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1) Read the case, Wainwright Industries: an Entirely New Philosophy of Business Based on Customer Satisfaction and Quality, (pages 79 and 80 in the text)

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1) Read the case, "Wainwright Industries: an Entirely New Philosophy of Business Based on Customer Satisfaction and Quality," (pages 79 and 80 in the text) and answer the discussion questions that follow the case. Note: As a rough guideline, please keep your answers to a couple of paragraphs or so for each of the questions. 2) TVS Logistics North American's distribution center receives and breaks down bulk orders that come in from various suppliers' manufacturing facilities and ships out the products to retail customers. The firm's quality costs incurred in 2021 is given below. a) Classify the various quality costs into the different quality cost categories (prevention, appraisal, internal failure, external failure). | b) Calculate the total costs in each of the different quality cost categories (prevention, appraisal, internal failure, external failure). c) Analyze the costs and suggest which areas the firm should address first in an effort to improve their quality. Cost Elements Amount Checking outbound boxes for errors $607,760 Quality planning $10,625 Downtime due to conveyor/computer problems $342,125 Packaging waste $68,000 Incoming product inspection $51,000 Customer complaint rework $34,000 Correcting erroneous orders before shipping $36,560 Quality training of associates $25,925 Scrap generated due to customer returns $35,000 Quality improvement projects $17,435 Other production waste $36,125 Correction of typographical errors-pick tickets $11,475

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