Question: Sony Sdn. Bhd. was evaluating its cost structure relating to quality costs. Below items are the cost of quality in the year 2022. With this

Sony Sdn. Bhd. was evaluating its cost structure relating to quality costs. Below items are the cost of quality in the year 2022. With this allocation of quality costs, the company lost 10% of sales due to poor performance. To improve the situation, the company would like to perform the cost of quality analysis.

Items

Cost /RM

Product Reliability Test

11000

Process Quality Assurance Audit

9500

Rework Cost

14000

Production Inspection

13000

Supplier Quality System Audit

6500

Defect Repair Cost

20000

Market Defect Cost

70000

Sampling Inspection

7000

Quality Assurance Training

15000

Product Warranty Cost

35000

a) Identify the items for prevention, appraisal, and failure costs. (6 Marks)

b) