Question

Platanus Inc. was one of the largest manufacturers of automobile engines and fixtures. Platanus Inc.'s management created an automated process of improving efficiency and minimizing human error in its production process so that the company produced zero-defect engines. Employees were monetarily rewarded when their units were free from defects. It also maintained relevant managerial accounting information regarding the cost of existing poor quality and efforts to improve future quality. Based on the information, which of the following is the most likely conclusion?

a. philosophy of strategic positioning.
b. philosophy of customer orientation.
c. philosophy of value chain management.
d. philosophy of total quality management.

Answer 1

Answer: The correct answer is "d. philosophy of total quality management.".

Explanation: Platanus Inc. was clearly focused on the quality of its products, as it created an automated process to improve efficiency and minimize human error in its production process so that the company produces zero defect engines, so that they reward their employees when they occur with 0 defects.

So based on the information, the most likely conclusion is that Platanus Inc applied the philosophy of total quality management.