Oswego Paper Company B

1
Oswego Paper Company (B)

• Jorge Lopez
• Joanna Zahn
• Laura Golightly
• Karen Pinkonsly
• Steve Arendt

2
Overview Oswego Paper Company 

• New England based
• Manufacturer of Industrial and
• Consumer Paper Products
• Magazines and Catalogs
• In 1996 this specific product line
• generated about 105 million in sales.

3
Quality and Advantages

• Paperweight
• Print quality
• Timeliness of Delivery
• Defect free
• No Tears
• No Breaks
• No Bursts
• Gives a measure of quality
• Competitive Advantage

4
Cost of Quality Measures

• Prevention
• Machine maintenance
• Employee training
• Research and development
• New-products review
• Inspection
• Supervision
• End-of-line quality inspection
• Free from deficiencies

5
Cost of Quality Measures 

• Internal Failures
• All production costs if paper fails end
• inspection
• Rework
• External Failures
• Customer satisfaction component of quality
• Lost sales due to poor quality
• Opportunity cost (high v. average quality)
• Returns less wrong orders or late
• deliveries

6
Quality Strategy

• Inspection gt Prevention
• Dependent on end-of-the-inspection

7
Quality Related Problems
48 Internal Failures 53 Customer Return
Problems

• Spend 0 on prevention of
• pulping
• bleaching
• stock reparation

responsible for
8
Cost of Quality Reporting

• Method of reporting is Useful
• Identify steps that need improvement
• Can divide the production process further
• Pulping
• Bleaching
• Stock Preparation

9
Recommendation 

• Employ qualified managers for each step
• Responsible for catching failures early
• Compensate managers for achieving
• high-quality results
• Increase the goal congruency between
• Oswego managers and the company

10
Recommendation

• Invest in prevention research in order
• to reduce overall failures
• Reduce costs

11
Conclusion

• Oswego is aware of the usefulness of
• cost of quality reporting
• Room for improvement
• Questions?