Carl Clarkson and Lenny Lenid Have Been Assigned to Review

question 78

Essay

Carl Clarkson and Lenny Lenid have been assigned to review the costs of quality at the Sprotton Chemicals Ltd. for the month of September. All amounts are in thousands (000's).
Some information from a competitor, Sheltonville Industries, has been leaked. You learn that Sheltonville's costs of quality (as a percentage of total costs of quality) is 15% on external failure, 20% on internal failure, 35% on appraisal and the rest on prevention.
Required:
a. Prepare a cost of quality report for September for the Sprotton Chemicals including calculations of each cost category as a percentage of total costs of quality.
b. Compare Sprotton's approach to quality management to Sheltonville's. Comment on your findings. (What are the implications of the differences?)

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Definitions:

Core Employees

The essential, typically permanent, workforce critical to the operation and success of an organization.

Company Strategy

A planned set of actions that a company intends to undertake to achieve its organizational goals and improve its competitive position.

Strategic Knowledge Workers

Employees who possess specialized knowledge, skills, and abilities critical to the strategic direction and success of an organization.

Company's Strategy

A company's strategy is a carefully crafted plan of actions and decisions that helps a business achieve its long-term objectives and gain competitive advantage.