A manufacturing company wants to determine its cost of quality.
(a) Classify each of the costs below as prevention, appraisal, internal failure or external failure.
(b) Total the costs in each category.
(c) Calculate the total cost of quality.
(d) What percentage of quality costs fall in each category?
(e) Represent your result in Pie chart and Pareto
(e) What conclusions do you draw?
Type of Cost
Customer quality survey
Penalty payments to customers – late shipments
Materials and products scrapped
Raw material inspection
Quality training for employees
Losses due to defective products returned by customers
Finished goods inspection
Repairs to defective products before they leave the plant
Quality software and information systems
Overtime labor due to machine downtime
Product repairs under warranty
Recently Asked Questions
- General Electric [ GE ] stock has a long term beta of 1.0 ; so on average if the market goes up by 8 % , the value of GE common stock should :
- Roberto is a furniture salesman for Gerald 's Furniture Mart . Roberto purchases a bedroom suite from Gerald 's for $ 8,000 . The sticker price is $ 11,000 .