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Chapter01AssignmentsAns - CHAPTER 1 ASSIGNMENT SOLUTIONS...

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CHAPTER 1 ASSIGNMENT SOLUTIONS EXERCISES 1–1 a. CMS b. FS c. CMS d. CMS e. CMS f. CMS g. FS h. CMS i. CMS j. FS 1–2 1. Customers can be internal or external. Users of the component produced by William’s department are his customers. This includes the assembly depart- ment and the rework department. In a sense, those who buy the calculators are his customers too—after all, the functionality of the calculator is affected by the quality and reliability of its components. 2. William’s department is producing a low-quality component. One out of every 100 units is a high defect rate and is causing a lot of rework. Being sensitive would require a dramatic reduction in the defect rate. A reduction in the de- fect rate would decrease cycle time, lower the rework rate, and decrease costs. This creates the potential to increase value for external customers and makes the life of internal customers much easier. 3. Cost management can provide information concerning quality—both finan- cial and nonfinancial. Defect rates can be tracked over time. Rework costs at- tributable to defective components from William’s department can be meas- ured and tracked over time. Cycle time reductions due to improved quality can be measured and reported. Product cost reductions attributable to im- proved quality can be reported.
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1–3 Companies have set up customer service telephone lines as a necessary part of doing business. A mail-order business will find that many customers prefer to or- der merchandise over the phone rather than filling out an order form, finding a stamp, and mailing it. Software companies find it necessary to have help lines available to customers who may not be as technically sophisticated as a com- puter programmer. Many of these customer service telephone lines are toll-free. Costs include:
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Chapter01AssignmentsAns - CHAPTER 1 ASSIGNMENT SOLUTIONS...

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