Proprinting, Ltd is Australian owned and specializes in the digital printing. Proprinting provides online printing and run by qualified tradesmen who print the jobs to perfection. The services include Business Cards, Stickers, Posters, Brochures, Folders, Booklets, Letterhead and Newsletters, Tri-Folds, Manuals, Post Cards, Flyers, Catalogues, Envelopes. The printing facility is loaded with the latest innovations in OFFSET and Digital printing technology. The team is comprised of digital graphics specialists and experienced press operators. It's this unique combination of technology and talent that produces the brilliant results.

Ethan, the manager of the company informed that in 2019 the quality compliance costs were approximately 14% of sales. He aims to implement zero defect production process. However, Ethan also aware that it is important to reduce the non-value-added activities and protecting the brand image while improving company's profit. Therefore, he planned a five- year quality costs management program to improve the quality performance. He sets an ambitious plan to reduce the quality cost to around 2 % of sales.

The following information provides indicators to the success of the quality costs management program.

Quality cost Activity 2020 2021 2022 2023 2024 Improvements in Quality process $9,600 $19,540 $57,455 $25, 650 $15,000 Quality training of staff to use new equipment and $6, 750 $32,710 $53,200 $42,475 $16,000 Purchasing of equipment and updated manuals $3, 750 $9,750 $25,235 $0 $0 Quality reporting (move from yearly to a monthly basis) $3,500 $6,000 $20,000 $5,500 $2,500 Proofreading printed materials $43,950 $99,950 $88,000 $31,850 $12,000 Other inspection (paper and inks from suppliers) $44,650 $43,800 $33,400 $18,500 $13,000 Correction of print errors detected prior to delivery $29,750 $38,750 $33,750 $20,000 $10,000 Recalibration of equipment $26,250 $37,500 $48,550 $20,000 $6,800 Production process breakdown (downtime) $72,000 $63,750 $67,400 $30,750 $20,500 Rework of poor quality detected by clients after delivery $53,560 $61, 100 $51,975 $26,800 $10,500 Waste of materials for printing returned by clients $54,640 $68,900 $53,525 $20,650 $11,500 $348,400 $481,750 $532,490 $242, 175 $117,800The following information provides indicators to the success of the quality costs management program. YEAR SALES REVENUES QUALITY COSTS 2020 $2 960 000 $348 400 2021 3 750 000 $481 750 2022 4 420 000 $532 490 2023 5 230 000 $242 175 2024 6 000 000 $117 800 Meanwhile, detail of the quality costs reports across the five years is provided below