Question
Jacobson Fabrication produces laundry machines. Its sales last year were $8,000,000. The following costs were identified as being related to quality: Warranty repairs $62,000 Rework
Jacobson Fabrication produces laundry machines. Its sales last year were $8,000,000. The following costs were identified as being related to quality:
Warranty repairs $62,000
Rework 47,000
Machine repairs 38,000
Warranty replacements 54,000
Inspection 52,000
Supplier evaluation 36,000
Scrap 65,000
Preventive maintenance 49,000
Quality training 23,000
Product testing 80,000
Statistical process control 32,000
Legal fees for product liability claims 83,000
Customer support 36,000
Required:
1. Prepare a Cost of Quality Report for Jacobson for last year.
2. Based on the Cost of Quality Report prepared, what suggestions would you offer to Jacobson to improve its quality?Step by Step Solution
3.46 Rating (166 Votes )
There are 3 Steps involved in it
Step: 1
1 2 Suggestion The company has high exte...
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Step: 2
Step: 3
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Financial Management Theory And Practice
Authors: Eugene Brigham, Michael Ehrhardt, Jerome Gessaroli, Richard Nason
3rd Canadian Edition
017658305X, 978-0176583057
