San Angelo Manufacturing Company was concerned about a growing number of defective units being produced. At one

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San Angelo Manufacturing Company was concerned about a growing number of defective units being produced. At one time, the company had the percentage of defective units down to less than five per thousand, but recently rates of defects have been near, or even above, 1%. The company decided to graph its defects for the last 8 weeks (40 working days), beginning Monday, September 1 through Friday, October 24. The graph is shown in Exhibit 9-12.

1. Identify two important trends evident in the quality-control chart.

2. What might management of San Angelo do to deal with each trend?

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Introduction to Management Accounting

ISBN: 978-0133058789

16th edition

Authors: Charles Horngren, Gary Sundem, Jeff Schatzberg, Dave Burgsta

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