Big Top Toys makes a variety of badminton and volleyball sets for peoples home use. The company
Question:
Big Top Toys makes a variety of badminton and volleyball sets for people’s home use. The company sells 100,000 badminton sets and 75,000 volleyball sets per year. The company just hired a new quality control manager, George Burns, who has decided to make a study of current performance and provide this information to top management. The data he has collected is in the following table.
George decides to hold his first quality control team meeting. He arrives with the table above and starts the discussion.
George: Welcome, team. Time for us to get to work!
Frank, line supervisor: We aren’t exactly working. We’re sitting in a meeting, missing our production goals. This had better be important!
George: Just look at that table in front of you. Isn’t that saying we need to start paying more attention to quality around here?
Julie, Finance: I see a lot of numbers here, but it’s awfully hard to see any trends. It does look like we need to pay attention to the net production line, but outside of that, the rest is hard to understand from just the numbers.
George: Well, we could look at this in several different ways, I guess. I just thought this would do for a first pass, but I’m not getting that feeling from the faces in this room. Why don’t we call this meeting early, and I’ll take another look at the data and see if there is a better way for us to understand what is happening.
Frank: Good idea. I’ll get back to making badminton sets.
REQUIRED:
a. Using the data in the chart, develop a Pareto, trend, and RADAR chart for the data.
b. What do the charts suggest? Is the message more or less clear than that contained in the numbers alone?
c. Now, using percent change in each error area, redo your Pareto, trend, and RADAR chart analysis. Use 20x4 as your base year.
d. Which chart is most informative now? Why?
e. What would be your recommendation to Big Top Toys? Why?
Step by Step Answer:
Managerial Accounting An Integrative Approach
ISBN: 9780999500491
2nd Edition
Authors: C J Mcnair Connoly, Kenneth Merchant