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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 572,000 Processing lost

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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 572,000 Processing lost customer reservations 120,000 Rework incorrectly prepared room service meal 24,000 Employee training 24,000 Total $240,000 Sales are $1,600,000. Prepare a cost of cuality report. Round percent of sales to one decimal place. Cost of Quality Report Percent of Total Sales % % Quality Cost Classification Quality Cost Percent of Total Quality Cost Prevention 24,000 10% Appraisal 72,000 30 % Internal failure 24,000 10 % External failure 120,000 50 % Total 240,000 100 % % % % Calculate Lead Time Flint 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 85 parts. A part requires 4 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 min min Non-value-added time min min Total lead time min min Value-added ratio (as a percent) % %

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