Quality Cost L2

Question 1

It is the sum of costs incurred by an organization in preventing poor quality

Answer 1

Cost of Quality

Question 2

It is the costs of all the activities specifically designed to prevent poor quality product or service

Answer 2

Prevention Cost

Question 3

Costs that are spent to defect to assure conformance to quality standards. It is a cost expenditure on inspection and testing. It focuses on the discovery of the facts rather than prevention of defects.

Answer 3

Appraisal Cost

Question 4

Incurred by an organization because the product or service did not meet the expected requirements and the product had to be fixed or replaced or the service had to be repeated.

Answer 4

Failure Cost

Question 5

Classification of Failure Cost

Answer 5

Internal failure Cost
External failure Cost

Question 6

These are the failure cost occurring prior to the delivery or shipment of the product or the furnishing of service to the customer. These are the cause that would disappear if no defects is found in a product before disappearing

Answer 6

Internal failure Cost

Question 7

These are the costs incurred after the product is dispatch to the consumer. It may include the cost to the business of riding a bad service or product and this may also result in two cancellation of order.

Answer 7

External failure Cost

Question 8

It is to increase prevention activities in order to eliminate internal and external failures and to reduce appraisal activities

Answer 8

Goal of COQ system

Question 9

It is to increase prevention activities in order to eliminate internal and external failure and reduce appraisal activity

Answer 9

Goal of cost of quality system

Question 10

It is one of the most important functions of management that involves directing influencing and motivating employees to perform

Answer 10

Leadership

Question 11

Deming’s 14 points

Answer 11

1Create a constant purpose towards improvement
2. Adapt the new philosophy
3. Stop depending on inspections
4. Use a single supplier for any one item
5. Improve constantly and forever
6. Use training
7. Implement leadership
8. Instill a fearless atmosphere
9. Break down barriers between departments
10. Eliminate slogans, exhortation, and target setting
11. Eliminate management by objectives
12. Remove barriers to pride of workmanship
13. Encourage education and self-improvement for everyone
14. Put and one in the company to work on the transformation

Question 12

10 strategies for top management

Answer 12

1. Proactive management
2. Adventures and bold management
3. Take right decisions/ drift
4. Continuous preventive action
5. Carefully to things and accumulate gains
6. Ensure economic performance
7. Management by walking around
8. Measure of success
9. Never rest on pass laurels; continue to improve
10. Build a virtual organization