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Gibbons Industries manufactures freezers. Here is some information about its LX17 line of freezers over the past year: (Click the icon to view the information.)
Gibbons Industries manufactures freezers. Here is some information about its "LX17" line of freezers over the past year: (Click the icon to view the information.) Read the requirements Requirement 1. Prepare a Cost of Quality (COQ) report. In addition to calculating the total costs each category, calculate the percentage of COQ category of the total COQ. (Round the percentage to the one tenth of a percent, X.X%. If an input field is not used in the table, leave the input field empty, do not select a label or enter a zero.) Gibbons Cost Quality Report Costs Total Costs of Percentage of Total Costs Incurred Quality of Quality (Rounded) Prevention Costs: Total prevention costs Appraisal Costs: Total appraisal costs Internal Failure Costs: Total internal failure costs External Failure Costs: Total external failure costs % Total costs of quality % Requirement 2. Why would the variable repair cost at the customers' home generally be higher than the "in factory" rework cost? The variable repair cost at the customers' home will generally be higher than the "in factory" rework cost because a service call will include additional costs such as Requirement 3. How can use of the COQ report lead to improvements in the production process or in the quality of the product itself? The COQ report shows the company Data table 7,200 units 1,250 450 1,300 0.5 hours 7% Number of units manufactured and sold Selling price per unit .... Variable manufacturing and selling costs per unit. Hours spent by engineers improving design. . Testing and inspection hours per unit ... Percentage of units reworked in the plant after inspection Average variable rework costs per freezer. Percentage of units repaired under warranty at customers' homes. Average variable repair costs at customers' homes per freezer .. Estimated lost sales due to quality.reputation .. Design engineer's labor rate (includes benefits and payroll taxes) Inspection costs per hour. $ 350 10% $ 480 250 units $95 per hour $30 per hour Print Done Requirements 1. Prepare a Cost of Quality (COQ) report. In addition to calculating the total costs of each category, calculate the percentage of COQ category of the total COQ. 2. Why would the variable repair cost at the customers' home generally be higher than the "in factory" rework cost? 3. How can use of the COQ report lead to improvements in the production process or in the quality of the product itself? Print Done
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