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Larger Corp. produces and supplies automotive manufacturers with the mechanisms used to adjust the positions of front seating units. Several competitors have recently entered the
Larger Corp. produces and supplies automotive manufacturers with the mechanisms used to adjust the positions of front seating units. Several competitors have recently entered the market, and management is concerned that the quality of the new competitors' products. the controller was asked to conduct an analysis of the efforts in January to improve product quality. His analysis generated the following costs of quality: Training of employees $22100 Customer Service 13600 Reinspection of rework 28000 Quality audits $31300 Design review 27500 Warranty claims 67100 Sample testing of material 27400 Returned goods 98700 Preventive maintenance 26500 Quality engineering 18700 Setup for testing new products 42100 Scrap and rework 76500 Losses caused by vendor scrap 65800 Product simulation 28400 1. Prepare a detailed analysis of the costs of quality. 2. Comment on the company's current efforts to improve product quality.
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