Lean Six Sigma Yellow Belt (LSSYB) — Question 10
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 situation is classified as an Internal Failure Cost because it pertains to defects found before the product is delivered to the customer. Prevention Costs relate to measures taken to avoid defects, External Failure Costs involve issues found after delivery, and Appraisal Costs are associated with inspection and testing to ensure quality.