Should Cleary implement the new quality program? Give your reason.

Requirement $1.$ Classify each item as a prevention cost, an appraisal cost, an internal failure cost, or an external failure cost.

Type of Quality Cost

Cost

Strength$-$testing one item from each batch of panels

Training employees in TQM

Training suppliers in TQM

Identifying preferred suppliers who commit to on$-$time delivery of perfect quality materials

Avoid lost profits from lost sales due to disappointed customers

Avoid rework and spoilage

Avoid inspection of raw materials

Avoid warranty costs

Requirement $2.$ Should Cleary implement the new quality program? Give your reason.

Cleary implement the new quality program. The program would the company