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1. An example of an Internal Failure Cost is: A. Warranty Cost B. Retesting C. Returns...

1. An example of an Internal Failure Cost is:

A.

Warranty Cost
B.

Retesting
C.

Returns
D.

Customer Complaints

2. An example of an External Failure Cost is:

A.

Rework
B.

Retest
C.

Customer Complaint
D.

Material Review Board

3. The Cost of Poor Quality includes the benefits of improving process capabilities

True or False

business   Operations-Management   
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Answer #1

B. Retesting

The cost which is found in the products or services before the delivery of the product In another word when the product is failed to meet the expectation of the customer before delivery and because of that the cost arises. So retesting is the correct option which happens before delivery of the product.

C Customer Complaint

External Failure Cost is just opposite of the internal failure cost described above. It means te product has been delivered and then cost arises. SO option customer complaint is the correct option.

True

Cost of Poor Quality means f the product has met the desired specification and the expectation then the cost is saved. So the cost which happens due to such issue is called cost to poor quality. So if the product does not meet the standard then there is chance to improve the process capabilities

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