What Is Poor Quality and Material Yield?
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What Is Poor Quality and Material Yield?
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Solved in 2 steps
- How does quality at the beginning of the chain influence the quality at the end?Residents of Mill River have fond memories of ice skating at a local park. An artist has captured the experience in a drawing and is hoping to reproduce it and sell framed copies to current and former residents. He thinks that if market is not good, he could sell 400 copies of the version at Rs.125 each. If the market is good, he would only sell 300 at Rs. 90 each. He could make a deluxe version of the same drawing instead. He feels that if the market were not good he could sell 500 copies of the deluxe version at Rs.100. If the market is good, he would only sell 400 copies at Rs.70 each. In either case, production costs would be approximately Rs.35,000. He could also choose to do nothing at this time. If he believes there are a 40% probability of a good market, and 60% probability of not good market, what should he do? Why?Explain the impact of the tension between cost minimization and quality maximization at Top Glove Company.
- Scenario 3: A problem with paper You are a franchisee for Fatto’s Burger Palace in a small college town (“where friends meet to eat”). The specialties of the house are the “Giant Burger Supreme” and the “Hound Doggie,” both of which contain 26% or less fat. Business is good, especially when the college dietician decides to put soy stew on the menu in the dining halls. Recently, agitation by environmental extremists has forced the restaurant to abandon the convenient clam shell boxes of polystyrene in favor of paper boxes. The latter are a little more expensive, but take up less space. They are somewhat difficult and time-consuming to fold. Customers are now complaining about the oil stains on the inside of the burger box. Water tends to seep through and make the package limp in some cases. This has required putting more napkins in each order. In addition, the blazing red Fatto’s symbol on the top of the boxes now has fuzzy edges, whereas it was sharp and crisp on the clam shell boxes.…What are the Manufacturability and value engineering activities?What aspects of the product or service design that make it attactive?