Solutions For Operations and Supply Chain Management 11th Us Edition by Russell

SOLUTIONS MANUAL FOR OPERATIONS AND
SUPPLY CHAIN MANAGEMENT 11TH US EDITION

BY RUSSELL
CLICK HERE TO ACCESS COMPLETE SOLUTIONS
SOLUTIONS
CLICK HERE TO ACCESS THE SOLUTIONS MANUAL FOR OPERATIONS AND SUPPLY CHAIN
MANAGEMENT 11TH US EDITION BY RUSSELL ISBN 9781119905677
2 Quality Management
Answers to Questions
2.1. Consumers perceive quality to be how well a product meets its intended use—that is, how well it does
what it is supposed to do—whereas from the product’s perspective, quality is how well the product
conforms to its design during the production process.
Difficulty: Easy
Learning Objective 1: Discuss and define the dimensions of quality.
Section Reference 1: What Is Quality?
Bloomcode: Knowledge
2.2. 1. Performance: operating characteristics of a product

2. Features: extra items added to basic characteristics
3. Reliability: probability that a product will operate properly
4. Conformance: the degree to which a product meets standards
5. Durability: how long the product lasts
6. Serviceability: ease and speed of repair and courtesy of repair person
7. Aesthetics: how a product looks, feels, sounds, smells, or tastes
8. Safety: Assurance that the customer will not suffer harm; especially important for autos.
9. Other: subjective perceptions based on brand name or advertising
Difficulty: Easy
2.3. Quality of design is the degree to which quality characteristics are designed into a product, whereas
quality of conformance is how effectively the production process is able to conform to the specifications
required by design.
Difficulty: Easy
2.4. The cost of quality assurance is the cost of maintaining an effective quality program and includes
prevention and appraisal costs. The cost of nonconformance, or poor quality, is the result of internal and
external failures. These two costs react oppositely to each other; as the cost of quality assurance increases,
the cost of poor-quality decreases.
Difficulty: Easy
Learning Objective 2: Understand how quality management systems have evolved and be able to assess the
stage of quality evolution a particular company exhibits
Section Reference 2: Quality Management System
Solutions Manual 2.1 Chapter 2

Copyright © 2023 John Wiley & Sons Inc. Unauthorized copying, distribution, or transmission of this page is strictly prohibited
Russell & Taylor Operations and Supply Chain Management, 11th Edition
Bloomcode: Comprehension
2.5. Internal failure costs are incurred when poor quality is discovered before the product is delivered to the
customer, whereas external failure costs are incurred after a customer receives a poor-quality product.
Internal failure costs include scrap, rework, process failure, and downtime, whereas external failure costs
include customer complaints, product returns, warranty claims, product liability, and lost sales.
Difficulty: Easy
Learning Objective 5: Understand different methodologies companies follow to achieve quality
improvement including Six Sigma, productivity improvement, quality awards and ISO 9000.
Section Reference 5: Roadmaps to Quality Improvement: Six Sigma, Productivity, Awards, and ISO
2.6. The contractor could be experiencing low productivity yields and have extensive internal failure costs,
including scrap, rework, process failure, and downtime costs.
Difficulty: Medium
improvement including six sigma, productivity improvement, quality awards and ISO 9000.
Bloomcode: Application
2.7. a. From the consumer’s (e.g., student or parent) perspective, quality is probably determined by whether
the college education provides the job opportunity expected and whether the graduate perceives he or she
has acquired an anticipated level of knowledge that will enable the graduate to perform the job effectively.
From the producer’s (e.g., university) perspective, quality is how effectively it is able to deliver knowledge
(i.e., required courses) and provide the quality-of-life experience expected by the student.
b. The education achieved by the student provides the job opportunities expected and a level of knowledge
that enables the graduate effectively to perform the job achieved.
c. Quality-assurance costs include the cost of hiring the best faculty, administrators, and support personnel,
the cost of designing and redesigning courses and curriculum to meet changing needs, the cost of providing
a good physical and mental environment (i.e., housing, food, entertainment, security, etc.), the cost of
modern technical teaching equipment, the cost of information systems, and the cost of assessing alumni
satisfaction with their education. Costs of poor quality include students who fail or drop out, reduced
funding from the state or private donors, and fewer enrollments.
d. Quality circles could be developed within administrative and operational units and academic
departments. Circles might include both faculty or administrators and classified employees. The normal
quality circle stages of training, problem identification, analysis, solution, and presentation could be
followed.
Difficulty: Medium
Learning Objective 4: Understand the role of customers, employees and services in quality management
systems.
Section Reference 4: Customers in Quality Management

Operations and Supply Chain Management, 11th Edition Russell & Taylor
Bloomcode: Analysis
2.8. Improving quality will increase product yield—that is, the number of acceptable units—thus increasing
productivity.
Difficulty: Easy
Learning Objective 3: Understand different quality tools used to measure and achieve quality improvement.
Section Reference 3: Quality Tools
2.9. The cost of poor quality could include external failure costs for customer complaints, returned products
to be repaired under warranty, lost future sales, and liability costs if someone is hurt because of a problem.
Costs of quality improvement might include improved design costs for the product, process costs, and
inspection costs for the final product and at various stages of the production process.
Difficulty: Easy
stage of quality evolution a particular company exhibits.
2.10. cellphones: Visual attractiveness, size, weight, clarity of sound and picture, and camera features
Pizza: Size, ingredients, taste, smell, service in delivery, and temperature.
Athletic shoes: Size, weight, comfort, visual attractiveness, and durability.
Difficulty: Easy
2.11. The input is customer inquiries, and the final product is responses that result in customer satisfaction.
Associated quality costs might include prevention costs, such as designing a telephone system to ensure
prompt connections without waiting and a properly designed computer system to provide accurate customer
account information, and training costs to make certain service operators are courteous and knowledgeable.
Appraisal costs might include the cost of monitoring service calls to ascertain response rates and operator
courtesy. Poor quality might result in complaints from customers and lost accounts.
A quality management program could incorporate a system to monitor calls to ensure prompt, courteous,
and knowledgeable service. An employee-involvement program, wherein operators might identify
problems, would be beneficial.
Difficulty: Medium
2.12. Prevention costs are directed at preventing poor quality products from reaching the customer, thus
avoiding the various internal and external failure costs associated with poor quality.
Difficulty: Easy
2.13. It is important to have a means for assessing the impact of quality improvement programs on the
organization’s profitability and productivity.
Difficulty: Easy
2.14. W.E. Deming: Introduced the Japanese to quality management principles and philosophy, embodied
in his 14 points.
Joseph Juran: A major contributor to the Japanese quality movement.
Phillip Crosby: Changed general perceptions of cost of quality and promoted zero defects.
Armand Feigenbaum: Introduced the concept of total quality control, a total company-wide approach to
quality management.
Kaoru Ishikawa: Introduced quality circles and cause and effect diagrams.
Difficulty: Easy
2.15. The Baldrige Award has had a pervasive impact on American companies, in general promoting quality
improvement. Thousands of companies request award applications each year to use simply to establish
quality management programs based on Baldrige Award criteria.
Difficulty: Easy
2.16. This should be a student project. There are many relevant articles on the internet, and the articles are
generally easy to read.
Difficulty: Medium


