Question

GE's recall of 3.1 million dishwashers cost the company more in repairs than the value of the actual dishwashers. This is an example of which quality principle?

Answer 1

Answer:

The question is missing the below options:

A) PDCA

B) internal failure costs

C) appraisal costs

D) cost of poor quality is underestimated

E) prevention costs

The correct option is D, cost of poor quality is underestimated.

Explanation:

Internal failure costs are costs incurred to remedy a failure quality when discovered prior to goods being made available to consumers

Appraisal costs refer to costs incurred in ensuring output meet the required standards such as inspection costs

The question is not about the category of quality costs the $3.1 million falls under, but a quality principle which underscored the point that cost poor quality can be much more than what one envisages.