Production and Operations Analysis, Seventh Edition
7th Edition
ISBN: 9781478623069
Author: Steven Nahmias, Tava Lennon Olsen
Publisher: Waveland Press, Inc.
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Chapter 12, Problem 50AP
Summary Introduction
Interpretation:
Cost of poor quality and difficulties due to measuring of these costs.
Concept Introduction:
Cost of poor quality refers to the cost that is incurred as a result of producing defective material. The cost of poor quality will be reflected in both direct cost and indirect cost.
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Figure 12–1 presents a conceptual picture of the trade-off between process cost and the costs of losses due to poor quality. What are the costs of poor quality and what difficulties might arise when attempting to measure these costs?
Why are prevention and appraisal costs considered costs of controlling quality, whereas internal and external failure costs are costs of failing to control quality?
1. Differentiate the two schools of thought relating to the cost of quality: traditional (ECM) and TQM perspectives based on the role of variations and process inspection approach. 2. How are outcome variations related to prevention and appraisal costs? 3. Which parameters are required to compute process capability?
Chapter 12 Solutions
Production and Operations Analysis, Seventh Edition
Ch. 12.1 - Prob. 2PCh. 12.1 - Prob. 3PCh. 12.1 - Prob. 4PCh. 12.1 - Prob. 5PCh. 12.1 - Prob. 6PCh. 12.2 - Prob. 7PCh. 12.2 - Prob. 8PCh. 12.2 - Prob. 9PCh. 12.2 - Prob. 10PCh. 12.2 - Prob. 11P
Ch. 12.2 - Prob. 12PCh. 12.2 - Prob. 13PCh. 12.3 - Prob. 14PCh. 12.3 - Prob. 15PCh. 12.3 - Prob. 16PCh. 12.3 - Prob. 17PCh. 12.4 - Prob. 18PCh. 12.4 - Prob. 19PCh. 12.4 - Prob. 20PCh. 12.4 - Prob. 21PCh. 12.5 - Prob. 22PCh. 12.6 - Prob. 23PCh. 12.6 - Prob. 24PCh. 12.6 - Prob. 25PCh. 12.6 - Prob. 26PCh. 12.6 - Prob. 27PCh. 12.6 - Prob. 28PCh. 12.9 - Prob. 29PCh. 12.9 - Prob. 30PCh. 12.9 - Prob. 31PCh. 12.9 - Prob. 32PCh. 12.9 - Prob. 33PCh. 12.10 - Prob. 34PCh. 12.10 - Prob. 35PCh. 12.10 - Prob. 37PCh. 12.10 - Prob. 38PCh. 12.10 - Prob. 39PCh. 12.10 - Prob. 40PCh. 12.11 - Prob. 41PCh. 12.11 - Prob. 42PCh. 12.11 - Prob. 43PCh. 12.11 - Prob. 44PCh. 12.12 - Prob. 46PCh. 12.12 - Prob. 47PCh. 12.12 - Prob. 48PCh. 12 - Prob. 49APCh. 12 - Prob. 50APCh. 12 - Prob. 51APCh. 12 - Prob. 52APCh. 12 - Prob. 53APCh. 12 - Prob. 54APCh. 12 - Prob. 55APCh. 12 - Prob. 57APCh. 12 - Prob. 58APCh. 12 - Prob. 59APCh. 12 - Prob. 60APCh. 12 - Prob. 61APCh. 12 - Prob. 62APCh. 12 - Prob. 63APCh. 12 - Prob. 64APCh. 12 - Prob. 65APCh. 12 - Prob. 66APCh. 12 - Prob. 67APCh. 12 - Prob. 68APCh. 12 - Prob. 69APCh. 12 - Prob. 70AP
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- What are the costs of quality are generally classified into four types?arrow_forwardWhich of the following is not a prevention activity in controlling quality? Multiple Choice Field testing. Certifying suppliers. Quality training. Process improvement.arrow_forwardKlipto plc has produced the market-leading Gramble for many years, and has never previously had any problems with quality. Kipto plo's Marketing Director has now complained to the Production Director at many Grambles produced in the last month have been returned as faulty by customers. The Production Director is reviewing the last month's performance measures for the Gramble in preparation for a meeting with the Marketing DirectorIt would be most useful for the Production Director to compare these performance measures for the Gramble withA. measures relating to competing products OB. budgets for the Gramble C, the results of other parts of Klipto pic D. measures for the Gramble in previous monthsarrow_forward
- You are a Quality Manager for a very well-known food ingredient company that produces monosodium glutamate (MSG), and you are responsible for setting specification limits. The net weight (in grams) of bags of monosodium glutamate (MSG) is monitored by taking samples of eight bags on an hourly basis during production. The label on every bag reports a contents of 2 kg flour. The process mean is μ = 2018 g, and when the process is properly adjusted, it varies with σ = 16 g. QUESTION: Your organisation strives to ensure that >99.99% of bags of monosodium glutamate produced conforms to specification. What performance process index value is required to achieve this process yield?arrow_forwardYou are a Quality Manager for a very well-known food ingredient company that produces monosodium glutamate (MSG), and you are responsible for setting specification limits. The net weight (in grams) of bags of monosodium glutamate (MSG) is monitored by taking samples of eight bags on an hourly basis during production. The label on every bag reports a contents of 2 kg flour. The process mean is μ = 2018 g, and when the process is properly adjusted, it varies with σ = 16 g. QUESTION: Using what you know about QMP, would you advise your manager that the process is satisfactory when it is properly adjusted, or would you seek their approval to improve the process? Be sure to provide a full justification for your answer.arrow_forwardYou are a Quality Manager for a very well-known food ingredient company that produces monosodium glutamate (MSG), and you are responsible for setting specification limits. The net weight (in grams) of bags of monosodium glutamate (MSG) is monitored by taking samples of eight bags on an hourly basis during production. The label on every bag reports a contents of 2 kg flour. The process mean is μ = 2018 g, and when the process is properly adjusted, it varies with σ = 16 g. QUESTION: Using all the available information, set the upper and lower specification limits.arrow_forward
- Write, in your own words, what is the objective of the Statement of Quality Control Standard number 8 (SQCS No. 8)arrow_forwardDiscuss the costs of compliance versus nonconformance and how both contribute to the total cost of quality.arrow_forwardA quality characteristic of interest for a tea-bag-filling process isthe weight of the tea in the individual bags. If the bags are underfilled,two problems arise. First, customers may not be able to brew the teato be as strong as they wish. Second, the company may be in violationof the truth-in-labeling laws. For this product, the label weight on thepackage indicates that, on average, there are 5.5 grams of tea in a bag. Ifthe mean amount of tea in a bag exceeds the label weight, the companyis giving away product. Getting an exact amount of tea in a bag is problematic because of variation in the temperature and humidity insidethe factory, differences in the density of the tea, and the extremely fastfilling operation of the machine (approximately 170 bags per minute).The file Teabags contains these weights, in grams, of a sample of50 tea bags produced in one hour by a single machine:5.65 5.44 5.42 5.40 5.53 5.34 5.54 5.45 5.52 5.415.57 5.40 5.53 5.54 5.55 5.62 5.56 5.46 5.44 5.515.47…arrow_forward
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