The Management of a Facility That Manufactures Parts for Car

question 94

Multiple Choice

The management of a facility that manufactures parts for car brakes has a policy of testing only some of the items in each production run to locate errors, with the ultimate goal of minimizing errors by managing each stage of production. This process is an example of the ________ technique.

• A) zero defects
• B) minimal defects
• C) JIT
• D) quality focus
• E) quality control

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Definitions:

Substitution Effect

The economic understanding that as prices rise or income decreases, consumers will replace more expensive items with cheaper alternatives.

Price of Capital

The cost of using capital assets, which can include interest rates on loans used to purchase the assets or opportunity costs of investing capital elsewhere.

Demand for Labor

The total amount of labor that employers want to hire at varying wage rates in a given time period.

Related Resource

Resources that are connected or relevant to one another in such a way that the presence, absence, or alteration of one can affect the other.