12. Costs of measuring, testing and analysing materials, parts, products and the productive
process is referred to as:
a) Prevention costs
b) Appraisal costs
c) Internal failure costs
d) External failure costs
e) Improvement costs
13. Which of the following is incorrect about the cost of quality?
a) Cost of quality is actually the cost of poor quality.
b) Increasing prevention cost increases appraisal, internal and external failure costs.
c) Training cost is an example of a prevention cost.
d) Warranty is an example of an external failure cost.
e) Both b) and d)
14. Internal failure costs include all of the following EXCEPT:
Scrap costs
Rework costs
Architect costs
Avoidable process losses
None of the above
15. According to Goldratt:
a) An hour lost at the bottleneck is an hour lost in the entire system.
b) A product coming out of a non-bottleneck is precious and should not be wasted.
c) Maximising the efficiency of all resources would generate money for the company.
d) Utilization, productivity and operating expenses are the three vital metrics of a process.
e) None of the above
16. A bottleneck is defined as:
a) The transformation of WIP into finished goods
b) The convergence of several separate stages in a process
The end of an assembly line
Any system resource that has insufficient capacity to satisfy the system requirements
None of the above
17. JIT systems rely on
a) Excess capacity
b) A level master schedule
c) Working with customers and suppliers to reduce uncertainty and complexity
d) Both b) and c)
e) All of the above