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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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