OPERATIONS AND SUPPLY CHAIN MANAGEMENT
9th Edition
ISBN: 9781119448037
Author: Russell
Publisher: WILEY
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Chapter 2, Problem 9Q
Summary Introduction
To determine: The different cost of poor quality and cost of quality assurance that might be associated with the quality problem of DVD company.
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A production operation is making 150 units of a product by engaging five workers for 300 hours. However, 40 percent of the units appear to have various quality problems, and the company decides to sell them as seconds at a price of £50 each when a normal unit is sold for £150.
To improve the situation, several initiatives are proposed, including a scheme where, for every improvement, 50 percent will be given to workers and the other 50 percent will be held by the company.
This results in a significant drop in defects as now only 10 units are faulty out of an output of 130 units.
1. Compare the productivity after Bonus with the initial productivity.
2. Determine the appropriate bonus per hour for the workers under the bonus scheme if the cost per piece is £70 both before and after the scheme.
Chapter 2 Solutions
OPERATIONS AND SUPPLY CHAIN MANAGEMENT
Ch. 2 - Prob. 2.1ASCCh. 2 - Prob. 3.1ASCCh. 2 - Prob. 4.1ASCCh. 2 - Prob. 5.1ASCCh. 2 - Prob. 6.1ASCCh. 2 - Prob. 7.1ASCCh. 2 - Prob. 8.1ASCCh. 2 - Prob. 9.1ASCCh. 2 - Prob. 10.1ASCCh. 2 - Prob. 11.1ASC
Ch. 2 - Prob. 13.1ASCCh. 2 - Prob. 1QCh. 2 - Prob. 2QCh. 2 - Prob. 3QCh. 2 - Prob. 4QCh. 2 - Prob. 5QCh. 2 - Prob. 6QCh. 2 - Prob. 8QCh. 2 - Prob. 9QCh. 2 - Prob. 10QCh. 2 - Prob. 12QCh. 2 - Prob. 13QCh. 2 - Prob. 14QCh. 2 - Prob. 15QCh. 2 - Prob. 17QCh. 2 - Prob. 21QCh. 2 - Prob. 22QCh. 2 - Prob. 23QCh. 2 - Prob. 24QCh. 2 - Prob. 25QCh. 2 - Prob. 26QCh. 2 - Prob. 27QCh. 2 - Prob. 28QCh. 2 - Prob. 29QCh. 2 - Prob. 30QCh. 2 - Most students live in a dormitory or apartment...Ch. 2 - Prob. 32QCh. 2 - Describe, in general, how the J.D. Power Circle...Ch. 2 - Select a product that you own (like a cell phone,...Ch. 2 - Prob. 35QCh. 2 - Prob. 36QCh. 2 - Prob. 37QCh. 2 - Prob. 38QCh. 2 - Prob. 39QCh. 2 - Prob. 40QCh. 2 - Prob. 41QCh. 2 - Prob. 42QCh. 2 - Prob. 43QCh. 2 - Prob. 44QCh. 2 - Prob. 45QCh. 2 - Prob. 47QCh. 2 - Prob. 48QCh. 2 - Prob. 49QCh. 2 - Prob. 50QCh. 2 - Prob. 51QCh. 2 - Prob. 55QCh. 2 - Prob. 56QCh. 2 - Prob. 57QCh. 2 - Prob. 60QCh. 2 - Prob. 61QCh. 2 - Prob. 67QCh. 2 - Prob. 68QCh. 2 - Prob. 1PCh. 2 - The Backwoods American company in Problem 2-1...Ch. 2 - Prob. 3PCh. 2 - In Problem 2-3, if the direct manufacturing cost...Ch. 2 - Prob. 5PCh. 2 - The Colonial House Furniture Company manufactures...Ch. 2 - Prob. 8PCh. 2 - Prob. 9PCh. 2 - Prob. 10PCh. 2 - Prob. 11PCh. 2 - Prob. 12PCh. 2 - Prob. 14PCh. 2 - Prob. 1.1CPCh. 2 - Prob. 2.1CPCh. 2 - Prob. 3.1CPCh. 2 - Prob. 3.3CPCh. 2 - Prob. 3.4CPCh. 2 - Prob. 3.5CPCh. 2 - Prob. 3.6CPCh. 2 - Prob. 3.7CPCh. 2 - Prob. 3.8CPCh. 2 - Prob. 4.1CP
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- A production operation is making 150 units of a product by engaging five workers for 300 hours. However, 40 percent of the units appear to have various quality problems, and the company decides to sell them as seconds at a price of £50 each when a normal unit is sold for £150. To improve the situation, several initiatives are proposed, including a scheme where, for every improvement, 50 percent will be given to workers and the other 50 percent will be held by the company. This results in a significant drop in defects as now only 10 units are faulty out of an output of 130 units. a) Compare the productivity after Bonus with the initial productivity b) Determine the appropriate bonus per hour for the workers under the bonus scheme if the cost per piece is £70 both before and after the scheme.arrow_forwardRecently, a corporation has been advertising an electronic muscle stimulation product known as “Slendertone” in women’s magazines, stating that the product can: “tone and firm any part of the body with no effort by the user”, “provide the user with the benefit of a workout without exercise”, “reduce the user’s body measurements by 4 cm or more” and “give the user, in 40 minutes per day, the equivalent of 300 general exercises”. Jeanette was so convinced that she bought a machine 3 months ago, but the product in fact does none of these things.Advise Jeanette under Consumer Law.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_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
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