The internal cost of failure includes ________.Question 4Answera.Rework and scrapb.Customer complaintsc.Warranty claimsd.Supplier evaluations
Question
The internal cost of failure includes ________.Question 4Answera.Rework and scrapb.Customer complaintsc.Warranty claimsd.Supplier evaluations
Solution
The internal cost of failure includes:
a. Rework and scrap: These are costs incurred when products or services do not meet the required standards or specifications and need to be reworked or discarded.
b. Customer complaints: Although this might seem like an external cost, it is actually an internal cost as well. This is because dealing with customer complaints requires time and resources, which could have been used elsewhere in the business.
c. Warranty claims: When a product fails within its warranty period, the company has to bear the cost of repairing or replacing it. This is an internal cost of failure.
d. Supplier evaluations: Evaluating and auditing suppliers to ensure they meet the company's quality standards is also an internal cost. If a supplier's product or service fails, the company may need to spend additional resources to find and qualify a new supplier.
Similar Questions
When making scrap or rework decisions, management should consider: (Check all that apply.)Multiple select question.revenue from selling defective units as scrap.costs already incurred in producing defective units.existing sales.incremental costs.
Prevention costs are incurred for:Question 1Answera.Training employeesb.Rework and scrapc.Warranty claimsd.Advertising and promotion
What kind of quality cost is incurred when an error is detected in a product prior to shipment?*preventionexternal failureinternal failureappraisal
Which of the following is an example of an environmental external failure cost?Question 4Answercleaning up of environmental damage within the plantcost of disposing of chemicals in land filldesign and installation of environmentally responsible equipmentdepreciation of monitoring and testing equipmentlegal fees related to chemical spill during transport to landfill
Select the best answer.Scrap and rework are part of which of the following categories of the Six Big Losses? Availability Performance Quality Overall
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.