121) A machine has been identified as a bottleneck and the source of the constraint for a manufacturing company
that has multiple products and multiple machines. Discuss ways the company can overcome the bottleneck.
122) Carpentaria Language School produces CDs and DVDs to teach English as a Second Language to new migrants.
Carpentaria has just prepared a Cost of Quality Report which shows a decline in prevention costs as a
percentage of total sales over a three-year period. What changes might Carpentaria expect to see in
(i) appraisal costs as a percentage of sales,
(ii) internal failure costs as a percentage of sales, and
(iii) external failure costs as a percentage of sales
given this trend?
123) The Custom Shirt House is concerned about its declining sales, especially the reduction in the number of
customers despite that its shirts have won industry awards for high quality and trend-setting styles. At the
latest executive managers' meeting, everyone was blaming everyone else for the decline. After much discussion
and presenting some fact-finding information, it was determined that sales relationships were the cause of most
of the problems.
Required:
What may be some of the causes and how can the causes be detected if product quality is not an issue?
124) Gosford Corporation experiences several constraints that hinder the effective operation of its manufacturing
process. Identify the methods that Gosford might use to maximise operating profit, and minimise the effect of
the constraints.
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