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Data Table - X 608,000 Additional 20 minutes of testing for each speaker Negotiating with and training suppliers to obtain higher-quality materials and on-time delivery
Data Table - X 608,000 Additional 20 minutes of testing for each speaker Negotiating with and training suppliers to obtain higher-quality materials and on-time delivery Redesigning the speakers to make them easier to manufacture 550,000 $ 1,405,000 Print Done plementing quality program i Data Table 204,000 Reduced warranty repair costs Avoid inspection of raw materials Rework avoided because of fewer defective units 408,000 $ 656,000 Print Done i Data Table 858,000 Lost sales due to disappointed customers Lost production time due to rework $ 309,000 Print Done Speakers Direct manufactures high-quality speakers. Suppose Speakers Direct is considering spending the following amounts on a new quality program: (Click the icon to view the information.) Speakers Direct expects this quality program to save costs as follows: Click the icon to view the information.) It also expects this program to avoid lost profits from the following: (Click the icon to view the information.) 1. Classify each of these costs into one of the four categories of quality costs (prevention, appraisal, internal failure, external failure). 2. Should Speakers Direct implement the quality program? Give your reasons. 1. First classify each of these costs into one of the four categories of quality costs, then prepare a cost-benefit analysis of the proposed quality program based on the four categories identified. (Use a minus sign or parentheses for savings amounts.) Cost (Benefit) Analysis Prevention costs: Appraisal costs: Internal failure costs: External failure costs: Net cost (benefit) from implementing quality program
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