Question

 1. Which of the following would be considered an appraisal cost of quality?

 A) Training workers to perform their jobs

 B) Redesigning products

 C) Salaries of inspectors

 D) Repairing an item under the warranty

 E) None of the above

 2. All new preseription medicines can be marketed in the U.S. only after getting

 approval from the FDA after:

 A) Successfully completing phase I clinical trials

 B) Successfully completing phase III clinical trials

 C) Advertised to the public

 D) Advertised to prescribers

 3. For a patent to benefit from legal protection it must satisfy all requirements

 except:

 A) New

 B) Not obvious

 C) Useful

 D) Provide competitive advantage

 4. In healthcare, quality of care can be estimated using:

 A) Customer satisfaction

 B) Valuc

 C) Conformance to design

 D) Outcomes

 E) None of the above

 5. Which of the following is NOT an example of command and control regulation?

 A) pollution reduction quotas

 B) prison sentence for polluters

 C) pollution performance based on technology

 D) emission trading

 E) control through permits

Answer 1

1.

Answer

Salaries of inspectors

Explanation

Costs of quality

• Prevention costs-incurred to prevent quality problems eg Quality planning, training workers
• Appraisal costs- incurred to detect defects before inventory is shipped to customers.
• external failure cost- due to product failures after they have been sold to customers.EG repair cost, Product recalls
• Internal failure costs- incurred to remedy defects before product is delivered to the customer eg, redesign, rework

2.

Answer

b. Successfully completing phase 3 trails

Explanation

Phase I clinical trials: Tests the safety of the drug with a small group

Phase II clinical trials: Tests whether the treatment actually works on population

Phase III clinical trials: tests safety and effectiveness of the new drug against the current drugs

After phase 3 the company can apply for FDA approval

Phase 4 trial: after the drug is marketed, the effects and safety are tested over a long time

The drug can be advertised only after FDA approval

3.

Answer

d.. Provide competitive advantage

Explanation

For passing a patent test, the idea must be

• novel
• not obvious
• useful

Patency can be a source of competitive advantage for companies but it is not requirement to pass the test

4.

Answer

A. customer satisfaction,

C. conformance to design,

D.. outcomes

Explanation

Quality of care can be estimated using

• customer satisfaction measures,
• conformance to deign(conformance to ISO standards)
• outcomes(number of re-admissions)

5.

Answer

d.. Emission trading

Explanation

Command and control is a system - regulating pollution through standards, rules, technology and limits. It is a rigid approach. There is no incentive, just orders

Trading and pollution fees are- incentive-based approaches . There is incentive to reduce pollution