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Quality Cost Report, Taguchi Loss Function Kathy Shorts, president of Oliver Company, was concerned with the trend in sales and profitability. The company had
Quality Cost Report, Taguchi Loss Function Kathy Shorts, president of Oliver Company, was concerned with the trend in sales and profitability. The company had been losing customers at an alarming rate. Furthermore, the company was barely breaking even. Investigation revealed that poor quality was at the root of the problem. At the end of 20x5, Kathy decided to begin a quality improvement program. As a first step, she identified the following costs in the accounting records as quality related: Sales (699,000 units $100) Retesting Rework 20x5 $69,900,000 1,957,200 2,586,300 Vendor certification 838,800 Consumer complaints 1,677,600 Warranty 2,865,900 Test labor 1,957,200 Inspection labor 1,398,000 139,800 Design reviews Required: 1. Prepare a quality cost report by quality cost category. Round percentages to one decimal place if rounding is required. For example, 5.78% would be entered as 5.8 Oliver Company Quality Cost Report
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