Rich Ingram, the president of Merkel Industries, Inc., was beaming when he was reviewing the company's quality

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Rich Ingram, the president of Merkel Industries, Inc., was beaming when he was reviewing the company's quality cost report. After he had implemented a quality-control program for three years, the company's defect rate had declined from 20 percent to 3 percent. Mr. Ingram patted Judith Gomez, the production manager, on her back and said: "You have done a great job! I plan to reward you for your hard work. However, I want the defects to disappear completely before I promote you to the position of executive vice president. So, zero-defect is going to be your personal goal for the coming year." Ms. Gomez responded wearily, "I'm not sure that's really a good idea."
Required
Write a memorandum to the president explaining that zero-defect is not a practical policy.
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Fundamental Managerial Accounting Concepts

ISBN: 978-1259569197

8th edition

Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Olds

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