Alcazarquivir Lda manufactures and sells industrial grinders. The following table presents financial information pertaining to quality in 2014 and 2015 (in ‚¬000):

Required
1 Classify the cost items in the table into prevention, appraisal, internal failure or external failure categories.
2 Calculate the ratio of each COQ category to sales in 2014 and 2015. Comment on the trends in costs of quality between 2014 and 2015.
3 Give two examples of non-financial quality measures that Alcazarquivir could monitor as part of a total-quality-control effort.

Transcribed Image Text:

2015 2014 Sales Line inspection Scrap Design engineering Cost of returned goods Product-testing equipment Customer support Rework costs Preventive equipment maintenance Product liability claims Incoming materials inspection Breakdown maintenance Product-testing labour Training Warranty repair Supplier evaluation C12 500 10000 110 (00) 145 50 30 135 2) 100 2) 2) 75 120 2010) 300 50