Question

Buton Karen Betten Po evaluating Kitchens in her the company's of performance theon data for al manager of Heavenly Pies, the performance of four regions In acordance with costs of quality standards the hour locations provided the past six months. Aspen Basalt Frisco Dillen - 1,800,000 Prevention 32,000 Appraisal 42,000 Jaternal Failure 24,000 Exctonal Failure 33,000 Tohal 131,000 1,500,000 48,000 82,000 21,000 16,000 117,000 1,400,000 16,000 18,000 42,000 1,200,000 10,000 25,000 30,000 25,000 logooo 121,000 Required: For each location, compute the percentage of Baleo represented by prevention Cools, appraisal Teosto total lost of conformance internal failure loots, external failure costo total leoots of nontorformance and total costs of quality carry hoo answer to hoo ducinal. plaus (Gmikol

Answer 1

Cost of Conformance: It is the cost incurred during the project to avoid the failures and to ensure the quality.

Computation of various cost as a percentage of sales: (Amount ($) Aspen Basalt Particulars Frisco Dillon S. No. 1,500,000 Sales 1,400,000 А 1,800,000 1,200,000 Prevention Cost 32,000 48,000 20,000 16,000 1.78% 1.67% Prevention Cost as a percentage of sales (B/A) 3.20% 1.14% Appraisal Cost Appraisal Cost as a percentage of sales (C/A) 42,000 32,000 25,000 2,08% C 18,000 2,33% 2.13% 1,29% Total Cost of confermance (B+C) Total Cost of conformance as a percentage of sales (D/A) 74,000 80,000 34,000 45,000 4,11% 2.43% 3.75% 5.33% Internal Failure Cost E 24,000 21,000 42,000 30,000 Internal Failure Cost as a percentage of sales (E/A) 1.40% 1.33% 3.00% 2.50% External Failure Cost External Failure Cost as a percentage of sales (F/A) 16,000 F 33,000 45,000 25,000 3.21% 2.08% 1.83% 1.07% Total cost of Non conformance (E+F) 57,000 37,000 87,000 G 55,000 2.47% 3.17% 6.21 % 4.58% Total cost of Non conformance as a percentage of sales (G/A) Total Cost of Quality (D+G) 117,000 Н 131,000 121,000 100,000 8.33% Total Cost of Quality as a percentage of sales (H/A) 7.28% 7.80% 8.64%

Cost of Non Conformance: It is the cost incurred to from failure to meet the required quality.

Cost of Quality = Cost of Conformance + Cost of Non Conformance

Please find below image to show various cost as a percentage of sales: