Assignment #1

1. Analyze the quality cost data for assignment #1 posted on a pdf file separately. What implications do this data suggests to management?

2. Quality has been defined as customer satisfaction (or fitness for use). Quality may also be defined as conformance to specifications . In theory, creating the proper specifications and then manufacturing product that conforms to those specifications should lead to customer satisfaction. Alas, life isnt that simple.

Consider these four situations for a product:

a. Conforms to specifications; is competitive on fitness.

b. Conforms to specifications; is not competitive on fitness.

c. Does not conform to specification; is competitive on fitness.

d. Does not conform to specifications; is not competitive on fitness.

Which two of these four situations are theoretically not possible, but in practice do occur and may cause much confusion and concern? -----------and ------------?

Give an example for each situation

First situation:

Second situation:

TABLE 2.2 Quality cost statement by product line Product A Product B Product C Prevention, $ Appraisal, $ Internal failures, $ External failures, $ Grant total, $ Shipments, $ Ratio-quality cost to shipments, % Number of machines, Total quality cost per machine, $ 5,698 37,676 119,107 133,168 295,649 8,165,000 3.62 71 4,165 1,569 10,384 60,876 12,625 85,454 1,750,000 4.88 14 6,104 1,908 9,206 63,523 15,755 90,392 840,000 10.76 14 6,456 TABLE 2.2 Quality cost statement by product line Product A Product B Product C Prevention, $ Appraisal, $ Internal failures, $ External failures, $ Grant total, $ Shipments, $ Ratio-quality cost to shipments, % Number of machines, Total quality cost per machine, $ 5,698 37,676 119,107 133,168 295,649 8,165,000 3.62 71 4,165 1,569 10,384 60,876 12,625 85,454 1,750,000 4.88 14 6,104 1,908 9,206 63,523 15,755 90,392 840,000 10.76 14 6,456