Questions:

1. What arguments will Jeff and Harry make against Walter’s assertion that Loveland competes
only on price? (1 mark)

Ans: Competing on price doesn’t ensure quality initiatives on the products of Loveland
computers. As technology is changing, customers would always look for better quality
expectations instead of price. Better quality will surely come with increase price margin but it
can be made up from the loss incurred by returning and shipping prices.

2. Why would Loveland need less end-of-the-line testing if it adopted quality control
measures? (2 marks)

Ans: Good quality control measures give rise to following points:

a. Adoption of 6 sigma measures in quality control will lead to lesser defective

products that is 3.4 out of a million and remove the need of end-of-line testing of all
the equipment before shipping them out.
b. Decrease in internal and external failure costs which will in turn increase profit
margin.
c. Better quality products will add to the goodwill of the company with respect to their
market-share.

3. Does it matter whether Walter Azko ends up with a better understanding of quality by the
end of lunch ? (2 marks)

Ans: Of course, it will matter for the company’s reputation and decrease liability costs.

a. Since Walter is most of the time busy travelling for official purposes, adopting
quality control measures ease the process flow.
b. Also, it will help Walter choose better raw materials at cheaper rates from the
suppliers.
c. The company could start focussing on process audit, inspection and verification,
trainings and certification and equipment service of the product.