Question

a)Classify each of the following costs of quality as either a prevention cost, appraisal cost, internal failure cost or external failure cost. . Heat testing each finished product $40,000/year Yearly maintenance on production equipment $20,000/year Inspection of Raw Materials $10,000/year Warranty Claims $50,000/year Production loss due to machine breakdowns $8,000/year Training Manufacturing Employees $15,000/year Losses of products destroyed in heat test $25,000/year b) Prepare a cost of Quality Report, listing The costs by category and including the percentage of total costs of quality incurred by each cost category. .

Answer 1

Solution a) 1 • Heat desting, cache finished product $40.000 – Appraisal cost • Yeally maintenance on pao-duction equipment $80.00 – Padisention cost Inspection of Rous material $10000 - Appraisal. Cost Warranty claims $5000d – Extemal. Failuse. Cost Peroduction loss due to machine boteakdowns $ 8000 . . Internal failuse Cost . Training manufacturing Enyployees $15.05o – Besention cest • Losses of producte destopyed in heat fest $850m2 – Internal b) Cost of quality Report Quality cost quality cost Berendage op total clasification quality cost Botention $35DDU Appraisal $50000 Tintenal failure $3307 External failure $50000 20.83% 29.76% 19.65 % 29.76% Total $168000 opy. Note- If you liked the answer, please give an up-vote, this will be quite encouraging for me, thank you! YYY