Long Test 2: Benefits of TQM

Question 1

What are the Tangible Benefits

Answer 1

1. Cost of Poor Quality

2. Waste

Question 2

What are the Intangible Benefits

Answer 2

1. Increased Customer Satisfaction
2. Increased Workforce Satisfaction and Motivation
3. Improved Environment Impacts

Question 3

The costs associated with providing poor-quality products and services.

Answer 3

Cost of Poor Quality

Question 4

The most obvious tangible benefit of quality improvement is _____

Answer 4

the reduction of costs associated with non-quality.

Question 5

4 Categories of Quality Costs

Answer 5

1. Prevention Costs
2. Appraisal Costs
3. Internal Failure Costs
4. External Failure Costs

Question 6

Costs incurred to avoid or minimize the failures.

Answer 6

Prevention Costs

Question 7

Costs involved in determining the degree of conformance to the quality requirements.

Answer 7

Appraisal Costs

Question 8

Costs associated with defects found before the customer receives the product or service.

Answer 8

Internal Failure Costs

Question 9

Costs associated with defects found at customer’s site.

Answer 9

External Failure Costs

Question 10

Refer to “non-value added activities” and “process waste”.

Answer 10

Waste

Question 11

7 Types of Wastes (Ohno, 1988)

Answer 11

Transport
Inventory
Motion
Waiting
Over-production
Over-processing
Defects

Question 12

Deming’s Chain Reaction

Answer 12

1. Improve Quality
2. Costs reduce because of less waste, defects, etc
3. Productivity improves
4. Capture market with better quality & lower price
5. Stay in business & provide more and more jobs

Question 13

Give the Intangible Benefits

Answer 13

1. Increased Customer Satisfaction
2. Increased Workforce Satisfaction and Motivation
3. Improved Environment Impacts