OPERATIONS MANAGEMENT W/ CNCT+
12th Edition
ISBN: 9781259574931
Author: Stevenson
Publisher: MCG CUSTOM
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 10, Problem 1.1CQ
Summary Introduction
Introduction
Company T is engaged in the manufacturing of toys and board games.
The firm is known for its innovations and quality products. The company sales had declined during the past six months. Person ME, who is the
The vice president of sales has been concerned with the customer complaints. Person KM, the assistant of the vice president, suggested making a trade-off for the defective products by getting back the defective items from the customer and providing a new one, which would please the dissatisfied customer. The defective items can be repaired and could be sold at adiscounted price.
Person SB, the production assistant, suggested to increase the level of inspection. With 100% level of inspection the number of defectives could be reduced.
To determine: The recommendations to the company as a consultant.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Pride Wheels is a 20-year-old company engaged in the manufacture and sale of patient Stretchers and patient wheel chairs. The company has built a reputation on quality and innovation. Although the company is one of the leaders in its field the sales have leveled off in recent years for the most recent six-month period sales actually declined compared with the same period last year the production manager Mr. Goodyear attributed the lack of sales growth to the economy, he was prompted to undertake a number of economic measures that included cuts in production costs a layoff in the design and product development departments. Although profits are still flat, he believes that within the next six months, the results of his decision will be reflected in increased profits.The general manager of sales, Mr. John is really concerned with customer complaints about the company's realistic line of working models. The moving parts on certain models have either got dis-engaged/failed to operate or…
Pride Wheels is a 20-year-old company engaged in the manufacture and sale of patient Stretchers and patient wheel chairs. The company has built a reputation on quality and innovation. Although the company is one of the leaders in its field the sales have leveled off in recent years for the most recent six-month period sales actually declined compared with the same period last year the production manager Mr. Goodyear attributed the lack of sales growth to the economy, he was prompted to undertake a number of economic measures that included cuts in production costs a layoff in the design and product development departments. Although profits are still flat, he believes that within the next six months, the results of his decision will be reflected in increased profits.The general manager of sales, Mr. John is really concerned with customer complaints about the company's realistic line of working models. The moving parts on certain models have either got dis-engaged/failed to operate or…
An automobile manufacturer plans to spend one billion dollars to improve the quality of a new model. The manufacturer expects the quality improvement program to eliminate the need for recall and reduce the costs for warranty repairs. The manufacturer’s experience has been, on average, 1.5 recalls for each new model at a cost of $300 per vehicle per recall.
The average cost per recall, if one is needed, is expected to increase by 10% for the new model. Costs for other warranty repairs are expected to decrease from $200 to $80 per unit. Sales of the new model were expected to be 500,000 units without the quality-improvement program. The firm believes that the proposed, well-advertised quality program expected to cost an additional $50 million will increase total sales to 650,000 units. The gross profit per unit on the new model sold is $5,000.
Required:
Would you recommend the proposed quality-improvement program? Please show all your computations to support your answer.