2.17. The student could provide many reasons for failure including lack of total commitment, ineffective
planning, goals too easy or too difficult to achieve, improper measurement techniques, ineffective
leadership, not enough employee training, etc. See G. Salegra and Farzaneh, “Obstacles to Implementing
Quality,” Quality Progress, 33, no. 7 (July 2000): 53–57.
Difficulty: Medium
2.18. The dimensions of quality for a service company are located in the text. The student should identify
these or similar ones for the company they select.
Difficulty: Medium
2.19. The two service companies should be in the community and the quality characteristics the students
will tend to focus on will include courtesy and quickness of service.
Difficulty: Medium
2.20. Although students in this class might suggest that grades are a quality measurement a more realistic
approach to evaluation are student evaluations of the class or surveys of students. Quality characteristics
might include course organization, presentation of lectures, class environment, physical appearance of the
classroom, schedule (i.e., are the lectures completed on time), the quality of supplementary material,
physical appearance and demeanor of the instructor, including friendliness and courtesy, the accuracy and
completeness of assignments, etc.
Difficulty: Medium
2.21. The answer depends on the company selected by the student. For example, there is a particular hotel
that has never gotten a room reservation right for us, and, the instructions for ordering tickets at the web
site for the 1996 Olympics in Atlanta were littered with pitfalls. Airlines are a favorite example of a poor-
quality service for students who travel.
Difficulty: Medium
Learning Objective 3: Understand different quality tools used to measure and achieve quality improvement
2.22. Retail stores and grocery stores are examples of local businesses that, in our experience, tend to vary
in quality. We have never had a bad ordering experience with L.L. Bean although that’s not true of some
other mail order operations we have dealt with. In most cases, if a service has been identified by the student
it will be because of courteous, helpful employees, while if a manufacturing product has been identified, it
will be because of superior physical traits, such as durability.
Difficulty: Medium
2.23. A QMS tends to give some focus and structure to strategic planning. A QMS provides identifiable
goals, and many well-documented initiatives for quality improvement such as quality circles, employee
training, empowerment, etc. A QMS also provides a means for measuring success which is essential in a
strategic planning process.
Difficulty: Medium
2.24. Many U.S. suppliers cannot do business with companies overseas unless they have ISO certification.
In addition, many U.S. companies also desire or request their suppliers to comply with ISO 9000 standards.
Difficulty: Easy
improvement including Six Sigma, productivity improvement, quality awards and ISO. 9000.
Section Reference 5: Roadmaps to Quality Improvement: Six Sigma, Productivity, Awards, and ISO.
2.25. Common characteristics that the students will discover include strong leadership at the top, total
company commitment, employee training, involvement and empowerment, challenging goals for quality
achievement, focus on customer satisfaction, and extensive use of statistical quality control techniques,

among other things.
Difficulty: Easy
2.26. Some companies believe their quality is “good enough.” However, primary reasons for not
implementing a QMS program are lack of time and the cost involved; some companies do not have the
resources available to undertake a QMS program.
Difficulty: Easy
2.27. This will depend on the web site the student accesses. In general, they should adapt the attributes
described for services.
Difficulty: Medium
2.28. This depends on the airline the student selects. Example defects they might mention are flight delays
or cancellations, lost luggage or luggage mishandling, discourteous employees, wrong or misleading flight
information, uncomfortable seats, etc.
Difficulty: Medium
2.29. This will depend on which websites the student selects.
Difficulty: Medium
2.30. Categories of possible quality problems might be related to the ordering process, pizza construction,
pizza ingredients, packaging/boxing, time to receive order, order accuracy/correctness, and pricing.
Difficulty: Medium
2.31. If someone purchases a residence, then the dwelling is more of a product. However, renting a
dormitory room or an apartment tends to fall into the service category because it is part of an ongoing
process or interaction between the owner and renter. In other words, the owner retains responsibility for the
product, i.e., the dwelling. As such, the quality of the living accommodation should be assessed according
to the dimensions of quality for a service.
Difficulty: Medium
2.32. Unfulfilled, late and erroneous orders, and defective items, would obviously have a negative effect
on Amazon’s reputation. Amazon asks customers to rate sellers on its “open market” according to a number
of criteria, and it’s assumed that sellers would be banned if they had continued poor performance. In their
answer, students could reference the Amazon seller rating system.
Difficulty: Medium
2.33. The calculation of the quality and reliability ratings can be found on the J.D. Power Website. To
calculate the ratings, J.D. Power begins with the syndicated study index scores or a specific standard of
measurement which can be found, in most cases, in the associated press release. An example of an index
score is found in the J.D. Power U.S. Retail Banking Satisfaction Study, where companies are ranked
according to overall index scores based upon weighted responses to several survey factors. An example of
a specific standard of measurement is found in the J.D. Power Initial Quality Study, where vehicles are
ranked according to reported Problems per 100 vehicles (PP100). Using these measurements, ratings are
calculated based on the range between the product or service with the highest score and the product or
service with the lowest score. J.D. Power generates a rating of five, four, three, or two.
Difficulty: Medium
systems.
Section Reference 4: Customers, Employees, and Services in Quality Management
2.34. The answer will depend on the product and service the student selects.
Difficulty: Medium

