IASSC Certified Lean Six Sigma Yellow Belt (ICYB) — Question 3

Al bought a digital camera from his local electronics store. When he first used it he found the zoom lens function was inoperative because a gear was installed improperly. For the manufacturer of the camera this would be categorized as what type of cost?

Answer options

• A. Internal Failure Cost
• B. Prevention Cost
• C. External Failure Cost
• D. Appraisal Cost

Correct answer: A

Explanation

The correct answer is 'Internal Failure Cost' because the issue arises from a defect that occurred during the manufacturing process. Prevention Costs are incurred to avoid defects, External Failure Costs relate to issues experienced by the customer after purchase, and Appraisal Costs are associated with inspecting products to ensure they meet quality standards.