The basic logic in ABC analysis is that generally, a great amount of items are very important and a few of items are relatively unimportant.

T F

2. A product's reliability is a dimension of quality.

T F

3. The costs associated with detecting and preventing defects are costs of quality incurred only after shipping products to customers.

T F

4. There is an inverse relationship between productivity and product quality; that is, as product quality goes up, productivity goes down.

T F

5. The objective of TQM programs is to build an organization that produces products and services that are considered firstinclass by its customers.

T F

6. For control purposes, a critical item may be classified A or B, regardless of its dollar value.

T F

7. JIT production system never should strive for a 100% machine utilization.

T F

8. At the optimal point of EOQ, the total holding cost is greater than the total ordering cost.

T F

9. Increasing released orders is one important step to improve shop flow time performance.

T F