Sinclair Corp. manufactures radiation-shielding glass panels. Suppose Sinclair is considering spending the following amounts on a new TQM program:

Sinclair expects the new program to save costs through the following:

Requirements:

1. Classify each item as a prevention cost, an appraisal cost, an internal failure cost, or an external failure cost.
2. Should Sinclair implement the new quality program? Give your reason.

Transcribed Image Text:

Strength-testing one item from each batch of panels. $63,000 Training employees in TQM $27,000 Training suppliers in TQM. $39,000 Identifying preferred suppliers that commit to on-time delivery of perfect quality materials $52,000