Quality costing is similar in service and manufacturing organizations. Nevertheless, the differences between these organizations have certain implications for quality management. Thus,
Answer(s): B
External failure costs arise when problems occur after delivery. They occur because products or services are nonconforming or otherwise do not satisfy customers. External failure costs in service enterprises are even more important than in manufacturing environments. Faulty goods sometimes maybe reworked or replaced to a customer's satisfaction, but poor service tends to result in a loss of customers.
A means of limiting production delays caused by equipment breakdown and repair is to:
Answer(s): D
A preventive maintenance program reduces equipment breakdowns and repairs.
The cost of statistical quality control in a product quality cost system is categorized as a(n):
The following are the four categories of quality costs: prevention, appraisal, internal failure, and external failure (lost opportunity). Appraisal costs include quality control programs, inspection, and testing. However, some authorities regard statistical quality and process control as preventive activities because they not only detect faulty work but also allow for adjustment of processes to avoid future defects.
An organization has collected data on the complaints made by personal computer users and has categorized the complaints.Using the information collected, the organization should focus on:
Answer(s): C
Complaints based on lack of user knowledge and hardware problems are by far the most frequent according to this chart. Consequently, the company should devote its resources primarily to these issues.
An organization has collected data on the complaints made by personal computer users and has categorized the complaints.The chart displays the:
This Pareto diagram depicts the frequencies of complaints in absolute terms. It displays the actual number of each type of complaint. The chart does not display arithmetic means, relative frequencies, or medians of each type of complaint.
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