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Clason Corp. manufactures radiation-shielding glass panels. Suppose Clason is consider- ing spending the foll lowing amounts on a new TQM program: Strength-testing one item from

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Clason Corp. manufactures radiation-shielding glass panels. Suppose Clason is consider- ing spending the foll lowing amounts on a new TQM program: Strength-testing one item from each batch of panels Training employees in TOM Training suppliers in TOM Identifying preferred suppliers that commit to on-time delivery of perfect quality materials $62,000 $23,000 $34,000 $51,000 Clason expects the new program to save costs through the following: Avoid lost profits from lost sales due to disappointed customers Avoid rework and spoilage Avoid inspection of raw materials $85,000 $66,000 $49,000 .. $25,000 Requirements 1. Classify each item as a prevention cost, an appraisal cost, an internal failure cost, or an external failure cost. Should Clason implement the new quality program? Give your reason. 2

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