OPERATIONS MANAGEMENT CUSTOM ACCESS
11th Edition
ISBN: 9780135622438
Author: KRAJEWSKI
Publisher: PEARSON EDUCATION (COLLEGE)
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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 CUSTOM ACCESS
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...
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