The management believes that the external failure costs are 40 per defective

The management believes that the external failure

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The management believes that the external failure costs are $40 per defective unit. Required: Should the management incur the additional inspection costs? 3. Applying TQM in Manufacturing versus Administration One large company that has been successful in applying total quality management (TQM) principles in manufacturing reports that it has had less success in applying the same techniques in improving administrative functions such as order taking, distribution and human resources. This company (which has won several quality awards and has significantly improved its product quality) used state-of-the-art TQM methods to train all of its employees on how to apply TQM. However, the company has not been able to achieve the same cost
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