Costs (Savings) 300,200 1,405,000 600000 Cost (Benefit) Analysis Prevention costs: Negotiating with and training suppliers to obtain higher quality materials and on-time delivery Redesigning the speakers to make them easier to manufacture Appraisal costs: Additional 20 minutes of testing for each speaker Savings on inspection of raw materials Internal failure costs: Savings on rework Savings on lost profits from lost production due to rework External failure costs: Savings on warranty repair costs Savings on lost profits from lost sales due to disappointed customers Net cost (benefit) from implementing quality program Costs (Savings) 300,200 1,405,000 600000 Cost (Benefit) Analysis Prevention costs: Negotiating with and training suppliers to obtain higher quality materials and on-time delivery Redesigning the speakers to make them easier to manufacture Appraisal costs: Additional 20 minutes of testing for each speaker Savings on inspection of raw materials Internal failure costs: Savings on rework Savings on lost profits from lost production due to rework External failure costs: Savings on warranty repair costs Savings on lost profits from lost sales due to disappointed customers Net cost (benefit) from implementing quality program