QUESTION 1 (8Marks)

Read the following article and answer the question that follow

Dittenhoefers Fine China Overall, Steve Edwards, vice president of Marketing at Dittenhoefers Fine China, is very pleased with the success of his new line of Gem-Surface china plates. Gem-Surface plates are different from regular china in that the plates have a special polymer coating that makes them highly resistant to chipping and fading. Not only are the plates more durable, they are also completely dishwasher safe. In order to manufacture the new plates, Dittenhoefers has leased a special machine to apply the coating and has put in place a drying system to cure the coating on the plates. The research and development (R&D) lab has determined that in or- der to prevent defective plates, it is important that the machine apply the polymer coating at the proper temperature and in the proper thickness. Quality Problems Traditionally, quality control at Dittenhoefers has consisted of visually inspecting finished items for defects (chips, cracks, etc.) as they are being packed for shipment. This was acceptable in the past, when defects were few and far between. With the new polymer-coating technology, however, this has caused some serious problems. For instance, on one Friday during the Christmas sea- son, the packers noticed that nearly all of the plates they were getting ready to ship had faded designs, which suggested that the temperature of the polymer-coating machine might be too high. Sure enough, when a supervisor went back to check on the polymer-coating machine, he found that the thermostat was set at 190 degrees. Apparently, someone had set the temperature higher to clean the machine but had forgotten to reset it back to 165 degrees. The good news was that the problem was easily fixed. The bad news was that the ma- chine had been running at 190 degrees since Wednesday. In the interim, 2,400 plates had been run through the coating machine. In the end, Dittenhoefers had to destroy all 2,400 plates and was late making shipments to several important customers. In another instance, a worker just happened to notice that the polymer-coating machine was not using as much raw material as expected. When the worker measured the thickness of the coating being applied to the plates, she found out why: The coating thickness was only 2.4 microns. A quick check of plates being dried and those being packed revealed that they, too, had a coating thickness of around 2.4 microns. While manufacturing was able to correct the problem and save these plates, no one knew how many plates had been shipped before the problem was discovered. Source: Bozarth, C.C. and Handfield, R.B. (2016) Introduction to Operations and Supply Chain Management (4 th edition) New Jersey: Pearson Prentice Hall; REQUIRED:

In light of this caselet, discuss the four different types of costs related to quality of products

QUESTION 2 (12marks)

Mercy spends 15hours researching and writing a 20-page report for her supply chain project. Nick says he has a streamlined process for performing research and writing and takes 8 hours to research and writes a 15-page report.

2.1 Calculate Mercys and Jacks productivity 4marks

2.2 Determine the type of productivity in the above scenario and its limitation. 4marks

2.3 Discuss other performance measures that can be used in measuring performance. 4marks