Quality Cost Anslysis (chapter 8)

Quality Cost Anslysis (chapter 8).

I’m studying for my Business class and need an explanation.

Submit your answers to Cost of Quality measure given below

Due: March 1, 2020

Problem 1: Quality Cost Analysis

Based on the data below, answer the following:

  1. Categorize the quality costs into Appraisal, Prevention, Internal failure, external failure costs.
  2. Explain the quality management practice at the company. What recommendations will you make based on your analysis?

Cost Element

Amount

Checking outbound boxes for errors

$607,750

Quality planning

$10,625

Downtime due to equipment problems

$342,125

Packaging waste

$68,000

Incoming product inspection

$51,000

Customer complaint rework

$34,000

Correcting erroneous orders before shipping

$36,550

Quality training of associates

$25,925

Quality improvement projects

$17,425

Other waste

$36,125

Correction of typing errors

$11,475

Total Quality Cost

$1,241,000

Quality Cost Anslysis (chapter 8)

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