systems.
2.35. The Baldrige Award website for K&N, https://www.nist.gov/baldrige/kn-management , has extensive
information about the company.
Difficulty: Medium
2.36. The answer will depend on the service provider the student selects.
Difficulty: Medium
2.37. They all focus on all aspects of the dining experience including the overall customer experience,
including waiting time, service, food and price. As such, in many ways they are clones of each other, and
must compete on all quality attributes. The student might want to reference the Darden Restaurant Group
(Red Lobster, Olive Garden) and Bloomin’ Brands (Outback, Bonefish Grill, Carrabba’s).
Difficulty: Medium
2.38. According to the Baldrige website, there is increasing pressure in the U.S. to overhaul our health care
system, and health care organizations around the country are looking for ways to improve safety and
outcomes, while reducing cost. The history of the Baldrige Program shows that health care organizations
of any size and type and in any location can benefit from using their health care criteria. It is likely that
healthcare organizations have made more applications for the Baldrige Award, in part to effectively
compete in an industry under close public scrutiny, and partly because health care organizations have the
resources to prepare the extensive Baldrige application materials.
Difficulty: Medium
2.39. Sustainability, in its broadest sense, focuses on improving the “quality” of the workplace (i.e., human
resources), which is one of the seven major categories of criteria for the Baldrige Award criteria.
Difficulty: Easy
2.40. The quality management systems used by Amazon and Target can be applied to any number of
“different” industries, including airlines; the fact that they have not are due more to the commitment of the
company. In the case of airlines, their lack of competition and near monopolies in certain markets
contributes to their unwillingness to adopt quality management principles. Further airlines seem to have
concluded that they must compete on the basis of price and not quality, especially in the customer service
areas.
Difficulty: Medium
2.41. The obvious reason that companies outsource their customer service activities is labor cost; it’s
cheaper. This is the same reason that manufacturing, and retail companies have outsourced their supply to
places like China and Mexico. Many quality-conscious companies like P&G and Wal-Mart seek to
incorporate their overseas suppliers into their own quality management systems, whereas some companies
have not.
Difficulty: Medium
2.42. Apple’s overall product quality, customer service and technical innovations create demand that
overcomes potential “glitches” in its initial product designs.
Difficulty: Medium

2.43. Answer depends on the service provider the student selects.
Difficulty: Medium
systems.
2.44. Companies can insure quality across its supply chain by requiring its suppliers to adopt its own quality
management system, and by closely monitoring its effectiveness. Companies that have failed in their
attempts to insure quality among their overseas suppliers in countries like China, have allowed quality to
be monitored locally or by a third-party firm, while successful companies have used their own offices and
employees to monitor quality overseas, i.e., a physical presence is generally required combined with the
willingness to change suppliers if quality is not forthcoming.
Difficulty: Easy
2.45. In the workplace, labor, materials, manufacturing processes, sourcing and transportation.
Difficulty: Easy
2.46. Common characteristics include a commitment to product and process innovation, emulating “best
practices” of quality leaders, and supply chain efficiency. These companies are typically involved in ISO
certification processes, employ six sigma, and often adopt Baldrige Award criteria.
Difficulty: Easy
2.47. There are several companies identified in the chapter that use six sigma, and the student can also
search “Six Sigma” on the internet.
Difficulty: Easy
systems.
2.48. Categories of quality problems for flight delays could relate to employees (not enough to check in,
problems with the check-in process, deplaning problems, insufficient maintenance personnel to accomplish
plane turn-around, etc.), mechanical problems, luggage problems, maintenance problems, weather, flight
controller problems, over booking, over scheduling, etc.
Difficulty: Medium
Bloomcode: Analysis
2.49. This depends on the business the student selects. If for example, they selected a restaurant they eat at
frequently they would need to identify the categories of quality problems which might include employees,
food quality, restaurant environment, waiting time, price, service, menu, etc.
Difficulty: Medium
2.50. It should be obvious to the student that the most important defects are the engine problems and faulty
brakes. The priority of the quality problems is almost the reverse of the frequencies; faulty brakes are clearly
the most significant category of defects. This points out that when applying Pareto analysis, the degree of
importance must be the same for all defect categories. If not, then the categories should be weighted
according to their importance in order to adjust the chart.
Difficulty: Medium
2.51. Marketing has direct contact with the customer. Marketing is typically responsible for the consumer
research that determines the quality characteristics that customers want and need, and the price they are
willing to pay for it. Marketing also informs the consumer about the quality characteristics of a product
through advertising and promotion. Sales provides feedback information through its interaction with the
customer, which is a determinant of product design. Research and development will explore new ideas for
products and be actively involved in product innovation.
Engineering translates the product quality characteristics determined by marketing and top
management into a product design, including technical specifications, material and parts requirements,
equipment requirements, workplace and job design, and operator training and skills. Overdesigning the
product is a drain on the company’s resources and can erode profits, whereas under designed products will
generally not meet the customer’s quality expectations. Genichi Taguchi, the Japanese quality expert,
estimates that poor product design is the cause of as much as 80 percent of all defective items. It is much
cheaper and easier to make changes at the design stage than at the production stage, so companies need to
focus on quality at all stages of the design process.
Purchasing must make sure that the parts and materials required by the product design are of high
quality. Quality of the final product will be only as good as the quality of the materials used to make it.

