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anality Shibata Lawns Inc, manufactures riding lawnmowers. Their customers are home improvement and hardware stores who sell the lawnmowers to home owners. Two of their

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anality Shibata Lawns Inc, manufactures riding lawnmowers. Their customers are home improvement and hardware stores who sell the lawnmowers to home owners. Two of their popular lawnmowers are the Bushhog' and the 'Snapper. The home user living on a large acreage usually buys these mowers because of their low maintenance cost and high safety rating The industrial engineer that has overseen the design and implementation of the manufacturing of these two products would like a quality report on these two products You have gathered the following information for the current year Bushhog Snapper Units manufactured and sold 3100 6.250 Selling price per unit $1,656 $2.208 Variable costs per unit $768 $995 Hours spent on quality design 500 2 800 Testing and inspection hours per unit 0.75 1 Percentage of manufactured units reworked in the plant 9% 3% Rework costs per mower 5420 $250 Percentage of units repaired at customer site 8% 2% Warranty repair costs per mower $460 $410 Estimated lost sales from poor quality (units) 140 Labour rates Design - $85 per hour Testing - $42 per hour Required: a Prepare a cost of quality report for ASC. The report should list all cost items categorized by type of quality cost, including percentages in relation to revenues for each product and category_4 marks) Bushhog Snapper Quality item Quality cost Quality cost Prevention Appraisal Internal failure External failure Total (cootinvedon next page) b. Explain the results to the Industrial Engineer of Shibata Lawns Inc. Provide a recommendation for quality cost improvement

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