Operations Management
14th Edition
ISBN: 9781260238891
Author: Stevenson
Publisher: MCG
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Chapter 10, Problem 15DRQ
Summary Introduction
To determine: The importance of promoting and maintaining ethical behavior by managers while dealing with quality issues and does it vary depending on the product or service.
Introduction: Quality is a measure of excellence or a state of being free from deficiencies, defects and important variations. It is obtained by consistent and strict commitment to certain standards to attain uniformity of a product to satisfy consumers’ requirement.
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Would it be critical for businesses to track and report on quality costs ?
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?
Perkins Company has been experiencing lost sales and high returns recently, so they decided to undertake a comprehensive quality program. Here are factors being considered: Finished products need to be inspected before shippingEstimated cost: $45,000 Production equipment needs upgradingEstimated cost: $400,000 Perkins knows that if it undertakes this program, it will be able to reduce warranty repair costs by $25,000. They also know they will be able to avoid lost profits by retaining customers, but they cannot quantify that benefit with any degree of precision. Should Perkins go ahead with the quality program? A) Yes, they should, regardless of any other considerations. B) No, they should not. C) They should, only if the benefit of avoiding lost profits is estimated to be over $420,000. D) They should, only if the benefit of avoiding lost profits is estimated to be over $445,000.
Chapter 10 Solutions
Operations Management
Ch. 10.2 - Prob. 1.1RQCh. 10.2 - Prob. 1.2RQCh. 10.4 - Prob. 1.1RQCh. 10.4 - Prob. 1.2RQCh. 10 - Prob. 1DRQCh. 10 - Prob. 2DRQCh. 10 - Prob. 3DRQCh. 10 - Prob. 4DRQCh. 10 - Prob. 5DRQCh. 10 - Prob. 6DRQ
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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
- Is quality management different from quality control?arrow_forwardIn coping with quality problems, how critical is it for managers to uphold and encourage ethical behaviour? Is your answer conditional on the good or service in question?arrow_forwardDo you believe that CEOs and business managers should be skeptical about the quality movement, or should they embrace the quality movement and try to involve their firms in as many quality initiatives as possible? Explain your answer.arrow_forward
- Along with the given three quality management models and tools below, including how each model and tool contributes to effectively preventing an operation from experiencing quality management problems:Quality management models: Deming, Crosby, and Total quality management (TQM)?arrow_forwardWhat are the primary challenges that will be encountered during Quality Assurance and Quality Control activities? How should these restrictions be reduced?arrow_forwardThink of one product that you want to manufacture. List 5 criteria that your product should be able to meet so you can say that it is of high quality. Explain each criteria.arrow_forward
- How important is it for managers to maintain and promote ethical behavior in dealing with qualityissues? Does your answer depend on the product or service involved?arrow_forwardTerraCycle Ltd management is keen on providing excellent quality products and services. They have asked you to examine how Service Quality and Total Quality Management could improve the quality of their Recycling Programmes. Produce a briefing paper examining the quality of the recycling/ reuse programmes offered by TerraCycle and evaluating the appropriateness of the two quality approaches for the company. Within your briefing paper, you should: Explain and differentiate between the two approaches (Service Quality and Total Quality Management). Provide an example from the recycling/ reuse programmes of how one of these two approaches is applied. Explain the appropriateness of the approach taken, what it takes to do, what it should deliver and suggest how it could be improved following the selected approach.arrow_forwardYou are an experienced quality manager in a growing organization, you have selected several talented engineers for promotion to their first management positions and are responsible for guiding their growth in their new responsibilities. What are some of the skills your new quality managers should acquire, and what advice will you give them about the new challenges they will face?arrow_forward
- What is the necessity for quality assurance?arrow_forwardAurora Electronics has received a large number of customer complaints and returns for a DVD player that it manufactures. When a DVD is inserted into the loading mechanism, it can become stuck and difficult to remove. Consumers will attempt to pull out the DVD drawer with their fingers or pry it open with an object such as a knife, pencil, or screwdriver, frequently damaging the DVD or injuring themselves. What are the various costs of poor quality and quality assurance that may be associated with this quality issue?arrow_forwardWhat are the underlying causes of the quality problems in a company? What action is being taken by management to overcome these problems, and is this sufficient to create lasting improvements?arrow_forward
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