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Exam style questions and answers

D: these are the costs arising within the organisation when the predetermined
specifications are not met. For T Co they may include the net cost of scrap and
downtime of machinery due to quality problems. They are unlikely to increase
since failure rates are steady (although high).

E: these are the costs of inadequate quality that are incurred once the product
has been sold. They include dealing with customer complaints, warranty claims,
costs of repairing or replacing returned faulty goods. It appears in T Co that
defects are picked up on before products are sold so this cost is unlikely to rise.

7 A, B, C

A: The code of ethics will show how the organisation expects to treat farmers
and can be published so will achieve this purpose.

B: The code could be used as reference for managers so will achieve this
purpose.

C: The code will improve transparency of V and if indeed the new policies exist
and are adhered to, the reputation of the company will improve.

D: The code will not ensure anything since it is not legally binding.

E: See D above. The claims in the code are not independently verified so it
cannot be said to prove anything.

A: A phased changeover involves bringing in the new system to one part of the
business at a time, say, by department or division which is less risky since IT
staff will be able to deal with departmental or divisional problems in isolation.

B: This statement refers to parallel running, where the old and the new system
are both run together for a period of time until the new system is established
and it is safe to turn the old system off.

C: This refers to pilot changeover which is where one part of the business
changes over first. When the system operates correctly there, the rest of the
business will changeover.

D: This refers to direct changeover.

E: This is correct with respect to phased changeover.

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