Tuff Tire Company produces low-cost tires that automobile manufacturer put on new cars

1) It would be impossible due to time and money to actually sample every single tire produced, since they produce a very large scale of tires each week. The best bet would be to pull out a random sample of 100 tires from each lot produced. Often, if there is a defect in one tire, then it can be assumed that the entire lot has a defect. It is worthwhile for reputation sake to actually check every lot produced. Granted, some tires might have a defect and it might not come up in the test tire, but this is a reality of business. If you make sure that you actually take a random sample of 30 tires, you can have a 95% significance where you are sure 95% of the time that the sample of 30 tires is representative of the population of the entire set of tires, while there is a 5% chance of error.

2) In addition to end product quality control, the company should implement quality check points through their manufacturing processes. As soon as one process is complete, there should also be a random selection of tires to make sure that these process was conducted without error. This will mean that errors made early on in the process will be caught and corrected, rather then waiting until the very end of the manufacturing process. Perhaps a small error at the beginning will mean that the tires need to be discarded, but if the error was found at the beginning it could be repeated. Implementing a quality control process will save the company money in the long run.