EBK OM
6th Edition
ISBN: 9781305888210
Author: Collier
Publisher: YUZU
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Chapter 5, Problem 1PA
Summary Introduction
Interpretation:build a house of quality.
Concept introduction:House of quality: - Quality function deployment (QFD) is a tool to change the voice of the customer into engineering characteristics for a product. It helps in designing the blueprint of customer's wants for manufacturing and processing the product and service. It also consists the type and amount of materials, size, and shape of parts, tools required for production, procedures to follow, duty and responsibility of the employee at the work etc.
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1) Quality is defined as the totality of features and characteristics of a product or service that bears its ability to satisfy stated or implied needs of the customer. A Manufacturing firm is planning to implement quality management in the factory? Briefly describe the four major categories of costs that are associated with quality that this firm will have to consider?
The following table lists all costs of quality incurred by Sam’s Surf Shop last year.
Annual inspection costs
$155,000
Annual cost of scrap materials
286,000
Annual rework cost
34,679
Annual cost of quality training
456,000
Annual warranty cost
1,546,000
Annual testing cost
543,000
What was Sam’s appraisal cost for quality last year?
Defend the customer focus of quality management.
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Similar questions
- Compare the similarities and difference of 7 award categories of MBNQA with 8 principles of ISO .arrow_forwardHow can a philosophy of quality improvement help a firm in its overall efforts of improving the quality of its products and Servicesarrow_forwardA defense contractor manufactures rifles for the military. The military has exacting quality standards that the con-tractor must meet. The military is very pleased with the quality of the products provided by the contractor andrarely has to return products or has reason for complaint.However, the contractor is experiencing extremely high quality-related costs. Speculate on the reasons for the con-tractor’s high quality-related costs.arrow_forward
- The following table lists all costs of quality incurred by Sam's Surf Shop last year. Annual inspection costs Annual cost of scrap materials Annual rework cost $ 247,000 456,000 204,679 626,000 1,886,000 664,000 Annual cost of quality training Annual warranty cost Annual testing cost What was Sam's appraisal cost for quality last year? Appraisal costarrow_forwardSuppose you manufacture 10,000 wooden pencils per day. What would be an appropriate quality planning and control system for this product? Consider such factors as product attributes, measures of quality, tests, and so forth.arrow_forwardExplain the concept of quality management and its role in achieving customer satisfaction and continuous improvement.arrow_forward
- Suppose you manufacture 10,000 wooden pencils perday. What would be an appropriate quality planning and control system for this product? Consider such factors as product attributes, measures of quality, tests, and so forth.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_forwardSummarize and create conclusion to this statement: We all know that the first factor that the customer is looking for before buying the product is the quality of the goods. If the company decided to use low-cost materials in order to reduce the total cost of goods sold and for them to lift up the net income, then it will only result to a negative outcome. A company's overall strength can be maintained by focusing on quality. It has a wide range of effects on a business. When a company tries to save money by using low-cost raw materials, it may end up producing low-quality products with defects and errors. The cost of poor quality includes not only costs associated with product defects, but also costs associated with company procedures, practices, or operations that result in defects or errors. Poor quality can also harm your brand, impair consumer relationships, and add significant operational and financial costs.arrow_forward
- Checking a product that conforms to standards is: a user-based definition of quality. a manufacturing-based definition of quality. a product-based definition of quality. the definition of quality proposed by the American Society for Qualityarrow_forwardAbernathy, Inc., produces two different generators and is concerned about their quality. The company has identified the following quality activities and costs associated with the two products: Generator A Generator B Units produced 170,000 340,000 Warranty work (units) 1,700 850 Scrapped units (number) 3,400 850 Inspection (hours) 3,400 1,700 Quality training (hours) 85 85 Activities: Performing warranty work $816,000 Scrapping units 612,000 Inspecting 306,000 Quality training 85,000 Required: 1. Calculate the quality cost per unit for each product, and break this unit cost into quality cost categories. If required, round your answers to the nearest cent. Generator A Generator B Unit cost $fill in the blank 1 $fill in the blank 2arrow_forwardIdentify six attributes of quality information.arrow_forward
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