Given the following cost information for company XYZ. Cost Item Total for the year Quality assurance $
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Question:
Given the following cost information for company XYZ.
Cost Item | Total for the year | |
Quality assurance | $ | 580,000 |
Equipment maintenance | $ | 270,000 |
Product redesign | $ | 323,000 |
Product warranty and repair | $ | 680,000 |
Product testing and inspection | $ | 385,000 |
Training | $ | 315,000 |
Process improvement/Kaizen | $ | 250,000 |
Material scrap | $ | 360,000 |
Rework labor | $ | 439,000 |
Incoming materials inspection | $ | 336,000 |
After sales customer support | $ | 215,000 |
Travel to suppliers/process certification | $ | 88,000 |
Travel to customers/problem solving | $ | 93,000 |
Calculate the following: a. Total appraisal cost: b. Total prevention cost: c. Total cost of internal failures: d. Total cost of external failure: e. Total cost of quality: |
Related Book For
Managing Operations Across The Supply Chain
ISBN: 9781260547634
4th Edition
Authors: Morgan Swink, Steven Melnyk, Janet L. Hartley, M. Bixby Cooper
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