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Cleary, Inc. manufactures door panels. Suppose Cleary is considering spending the following amounts on a new total quality management (TQM) program: (Click the icon to
Cleary, Inc. manufactures door panels. Suppose Cleary is considering spending the following amounts on a new total quality management (TQM) program: (Click the icon to view the information.) Cleary expects the new program would save costs through the following: (Click the icon to view the information.) Read the requirements Requirement 1. Classify each cost as a prevention cost, an appraisal cost, an internal failure cost, or an external failure cost. x Data Table Type of Quality Cost Appraisal Prevention Prevention $ 63.000 Cost Strength-testing one item from each batch of panels Training employees in TQM Training suppliers in TQM Identifying suppliers who commit to on-time delivery of perfect-quality materials Lost profits from lost sales due to disappointed customers Rework and spoilage Inspection of raw materials Warranty costs Prevention Strength-testing one item from each batch of panels Training employees in TQM Training suppliers in TQM Identifying suppliers who commit to on-time delivery of perfect-quality materials 24,000 37,000 External failure Internal failure 59,000 Appraisal External failure Print Done Requirement 2. Should Cleary implement the new quality program? Give your reason. Cleary less should implement the new quality program. The cost of implementing the new program is than the costs of failing to implement the new program. Data Table - X $ 92.000 Avoid lost profits from lost sales due to disappointed customers Avoid rework and spoilage Avoid inspection of raw materials Avoid warranty costs 64,000 53,000 15,000 Print Done
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