Read the following extract ( lines 54–56 and Table 3) before answering
Calculate for 2020 the monthly cost of correcting substandard output.
Was this exam question helpful?
Exam code: 9609
Read the following extract ( lines 54–56 and Table 3) before answering
Calculate for 2020 the monthly cost of correcting substandard output.
How did you do?
Was this exam question helpful?
Define the term 'quality'.
How did you do?
Was this exam question helpful?
Explain one reason why quality is important to a business.
How did you do?
Was this exam question helpful?
Define the term 'quality control'.
How did you do?
Was this exam question helpful?
Explain one drawback to a business of relying on quality control.
How did you do?
Was this exam question helpful?
Define the term 'quality assurance'.
How did you do?
Was this exam question helpful?
Explain one benefit to a business of using quality assurance.
How did you do?
Was this exam question helpful?
Define the term 'Total Quality Management'.
How did you do?
Was this exam question helpful?
Define the term 'benchmarking'.
How did you do?
Was this exam question helpful?
Explain one benefit to a business of benchmarking.
How did you do?
Was this exam question helpful?
Read the following extract (opens in a new tab)before answering
Analyse two benefits to WP of using quality assurance.
How did you do?
Was this exam question helpful?
Ardley
Ardley manufactures cycle helmets in country M, selling through independent bicycle retailers. Helmets must pass a national safety standard before sale.
In 2024 a batch failed an independent safety test after release, and Ardley recalled 12 000 helmets.
Table 1: Ardley selected data
2023 | 2025 | |
Units sold (000) | 340 | 268 |
Cost of recalls and warranty claims ($000) | 60 | 890 |
Retailers stocking Ardley helmets | 210 | 154 |
Average selling price ($) | 42 | 36 |
The Marketing Director, Priya Sandhu, wants to spend $1.2m on advertising to rebuild sales.
The Operations Director, Tom Vasquez, disagrees. He argues the money should go into quality systems first, since a second recall involving a safety product would finish the business.
Analyse two ways in which poor quality has affected Ardley.
How did you do?
Was this exam question helpful?
Kettleworth Catering
Kettleworth Catering manufactures commercial ovens in country F. Every oven is inspected at the end of the production line by a team of six inspectors. Ovens failing inspection are either reworked or scrapped.
Table 1: Kettleworth Catering monthly production data
Per month | |
Ovens produced | 900 |
Ovens failing final inspection | 74 |
Of which scrapped | 21 |
Of which reworked | 53 |
Average cost to produce one oven ($) | 1 850 |
Average cost to rework one oven ($) | 640 |
Inspectors employed | 6 |
The Production Manager, Elif Demir, notes that most faults are traced to a wiring stage roughly halfway through assembly.
The Managing Director, Ross Kinnear, is reluctant to change a system that he says stops any faulty oven reaching a customer.
Analyse two drawbacks to Kettleworth Catering of relying on quality control.
How did you do?
Was this exam question helpful?
Denby Health
Denby Health manufactures veterinary medicines in country R. Quality is currently checked by a separate quality department; production employees have no responsibility for quality and receive almost no quality training.
Table 1: Denby Health selected data
Current | |
Employees | 240 |
Batches rejected by the regulator (%) | 4.1 |
Cost of one rejected batch ($) | 55 000 |
Employee suggestions adopted last year | 3 |
Training days per employee per year | 1.5 |
Denby Health is considering introducing Total Quality Management. Doing so would require six training days per employee and is expected to take two years to embed fully.
The Finance Director, Amara Nwosu, questions whether the cost and disruption can be justified.
The Operations Director, Piet Janssen, points to the rejected batches and argues that nobody on the production floor currently regards quality as their concern.
Analyse two ways in which introducing Total Quality Management could benefit Denby Health.
How did you do?
Was this exam question helpful?
Ravenscroft Flooring
Ravenscroft Flooring manufactures laminate flooring in country B. Its managers have compared its performance against the best-performing manufacturer in the industry.
Table 1: Ravenscroft Flooring compared with the industry's best performer
Ravenscroft | Industry best | |
Defect rate (%) | 6.2 | 1.4 |
Time to change production between products (minutes) | 95 | 22 |
Output per employee per shift (m2) | 310 | 480 |
Training days per employee per year | 2 | 9 |
The industry's best performer carries out changeovers using a standardised written procedure, and trains every operator to perform it rather than relying on a small number of specialists.
The Operations Director, Mei Tan, believes the gap can be closed. The Finance Director, Hal Brennan, is sceptical that a competitor's methods will transfer to Ravenscroft Flooring's older machinery.
Analyse two benefits to Ravenscroft Flooring of benchmarking its performance against the industry's best performer.
How did you do?
Was this exam question helpful?
Refer the following extract (opens in a new tab) before answering
Evaluate whether total quality management (TQM) is sufficient to solve FF’s production problems.
How did you do?
Was this exam question helpful?
Read the following extract before answering
Recommend ways in which Paulo might solve the current quality problems in some PAC restaurants. Justify your recommendation.
How did you do?
Was this exam question helpful?
Redhaven
Redhaven manufactures corrugated boxes in country J for food producers and online retailers. Quality is currently checked by nine inspectors at the end of the production line.
Table 1: Redhaven selected data
| Current |
Boxes produced per week (000) | 620 |
Defect rate at final inspection (%) | 5.8 |
Inspectors employed | 9 |
Annual cost of inspection team ($) | 315 000 |
Annual cost of scrapped and reworked output ($) | 740 000 |
Training days per employee per year | 1 |
Employee turnover (%) | 31 |
Switching to quality assurance would mean training all 180 production employees, at a cost of around $260 000 in the first year, and would take about twelve months to embed. Quality would become each operator's responsibility and the inspection team would reduce from nine to two.
The Operations Director, Nadia Farouk, argues that the present system finds faults but never prevents them, and that Redhaven is paying over $1m a year for the privilege.
The HR Director, Colm Byrne, is doubtful. Employee turnover is 31%, so roughly a third of those trained this year will have left within twelve months. Staff receive one training day a year and have never been asked to take responsibility for quality.
Evaluate whether Redhaven should replace its quality control system with quality assurance.
How did you do?
Was this exam question helpful?