At the Beginning of the Year, Grant Company Initiated a Quality

question 93

Multiple Choice

At the beginning of the year, Grant Company initiated a quality improvement program. The program was successful in reducing scrap and rework costs. To help assess the impact of the quality improvement program, the following data were collected for the current and preceding years:
$\begin{array}{lrr}&\text { Preceding Year }&\text { Current Year }\\\text { Sales } & £ 3,000,000 & £ 3,000,000 \\\text { Quality training } & 3,000 & 4,500 \\\text { Material inspections } & 7,500 & 12,000 \\\text { Scrap } & 60,000 & 45,000 \\\text { Rework } & 120,000 & 75,000 \\\text { Product inspection } & 15,000 & 30,000 \\\text { Product warranty } & 105,000 & 82,500\end{array}$
-Refer to Figure 21-8. As a result of quality improvements, profits have increased by

• A)£97,500.
• B)£61,500.
• C)£22,500.
• D)£15,000.

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Definitions:

General Motors

A multinational corporation that designs, manufactures, markets, and distributes vehicles and vehicle parts.

Crowdsourcing

The approach of acquiring information, content, or ideas through seeking participation from a vast number of people, mainly from those active in online communities.

Evidence-Based Management

Evidence-Based Management involves making organizational decisions based on the best available scientific evidence, rather than on personal preference or tradition.

Multiple Sources

Involves collecting or receiving information from more than one origin to provide a broader perspective or verify accuracy.