Question
. i) Determine i) the Cost of Quality and ii) the Ratio to Sales if: Training is $5,000; Quality Planning is $9,000; Testing is $8,000;
. i) Determine i) the Cost of Quality and ii) the Ratio to Sales if: Training is $5,000; Quality Planning is $9,000; Testing is $8,000; Inspection is $22,000; Calibration is $2,000; Factory Scrap is $26,000; Factory Rework is $28,000; Downtime is $1,000; Returns are $43,000; Liability Claims are $27,000; Sales are $1,200,000. P = Prevention; A = Appraisal; I = Internal Failure; E = External Failure A) i= P: $12,000 A: $30,000 I: $53,000 F: $68,000; ii = P: 0.010 A: 0.025 I: 0.044 F: 0.057 B) i= P: $14,000 A: $32,000 I: $55,000 F: $70,000; ii = P: 0.012 A: 0.027 I: 0.046 F: 0.058 C) i= P: $16,000 A: $34,000 I: $57,000 F: $72,000; ii = P: 0.013 A: 0.028 I: 0.048 F: 0.060 D) None of the above
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