Applying concepts of quality cost managementRodney Nance, the president of Easeley Industr

Applying concepts of quality cost management

Rodney Nance, the president of Easeley Industries, Inc., was beaming when he was reviewing the company’s quality cost report. After he had implemented a quality-control program for three years, the company’s defect rate had declined from 20 percent to 3 percent. Mr. Nance patted Christy Tucker, the production manager, on her back and said. “You have done a great job! I plan to reward you for your hard work. However, I want the defects to disappear completely before I promote you to the position of executive vice president. So, zero-defect is going to be your personal goal for the coming year.” Mrs. Tucker responded wearily, “I’m not sure that’s really a good idea.”

Required

Write a memorandum to the president explaining that zero defect is not a practical policy.