The week ending

$3$

$1$

st March

$2$

$0$

$2$

$4$

$$saw the global Electronics giant Samsung experiencing numerous quality costs in its manufacturing units as follows:

Activity Cost in USD$

Litigation $

$2$

$1$

$2$

$3$

$4$

$1$

$0$

Rework $

$3$

$1$

$1$

$7$

$3$

$1$

Quality planning $

$4$

$4$

$0$

$0$

Machine downtime $

$3$

$5$

$0$

$4$

$2$

$3$

$$

In

$-$

process inspections $

$2$

$0$

$0$

$5$

$3$

$0$

$$

Repairs and replacements beyond the warranty period $

$9$

$5$

$0$

$6$

$4$

$0$

Consumer research $

$1$

$7$

$5$

$9$

$0$

Returns inwards $

$6$

$0$

$0$

$4$

$2$

$6$

Supplier evaluation $

$3$

$0$

$0$

$7$

$5$

$0$

Analysis of cause of defects in production $

$9$

$0$

$9$

$9$

$9$

Product recall $

$2$

$5$

$0$

$0$

$8$

$4$

$0$

Scrap $

$2$

$5$

$0$

$5$

$7$

$0$

Audit of the quality system $

$4$

$3$

$9$

$3$

$0$

Documentation of quality programmes $

$3$

$5$

$1$

$0$

$$

Quality data gathering, analysis and reporting $

$1$

$9$

$1$

$0$

$0$

Employee training $

$6$

$4$

$0$

$0$

Field testing $

$1$

$7$

$3$

$0$

$0$

Quality circles

$1$

$3$

$3$

$0$

$0$

Final inspection

$2$

$7$

$2$

$5$

$0$

Supervision of testing and inspection activities $

$2$

$8$

$3$

$3$

$3$

$$

Quality improvement projects

$2$

$2$

$0$

$2$

$3$

Customer complaints administration $

$9$

$3$

$0$

$4$

$1$

$1$

Debugging software errors $

$6$

$1$

$4$

$5$

$0$

Statistical process control

$2$

$9$

$1$

$1$

$2$

$$

Quality engineering $

$1$

$5$

$5$

$5$

$5$

$$

Warranty repairs and replacement costs $

$1$

$5$

$0$

$0$

$9$

$9$

$9$

$$

Inspection of incoming raw materials $

$2$

$4$

$7$

$3$

$7$

Loss of sales from reputation of poor quality $

$2$

$3$

$0$

$0$

$7$

$7$

$7$

Retesting of reworked products $

$2$

$3$

$1$

$2$

$0$

$0$

Depreciation of test equipment $

$4$

$1$

$3$

$4$

$3$

$$

System development $

$9$

$1$

$2$

$3$

$$

Required:

a

$)$

$.$

$$Prepare a quality cost sheet clearly showing the four categories of quality costs and express each category of quality cost as a percentage of the grand total.

$($

$2$

$0$

$$marks

$)$

$.$

$$

b

$)$

$.$

$$Examine the quality cost category that presents the greatest challenge at Samsung. Justify your answer.

$($

$6$

$$marks

$)$

$.$

$$

c

$)$

$.$

$$Suggest any six strategic management quality improvement strategies that can help Samsung stay afloat of global competition in the Electronics industry.

$($

$1$

$8$

$$marks

$)$

$.$

d

$)$

$.$

$$Using the data in

$($

a

$)$

$$to construct Joseph M

$.$

$$Juran;s Optimum Model of total quality costs clearly showing cost of conformance

$($

COC

$)$

$$and Costs of non

$-$

conformance

$($

CONC

$)$

$$at Samsung.

$($

$6$

$$marks

$)$

$$

e

$)$

$.$

$$As the Strategic quality management consultant, develop a winning quality policy for Samsung.

$($

$1$

$0$

$$marks

$)$

f

$)$

$.$

$$ Evaluate the significance of quality costing to strategic quality management highlighting any three strategies.

$($

$1$

$0$

$$marks

$)$