Question

1. Which of the following is LEAST likely to be a challenge when implementing a large change management project such as an ERP system?

a) Inability to align the system with the organization’s mission and vision

b) Resistance from employees

c) Inability to realize potential returns from the system

d) Challenges with legacy systems that cannot be integrated

2. The Lake Loon Conservation Authority (LLCA) is a struggling partnership of local government agencies working toward wise management of the water and land resources of the Lake Loon watershed. The watershed is also home to a large area of valuable farmed land. The expenses for the current year are typical of the past few years: • settlement of property damage claims: $1,000,000 • pollution remediation: $500,000 • water monitoring and inspection stations: $350,000 • fines for non-compliance with environment laws: $300,000 • consultant costs to identify conservation concerns: $200,000 • lake and land restoration: $200,000 • watershed studies to understand ecosystem: $100,000 Using the theory behind cost of quality (COQ) and the specific expense data above, what is your recommendation for revising the annual expenditures of LLCA?

a) Increase internal failure costs.

b) Increase external failure costs

c) Increase prevention and appraisal costs.

d) Increase total quality costs.

Answer 1

Answer to Question.1

From the following alternatives, option D, i.e. Challenges with legacy systems that cannot be integrated is LEAST likely to be a challenge when implementing a large change management project such as an ERP system

Answer to Question.2

From the following alternatives. Option C i.e. Increase prevention and appraisal cost is the correct answer as the internal and external costs are already very high. Therefore, in order to get a balanced Cost of Quality prevention and appraisal cost should be increased.