Part - 2 Quality Concepts

The correct answer is "a. Cost of Quality." COQ stands for Cost of Quality, which refers to the total cost incurred by an organization in order to achieve and maintain a certain level of quality in its products or services. This includes both the cost of preventing defects and the cost of correcting defects. By measuring and analyzing the cost of quality, organizations can identify areas of improvement and make informed decisions to optimize their quality management processes.

PDCA, which stands for Plan-Do-Check-Act, is a widely used tool for continuous improvement. It is a four-step management method used to achieve continuous improvement in various processes and systems. The PDCA cycle involves planning a change or improvement, implementing the plan, checking the results, and then acting on those results to make further improvements. This iterative process helps organizations identify and address problems, make data-driven decisions, and continuously improve their performance. SPOC, on the other hand, stands for Single Point of Contact and is not directly related to continuous improvement tools.

Rework is an example of failure cost because it refers to the cost incurred when a product or service does not meet the required quality standards and needs to be fixed or redone. This cost includes the labor, materials, and time spent on correcting the errors or defects. Failure costs are incurred after the product or service has been completed and are a result of non-conformance to specifications. In this case, rework is a cost associated with the failure to produce a satisfactory product or service initially, leading to additional expenses to rectify the issue.

The correct answer is a. Internal Failure cost & External Failure Cost. This is because failure costs can be categorized into two types: internal failure costs, which occur before the product or service is delivered to the customer, and external failure costs, which occur after the product or service has been delivered to the customer. Internal failure costs include the costs of rework, scrap, and retesting, while external failure costs include the costs of warranty claims, customer returns, and customer dissatisfaction.

Continuous improvement is a subset of continual improvement because continuous improvement refers to the ongoing process of making incremental changes and improvements to a system or process, while continual improvement encompasses a broader concept that includes both continuous improvement and more significant transformative changes. In other words, continual improvement encompasses continuous improvement as well as other methods of improvement that may involve larger-scale changes or innovations. Therefore, it is accurate to say that continuous improvement is a subset of continual improvement.

The correct answer is a. Failure cost, Prevention Cost, and Appraisal Cost. Total Quality Cost refers to the overall cost incurred by an organization to ensure and maintain the quality of its products or services. Failure costs are the costs associated with defects or errors that are identified after the product or service has been delivered. Prevention costs are the expenses incurred to prevent defects from occurring in the first place, such as quality training and quality planning. Appraisal costs are the expenses incurred to evaluate and inspect the products or services to ensure they meet the required quality standards.

The act of giving confidence and the state of being certain are both related to ensuring the quality of a product or service. Quality Assurance involves the processes and activities that are implemented to provide confidence that the product or service will meet the specified requirements and expectations. It focuses on preventing defects and ensuring that the desired level of quality is achieved. Quality Control, on the other hand, involves the activities that are performed to verify and validate the product or service against the specified requirements. While both are important in ensuring quality, the act of giving confidence and being certain align more closely with Quality Assurance.

Kano mode is a mirror of VOC (Voice of the Customer). VOC refers to the process of capturing and analyzing customer feedback, needs, and expectations to prioritize product or service improvements. Kano mode is a technique used to categorize customer requirements based on their impact on customer satisfaction. It helps in identifying and prioritizing features or attributes that will delight customers and differentiate a product or service from competitors. Therefore, Kano mode reflects the customer's voice and helps in understanding their preferences and expectations.

The correct answer is a) External Failure Cost. Customer return goods delivered refers to the situation where customers return the goods they have received due to defects or dissatisfaction. This represents a failure in the product or service provided by the company, resulting in additional costs such as transportation, handling, and potential loss of customer trust. These costs are categorized as external failure costs because they occur after the product has been delivered to the customer and are incurred outside the company's control.

The cost of calibration is considered an appraisal cost because it involves the evaluation and verification of equipment or instruments to ensure they are functioning correctly and providing accurate measurements. This cost is incurred to prevent defects or errors from occurring in the calibration process, thus ensuring the quality and reliability of the equipment.

The term "Punch In Time Work" refers to a measurement or standard used to track and record the time an employee starts working. It is a quantitative measure that helps in monitoring and evaluating the punctuality and attendance of employees. Therefore, it can be categorized as a metric, which is a quantifiable measure used to assess performance or progress.

