15. LO.1, LO.2, & LO.5 (True/False) Mark cach of the following statements as tru

Question

15. LO.1, LO.2, & LO.5 (True/False) Mark cach of the following statements as true or false and explain why the false statements are incorrect. a. Appraisal cost is used to monitor and correct mistakes. b. Total quality management focuses on production processes rather than on customer satisfaction c. Results benchmarking relies only on comparisons to firms within the same industry. d. Pareto analysis is used to help managers identify areas in which to focus quality- improvement efforts eSPC control charts are used to plot the costs of quality over time. f. Higher quality yields lower profits but higher productivity.

Explanation / Answer

a. False. Appraisal costs are associated with measuring and monitoring activities related to quality of product. like checking the quality of raw materials, process setup, and products against agreed specifications.

b. False. Core definition of Total quality management describe it as a management approach to long–term success through customer satisfaction. In a TQM effort, all members of an organization participate in improving processes, products, services, and the culture in which they work to ensure customer satisfaction as the main goal.

c. False. Results benchmarking also involves comparing the similar processes that exist in other company of different industry with our company. It typically doesn't mean that we results of benchmarking are for same industry companies only.

d. True. Pareto Analysis uses the Pareto Principle – also known as the "80/20 Rule" – which is the idea that 20 percent of causes generate 80 percent of results. This analysis helps the managers to focus on the areas which produce maximum results and improve them.

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