Asq Certified Quality Auditor CQA · Free Practice Question Easy
Question 11
Which of the following is an example of an External Failure Cost within the Cost of Quality (COQ) framework?
- A Employee training on quality improvement techniques
- B Loss of customer goodwill due to product defects
- C Scrap materials generated during the manufacturing process
- D Inspection of finished goods before shipping
Reveal correct answer
Correct answer: B
Explanation
External failure costs refer to mistakes found after a product is delivered to a customer. An example of an external failure cost is the loss of customer goodwill due to product defects, which could occur if the customer experiences a negative experience with a defective product or service. Employee training on quality improvement techniques, scrap materials generated during manufacturing, and inspection of finished goods before shipping are examples of prevention, internal failure, and appraisal costs.Discussion
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