Craig Corp. manufactures radiation-shielding glass panels. (Click the icon to view the information.) Requirements 1. Classify each item as a prevention cost, an appraisal cost, an internal failure cost, or an external failure cost. 2. Should Craig implement the new quality program? Give your reason. Requirement 1. Classify each item as a prevention cost, an appraisal cost, an internal failure cost, or an external failure cost. Cost Type of Quality Cost Appraisal Prevention Prevention Prevention External failure Internal failure Strength-testing one item from each batch of panels Training employees in TQM Training suppliers in TQM Identifying preferred suppliers who commit to on-time delivery of perfect quality materials Avoid lost profits from lost sales due to disappointed customers Avoid rework and spoilage Avoid inspection of raw materials Avoid warranty costs Appraisal External failure Requirement 2. Should Craig implement the new quality program? Give your reason. implement the new quality program. The program would Craig the company Suppose Craig is considering spending the following amounts on a new TQM program: Strength-testing one item from each batch of panels Training employees in TQM Training suppliers in TQM Identifying preferred suppliers that commit to on-time delivery of perfect quality materials Craig expects the new program to save costs through the following: $ 62,000 $ 24,000 $ 34,000 thacommit $ 60,000 Avoid lost profits from lost sales due to disappointed customers .... $ 87,000 Avoid rework and spollage $ 69,000 Avoid inspection of raw materials $ 55,000 Avoid warranty costs $ 16,000