Analyze the cost data to reveal any problems in the system. The data come from a chemical plant with annual sales of $100 million. The operating budget (manufacturing cost) is $34 million. Analyze the data, and draw conclusions about the current health of the quality system, the remarks in parentheses are meant to explain the nature of some of the expenditures, which otherwise may not be readily apparent.

Quality Cost Chemical Plant		$/Month
1	Quality Planning	70
2	vendor qualification(supplier certification)	7150
3	Acceptance inspection and test planning (planning for inspection)	100
4	process equipment	370
5	Quality task teams(special projects related to quality)	1940
6	Turnaround planning - Equipment(quality-related scheduled maintenace)	330
7	Turnnaround planning - Instruments (quality-related scheduled maintenace	650
8	Quality profiling (determined product specs to meet customer needs)	1000
9	Quality statistics (collection of data and analysis)	420
10	Planning quality motivational programs	170
11	Production engineers on quality	70
12	Process control engineering -QA departments	27050
13	Process control engineering - Engineering departments	12500
14	Systems conformance (audit to verify system's conformance)	70
15	Design/development of quality measurement/control equipment Engineering department QA department	740
16	Quality training	1050
17	Raw material acceptance testing	3345
18	Process testing - Operators	13300
19	Review production analysis data	530
20	Environment testing (as it relates to product quality)	70
21	QA in no. 1, no 2, lot analysis, instrument calibration, and aging checks	61313
22	Off-grade burned	3300
23	Off-grade blended off labor	210
24	Off -grade storage with ineterest	3200
25	Reprocessing/sold at reduce cost	5300
26	Partial credit issued -Customer kept product	760
27	Bulk returns	2750
28	Packaged returns	3500
29	Returns to other locations	420