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The following cost chart depicts how different quality costs interplay at a paper production facility. Using this chart, please answer the following two questions. Q11:

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The following cost chart depicts how different quality costs interplay at a paper production facility. Using this chart, please answer the following two questions. Q11: Currently, an analysis of defects shows that the paper production plant suffers from an average of 25% defects. What would be your recommendation to the production plant manager? [1 point] Invest more in prevention and appraisal activities No need to make any quality related change Q12: After a quarter, another analysis of defects now shows that the paper production plant suffers from only, an average of, 10% defects. Which of the following statements is an incorrect conclusion? [1 point] Reduce investment in prevlion and appraisal activities Preventing some internal failures is more costly than re-working on those failures Preventing some external failures is more costly than re-working on such customer complaints Production facility should enhance its quality training programs

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