Exam 17: The Management and Control of Quality

The desired target quality characteristic of a product of Hanson Component Manufacturing is 0.500. The customer-service manager knows that customers are likely to complain when the specification is off the desired quality characteristic by more than 0.025. On average, it costs the firm $2,000 to handle and resolve each complaint. The production manager of the Hanson Manufacturing suggests that the company test the product more thoroughly before shipping. The cost of additional testing and adjustments is estimated at $30.00 per unit. Assume that based on the company's cost information, tolerance is set at 0.0009. What should the target specification ("target specs") for the product be, to four decimal places?

Which of the following approaches to cost-system design is likely most appropriate for a lean manufacturing context?

The term performance quality refers to:

Which of the following statements about product quality is not true?

The cost of conformance in a Cost-of-Quality (COQ) reporting system includes:

Provide four reasons why both internal and external nonfinancial measures of quality are integral components of a comprehensive system for managing and controlling quality.