1.

ADDTIONAL 20 MINUTES OF TESTING TO MAKE THEM EASIER TO MANUFACTURE

Negotiating with and training suppliers to obtain higher quality materials and on-time delivery

SAVINGS ON REWORK

SAVINGS ON WARRANTY REPAIR COST

REDISGNING THE SPEAKERS TO MAKE THEM EASIER TO MANUFACTURE

SAVINGS ON INSPECTION OF RAW MATERIALS

SAVINGS ON LOST PROFITS FROM LOST PRODUCTION DUE TO REWORK

SAVINGS ON LOST PRODUCTION FROM LOST SALES DUE TO DISSAPOINTED CUSTOMERS

2.

SHOULD IMPLEMENT OR SHOULD NOT IMPLEMENT

SHOULD SAVE OR WOULD LOSE

Negotiating with and training suppliers to obtain higher-quality materials and Redesigning the speakers to make them easier.to.manufacture. $1,409,000