At Scotts Automobiles, a few machines in the assembly section were faulty and
had to be shut down till they were repaired. This reduced the output of
automobiles for the quarter. In this case, the costs incurred by Scotts Automobiles
for repairing the machines are an example of ________.
answer with letter
a.
prevention costs
b.
external failure costs
c.
appraisal costs
d.
internal failure costs - ANSWERS-d
Halo Suits faced a lot of complaints from customers when its recent batch of
goods was dispatched. The employees at Halo Suits, hence, had to rework on the
returned items, and in some cases, the company had to even replace the faulty
goods. In this case, the costs incurred by Halo Suits are an example of ________.
answer with letter
a.
prevention costs
b.
external failure costs
c.
appraisal costs
d.
internal failure costs - ANSWERS-b
Appraisal costs ________.
,Selected Answer:
answer with letter
a.
are a type of external failure cost
b.
are incurred during product design
c.
include inspection, testing, equipment and operator costs
d.
include scrap, rework, downtime, and price reductions - ANSWERS-c
David, the manager at East & West Inc., wants to know the sequence of the
production process in the company to determine if any process can be combined
or eliminated. In this case, a ________ will suit David's requirement.
a.
run chart
b.
checksheet
c.
flow chart
d.
histogram - ANSWERS-flow chart
A ________ is a basic statistical tool that graphically shows the frequency or
number of observations of a particular value or within a specified group.
a.
histogram
b.
flowchart
c.
scatter diagram
d.
,cause-and-effect diagram - ANSWERS-histogram
Which of the following quality tools display major causes of poor quality on a
graph?
answer with letter
a.
Process flow chart
b.
Histogram
c.
Cause-and-effect diagram
d.
Scatter diagram - ANSWERS-c
Identify a true statement about the poka-yoke concept.
answer with letter
a.
It is a concept advocated by Dr. W. Edwards Deming.
b.
Many applications of poka-yoke are expensive to implement.
c.
It is a manufacturing process.
d.
Many applications of poka-yoke are deceptively simple. - ANSWERS-d
Identify a true statement about kaizen.
answer with letter
a.
It is performed on a part-time basis.
b.
It is based on the concept of continuous improvement.
c.
It is an intense, rapid improvement process.
, d.
It involves a huge financial investment. - ANSWERS-b
A production process consists of the following four stages with the average
percentage of good quality at each stage as shown:
Stage
Average Percentage of Good Quality
1
0.90
2
0.92
3
0.94
4
0.85
What is the daily production yield for the company if daily input is 106 units?
answer with letter
a.
Approximately 55 units
b.
Approximately 85 units
c.
Approximately 70 units
d.
Approximately 90 units - ANSWERS-c
Refer to Question 21, suppose a six-sigma quality initiative was undertaken in
which improvements in good quality were obtained as follows:
Stage
Average Percentage of Good Quality
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