What costs of quality did the provider of the product incur

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1. An American company is beating the odds against foreign competition. During the past 8 years, the company has averaged 8% compounded growth. The company chairman and CEO credits their competitiveness with their focus on providing zero defect quality.

Though the company relies primarily on preventive quality measures such as non-faulty systems, employee training, and design for quality, they do inspect a randomly selected group of axles each day as a quality measure.

They ship 4.600 axles a day ($1,175 worth of components in each vehicle). This steady stream of production has a defect rate of 0.01 %. Calculate the probability that 0 defects will be found in a sample of 160.

1751_What costs of quality.png

2. As container ships get ready to leave to begin their careers on the high seas, a final inspection is held in order to create a list containing defects that need to be corrected before the ship can put to sea. The following information and chart is data for these final inspections. Each sample represents one ship (n = 1). Create a c chart.

• What is the UCL?
• What is the LCL?
• What is c bar?

3. Describe a situation where you, as the customer, did not receive the product or service you expected. What costs of quality did you, as the customer, incur? What costs of quality did the provider of the product or service incur?

Reference no: EM13663111

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