45 Questions
Which approach to quality is the closest to total quality management?
The big 'Q' approach
What is the cost of quality?
The cost of poor quality
What is the range of losses due to poor quality for most businesses?
15% to 30%
Which of the following is a component of the cost of quality?
Cost of conformance
Which category of costs is associated with measuring and monitoring activities related to quality?
Appraisal costs
What are the costs incurred to remedy defects discovered before the product or service is delivered to the customer?
Internal failure costs
What are the costs incurred to remedy defects discovered by customers?
External failure costs
Which costs make up the total quality costs?
Prevention costs, appraisal costs, and failure costs
What does the total quality cost curve represent?
The total cost of quality per good unit of the product
In which zone of the total quality cost curve do failure costs constitute more than 70% of the total quality costs?
Zone of Improvement Projects
What is the distinction between sporadic and chronic quality problems?
Sporadic problems require restoration of the status quo, while chronic problems require a change in the status quo
Which of the following is an example of an internal failure cost?
Rework
Which of the following is an example of an external failure cost?
Returned products
Which of the following best describes the relationship between prevention, appraisal, and failure costs?
Prevention costs are 10 times higher than appraisal costs
What are hidden costs of poor quality?
All of the above
Which of the following best describes the cost of quality?
The cost of activities incurred over and above the minimum costs required to do the job well
What is the range of losses due to poor quality for most businesses?
15% to 30%
Which of the following is an example of an external failure cost?
Processing customer complaints
What is the distinction between sporadic and chronic quality problems?
Sporadic problems occur randomly, while chronic problems are continuous
What are hidden costs of poor quality?
Costs associated with failure activities
Which of the following is an example of an internal failure cost?
Reworking a defective product
What is the cost of quality?
The cost of activities incurred over and above the minimum costs required to do the job well
Which of the following is an example of a prevention cost?
Market research
Which category of costs is associated with measuring and monitoring activities related to quality?
Appraisal costs
Which of the following is an example of an external failure cost?
Complaint investigations
What is the formula for calculating the cost of quality?
Cost of Quality = Cost of Conformance + Cost of Non-conformance
Which of the following best describes the relationship between prevention, appraisal, and failure costs?
Prevention costs are incurred to prevent defects, appraisal costs are incurred to detect defects, and failure costs are incurred when defects are not prevented.
What are the costs incurred to remedy defects discovered before the product or service is delivered to the customer?
Internal failure costs
What is the term used to describe the costs associated with providing poor quality products or services?
Cost of quality
Which of the following is an example of an external failure cost?
Product recalls
What are the costs incurred to remedy defects discovered before the product or service is delivered to the customer?
Rework
Which category of costs is associated with measuring and monitoring activities related to quality?
Appraisal costs
What is the cost of quality?
The total expenses incurred by a company in maintaining and improving the quality of its products or services
What are hidden costs of poor quality?
Potential lost sales and extra manufacturing costs
What is the distinction between sporadic and chronic quality problems?
Sporadic problems occur less frequently than chronic problems
Which of the following is a component of the cost of quality?
Non-conformance costs
Which of the following zones on the total quality cost curve is characterized by appraisal costs exceeding failure costs?
Zone of High Appraisal Costs
What is the relationship between failure costs and the quality of the product?
All of the above
Which of the following is NOT a component of the total quality cost curve?
Conformance costs
In which zone of the total quality cost curve do prevention costs constitute less than 10% of the total quality costs?
Zone of Improvement Projects
Which of the following is true about chronic quality problems?
They are accepted as inevitable
What is the cost associated with poor quality due to sporadic problems?
Failure costs
What is the cost associated with poor quality due to chronic problems?
Prevention costs
What does the Economic Conformance Level (ECL) represent?
The level of costs associated with quality
Which zone of the total quality cost curve represents the area where the optimum level of quality improvement projects has been reached?
Zone of Indifference
Test your knowledge on appraisal and failure costs with this quiz! Learn about the activities associated with appraisal costs and the different categories of failure costs. Challenge yourself and enhance your understanding of cost management.
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