Exam 17: The Management and Control of Quality

One of the key elements of lean accounting is the use of the value stream income statement. Which of the following is not a characteristic of value stream income?

Exhibit 17.3 provides a diagrammatical representation of a comprehensive framework for managing and controlling quality. Discuss, briefly, five elements of this framework.

Which of the following nonfinancial performance indicators would be least applicable in a lean accounting system?

The Bulldog Company incurred the following quality-related costs: Required: 1. Calculate for each of the two years: • Total prevention costs • Total appraisal costs • Total internal failure costs • Total external failure costs 2. Provide two recommendations for improving the disclosure of COQ data for the current data set (i.e., providing more informative disclosures). 3. Based on the data in this exercise, and your solution to Requirement 1, what observations can you offer regarding COQ spending over the two-year period?

Lean manufacturing principles are derived in large part from the Toyota Production System (TPS). Which of the following is not associated with the TPS?

What is the change in total quality cost projected for 2013?

Euromold specializes in manufacturing molded plastic panel to be fitted on car doors. The blueprint specification for the thickness of a high-demand model calls for 0.20625 ± 0.00275 inch. It costs $180 to scrap a part that is outside of the specification. The thickness measure for the unit just completed is 0.20823. Required: 1.Calculate the value of k, the cost coefficient in the Taguchi Quality Loss Function for the above situation. 2. Calculate the estimated amount of quality cost (or loss) for the unit in question, L(x) (where x = 0.20823 inches).