Question

Below are the newly prepared quality costs for the last two quarters: Last quarter last year First quarter this year Scrap and Rework $312,000 $624,000 Customer returns/warranty $524,000 $204,000 Total $836,000 $828,000 In spite of agreeing to your request to employ further inspection staff from January to increase finished product inspection to 100 per cent, you will see that overall quality costs have shown no significant change. I look forward to receiving your comments on this. Discuss the issues raised by the above memorandum. 4. Explain a system for SPC which concentrates attention on prevention of problems rather than their detection. 5. What are the basic tools of SPC and their main application areas?

          Below are the newly prepared quality costs for the last two quarters:

Last quarter last year
First quarter this year
Scrap and Rework $312,000 $624,000
Customer returns/warranty $524,000 $204,000
Total $836,000 $828,000

In spite of agreeing to your request to employ further inspection staff from January to increase finished product inspection to 100 per cent, you will see that overall quality costs have shown no significant change. I look forward to receiving your comments on this.

Discuss the issues raised by the above memorandum.

4. Explain a system for SPC which concentrates attention on prevention of problems rather than their detection.

5. What are the basic tools of SPC and their main application areas?

Below are the newly prepared quality costs for the last two quarters:

Last quarter last year
First quarter this year
Scrap and Rework 312,000624,000
Customer returns/warranty 524,000204,000
Total 836,000828,000

In spite of agreeing to your request to employ further inspection staff from January to increase finished product inspection to 100 per cent, you will see that overall quality costs have shown no significant change. I look forward to receiving your comments on this.

Discuss the issues raised by the above memorandum.

4. Explain a system for SPC which concentrates attention on prevention of problems rather than their detection.

5. What are the basic tools of SPC and their main application areas?

Added by David C.

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