Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
12th Edition
ISBN: 9780134741062
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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Chapter 2, Problem 30P
Summary Introduction
To explain:
Develop a Pareto chart to analyze the type of management failure to be eliminated first.
Introduction:
Company P is a pioneer in the manufacture of plastic-grade films, which are used to wrap eatable materials. Goods of the company P facing the rejection due to the various reasons. A Pareto chart refers to the chart that has bar and line graphs. In the Pareto chart, individual value is represented by bars and the total value is represented by the line.
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Plastomer, Inc., specializes in the manufacture of high-grade plastic film used to wrap food products. Film is rejected and scrapped for a variety of reasons (e.g., opacity, high carbon content, incorrect thickness or gauge, scratches, etc.). During the past month, management collected data on the types of rejects and the amount of scrap generated by each type. The following table presents the results:
Type of Failure
Amount of Scrap (lbs.)
Air bubbles Bubble breaks Carbon content Unevenness Thickness or gaugeOpacity ScratchesTrim Wrinkles
50019,6501503,81027,6004503,84050010,650
Draw a Pareto chart to identify which type of failure management should attempt to eliminate first.
What are the key features and benefits of Failure Mode and Effects Analysis (FMEA) as a quality tool?
The annual quality costs of a manufacturer are listed below.
• Scrap: $40,000
• Downgrading products: $200,000
• Receiving inspection: $25,000
O Lines inspection: $15,000
. Quality training: $20,000
● Process engineering: $180,000
1. What are the total prevention costs" (P), appraisal costs 10 (A), and failure costs¹1
(F), respectively?
2. What is the ratio of appraisal and prevention costs to failure costs? (A+P)/F
3. What action plan would you recommend?
Chapter 2 Solutions
Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
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