Appraisal and Failure Costs Quiz
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Questions and Answers

Which approach to quality is the closest to total quality management?

  • The zero defects approach
  • The starting point approach
  • The customer needs approach
  • The big 'Q' approach (correct)

    • What is the cost of quality?

  • The total costs incurred by a business
  • The cost of poor quality (correct)
  • The cost of training employees
  • The cost of activities required to do the job well

    • What is the range of losses due to poor quality for most businesses?

  • 5% to 10%
  • 30% to 50%
  • 10% to 15%
  • 15% to 30% (correct)

    • Which of the following is a component of the cost of quality?

    <p>Cost of conformance</p> Signup and view all the answers

    Which category of costs is associated with measuring and monitoring activities related to quality?

    <p>Appraisal costs</p> Signup and view all the answers

    What are the costs incurred to remedy defects discovered before the product or service is delivered to the customer?

    <p>Internal failure costs</p> Signup and view all the answers

    What are the costs incurred to remedy defects discovered by customers?

    <p>External failure costs</p> Signup and view all the answers

    Which costs make up the total quality costs?

    <p>Prevention costs, appraisal costs, and failure costs</p> Signup and view all the answers

    What does the total quality cost curve represent?

    <p>The total cost of quality per good unit of the product</p> Signup and view all the answers

    In which zone of the total quality cost curve do failure costs constitute more than 70% of the total quality costs?

    <p>Zone of Improvement Projects</p> Signup and view all the answers

    What is the distinction between sporadic and chronic quality problems?

    <p>Sporadic problems require restoration of the status quo, while chronic problems require a change in the status quo</p> Signup and view all the answers

    Which of the following is an example of an internal failure cost?

    <p>Rework</p> Signup and view all the answers

    Which of the following is an example of an external failure cost?

    <p>Returned products</p> Signup and view all the answers

    Which of the following best describes the relationship between prevention, appraisal, and failure costs?

    <p>Prevention costs are 10 times higher than appraisal costs</p> Signup and view all the answers

    What are hidden costs of poor quality?

    <p>All of the above</p> Signup and view all the answers

    Which of the following best describes the cost of quality?

    <p>The cost of activities incurred over and above the minimum costs required to do the job well</p> Signup and view all the answers

    What is the range of losses due to poor quality for most businesses?

    <p>15% to 30%</p> Signup and view all the answers

    Which of the following is an example of an external failure cost?

    <p>Processing customer complaints</p> Signup and view all the answers

    What is the distinction between sporadic and chronic quality problems?

    <p>Sporadic problems occur randomly, while chronic problems are continuous</p> Signup and view all the answers

    What are hidden costs of poor quality?

    <p>Costs associated with failure activities</p> Signup and view all the answers

    Which of the following is an example of an internal failure cost?

    <p>Reworking a defective product</p> Signup and view all the answers

    What is the cost of quality?

    <p>The cost of activities incurred over and above the minimum costs required to do the job well</p> Signup and view all the answers

    Which of the following is an example of a prevention cost?

    <p>Market research</p> Signup and view all the answers

    Which category of costs is associated with measuring and monitoring activities related to quality?

    <p>Appraisal costs</p> Signup and view all the answers

    Which of the following is an example of an external failure cost?

    <p>Complaint investigations</p> Signup and view all the answers

    What is the formula for calculating the cost of quality?

    <p>Cost of Quality = Cost of Conformance + Cost of Non-conformance</p> Signup and view all the answers

    Which of the following best describes the relationship between prevention, appraisal, and failure costs?

    <p>Prevention costs are incurred to prevent defects, appraisal costs are incurred to detect defects, and failure costs are incurred when defects are not prevented.</p> Signup and view all the answers

    What are the costs incurred to remedy defects discovered before the product or service is delivered to the customer?

    <p>Internal failure costs</p> Signup and view all the answers

    What is the term used to describe the costs associated with providing poor quality products or services?

    <p>Cost of quality</p> Signup and view all the answers

    Which of the following is an example of an external failure cost?

    <p>Product recalls</p> Signup and view all the answers

    What are the costs incurred to remedy defects discovered before the product or service is delivered to the customer?

    <p>Rework</p> Signup and view all the answers

    Which category of costs is associated with measuring and monitoring activities related to quality?

    <p>Appraisal costs</p> Signup and view all the answers

    What is the cost of quality?

    <p>The total expenses incurred by a company in maintaining and improving the quality of its products or services</p> Signup and view all the answers

    What are hidden costs of poor quality?

    <p>Potential lost sales and extra manufacturing costs</p> Signup and view all the answers

    What is the distinction between sporadic and chronic quality problems?

    <p>Sporadic problems occur less frequently than chronic problems</p> Signup and view all the answers

    Which of the following is a component of the cost of quality?

    <p>Non-conformance costs</p> Signup and view all the answers

    Which of the following zones on the total quality cost curve is characterized by appraisal costs exceeding failure costs?

    <p>Zone of High Appraisal Costs</p> Signup and view all the answers

    What is the relationship between failure costs and the quality of the product?

    <p>All of the above</p> Signup and view all the answers

    Which of the following is NOT a component of the total quality cost curve?

    <p>Conformance costs</p> Signup and view all the answers

    In which zone of the total quality cost curve do prevention costs constitute less than 10% of the total quality costs?

    <p>Zone of Improvement Projects</p> Signup and view all the answers

    Which of the following is true about chronic quality problems?

    <p>They are accepted as inevitable</p> Signup and view all the answers

    What is the cost associated with poor quality due to sporadic problems?

    <p>Failure costs</p> Signup and view all the answers

    What is the cost associated with poor quality due to chronic problems?

    <p>Prevention costs</p> Signup and view all the answers

    What does the Economic Conformance Level (ECL) represent?

    <p>The level of costs associated with quality</p> Signup and view all the answers

    Which zone of the total quality cost curve represents the area where the optimum level of quality improvement projects has been reached?

    <p>Zone of Indifference</p> Signup and view all the answers

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