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Part A XYZ Company annualized quality costs are shown below. Using the PAF Paradigm, allocate each quality cost to the correct category and calculate
Part A XYZ Company annualized quality costs are shown below. Using the PAF Paradigm, allocate each quality cost to the correct category and calculate the following. Total Quality Cost Ratio of appraisal to failure cost Ratio of prevention to failure cost Ratio of prevention and appraisal to failure cost Proportion of prevention, appraisal, and failure What do the numbers tell you about the state of quality at XYZ? What should the company do? XYZ Annualized Quality Cost Item Cost Troubleshooting quality issues $5,000 Customer mandated 100% inspection 35,000 Rework of defective product 4,000 Production disruption 32,000 Supplier quality audits 14,000 Strategic quality planning process 15,000 Complaint handling 8,000 Warranty analysis 8,000 Inspection and test equipment 15,000 Inspection labor 45,000 Scrap recovery (funds from sale of scrap) 40,000 Value add of scrap 40,000 Unscheduled customer visits 12,000
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