In services low in _____, the customer's impression of physical facilities, processes, and procedures is important.
a. market appeal
b. customer contact
c. customization
d. labor intensity
Answer: Labor intensity
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Quality Improvement
- Which of the following is TRUE of the four major categories of quality costs?
- Costs associated with measuring and analyzing data in order to detect and correct quality problems are:
- The costs of material, labor, and overhead incurred when scrapping a defective product prior to customer delivery are:
- For a firm with a mature and effective quality cost management system, the greatest proportion of quality cost will be found in which category?
- Which of the following is NOT a prevention cost?
- Which of the following statements about traditional accounting systems is INCORRECT?
- A judge rules that a lawn mower manufacturer must pay a liability settlement to a consumer who was injured using a defectively produced lawn mover. The cost of the settlement represents what type of cost to the manufacturer?
- Inspection is:
- Better prevention of poor quality:
- Which of the following is NOT an external failure cost?
- Which of the following is associated with defective products that have been delivered to the customer?
- The term 'dpmo' stands for:
- For most companies embarking on a quality cost program, management typically finds that actual costs, in order of highest to lowest, are:
- The cost of purchasing copies of a textbook on quality for employees as part of their training program in process improvement methods is considered:
- The cost Ford Motor Corporation incurred to recall its one-year-old Windstar vans in order to replace a faulty relay switch is an example of:
- An inspector at a shirt manufacturer discovered that over fifteen hundred shirts were manufactured with incorrect buttons. The manufacturer sold the shirts at 70% of the normal price to a retailer who specializes in "factory seconds." The revenue lost by the manufacturer is considered:
- The cost associated with unplanned machine downtime, when operators halt the production line after identifying an unacceptably high rate of defective output, should be classified as:
- A machined part is returned to the drilling department for rework. The additional labor that is used to correct the quality problem with the part is:
- Quality costs are classified into all of the following major categories EXCEPT:
- ____ uses analytical approaches and technologies such as cluster analysis, neural networks, and fuzzy logic.
- Practical guidelines for designing a performance measurement system include all of the following EXCEPT that:
- A credit card company has identified speed of service as a strength that separates it from its competitors. For this company, speed of service can be viewed as:
- An advantage of cost of quality measures is that management receives a report where the unit of analysis is:
- A common process-level measurement, extensively used in Six Sigma environments, is _____ - the probability that a unit can pass through a series of process steps without defects.
- Which of the following questions is NOT asked in the "Evaluate the performance measures to ensure their usefulness" stage to generate useful process performance measures?