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You ore the operations manager for a small knyak ond canoe manufacturer (Valley Kayaks) Iocated on the Pocific Nortiwest (Oregon) Lately your company has experienced
You ore the operations manager for a small knyak ond canoe manufacturer (Valley Kayaks) Iocated on the Pocific Nortiwest (Oregon) Lately your company has experienced product quality problems. Simply put, the kayaks that you produce occasionally have defects and require rework. Consequently, you have decided to assess the impact of introducing a total quality management (TQM) program. After discussing the potential effects with representatives from marketing, finance, accounting, and quality, you arrive at a set of estimates (contained in the following table). Top management has told you that they will accept any proposal that you come up with PROVIDED that if improves the return on assets measure by at least 20 percent. Use Figure 23. a. Calculate ROA with changes and without changes? (Round your answers to 2 decimal places.) b. Would you go forward with this proposal to improve quality? Yes No
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