K03

Question 1

defect

Answer 1

Any instance when a process fails to satisfy its customer

Question 2

prevention costs

Answer 2

costs associated with preventing defects before they happen

Question 3

appraisal costs

Answer 3

Costs incurred when the firm assess the performance level of its processes

Question 4

internal failure costs

Answer 4

Costs resulting from defects that are discovered during the production of a service or product.

Question 5

external failure costs

Answer 5

Costs that arise when a defect is discovered after the customer receives the service or product.

Question 6

ethical failure costs

Answer 6

costs when you purposefully send out defects

Question 7

total quality management

Answer 7

three principles for achieving high levels of process performance and quality; customer satisfaction, employee involvement, continuous improvement in performance

Question 8

six sigma

Answer 8

system for improving business success by minimizing defects

Question 9

DMAIC process

Answer 9

define, measure, analyze, improve, control

Question 10

statistical process control

Answer 10

The application of statistical techniques to determine whether a process is delivering what the customer wants

Question 11

output variations

Answer 11

variables, attitudes, sampling, sampling distribution,

Question 12

control charts

Answer 12

A time-ordered diagram that is used to determine whether observed variations are abnormal