Purchasing must select vendors who share the company’s commitment to quality and who maintain their
own quality management program for providing high-quality service, materials, and parts.
Human resources is responsible for hiring employees that have the required abilities and skills, and
training them for specific job tasks. Employees not well trained in their tasks will probably contribute to
poor quality or service. Personnel also have responsibility for educating employees about quality and ways
to achieve quality in their tasks. TQM requires that all employees throughout the organization be
responsible for quality. Employees, collectively and individually, must not only perform their tasks
according to design specifications but also be responsible for identifying poor quality or problems that may
lead to poor quality and taking action to correct these problems. Performance appraisal under TQM focuses
more on quality improvement and group and company achievement than on individual job performance.
Management at all levels must implement the product design according to quality specifications,
controlling labor, materials, equipment, and processes. Failure to manage effectively can result in employee
errors, equipment breakdown, bottlenecks, interrupted service, and the like, which contribute to poor
quality.
Distribution makes sure that high-quality products are delivered on-time and undamaged to the
customer. Packaging methods and materials, storage facilities and procedures, and shipping modes must
ensure that final products are protected and that customers receive them on time.
Difficulty: Medium
Bloomcode: Analysis
2.52. This answer depends on the award the student selects.
Difficulty: Medium
2.53. This answer depends on the company the student selects.
Difficulty: Medium
2.54. This answer depends on the article and company the student selects.
Difficulty: Medium
Bloomcode: Analysis
2.55. This question was adapted from: L. Fredendall, J. Patterson, C. Lenhartz and B. Mitchell,” What
Should Be Changed?,” Quality Progress 35 (1; January 2002): p. 50–59. This is an excellent article about
the use of cause-and-effect diagrams students can be referred to.
Difficulty: Medium
Bloomcode: Analysis
2.56. Black Belt—the leader of a quality improvement project, which is a full-time position
Green Belt—a project team member, which is a part-time position
Master Black Belt—a teacher and mentor for Black Belts which, is also a full-time position. A Black Belt
would have to have led several successful projects before being certified as a Master Black belt.
Difficulty: Easy
2.57. Breakthrough Strategy:

1. Define the process including who the customers are and what their problems are.
2. Measure the process and collect data.

3. Analyze the data in order to develop information that provides insight into the process, including causes
of defects.
4. Improve the process by making changes and measuring the results.
5. Control the improved process by monitoring it and making sure the desired performance level is
sustained.
Difficulty: Easy
2.58. This answer depends on the project the student selects.
Difficulty: Medium
2.59. In general, the ACSI model is a set of causal equations that link customer expectations, perceived
quality, and perceived value to customer satisfaction (ACSI). In turn, satisfaction is linked to consequences
as defined by customer complaints and customer loyalty—measured by price tolerance and customer
retention. There are two menu items on the ACSI website that describe, in general terms, how the ACSI is
determined—“What it measures,” and “Methodology.” The student should refer to these descriptions. As
an example, the student could select two fast food restaurant chains in the fast-food industry and compare
the company with the highest score with the lowest scoring company and explain the reasons for the
difference in scores.
Difficulty: Medium
systems.
Bloomcode: Analysis
2.60. Answer depends on the personal health improvement project the student selects.
Difficulty: Medium
2.61. Answer depends on the personal improvement project the student selects.
Difficulty: Medium
Bloomcode: Analysis
2.62. Answer depends on the infirmary process the student selects.
Difficulty: Medium
2.63. Answer depends on the registration process at the student’s university.
Difficulty: Medium
2.64. In general, the Japanese recognized that even though high quality might cost more in the “short run,”
in the long run it would help them gain market share, which would increase long term profits. This is
something American companies did not recognize. The Japanese economic climate and business and
management culture was also more conducive to quality management programs than American companies.
Difficulty: Medium
Bloomcode: Analysis
2.65. The student should go to the ISO website at www.iso.org to determine these steps.
Difficulty: Medium
2.66. Answer depends on the store the student selects.
Difficulty: Medium
2.67. 5S described in Table 16.1 is a process for identifying defects, establishing goals for improvement,

and then eliminating or correcting defects to achieve the goals, must like Deming’s PDCA cycle, or the Six
Sigma Breakthrough Strategy DMAIC 5 step improvement process.
Difficulty: Medium
2.68. The student should refer to the ISO website and the Baldrige Award website at to answer this question.
Difficulty: Medium
2.69. The answer should include references to some form of customer feedback, such as a “voice of the
customer (VOC)” process and surveys. Since assessing customer satisfaction is a critical part of the
Baldrige Award criteria, the summaries of Baldrige Award winning companies are a good source for
students to learn how companies and organizations assess customer satisfaction.
Difficulty: Medium
2.70. In general, this will be a subjective answer on the part of the student.
Difficulty: Hard
Bloomcode: Synthesis
Solutions to Problems
2.1. a. Failure costs as percentage of quality costs:
Year 1: 157.7 / 187.2 = 0.8424, or 84.24%
161.8
Year 2: = 0.8022, or 80.22%
201.7
153.6
Year 3: = 0.7288, or 72.88%
212.5
127.2
Year 4: = 0.6560, or 65.6%
193.9
97.3
Year 5: = 0.5830, or 58.3%
166.9
The failure costs decrease as a percentage of total quality costs. This may be attributed to an increase in
product monitoring and inspection. Fewer defective products are reaching the consumer, as evidenced by
the sharp decline in external failure costs.
Difficulty: Medium
b.
Prevention costs as % of quality costs: Appraisal costs as % of quality costs:
3.2 26.3
Year 1: = 0.0171, or 1.71%; = 0.1404, or 14.04%
187.2 187.2
10.7 29.2
Year 2: = 0.0530, or 5.3%; = 0.1448, or 14.48%
201.7 201.7
28.3 30.6
Year 3: = 0.1332, or 13.32%; = 0.144, or 14.4%
212.5 212.5
42.6 24.1
Year 4: = 0.2197, or 21.97%; = 0.1243, or 12.43%
193.9 193.9
50 19.6
Year 5: = 0.2996, or 29.96%; = 0.1174, or 11.74%
166.9 166.9
The increase in prevention costs as a percentage of total quality costs indicates that Backwoods American
is placing more emphasis on prevention of defects rather than correction of them. Perhaps they are spending
more in the areas of quality planning, product design, process, training, and information. This is
contributing to a decline in the need for inspection and testing, equipment testing, and operators to test
quality; thus, appraisal costs decline, both absolutely and as a percentage of total costs. Prevention also
contributes to the decline in external and internal failures because fewer defective products are produced to
begin with. Increases in prevention expenditures will result in a decrease in all other quality costs.
c.
Year Quality Sales Index Quality-Cost Index
1 6.93 44.48

2 7.50 47.64
3 7.85 50.04
4 8.39 44.46
5 5.79 38.32
These index values do not provide much information regarding the effectiveness of the quality assurance
program. They are, however, useful in making comparisons from one period to the next and in showing
trends in product quality over time.
d. Examples of quality-related costs:

