Documente Academic
Documente Profesional
Documente Cultură
Don R. Hansen
Maryanne M. Mowen
Nabil S. Elias
David W. Senkow
Chapter 16-1
Chapter Sixteen
Chapter 16-2
Learning Objectives
Chapter 16-3
Quality Defined
Chapter 16-4
Prevention costs
Appraisal costs
Internal failure costs
External failure costs
Chapter 16-5
Appraisal Costs
Quality engineering
Quality training programs
Quality planning
Quality reporting
Supplier evaluation and selection
Quality audits
Quality circles
Field trials
Design reviews
Outside endorsements
Chapter 16-6
Scrap
Rework
Downtime (defect related)
Reinspection
Retesting
Design changes
Cost of recalls
Lost sales
Returns/allowances
Warranties
Repairs
Product liability
Customer dissatisfaction
Lost market share
Complaint adjustment
Chapter 16-7
Chapter 16-8
Chapter 16-9
Chapter 16-10
Chapter 16-11
% of Sales
$35,000
80,000
$115,000
4.11%
$20,000
10,000
38,000
68,000
2.43%
$50,000
35,000
85,000
3.04 %
65,000
$333,000
=======
2.32%
11.90%
=====
$25,000
25,000
15,000
Chapter 16-12
Appraisal costs
External failure costs
19.5%
25.5%
34.5%
20.5%
Chapter 16-13
Cost
Cost of Control
0
100%
Optional (AQL)
Percent Defects
Chapter 16-14
Zero-Defect Graph
Total
Quality
Cost
Cost
Percent Defects
Chapter 16-15
100%
$440,000
423,000
412,500
392,000
280,000
Actual Sales
$2,200,000
2,350,000
2,750,000
2,800,000
2,800,000
Chapter 16-16
% of
20.0
18.0
15.0
14.0
10.0
% of
Sales
20
15
10
5
Year
3
5
Chapter 16-17
20
15
10
5
0
1997
1998
1999
Chapter 16-18
2000
2001
6.0%1
6.0
5.4
5.6
4.4
4.5%
4.0
3.6
3.2
2.4
Expressed as a % of sales
Chapter 16-19
Internal
Failure
4.5%
3.5
3.0
3.1
3.0
External
Failure
6.0%
4.5
3.0
2.6
2.3
25
% of
Sales
20
15
10
5
0
1997
1998
1999
Chapter 16-20
2000
2001
Illustration of Productivity
Improvement
Technical Efficiency is the condition where no more of
any one input is used than necessary to produce
a given output.
Technical efficiency improvement is when less inputs are
used to produce the same output or more output are
produced using the same input.
Current productivity
INPUTS / OUTPUT
Chapter 16-22
Illustration of Productivity
Improvement
Same output, fewer inputs:
INPUTS
OUTPUT
Chapter 16-23
Illustration of Productivity
Improvement
More outputs, same inputs:
INPUTS
OUTPUT
Chapter 16-24
Illustration of Productivity
Improvement
Input trade-off efficiency is when a less costly input mix is
used to produce the same output.
Combination I: Total cost of inputs = $20,000,000
INPUTS
OUTPUT
Chapter 16-25
Illustration of Productivity
Improvement
Combination II: Total cost of inputs = $27,000,000
INPUTS
OUTPUT
Chapter 16-26
Chapter 16-27
Chapter 16-28
B. Ratios compared:
2000
2001
labour
0.50
0.57
Materials
2.00
2.50
Both ratios have improved, so productivity has improved.
Chapter 16-29
Profile Measurement
Profile Measurement provides a series or a vector of
separate and distinct partial operational measures.
Example:
Kankul implements a new production and assembly process in
2001. Only now lets assume that the new process affects both
labour and materials. The following data for 2000 and 2001 are
available
2000
120,000
40,000
1,200,000
Chapter 16-30
2001
150,000
37,500
1,428,571
3.000
0.100
Chapter 16-31
4.000
0.105
3.000
0.100
Chapter 16-32
4.000
0.088
Profit-Linked Productivity
Measurement
Example:
Tick-Tock Company provided the following data for 2000 and 2001:
2000
2001
Production (no. of clocks)
100
120
Selling price
$500
$500
Materials used (kg.)
50
72
labour hours used
200
228
Cost per kg. of material
$5
$5
Cost per hr. of labour
$10
$10
Chapter 16-34
Input
= 120/2
= 120/0.5
PQ
PQ x P
= 60 kgs.
= 240 hrs.
AQ
AQ x P
(PQ x P) - (AQ x P)
Matls
60
$ 300
72
$ 360
$ (60)
labour
240
2,400
228
2,280
120
$2,700
$2,640
$ 60
Chapter 16-36
End of Chapter 16
Chapter 16-37