Problem: Leather Skins PTY Ltd produces expensive shoes. The company implemented a total quality management system in 2003 and has maintained quality-related cost information for the following periods.
|
1999 |
2000 |
2001 |
2002 |
2003 |
2004 |
2005 |
2006 |
|
Quality costs ($000s) |
| Prevention |
3.2 |
10.7 |
28.3 |
42.6 |
50 |
51.2 |
53.4 |
54.8 |
| Inspection |
26.3 |
29.2 |
30.6 |
24.1 |
19.6 |
19.6 |
18.4 |
18.7 |
| External Failure |
39.1 |
51.3 |
48.4 |
35.9 |
32.1 |
31.8 |
33 |
32.8 |
| Internal failure |
118.6 |
110.5 |
105.2 |
91.3 |
65.2 |
72.1 |
78.4 |
79.4 |
|
|
|
|
|
|
|
|
|
| TOTAL |
187.2 |
201.7 |
212.5 |
193.9 |
166.9 |
174.7 |
183.2 |
185.7 |
|
|
|
|
|
|
|
|
|
| Other data |
|
1999 |
2000 |
2001 |
2002 |
2003 |
2004 |
2005 |
2006 |
| Sales $ |
2700.6 |
2690.1 |
2705.3 |
2810.2 |
2880.7 |
2975.2 |
3122.8 |
3317.7 |
| Manuf Costs |
420.9 |
423.4 |
424.7 |
436.1 |
435.5 |
447.5 |
458.4 |
470.6 |
Question 1: Analyse the data using the following quality management methods:
(i) Statistical Process Control Chart
(ii) One other suitable method of own choice
Question 2: What is the effectiveness of the new quality control measures implemented?