QUESTIONS

Case 3-Comparative Analysis of Quality Costs and Organization Sizes in the Manufacturing Environment

Review the case and respond to the following:

1. Is SMEs incurring larger or smaller quality costs and why?
2. What is the thought about the attributes to higher failure costs in larger organizations?
3. What is the COQ in an organization? Comment broadly.

Other Questions

4. If John has been involved in a benchmarking exchange, share his experience.

5. Is benchmarking code of conduct is necessary? Why or why not?

6. What is the thought about the benefits of benchmarking out-way its costs. Why or why not?

Cost of Quality Analysis

The ABC Company has collected the following cost data for the year:

Receiving Inspection $ 15,232

ProductionScrap $ 32,150

RejectedProducts $ 6,200

Product Design $ 25,422

Customer Adjustment Credit $ 85,654

Online Inspection $ 17,248

Quality Team Meeting $ 7,540

Downgrading Products $ 1,125,328

Customer Need survey $ 3,250

Final test $ 25,758

Prototyping $ 136,802

7. Organize this cost in COQ categories and put any non-QOC data in NQ category.

8. Compute the ratio of prevention and appraisal costs to failure costs.

9. Recommend strategies for reducing the Total Quality Cost.