Exam 19: Balanced Scorecard: Quality and Time

Ply Corp manufactures doors. Classify each of the following quality costs as prevention costs, appraisal costs, internal failure costs, or external failure costs. a.Retesting of reworked products b.Downtime due to quality problems c.Analysis of the cause of defects in production d.Depreciation of test equipment e.Warranty repairs f.Lost sales arising from a reputation for poor quality g.Quality circles h.Rework direct manufacturing labor and overhead i.Net cost of spoilage j.Technical support provided to suppliers k.Audits of the effectiveness of the quality system l.Plant utilities in the inspection area m.Reentering data because of keypunch errors ________Prevention costs ________Appraisal costs ________Internal failure costs ________External failure costs

The time from which a machine is setup for order till the product becomes a manufactured good is ________.

A patient had a 1:00 pm appointment with a doctor and leaves the office to go home at 2:00 pm. The patient spends 5 minutes filling out insurance forms, 25 minutes alone in the examination room, and 6 minutes with the nurse and doctor. What is the service cycle efficiency ratio?

Captain Carl's Seascapes produces sea pictures for sale through catalogs. The company has two workstations, photo production and framing. The photo production station is limited by the speed of operating the photo development machine. Framing is limited by the speed of the employees. Framing normally waits for work from photo production. Each department works an eight-hour day. If Captain Carl's Seascapes adds an earlier half shift so that photo production begins work four hours earlier than framing each day, the two departments generally finish their work at about the same time. Not only does this eliminate the bottleneck, but it also increases finished units produced each day by 200 units. All units produced can be sold. The cost of operating the photo production department four more hours each day is $1310. The contribution margin of the finished products is $20 each. What is the change in the daily contribution margin if the change is made?

Without nonfinancial quality measures, ________.

Managers looking to reduce defective units produced at bottleneck operations would most likely be monitoring internal-business-process measures on the balanced scorecard.

Which of the following true of nonfinancial measures of quality?

The tool crib at a large manufacturing company is responsible for providing tools to the factory workers on demand. The tool crib has a variable demand. Historically, its demand has ranged from 300 to 560 small tools per day with an average of 430. Diane, the tool crib attendant, works eight hours a day, five days a week. Each order is for one small tool and each small tool takes Diane 1 minute to retrieve from the bins. What is the average waiting time, in minutes? (Round the final answer to the first decimal place.)

Baby Care Products has just completed a very successful program of improving quality in its manufacturing operations. The next step is to improve the operations of its administrative functions, starting with the accounting information system. As the manager of the accounting operations, you are requested to begin a quality improvement program. Required: What are some possibilities of finding out about the current status of quality in the accounting system?

The time it takes the marketing department to specify to the manufacturing department the exact requirements of the customer's order is referred as ________.

Ventaz Corp manufactures small windows for back yard sheds. Historically, its demand has ranged from 30 to 50 windows per day with an average of 43. Alex is the one production worker and he works eight hours a day, five days a week. Each order is one window and each window takes 5 minutes. What is the average waiting time in minutes?

Which of the following is an advantage of COQ measures?

Costs of Quality (COQ) are classified into four categories: prevention costs, appraisal costs, opportunity costs, and sales costs.

Which of the following is not true regarding balanced scorecard measures?

Dawn and Kim just bought a bed and breakfast inn at a very attractive price. The business had been doing poorly. Before they reopened the inn for business, they attended a seminar on operating a high quality business. Now that they are ready to open the inn, they need some advice on quality costs and management. Required: Identify four categories of quality costs. In addition, identify three items that would be classified in each of the categories.

When manufacturing cycle increases, ________.

Managers identify the relevant costs and benefits for each solution by focusing on ________.

Which of the following describes appraisal costs?

ISO 9000 developed by the International Organization for Standardization is a set of five international standards for quality management.

The tool crib at a large manufacturing company is responsible for providing tools to the factory workers on demand. The tool crib has a variable demand. Historically, its demand has ranged from 340 to 600 small tools per day with an average of 470. Diane, the tool crib attendant, works eight hours a day, five days a week. Each order is for one small tool and each small tool takes Diane 1 minute to retrieve from the bins. What is the cycle time for an order? (Round the final answer to the first decimal place.)