Chapter 12

The following table lists all costs of quality incurred by Sam's Surf Shop last year. What was Sam's appraisal cost for quality last year?

Of all these costs, only inspection and testing costs would be considered as appraisal costs. $165,000 + $528,000 = $693,000.

What are the four general categories of quality costs?

Appraisal and prevention costs are two of the costs associated with improving quality. Internal failure and external failure costs are associated with producing bad quality.

A manufacturing company has been inspecting units of output from a process. Each product inspected is evaluated on five criteria. If the unit does not meet standards for the criteria it counts as a defect for the unit. Each unit could have as few as zero defects, and as many as five. After inspecting 2,000 units, they discovered 33 defects. What is the DPMO measure for this process? (Round your answer to the nearest whole number.)

DPMO= (33/(5*2,000))*1,000,000= 3,300

A customer call center is evaluating customer satisfaction surveys to identify the most prevalent quality problems in their process. Specific customer complaints have been analyzed and grouped into eight different categories. Every instance of a complaint adds to the count in its category. Which Six Sigma analytical tool would be most helpful to management here?

Pareto charts are very useful in identifying what issues cause the greatest amount of quality problems in business operations.

What is the term that means making the person who does the work responsible for ensuring that specifications are met?

Quality at the source is the term commonly used for a system where workers are given the responsibility for making sure the product is good before it leaves their area.

What is the name of the national quality award given by the government of the United States?

The Malcolm Baldrige National Quality Award is named for a former Secretary of Commerce, and is the national quality award of the United States.

Below is a table of data collected over a six-month period in a local grocery store. Determine the percentage of total complaints represented by the two most common categories. (Round your answer to the nearest whole number.)

The two most common complaints are stock condition with 170 complaints, and product request with 105 complaints. There are a total of 723 complaints, so the top two complaint categories account for ((170 + 105)/723) × 100 = 38% of the total complaints.