Given the following cost information for Company XYZ, calculate: a. Total appraisal cost b. Total prevention cost
Question:
Given the following cost information for Company XYZ, calculate:
a. Total appraisal cost
b. Total prevention cost
c. Total cost of internal failures
d. Total cost of external failures
e. Total cost of quality
Cost item Total for the Year
Quality assurance.................................................................... $450,000
Equipment maintenance........................................................ $205,000
Product redesign..................................................................... $310,000
Product warranty and repair................................................. $550,000
Product testing and inspection............................................. $372,000
Training..................................................................................... $250,000
Process improvement/Kaizen................................................ $120,000
Material scrap........................................................................... $230,000
Rework labor............................................................................ $426,000
Incoming materials inspection............................................... $323,000
Customer support (after sale)................................................ $150,000
Travel to suppliers/process certification................................ $ 75,000
Travel to customers/problem solving..................................... $ 80,000
Step by Step Answer:
Managing Operations Across The Supply Chain
ISBN: 9781260547634
4th Edition
Authors: Morgan Swink, Steven Melnyk, Janet L. Hartley, M. Bixby Cooper