SOLVE 2.2 ONLY 2.1. Backwoods American, Inc, produces expensive water-repellent,down-filled parkas. The company implemented a total quality-management program in 2014. Following are quality-related accounting data thathave been accumulated for the five-year period after the program's start.Year20152016201720182019Quality Costs (000s)Prevention$3.210.728.342.650.0Appraisal26.329.230.624.119.6Internal failure39.151.348.435.932.1External failure118.6110.5105.291.365.2Accounting Measures (000s)Sales$2,700.6 2,690.1 2,705.3 2,310.2 2,880.7Manufacturingcost420.9423.4424.7436.1435.5a. Compute the company's total failure costs as a percentage oftotal quality costs for each of the five years. Does there appearto be a trend to this result? If so, speculate on what might havecaused the trend.b. Compute prevention costs and appraisal costs, each as a per-centage of total costs, during each of the five years. Speculate onwhat the company's quality strategy appears to be.c. Compute quality-sales indices and quality-cost indices for each ofthe five years. Is it possible to assess the effectiveness of the compa-ny's quality-management program from these index values?d. List several examples of each quality-related cost-that is, pre-vention, appraisal, and internal and external failure-that mightresult from the production of parkas. 2.2. The Backwoods American company in Problem 2.1 producesapproximately 20,000 parkas annually. The quality management pro-a the company implemented was able to improve the average per-gramcentage of good parkas produced by 2% each year, beginning with 83%good-quality parkas in 2015. Only about 20% of poor-quality parkascan be reworked.a. Compute the product yield for each of the five years.b. Using a rework cost of $12 per parka, determine the manufac-turing cost per good parka for each of the five years. What do theseresults imply about the company's quality management program?

Product Yield :- They measure productivity because the ratio between the quantity of finished…

21. Backwoods American, Inc. produces expensve water repellent down-filled parkas. The company implemented a total quality manage- ment program in 2014. Following are quality-related accounting data that have been accumulated for the fiveyear period after the program's start. Year 2015 2016 2017 2018 2019 Quality Costs (000) Prevention $3.2 10.7 28.3 426 50.0 Appraisal 26.3 29.2 30.6 24.1 19.6 Internal failure 39.1 51.3 48.4 35.9 32.1 External failure 118.6 110.5 105.2 91.3 65.2 Accounting Measures (000s) Sales $2,700.6 2,690.1 2,705.3 2,310.2 2,880.7

21. Backwoods American, Inc. produces expensve water repellent down-filled parkas. The company implemented a total quality manage- ment program in 2014. Following are quality-related accounting data that have been accumulated for the fiveyear period after the program's start. Year 2015 2016 2017 2018 2019 Quality Costs (000) Prevention $3.2 10.7 28.3 426 50.0 Appraisal 26.3 29.2 30.6 24.1 19.6 Internal failure 39.1 51.3 48.4 35.9 32.1 External failure 118.6 110.5 105.2 91.3 65.2 Accounting Measures (000s) Sales $2,700.6 2,690.1 2,705.3 2,310.2 2,880.7

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

ChapterC: Cases

Section: Chapter Questions

Problem 5.3SD: Scenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling...