• Prevention: Market research, that is, producing what consumers want; purchasing only high-quality
down and other materials, designing an efficient and effective manufacturing process; training
employees in making quality products.
• Appraisal: Inspection of raw materials, work-in-process, and finished product; equipment testing
(pattern cutter, sewing machines, etc.), inspection.
• Internal failure: Wasted materials and labor, defective products discovered during inspection, use of
inefficient processes, equipment downtime, poorly trained employees.
• External failure: Defective products, customer complaints, warranty costs, lost sales, loss of good
will.
Difficulty: Medium
2.2. a. Product yield

Year 1: 20,000 (0.83) + 20,000 (1-0.83) (0.20) = 16,600 + 680 = 17,280 parkas
Year 2: 20,000 (0.85) + 20,000 (0.15) (0.20) = 17,000 + 600 = 17,600 parkas
Year 3: 20,000 (0.87) + 20,000 (0.13) (0.20) = 17,400 + 520 = 17,920 parkas
Year 4: 20,000 (0.89) + 20,000 (0.11) (0.20) = 17,800 + 440 = 18,240 parkas
Year 5: 20,000 (0.91) + 20,000 (0.09) (0.20) = 18,200 + 360 = 18,560 parkas
b. Manufacturing cost per good parka:
420,900 + 12 ( 680 ) 429,600

Year1 : = = $24.83
17,280 17,280
423, 400 + 12 ( 600 ) 430,600
Year 2 : = = $24.47
17,600 17,600
424,700 + 12 ( 520 ) 430,940
Year 3 : = = $24.05
17,920 17,920
436,100 + 12 ( 440 ) 441,380
Year 4 : = = $24.20
18,240 18,240
435,500 + 12 ( 360 ) 439,820
Year 5 : = = $23.70
18,560 18,560
Improving the quality assurance program has resulted in fewer defective parkas, lower rework costs, and
greater productivity. This has lowered the per-unit manufacturing costs without additional capital
investment.
Difficulty: Medium
2.3. a. y = (I)(%G) + (I)(1-%G)(%R)

= (150)(0.83) + (150)(1-0.83)(.60) = 139.8 file cabinets
b. 145 = (150) (%G) +(150)(1-%G)(0.60)

145 = 150G + (150-150G)(0.60)
145 = 150G + 90 – 90G
55 = 60 G
G = 55 / 60 = 0.9167 = 91.67%
Difficulty: Medium
2.4. Cost with 83% quality = [27(150) + 8(150)(1-0.83)(0.60)] / 139.8 = $29.85 per cabinet
Cost with 90% quality = [27(150) + 8(9)] / 144 = $28.63 per cabinet
Difficulty: Medium
2.5. Manufacturing cost per good product:

Year 1: Yield = 32,000 (0.78) + 32,000 (0.22) (0.25) = 26,720
Product Cost = (278,000 + 3520) ÷ 26,720 = $10.54
In this case, total direct manufacturing cost = $278,000
and total direct rework = 32,000(0.22) (0.25) = $3250
Year 2: Yield = 34,600 (0.83) + 34,600 (0.17) (0.25) = 30,188.50
Product Cost = (291,000 + 2,941) ÷ 30,188.50 = $9.74
Year 3: Yield = 35,500 (0.9) + 35,500 (0.1) (0.25) = 32,837.50
Product Cost = (305,000 + 1,775) ÷ 32,837.50 = $9.34
Percentage change: 2008 - 2009: (9.74 – 10.54) / 10.54 = -7.59%

2009 - 2010: (9.34 – 9.74) / 9.74 = - 4.11%
Difficulty: Medium,

2.6. a.
Product yield = 300 ( 0.87 )( 0.91)( 0.94 )( 0.93 )( 0.93 )( 0.96 )
= 185 cabinets
b. For a yield of 300, input would have to be

I ( 0.87 )( 0.91)( 0.94 )( 0.93 )( 0.93 )( 0.96 ) = 300
I ( 0.6179 ) = 300
I = 486 cabinets
Difficulty: Medium
2.7. a.
Alt. 1: 300 ( 0.93 )( 0.91)( 0.94 )( 0.93 )( 0.93 )( 0.96 ) = 198
Alt. 2 : 300 ( 0.87 )( 0.96 )( 0.94 )( 0.97 )( 0.93 )( 0.96 ) = 204 Greatest yield
Alt. 3 : 300 ( 0.87 )( 0.91)( 0.94 )( 0.93 )( 0.97 )( 0.98 ) = 197
Alt. 4 : 300 ( 0.87 )( 0.97 )( 0.94 )( 0.93 )( 0.93 )( 0.96 ) = 198
b. Alternative 2 will result in the highest yield and will be the most effective.
Difficulty: Medium
2.8. 320 (1 − 0.12 )(1 − 0.08 )(1 − 0.04 ) = 320 ( 0.88 )( 0.92 )( 0.96 ) = 248.71 err o rless order s
Difficulty: Medium
(585 + 16 )(100 ) = 5.11

2.9. a. QPR =
650 (18) + 16 ( 3.75 )
( 720 + 20 )(100 ) = 5.11
b. QPR =
800 (18 ) + 20 (3.75 )
(585 + 16 )(100 ) = 5.58
c. QPR =
650 (16.50 ) + 16 (3.20 )
( 604 + 11)(100 ) = 5.24
d. QPR =
650 (18) + 11(3.75 )
Difficulty: Medium
250 (100 )
2.10. a. QPR= = 2.34
250 ( 47 ) + 32.5 (16 )
320 (100 )
b. QPR = = 2.34
320 ( 42 ) + 19.2 (12 )
Difficulty: Medium
2.11. a. Product cost =

