Process Based Costs

Question 1

What are the two most frequent quality measures, normally found within the Define and Measure phases of DMAIC, of a process improvement project?

Answer 1

1. Cost of Poor Quality (COPQ)

2. Defects per Million Opportunities (DPMO)

Question 2

COPQ is broken down into ______ and ______ failure costs

Answer 2

internal / external

Question 3

Cost of Good Quality is made up of ______ and ______ costs.

Answer 3

appraisal / prevention

Question 4

T or F

Overall Quality, which is the sum of good and poor quality costs, represents the difference between actual product or service generation and perfection.

Answer 4

T

Question 5

T or F

An increase in Sigma Quality Level equates to a greater defect rate.

Answer 5

F - reduces the rate

Question 6

DPMO is calculated by dividing the number of ______ per day by number tested each day, then multiplying result by _____ _____.

Answer 6

failures / one million

Question 7

COPQ is determined by multiplying _______ per day by the number of days a company is in operation per year, then multiplying result by cost of ____-____.

Answer 7

failure / re-work