For the last five years, a firm has measured (in euros) the following quality costs by categories:

a. Given these costs, is it likely that the company’s defective rate has gone up or down? Explain.

b. If these figures reflect all the relevant quality costs, have the increased costs of prevention and appraisal yielded a net benefit to the company?

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Category 2011 2012 2013 2014 2015 Prevention 5,000 6,000 7,000 8,000 9,000 Appraisal 5,000 5,000 6,000 7,000 8,000 Internal failure 9,000 9,000 7,000 5,000 3,000 External failure 9,000 8,000 7,000 6,000 5,000