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Total Quality Management Systems

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?

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Hi,

Please see attached excel file for complete details. Step by step details are ...

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

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