( K d )( I ) + ( K r )( R )
Y
=
( $6.15 )( 680 ) + (1.75 )( 2.72 )
655.52
4186.76
= = $6.39
655.52
b. Product cost =
( $6.20 )( 680 ) + (1.75 )( 0.68 )
673.88
4217.19
= = $6.26
673.88
Cost savings = $0.13 / good order
Annual savings = $0.13/ good order  rde orders/day  ayd days/year = $32,266
c. It is likely that some customers who receive defective orders will not return, thus, fewer defective orders

will retain more customers and also increase the number of orders.
Difficulty: Medium
655.52
2.12. a. QPR = (100 ) = 15.66
( 680 )( 6.15 ) + ( 2.72 )(1.75 )
673.88
b. QPR = (100 ) = 15.98
( 680 )( 6.20 ) + ( 0.68)(1.75 )
Difficulty: Medium
Learning Objective 5:Understand different methodologies companies follow to achieve quality
2.13. With defects:

cf
v=
p − cv
$350,000
=
1,000 − 600
= 875 units or $875,000 in sales
Without defects (six sigma):
$350,000
v=
1,000 − 540.05
= 760.952 or $760,952 in sales
The slope of the line is steeper with a reduced break-even point; the company can make more money without
making additional units.
Difficulty: Hard
improvement including six sigma, productivity improvement, quality awards and ISO 9000. 9000.
Bloomcode: Evaluation
2.14. Sales = $42(3600)=$151,200

With 8% defect rate:
Sales $151,200
Variable costs 61,200
Fixed costs 31,000
Profit $59,000
The actual served entrees = 3600/(1-8%) = 3913

The real variable cost per unit = $61,200/3913 = $15.64017
Real variable cost without defects = $15.64017(3600) = $56,305
Fixed costs increased per month = $25000/36 = $694.44
With zero defects:

Sales $151,200
Variable costs 56,305
Fixed costs 31,694.44
Profit 63,200.56
Six sigma results in an 8% reduction in variable costs and a corresponding 8% increase in profit. The return
on the Six Sigma investment would be:
Return=100(63,200.56-59,000)/25000=16.8%
Difficulty: Hard
2.15. A possible version of the cause-and-effect matrix:
Key Output (Y) Variables (CTQC’s)

1 2 3 4 5 6
Clothes Clothes not Colors Lint Stains Smell fresh/ Rank of
clean damaged fine free removed no odors X Variables/
Key Input Customer rank 1 3 2 5 6 4 Importance
(X) Variables Weight 10 9 9 7 7 8 Score to Customer
1 Sort laundry 5 6 10 8 5 290 1
2 Cycle 7 8 142 8
3 Wash temperature 8 10 7 219 5
4 Rinse temperature 4 9 121 9
5 Stain treatment 5 10 115 10
6 Load size 9 10 6 6 282 2
7 Fabric softener 3 5 4 9 175 7
8 Detergent 10 7 5 10 278 3
9 Bleach 7 9 6 4 225 4
10 Type of washer 8 9 5 196 6
Difficulty: Medium
2.16. Weekly revenue = (18,400 orders) ($47/order)

= $864,800
Weekly variable costs = - 365,000
Weekly fixed costs = - 85,000

Total profit = $414,800
Orders returned = (18,400)(.12) = 2,208

Cost of refilling orders = (2,208)(.30)($8) = $5,299.20
Cost of lost sales = (2,208)(.70)($47)= $72,643.20
Cost of lost future sales = (2,208)(.70)(.5)(15) = $11,592
Total cost of defects = $5,299.20 + 72, 643.20 + 11,592 = $89,534.40
With quality improvements:
Orders returned = (18,400)(.02) = 368

Cost of refilling orders = (368)(.30)($8) = $883.20
Cost of lost sales = (368)(.70)($47) = $12,107.20
Cost of lost future sales = (368)(.70)(.50)(15) = $1,932
Total cost of defects = $883 + 12,107 + 1,932 = $14,922.40
Savings with quality improvements = $89,534.40 – 14,922.40 = $74,612 per week

Annual savings = ($74,612)(52) = $3,879,824
Since 3,879.824>800,000, the company should invest in the program.
Processes likely to be improved include computer ordering system, suppliers, handling, etc.
Zero defects unlikely because some orders will be returned because customers simply change their minds.
Difficulty: Hard
systems.
CASE 2.1: Designing a Quality Management Program for the Internet at D4Q
This can be an instructive, hands-on case project. The students should first search the internet for different
web sites at which retail items can be ordered. They should next develop a list of quality characteristics or
dimensions to focus on. These might include the visual appearance of the web site, the friendliness of the
language used, the accuracy of instructions, the availability of e-mail or telephone support, etc. An attractive
web site should probably include photos of the catalog items, for example book jackets, CD covers and
video jackets, instead of just item titles. Instructions for ordering should be detailed and accurate with help
icons located at every step. Customer support should be easy to access with e-mail or by telephone.
Responses to requests for support should be quick. Service measurement is difficult in this type of
operation. If an order center is used, then the company can count the number of customers who enter the
center then abort as the result of poor instructions. Follow up surveys of customers who place orders or
request hard copy catalogs is a good way to evaluate service. From the server end, the server responses to
customer inquiries can be monitored for accuracy, completeness and timeliness. These are just a few of the
possible quality initiatives you might suggest to develop a high-quality web site ordering system.
Difficulty: Hard
systems.
CASE 2.2: Quality Management at State University

In general, the student should respond to this case by attempting to go through the chapter and to discuss
each major topic in terms of a university environment. This will require that they first identify the product
and the process, obviously the student and the educational process. However, in a university environment,
is the product also the customer? This is an interesting question to begin with.
An initial step should be to develop a customer definition of quality—that is, what are the dimensions of
quality in an education that parents, students, and legislators expect? This step can be accomplished by
surveying alumni, potential employers, parents, students, and legislators. It would also be beneficial to see
what the competition (other colleges and universities) does.
The various support functions in the university should be identified in terms of a production process. For
example, the admissions office is analogous to the purchasing department. A key problem here in a QM
approach is that the university has little, if any, control over suppliers (high schools). As a result, admissions
must institute inspection and process control procedures to ensure high-quality raw material (i.e., students),
is admitted.
The product-design function, or curriculum design, is typically decentralized in a university among various
colleges and departments. In some cases, the university administration will design a core curriculum for the

