Total Quality Management Systems
Not what you're looking for?
Please see the attached example that I am trying to understand and relate to further examples.
It is centered around statistical process control chart.
Leather Skins PTY Ltd produces expensive shoes. The company implemented a total quality
management system in 2003 and has maintained quality-related cost information for the following periods.
1999 2000 2001 2002 2003 2004 2005 2006
Quality costs ($000s)
Prevention 3.2 10.7 28.3 42.6 50 51.2 53.4 54.8
Inspection 26.3 29.2 30.6 24.1 19.6 19.6 18.4 18.7
External Failure 39.1 51.3 48.4 35.9 32.1 31.8 33 32.8
Internal failure 118.6 110.5 105.2 91.3 65.2 72.1 78.4 79.4
TOTAL 187.2 201.7 212.5 193.9 166.9 174.7 183.2 185.7
Other data
1999 2000 2001 2002 2003 2004 2005 2006
Sales $ 2700.6 2690.1 2705.3 2810.2 2880.7 2975.2 3122.8 3317.7
Manuf Costs 420.9 423.4 424.7 436.1 435.5 447.5 458.4 470.6
(a) Analyze the data using the following quality management methods:
(i) Statistical Process Control Chart
(ii) One other suitable method of own choice
(b) What is the effectiveness of the new quality control measures implemented?
Purchase this Solution
Solution Summary
Excel file contains analysis of data using Run chart and x-bar charts.ANOVA is used to evaluate impact of quality control implementation
Solution Preview
Hi,
Please see attached excel file for complete details. Step by step details are ...
Purchase this Solution
Free BrainMass Quizzes
Introduction to Finance
This quiz test introductory finance topics.
IPOs
This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)
Academic Reading and Writing: Critical Thinking
Importance of Critical Thinking
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.
Cost Concepts: Analyzing Costs in Managerial Accounting
This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.