Question 1

ISO certification is a key component of a firm's efforts to improve quality and compete successfully.
Required: What must an organization demonstrate, in terms of its operating processes, in order to become ISO-9000 certified?

Accepted Answer

The answer of ISO certification is a key component of...

Question 2

The cost of scrap, rework, and tooling changes in a product quality cost system are properly categorized as a(n):

Accepted Answer

The cost of scrap, rework, and tooling changes are incurred when there is a failure to meet quality standards, either during production or after delivery. These costs are considered internal failure costs because they occur within the company and are a result of poor quality.

Question 3

Jordan Company manufactures doors and maintains a Cost-of-Quality (COQ) reporting system. Classify each of the following quality-related costs as a prevention cost, an appraisal cost, an internal failure cost, an external failure cost, or none of the above.
(a) Retesting of reworked products
(b) Downtime due to quality problems
(c) Analysis of the cause of defects in production
(d) Depreciation of test equipment
(e) Warranty repairs
(f) Lost sales arising from a reputation for poor quality
(g) Quality circles
(h) Rework direct manufacturing labor and overhead
(i) Net cost of spoilage
(j) Technical support provided to suppliers
(k) Audits of the effectiveness of the quality system
(l) Plant utilities in the inspection area

Accepted Answer

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Question 4

List and explain three tools that can be used to identify or detect quality problems in a process or operation.

Accepted Answer

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Question 5

Product-quality-related costs are part of a total quality control program. A product-quality-related cost incurred in detecting individual products that do not conform to specifications is an example of a(n):

Accepted Answer

Appraisal costs are associated with the inspection and testing of products to ensure they meet the necessary specifications. In this case, the cost incurred in detecting individual products that do not conform to specifications is an example of appraisal cost. Prevention costs are incurred to prevent defects from occurring in the first place, while internal failure costs are associated with correcting problems discovered during the production process. External failure costs are incurred when defects are discovered after the product has been delivered to the customer, and opportunity costs are associated with the foregone benefits of choosing one option over another.

Question 6

List three examples of quality improvement in a manufacturing facility that would lead to increased sales productivity.

Accepted Answer

The answer of List three examples of quality improvement in...

Question 7

The cost of statistical quality control in a product quality cost system is properly characterized as a(n):

Accepted Answer

Statistical quality control is a type of inspection and appraisal that is considered an appraisal cost in a product quality cost system. It is not related to external or internal failure costs, training costs, or opportunity costs.

Question 8

What is the processing cycle efficiency (PCE) for this order (rounded)?

Accepted Answer

The answer of What is the processing cycle efficiency (PCE)...

Question 9

Identify the appropriate cost-of-quality (COQ) category for each of the following items:
1. Engineering time spent to simplify production processes.
2. Engineering time spent on engineering change orders to reduce the number of component used in a current product.
3. Scrap resulting from substandard materials undetected by the receiving personnel.
4. Rework to correct inconsistency caused by machine variability.
5. Preventive maintenance on machinery.
6. Product inspections.
7. Air freight to replace a defective part discovered by a customer.
8. Long-distance call to a customer who has experienced a quality failure.

Accepted Answer

The answer of Identify the appropriate cost-of-quality (COQ) category for...

Question 10

The four accepted categories of a Cost of Quality (COQ) Report are prevention, appraisal, internal failure, and external failure. Assume your cost management instructor has given you an assignment related to COQ. You are to relate each of the cost categories above to the preparation of a class project, which is a study of an actual firm's cost management system. The typical student spends 16 hours researching an identified firm, five hours writing the report, and three hours in revising and presenting the report to the class.
Required:
1. Give an example of prevention, appraisal, internal failure, and external failure costs you might encounter in writing and presenting your report. (Example: "Draw up a time budget with necessary deadlines before starting the report" is an example of a prevention cost.)
2. Which of the four category examples you gave for Requirement (1) above has the greatest cost? What has the least cost? What has the greatest benefit? What has the least benefit? (Example: "Not saving word processing on a hard drive or jump drive" is an example of greatest cost in terms of time.)

Accepted Answer

The answer of The four accepted categories of a Cost...

Question 11

What is the reasoning behind the misconception that quality improvements decrease productivity?

Accepted Answer

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Question 12

Cari and Jeremy just bought a bed and breakfast inn at a very attractive price. The business had been doing poorly. Before they reopened the inn for business, they attended a seminar on operating a high-quality business. Now that they are ready to open the inn, they need some advice on quality costs and the management and control of quality.
Required:
1. Identify and define each of the four categories in a typical Cost-of-Quality (COQ) reporting system.
2. For the identified business (bed and breakfast) provide three examples of costs within each of the four COQ categories.

