Listening Gap

- The difference between customer expectation of services and company

understanding of those expectation.

52,000

- Compute for the COQ: Labor = P10000; Warranty Claims = P12000: Repairs and
Replacement = P25000; Raw Material Inspection Cost = P5000

Warranty

- Public promise of a quality product backed up by guarantee of customer satisfaction

True

- The Cost of Good Quality is the sum of Prevention Cost and Appraisal Cost

Service Performance Gap

- The inability of the employee to deliver based on agreed job output

Quality Assurance

- Streamlines production and helps to ensure that the final products meet the
company’s quality criteria.

Reliability

- Refers to the organizations ability to perform the service accurately and dependably.

Quality Control

- A process that ensures customers receive products free from defects and meet their
needs.

15,000

- Compute for the COGQ: Labor = P10000; Warranty Claims = P12000: Repairs and
Replacement = P25000; Raw Material Inspection Cost = P5000

True

- The Cost of Quality includes all costs associated with the quality of a product from
preventive costs intended to reduce or eliminate failures, cost of process controls to
maintain quality levels and the costs related to failures both internal and external.
True

- Teams cannot be expected to perform unless they are trained in problemsolving

techniques, group dynamics, and communication skills.

Total Quality Management

- art of managing the whole to achieve excellence

External Failure Cost

- Delivery handling damage

False

- Effective quality conrol should focus mainly on the job roles of engineers and quality
managers.

False

- Ability to change organizational culture.

False

- Supervisors are confident that they can do the work better and faster, are concerned
about job security, and are reluctant to give up power is a sign of progressive team.

Partnering

- A long-term commitment between two or more organizations for the purpose of

achieving specific business goals and objectives by maximizing the effectiveness of
each participant’s resources.

Appraisal Cost

- Quality Audit

Total Productive Maintenance Goals

- no breakdowns, no small stops or slow running, no defects, and no accidents.

False

- Incompatible rewards and compensation.

Empowerment

- An environment in which people have the ability, the confidence, and the
commitment to take the responsibility and ownership to improve the process and
 initiate the necessary steps to satisfy customer requirements within well-designed
boundaries in order to achieve organizational values and goals.

Prevention Costs

- These costs are associated with the design, implementation, and maintenance of the
quality management system.

External Failure Cost

- Warranty Claim

Ishikawa

- Best known for the development of the cause-and-effect diagram or fishbone

diagram.

Single Sourcing

- Planned decision by the organization to select one supplier for an item when several
sources are available. It results in large, long-term contracts and a partnering
relationship.

Conformance

- Meeting expectations or industry standards, workmanship

Features

- Secondary characteristics, added features of a product or service

P0
- Compute for the Prevention Cost: Labor = P10000; Warranty Claims = P12000:
Repairs and Replacement = P25000; Raw Material Inspection Cost = P5000

Customer Gap

- The difference between customers expectations and perception

False

- Cost of Poor Quality is equal to Prevention Cost, Internal Failure Costs and External
Failure Costs