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XYZ Manufacturing Co. is implementing a Total Quality Management (TQM) program to improve product quality. As part of the program, the company tracks quality costs
XYZ Manufacturing Co. is implementing a Total Quality Management (TQM) program to improve product quality. As part of the program, the company tracks quality costs across prevention, appraisal, internal failure, and external failure categories. During the month, the company incurred $30,000 in prevention costs, $20,000 in appraisal costs, $15,000 in internal failure costs, and $25,000 in external failure costs. Analyze the quality costs and suggest strategies for improving quality while minimizing overall costs.
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