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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
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. i (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 Appraisal Internal failure External failure Total costs of quality Requirement 2. Snug Rider is concerned with the high up-front cost of inspecting all 140,000 units. Managers are considering an alternative internal inspection plan that will cost only $1.00 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 3.5% will be detected after the car seats are sold and shipped. What are the total costs of quality for the alternative technique? Appraisal cost Internal failure cost Out of pocket external failure cost Opportunity cost of external failure Total cost of quality Requirement 3. What factors other than cost should Snug Rider consider before changing inspection techniques? A. Higher external failure rates may increase the probability of lawsuits. B. There could easily be serious reputation effects if the percentage of external failures increases significantly. This rise in external failures may lead to costs greater than $250 per failure due to lost sales. C. Both of the above. Requirements uirements 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. Managers are considering an alternative internal inspection plan that will cost only $1.00 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 3.5% 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 Snug Rider consider before changing inspection techniques? Print Done
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