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Adobe Acrobat Voice Editor The costs of quality at CanAm Construction Ltd. for the current year are as follows: Cost Item Amount Raw materials
Adobe Acrobat Voice Editor The costs of quality at CanAm Construction Ltd. for the current year are as follows: Cost Item Amount Raw materials inspection $17,500 Rework 89,000 Employee training 36,000 Lost contracts from dissatisfied customers 15,000 Quality Engineering 45,000 Supplies used in testing new materials 2,600 Post construction inspection 62,000 Payments on lawsuits from product failures 40,000 26,000 $333,100 Building inspector fees Total Some information from a competitor, Canada Wide Construction (CWC), has been provided. CWC's costs of quality (as a percentage of total costs of quality) are 30% on external failure, 35% on internal failure, 20% on appraisal and the rest on prevention. Required: a. Prepare a cost of quality report for the year including calculations of each cost category as a percentage of total costs of quality. (10 marks) b. Compare CanAm's approach to quality management to CWC's. Comment on your findings. (What are the implications of the differences?) (10 marks)
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