HW 5 Ch 5 Ch 19 - CHAPTER 19 BALANCED SCORECARD QUALITY TIME AND THE THEORY OF CONSTRAINTS 19-16(30 min Costs of quality 1 The ratios of each COQ

HW 5 Ch 5 Ch 19 - CHAPTER 19 BALANCED SCORECARD QUALITY...

This preview shows page 1 - 3 out of 10 pages.

CHAPTER 19 BALANCED SCORECARD: QUALITY, TIME, AND THE THEORY OF CONSTRAINTS 19-16 (30 min.) Costs of quality. 1. The ratios of each COQ category to revenues and to total quality costs for each period are as follows: Osborn, Inc.: Semi-Annual Costs of Quality Report (in thousands) 6/30/2012 12/31/2012 6/30/2013 12/31/2013 Actual % of Revenues % of Total Quality Costs Actual % of Revenues % of Total Quality Costs Actual % of Revenues % of Total Quality Costs Actual % of Revenues % of Total Quality Costs (2) = (3) = (5) = (6) = (8) = (9) = (11) = (12) = (1) (1) ÷ $8,220 (1) ÷ $2,096 (4) (4) ÷ $9,180 (4) ÷ $2,168 (7) (7) ÷ $9,260 (7) ÷ $1,641 (10) (10) ÷ $9,050 (10) ÷ $1,211 Prevention costs Machine maintenance $ 480 $ 480 $ 440 $ 290 Supplier training 21 90 45 35 Design reviews 30 218 198 196 Total prevention costs 531 6.5% 25.3% 788 8.6% 36.4% 683 7.4% 41.6% 521 5.8% 43.0% Appraisal costs Incoming inspection 109 124 89 55 Final testing 327 327 302 202 Total appraisal costs 436 5.3% 20.8% 451 4.9% 20.8% 391 4.2% 23.8% 257 2.8% 21.2% Internal failure costs Rework 226 206 166 115 Scrap 127 124 68 65 Total internal failure costs 353 4.3% 16.9% 330 3.6% 15.2% 234 2.5% 14.3% 180 2.0% 14.9% External failure costs Warranty repairs 182 89 70 67 Customer returns 594 510 263 186 Total external failure costs 776 9.4% 37.0% 599 6.5% 27.6% 333 3.6% 20.3% 253 2.8% 20.9% Total quality costs $2,096 25.5% 100.0% $2,168 23.6% 100.0% $1,641 17.7% 100.0% $1,211 13.4% 100.0% Total revenues $8,220 $9,180 $9,260 $9,050 19-1

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture