Operations and Supply Chain Management, 9th Edition WileyPLUS Registration Card + Loose-leaf Print Companion
Operations and Supply Chain Management, 9th Edition WileyPLUS Registration Card + Loose-leaf Print Companion
9th Edition
ISBN: 9781119371618
Author: Roberta S. Russell
Publisher: Wiley (WileyPLUS Products)
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Chapter 2, Problem 5P
Summary Introduction

To draw: The the manufacturing cost per good product for three years and the annual percentage increase or decrease because of the quality-management program.

Introduction

Manufacturing cost can be defined as the cost incurred by the firm in consuming various resources in order to make different products. The manufacturing cost increases with the increase in level of production.

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The Omega Shoe Company manufactures a number of dif-ferent styles of athletic shoes. Its biggest seller is the X-Pacer running shoe. In 2008 Omega implemented a quality-management program. The company’s shoe pro-duction for the past three years and manufacturing costs are as follows. Only one-quarter of the defective shoes can be reworked, at acost of $2 apiece. Compute the manufacturing cost per goodproduct for each of the three years and indicate the annual percentage increase or decrease resulting from the quality-management program. Year 2008 2009 2010Units produced/input 32,000 34,600 35,500Manufacturing cost $278,000 291,000 305,000Percent good quality 78% 83% 90%
The following table lists all costs of quality incurred by Kate's shop last year. Annual inspection costs 247000 Annual cost of scrap materials 456000 Annual rework cost 204679 Annual cost of quality training 626000 Annual warranty cost 1886000 Annual testing cost 664000 What was Kate's appraisal cost for quality last year?
Pharasalia skincare Inc. has developed a new lotion that will help to improve skin ageing. Total sales of the  lotion for the last year were $60,000,000. The following data have just been gathered on last year's quality- related costs. COST CATEGORY AMOUNT ($) Product recalls $625,000 Downtime due to defects 600,000 Warranty claims 420,000 Inspection of and testing of incoming materials 300,000 Product liability lawsuits 500,000 Process quality audits 350,000 Rework costs 480,000 Quality training 150,000 Process control monitoring 350,000 Transportation costs to fix customers' problems 375,000 Statistical process control 200,000 Waste 300,000 Net cost of scrap 650,000 Supplier certification 250,000 Reliability engineering 200,000 Returned products 380,000 Manufacturing inspection 150,000   1.Prepare a cost-of-quality report classifying costs into prevention, appraisal, internal failure, and external failure. Also, show costs as a percentage of total costs and total sales.   2.Write a…

Chapter 2 Solutions

Operations and Supply Chain Management, 9th Edition WileyPLUS Registration Card + Loose-leaf Print Companion

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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