Quality planning is a proactive approach to ensure that quality standards are met throughout the entire project or process. It involves creating a detailed plan that outlines the steps, resources, and activities required to achieve the desired level of quality. Prevention costs, on the other hand, are costs incurred to prevent defects from occurring in the first place. Quality planning falls under prevention costs because it involves activities and resources dedicated to preventing quality issues and defects from arising.

Quality assurance refers to the planned and systematic activities that are implemented in a quality system to ensure that the quality requirements for a product or service are met. It involves establishing processes, procedures, and standards to prevent defects and errors in the production or delivery of a product or service. Quality assurance focuses on preventing issues from occurring in the first place, rather than detecting and fixing them afterwards. It is a proactive approach to quality management that aims to ensure consistent and reliable results.

Continuous improvement refers to an ongoing effort to enhance product service or process. It involves making incremental changes and adjustments to improve efficiency, quality, and customer satisfaction. This approach emphasizes the importance of constantly seeking opportunities for improvement and making small, continuous changes rather than waiting for a major overhaul. Continuous improvement is a key principle in various quality management methodologies, such as Lean and Six Sigma, and is widely adopted in organizations across industries to drive innovation and maintain a competitive edge.

Training is considered a prevention cost because it is an investment made to prevent defects or errors from occurring in the first place. By providing proper training to employees, organizations can ensure that they have the necessary skills and knowledge to perform their tasks effectively and efficiently, reducing the likelihood of mistakes or quality issues. This proactive approach helps prevent the need for additional costs associated with fixing errors or defects later on, making training an essential component of prevention cost.

COPQ stands for Cost of Poor Quality, which refers to the total cost incurred by an organization due to quality problems. This includes costs associated with rework, scrap, customer complaints, and warranty claims. According to Juran, COPQ is the sum of all costs that would disappear if there were no quality problems. In other words, if a company could eliminate all quality issues, they would also eliminate the costs associated with those issues. This perspective emphasizes the importance of preventing quality problems in order to reduce costs and improve overall performance.

Process capability evaluation refers to the assessment of a process's ability to consistently produce products within specified tolerances. Appraisal cost, as the correct answer, is the cost incurred to evaluate, inspect, and test the products or processes to ensure they meet the required quality standards. This cost includes activities such as inspection, testing, and auditing. On the other hand, prevention cost refers to the expenses incurred to prevent defects and errors from occurring in the first place, such as training, quality planning, and process improvement.

Audits come under appraisal cost because they involve the evaluation and examination of processes, systems, and financial records to ensure compliance with established standards and regulations. Appraisal costs are incurred to assess and verify the quality of products, services, or processes, which aligns with the purpose of audits. By conducting audits, organizations can identify any non-conformities, errors, or inefficiencies, and take corrective actions to improve quality and prevent future issues. Therefore, audits are considered a form of appraisal cost.

Quality control refers to the set of techniques and activities used to ensure that a product or service meets specified quality requirements. It involves monitoring and inspecting the product or service at various stages of production to identify any defects or deviations from the desired quality standards. Quality control aims to prevent defects and ensure that the final product or service meets the expectations of the customer. In contrast, quality assurance focuses on the overall process of quality management and involves activities such as planning, implementing, and evaluating quality systems.

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Continual improvement refers to an ongoing process of making gradual enhancements and adjustments in various areas. It implies that improvement is not a one-time event but a continuous effort to refine and optimize processes, products, and services. This approach recognizes that there is always room for improvement and encourages organizations to constantly seek ways to enhance their performance and meet changing customer needs. Continuous improvement, on the other hand, refers to a specific methodology that involves making incremental changes to processes over time. However, in this case, the correct answer is "continual improvement" as it encompasses a broader concept of ongoing enhancements in various areas.

The correct answer is "b. Specification". In the given statement, it is mentioned that in order to pass in QPEP, 80%-85% of the questions should be answered correctly. This indicates that the requirement or standard for passing in QPEP is defined by a specification, which outlines the percentage of correctly answered questions. Therefore, the correct answer is "b. Specification".

