Hi guys.. sorry for the sudden change in plan, I forgot to leave the practice set and bring home
the copy of the true or false questions. Kaya wala na ung t/f activity ninyo. Try solving the rest
of this practice set. I highlighted the problems we were not able to answer.
MAS PRACTICE SET
PROBLEM 1
Gagnon Company's quality cost report is to be based on the following data:
Maintenance of test equipment .......................................
Test and inspection of incoming materials .....................
Systems development .....................................................
Product recalls ................................................................
Quality training ...............................................................
Disposal of defective products........................................
Supervision of testing and inspection activities..............
Warranty repairs and replacements ................................
Net cost of scrap .............................................................
$18,000
$73,000
$29,000
$91,000
$25,000
$55,000
$24,000
$58,000
$23,000
Required:
Prepare a Quality Cost Report in good form with separate sections for prevention costs,
appraisal costs, internal failure costs, and external failure costs.
PROBLEM 2
Gagnet Company's quality cost report is to be based on the following data:
Liability arising from defective products ........................
Final product testing and inspection ...............................
Returns arising from quality problems ............................
Technical support provided to suppliers .........................
Disposal of defective products ........................................
Maintenance of test equipment .......................................
Systems development ......................................................
Depreciation of test equipment .......................................
Debugging software errors ..............................................
$82,000
$40,000
$24,000
$52,000
$98,000
$53,000
$67,000
$11,000
$87,000
Required:
Prepare a Quality Cost Report in good form with separate sections for prevention costs,
appraisal costs, internal failure costs, and external failure costs.
The QRT Company collected the following information (in days):
PROBLEM 3 - What is the manufacturing cycle efficiency?
PROBLEM 4 - What is the manufacturing cycle time?
The Cascade Machining Co has the following information for last year
PROBLEM 5 - The partial productivity for metal is ?
PROBLEM 6 - The partial productivity for labor is ?
PROBLEM 7
Toimi Toolworks Co. has provided the following information for last year:
The total factor productivity measure is:
PROBLEM 8
The ABC Manufacturing Company collected the following information (in days) for April and
May.
Required:
a. Calculate the manufacturing cycle efficiency for April and May.
b. Calculate the processing time required for May so that May's manufacturing cycle efficiency
is equal to April's manufacturing cycle efficiency.
PROBLEM 9
The XYZ Manufacturing Company collected the following information (in days) for July and
August.
Required:
a. Calculate the manufacturing cycle efficiency for July and August.
b. Assume September's processing time will be the same as August's. If XYZ's target for
manufacturing cycle efficiency is 65%, what will September's target for manufacturing cycle
time be?
PROBLEM 10
Schroeder Forging Co. has provided the following information for last year:
Required: Calculate the partial productivity for:
a. Metal
b. Labor
PROBLEM 11
Schroeder Forging Co. has provided the following information for last year:
Required:
a. Calculate the total factor productivity measure.
PROBLEM 1
Answer:
Prevention costs
Systems development ...................................................
Quality training ............................................................
Total ................................................................................
Appraisal costs
Test and inspection of incoming materials ..................
Supervision of testing and inspection activities ...........
Maintenance of test equipment ....................................
Total ................................................................................
Internal failure costs
Disposal of defective products .....................................
Net cost of scrap ...........................................................
Total ................................................................................
External failure costs
Warranty repairs and replacements ..............................
Product recalls ..............................................................
Total ................................................................................
Total quality cost .............................................................
PROBLEM 2
Answer:
Prevention costs
Technical support provided to suppliers ......
Systems development ...................................
Total ................................................................
Appraisal costs
Depreciation of test equipment ....................
Maintenance of test equipment ....................
Final product testing and inspection ............
Total ................................................................
Internal failure costs
Debugging software errors ...........................
$ 52,000
67,000
119,000
11,000
53,000
40,000
104,000
87,000
$ 29,000
25,000
54,000
73,000
24,000
18,000
115,000
55,000
23,000
78,000
58,000
91,000
149,000
$396,000
Disposal of defective products .....................
Total ................................................................
External failure costs
Liability arising from defective products .....
Returns arising from quality problems ........
Total ................................................................
Total quality cost .............................................
98,000
185,000
82,000
24,000
106,000
$514,000
PROBLEM 3
28.0/(4.0 + 28.0 + 1.5 + 6.0) = 28.0/39.5 = 70.9%
PROBLEM 4
4.0 + 28.0 + 1.5 + 6.0 = 39.5 days
PROBLEM 5
6,000/150,000 = 0.040
PROBLEM 6
6,000/12,000 = 0.500
PROBLEM 7
Value of output: 16,000  $75 = $1,200,000;
Value of input: (20,000  $15) + (15,000  $30) + $225,000 = $975,000; $1,200,000/$975,000 =
1.231
PROBLEM 8
a. April: 57.1%; May: 64.5%
b. 11.7 days
Feedback: a. April: [14.0/(2.0 + 14.0 + .5 + 8.0)] = 57.1%
May: [16.0/(3.0 + 16.0 + .8 + 5.0)] = 64.5%
b. [x/(3.0 +  + .8 + 5.0)] = .57143;  = 11.7
PROBLEM 9
a. July: 64.2%; August: 61.6%
b. 27.69 days
Feedback: a. July: [17.0/(2.0 + 17.0 + .5 + 7.0)] = 64.2%
August: [18.0/(3.0 + 18.0 + 1.2 + 7.0)] = 61.6%
b. 18.0/x = .65;  = 27.69 days
PROBLEM 10
a. .714
b. 2 tons/hr
Feedback: a. 10,000 tons output/14,000 tons input = .714
b. 10,000 tons/5,000 hours = 2 tons/hr
PROBLEM 11
a. 1.446
Feedback: Value of output: 10,000  $60 = $600,000; Value of input: (14,000  $10) + (5,000 
$30) + $125,000 = $415,000; $600,000/$415,000 = 1.446