Operational Management: Statistical Quality Control and Performance Improvement

Chapter5 | Quality and Performance | true/falsE 1. The investment a company makes in training employees to perform their duties and redesigning products and processes to improve them would be categorized as prevention costs. * Answer: True * Reference: Costs of Quality * Difficulty: Moderate * Keywords: prevention cost 2. Appraisal costs are associated with preventing defects before they happen. * Answer: False * Reference: Costs of Quality * Difficulty: Moderate * Keywords: appraisal cost 3. External failure costs arise when a defect is discovered after the customer has received the product or service. * Answer: True * Reference: Costs of Quality * Difficulty: Moderate * Keywords: external failure cost 4. An example of an internal failure cost would be warranty cost. * Answer: False * Reference: Costs of Quality * Difficulty: Moderate * Keywords: internal failure cost 5. From an ethical standpoint, it is acceptable for a hospital’s cardiac surgery unit that is striving for zero complications to turn down high-risk patients. * Answer: False * Reference: Ethics and Quality * Difficulty: Easy * Keywords: quality, ethics 6. Since an employee’s responsibility is to move production along, it is ethical to knowingly pass defective services or products to internal or external customers when capacity is tight. * Answer: False * Reference: Ethics and Quality * Difficulty: Easy * Keywords: quality, ethics 7.
One of the principles that total quality management (TQM) stresses is customer satisfaction. * Answer: True * Reference: Total Quality Management * Difficulty: Easy * Keywords: TQM, customer satisfaction