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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Chapter 2, Problem 30P
Summary Introduction
To explain:
Develop a Pareto chart to analyze the type of management failure to be eliminated first.
Introduction:
Company P is a pioneer in the manufacture of plastic-grade films, which are used to wrap eatable materials. Goods of the company P facing the rejection due to the various reasons. A Pareto chart refers to the chart that has bar and line graphs. In the Pareto chart, individual value is represented by bars and the total value is represented by the line.
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Plastomer, Inc., specializes in the manufacture of high-grade plastic film used to wrap food products. Film is rejected and scrapped for a variety of reasons (e.g., opacity, high carbon content, incorrect thickness or gauge, scratches, etc.). During the past month, management collected data on the types of rejects and the amount of scrap generated by each type. The following table presents the results:
Type of Failure
Amount of Scrap (lbs.)
Air bubbles Bubble breaks Carbon content Unevenness Thickness or gaugeOpacity ScratchesTrim Wrinkles
50019,6501503,81027,6004503,84050010,650
Draw a Pareto chart to identify which type of failure management should attempt to eliminate first.
The annual quality costs of a manufacturer are listed below.
• Scrap: $40,000
• Downgrading products: $200,000
• Receiving inspection: $25,000
O Lines inspection: $15,000
. Quality training: $20,000
● Process engineering: $180,000
1. What are the total prevention costs" (P), appraisal costs 10 (A), and failure costs¹1
(F), respectively?
2. What is the ratio of appraisal and prevention costs to failure costs? (A+P)/F
3. What action plan would you recommend?
The following table lists all costs of quality incurred by Sam's Surf Shop last year.
Annual inspection costs
Annual cost of scrap materials
Annual rework cost
$ 247,000
456,000
204,679
626,000
1,886,000
664,000
Annual cost of quality training
Annual warranty cost
Annual testing cost
What was Sam's appraisal cost for quality last year?
Appraisal cost
Chapter 2 Solutions
Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
Ch. 2 - Prob. 3DQCh. 2 - Prob. 4DQCh. 2 - Consider the range of processes in the financial...Ch. 2 - Prob. 6DQCh. 2 - Continuous improvement recognizes that many small...Ch. 2 - Prob. 8DQCh. 2 - Paul O’Neill, former U.S. Treasury Secretary,...Ch. 2 - Dr. Gulakowicz is an orthodontist. She estimates...Ch. 2 - Two different manufacturing processes are being...Ch. 2 - The operations manager at Sebago Manufacturing is...
Ch. 2 - Consider the Custom Molds, Inc., case at the end...Ch. 2 - Founded in 1970, ABC is one of the world’s...Ch. 2 - Prepare a flowchart of the field service division...Ch. 2 - Big Bob’s Burger Barn would like to graphically...Ch. 2 - Prob. 10PCh. 2 - Suppose you are in charge of a large mailing to...Ch. 2 - Diagrams of two self-service gasoline stations,...Ch. 2 - Prob. 13PCh. 2 - Prob. 14PCh. 2 - A time study of an employee assembling peanut...Ch. 2 - Prob. 18PCh. 2 - Prob. 19PCh. 2 - Prob. 20PCh. 2 - Prob. 21PCh. 2 - Prob. 22PCh. 2 - Prob. 23PCh. 2 - Smith, Schroeder, and Torn (SST) is a short-haul...Ch. 2 - Prob. 25PCh. 2 - Prob. 26PCh. 2 - Prob. 27PCh. 2 - Prob. 28PCh. 2 - Prob. 29PCh. 2 - Prob. 30PCh. 2 - Prob. 31PCh. 2 - Prob. 32PCh. 2 - Prob. 33PCh. 2 - Prob. 1AMECh. 2 - What percentage of overall complaints do the three...Ch. 2 - Prob. 3AMECh. 2 - Prob. 1VCCh. 2 - What are the benefits that the POI program can...Ch. 2 - Prob. 3VCCh. 2 - What are the major issues facing Tom and Mason...Ch. 2 - Prob. 1.2CCh. 2 - Prob. 1.3CCh. 2 - Prob. 2.1CCh. 2 - Prob. 2.2CCh. 2 - Prob. 2.3C
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- The employees of a midsized printed circuit-board manufacturer had been excited about their quality circle program during its first several months of operation. A number of solid suggestions for improvement have been made, accepted, and implemented, saving the company substantial amount of money by reducing throughput time by 19%, reducing rejection rate by 15% and overall increasing the productivity by 50%. During this period, the management was very supportive, attending all (Quality Circle) QCC presentation of their proposals and even rewarding the groups that have the best contribution in terms of cost savings to the company. Because of its new employee-driven competitiveness, the company became a hot item and achieved profit increase. From this, it is evident that the management has supported the QCC. However, the management was not able to sustain its support, started missing the QCC presentations, accepting proposals but not approving and implementing despite viability of the…arrow_forwardYou are building a Quality Assurance team for your company. The hourly workers are in place and it is time to find the team leader.A) Write a job description for the position of Quality Assurance Manager. This position will have 10 hourly team members reporting to the manager. Research this position and list a minimum of 5 duties the manager must be able to perform. Include educational requirements, determine experience necessary.B) Write a formal job offer for the position of Quality Manager. Offer must include at a minimum, job title, duties, salary, dress code, company drug policy, and benefits.arrow_forwardDescribe and understand tools that can be used to detect and correct qualityproblems.arrow_forward
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