EBK OM
6th Edition
ISBN: 9781305888210
Author: Collier
Publisher: YUZU
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Chapter 15, Problem 4PA
Summary Introduction
Interpretation: Two examples of economic consequences of poor quality needs to be discussed.
Concept Introduction:Investing proper quality control is a solution to reduce poor quality. The cost of working with an inefficient system is exponentially higher than the cost of working with a proper
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What role does quality management planning play in ensuring the supply chain is error-proof?
. Quality costs fall under two categories. Name each category and think of an example to illustrate the category.
Explain why quality is important and the consequences of poor quality
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- How is quality defined from a customer perspective?arrow_forwardReship Solutions, Inc. has a distribution center in Cincinnati, where it receives and breaks down bulk orders from suppliers' factories and ships out products to retail customers. The different quality cost elements are shown in the table below. Classify these into the appropriate quality cost categories. Cost Element Checking outbound boxes for errors Quality planning Downtime due to conveyor/computer problems Amount Quality Cost Category $614,150 -Select- $10,555 -Select- $353,290 -Select- Packaging waste $75,000 -Select- Incoming product inspection $60,000 -Select- Customer complaint rework $33,000 -Select- Correcting erroneous orders before shipping $39,900 -Select- Quality training of associates $28,800 -Select- Quality improvement projects $16,205 -Select- Other waste $36,105 -Select- $12,245 -Select- Correction of typographical errors-pick tickets Compute the percentage of total quality cost for each category. Round your answers to two decimal places. Quality Cost Category…arrow_forwardUsing 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.arrow_forward
- Compare the 7 award categories of MBNQA with 8 principles of ISO .arrow_forwardExplain the importance of reducing variability in the total quality method by giving examples.arrow_forwardEvaluate critically and discuss the following quality views: transcendental view product based view user based view manufacturing based view value based view of McDonald's. Provide necessary relevant examples for each discussionsarrow_forward
- Using relevant diagrams, explain the process of producing a good quality systemarrow_forwardThe Omega Shoe Company manufactures a number of dif-ferent styles of athletic shoes. Its biggest seller is the X-Pacer running shoe. In 2008 Omega implemented a quality-management program. The company’s shoe pro-duction for the past three years and manufacturing costs are as follows. Only one-quarter of the defective shoes can be reworked, at acost of $2 apiece. Compute the manufacturing cost per goodproduct for each of the three years and indicate the annual percentage increase or decrease resulting from the quality-management program. Year 2008 2009 2010Units produced/input 32,000 34,600 35,500Manufacturing cost $278,000 291,000 305,000Percent good quality 78% 83% 90%arrow_forwardWhat attributes of quality are required at each link in the chain? How does quality at the beginning of the chain influence the quality at the end?arrow_forward
- The following table lists all costs of quality incurred by Kate's shop last year. Annual inspection costs 247000 Annual cost of scrap materials 456000 Annual rework cost 204679 Annual cost of quality training 626000 Annual warranty cost 1886000 Annual testing cost 664000 What was Kate's appraisal cost for quality last year?arrow_forwardDescribe the four dimensions of quality. Which is most important?arrow_forwardUtilising a product of your choice, briefly explain how you can use any 5 (FIVE) quality dimensions to differentiate a product Use examples to differentiate between Quality Assurance and Quality Controlarrow_forward
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