BUSINESS IN ACTION BUNDLE
9th Edition
ISBN: 9780137423910
Author: BOVEE
Publisher: PEARSON
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Chapter 10.5, Problem 2CT
Summary Introduction
To discuss: The similarities between reinforcement theory and goal-setting theory.
The goal-setting theory states that employees can be motivated to ensure high performance by setting a carefully designed goal. It is one of the most vital contemporary theories of motivation.
Reinforcement theory states that employees can be motivated by managers by sharpening their actions through behavior modification. Using these theory managers strategically encourage those actions considered to be beneficial to the company.
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It is January 1 of year 0, and Merck is trying to determine whether to continue development of a newdrug. The following information is relevant. You can assume that all cash flows occur at the ends of therespective years.■ Clinical trials (the trials where the drug is tested on humans) are equally likely to be completed in year1 or 2.■ There is an 80% chance that clinical trials will succeed. If these trials fail, the FDA will not allow thedrug to be marketed.■ The cost of clinical trials is assumed to follow a triangular distribution with best case $100 million,most likely case $150 million, and worst case $250 million. Clinical trial costs are incurred at the end ofthe year clinical trials are completed.■ If clinical trials succeed, the drug will be sold for five years, earning a profit of $6 per unit sold.■ If clinical trials succeed, a plant will be built during the same year trials are completed. The cost of theplant is assumed to follow a triangular distribution with best case $1…
1) Under “Costs of Quality”, costs associated with quality can be classified into four categories: appraisal, prevention, internal failures, and external failures. The costs of quality for Corley Motors Logistics is given in the table.
Cost Elements
Amount
Checking outbound boxes for errors
$31,000
Quality planning
$10,625
Downtime due to conveyor/computer problems
$342,125
Incoming product inspection
$21,000
Customer complaint rework
$33,000
Correcting erroneous orders before shipping
$36,550
Quality training of associates
$25,925
Correction of typographical errors--pick tickets
$11,475
a) Classify the quality cost elements given in the table into the different quality cost categories (prevention, appraisal, internal failure, external failure).
b) Total the quality costs in each of the different quality cost categories (prevention, appraisal, internal failure, external failure).
c) Using a) and b), suggest which areas…
Note: In chapter 9, section 9.4 of the Stevenson text, the costs of quality are covered; chapter 9 Stevenson lecture power point slide 7 touches upon this topic; see lecture video, 3.55 mins to 4.54 mins.
2) The production process at Hansa Ceylon Coffee fills boxes with dark arabica coffee. The data for the fill weight (in ounces) of eight samples are presented below. A sample size of six was used. The firm’s operations analyst wants to construct X-bar and R-charts to monitor the filling process.
Sample
Sample Mean
Sample Range
1
15.80
0.42
2
16.10
0.38
3
16.02
0.08
4
15.95
0.15
5
16.12
0.42
6
16.18
0.23
7
15.87
0.36
8
16.20
0.40
a) Calculate the upper and lower control limits for the X-bar chart.
b) Calculate the upper and lower control limits for the R chart.
c) Is the process under control? Why or why not?
Note: In chapter 10, section 10.3 of the Stevenson text, control charts for variables are…
Chapter 10 Solutions
BUSINESS IN ACTION BUNDLE
Ch. 10.1 - Prob. 1CTCh. 10.1 - Prob. 2CTCh. 10.1 - Prob. 1IYBCh. 10.1 - Prob. 2IYBCh. 10.2 - Prob. 1CTCh. 10.2 - Prob. 2CTCh. 10.2 - Prob. 1IYBCh. 10.2 - Prob. 2IYBCh. 10.3 - Prob. 1CTCh. 10.3 - Prob. 2CT
Ch. 10.3 - Prob. 1IYBCh. 10.3 - Prob. 2IYBCh. 10.4 - Prob. 1CTCh. 10.4 - Prob. 2CTCh. 10.4 - Prob. 1IYBCh. 10.4 - Prob. 2IYBCh. 10.5 - Prob. 1CTCh. 10.5 - Prob. 2CTCh. 10.5 - Prob. 1IYBCh. 10.5 - Prob. 2IYBCh. 10.6 - Prob. 1CTCh. 10.6 - Prob. 2CTCh. 10.6 - Prob. 1IYBCh. 10.6 - Prob. 2IYBCh. 10.7 - Prob. 1CTCh. 10.7 - Prob. 2CTCh. 10.7 - Prob. 1IYBCh. 10.7 - Prob. 2IYBCh. 10 - Prob. 1CTQCh. 10 - Prob. 2CTQCh. 10 - Prob. 3CTQCh. 10 - Prob. 4QRCh. 10 - Prob. 5QRCh. 10 - Prob. 6QRCh. 10 - Prob. 7QRCh. 10 - Prob. 8QRCh. 10 - Prob. 9QRCh. 10 - Prob. 10QACh. 10 - Prob. 11QACh. 10 - Prob. 12QACh. 10 - Prob. 13QACh. 10 - Prob. 14QACh. 10 - Prob. 15QACh. 10 - Prob. 16QACh. 10 - Prob. 17QACh. 10 - Prob. 18QACh. 10 - Prob. 19QAPCh. 10 - Prob. 20QAPCh. 10 - Prob. 21QAPCh. 10 - Prob. 22QAPCh. 10 - Prob. 23QAPCh. 10 - Prob. 1DCOCh. 10 - Prob. 1IBTCh. 10 - Prob. 1REDCh. 10 - Prob. 1SCSCh. 10 - Prob. 1DRS
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