Costs of Quality in Customer Service
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Questions and Answers

What type of costs are associated with defective parts or faulty services?

  • Failure Costs (correct)
  • Appraisal Costs
  • Internal Failure Costs
  • Prevention Costs
  • Which of the following departments is typically responsible for ensuring quality in a product or service?

  • Research and Development
  • Marketing and Sales
  • Customer Service
  • Quality Assurance (correct)
  • What is a key benefit of maintaining good quality in a product or service?

  • Reducing production costs
  • Improving marketing efforts
  • Enhancing supply chain management
  • Increasing customer satisfaction (correct)
  • What is the primary objective of implementing quality assurance processes?

    <p>To reduce costs associated with quality</p> Signup and view all the answers

    What is the relationship between quality and costs?

    <p>Better quality products lead to lower costs</p> Signup and view all the answers

    What type of costs are incurred to fix problems detected after the product or service is delivered to the customer?

    <p>External Failure Costs</p> Signup and view all the answers

    What is the primary purpose of Prevention Costs?

    <p>To improve product quality by reducing defects</p> Signup and view all the answers

    What is considered unethical in the context of quality?

    <p>Having knowledge of substandard work and failing to correct it</p> Signup and view all the answers

    What is an example of substandard work?

    <p>Using poor designs and materials</p> Signup and view all the answers

    What is the benefit of investing in Prevention Costs?

    <p>Reducing External Failure Costs</p> Signup and view all the answers

    What is one of the key contributions of Walter Shewart to quality control?

    <p>Development of Control Charts</p> Signup and view all the answers

    Since when has quality been increasingly embraced by U.S. executives?

    <p>1980s</p> Signup and view all the answers

    What is the result of applying variance reduction principles in quality control?

    <p>Improved product reliability</p> Signup and view all the answers

    Study Notes

    Costs of Quality

    • Failure Costs: costs incurred due to defective parts/products or faulty services, including external failure costs that occur after the product/service is delivered to the customer.

    Appraisal and Prevention Costs

    • Appraisal Costs: costs of activities designed to ensure quality or uncover defects.
    • Prevention Costs: costs associated with Total Quality (TQ) training, TQ planning, customer assessment, process control, and quality improvement to prevent defects.

    Ethics and Quality

    • Substandard work: includes defective products, substandard service, poor designs, shoddy workmanship, and substandard parts and materials.
    • Unethical behavior: having knowledge of substandard work and failing to correct and report it in a timely manner.

    Quality Contributors

    • Walter Shewart: known as the “father of statistical quality control”, contributed to quality control through control charts and variance reduction.

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    Description

    This quiz covers the costs associated with quality control in customer service, including failure costs incurred by defective products or services.

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