John Has Just Been Hired as a Color Separator in a Printing

question 1

Essay

John has just been hired as a color separator in a printing company. John is familiar with many types of separators, but each has its own processes that must be learned. The person doing the hiring assured John that a training program was in place. John's first day at work was a disaster. He was assigned to separator 3 and told to "run it". When he explained to the supervisor that he needed some training to get up to speed on the machine, the supervisor grudgingly asked another employee to spend 15 minutes with John. Wanting to get back to her machine, the other employee gave a quick 5 minute run through and John was on his own. John made many mistakes that first night and production was lost. His supervisor thinks John won't make it through his probationary period. What costs of quality have been incurred?

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Definitions:

Credit Derivatives

Financial instruments that allow parties to manage exposure to credit risk, through vehicles such as credit default swaps (CDS).

CDOs

Collateralized Debt Obligations are complex financial instruments that pool together various cash flow-generating assets and repackages this asset pool into discrete tranches that can be sold to investors.

Credit Crisis

A financial situation characterized by a severe shortage of credit or loans, often resulting in widespread financial and economic instability.

Special Purpose Vehicles

Entities created for a specific financial transaction or to isolate financial risk, used in securitizations and project finance.