Read the attached case study and answer the following questions: Support your answers with information and concepts from the textbook.

1. What costs of quality were highlighted in the case study? How can Delta Air Lines justify spending $100 million to re-engineer the baggage-handling process at just one airport?

2. Why can two people perceive the same product or service as having different quality levels? From a business perspective, why is it important , then to “know your customer”?

3. Several years ago a major automotive manufacturer was sued because the latch on a minivan’s rear door failed after the vehicle was hit from the side at 30 miles per hour. The plaintiff argued that the latch was of poor quality because it did not hold up under the stress. The manufacturer disagreed, noting that the latch had met all government requirements and had been made to specification. According to our definition of quality, can both sides be right? Explain and support.