness to a particular segment of the market.
objective:
Detailed steps that the organization intends to take in achieving its goals, stated in specific terms and accompanied by the dates on which each step is to be commenced and completed.
operational planning:
Short-term, focused, specific planning that provides direction for implementing the organization's broad concepts in the strategic plan into clear objectives for operations.
performance standards:
Levels of behaviour or output that are defined by plans.
persuasion:
The process of convincing others to accept one's ideas, beliefs, or plans for the future.
policy:
A governing principle, either written or simply understood by the individuals in an organization, that is intended to guide individual or group action in specific circumstances.
prestige strategy:
The strategy of setting high prices relative to the competition on the basis of high quality or an unusually attractive image in the market.
price penetration strategy:
The strategy of setting low prices to create a mass market rapidly.
regulation:
A ruling, often relating to administrative procedures, that specifies how individuals within an organization shall act when certain foreseen circumstances arise.
resources:
Financial, physical, human, time, and other assets of an organization that can be used to fulfil its mission, goals, and objectives.
rolling budget:
A budget that is set for a period such as a year, and then is adjusted after each period of operations, such as a month, to reflect actual results and to function for the succeeding 12 months, until amended the following month.
scope:
In planning, the range of activities covered by a plan.
single-use plan:
A plan for a defined project or purpose that will exist for a short period and become redundant when the project is completed or the purpose is fulfilled.
skimming strategy:
The strategy of setting a high price when a product is new and before competitors enter the market, with the realization that the high price will attract competitors, and that when they enter the market the price will have to be lowered.
standing plan:
A plan intended to have ongoing meaning and to be applied in an organization for a significant period.
strategic planning:
Comprehensive, long-range planning, focusing on broad, enduring issues to increase the organization's effectiveness.
tactical planning:
Planning that is more specific and for a shorter period than strategic planning but less specific and for a longer period than operational planning.
time frame:
The period of time covered.
variable budget:
A budget that reflects the fact that actual results are likely to deviate from those predicted and that allows for adjustment accordingly.