Accepted Answer

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Question 13

What is the production (manufacturing) lead time for this order?

Accepted Answer

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Question 14

In 2013 a manufacturing company instituted a Total Quality Management (TQM) program and one year later produced the report shown below:  On the basis of the above report, which one of the following statements is most likely correct?

Accepted Answer

The answer of In 2013 a manufacturing company instituted a...

Question 15

An example of an internal failure cost in a Cost-of-Quality (COQ) reporting system is:

Accepted Answer

Rework is an internal failure cost as it refers to the cost of repairing or redoing work that was not done correctly the first time.

Question 16

Statistical quality control often involves the use of control charts, whose basic purpose is to:

Accepted Answer

Control charts are used to detect performance trends away from normal operations, allowing for corrective action to be taken before the process becomes out of control. Options A, B, D, and E are not the basic purpose of control charts in statistical quality control.

Question 17

Chapter 17 presents as Exhibit 17.3 a framework that can be used as the basis for creating a comprehensive system for managing and controlling quality.
Required: Provide an overview of the key elements of the framework presented in the chapter.

Accepted Answer

The answer of Chapter 17 presents as Exhibit 17.3 a...

Question 18

Kray Co. manufactures high quality knives for use in the meat processing industry, and operates in an industry which values and rewards consistent production quality. Technical innovation over the past decade has given the industry a good supply of high quality steel in raw material form. Kray Co. recognizes the need to establish and maintain strong quality controls for labor activities. A company quality team has asked you to assist the company in recommending either a goalpost conformance quality plan or an absolute quality conformance plan to monitor its manufacturing activities.
Required:
1. Briefly distinguish between the two approaches to ensuring conformance with production standards.
2. Explain how the Taguchi Quality Loss Function operates within the absolute quality conformance plan.3. Do you think worker reaction to the two plans in Part (1) above might be different? Why or why not?

Accepted Answer

The answer of Kray Co. manufactures high quality knives for...

Question 19

Which of the following items is not considered an external quality metric?

Accepted Answer

Throughput efficiency is an internal quality metric, as it measures how efficiently resources are being used within the system. External quality metrics, on the other hand, focus on aspects of the system's performance that are visible or important to customers or stakeholders outside of the organization. A, B, C, and E are all examples of external quality metrics.

Question 20

Listed below are 6 items concerned with quality.
Required: Classify each of these items into its appropriate Cost-of-Quality (COQ) category: Prevention Cost; Appraisal Cost; Internal Failure Cost; or External Failure Cost.
1. Establish a 24-hour hot line for customers to report quality failures.
2. Establish a quality-inspection program.
3. Re-design parts and components to simplify manufacturing of the product.
4. Hire additional field service people to provide better services.
5. Extend the warranty period for products from 90 days to one year.
6. Train employees on the importance of zero defects.

Accepted Answer

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Quiz 17: The Management and Control of Quality

ISO certification is a key component of a firm's efforts to improve quality and compete successfully. Required: What must an organization demonstrate, in terms of its operating processes, in order to become ISO-9000 certified?

The cost of scrap, rework, and tooling changes in a product quality cost system are properly categorized as a(n) :

List and explain three tools that can be used to identify or detect quality problems in a process or operation.

Product-quality-related costs are part of a total quality control program. A product-quality-related cost incurred in detecting individual products that do not conform to specifications is an example of a(n) :

List three examples of quality improvement in a manufacturing facility that would lead to increased sales productivity.

The cost of statistical quality control in a product quality cost system is properly characterized as a(n) :

What is the processing cycle efficiency (PCE) for this order (rounded) ?

What is the reasoning behind the misconception that quality improvements decrease productivity?

What is the production (manufacturing) lead time for this order?

In 2013 a manufacturing company instituted a Total Quality Management (TQM) program and one year later produced the report shown below: On the basis of the above report, which one of the following statements is most likely correct?

An example of an internal failure cost in a Cost-of-Quality (COQ) reporting system is:

Statistical quality control often involves the use of control charts, whose basic purpose is to:

Chapter 17 presents as Exhibit 17.3 a framework that can be used as the basis for creating a comprehensive system for managing and controlling quality. Required: Provide an overview of the key elements of the framework presented in the chapter.

Which of the following items is not considered an external quality metric?