Django Industries conducted an appraisal of all costs associated with production and found the following data. Scheduled maintenance $35,000 Machine downtime $160,000 Annual equipment calibration $39,000 Warranty exchange $125,000 Supplier quality audits $75,000 Equipment repair $56,000 Customer field repairs $97,000 Incoming material audits $80,000 Categorize these costs into the traditional four types of quality costs. What is the cumulative percentage of the two highest categories? a. 70.2% b. 65.6% c. 68.4% d. 71.8%
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Django Industries conducted an appraisal of all costs associated with production and found the following data.
|
|
$35,000 |
|
Machine downtime |
$160,000 |
|
Annual equipment calibration |
$39,000 |
|
Warranty exchange |
$125,000 |
|
Supplier quality audits |
$75,000 |
|
Equipment repair |
$56,000 |
|
Customer field repairs |
$97,000 |
|
Incoming material audits |
$80,000 |
Categorize these costs into the traditional four types of quality costs. What is the cumulative percentage of the two highest categories?
|
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|
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|
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- 1. The leader in the quality movement who recommended that organizations "eliminate numerical quotas for the work force and numerical goals for management.": A. Juran B. Ishikaw C. Crosby D. Feigenbaum E. Taguchi F. none of the above 2. The quality leader responsible for the term Total Quality Management (TQM): A. Juran B. Ishikawa C. Crosby D. Feigenbaum E. Taguchi F. none of the above 3. The quality leader most associated with the concept of robustness: A. Juran B. Ishikawa C. Crosby D. Feigenbaum TOTAL QUALITY MANAGEMENT-MBA EXAMINER:GATManaging Quality Improvement Teams 1) Perform a cost-benefit analysis using the following data: Direct cost: 10 laptops 2,000.00 each Server 2,000.00 Network Installation 15,000.00 Software 20,000.00 Indirect costs: Training 15,000.00 Annualized Benefits Increased Capacity 100,000.00 Analysis based on results: Parts a,b,c a) State if the number of years represents a good or back payback period? b) Is it a good ratio? c) How likely ate the benefits to be realized and how will a decision be made? Please show the full solution and analysis for this case. ThanksTombro Industries is in the process of automating one of its plants and developing a flexible manufacturing system. The company is finding it necessary to make many changes in operating procedures. Progress has been slow, particularly in trying to develop new performance measures for the factory. In an effort to evaluate performance and determine where improvements can be made, management has gathered the following data relating to activities over the last four months: Month 1 2 3 4 Quality control measures: Number of defects 201 179 140 98 Number of warranty claims 62 55 46 43 Number of customer complaints 118 112 95 74 Material control measures: Purchase order lead time 10 days 9 days 7 days 5 days Scrap as a percent of total cost 1% 1% 2% 3% Machine performance measures: Machine downtime as a percentage of availability 5% 6% 6% 10% Use as a percentage of…
- Tombro Industries is in the process of automating one of its plants and developing a flexible manufacturing system. The company is finding it necessary to make many changes in operating procedures. Progress has been slow, particularly in trying to develop new performance measures for the factory. In an effort to evaluate performance and determine where improvements can be made, management has gathered the following data relating to activities over the last four months: Month 1 2 3 4 Quality control measures: Number of defects 185 163 124 91 Number of warranty claims 46 39 30 27 Number of customer complaints 102 96 79 58 Material control measures: Purchase order lead time 8 days 7 days 5 days 4 days Scrap as a percent of total cost 1% 1% 2% 3% Machine performance measures: Machine downtime as a percentage of availability 3% 4% 4% 6% Use as a percentage of availability…What quality-related trade-offs might there be between having a single large, centralized produce processing facility and having many small, decentralized produce-processing facilities? 4. Give three examples of what would be considered unethical behavior involving management of quality, and state which ethical principleCost-of-Quality (COQ) Reporting; Spreadsheet Application Carrie Lee, the president of LeeEnterprises, was concerned about the results of her company’s new quality control efforts. “Maybethe emphasis we’ve placed on upgrading our quality control system will pay off in the long run, butit doesn’t seem to be helping us much right now. I thought improved quality would give a real boostto sales, but sales have remained flat at about $10,000,000 for the last 2 years.”Lee Enterprises has seen its market share decline in recent years because of increased foreigncompetition. An intensive effort to strengthen the quality control system was initiated a year ago (onJanuary 1, 2020) in the hope that better quality would strengthen the company’s competitive position and reduce warranty and servicing costs. The following costs (in thousands) relate to qualityand quality control over the last 2 years:[LO 17-5, 17-7]2019 2020Warranty repairs $420 $140Rework labor 140 200Supplies used in testing 4…
