E Quiz: Quiz 1 New Quest - X Data table Rock - On manufactures high-quality audio speakers. Suppose Rock - On is considering spending the
E Quiz: Quiz 1 New Quest - X Data table Rock - On manufactures high-quality audio speakers. Suppose Rock - On is considering spending the following amounts on a new quality (Click the icon to view the spending budget on the new quality program.) Additional 20 minutes of testing for each speaker . . . . . . . . .... . .$ 660,000 Rock - On expects this quality program to save costs as follows: Negotiating with, and training suppliers to, obtain higher-quality materials and on-time (Click the icon to view the cost savings.) delivery . . . .. 300,000 It also expects this program to avoid lost profits from the following: Redesigning the speakers to make them easier to manufacture . . . . . . . . . . . . . . . . . . . . . . . . ... 1,480,000 (Click the icon to view the lost profits avoided.) Requirements - X Data table Start with the first three costs. Reduce warranty repair costs ..... $ 340,000 Eliminate inspection of raw materials . 520,000 Additional 20 minutes of testing for each speaker. . . . . . . . . Negotiating with, and training suppliers to, obtain higher-quality materials and on-time Reduce rework (fewer defective units) . . . .. .. . .. . . . . . . . ... 730,000 delivery. . . . Redesigning the speakers to make them easier to manufacture X Appraisal costs Data table Now work on the next three costs. External failure costs Reduce warranty repair costs. . . . Lost sales due to disappointed customers . .. 925,000 Eliminate inspection of raw materials . . . Internal failure costs Lost production time due to rework . . . . . . . . . . . . . . 460,000 Reduce rework (fewer defective units) .. . . Work on the last two costs. Prevention costs Lost sales due to disappointed customers . . . Print Done Lost production time due to rework . . Requirement 2. Should Rock - On implement the quality program? Give your reasons. Rock - On implement the new quality program. The company by implementing the new program and also would longer term relations with current as well as potential new customers
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance