1.

The quality council ensures that all the measures are integrated into a total system of
measures. T
2. Measures are used to promote improvement, not to identify poor performance and
penalize the low performers. T
3. Prevention is achieved by predicting future data and developing action plans for
incorporating into the basic system so that such failures/ defects won’t occur. F
4. Each month the quality council should meet to monitor current activities and plan
future ones. T
5. Cost of maintaining the inspection and test equipment is a part of appraisal cost. T
6. External failure cost are costs which are associated with the defects or
non-conforming situations that are found prior to shipment of the product to customer.
F
7. Number of suggestions for improvement, number of suggestions implemented,
number of training hours per employee are examples of measurements under
administration. F
8. There are two measures of capability index: one indicates the ability of the process
to meet specifications, and the other indicates the centering of the process on the
target. T
9. A significant portion of measurements need to be financial rather than operational. F
10. Prevention costs are the costs incurred while conducting inspection, tests, and
several other planned evaluations with the purpose of determining whether the
product/ service confirms to its stated requirements. F
11. Actual data collection can be performed on either estimation basis or on detailed and
more accurate basis. T
12. The measures should include all those aspects that are considered critical for
business. T
13. The quality manager may not relate the results of the quality cost with the
management to the overall business measures. F
14. Controlling the number of defects and invariably increasing the inspection will
eliminate the root cause and help reduce the cost of quality. F
15. Quality cost analysis is useful for setting priority for upper management but usually
does not suggest specific actions. T
16. The criteria for performance excellence should support a systems approach to
maintaining organization-wide goal alignment. T
17. Approach, deployment and results are the three evaluation dimensions used for
scoring applicants of Malcolm Baldrige National Quality Award. T
18. The approach of Balanced Score Card was developed by David Norton and Michael
Harry. F
19. Balance Score Card is a measurement system but not a management system. F
20. Quality cost programs should address all perceived, hidden and buried costs in all
the functional areas. T