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Cost of Quality Report A quality control activity analysis indicated the following four activity costs of a hotel: Inspecting cleanliness of rooms $246,400 Processing
Cost of Quality Report A quality control activity analysis indicated the following four activity costs of a hotel: Inspecting cleanliness of rooms $246,400 Processing lost customer reservations 61,600 Reworking incorrectly prepared room service meals 123,2001 Employee training 184,800 $616,000 Total Sales are $2,800,000. Prepare a cost of quality report. Round percent of sales to one decimal place. Cost of Quality Report Quality Cost Classification Percent of Total Percent of Quality Cost Quality Cost Total Sales Prevention % % Appraisal Internal failure % External failure % % Total Compute Lead Time Bhojraj Fabricators Inc. machines metal parts for the automotive industry. Under the traditional manufacturing approach, the parts are machined through two processes: milling and finishing. Parts are produced in batch sizes of 70 parts. A part requires 5 minutes in milling and 8 minutes in finishing. The move time between the two operations for a complete batch is 9 minutes. Under the lean philosophy, the part is produced in a cell that includes both the milling and finishing operations. The operating time is unchanged; however, the batch size is reduced to 3 parts and the move time is eliminated. Determine the value-added, non-value-added, and total lead times, and the value-added ratio under the traditional and lean manufacturing methods. If required, round percentages to one decimal place. Traditional Philosophy Lean Manufacturing Philosophy Value-added time Non-value-added time Total lead time min min min min min min Value-added ratio (as a percent) % %
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