Page 446 - The Handbook for Quality Management a Complete Guide to Operational Excellence

432 A p p e n d i x D S i m u l a t e d C e r t i f i c a t i o n E x a m Q u e s t i o n s 433

93. Quality cost data:
a. must be maintained when the end product is for the government.
b. must be mailed to the contracting officer on request.
c. is often an effective means of identifying quality problem areas.
d. all of the above

94. Operating quality costs can be related to different volume bases. An
example of volume base that could be used would be:
a. direct labor cost.
b. standard manufacturing cost.
c. processing cost.
d. sales.
e. all of the above

95. When operating a quality cost system, excessive costs can be identified
when:
a. appraisal costs exceed failure costs.
b. total quality costs exceed 10 percent of sales.
c. appraisal and failure costs are equal.
d. total quality costs exceed 4 percent of manufacturing costs.
e. There is no fixed rule; management experience must be used.

96. Quality cost systems provide for defect prevention. Which of the
following elements is primary to defect prevention?
a. Corrective action
b. Data collection
c. Cost analysis
d. Training

97. Quality cost analysis has shown that appraisal costs are apparently
too high in relation to sales. Which of the following actions probably
would not be considered in pursuing this problem?
a. Work sampling in inspection and test areas
b. Adding inspectors to reduce scrap costs
c. Pareto analysis of quality costs
d. Considering elimination of some test operations
e. Comparing appraisal costs with bases other than sales—for
example direct labor, value added, etc.
98. Analyze the cost data below:
• $10,000—equipment design
• $150,000—scrap
• $180,000—re-inspection and retest
• $45,000—loss or disposition of surplus stock
• $4000—vendor quality surveys
• $40,000—repair

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