- Super metals manufacturing company very competitive metal products business. It employs over 2,000 people. Because of the similarity in the product design and the competitive prices with those of its competitors, it maintains it’s market share by emphasizing quality and service. About a year ago the company lost two of its customers who had been dissatisfied with excessive manufacturing defects. After studying the problem, the company decided that its basic engineering was sound but carelessness and lack of quality consciousness on the part of production workers, inspectors and manufacturing supervisors were the prime cause of the trouble. Accordingly, it introduced a quality control training program to solve the problem. The course was given after working hours from 7 to 9 pm each Thursday for 10 weeks. Employees were not paid any additional amounts to attend the class. Technically attendance was voluntary. However, management intimated that employees who attend sincerely would…Super metals manufacturing company very competitive metal products business. It employs over 2,000 people. Because of the similarity in the product design and the competitive prices with those of its competitors, it maintains it’s market share by emphasizing quality and service. About a year ago the company lost two of its customers who had been dissatisfied with excessive manufacturing defects. After studying the problem, the company decided that its basic engineering was sound but carelessness and lack of quality consciousness on the part of production workers, inspectors and manufacturing supervisors were the prime cause of the trouble. Accordingly, it introduced a quality control training program to solve the problem. The course was given after working hours from 7 to 9 pm each Thursday for 10 weeks. Employees were not paid any additional amounts to attend the class. Technically attendance was voluntary. However, management intimated that employees who attend sincerely would…Super metals manufacturing company very competitive metal products business. It employs over 2,000 people. Because of the similarity in the product design and the competitive prices with those of its competitors, it maintains it’s market share by emphasizing quality and service. About a year ago the company lost two of its customers who had been dissatisfied with excessive manufacturing defects. After studying the problem, the company decided that its basic engineering was sound but carelessness and lack of quality consciousness on the part of production workers, inspectors and manufacturing supervisors were the prime cause of the trouble. Accordingly, it introduced a quality control training program to solve the problem. The course was given after working hours from 7 to 9 pm each Thursday for 10 weeks. Employees were not paid any additional amounts to attend the class. Technically attendance was voluntary. However, management intimated that employees who attend sincerely would…
- Boardwalk Electronics manufactures 300,000 circuit boards per month. A random sample of 7,000 boards is inspected every week for six characteristics. During a recent week, six defects were found for one characteristic, and three defects each were found for the other five characteristics. If these inspections produced defect counts that were representative of the population, what are the dpmo's for the individual characteristics and what is the overall dpmo for the boards? Do not round intermediate calculations. Round your answers to the nearest whole number. The dpmo for one characteristic: The dpmo for each of the other 5 characteristics: The overall dpmo for the boards:Explain the measures that should be taken to institute successful quality improvement ?The following is a list of 14 control plans from this chapter: Control Plans A. Populate inputs with master data B. Online prompting C. Interactive feedback checks D. Programmed edit checks E. Manual agreement of batch totals F. Batch sequence check G. Cumulative sequence check H. Document design I. Key verification J. Written approvals K. Procedures for rejected inputs L. Compare input data with master data M. Turnaround documents N. Digital signatures Listed below are 10 system failures that have control implications. On your solution sheet, list the numbers 1 through 10. Next to each number, insert the capital letter from the list above for the best control plan to prevent the system failure from occurring. (If you can’t find a control that will prevent the failure, then choose a detective plan or, as a last resort, a corrective control plan.) A letter should be used only once, with four letters left over. System Failures 1. At Datatech Inc., data entry…