Beruflich Dokumente
Kultur Dokumente
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Last Class
2
Strategy
Cost leadership
Product differentiation
Balance scorecard
Learning Objectives
3
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Toyotas Recall
5
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Customer
Satisfacti
on
Design
Specificat
ions
Design Quality:
how closely the
characteristics of
a product or
service meet the
needs and wants
of customer.
Actual
Performa
nce
Conformance
Quality: the
performance of a
product or service
relative to its
design and
product
specifications.
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Costs incurred to
preclude the
production of
products that do
not conform to
specifications
Costs incurred on
defective products
before they are
shipped to
customers
Costs incurred to
detect which of the
individual units of
products do not
conform to
specifications
Costs incurred on
defective products
after they have
been shipped to
customers
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12
Opportunity
costs
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COQ Reports
13
14
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15
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Customer Perspective
16
17
Internal-Business-Process
Perspective
charts
Pareto diagrams
Cause-and-effect diagrams
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Control Charts
18
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Control Charts
19
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Pareto Diagram
20
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Pareto Diagram
21
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Cause-and-Effect Diagram
23
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Cause-and-Effect Diagram
24
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25
The Learning-and-Growth
Perspective: Quality
Improvements
What are the drivers of internal-businessprocess quality?
Recruiting outstanding design engineers
Providing more employee training
Lowering employee turnover
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26
Advantages of Costs of
Quality (COQ)
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Advantages of Nonfinancial
Measures of Quality
28
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Wal-Mart, and GE
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Customer-Response Time
30
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Customer-Response Time
31
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Time Drivers
32
Time Management
33
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35
units/order
100 hrs of manufacturing (8 hrs of setup, 92 hrs of
processing)
Available capacity
Annual
4,000 hrs
Average
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[30*(1002)+10*(502)]/(4000-30*100-10*50)=325
hours (waiting time)
Manufacturing time cycle for gears= 325+100=
425 hours
Manufacturing time cycle for pistons= 325
+50=375 hours
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40
Gears
Pistons
Annual
Average
Number of
Orders
30
10
$22,000
10,000
$21,500
9,600
Direct
Material Cost
per Order
Inventory
Carrying
Cost per
Order per
Hour
$16,000
8,000
$1.00
0.50
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Costs of time
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Product
(1)
Gears
Pistons
Total
(22,00021,500)*30=15,000
--
Expected Loss in
Revenues Plus
Expected Increases
in Carrying Costs
of Introducing
pistons
(2)
(425 250)*$1*30=5,250
(3750)*$0.5*10=1,875
$7,125
(1)+(2)
20,250
1,875
22,125
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Alternative 1:
Introduce Pistons
Relevant Items
(1)
Expected revenues
22,000*30=660,000
21,500*30+9,600*10=$7
41,000
16,000*30+8,000*10=56
0,000
425*$1*30+375*$0.5*10
= 14,625
574,625
487,500
166,375
172,500
Alternative 2:
Do Not Introduce
Pistons
(2)
16,000*30=480,000
250*$1*30= 7,500
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Difference
(3)=(1)-(2)
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Each door sells for $100 and has a direct material cost
of $40
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Parts should be inspected before the bottleneck operation to ensure that only
good-quality parts are processed at the bottleneck operation. Furthermore,
quality-improvement programs should place special emphasis on minimizing
defects at the bottleneck machines.
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In-class exercise
Aardee Industries manufactures pharmaceutical products in two
departments: mixing and tablet making. Additional information on
the two departments follows. Each tablet contains 0.5 gram of direct
materials.
Mixing
Tablet Making
(bottleneck)
150 grams
200 tablets
300,000 grams
400,000
tablets
Monthly production
200,000 grams
390,000
tables
(instead of
400,000
tables)
$16,000
$390,000
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The End
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