Compute the company total failure costs

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Reference no: EM133203573 , Length: Word count: 3 Pages

Assignment Task: Quality Cost and Lean Six Sigma Tools

This Assignment reviews on the course materials of Units 3 and 4. Student will answer (5) questions in MS Word and or Excel Spreadsheet, submit your document into the link in Assignment area, see due date from the Course Schedule.

Question One: Quality Cost Calculation

ABC children's toy manufacturing company implemented the Lean Six Sigma program in 2004. Following are quality-related accounting data that have been accumulated for the 5-year period 1 year prior to the program's start.

Year	2004	2005	2006	2007	2008
Quality Costs (000s)
Prevention	$3.20	10.7	28.3	42.6	50
Appraisal	26.3	29.2	30.6	24.1	19.6
Internal Failure	39.1	51.3	48.4	35.9	32.1
External Failure	118.6	110.5	105.2	91.3	65.2
Accounting Measures (000s)
Sales	$2,700.60	2,690.10	2,705.30	2,810.20	2,880.70
Manufacturing costs	420.9	423.4	424.7	436.1	435.5

a. Compute the company's total failure costs as a percentage of total quality costs for each of the 5 years. Does there appear to be a trend to this result? If so, speculate on what might have caused the trend.

b. Compute prevention costs and appraisal costs, each as a percentage of total costs, during each of the 5 years speculate on what the company's quality strategy appears to be.

c. Compute quality -sales indices and quality-cost indices for each of the 5 years. Is it possible to assess the effectiveness of the company's quality-management program from these index values?

d. List several examples of each quality-related cost-that is, prevention, appraisal, and internal and external failure - that might result from the production of children toys.

Question Two: Pareto Chart

During the past month, a customer-satisfaction survey was given to 200 customers at a local fast-food restaurant. The following complaints were lodged:

Complaint	Number of Complaints
Cold Food	105
Flimsy utensils	20
Food tastes bad	10
Salad not fresh	94
Poor service	15
Food greasy	9
Lack of courtesy	5
Lack of cleanliness	25

Create a Pareto chart with this information, comment on what you (as a manager of this fast-food restaurant) would do about the high number of complaints on 'cold food' and 'salad not fresh'. See explanation of Pareto Chart from your LSS , V 15, 16, 17.

Question Three: Problem solving using define, measure, analyze, improve, control

An orange juice producer has found that the fill weights (weight of product per container) of several of its orange juice products do not meet specifications. If the problem continues, unhappy customers will stop buying its product. Outline the steps that it should take to solve this problem. Provide as much detail as you can

Question Four: Creativity and Innovation tools

Brainstorm 10 reasons why a computer might malfunction.

Question Five: House of Quality

Create a house of quality for a computer. Develop customer requirements related to ease of use, cost, capabilities, and connectivity. Make sure the customer requirements are a "wish list" stated in nontechnical terms. (See example from LSS Primer, Section 3, page III-26)

Question Six: Design of Experiment.

A spectrometer was used to make five measurements of the carbon content (in ppb) of a certain silicon wafer on four consecutive days. The results are as follows:

Day 1:	358	390	380	372	366
Day 2:	373	376	413	367	368
Day 3:	336	360	370	368	352
Day 4:	368	359	351	349	343

a. Construct an ANOVA table; you can give a range for the P-value.

b. Can you conclude that the calibration of the spectrometer differs among the four days?

Reference no: EM133203573

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