1. At Scorla Automobiles, a few machines in the assembly section were faulty and had to be shut down till they were repaired. This reduced the output of automobiles for the quarter. In this case, the costs incurred by Scorla Automobiles for repairing the machines are an example of _______.
a. prevention costs
b. appraisal costs
c. internal failure costs
d. external failure costs
e. none of the above
2. Which of the following is not a part of Philip Crosby's philosophy of quality?
a. Quality means conformance to requirements but not elegance.
b. The only performance standard is Six Sigma.
c. There is no such thing as a quality problem.
d. The only performance measurement is the cost of quality, which is the expense of non-conformance.
3. Alex, the manager at Rues and West Inc., wants to know the sequence of the production process in the company to determine if any process can be combined or eliminated. In this case, a ______ will suit Alex's requirement.
a. run chart
b. scattergram
c. checksheet
d. histogram
e. flow chart