The Operations View of Quality Is 'Quality Is Consistent Conformance

question 35

Multiple Choice

The Operations view of quality is 'quality is consistent conformance to customers' expectations'. By this it is meant that:

• A) The product will be seen as synonymous with innate excellence
• B) There are clear specifications consistently met that provide customers with what they would realistically believe they should receive
• C) Anything the customer wants and desires should be provided by the organisation
• D) The product must be right every time, irrespective of cost to the operation

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Definitions:

CVP Chart

A graphical representation used in Cost-Volume-Profit analysis to show the effects of different levels of volume and cost on operating profits.

Cost-Volume-Profit Data

Information that shows how changes in cost and volume affect a company's profit, used for making short-term economic decisions.

Contribution Margin

The amount by which sales revenue exceeds variable costs, indicating how much revenue contributes towards covering fixed costs and generating profit.

Sales Price

The amount of money for which a product is sold to the customer, excluding any discounts or rebates.