EBK OM
EBK OM
6th Edition
ISBN: 9781305888210
Author: Collier
Publisher: YUZU
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Chapter 15, Problem 13PA
Summary Introduction

Interpretation: Pareto Diagram needs to be made based on the given information.

Concept Introduction: Cost of quality analysis helps to identify the problems in operations and managers can suggest improvement measures based on that. Cost of quality has four categories: Prevention costs, appraisal costs, internal failure costs and external failure costs.

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Using relevant examples advise a project manager of a road construction project on the key ingredients that they need to prioritise in the quality planning process.
D.B. Smith Company produces machine tools. The company conducted a cost-of-quality study and found the following: Cost Category   Amount Quality equipment design $ 20,000 Scrap   333,000 Inspection and retest   330,000 Customer returns   80,000 Supplier quality surveys   8,000 Repair   82,000 What quality cost categories should each of these costs be associated with? What does a Pareto analysis reveal? The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below.   Questions 1. Classifying the D.B. Smith Company cost elements into the appropriate cost-of-quality categories, calculate the total costs in each category and their percentages of the total and cumulative percentages. Round your answers for the total costs to the nearest dollar and round your answers for the percentages to two decimal places. Quality Cost Category   Amount   Percent of Total   Cumulative…
In your own words, describe cost of quality (COQ) and why an organization should be managing COQ.
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