EPAL Corporations manufacturers and sells heavy machineries. The management team has established the Total Quality Management (TQM) culture in the company and has been gathered the financial information pertaining to quality in 2018 and 2019:

Required:

a) Prepare the cost of quality report for EPAL Corporation. (12 marks)

b) Using the ratio of cost of quality to sales, appraise the performance of the quality management of EPAL Corporation. (13 marks)

c) Suggest other techniques that can be used to identify quality problems. (10 marks)

Question B3 EPAL Corporations manufactures and sells heavy machineries. The management team has established the Total Quality Management (TQM) culture in the company and has gathered the financial information pertaining to quality in 2018 and 2019: 2019 () 2018 () Sales 12,500,000 10,000,000 Supplier evaluation 50,000 20,000 Warranty Repair 200,000 300,000 Training 120,000 45,000 Product testing labour 75,000 220,000 Breakdown maintenance 40,000 90,000 Incoming materials inspections 40,000 20,000 Product liability claims 100,000 200,000 Preventive equipment maintenance 90,000 35,000 Rework costs 135,000 160,000 Customer support 30,000 40,000 Product-testing equipment 50,000 50,000 Cost of returned goods 145,000 60,000 Design engineering 240,000 100,000 Scrap 200,000 250,000 Line inspection 85,000 110,000 Required: a) Prepare the cost of quality report for EPAL Corporation. (12 marks) b) Using the ratio of cost of quality to sales, appraise the performance of the quality management of EPAL Corporation. (13 marks) c) Suggest other techniques that can be used to identify quality problems. (10 marks) Total: 35 marks Section Total: 70 marks