1. Each of the following is an example of external failure costs EXCEPT:
a. warranty claims.
b. loss of customer loyalty and goodwill.
c. rework as a result of final inspection.
d. litigation/reputational costs
2. Which of the following is NOT a method used in modern approaches to quality management?
a. When something goes wrong, the whole system is responsible for situations that lead to errors.
b. Find and fix the root cause so the problem does not recur in the production process.
c. Locate defects through inspection and remove defective products before they reach the customer.
d. Eliminate the need for incoming inspection by sharing process information between suppliers and customers.