13 Questions
What type of costs are associated with defective parts or faulty services?
Failure Costs
Which of the following departments is typically responsible for ensuring quality in a product or service?
Quality Assurance
What is a key benefit of maintaining good quality in a product or service?
Increasing customer satisfaction
What is the primary objective of implementing quality assurance processes?
To reduce costs associated with quality
What is the relationship between quality and costs?
Better quality products lead to lower costs
What type of costs are incurred to fix problems detected after the product or service is delivered to the customer?
External Failure Costs
What is the primary purpose of Prevention Costs?
To improve product quality by reducing defects
What is considered unethical in the context of quality?
Having knowledge of substandard work and failing to correct it
What is an example of substandard work?
Using poor designs and materials
What is the benefit of investing in Prevention Costs?
Reducing External Failure Costs
What is one of the key contributions of Walter Shewart to quality control?
Development of Control Charts
Since when has quality been increasingly embraced by U.S. executives?
1980s
What is the result of applying variance reduction principles in quality control?
Improved product reliability
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.
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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