Circuit Corporation supplies integrated circuitry to major appliance manufacturers in all parts of the world. Producing a high-quality product in each of the company's four divisions is the mission of management. Each division is required to record and report its efforts to achieve quality in all of its primary product lines. The following information for the most recent three-month period was submitted to the chief financial officer:

Required
1. Rank the divisions in order of their apparent product quality.
2. What three measures were most important in your rankings in 1? Why?
3. Which division is most successful in its bid to improve quality? What measures illustrate its high-quality rating?
4. Consider the two divisions producing the lowest-quality products. What actions would you recommend to the management of each division? Where should their quality dollars be spent?

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slonDothan Division Valdosta Division % of Dothan Division Valdosta Division Columbla Division %of % of Amount Revenue Amount Revenue Amount Revenue Amount Revenue Costs of Conformance Prevention costs Quality training of employees Process engineering Preventive maintenance $ 4,400 ,100 15,600 19,700 14,400 $49,700 23,600 45,900 13,800 S 83,300 11,10 $29,400 Total prevention costs End-of-process sampling and Quality audits of products 13,300 0.95% 3.11% 555% 1.73% Appraisal costs: 21,400 $ 6,900 ,100) 4,10) 11,900 10,100 $41,500 S 91,200 17,600 Vendor audits Total appraisal costs Total costs of conformance27,000 $13,700 0.98% 2.59% 5.70% S 48800 $132,100 3.25% $ 22,900 880% 1.35% 3.08% 1020 1.93% S 52,300 Costs of Nonconformance Internal failure costs Quality-related downtime Scrap and rework Scrap disposses 26,800 17,500 31,200 75,500 9,100 AAD n) Total internal failure costs 5.39% $24,600 1.54% S 17,900 1.19% $58,700 3.45% External failure costs: Warranty claims 22,600 31,600 17,100 22,300 19,800 $59,200 $117,900 $170,200 Customer complaint processing Returned goods 6,400 Total extemal failure costs $84,100 $159,600 $186,600 6.01% 11.40% 13.33% $18.100 $42,700 $133,900 1.13% 2.67% 8.37% S 12,000 0.80% $29,900 1.99% $162,000 10.79% 3.48% 6.93% 10.01% Total costs of nonconformance Total costs of quality Ratlos of Nonfinancial Measures: Number of sales to number of warranty claims Number of products produced to number of products reworked Change in throughput time (positive amount means time reduction) Total number of deliveries to number of late deliveries 372 to 1 168 to 1 1,420 to 1 (-461 596) 86 to 1 996 to 1 225 to 1 6,430 to 1 2,140 to 1 (-1.241%) 128 to 1 21G3% 168 to 1 290 to 1