1. Would you like to have a higher or lower break-even point? Why? 2. How could
ID: 351734 • Letter: 1
Question
1. Would you like to have a higher or lower break-even point? Why?
2. How could you lower the break-even point? Describe the three key strategies. Which one seems your favorite? Why?
3. Describe three key risks to outsourcing your production to China.
4 Why did UTC/Carrier attempt to move its Indiana production to Mexico? Trump attacked UTC/Carrier. UTC decided to stay in Indiana. What do you expect from the Indiana State production? Are they going to keep the same employment?
5. Trump Administration attempts to impose more tariff on the imports such as steel, electronics, etc. What will be the effect of such economic policy? What will happen to the American consumers? What will happen to the U.S. economy in general?
6. Is a free trade agreement (FTA) good or bad for the U.S. economy? What is the effect of NAFTA?
8. Does the organizational productivity (= efficiency) always go along with the effectiveness?
9. Who defines “quality”? Why?
10. Why does TQM quantify quality?
11. Why doesn’t “quality control” improve quality? Why is “quality improvement” better than “quality control”? Explain how "process control" is different from "product control" briefly.
12. Explain why we call "Total" in TQM.
13. Explain what the practical meaning of “3-sigma” in TQM is in business briefly.
14. Explain why the entire organization including top management & shareholders (owner) must be committed if TQM is successfully implemented.
15. Explain why TQM is a long-term project that requires tremendous cost.
16. TQM means “continuous improvement - never ending process.” Why is TQM a never-ending process?
17. Why did Toyota lose the 6-sigma reputation in 2000s?
18. What is the relationship b/w quality & profitability?
19. Explain the major difference between TQM and BPR (business process re-engineering/re-design) or Change Management.
20. Discuss the major difference between the traditional quality control and the modern SPC.
21. Discuss how the production process can be achieved to be in control, using a control chart.
22. Explain how the continuous improvement can be implemented, using a control chart.
23. Discuss the major differences among X-bar, R, P, C charts.
24. Explain how you can make a production process become statistically “in control.” Explain the four steps in SPC that we discussed in class.
Explanation / Answer
1. Break-even point represents the threshold beyond which an operation/business becomes profitable. And so, a lower break-even point is better than a higher break-even point.
Businesses are driven by profitability. The key metric that determines the success of a business. Often, reaching profitability is a difficult task. This is specifically true where operating margins are small and capital expenditures are high. However, profitability indicates the sustainability of business. In addition, other key metrics such P/E ratio, cash flow, P/B ratio etc. are all impacted by a company’s profitability. Hence the sooner an organization reaches profitable stage, the sooner the company’s overall health improves. This is why it is important to lower the break-event point.
2. In order to lower break-even point we need to understand the factors that causes mobility in the break-even point. The key factors are revenue, cost and volume of business. There are various ways to lower break-even point. Some of them are
Among the three, increasing the sales volume is my favorite. The reason behind this is, the other two options often have hidden negative consequences. Increase in pricing and cost reduction can have many negative impact on the business. Increase in sales volume through various strategies on the other hand is a move towards positive direction.
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