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E19-31 (similar to) QU Creighton, Inc. manufactures door panels. Suppose Creighton is considering spending the following amounts on a new total quality management (TQM) program:

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E19-31 (similar to) QU Creighton, Inc. manufactures door panels. Suppose Creighton is considering spending the following amounts on a new total quality management (TQM) program: F: (Click the icon to view the information.) Creighton expects the new program would save costs through the following: (Click the icon to view the information.) Read the requirements. Requirement 1. Classify each cost as a prevention cost, an appraisal cost, an internal failure cost, or an external failure cost. Cost Type of Quality Cost Strength-testing one item from each batch of panels Data Table -X Data Table $ 70,000 28,000 Strength-testing one item from each batch of panels Training employees in TQM Training suppliers in TQM Identifying suppliers who commit to on-time delivery of perfect-quality materials 40.000 $ 87,000 59,000 60,000 Avoid lost profits from lost sales due to disappointed customers Avoid rework and spoilage Avoid inspection of raw materials Avoid warranty costs 57,000 15,000 Print Done Print Done - X Requirements 1. Classify each cost as a prevention cost, an appraisal cost, an internal failure cost, or an external failure cost. 2. Should Creighton implement the new quality program? Give your reason Print Done Done Choose from any drop-down list and then click Check

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