Problem Set 2 Flashcards
What are the advantages or disadvantages of licensing as a means of gaining access to foreign markets?
With licensing a firm expands its market and retains earnings made in a foreign market. There may also be existing contacts in a foreign country. Some drawbacks are a product may be considered offensive in a foreign market. The firm also has to share its profits in with a foreign firm if they license instead of just selling it in the foreign country.
How can firms use lean production to improve quality? Is lean production a useful
concept for both service and manufacturing organizations?
Focus of lean production is eliminating waste. JIT (Just in time manufacturing) is comprised of a group of techniques or systems focused on optimizing quality. Reducing waste directly increases quality by Shigeo Shingo’s philosophy.
Describe the concept of line-stop authority. If you were an operator in a production
facility, would you want to have line-stop authority? Why or why not?
Line-stop authority empowers the line worker. Line-stop authority minimizes possibility of quality problems persisting.
Why is it a good idea for workers to inspect their own work?
Workers become their own inspectors, and quality problems will be identified immediately. It is cheaper to solve quality problems at the origin.
Describe the purpose and the intent of the ISO 9000:2008 program. What are the
advantages of becoming an ISO 9000:2008-certified company? Are there any
disadvantages?
ISO - standards to make the development, manufacturing, and supply of products and services more efficient, safer, cleaner. Also makes trade between countries easier. They are useful to industrial and business organizations and make trade between countries easier. Pursuit of ISO is expensive and time consuming as a drawback.
Discuss the concept of prevention cost. Why is prevention cost such a pervasive
consideration in quality programs?
Prevention costs are those costs associated with preventing defects and imperfections from occurring. Some examples are more training, calibration of equipment, and supplier quality assurance.
Examples of appraisal costs described in the Prevention Appraisal Failure (PAF)
Paradigm include all of the following except:[On Cheat Sheet]
Process engineering.
Which of the following statements about failure costs is accurate?
External failure costs are associated with product failure after the production process
There are many mechanisms that firms can use when globalizing. Which of the
following is not a widely-used means of globalization?
Becoming an importer of international goods
