Exam 17: The Management and Control of Quality

In a Cost-of-Quality (COQ) reporting framework, costs incurred in conjunction with the measurement and analysis of data to ascertain conformity of products and services to specification are properly classified as:

In a Cost of Quality (COQ) report, sales returns and allowances due to quality deficiency would be classified as:

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?

Studies have shown that improvements in quality can lead to:

Which of the following items is not a tool that can be used by management to take corrective action in a process deemed out of control?

The following data of causes of absenteeism for a fellow student for the year just completed were available. Required: 1. Use the above information to construct a histogram. 2. Use the information from requirement (1) to prepare a Pareto diagram. (Note: In constructing the above two items, you can use the information in column 1 to describe each of the identified causes. That is, you can use the reference numbers rather than the actual verbal descriptions. presented in column 2.) 3. Within the context of managing and control quality, what is the primary purpose played by tools such as histograms and Pareto diagrams?

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

How much do you expect total external failure costs to change?

A graphical method that organizes a chain of causes and effects to sort out root causes and identify relationships between causes or variables is a(n):

All of the following are examples of internal nonfinancial quality indicators except:

List three examples of quality improvement in a manufacturing facility that would lead to increased sales productivity.

Provide a definition of the term "quality," as used in Chapter 17 of the text. Into what two categories (or dimensions) can total quality be divided? Define each of these two dimensions. How, conceptually, can cost management contribute to the management of each of these two dimensions of quality?

In a Cost-of-Quality (COQ) reporting framework, the cost of scrap, rework, and tooling changes are categorized as a(n):

Which of the following is not true regarding the determination of relevant costs and relevant revenues associated with quality-related initiatives (such as the move to JIT production)?

Conformance to a quality standard that requires all products or services to meet exactly the target value with no variation allowed is:

Within the context of managing and controlling quality, the term "tolerance" refers to all of the following except:

Value stream income statements, which are part of a lean accounting system, have all of the following characteristics except:

Listed below are 6 items concerned with quality. Required: Classify each of these items into its appropriate Cost-of-Quality (COQ) category: Prevention Cost; Appraisal Cost; Internal Failure Cost; or External Failure Cost. 1. Establish a 24-hour hot line for customers to report quality failures. 2. Establish a quality-inspection program. 3. Re-design parts and components to simplify manufacturing of the product. 4. Hire additional field service people to provide better services. 5. Extend the warranty period for products from 90 days to one year. 6. Train employees on the importance of zero defects.

The Taguchi Quality Loss Function (QLF) demonstrates that as the quality measure of a product declines, the loss due to quality defects:

Which one of the following is not a category of the Cost of Quality (COQ) reporting model?