30 Questions
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 approach to quality is the closest to total quality management?
The big 'Q' approach
What is the emphasis in the manufacturing process according to the text?
Zero defects
What does the cost of quality measure?
The amount of money a business loses due to poor quality
What is the range of losses due to poor quality for most businesses?
15% to 30%
According to the text, what are considered the major variables in many processes?
People and their performance
What is the starting point for the big 'Q' approach to quality?
Customers and their needs
What does the mechanism that provides feedback information on product quality aim to prevent?
Recurrence of errors in the process
Which of the following activities is associated with internal failure costs?
Design changes
What are the costs resulting from products or services not conforming to requirements called?
Failure costs
Which of the following is an example of external failure costs?
Returned products
What is the relationship between prevention, appraisal, and failure costs expressed as?
1:10:100
What is the sum of all the costs associated with quality called?
Total quality costs
What is the term used for costs incurred when trying to understand the costs of poor quality?
Hidden costs
What percentage of turnover do quality costs in manufacturing companies range from?
20% to 30%
Which of the following best describes the three curves in the optimum quality cost model?
Curve 1 represents failure costs, Curve 2 represents costs of appraisal plus prevention, and Curve 3 represents the total quality cost curve.
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?
Zone of Improvement Projects
In which zone of the total quality cost curve do appraisal costs exceed failure costs?
Zone of High Appraisal Costs
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?
Zone of Indifference
What is the term used to describe a sudden, adverse change in the status quo, which requires remedy through restoration of the status quo?
Sporadic problem
What is the term used to describe a long-standing, adverse situation, which requires remedy through a change in status quo?
Chronic problem
Which type of problem requires the control process for solving?
Sporadic problems
Which type of problem requires the improvement process for solving?
Chronic problems
What are the costs associated with poor quality due to both sporadic and chronic quality problems called?
Total quality costs
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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