Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question 2.2 (22 marks) Pharasalia skincare Inc. has developed a new lotion that will help to improve skin ageing. Total sales of the lotion for
Question 2.2 (22 marks) Pharasalia skincare Inc. has developed a new lotion that will help to improve skin ageing. Total sales of the lotion for the last year were $60,000,000. The following data have just been gathered on last year's quality- related costs. COST CATEGORY AMOUNT (S) Product recalls $625,000 Downtime due to defects 600,000 Warranty claims 420,000 Inspection of and testing of incoming materials 300,000 Product liability lawsuits 500,000 Process quality audits 350,000 Rework costs 480,000 Quality training 150,000 Process control monitoring 350,000 Transportation costs to fix customers' problems 375,000 Statistical process control 200,000 Waste 300,000 Net cost of scrap 650,000 Supplier certification 250,000 Reliability engineering 200,000 Returned products 380,000 Manufacturing Inspection 150,000 Re - ulrement: Question 2.2.1 Prepare a cost-of-quality report classifying costs into prevention, appraisal, Internal failure, and external failure. Also, show costs as a percentage of total costs and total sales. (14 marks) Your Answer {Insert rowslcolumns and expand the space as reguired): Question 2.2.2 Write a report to the management explaining the report you prepared and recommending the way forward for future actions. (8 marks) [Word limit: 120 words. Note the word count at the end of your Answer] Your Answer {Insert rowslcolumns and expand the space as reguired): Word count
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started