78) Throughput contribution is equal to revenues minus direct material and direct labour costs. 78)
79) Manufacturing lead time is the sum of waiting time and manufacturing time for an order. 79)
80) The balanced scorecard includes both financial and non-financial measures of customer
81) Cost of quality financial measures will usually deteriorate when non-financial measures of quality
are emphasised and improved.
82) Costs of Quality (COQ) are classified into four categories: prevention costs, appraisal costs,
inspection costs, and warranty costs.
83) Conformance quality is the performance of a product or service relative to its design and product
84) A Pareto diagram is usually in a bar-chart format, and it shows how often a particular problem has
85) The number of defects shipped to customers as a percentage of total units shipped is a type of
non-financial quality measure.
86) In the banking industry, depositing a customer's cheque into the wrong bank account is an example
of quality of design failure.
87) When using a control chart, the observations outside the upper and lower product specification
limits are ordinarily regarded as non-random and worth investigating.