Please answer the following question based on the given information.

$1.$ Chapter $4,$ problem $1.$

This problem is based on one of the topics, Costs of Quality, in chapter four of your class

textbook $-$ Managing Quality: Integrating the Supply Chain, $6$th Edition by S$.$ Thomas

Foster. An example is solved for you in the text. Study the chapter and solve the

following problems.

Statement of the problem

The Colorado Manufacturing Company of Boulder, CO has gathered the following

quality$-$related costs. You are hired as a consultant to evaluate these costs and to

make recommendations to management.

Annual Quality Costs

Failure Costs

Defective Products $ $4,234$

Engineered Scrap $ $21,265$

Non$-$engineered Scrap $ $224,123$

Consumer Adjustments $ $125,654$

Downgrading Products $ $2,125,328$

Lost Goodwill Not evaluated

Customer Policy Changes Not evaluated

Total

Appraisal Costs

Receiving Inspection $ $24,138$

Line $1$ Inspection $ $7,256$

Line $2$ Inspection $ $8,543$

Spot Checking $ $2,766$

Total

Prevention Costs

Quality Training $ $25,500$

Process Engineering

Corporate $ $132,678$

Plant $ $44,124$

Product Redesign $ $10,422$

Total

a$.$ Compute the ratio of prevention and appraisal costs to total quality cost

$($total quality coast $=$ prevention cost $+$ appraisal cost $+$ failure cost$)$ and

express your answer in percentage.

b$.$ Compute the ratio of appraisal cost to total quality cost where total quality

cost is as defined inside the bracket in question $1.$ Express your answer in

percentage.

c$.$ From the results in $($a$)$ above, what is the ratio of failure cost to total

quality cost?

$2.$ Chapter $6,$ problem $1.$

Statement of the problem

A company has gathered the following financial information for itself and a competing

firm. They wish to compare productivity for the two firms $($all numbers in $000$s$).$

Firm A Firm B

Labor $ $30,000$ $ $16,000$

Plant & equipment $200,000150,000$

Energy $17,50020,500$

Materials $200,000180,000$

Sales $1,200,000900,000$

a$.$ Compute partial and total factor productivity measures for Firms A and B$.$

b$.$ What is the picture you get of the two firms?

c$.$ What would you suggest to the management of Firm B$?$