Six Sigma Black Belt Certified Practice Exam

Which of the following best describes internal failure costs?

1. The economic costs associated with a catastrophic failure of an internal subsystem.

2. The unavoidable quality system costs associated with the production of any product or service.

3. The opposite of external failure costs.

4. The costs resulting from a nonconformance detected before a product or service is provided.

The correct answer is: The costs resulting from a nonconformance detected before a product or service is provided.

Internal failure costs refer specifically to expenses incurred when a nonconformance or defect is identified before the product or service reaches the customer. This encompasses costs related to rework, scrap, and further testing required to ensure that the product meets the quality standards before delivery. Identifying and addressing issues at this stage is crucial because it allows for corrections to be made without impacting customer satisfaction or incurring the potentially higher costs associated with failures that occur after delivery, also known as external failure costs. By effectively managing these internal failure costs, organizations can improve their processes, reduce expenditure, and enhance their overall product quality. The other options do not accurately capture the essence of internal failure costs. Catastrophic failures refer to significant breakdowns that may not just pertain to quality issues caught early in the process. The second choice refers more to unavoidable costs associated with quality systems in general rather than those specifically tied to defects detected internally. The third option, while suggesting a relationship between internal and external failure costs, doesn't precisely define internal failure costs themselves. Hence, the choice that best encapsulates this concept is the identification of costs arising from nonconformance detected before products or services are delivered.