Image, which designs prototype components for the computer gaming industry has begun a quality program. About a year ago, for the first time, they began to measure quality costs. They were so shocked by their initial figure of 60 percent internal and external failure costs that they immediately launched a Six Sigma quality improvement effort. The percentage of total quality costs recently, after six months of improvements for the firm, are distributed as follows:

Prevention 20%

Appraisal 33%

Internal failure 32%

External failure 15%

What conclusions can you reach from these data?