Bradshaw Corp. manufactures radiation-shielding glass panels. Suppose the company is considering spending the following amounts on a new TQM program:

The company expects the new program would save costs through the following:

Requirements:

1. Classify each item as a prevention cost, an appraisal cost, an internal failure cost, or an external failure cost.
2. Should the company implement the new quality program? Give your reason.

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Strength-testing one item from each batch of panels Training employees in TQM Training suppliers in TQM Identifying preferred suppliers that commit to on-time delivery of perfect quality materials $62,000 $21,000 $31,000 $55,000