Operations Managers Have Learned That Quality Control Is Not a Never-Ending

question 297

True/False

Operations managers have learned that quality control is not a never-ending process. Just before you add packaging to the finished product, official company inspectors do a random spot-check. All inspections have to occur at the end of a production run because only then can the inspector see the total finished product in order to determine if quality is jeopardized.

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Definitions:

Controllable Variance

The difference between actual costs and budgeted costs that a manager has direct control over in a given period.

Favorable Volume Variances

Differences between the expected volume of production or sales and the actual volume that lead to lower costs or higher profits than planned.

Production Capacity

The maximum output that an organization can produce in a given period under normal working conditions, considering available resources.

Work Stoppages

Occurrences when employees halt work, often due to labor disputes or strikes, affecting productivity and operations.