Appraisal and Failure Costs Quiz
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Questions and Answers

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

  • Complaint investigations
  • Market research (correct)
  • Receiving inspection
  • Field trials
  • Which category of costs is associated with measuring and monitoring activities related to quality?

  • Internal failure costs
  • Appraisal costs (correct)
  • External failure costs
  • Prevention costs
  • Which of the following is an example of an external failure cost?

  • Rework
  • Sorting
  • Complaint investigations (correct)
  • Field trials
  • 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 approach to quality is the closest to total quality management?

    <p>The big 'Q' approach</p> Signup and view all the answers

    What is the emphasis in the manufacturing process according to the text?

    <p>Zero defects</p> Signup and view all the answers

    What does the cost of quality measure?

    <p>The amount of money a business loses due to poor quality</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

    According to the text, what are considered the major variables in many processes?

    <p>People and their performance</p> Signup and view all the answers

    What is the starting point for the big 'Q' approach to quality?

    <p>Customers and their needs</p> Signup and view all the answers

    What does the mechanism that provides feedback information on product quality aim to prevent?

    <p>Recurrence of errors in the process</p> Signup and view all the answers

    Which of the following activities is associated with internal failure costs?

    <p>Design changes</p> Signup and view all the answers

    What are the costs resulting from products or services not conforming to requirements called?

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

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

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

    What is the relationship between prevention, appraisal, and failure costs expressed as?

    <p>1:10:100</p> Signup and view all the answers

    What is the sum of all the costs associated with quality called?

    <p>Total quality costs</p> Signup and view all the answers

    What is the term used for costs incurred when trying to understand the costs of poor quality?

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

    What percentage of turnover do quality costs in manufacturing companies range from?

    <p>20% to 30%</p> Signup and view all the answers

    Which of the following best describes the three curves in the optimum quality cost model?

    <p>Curve 1 represents failure costs, Curve 2 represents costs of appraisal plus prevention, and Curve 3 represents the total quality cost curve.</p> Signup and view all the answers

    In which zone of the total quality cost curve are failure costs more than 70% of the total quality costs and prevention costs are less than 10% of the total?

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

    In which zone of the total quality cost curve do appraisal costs exceed failure costs?

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

    In which zone of the total quality cost curve are failure costs usually about half the quality costs and prevention costs are about 10% of the quality costs?

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

    What is the term used to describe a sudden, adverse change in the status quo, which requires remedy through restoration of the status quo?

    <p>Sporadic problem</p> Signup and view all the answers

    What is the term used to describe a long-standing, adverse situation, which requires remedy through a change in status quo?

    <p>Chronic problem</p> Signup and view all the answers

    Which type of problem requires the control process for solving?

    <p>Sporadic problems</p> Signup and view all the answers

    Which type of problem requires the improvement process for solving?

    <p>Chronic problems</p> Signup and view all the answers

    What are the costs associated with poor quality due to both sporadic and chronic quality problems called?

    <p>Total quality costs</p> Signup and view all the answers

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