Chapter 2B - Solution Manual

Chapter 2B - Solution Manual - Chapter 02B Cost of Quality...

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Chapter 02B Cost of Quality Appendix 02B Cost of Quality Exercise 2B-1  (10 minutes) 1. Quality of conformance 2. Quality of conformance 3. Prevention costs, appraisal costs 4. Internal failure costs, external failure costs 5. External failure costs 6. Appraisal costs 7. Prevention costs 8. Internal failure costs 9. External failure costs 10. Prevention costs, appraisal costs 11. Quality circles 12. Quality cost report 2B-1
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Chapter 02B Cost of Quality Exercise 2B-2  (15 minutes) 1. Prevention  Costs Appraisal  Costs Internal  Failure  Costs External  Failure  Costs a. Repairs of goods still  under warranty. ............ X b. Customer returns due to  defects. ......................... X c. Statistical process  control. ......................... X d. Disposal of spoiled  goods. .......................... X e. Maintaining testing  equipment. ................... X Inspecting finished  goods. .......................... X g. Downtime caused by  quality problems X h. Debugging errors in  software. ....................... X Recalls of defective  products. ...................... X Training quality  engineers. .................... X k. Re-entering data due to  typing errors. ................ X Inspecting materials  X 2B-2
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Chapter 02B Cost of Quality received from suppliers 2B-3
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Chapter 02B Cost of Quality m. Audits of the quality  system. ......................... X n. Supervision of testing  personnel. .................... X o. Rework labor. .................. X 2. Prevention costs and appraisal costs are incurred to keep poor quality of conformance from  occurring. Internal and external failure costs are  2B-4
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Chapter 02B Cost of Quality incurred because poor quality of conformance has occurred. Problem 2B-3  (60 minutes) 1. Yedder Enterprises Quality Cost Report (in thousands of dollars) Last Year This Year Amount (000s) Percent of Sales Amount (000s) Percent of Sales Prevention costs: Systems development. ............ $    120 0.13 % $    680 0.68 % Statistical process control —    0.00 % 270 0.27 % Quality engineering. ................       1,080       1.14     %       1,650       1.65     % Total prevention cost. ................       1,200       1.27     %       2,600       2.60     % Appraisal costs: Inspection. ............................... 1,700 1.79 % 2,770 2.77 % Supplies used in testing. ......... 30 0.03 % 40 0.04 %
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Chapter 2B - Solution Manual - Chapter 02B Cost of Quality...

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