In this example, an investment of approximately $ 1,500,000 (shown as $ 1,500) yields approximately a 4% reduction in Material Costs. (It will also affect labor costs, but that would be a different % effect and therefore a different graph, but still an S-Curve).

Calculate the effect a one year $ 1,500,000 TQM investment in CPI initiatives would have on both the trailing and leading edge material costs from Table 4 above with the 4% reduction. (The 4% is only for illustrating the effects and not necessarily what an individual company may achieve).

Segment	Product	Trailing Edge (of Market Segment)	Leading Edge (of Market Segment)
Traditional	Able	$3.80	$7.80
Low End	Acre	$1.00	$5.00
High End	Adam	$6.00	$10.00
Performance	Aft	$4.50	$8.50
Size	Agape	$4.50	$8.50

1. Complete Form 15 below calculating the cost savings on material the trailing edge and leading edge of each market segment.

Form 15: TQM Cost Effectiveness

Segment	Product	Trailing Edge (of Market Segment)	4% Cost Savings on Material	Leading Edge (of Market Segment)	4% Cost Savings on Material
Traditional	Able	$3.80	$ 0.152	$7.80	$ 0.312
Low End	Acre	$1.00		$5.00
High End	Adam	$6.00		$10.00
Performance	Aft	$4.50		$8.50
Size	Agape	$4.50		$8.50