MGMT 339 CHAPTER 3 QUALITY AND PERFORMANCE EXAM AND ANSWERS 2025.

Prevention Cost - Answer Costs associated with preventing defects before they happen Appraisal Costs - Answer Costs incurred when the firm assess the performance level of its process Internal failure costs - Answer Costs resulting from defects that are discovered during the production of a service or product. external failure costs - Answer Costs that arise when a defect is discovered after the customer receives the service of the product. Warranty - Answer A written guarantee that the producer will replace or repair defective parts or perform the service to the customer's satisfaction ethical failure costs - Answer Societal and monetary costs associated with deceptively passing defective services or products to internal or external customers such that it jeopardizes the well being of stockholders, customers, employees, partners, and creditors. Total Quality Management (TQM) - Answer A philosophy that stresses three principles for achieving high levels of process performance and quality. 1. customer satisfaction 2. employee involvement 3. continuous improvement in performance. Customer Satisfaction - Answer 1. Conformance to Specification 2. Value 3. Fitness for use 4. Support 5. Psychological Impression Quality - Answer A term used by customers to describe their general satisfaction with a service or product.