Question: Macrosoft Data Entertainment (MacDatEE) develops software systems for the sports and entertainment market. The company implemented a quality system in late 2014 and has been

Macrosoft Data Entertainment (MacDatEE) develops software systems for the sports and entertainment market. The company implemented a quality system in late 2014 and has been tracking its quality related costs since 2015. The following is the accumulated data from the past 5 years.

Year

2015

2016

2017

2018

2019

All figures in $ 000s

Prevention

30

80

250

300

400

Appraisal

340

300

240

200

120

Internal Failure

350

420

320

210

140

External Failure

1,400

1,100

920

870

680

Sales

27,000

26,000

30,000

33,000

39,000

Total Costs*

25,000

25,200

27,000

29,000

30,200

Lines of Code Produced (in millions)

1.01

1.00

1.11

1.21

1.30

Code lines with first pass error++

0.11

0.18

0.15

0.12

0.09

* Total Costs: All costs related to the business

++ Lines of code that are not error free on first verification (in millions)

Question 1 (10 marks)

Compute the companys total failure cost as a percentage of total quality costs for each of the five years. Interpret the data (look for trends) and speculate on could be potential causes.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!