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The CEO of Dad's Snackfoods is concerned about the amount of resources currently spent on customer warranty claims. Each box of snacks is printed with
The CEO of Dad's Snackfoods is concerned about the amount of resources currently spent on customer warranty claims. Each box of snacks is printed with the guarantee: "Satisfaction guaranteed or your money back." Since the claims are so high, she would like to evaluate what costs are being incurred to ensure the quality of the product. The following information was collected from various departments within the company: B (Click the icon to view the information collected.) Requirements Requirement 1. Prepare a Cost of Quality Report. In addition to listing the costs by category, determine the percentage of the total costs of quality incurred in each cost category. Let's complete the cost of Quality Report by selecting the labels, costs, and total costs. In the next step we will calculate the percentage of the total costs of quality incurred in each cost category. (Round the percentage of total costs of quality to the nearest whole number.) Cost of Quality Report for Dad's Snackfoods Total Costs of Quality Percentage of total costs of quality Costs Prevention Costs: Total prevention costs Appraisal Costs: X Requirements Total appraisal costs Internal Failure Costs: 1. Prepare a Cost of Quality Report. In addition to listing the costs by category, determine the percentage of the total costs of quality incurred in each cost category. 2. Do any additional subjective costs appear to be missing from the report? 3. What can be learned from the report? Total internal failure costs Print Done 0 External Failure Costs: Total external failure costs Total Costs of Quality 100 % Requirement 2. Do any additional subjective costs appear to be missing from the report? the company may a reputation for If so, they are probably profits from sales customers will be to buy from the company again. They may also tell their friends and family buy Because the company has from the company. This report does not include an estimate of the v profits arising from a reputation for Requirement 3. What can be learned from the report? which is probably why the costs are so high. It appears that the company is inspecting the product the production process. Perhaps that is the reason its costs are so high. The CEO The Cost of Quality report shows that very little is being spent on should use this information to develop quality initiatives in the areas of Such initiatives should reduce future costs
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