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TQM- External costs

Forums › Ask CIMA Tutor Forums › Ask CIMA P2 Tutor Forums › TQM- External costs

  • This topic has 8 replies, 3 voices, and was last updated 8 years ago by Cath.
Viewing 9 posts - 1 through 9 (of 9 total)
  • Author
    Posts
  • November 19, 2016 at 8:16 pm #350065
    abz12
    Member
    • Topics: 46
    • Replies: 44
    • ☆☆

    Hi Cath.

    In a TQM environment which is the following is an example of an external failure costs?

    1. cost of repairing products returned from customers – external
    2. cost of customer service section- external
    3. product liability costs- external
    4. cost of providing replacement due to marketing error- not sure.

    Again sorry if I am over complicating things. But if a company have a marketing campaign and start to market a product

    November 23, 2016 at 6:59 am #350818
    Cath
    Participant
    • Topics: 0
    • Replies: 448
    • ☆☆☆

    Hi,

    Any type of quality problems that happen after the customer has received the product will be classed as an external failure cost.

    The marketing error has meant that the product has failed to conform to the customers needs and so the product requires replacement.

    Although the direct cost of the replacement will be paid for by the company – the error has been discovered after the product has reached the customer and so is classed as an external failure. There may also be other costs beyond replacing the item such as loss of goodwill, reputation costs and so on.

    Kind Regards
    Cath

    November 25, 2016 at 3:46 pm #351470
    pp24
    Member
    • Topics: 2
    • Replies: 17
    • ☆

    Hi Cath,

    Please help me to find the right answer to kaplan practice kit question, question is
    RECYC plc and you have to state the contribution using (i) Maximax and (ii) Maximin
    decision criteria.
    The question is too long with too many information to understand it.

    AND

    Also please help me with questions 212 and 213 which is for probability from kaplan kit.

    Thank you

    November 25, 2016 at 8:38 pm #351505
    Cath
    Participant
    • Topics: 0
    • Replies: 448
    • ☆☆☆

    Hi,

    Yes sure Im happy to help you – however, there are 100s of questions in the Kaplan kit and they are not indexed by name – so please could you start a new thread for this question ( so we can keep the questions and answers together that relate to the title of each post) and in the new thread – please can you tell me the question numbers which relate to these three exercises and also a bit more description as to where or why you are stuck.

    Many Thanks
    Cath

    November 26, 2016 at 8:51 am #351560
    pp24
    Member
    • Topics: 2
    • Replies: 17
    • ☆

    Hi Cath,

    The question number is 199 RECYC plc about factory reprocesses waste in order to
    extract good quality aluminium.The factory uses chemical X to extract aluminium
    and it places advance order in three levels- High, Medium or Low.

    This question is from Kaplan practice kit and is very long one so sorry for not giving
    you more info. I find it really hard to understand the whole question.

    The other two questions are also from Kaplan practice kit and they are the last two
    questions in the kit number 212 and 213 about finding probability if random selection
    was made.

    Hope this helps.

    Thank you

    November 26, 2016 at 8:56 am #351561
    pp24
    Member
    • Topics: 2
    • Replies: 17
    • ☆

    Sorry Cath but i forgot to tell you that the questions are for P2 paper.
    Its just that am under some stress as am about to write my P2 & E2
    exam soon.

    Kind regards.

    November 29, 2016 at 10:48 pm #352472
    Cath
    Participant
    • Topics: 0
    • Replies: 448
    • ☆☆☆

    Hi,
    No need to apologise – please dont let the exams stress you too much 🙂

    My genuine advice for the Recyc question is to ignore it. Each question in the objective test is worth the same amount of marks. If you should come across a question which contains such a level of detail – the new ‘exam technique’ for objective test exams is to recognise that question is not worth the marks offered and to flag it to the very end. Otherwise one question will steal your time and may prevent you from answering a number of other questions.

    In terms of the other questions – these are examples of probability rules

    Q212 – relating to the probability of picking a student who is both female and not taking a certificate exam.

    1st) Establish proportion of group which are female:
    There are 100 students – 70 of them are female. So our population is 70 students.

    2nd) Probability of not taking certificate exam. We are told that 55 of the 100 students are taking certificate exams. This leaves 45 in the non-certificate group. We are also told that 6 of these non-certificate are male. So therefore we have 39 girls who are non-certificate students.

    In summary the chance of selecting a girl who is non-certificate is 39/ 70 ( or 0.56)

    In terms of the second question… these are variations on the same method.

    First question asks probability of being from the north and under 25yrs.
    The whole data set is 5200 and the number who are both from the north AND under 25 can be read from first row of column one as 400 – therefore 400/5200 is 0.08 probability of having both these attributes.

    Secondly – the question asks whats the probability of being from the West OR under 25yrs. Again the total data set is 5200
    The groups we are looking at are those from the west which can be totalled horizontally as 1300… and those who are under 25 which is the sum of the first column 1600…but we must exclude those who are BOTH under 25 and from the west – so -400
    Therefore the chance of being from the West or under 25 but not both is (1300+1600 -400) / 5200 which is 2500/5200 =0.48.

    The others are worked out similarly – make sure you check the very back page of the P2 kit where there are further explanations.

    Kind Regards
    Cath

    November 30, 2016 at 3:29 pm #352606
    pp24
    Member
    • Topics: 2
    • Replies: 17
    • ☆

    Many thanks Cath for helping me with this questions.

    December 1, 2016 at 10:49 am #352841
    Cath
    Participant
    • Topics: 0
    • Replies: 448
    • ☆☆☆

    You’re welcome,
    Good luck with the exams…
    Kind Regards
    Cath

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