CQA
Machine A produces six defective parts for every 1,000 parts produced, and the cost to isolate each defective part is $100.00. For every 10 parts produced, there is $1.00 of non-recyclable scrap material created. The costs of labor for each batch of 1,000 parts is $500.00. What is the internal failure costs of this 1,000 batch process?
600 *Cost of internal failure costs involves only the defective parts that should not have been created. 6 x $100.00 = $600.00
In a quality cost program the total costs of required outside endorsements or certifications, such as UL, ASTM, or the US Government falls under which quality cost category?
Appraisal costs *These are associated with measuring, evaluating, and/or auditing products or services. Therefore these costs would include the endorsements or certification of a third party agency.
In cases where a price reduction is negotiated with a customer in lieu of warranty replacement or repair, the value of the reduction should be counted as a/an:
External failure cost
Responding to a customer complaint for a defective product or service is an example of a/an:
External failure cost
An incorrect serial number is discovered on documents during final inspection. The cost of correcting the document is assigned to which of the following quality cost categories?
Internal failure
Failure cost
Involve costs resulting from products or services not conforming to requirements or customer/user needs. These include the unexpected costs.
Expenses associated with implementation of process control are an example of which cost of quality principle?
Prevention *They are associated with prevention costs, as long as they are not associated with product acceptance (appraisal).
In a quality cost program, the cost of supplier evaluation falls under which quality cost category?
Prevention cost
Which one the following is an appraisal cost? Third party audit Quality planning Continuous improvement and problem-solving training Cost of customer visits to address defective product
Third party audit