1. External failure costs include all of the following except: A. customer compl
ID: 387048 • Letter: 1
Question
1. External failure costs include all of the following except:
A. customer complaint costs
B. inspection and testing costs
C. warranty claims costs
D. product liability costs
2. Walter Shewhart developed the:
A. control chart
B. process flow chart
C. check sheet
D. histogram
3.. Consider the number of standard deviations used to calculate the upper and lower control limits for a control chart (i.e. z = 3 on each side of the mean vs. z = 6 on each side of the mean). We would need to:
A. decrease the standard deviation in order to move from three sigma quality to six sigma quality.
B. increase the standard deviation in order to move from three sigma quality to six sigma quality.
C. decrease the mean in order to move from three sigma quality to six sigma quality.
D. adjust the tolerances in order to move from three sigma quality to six sigma quality.
4.A process is generally considered to be in control when:
A. most of the sample points are close to the center line without trending toward the control limits.
B. All of the answers are true concerning an in control process.
C. the sample points are randomly distributed with about the same number above the center line as below.
D. there are no sample points outside of the control limits.
Explanation / Answer
1. The correct answer is option B.
Quality costs are those costs associated with maintaining the quality of products or services as per the set standards. This includes the cost of producing, identifying, avoiding, eliminating or repairing products that are defective and does not meet the quality standard. The costs are: -
External failure costs include customer complaint costs, product return costs, warranty claims costs, product liability costs and lost sales costs.
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