The CEO of Aunt Fanny's Snackfoods is concerned about the amount of resources currently spent on...
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The CEO of Aunt Fanny's Snackfoods is concerned about the amount of resources currently spent on customer warranty claims. Each box of snacks is printed with the guarantee: "Satisfaction guaranteed or your money back." Since the claims are so high, she would like to evaluate what costs are being incurred to ensure the quality of the product. The following information was collected from various departments within the company: (Click the icon to view the information collected.) Requirements Data Table Warranty claims Cost of defective products found at the inspection point. Training factory personnel. Recall of Batch #59374 Inspecting products halfway through the production process Cost of disposing of rejected products. Preventive maintenance on factory equipment Production loss due to machine breakdowns Inspection of raw materials. Print Done $ - X 360,000 110,000 28,000 179,000 65,000 14,000 10,500 27,000 6.000 Requirement 1. Prepare a Cost of Quality Report. In addition to listing the costs by category, determine the percentage of the total costs of quality incurred in each cost category. Let's complete the Cost of Quality Report by selecting the labels, costs, and total costs. In the next step we will calculate the percentage of the total costs of quality incurred in each cost category. (Round the percentage of total costs of quality to the nearest whole number.) Cost of Quality Report for Aunt Fanny's Snackfoods Prevention Costs: Total prevention costs Appraisal Costs: Costs Total Costs of Quality Percentage of total costs of quality % Choose from any list or enter any number in the input fields and then continue to the next question. Total appraisal costs Internal Failure Costs: Total internal failure costs External Failure Costs: Total external failure costs Total Costs of Quality % 100 % Requirement 2. Do any additional subjective costs appear to be missing from the report? Because the company has customers will be ▼ the company may to buy from the company again. They may also tell their friends and family. a reputation for Requirement 3. What can be learned from the report? The Cost of Quality report shows that very little is being spent on the production process. Perhaps that is the reason its Such initiatives should reduce future ▼a reputation for If so, they are probably buy from the company. This report does not include an estimate of the profits from ▼sales. ▼profits arising from which is probably why the costs are so high. The CEO should use this information to develop quality initiatives in the areas of costs. costs are so high. It appears that the company is inspecting the product The CEO of Aunt Fanny's Snackfoods is concerned about the amount of resources currently spent on customer warranty claims. Each box of snacks is printed with the guarantee: "Satisfaction guaranteed or your money back." Since the claims are so high, she would like to evaluate what costs are being incurred to ensure the quality of the product. The following information was collected from various departments within the company: (Click the icon to view the information collected.) Requirements Data Table Warranty claims Cost of defective products found at the inspection point. Training factory personnel. Recall of Batch #59374 Inspecting products halfway through the production process Cost of disposing of rejected products. Preventive maintenance on factory equipment Production loss due to machine breakdowns Inspection of raw materials. Print Done $ - X 360,000 110,000 28,000 179,000 65,000 14,000 10,500 27,000 6.000 Requirement 1. Prepare a Cost of Quality Report. In addition to listing the costs by category, determine the percentage of the total costs of quality incurred in each cost category. Let's complete the Cost of Quality Report by selecting the labels, costs, and total costs. In the next step we will calculate the percentage of the total costs of quality incurred in each cost category. (Round the percentage of total costs of quality to the nearest whole number.) Cost of Quality Report for Aunt Fanny's Snackfoods Prevention Costs: Total prevention costs Appraisal Costs: Costs Total Costs of Quality Percentage of total costs of quality % Choose from any list or enter any number in the input fields and then continue to the next question. Total appraisal costs Internal Failure Costs: Total internal failure costs External Failure Costs: Total external failure costs Total Costs of Quality % 100 % Requirement 2. Do any additional subjective costs appear to be missing from the report? Because the company has customers will be ▼ the company may to buy from the company again. They may also tell their friends and family. a reputation for Requirement 3. What can be learned from the report? The Cost of Quality report shows that very little is being spent on the production process. Perhaps that is the reason its Such initiatives should reduce future ▼a reputation for If so, they are probably buy from the company. This report does not include an estimate of the profits from ▼sales. ▼profits arising from which is probably why the costs are so high. The CEO should use this information to develop quality initiatives in the areas of costs. costs are so high. It appears that the company is inspecting the product
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