Problem:

Organize the following items into the categories of Quality Cost (Prevention, Inspection, Internal Failures and External Failures). Please put items that are not quality cost in a non-quality cost category:

· Calibration of measuring and test equipment

· Customer returns

· Customer needs survey

· Design Review

· Downgrading

· Incoming and source inspection

· In-process and final inspection

· New product release

· Process capability evaluations

· Process reengineering

· Processing customer complaints

· Product design

· Product recalls

· Requirements review

· Product, process or service audits

· Quality education and training

· Quality improvement projects

· Quality improvement team meetings

· Quality planning

· Re-inspection

· Re-testing

· Rework

· Routine maintenance

· Scrap

· Software update

· Software upgrade

· System enhancements

· Supplier capability surveys

· Test of purchased material

· Warranty claims

Required:

Question 1) What are some important principles to keep in mind to insure that your benchmarking is efficient, effective, and ethical?

Question 2) How are the product liability issues in services different from those in manufacturing? Provide thorough explanation of the given question.