Chapter 10 Solutions
OPERATIONS MANAGEMENT W/ CNCT+
Ch. 10.2 - A potato chip is a delicate thing Fragile A pound...Ch. 10.2 - A potato chip is a delicate thing Fragile A pound...Ch. 10.5 - It's estimated that more than 7 000 hospital...Ch. 10.5 - It's estimated that more than 7 000 hospital...Ch. 10 - Prob. 1DRQCh. 10 - Prob. 2DRQCh. 10 - Prob. 3DRQCh. 10 - Prob. 4DRQCh. 10 - Prob. 5DRQCh. 10 - Prob. 6DRQ
Ch. 10 - Prob. 7DRQCh. 10 - Prob. 8DRQCh. 10 - Prob. 9DRQCh. 10 - Prob. 10DRQCh. 10 - Prob. 11DRQCh. 10 - Prob. 12DRQCh. 10 - Prob. 13DRQCh. 10 - Prob. 14DRQCh. 10 - Prob. 15DRQCh. 10 - Prob. 16DRQCh. 10 - Prob. 1TSCh. 10 - Prob. 2TSCh. 10 - Prob. 3TSCh. 10 - Prob. 1CTECh. 10 - Prob. 2CTECh. 10 - Prob. 3CTECh. 10 - Prob. 4CTECh. 10 - Prob. 1PCh. 10 - Prob. 2PCh. 10 - Prob. 3PCh. 10 - Prob. 4PCh. 10 - Prob. 5PCh. 10 - Prob. 6PCh. 10 - Prob. 7PCh. 10 - Prob. 8PCh. 10 - Prob. 9PCh. 10 - Prob. 10PCh. 10 - Prob. 11PCh. 10 - Prob. 12PCh. 10 - Prob. 13PCh. 10 - Prob. 14PCh. 10 - Prob. 15PCh. 10 - Prob. 16PCh. 10 - Prob. 17PCh. 10 - A production process consists of a three-step...Ch. 10 - Prob. 19PCh. 10 - Prob. 20PCh. 10 - Prob. 21PCh. 10 - Prob. 22PCh. 10 - Prob. 23PCh. 10 - Prob. 24PCh. 10 - Prob. 25PCh. 10 - Prob. 26PCh. 10 - Prob. 27PCh. 10 - Prob. 28PCh. 10 - Prob. 29PCh. 10 - Prob. 1.1CQCh. 10 - Prob. 2.1CQCh. 10 - Prob. 2.2CQCh. 10 - Prob. 2.3CQCh. 10 - Prob. 2.4CQ
Knowledge Booster
Learn more about
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
- An automobile manufacturer plans to spend one billion dollars to improve the quality of a new model. The manufacturer expects the quality improvement program to eliminate the need for recall and reduce the costs for warranty repairs. The manufacturer’s experience has been, on average, 1.5 recalls for each new model at a cost of $300 per vehicle per recall. The average cost per recall, if one is needed, is expected to increase by 10% for the new model. Costs for other warranty repairs are expected to decrease from $200 to $80 per unit. Sales of the new model were expected to be 500,000 units without the quality-improvement program. The firm believes that the proposed, well-advertised quality program expected to cost an additional $50 million will increase total sales to 650,000 units. The gross profit per unit on the new model sold is $5,000.arrow_forwardBecause of the poor quality of its cars, Hyundai watched its U.S. sales drop from 264,000 cars to 90,000 cars in just two years. Hyundai cars ranked 26th out of 35 car brands in terms of initial car quality as measured by the influential J.D. Power Initial Car Quality survey. With $6.6 million in debt, a $1 billion investment for a new manufacturing plant in Alabama, and the company’s first-ever loss, Hyundai’s new chairman, Chung Mong Koo, declared that improving quality was the only way to fix the company.The challenge for Chung was to get his managers to put quality, and not costs, first. So he sent a visible, meaningful message that poor quality would no longer be tolerated. During one plant visit, Chung demanded to see under the hood of a car on the production line. He was furious when he saw loose wires, tangled hoses, bolts painted four different colors - tremendous deviation from what the engine compartment was supposed to look like. On the spot, he instructed the plant…arrow_forwardBecause of the poor quality of its cars, Hyundai watched its U.S. sales drop from 264,000 cars to 90,000 cars in just two years. Hyundai cars ranked 26th out of 35 car brands in terms of initial car quality as measured by the influential J.D. Power Initial Car Quality survey. With $6.6 million in debt, a $1 billion investment for a new manufacturing plant in Alabama, and the company’s first-ever loss, Hyundai’s new chairman, Chung Mong Koo, declared that improving quality was the only way to fix the company.The challenge for Chung was to get his managers to put quality, and not costs, first. So he sent a visible, meaningful message that poor quality would no longer be tolerated. During one plant visit, Chung demanded to see under the hood of a car on the production line. He was furious when he saw loose wires, tangled hoses, bolts painted four different colors - tremendous deviation from what the engine compartment was supposed to look like. On the spot, he instructed the plant…arrow_forward
