Part-1. Concept Check Questions (Each Question = 2 Mark) Please answer following questions very briefly in a few words. 1. What is the term used to ensure whether the product is made or a service is performed as intended? 2. At final inspection stage of production process, you have identified some defects in one shipment before delivering to the customers. Obviously the defected products will go through the repair process before can be sold. The cost that the company will incur in repairing these products is referred to as: 3. The time duration before the product needs maintenance or repair is also looked at as part of quality perspective. What is the term used to describe this aspect of quality? 4. What type of costs cannot be reduced as a result of better quality in a manufacturing process? 5. There are different types of costs of quality. What cost is most difficult to measure? Page-2. Concept Check Questions Please answer following questions very briefly in a few words. 6. There are different definitions of capacity. What definition better describes a situation when a business is operating at a capacity level for a short time and is better than increasing resources permanently? 7. During high growth period what capacity strategy for a growing business would be most appropriate given an intense market competition? 8. A clothing factory wants to increase capacity by adding a new machine. The fixed costs for Singer machine are $56,000, and its variable cost is $10 per unit. The revenue is $17 per unit. How many units of clothing needs to be made and sold What is the break-even point for the Singer machine? 9. A Canadian importer is contemplating an import of a high quality leather purse in large quantity from a first time exporter from India. How does the Canadian importer make sure the imported goods will be of required quality specifications? 10. There is always a risk in importing manufactured goods from developing countries. Many a times a lot is rejected because the quality of imported goods does not match the specifications. In such problems between importer and exporter, who is taking a risk of loss