Bon Jour

Topics: Cost, Costs, Lawn mower Pages: 1 (377 words) Published: May 1, 2013
Lawn Mower Quality Defects

Gottlieb Mowers, Inc.
Frankfurt, Germany

Prepared By: Kyle Browder

Based on the information provided to our company with the number of defects, the production per shift, the margin of errors and the goals that Gottlieb Mowers, Inc have set in place for their production staff and the quality manager, our firm has come to some surprising results for your review. It appears that the majority of the defects are occurring during the 3rd shift production. For the entire year, that one shift had over 1,000 more defects than that of the other shifts. The third shifts production was also less than that of the 2nd shift consistently. With that information alone, it would appear that there needs to be increased monitoring of the quality of production during the 3rd shift. In our review of the numbers, the three areas that need to be reviewed by the most common defect by quarters are spark plug missing, noisy, and warning label missing. The spark plug missing appears to the most common defect being the top defect for two quarters, the 1st and 4th quarters respectably. The costs associated with the three defects totaled $3,322.75 for the entire year. These all seem to be small and minor issues, based on the limited severity of the defect. For the year, the most expensive defect was the motor being locked up. That one defect alone came with a defect total of 486 motors. However, the cost associated per motor is $50 per motor. That is a major expense for the company, at a total of $24,300 for that one defect alone. In comparison, the costs to repair the most common defects for the quarters vs the cost of the most expensive per unit. The company should be focused on motors being locked up, based upon the fact that this defect is costing the company a lot of money which is causing lost revenue and profits. Executives can review this information with the attached workbook. The workbook has worksheets for each month, each...
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