- Because of the poor quality of its cars, Hyundai watched its U.S. sales drop from 264,000 cars to 90,000 cars in just two years. Hyundai cars ranked 26th out of 35 car brands in terms of initial car quality as measured by the influential J.D. Power Initial Car Quality survey. With $6.6 million in debt, a $1 billion investment for a new manufacturing plant in Alabama, and the company’s first-ever loss, Hyundai’s new chairman, Chung Mong Koo, declared that improving quality was the only way to fix the company.The challenge for Chung was to get his managers to put quality, and not costs, first. So he sent a visible, meaningful message that poor quality would no longer be tolerated. During one plant visit, Chung demanded to see under the hood of a car on the production line. He was furious when he saw loose wires, tangled hoses, bolts painted four different colors - tremendous deviation from what the engine compartment was supposed to look like. On the spot, he instructed the plant…arrow_forwardBecause of the poor quality of its cars, Hyundai watched its U.S. sales drop from 264,000 cars to 90,000 cars in just two years. Hyundai cars ranked 26th out of 35 car brands in terms of initial car quality as measured by the influential J.D. Power Initial Car Quality survey. With $6.6 million in debt, a $1 billion investment for a new manufacturing plant in Alabama, and the company’s first-ever loss, Hyundai’s new chairman, Chung Mong Koo, declared that improving quality was the only way to fix the company.The challenge for Chung was to get his managers to put quality, and not costs, first. So he sent a visible, meaningful message that poor quality would no longer be tolerated. During one plant visit, Chung demanded to see under the hood of a car on the production line. He was furious when he saw loose wires, tangled hoses, bolts painted four different colors - tremendous deviation from what the engine compartment was supposed to look like. On the spot, he instructed the plant…arrow_forwardAnalysis of the output of a process has suggested that the variability is nonrandom on several occasions recently. However, each time an investigation has not revealed any assignable causes. What are some of the possible explanations for not finding any causes? What should the manager do? And Use the dimensions of quality to describe typical characteristics of these products and services such as a. A television set. b. Eating a meal in a restaurantarrow_forward
- If you were the Vice-President of Quality Assurance, how would you evaluate the appropriate measure for process capability and then assess the capability of the in-control process to meet specifications? Why is this important?arrow_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_forwardUse the dimensions of quality to describe typical characteristics of these products and services:a. A television setarrow_forward
- In quality control, what does competency mean competence mean?arrow_forwardQuality control in a factory pulls 40 parts with paint, packaging, or electronic defects from anassembly line. Of these, 28 had a paint defect, 17 had a packaging defect, 13 had an electronicdefect, 6 had both paint and packaging defects, 7 had both packaging and electronics defects, and 10had both paint and electronic defects. Did any part have all three types of defect? If so, how many?arrow_forwardHouston North Hospital is trying to improve its image by providing a positive experience for its patients and their relatives. Part of the "image" program involves providing tasty, inviting patient meals that are also healthful. A questionnaire accompanies each meal served, asking the patient, among other things, whether he or she is satisfied or unsatisfied with the meal. A 50-patient sample of the survey results over the past 7 days yielded the following data: Day No. of Unsatisfied Patients Sample Size 1 26 50 2 20 50 3 10 50 4 15 50 5 12 50 6 26 50 7 15 50 The control limits to include 99.73% of the random variation in meal satisfaction are: UCLp= (enter your response as a number between 0 and 1, rounded to three decimal places). LCLp = (enter your response as a number between 0 and 1, rounded to three decimal places).…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,
Operations ManagementOperations ManagementISBN:9781259667473Author:William J StevensonPublisher:McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi...Operations ManagementISBN:9781259666100Author:F. Robert Jacobs, Richard B ChasePublisher:McGraw-Hill Education
Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage Learning
Production and Operations Analysis, Seventh Editi...Operations ManagementISBN:9781478623069Author:Steven Nahmias, Tava Lennon OlsenPublisher:Waveland Press, Inc.
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Operations Management
Operations Management
ISBN:9781259667473
Author:William J Stevenson
Publisher:McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi...
Operations Management
ISBN:9781259666100
Author:F. Robert Jacobs, Richard B Chase
Publisher:McGraw-Hill Education
Purchasing and Supply Chain Management
Operations Management
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning
Production and Operations Analysis, Seventh Editi...
Operations Management
ISBN:9781478623069
Author:Steven Nahmias, Tava Lennon Olsen
Publisher:Waveland Press, Inc.