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A cost of quality report has been prepared for the six months, grouping each quality cost into one of the four quality cost categories.
A cost of quality report has been prepared for the six months, grouping each quality cost into one of the four quality cost categories. Calculate the total cost of each quality for each cost of quality category [e.g., Prevention is one category]. Write your answers in the above table {which can be copied into your assignment} You will need to add more columns. Calculate the cost of quality as: (a) a percentage of Total Quality Costs for each cost item and for each category (b) a percentage of Manufacturing Costs for each cost item and each category. (c) a percentage of Total Sale Revenue for each cost item and each category. 6 marks Prepare a histogram (using Excel) for each of the four categories using the "percentage of Manufacturing Costs" for each of the four cost category information you calculated in requirement 1. 1 mark Analyse the shape of the curve that joins the four categories. Does this shape reflect the desired shape of the curve according to "Zero-Defects" strategic model? If not, then briefly explain how the cost for the four categories under the desired curve should work to reduce quality costs over time 3 mark Following on from your answer for requirement 3, which cost category is the most important category to invest in, and why, so that the quality of the bikes can be improved, and so that quality costs can be reduced over time? 3 mark Suggest an additional cost activity that could be added into this most important category (you identified in requirement 4) to help the company work towards. Use the "Zero-Defects" strategic model and briefly explain how this additional cost activity would work to help reduce other quality costs over time 3 mark
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