Which of the following statements relating to total quality management and Six Sigma is true?
A)The only effect of internal failure is loss of material.
B)Poor quality generally does not increase the inventory level or lead times.
C)To produce 100 good units in a process with a 20 percent defective rate,the company must produce a total of 120 units.
D)High product quality in manufacturing can have significant market implications for a firm.

Question

Quizplus · Accepted Answer

High product quality in manufacturing can have significant market implications for a firm. Total quality management (TQM) and Six Sigma are approaches aimed at achieving and maintaining high levels of product quality. Internal failures, which result from defects in the production process, can lead to additional costs such as rework, scrap, and lost time. Poor quality can also lead to increased inventory levels and longer lead times as a result of the need to rework or replace defective items. To achieve 100 good units in a process with a 20 percent defective rate, the company must produce a total of 125 units (not 120), assuming that the defect rate is constant.

Which of the Following Statements Relating to Total Quality Management