Cost of Quality

Correct Answer: Increase training and skill development of the team

The most effective measure from the choices given to reduce the cost of quality in a project would be to 'Increase training and skill development of the team'. Increased training and skill development can help improve the team's efficiency and reduce mistakes, thus reducing the cost of rework. Hiring more team members or increasing overtime doesn't directly address the root cause of rework which is often due to lack of skill or knowledge. Increasing inspection and testing frequency might catch errors sooner but is more of a reactive than a proactive measure. Investing in the team's skill development can prevent errors from happening in the first place, thereby reducing the cost of quality.

Correct Answer: Process B

The project manager should choose Process B. Although the equipment cost for Process B is higher, it offers lower defect rates. The cost of quality is not just the cost of the process or equipment, it also includes all costs associated with not creating a quality product from the start. This involves costs for defects and failures, rework, scrap, and any costs associated with dissatisfaction or loss of customer trust due to inferior quality. Therefore, choosing a process with a lower defect rate (Process B) will likely result in a lower overall cost of quality. While Process A has a lower equipment cost, the higher defect rates could lead to higher costs in the long run. Choosing neither process wouldn't solve the problem, and choosing both processes wouldn't be practical or cost-efficient.

Correct Answer: Implementing team training programs to prevent defects.

Implementing team training programs to prevent defects is an example of a prevention activity. Prevention costs are incurred to avoid or minimize defects in products or services. By investing in training, the project manager is proactively enhancing the team's ability to produce quality work, thereby reducing the likelihood of defects occurring in the first place. This approach directly aligns with the goal of minimizing the overall Cost of Quality through preventive measures. Performing extensive testing procedures to identify defects is an appraisal activity, which involves detecting defects after they have occurred rather than preventing them. Resolving customer-reported issues after product release is an external failure cost, dealing with defects found by customers, which is costly and impacts customer satisfaction. Increasing the frequency of quality inspections during production is also an appraisal activity focused on detecting defects during the production process, not preventing them from happening.