Quality Chapter 2 Review Qtns
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Questions and Answers

Internal failure costs do NOT include:

  • Retesting reworked products
  • Reworking defective products
  • Quality planning expenses (correct)
  • Scrapping defective products
  • Total Quality Management (TQM) prioritizes short-term profits over long-term customer satisfaction.

    False (B)

    Which factor of production is most impacted by cutting a company's training staff by 50%?

  • Capital
  • Entrepreneurship
  • Labor (correct)
  • Knowledge
  • The “hidden factory” refers to:

    <p>Internal activities that cause additional costs due to poor quality (D)</p> Signup and view all the answers

    Process maps are mainly used in quality management to represent organizational hierarchy.

    <p>False (B)</p> Signup and view all the answers

    Which of the following is categorized as a fixed cost?

    <p>Rent (D)</p> Signup and view all the answers

    In a newly launched quality initiative, a high focus is placed on preventing problems from reaching customers. This corresponds to which phase?

    <p>Phase I</p> <p>(A)</p> Signup and view all the answers

    The ultimate consequence of nonconformance in quality management is:

    <p>Loss of money, trust, and customers (D)</p> Signup and view all the answers

    A company focused on minimizing appraisal costs would most likely invest in:

    <p>Automated inspections (B)</p> Signup and view all the answers

    Which cost category includes the expenses for quality training and capability studies?

    <p>Prevention costs (C)</p> Signup and view all the answers

    Which term best describes the balance between a product’s availability and its market demand?

    <p>Supply and demand (C)</p> Signup and view all the answers

    Benchmarking involves comparing a company's processes and performance metrics to industry best practices.

    <p>True (A)</p> Signup and view all the answers

    Which of the following is NOT one of the four types of quality costs?

    <p>Marketing (B)</p> Signup and view all the answers

    The cost of poor quality (COPQ) primarily includes:

    <p>Losses due to defects and rework (B)</p> Signup and view all the answers

    he five factors of production include:

    <p>Land, labor, capital, entrepreneurship, and knowledge (B)</p> Signup and view all the answers

    External failure costs are typically associated with:

    <p>Customer claims and product recalls (D)</p> Signup and view all the answers

    A Control Chart is a statistical tool used to monitor the stability and predictability of processes over time.

    <p>True (A)</p> Signup and view all the answers

    The Deming Cycle, also known as PDCA, stands for Plan, Do, Check, Act.

    <p>True (A)</p> Signup and view all the answers

    Six Sigma methodology focuses on reducing process variations to improve quality and efficiency.

    <p>True (A)</p> Signup and view all the answers

    When evaluating potential quality improvements, process technicians should emphasize:

    <p>Return on investment through quality cost savings (D)</p> Signup and view all the answers

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