T2 ACMB333

What are the four types of quality costs?

• Appraisal, Prevention, Internal Failure, External Failure

• Prevention, Detection, Testing, Failure

• Inspection, Appraisal, Product Recall, Failure

• Appraisal, Internal Testing, External Defects, Prevention

Which of the following is NOT an example of internal failure cost?

• Scrap

• Rework

• Customer Complaints

• Downtime

Quality is often referred to as the ‘degree or grade of _____.’

The main objective of appraisal costs is to:

• Reduce failure costs

• Improve customer satisfaction

• Detect nonconforming products before shipment

• Increase sales revenue

Which category of quality costs tends to be the most devastating to a business?

• Internal Failure

• External Failure

• Appraisal

• Prevention

A key objective of environmental management is to:

• Increase pollution control costs

• Reduce the consumption of resources

• Maximize external failure costs

• Eliminate internal audits

The more you spend on prevention costs, the less you will need to spend on external failure costs.

• TRUE

• FALSE

The multiplier method is used to calculate quality loss using the Taguchi loss function.

• TRUE

• FALSE

_____________costs are incurred after products have been delivered to customers

Which of the following is a hidden quality cost?

• Scrap

• Warranty claims

• Lost market share

• Inspection costs