Cost of Quality and Leadership_TQM_GITAM AY 24-25, Prof. Balla

1. The cost associated with NOT producing quality products or services is called ________

• a) Cost of Quality
  

• b) Cost of Poor Quality Product
  

• c) Cost of Mistake
  

• d) Cost of Poor Quality Service

Answer explanation

Answer: a
Explanation: The cost associated with NOT producing quality products or services is called the Cost of Quality. It is commonly mistaken as the cost associated with producing quality products or services.

2. Costs associated with improving quality or cost of conformance is called _______

• a) Cost of Good Quality
  

• b) Cost of Poor Quality
  

• c) Cost of Improvement
  

• d) Cost of Planning

Answer explanation

Answer: a
Explanation: Costs associated with improving the quality or cost of conformance is called the cost of good quality. It is a component of the cost of quality. The cost of quality can be used as a standard measure to study an organization’s performance.

3. Costs associated with non-conformance or the costs due to poor quality is called ______

• a) Cost of Good Quality
  

• b) Cost of Poor Quality
  

• c) Cost of Improvement
  

• d) Cost of Planning

Answer explanation

Answer: b
Explanation: Costs associated with non-conformance or the costs due to poor quality is called the cost of poor quality. It is a component of the cost of quality. The cost of quality is used to understand, analyze, and improve quality performance.

4. Costs associated with the prevention of non-conformance to requirements is called _______

• a) Prevention Costs
  

• b) Appraisal Costs
  

• c) Internal Failure Costs
  

• d) External Failure Costs

Answer explanation

Answer: a
Explanation: Costs associated with the prevention of non-conformance to requirements is called Prevention Costs. It is a type of Cost of Good Quality. Cost of Good Quality is a component of the Cost of Quality.

5. Costs associated with appraising a product or service for conformance to requirements is called ______

• a) Prevention Costs
  

• b) Appraisal Costs
  

• c) Internal Failure Costs
  

• d) External Failure Costs

Answer explanation

Answer: b
Explanation: Costs associated with appraising a product or service for conformance to requirements is called Appraisal Costs. It is a type of Cost of Good Quality. Cost of Good Quality is a component of the Cost of Quality.

6. Mathematically, the cost of quality equals to _______

• a) Prevention Costs + Appraisal Costs + Internal Failure Costs + External Failure Costs
  

• b) Prevention Costs + Appraisal Costs + Internal Failure Costs – External Failure Costs
  

• c) Prevention Costs + Appraisal Costs + Internal Failure Costs * External Failure Costs
  

• d) Prevention Costs – Appraisal Costs + Internal Failure Costs + External Failure Costs

Answer explanation

Answer: a
Explanation: Mathematically, the cost of quality equals to Prevention Costs + Appraisal Costs + Internal Failure Costs + External Failure Costs. Prevention Costs and Appraisal Costs belong to the Cost of Good Quality. Internal Failure Costs and External Failure Costs belong to the Cost of Poor Quality.

7. The process of involving yourself and influencing others towards the accomplishment of goals is called _______

• a) Leadership
  

• b) Dictatorship
  

• c) Sportsmanship
  

• d) Autocracy

Answer explanation

Answer: a
Explanation: The process of influencing others towards the accomplishment of goals is called leadership. Leaders instill the will to do, show direction and help the group members in achieving company’s goal.

8. Quality leaders care about the development of people’s skills and capabilities.

• a) True
  

• b) Not applicable

• c) False

• d) None

Answer explanation

Answer: a
Explanation: Quality leaders care about the development of people’s skills and capabilities. People are responsible for their work. Quality leaders monitor, appraise and recognize people’s performance.

9. Quality leaders focus on _____________ rather than maintenance.

• a) Continuous improvement
  

• b) Discontinuous improvement

• 
  c) Static improvement
  

• d) Aesthetics

Answer explanation

Answer: a
Explanation: Quality leaders focus on continuous improvement rather than maintenance. Continuous improvement helps a company to adapt to changing customer needs.

10. Which of the following is false regarding quality leaders promoting teamwork?

• a) Multidisciplinary teamwork
  

• b) Create involvement
  

• c) Active participation of everyone
  

• d) Discourage involvement

Answer explanation

Answer: d
Explanation: Quality leaders promote teamwork by introducing multidisciplinary teamwork, creating involvement and active participation of everyone. Teamwork is essential in achieving company’s goal.