Questions:
1. Explain why external failure costs can be more devastating to a firm than internal failure costs.
2. Many quality experts maintain that quality is free. Do you agree or disagree? Why or why not?
3. What is the purpose of interim quality standards?
4. Describe the three types of quality performance reporting. How can managers use each report to help evaluate their quality improvement programs?
5. Discuss the different kinds of incentives that can be used to motivate employees to become involved in quality improvement programs. Explain gainsharing.