chapter 4: Quality and Performance
Questions with Complete Solutions (Latest 2025) A term used by customers to describe their general satisfaction with a service or product - Correct Answers ✅Quality Any instance when a process fails to satisfy its customer - Correct Answers ✅Defect Costs associated with preventing defects before they happen
- Correct Answers ✅Prevention costs
Costs incurred when the firm assesses the performance level of its processes - Correct Answers ✅Appraisal costs Costs resulting from defects that are discovered during the production of a service or product - Correct Answers ✅Internal Failure costs Costs that arise when a defect is discovered after the customer receives the service or product - Correct Answers ✅External Failure costs A philosophy that stresses three principles (customer satisfaction, employee involvement and continuous improvement) for achieving high level of process 1 / 2
chapter 4: Quality and Performance
Questions with Complete Solutions (Latest 2025) performance and quality - Correct Answers ✅Total Quality Management A comprehensive and flexible system for achieving, sustaining, and maximizing business success by minimizing defects and variability in processes - Correct Answers ✅Six Sigma The application of statistical techniques to determine if a quantity of material from a supplier should be accepted or rejected based on the inspection or test of one or more samples. - Correct Answers ✅Acceptance Sampling The quality level desired by the consumer. - Correct Answers ✅Acceptable Quality Level The application of statistical techniques to determine whether a process is delivering what the customer wants. - Correct Answers ✅Statistical Process Control (SPC) No two services of products are exactly alike because the processes used to produce them contain many sources of variation, even if the processes are working as intended. - Correct Answers ✅Variation of Outputs
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