Problem (Class Exercise)

The following shows the annual quality cost report of a company. What percent of the
total quality cost is the appraisal cost?

Warranty costs : Rs 14,000

Scrap : Rs 15,000
Rework : Rs 12,000
Materials Inspection : Rs 6,000
Customer complaints : Rs 5,000
Quality Training : Rs 2,000
Quality improvement projects : Rs 10,000
Laboratory Testing : Rs 5,000
Out of warranty repairs : Rs 6,000
Calibration of test equipment : Rs 3,000
Downtime : Rs 6,000
Repair work : Rs 16,000
Systems development : Rs 9,000

Answer:

Appraisal costs:
a. Materials inspection : Rs 6,000
b. Laboratory testing : Rs 5,000
c. Calibration of test equipment : Rs 3,000

TOTAL : 14,000 (12.84% of total quality cost,i.e. Rs 109,000)

Problem 2 (Class Exercise)

Small boxes of NutraFlakes cereal are labeled net weight 10 ounces. Each
hour random samples of size n = 4 boxes are weighed to check process
control. Five hours of observations yielded the following data:

Time Box 1 Box 2 Box 3 Box 4

9 am 9.8 10.4 9.9 10.3

10 am 10.1 10.2 9.9 9.8
11 am 9.9 10.5 10.3 10.1
Noon 9.7 9.8 10.3 10.2
1 pm 9.7 10.1 9.9 9.9

a. Using these data, construct limits for x-bar and R-charts.

b. Is the process in statistical control?
Problem (Class Exercise)

The MRF tyre company wants to monitor the quality of the tyres it
manufactures. Each day the companys quality control manager takes a
sample of 100 tyres, tests them, and determines the number of defective
tyres. The results of the 20 samples have been recorded as follows:

Sample # Defectives Sample # Defectives

1 13 11 21
2 11 12 11
3 12 13 17
4 11 14 22
5 9 15 18
6 6 16 16
7 8 17 18
8 12 18 24
9 15 19 27
10 17 20 28

Construct a p-chart for this process using 2 limits and describe the variation
in the process.
Problem (Class Exercise)

The National Bread Company daily delivers multiple orders by truck from
its regional distribution center to stores in Waymans Supermarket chain.
One measure of its supply chain performance is the number of late
deliveries. The companys goal is to make all deliveries within one day, so a
delivery is late if it exceeds one day. The total number of late deliveries for
each of the past 20 days are as follows:

Day Late Deliveries Day Late Deliveries

1 7 11 6
2 16 12 12
3 14 13 15
4 8 14 10
5 19 15 17
6 12 16 16
7 10 17 14
8 14 18 12
9 8 19 18
10 7 20 20

Construct a c-chart for late deliveries with 3 control limits and indicate if
the delivery process was out of control at any time.
Problem 9 (Class Exercise)

The Munchies Snack Food Company packages potato chips. The net weight
of the chips in each bag is designed to be 9.0 oz, with tolerance of 0.5 oz.
The packaging process results in bags with an average net weight of 8.80 oz
and a standard deviation of 0.12 oz. The company wants to determine if the
process is capable of meeting design specifications. Also check if the
process mean is on or off center. Calculate % defectives.