Question

1. Review the CoQ Analysis. Should marketing research and other similar cost categories be included? What other cost categories should be included? Where should Roberta go to get estimates for these other costs? Who else might need to be involved?
2. If Aqua-Fun implements Six Sigma, what costs might be expected to go up, at least in the short term? What costs should be expected to go down? Can this program be financially justified? How?
3. If Aqua-Fun implements Six Sigma, what costs might be expected to go up, at least in the short term? What costs should be expected to go down? Can this program be financially justified? How?
This case provides an opportunity for the class to discuss more of the specifics in how quality improvement programs might be financially justified and executed. The objectives of this case are:
1. Reinforce the need for quality improvement programs (like Six Sigma) to require the buy-in and involvement of many functions in the firm (not just operations).
2. Provide experience in wrestling through ambiguities about what activities should and should not be included in a CoQ analysis.
3. Give the student a simple example of how investments in quality improvement programs might be justified.


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  • CreatedMarch 30, 2015
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