LO$10-1$ to LO$10-6$

Explain the scope of TQM$,$ understand globally recognized standards, understand the six$-$sigma

approach, illustrate process variation and how to measure it$,$ analyze process quality using

statistics and analyze the quality of batches of items using statistics.

Task

Answer all $4$ questions

Answer the following questions:

$1.$ There is a $3$ percent error rate at a specific point in a production process. If an inspector is

placed at this point, all the errors can be detected and eliminated. However, the inspector

is paid $$8$ per hour and can inspect units in the process at the rate of $30$ per hour.

$10$ MARKS

If no inspector is used and defects are allowed to pass this point, there is a cost of $$10$ per

unit to correct the defect later on$.$

Assume that the line will operate at the same rate $($i$.$e$.,$ the current production rate$)$

regardless of whether the inspector is hired or not.

a$)$ If an inspector is hired, what will be the inspection cost per unit? $($Round your

answer to $3$ decimal places.$)$

SCM$1010$ Manufacturing Process Assignment

b$)$ If an inspector is not hired, what will be the defective cost per unit? $($Round your

answer to $3$ decimal places.$)$

c$)$ Should an inspector be hired based on costs alone?

HINT: Learning Objective: $10-04$ Illustrate process variation and explain how to measure it

$2.$ The following table lists all costs of quality incurred by Sam$$s Surf Shop last year. $2$ MARKS

Annual inspection costs $$165,000$

Annual cost of scrap materials $336,000$

Annual rework cost $84,679$

Annual cost of quality training $506,000$

Annual warranty cost $1,646,000$

Annual testing cost $528,000$

a$)$ What was Sam$$s appraisal cost for quality last year?

HINT: Learning Objective: $10-03$ Understand the Six Sigma approach to improving quality and productivity

$3.$ Select the quality $$guru$$ with the specific aspects of their teachings. Use C for Crosby,

D for Deming, and J for Juran. Use the exhibit in your textbook. $8$ MARKS

Defined quality as $$fitness for use.$$

Defined quality as $$conformance to requirements.$$

Set the performance standard as $$zero defects.$$

Defined $14$ points for management to follow.

Emphasized a general management approach to quality, especially the human elements.

Rejected the concept of statistically acceptable levels of quality.

Stated that less than $20$ percent of quality problems are due to workers.

Recommended continuous improvement to reduce variations.

$4.$ Design quality refers to the inherent value of the product on the marketplace and is

thus a strategic decision for a firm. List the dimensions of quality and provide a

meaning for each.