2020	% of Sales	2021	% of Sales
Prevention Costs:
Quality Training for staff	240,000		600,000
Supplier quality certification	900,000		1,800,000
Total	1,140,000	3.17%	2,400,000	6.67%
Appraisal Costs:
Process inspection	60,000		30,000
Incoming material inspection	300,000		240,000
Product inspection	300,000		180,000
Total	660,000	1.83%	450,000	1.25%
Internal Failure Costs:

Re-testing of faulty product	870,000		210,000
Re-inspection of product before shipping	600,000		300,000
Total	1,470,000	4.08%	510,000	1.42%
External Failure Costs:
Product Recalls	1,200,000		600,000
Estimated Lost Sales	1,800,000		1,200,000
Complaint management	930,000		570,000
Total	3,930,000	10.9%	2,370,000	6.58%
TOTAL	7,200,000	20%	6,000,000	16.67%

Table 2 Quality Cost Report

(A) Based on the information in Table 2 and any relevant information from the case,

1. 1. Discuss the concept of quality control and comment on the effectiveness of companys quality control programme. (6 marks)
2. 2. Discuss the comments by Nguyen Thi Huyen and Ali Baba on the quality control issues and state whether you agree with them. (4 marks)