1. The investment a company makes in training employees to perform their duties and redesigning products and processes to improve them would be categorized as prevention costs.
2. Appraisal costs are associated with preventing defects before they happen.
3. External failure costs arise when a defect is discovered after the customer has received the product or service.
4. An example of an internal failure cost would be warranty cost.
5. One of the principles that total quality management (TQM) stresses is customer satisfaction.
6. The notion of internal customers applies to all parts of a firm.
7. One of the principles that total quality management (TQM) stresses is employee involvement.
8. One of the principles that total quality management (TQM) stresses is process reengineering.
9. Statistical process control (SPC) is the application of statistical techniques to determine whether a quantity of material should be accepted or rejected.
10. Common causes of variation are the purely random, unidentifiable sources of variation that are unavoidable with the current process.
11. Assignable causes of variation include any variable-causing factors that can be identified and eliminated.
12. On a control chart, a type I error occurs when the employee concludes that the process is in control when it is actually out of statistical control.
13. Convicting an innocent defendant is an example of a type II error.
14. Wider limits on a control chart result in lower probability of a type I error.
15. One common point for inspection is at the raw material input stage.
16. A process is monitored with a control chart. The process is correctly judged to be in-control once the results from the most recent sample are plotted. Therefore, all of the output produced at that time is good.
17. One chart commonly used for quality measures based on product or service attributes is the x chart.
18. Process centering is shown by an x chart.
19. A process may be in control according to the x chart and out of control according to the R-chart. In this case, the process is said to be in partial control.