Data Table Requirements $ 500,000 104,000 42,000 1. Prepare a Cost of Quality Report. In addition to listing the costs by category, determine the percentage of the total costs of quality incurred in each cost category. 2. Do any additional subjective costs appear to be missing from the report? 3. What can be learned from the report? Warranty claims Cost of defective products found at the inspection point Training factory personnel Recall of Batch #59374 Inspecting products halfway through the production process Cost of disposing of rejected products. Preventive maintenance on factory equipment Production loss due to machine breakdowns Inspection of raw materials 179,000 57,000 12,000 8,000 Print Done 19,000 6,500 Print Done The CEO of Dad's Snackfoods is concerned about the amount of resources currently spent on customer warranty claims. Each box of snacks is printed with the guarantee: "Satisfaction guaranteed or your money back." Since the claims are so high, she would like to evaluate what costs are being incurred to ensure the quality of the product. The following information was collected from various departments within the company: 5 (Click the icon to view the information collected.) Requirements CHI Requirement 1. Prepare a Cost of Quality Report. In addition to listing the costs by category, determine the percentage of the total costs of quality incurred in each cost category. Let's complete the Cost of Quality Report by selecting the labels, costs, and total costs. In the next step we will calculate the percentage of the total costs of quality incurred in each cost category. (Round the percentage of total costs of quality to the nearest whole number.) Cost of Quality Report for Dad's Snackfoods Total Costs Percentage of total Costs of Quality costs of quality Prevention Costs: Requirements Total prevention costs Appraisal Costs: 1. Prepare a Cost of Quality Report. In addition to listing the costs by category, determine the percentage of the total costs of quality incurred in each cost category. 2. Do any additional subjective costs appear to be missing from the report? 3. What can be learned from the report? Total appraisal costs Internal Failure Costs: Print Done Total internal failure costs External Failure Costs: Total external failure costs Total Costs of Quality 100 % The CEO of Dad's Snackfoods is concerned about the amount of resources currently spent on customer warranty claims. Each box of snacks is printed with the guarantee: "Satisfaction guaranteed or your money back." Since the claims are so high, she would like to evaluate what costs are being incurred to ensure the quality of the product. The following information was collected from various departments within the company: E: (Click the icon to view the information collected.) Requirements Prevention Costs: Total prevention costs Appraisal Costs: - Requirements Total appraisal costs Internal Failure Costs: 1. Prepare a Cost of Quality Report. In addition to listing the costs by category, determine the percentage of the total costs of quality incurred in each cost category 2. Do any additional subjective costs appear to be missing from the report? 3. What can be learned from the report? Total internal failure costs External Failure Costs: Print Done Total external failure costs Total Costs of Quality 100 % Requirement 2. Do any additional subjective costs appear to be missing from the report? V If so, they are probably V profits from sales. customers will be to buy from the company again. They may also Because the company has tell their friends and family the company may buy from the company. This report does not include an estimate of the a reputation for V profits arising from a reputation for Requirement 3. What can be learned from the report? the production process. Perhaps that is the reason its The Cost of Quality report shows that very little is being spent on V which is probably why the costs are so high. The CEO should use this information to develop quality initiatives in the areas of costs are so high. It appears that the company is inspecting the product Such initiatives should reduce future costs
