Question
Cost of Quality: Cost Element Amount Proofreading $800,000 Quality planning 15,000 Press downtime due to system failure 300,000 Bindery waste due to process failure 80,000
Cost of Quality:
Cost Element | Amount |
Proofreading | $800,000 |
Quality planning | 15,000 |
Press downtime due to system failure | 300,000 |
Bindery waste due to process failure | 80,000 |
Checking & inspection | 55,000 |
Customer complaint remakes | 30,000 |
Printing plate revisions due to process failure | 40,000 |
Quality improvement projects | 25,000 |
Other waste due to system failure | 60,000 |
Correction of typo errors | 250,000 |
a. Allocate the above items into the proper Cost of Quality categories.
b. Determine the total in each category and the overall total cost.
c. Find the percentage of each category.
d. Comment on the current costs data and what needs to be done next to improve.
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