The correct answer is a. Threshold attributes. Threshold attributes refer to the minimum or maximum acceptable levels of performance for a particular system or device. In the case of an ATM machine, it must meet certain threshold attributes such as minimum transaction speed, maximum transaction limit, and acceptable error rate. These attributes define the minimum standards that the ATM machine must meet in order to provide a satisfactory user experience.

Performance attributes refer to the characteristics of a product or service that directly impact its functionality and effectiveness in meeting the customer's needs. In this scenario, the customer is looking for a product to be delivered at their doorstep, which is directly related to the performance of the delivery service. Therefore, the correct answer is b. Performance Attributes.

The offer of free laptops and a UK tour for studying MBA in IIMB is an example of an excitement attribute. This is because the offer is likely to generate excitement and enthusiasm among potential students. It adds a sense of thrill and anticipation to the decision-making process, making the opportunity more attractive and appealing.

The correct answer is C. Quality Policy. A quality policy is a formal statement by top management that expresses the overall intentions and direction of an organization with regard to quality. It outlines the organization's commitment to meeting customer requirements, continuous improvement, and adherence to quality standards. A quality policy provides a framework for establishing quality objectives and ensures that all employees understand and align with the organization's quality goals.

The cost of quality includes the cost of all work to build a product or service that conforms to the requirements, as well as the cost of training programs. Additionally, it also includes the cost of all work resulting from nonconformance to the requirements. Therefore, the correct answer is E, all of the above.

Quality Assurance is the process of evaluating overall project performance on a regular basis to provide confidence that the project will satisfy the relevant quality standards. It involves systematic activities that ensure that the project is being executed according to the defined processes and standards. Quality Assurance focuses on preventing defects and errors and involves activities such as audits, reviews, and process improvements. It aims to provide assurance that the project will meet the quality requirements and deliver a high-quality product or service.

This answer suggests that the free CAB facilities for HGS employees fall under the category of threshold attributes. Threshold attributes are basic features or benefits that customers expect from a product or service. In this case, the free CAB facilities are likely considered a basic requirement or expectation for HGS employees, rather than a unique or exciting feature.

The act of guiding a process refers to ensuring that the process is carried out correctly and meets the desired standards. Quality control involves monitoring and inspecting the process to identify any deviations or defects and taking corrective actions to maintain quality. Quality assurance, on the other hand, focuses on preventing defects and ensuring that the process is designed and implemented effectively. Therefore, quality control is the correct answer as it aligns with the concept of guiding and monitoring a process to maintain its quality.

Quality control is the process of monitoring specific project results to determine if they comply with relevant quality standards. It involves inspecting and testing the deliverables to identify any defects or deviations from the quality standards. This ensures that the final product or service meets the desired level of quality. Quality control is an important aspect of project management as it helps in identifying and rectifying any issues before the final delivery, thus ensuring customer satisfaction and meeting project objectives.

The concept of making a giant leap forward followed by a period of maturity is known as innovation. Innovation refers to the process of introducing new ideas, products, or methods that significantly improve or revolutionize existing systems or practices. This concept suggests that after a breakthrough or innovative idea, there is a period of refinement and development to ensure its success and widespread adoption.

The correct answer is D. "b and c" because quality can be defined as both conformance to requirements (ensuring that a product or service meets specified standards and expectations) and the totality of features and characteristics that contribute to its ability to satisfy stated or implied needs. Therefore, both options b and c are correct.

Process control is not considered a cost of nonconformance to quality because it is actually a preventive measure to ensure quality. Process control involves monitoring and adjusting the production process to prevent defects and deviations from specifications. By implementing process control, organizations can minimize the occurrence of nonconformance and the associated costs such as scrap, rework, and expediting. Therefore, process control is considered a cost of conformance to quality rather than a cost of nonconformance.

Processing customer complaints falls under the category of appraisal cost. Appraisal cost refers to the cost incurred in evaluating, inspecting, and testing products or services to ensure that they meet the required quality standards. In this case, processing customer complaints involves assessing and investigating the complaints to determine the validity and take appropriate actions. This process requires resources such as manpower, time, and systems to review and address the complaints, which incurs appraisal costs.