The reject rates all the company’s footwear plants are a function of the size of the incentive payment per non-defective pair produced, spending for best practices training, spending for TQM/ Six Sigma quality control efforts, the number of models/styles comprising the company’s product line, and the installation of plant upgrade option A.
The factors that influence the reject rates include the percentage use of superior materials; a company’s cumulative spending for TQM/ Six Sigma quality control programs; the use of the best practices training; and expenditures for new styling/features per model.
Nowadays according to industrialization and automation, the manufacturing is the engine of economic growth. In manufacturing, it is vital to produce high-quality products for consumers, but in reality, the fabrication can be suspended because of technical bugs or organizational misdeeds. The reject rate is an index which identifies the percentage of parts that are rejected, for a particular period.
The reject rates of all the company's footwear plants are related to different indicators like spending for best technologies and spending for both TQM (total quality management) and Six Sigma control efforts. The influence of these factors is evident: if you implement the best technologies for producing the product, you would probably have less reject part percentage. The consumerism era emphasizes the need to invest in the product extension strategies and new innovative solutions in the organization manufacturing process. These both factors also have an impact on the reject rate.
The use of superior materials can also affect the changes of the reject rate. The more reliable materials you use in the fabrication, the lower chance of product's defect. Thus, you offer better goods for the consumers.