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Scenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling contract submitted by four suppliers. She was evaluating the quotes based on price, target quality levels, and delivery lead time promises. As she was working, her manager, Dave Cox, entered her office. He asked how everything was progressing and if she needed any help. She mentioned she was reviewing quotations from suppliers for a tooling contract. Dave asked who the interested suppliers were and if she had made a decision. Sharon indicated that one supplier, Apex, appeared to fit exactly the requirements Visionex had specified in the proposal. Dave told her to keep up the good work. Later that day Dave again visited Sharons office. He stated that he had done some research on the suppliers and felt that another supplier, Micron, appeared to have the best track record with Visionex. He pointed out that Sharons first choice was a new supplier to Visionex and there was some risk involved with that choice. Dave indicated that it would please him greatly if she selected Micron for the contract. The next day Sharon was having lunch with another buyer, Mark Smith. She mentioned the conversation with Dave and said she honestly felt that Apex was the best choice. When Mark asked Sharon who Dave preferred, she answered, Micron. At that point Mark rolled his eyes and shook his head. Sharon asked what the body language was all about. Mark replied, Look, I know youre new but you should know this. I heard last week that Daves brother-in-law is a new part owner of Micron. I was wondering how soon it would be before he started steering business to that company. He is not the straightest character. Sharon was shocked. After a few moments, she announced that her original choice was still the best selection. At that point Mark reminded Sharon that she was replacing a terminated buyer who did not go along with one of Daves previous preferred suppliers. Ethical decisions that affect a buyers ethical perspective usually involve the organizational environment, cultural environment, personal environment, and industry environment. Analyze this scenario using these four variables.
Scenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling contract submitted by four suppliers. She was evaluating the quotes based on price, target quality levels, and delivery lead time promises. As she was working, her manager, Dave Cox, entered her office. He asked how everything was progressing and if she needed any help. She mentioned she was reviewing quotations from suppliers for a tooling contract. Dave asked who the interested suppliers were and if she had made a decision. Sharon indicated that one supplier, Apex, appeared to fit exactly the requirements Visionex had specified in the proposal. Dave told her to keep up the good work. Later that day Dave again visited Sharons office. He stated that he had done some research on the suppliers and felt that another supplier, Micron, appeared to have the best track record with Visionex. He pointed out that Sharons first choice was a new supplier to Visionex and there was some risk involved with that choice. Dave indicated that it would please him greatly if she selected Micron for the contract. The next day Sharon was having lunch with another buyer, Mark Smith. She mentioned the conversation with Dave and said she honestly felt that Apex was the best choice. When Mark asked Sharon who Dave preferred, she answered, Micron. At that point Mark rolled his eyes and shook his head. Sharon asked what the body language was all about. Mark replied, Look, I know youre new but you should know this. I heard last week that Daves brother-in-law is a new part owner of Micron. I was wondering how soon it would be before he started steering business to that company. He is not the straightest character. Sharon was shocked. After a few moments, she announced that her original choice was still the best selection. At that point Mark reminded Sharon that she was replacing a terminated buyer who did not go along with one of Daves previous preferred suppliers. What should Sharon do in this situation?
Scenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling contract submitted by four suppliers. She was evaluating the quotes based on price, target quality levels, and delivery lead time promises. As she was working, her manager, Dave Cox, entered her office. He asked how everything was progressing and if she needed any help. She mentioned she was reviewing quotations from suppliers for a tooling contract. Dave asked who the interested suppliers were and if she had made a decision. Sharon indicated that one supplier, Apex, appeared to fit exactly the requirements Visionex had specified in the proposal. Dave told her to keep up the good work. Later that day Dave again visited Sharons office. He stated that he had done some research on the suppliers and felt that another supplier, Micron, appeared to have the best track record with Visionex. He pointed out that Sharons first choice was a new supplier to Visionex and there was some risk involved with that choice. Dave indicated that it would please him greatly if she selected Micron for the contract. The next day Sharon was having lunch with another buyer, Mark Smith. She mentioned the conversation with Dave and said she honestly felt that Apex was the best choice. When Mark asked Sharon who Dave preferred, she answered, Micron. At that point Mark rolled his eyes and shook his head. Sharon asked what the body language was all about. Mark replied, Look, I know youre new but you should know this. I heard last week that Daves brother-in-law is a new part owner of Micron. I was wondering how soon it would be before he started steering business to that company. He is not the straightest character. Sharon was shocked. After a few moments, she announced that her original choice was still the best selection. At that point Mark reminded Sharon that she was replacing a terminated buyer who did not go along with one of Daves previous preferred suppliers. What does the Institute of Supply Management code of ethics say about financial conflicts of interest?
A.2 X is a marketing services company, providing consultancy to a range of business clients. As part of its strategic planning process, X has made several changes that seem to have had an impact on its business environment. Evaluate each factor according to Porter’s Five Forces model analysis. X and its rivals have managed to persuade the Government to require all marketing services companies to complete a time-consuming and bureaucratic registration process, and to comply with an industry code of conduct. This represents a decrease in _____1_____. X has persuaded its entire staff to sign a new contract which prevents them for working for any rival company for a period of two years, should they resign. This represents a decrease in _____2_____. Use the options below to fill in the missing words in gaps 1 and 2. Competitive rivalry Threat of new entrants Power of customers Power of suppliers Threat of substitutes
2.1. Backwoods American, Inc., produces expensive water-repellent, down-filled parkas. The company implemented a total quality-management program in 2014. Following are quality-related accounting data that have been accumulated for the five-year period after the program’s start. Year 2015 2016 2017 2018 2019Quality Costs (000s)Prevention $3.2 10.7 28.3 42.6 50.0Appraisal 26.3 29.2 30.6 24.1 19.6Internal failure 39.1 51.3 48.4 35.9 32.1External failure 118.6 110.5 105.2 91.3 65.2Accounting Measures (000s)Sales $2,700.6 2,690.1 2,705.3 2,310.2 2,880.7Manufacturing cost 420.9 423.4 424.7 436.1 435.5 a. Compute the company’s total failure costs as a percentage of total quality costs for each of the five years. Does there appear to be a trend to this result? If so, speculate on what might have caused the…
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