Watts Corporation supplies electronic circuitry to major appliance manufacturers in all parts of the world. Producing a high-quality product in each of the company€™s four divisions is the mission of management. Each division is required to record and report its efforts to achieve quality in all of its primary product lines. The following information was submitted to the chief financial officer for the most recent three-month period:

Required

1. Rank the divisions in order of their apparent product quality.

2. What three measures were most important in your rankings in 1? Why?

3. Which division is most successful in its bid to improve quality? What measures illustrate its high-quality rating?

4. Manager Insight: Consider the two divisions producing the lowest-quality products. What actions would you recommend to the management of each division? Where should their quality dollars be spent?

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Glenwood DIvlslon Lakes DIvislon Springs Divlslon Gilman Divislon Number of sales 168 to I 996 to I warranty claims Number of products 372 to l 225 to l 1,420 to I 3,257 to I 6,430 to 2,140 to I Change in throughput time reduction) Total number of (-4.615%) 21 63% 5.600% (-1 .241 %) 86 to l 168 to I 290 to I 128 to I Glenwood DIvlslon Lakes Dlvislon Springs Divislon Gilman Division Measures: 168 to l 372 to I 996 to l 225 to I Number of products 6,430 to l products reworked Change in throughput 1,420 to l 3,257 to l 2,140 to l (-4.615%) 2163% 5.600% (-1.241%) 86 to l 168 to l 290 to l 128to 1