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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
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The three activities described below were part of the production process in November at Foundry & Bellows, Inc. Describe how each activity creates additional costs and whether it is value-added or non-value-added. If it is non-value-added, identify the associated cost of quality category.
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a.     The Purchasing Department acquired cheaper materials at a big discount but, in order to get the discount, it had to accept delivery of a six-month supply.
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b.     When materials were issued to production, they were found to be of low quality and products required extensive rework. As a result, overtime pay was required for 50 employees.
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c.     The production schedule fell behind because of the additional rework. To meet the production schedule for November, workers were transferred from inspection to direct labor and inspec- tion activities were curtailed.
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