Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
12th Edition
ISBN: 9780134741062
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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Question
Chapter 3, Problem 18P
Summary Introduction
Interpretation: The quality of service and nonrandom behavior in the process is to be determined.
Concept Introduction: The monitoring of the nonconforming units in sample in statistical quality control is done by the representation of the p-chart.
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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 3 Solutions
Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
Ch. 3 - Should a very pricey handcrafted object of beauty...Ch. 3 - Prob. 2DQCh. 3 - Prob. 3DQCh. 3 - Prob. 1PCh. 3 - Prob. 2PCh. 3 - Prob. 3PCh. 3 - Prob. 4PCh. 3 - Prob. 5PCh. 3 - Prob. 6PCh. 3 - Prob. 7P
Ch. 3 - Prob. 8PCh. 3 - Prob. 9PCh. 3 - Prob. 10PCh. 3 - Prob. 11PCh. 3 - Prob. 12PCh. 3 - Prob. 13PCh. 3 - Prob. 14PCh. 3 - Prob. 15PCh. 3 - Prob. 16PCh. 3 - Prob. 17PCh. 3 - Prob. 18PCh. 3 - Prob. 19PCh. 3 - Prob. 20PCh. 3 - Prob. 21PCh. 3 - Prob. 26PCh. 3 - Prob. 27PCh. 3 - Prob. 28PCh. 3 - Prob. 29PCh. 3 - Prob. 31PCh. 3 - Prob. 1AMECh. 3 - Prob. 2AMECh. 3 - Prob. 3AMECh. 3 - Prob. 4AMECh. 3 - Prob. 5AMECh. 3 - Prob. 1VCCh. 3 - Prob. 2VC
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