Question

After focusing for so long on total quality management, mobley industries found that while their product defects decreased by 18%, their product costs increased by 42%. what can they do to bring down their costs?

Answer 1

When mobley industries introduced total quality management, they saw that their defects decreased but their product cost increased.

There are different approaches that can help them to reduce the cost of production.

The first one is by introducing lean production method, this will eliminate wastage and lower product cost

mobley industries can also lower the inventory levels and reduce the cost of storing the product, these methods will reduce cost whilst maintaining quality.

Answer 2

Mobley Industries can do the following to bring down their cost:

1. Implementation of an Enterprise Resource Planning (ERP) system

2. They can focus on corporate social responsibility

3. Implementation of a balanced scorecard approach

4. Use an activity-based costing