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Taguchi also expanded the focus of quality cost analysis and shifted his emphasis to improving production methods and service. As well as quality control in production, quality control was necessary in product planning and design, process design, and production services after purchase. Taguchi's quality loss function was designed to measure the success or failure of quality control in an absolute fashion, over the entire lifecycle of the item (Taguchi, 2010, Business Dictionary).
Question 2: What factors contribute to a manager's decision to recall a manufactured product? Support your answers with specific examples. How can managers within a service organization improve sales and control costs when utilizing the Taguchi quality control method? Give examples.
First and foremost, the question of product safety must be on the minds of managers when making the decision to recall a manufactured product: a product that has a defect in its design (such as an SUV that may easily 'roll over' and harm a passenger) or is contaminated (such as a batch of peanut butter containing salmonella) are examples of potentially dangerous products. There are other, more gray areas, however: an example might be a stroller that could, if improperly used, injure a child or a snack cake that may contain nuts (but is not labeled as such) and could be dangerous to people with nut allergies. In these instances, the company may instead release a warning rather than a full recall. Warnings may also be used if a product is harmless, but for some reason deviates from the company's usual quality specifications, such as a batch of candies with slightly...
This can severely hamper future sales for the manufacturer, as well as cause public relations damage. A thorough audit of all aspects of the production process, from design to manufacturing to customer service, ensures that the most thorough quality control audit possible is performed. For example, a car may be poorly designed and thus unsafe, a new kind of M&M candy may be optimal in terms of design and flavor but may need a more effective production process to reduce defects in packaging. Both are quality control problems, but require very different types of solutions.
References
Cost variance (CV). (2010). Project Management Knowledge: Definitions. Retrieved April 17,
2010 at http://www.project-management-knowledge.com/definitions/c/cost-variance-cv/
Kaner, Cem. (1996). Quality cost analysis: Benefits and risks. Quality Control Handbook.
Retrieved April 17, 2010 at http://www.kaner.com/qualcost.htm
Standard costing. (2010). Accounting coach. Retrieved April 17, 2010 at http://www.accountingcoach.com/online-accounting-course/30Xpg03.html#direct-labor
Taguchi method of quality control. (2010). Business dictionary. Retrieved April 17, 2010 at http://www.allbusiness.com/glossaries/taguchi-method-quality-control/4942170-1.html
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" (Thomas, Hutcheson, Porterfield, and Pierannunzi, 1994) Summary and Conclusion It is clear that employee turnover is very costly to organizations and as noted in the introduction of this study employee turnover rates are as high as 23.4% in some industries, which demonstrates a very large financial cost to these organizations. As demonstrated by this report the costs associated with employee turnover are costs both of the direct and indirect nature. Costs