first two years and college and departments will design the curriculum for the last two.
The production process is the movement of students through the curriculum to graduation. Discussion
should focus on how to institute process control in order to avoid final product “defects.” This obviously
requires a definition as to what a defective item is—a student who enters but fails to graduate, a student
who graduates but does not gain employment, or a graduate who indicates disappointment with his or her
education five years from now. An area on which to focus is the degree to which quality control tools such
as brainstorming, quality circles, histograms, check sheets, and fishbone diagrams can be used to evaluate
the process.
Customer service would seem to be an integral part of a QM approach in the university. This service would
focus on support services such as dining, recreation, housing, advising, counseling, extracurricular
activities, entertainment, placement, alumni services, etc.
Depending on the time designated to spend on this case, students might interview various administrators at
their own university to determine where QM can be applied in the university and obstacles to a TQM
approach.
Difficulty: Hard
systems.
CASE 2.3: Quality Problems at the Tech Bookstore

a. Mr. Watson’s organization of the customer survey categorized the two bookstores and types of customer,
i.e., students and non-students. He differentiated between the two stores because they carried different
products, and it also was likely that a different population of customers visited the two stores since they
were in different locations. Also, the two stores had different managers, staff and employees; in effect they
were separate entities. He differentiated between the two customer groups because he knew they likely had
different characteristics and different service expectations. Also, it was probable that they shopped for
different items. Student would be primarily interested in textbooks, school supplies, computer items and
apparel, whereas non-students would have not been as interested in textbooks and school supplies, and they
would have had a higher interest in trade books.
A customer survey was probably the best way to start in order to see if there was a quality problem and its
extent. He might also analyze different processes in the store, such as employee floor service, checkout,
etc. He could have probably gotten the help of an OM class on campus to help him analyze various service
processes in the store. He could also benchmark other “successful” college bookstores.
b. It is possible to develop 9 different Pareto charts—a chart each for students and non-students at the
campus store, and a chart each for students and non-students at the off-campus store; a combined chart for
students at both stores and a combined chart for non-students at both stores; a chart for each store combining
the two customer groups at each one; and a summary chart combining all the data for both stores and both
customer categories. Following is a summary of the survey data.
c. Using a fitness for use definition, quality should be prompt, knowledgeable and courteous customer
service; a pleasant shopping environment with prompt and courteous customer checkout; and quality
products at a competitive (or lower) price.
d. The most pronounced problem is the discrepancy between the student and non-student groups in their
perception of service. This is likely due to the different expectations of the two groups. Non-students are
likely to be older and less patient. The student employees’ attitude and demeanor are probably more familiar
to other students, i.e., what they are used to, and they are probably more patient with the student employees
than the non-student group. Also, it is less likely that students will ask questions than the non-student group
so the problem of not being helpful or knowledgeable does not come up as much with students as with non-
students. It also may be that students visit the bookstores more often and know where to find items, and
they may also be more familiar with bookstore policies. Many of the non-student customers could be
visitors.
However, this discrepancy does not hide two other potential quality problems—that the off-campus
store has poorer quality service across all categories than the on-campus store, and there seems to be a
significant problem with employee training at both stores. The relatively low percentage of customers who
think employees are knowledgeable and helpful, reinforced by the graduate student evaluators and the
complaint incidents to the Board, clearly indicates that the student employees are not adequately prepared
to do their job. They are probably in need of more training, however it is likely the bookstore has been
hesitant to provide additional training because of the high turnover rate, i.e., the return on training
investment might be perceived by management to be low when student employees leave after a semester
or two. The off-campus store may have poorer quality service, in general, because of the management staff,
and the fact that the Executive Director resides at the on-campus store.
The much lower percentage of students who think that the cost of purchases at the bookstores is
reasonable is probably due to the fact that students purchase textbooks, which are expensive. The bookstore
probably does not do a very good job of publicizing the fact that it has a very low mark up on textbooks.
This is something that could be highlighted on the store web site, which the students access more than non-
students.
e. Since this is a service several of the costs of poor quality that relate to manufactured products such as
scrap, product rework, returned products, etc., do not apply. Thus, the two primary costs of poor quality are
lost sales and customer complaint costs. The costs the bookstore is incurring to conduct the customer
survey, hire the graduate student evaluators, and analyze the results are all costs of poor quality. From the
limited information provided it is difficult to address the question of lost sales. However, it is noted that
that the town and university have been growing while sales have remained steady. Given the ideal location
of the on-campus store in particular, and the fact that the football team is very successful should mean much
higher sales of licensed apparel. It could be that the quality problems are having a very negative impact on
sales.
f. While the bookstores would benefit from a complete QM program, the most immediate need is for a more
extensive employee training program. The bookstore needs to establish a plan for improving its quality that
includes employee training as a top priority. The plan needs tangible objectives. For example, every
customer question should be answered as promptly as possible. Some form of reward system for employees
might be beneficial. They likely would benefit from a set of guidelines for employees for addressing
customer questions. Having a resource person available that has intimate knowledge of all aspects of store
policies, and knows where all items are in the store, that the student employees could contact at any time

would be a good personnel investment. In addition, management needs to establish a process for monitoring
employee performance on a routine, daily basis. Benchmarking other college bookstores could provide
insight into ways to solve quality problems. A process for measuring customer and employee satisfaction
on a regular basis needs to be put into effect, and performance measures could be tied to these surveys.
g. Because the bookstores are quasi non-profit, government-type entities, the revenue pressures that a
business might feel are not present. Thus, the motivation for improved quality is primarily the store’s
reputation. Another factor is the university-invoked policy of hiring students on a part-time basis. This
means that to solve the quality problems associated with part time students, bookstore management must
look to other solutions besides hiring more-experienced, full-time employees. The fact that students will be
serving adults is a situation that cannot be changed.
h. The most probable benefit would be an increase in sales and revenue. However, employee satisfaction
would also likely increase as a result of a quality management program. Also, the Board of Directors would
likely receive fewer complaints.
Campus Store Off Campus Store

Student Non-student Student Non-student Total
Yes No Yes No Yes No Yes No Yes No
% % % % % % % % % %
Were employees courteous and friendly? 86 14 67 33 75 25 52 48 73 27
Were employees knowledgeable and helpful? 79 21 52 48 77 23 41 59 65 35
Was the overall service good? 86 14 63 37 71 29 55 45 71 29
Did you have to wait long for service? 11 89 45 55 11 89 46 54 25 75
Did you have to wait long to checkout? 12 88 46 54 16 84 45 55 27 73
Was the item you wanted available? 92 8 84 16 90 10 90 10 89 11
Was the cost of your purchase(s) reasonable? 58 42 90 10 60 40 92 8 72 28
Have you visited the store web site? 50 50 12 88 58 42 5 95 41 59
42 5 95 41 59
Difficulty: Hard
Learning Objective 2: Understand how quality management systems have evolved and be able to assess
the stage of quality evolution a particular company exhibits.
Learning Objective 3: Understand different quality tools used to measure and achieve quality
improvement.
systems.
CASE SOLUTION 2.4 - Product Yield at Continental Luggage Company

