HORNGRENS COST ACCOUNTING W/ACCESS
16th Edition
ISBN: 9781323687604
Author: Datar
Publisher: PEARSON
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Chapter 19, Problem 19.30P
Quality improvement, Pareto diagram, cause-and-effect diagram. Pauli’s Pizza has recently begun collecting data on the quality of its customer order processing and delivery. Pauli’s made 1,800 deliveries during the first quarter of 2017. The following quality data pertain to first-quarter deliveries:
| Type of Quality Failure | Quality Failure Incidents, First Quarter 2017 |
| Late delivery | 50 |
| Damaged or spoiled product delivered | 5 |
| Incorrect order delivered | 12 |
| Service complaints by customer of delivery personnel | 8 |
| Failure to deliver incidental items with order (drinks, side items, etc.) | 18 |
- 1. Draw a Pareto diagram of the quality failures experienced by Pauli’s Pizza.
Required
- 2. Give examples of prevention activities that could reduce the failures experienced by Pauli’s.
- 3. Draw a cause-and-effect diagram of possible causes for late deliveries.
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izzo Goal Inc. produces and sells hockey equipment, often custom made for online orders. The company has the following performance metrics on its balanced scorecard: days from ordered to delivered, number of shipping errors, customer retention rate,
nd market share. A measure map illustrates that the days from ordered to delivered and the number of shipping errors are both expected to directly affect the customer retention rate, which affects market share. Additional internal analysis finds that:
Every shipping error over three shipping errors per month reduces the customer retention rate by 1.5%.
On average, each day above three days from ordered to delivered yields a reduction in the customer retention rate of 1%.
Each day before three days from order to delivery yields an increase in the customer retention rate of 1%, on average.
Rizzo Goal Inc.'s current customer retention rate is 60%.
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Rizzo Goal Inc. produces and sells hockey equipment, often custom made for online orders. The company has the following performance metrics on its balanced
scorecard: days from ordered to delivered, number of shipping errors, customer retention rate, and market share. A measure map illustrates that the days from ordered
to delivered and the number of shipping errors are both expected to directly affect the customer retention rate, which affects market share. Additional internal analysis
finds that:
Every shipping error over 3 shipping errors per month reduces the customer retention rate by 1.5%.
On average, each day above 3 days from ordered to delivered yields a reduction in the customer retention rate of 1%.
Each day before 3 days from order to delivery yields an increase in the customer retention rate of 1%, on average.
Rizzo Goal Inc.'s current customer retention rate is 70%.
●
The company estimates that for every 1% increase or decrease in the customer retention rate, market share…
Rizzo Goal Inc. produces and sells hockey equipment, often custom made for online orders. The company has the following performance metrics on its balanced scorecard: days from ordered to delivered, number of shipping errors, customer retention rate, and market share. A measure map illustrates that the days from ordered to delivered and the number of shipping errors are both expected to directly affect the customer retention rate, which affects market share. Additional internal analysis finds that:
Every shipping error over 2 shipping errors per month reduces the customer retention rate by 1.5%.
On average, each day above 2 days from ordered to delivered yields a reduction in the customer retention rate of 1%.
Each day before 2 days from order to delivery yields an increase in the customer retention rate of 1%, on average.
Rizzo Goal Inc.’s current customer retention rate is 75%.
The company estimates that for every 1% increase or decrease in the customer retention rate, market share…
Chapter 19 Solutions
HORNGRENS COST ACCOUNTING W/ACCESS
Ch. 19 - Describe two benefits of improving quality.Ch. 19 - Prob. 19.2QCh. 19 - Name two items classified as prevention costs.Ch. 19 - Give two examples of appraisal costs.Ch. 19 - Distinguish between internal failure costs and...Ch. 19 - Describe three methods that companies use to...Ch. 19 - Companies should focus on financial measures of...Ch. 19 - Give two examples of nonfinancial measures of...Ch. 19 - Give two examples of nonfinancial measures of...Ch. 19 - When evaluating alternative ways to improve...
Ch. 19 - Distinguish between customer-response time and...Ch. 19 - Prob. 19.12QCh. 19 - Give two reasons why delays occur.Ch. 19 - Companies should always make and sell all products...Ch. 19 - Prob. 19.15QCh. 19 - Rector Corporation is examining its quality...Ch. 19 - Six Sigma is a continuous quality improvement...Ch. 19 - Costs of quality. (CMA, adapted) Osborn, Inc.,...Ch. 19 - Costs of quality analysis. Adirondack Company...Ch. 19 - Costs-of-quality analysis. Safe Travel produces...Ch. 19 - Costs of quality, quality improvement. iCover...Ch. 19 - Prob. 19.22ECh. 19 - Prob. 19.23ECh. 19 - Waiting time. Its a Dogs World (IDW) makes toys...Ch. 19 - Waiting time, service industry. The registration...Ch. 19 - Waiting time, cost considerations, customer...Ch. 19 - Nonfinancial measures of quality and time. For the...Ch. 19 - Nonfinancial measures of quality, manufacturing...Ch. 19 - Statistical quality control. Harvest Cereals...Ch. 19 - Quality improvement, Pareto diagram,...Ch. 19 - Quality improvement, relevant costs, and relevant...Ch. 19 - Quality improvement, relevant costs, and relevant...Ch. 19 - Waiting times, manufacturing cycle times. The...Ch. 19 - Prob. 19.34PCh. 19 - Manufacturing cycle times, relevant revenues, and...Ch. 19 - Compensation linked with profitability, waiting...Ch. 19 - Ethics and quality. Weston Corporation...Ch. 19 - Prob. 19.38P
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