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YP3-6 R. B. Patrick Company manufactures a high-tech component that passes through two production processing departments, Molding and Assembly. Department managers are partially compensated on
YP3-6 R. B. Patrick Company manufactures a high-tech component that passes through two production processing departments, Molding and Assembly. Department managers are partially compensated on the basis of units of products completed and transferred out relative to units of product put into production. This was intended as encouragement to be efficient and to minimize waste. Sue Wooten is the department head in the Molding Department, and Fred Barando is her quality control inspector. During the month of June, Sue had three new employees who were not yet technically skilled. As a result, many of the units produced in June had minor molding defects. In order to maintain the department's normal high rate of completion, Sue told Fred to pass through inspection and on to the Assembly Department all units that had defects nondetectable to the human eye
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