Average Weekly Yield
Stage 1 yield:
Y 1 = ( I )( %G ) + I (1 − %G )( %R )
= 500 ( 0.94 ) + 500 ( 0.06 )( 0.23 )
= 470 + 6.9
Y 1 = 476.9
Stage 2 yield:
Y 2 = ( 476.9 )( 0.96 ) + 476.9 ( 0.04 )( 0.91)
= 457.82 + 17.36
Y 2 = 475.18
Stage 3 yield:
Y 3 = 475.18 ( 0.95 ) + 475.18 ( 0.05 )( 0.67 )
= 451.42 + 15.92
= 467.34
Stage 4 yield:
Y 4 = 467.34 ( 0.97 ) + 467.34 ( 0.03 )( 0.89 )
= 453.32 + 12.48
= 465.80
Stage 5 yield:
Y 5 = 465.80 ( 0.98 ) + 465.80 ( 0.02 )( 0.72 )
= 456.48 + 6.71
= 463.19
Increasing Good Quality Yield by 1% at Each Stage
Stage 1 yield:
Y 1 = 500 ( 0.95 ) + 500 ( 0.05 )( 0.23 )
Y 1 = 480.75
Stage 2 yield:
Y 2 = 480.75 ( 0.97 ) + 480.75 ( 0.03)( 0.91)
Y 2 = 479.45
Stage 3 yield:
Y 3 = 479.45 ( 0.96 ) + 479.45 ( 0.04 )( 0.67 )
Y 3 = 473.12

Stage 4 yield:
Y 4 = 473.12 ( 0.98) + 473.12 ( 0.02 )( 0.89 )
Y 4 = 472.08
Stage 5 yield:
Y 5 = 472.08 ( 0.99 ) + 472.08 ( 0.01)( 0.72 )
Y 5 = 470.76
Difference in yields = 470.76 – 463.19 = 7.57 units
Difficulty: Hard
LEGAL NOTICE
© John Wiley & Sons, Inc. or the author. All rights reserved. Instructors who are authorized
users of this course are permitted to download these materials and use them in connection
with the course. Except as permitted herein or by law, no part of these materials should be
reproduced, stored in a retrieval system, or transmitted, in any form or by any means,
electronic, mechanical, photocopying, recording or otherwise.
Readers should be aware that websites listed in this work may have changed or disappeared
between when this work was written and when it is read. Neither the publisher nor authors
shall be liable for any loss of profit or any other commercial damages, including but not
limited to special, incidental, consequential, or other damages.


Solutions For Operations and Supply Chain Management 11th Us Edition by Russell

Uploaded by

Copyright:

Available Formats

Solutions For Operations and Supply Chain Management 11th Us Edition by Russell

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Solutions For Operations and Supply Chain Management 11th Us Edition by Russell

Uploaded by

Copyright:

Available Formats

SOLUTIONS MANUAL FOR OPERATIONS AND

SUPPLY CHAIN MANAGEMENT 11TH US EDITION

2.2. 1. Performance: operating characteristics of a product

Solutions Manual 2.1 Chapter 2

Solutions Manual 2.2 Chapter 2

Solutions Manual 2.4 Chapter 2

stage of quality evolution a particular company exhibits.

Solutions Manual 2.6 Chapter 2

among other things.

2.29. This will depend on which websites the student selects.

Solutions Manual 2.8 Chapter 2

Solutions Manual 2.10 Chapter 2

2.43. Answer depends on the service provider the student selects.

Solutions Manual 2.12 Chapter 2

2.52. This answer depends on the award the student selects.

2.53. This answer depends on the company the student selects.

2.57. Breakthrough Strategy:

Solutions Manual 2.14 Chapter 2

2.58. This answer depends on the project the student selects.

2.62. Answer depends on the infirmary process the student selects.

2.63. Answer depends on the registration process at the student’s university.

2.66. Answer depends on the store the student selects.

Solutions Manual 2.16 Chapter 2

Solutions Manual 2.18 Chapter 2

d. Examples of quality-related costs:

2.2. a. Product yield

b. Manufacturing cost per good parka:

420,900 + 12 ( 680 ) 429,600

2.3. a. y = (I)(%G) + (I)(1-%G)(%R)

b. 145 = (150) (%G) +(150)(1-%G)(0.60)

2.5. Manufacturing cost per good product:

Percentage change: 2008 - 2009: (9.74 – 10.54) / 10.54 = -7.59%

Solutions Manual 2.20 Chapter 2

b. For a yield of 300, input would have to be

(585 + 16 )(100 ) = 5.11

2.11. a. Product cost =

Solutions Manual 2.22 Chapter 2

2.13. With defects:

2.14. Sales = $42(3600)=$151,200

The actual served entrees = 3600/(1-8%) = 3913

With zero defects:

2.15. A possible version of the cause-and-effect matrix:

Key Output (Y) Variables (CTQC’s)

2.16. Weekly revenue = (18,400 orders) ($47/order)

Solutions Manual 2.24 Chapter 2

Total profit = $414,800

Orders returned = (18,400)(.12) = 2,208

With quality improvements:

Orders returned = (18,400)(.02) = 368

Savings with quality improvements = $89,534.40 – 14,922.40 = $74,612 per week

CASE 2.2: Quality Management at State University

Solutions Manual 2.26 Chapter 2

CASE 2.3: Quality Problems at the Tech Bookstore

Solutions Manual 2.28 Chapter 2

Campus Store Off Campus Store

CASE SOLUTION 2.4 - Product Yield at Continental Luggage Company

Increasing Good Quality Yield by 1% at Each Stage

Solutions Manual 2.30 Chapter 2

Difference in yields = 470.76 – 463.19 = 7.57 units