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Snug Rider produces car seats for children from newborn to 2 years old. Snug Rider's only problem with its car seats was stitching in the
Snug Rider produces car seats for children from newborn to 2 years old. Snug Rider's only problem with its car seats was stitching in the straps. The problem can usually be detected and repaired during an internal inspection. Click the icon to view additional information.) Read the requirements Requirement 1. Identify total costs of quality by category (appraisal, internal failure, and external failure.) Costs of quality $ 840,000 Appraisal Internal failure External failure Total costs of quality Enter any number in the edit fields and then click Check Answer. ? parts remaining Clear All Check Answer More Info - X Inspection costs $6.00 per car seat, and repairs cost $0.50 per car seat. All 140,000 car seats were inspected last year, and 4% were found to have problems with the stitching. Another 3% of the 140,000 car seats had problems with the stitching, but the internal inspection did not discover them. Defective units that were sold and shipped to customers are shipped back to Snug Rider and repaired. Shipping costs are $15.00 per car seat, and repair costs are $0.50 per car seat. Negative publicity will result in a loss of future contribution margin of $200 for each external failure. Print Done ht X Requirements u ly 1. Identify total costs of quality by category (appraisal, internal failure, and external failure). 2. Snug Rider is concerned with the high up-front cost of inspecting all 140,000 units. It is considering an alternative internal inspection plan that will cost only $3.00 per car seat inspected. During the internal inspection, the alternative technique will detect only 1.5% of the 140,000 car seats that have stitching problems. The other 5.5% will be detected after the car seats are sold and shipped. What are the total costs of quality for the alternative technique? 3. What factors other than cost should SnugRider consider before changing inspection techniques? Print Done
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