EPAL Corporations manufactures and sells heavy machineries. The management team has established the Total Quality Management...

 

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EPAL Corporations manufactures and sells heavy machineries. The management team has established the Total Quality Management (TQM) culture in the company and has gathered the financial information pertaining to quality in 2018 and 2019: 2019 (£) 12,500,000 50,000 200,000 120,000 75,000 40,000 40,000 100,000 90,000 135,000 30,000 50,000 145,000 240,000 200,000 85,000 2018 (£) 10,000,000 20,000 300,000 45,000 220,000 90,000 20,000 200,000 35,000 160,000 40,000 50,000 60,000 100,000 250,000 110,000 Sales Supplier evaluation Warranty Repair Training Product testing labour Breakdown maintenance Incoming materials inspections Product liability claims Preventive equipment maintenance Rework costs Customer support Product-testing equipment Cost of returned goods Design engineering Scrap Line inspection Required: a) Prepare the cost of quality report for EPAL Corporation. (12 marks) b) Using the ratio of cost of quality to sales, appraise the performance of the quality management of EPAL Corporation. (13 marks) c) Suggest other techniques that can be used to identify quality problems. (10 marks) EPAL Corporations manufactures and sells heavy machineries. The management team has established the Total Quality Management (TQM) culture in the company and has gathered the financial information pertaining to quality in 2018 and 2019: 2019 (£) 12,500,000 50,000 200,000 120,000 75,000 40,000 40,000 100,000 90,000 135,000 30,000 50,000 145,000 240,000 200,000 85,000 2018 (£) 10,000,000 20,000 300,000 45,000 220,000 90,000 20,000 200,000 35,000 160,000 40,000 50,000 60,000 100,000 250,000 110,000 Sales Supplier evaluation Warranty Repair Training Product testing labour Breakdown maintenance Incoming materials inspections Product liability claims Preventive equipment maintenance Rework costs Customer support Product-testing equipment Cost of returned goods Design engineering Scrap Line inspection Required: a) Prepare the cost of quality report for EPAL Corporation. (12 marks) b) Using the ratio of cost of quality to sales, appraise the performance of the quality management of EPAL Corporation. (13 marks) c) Suggest other techniques that can be used to identify quality problems. (10 marks)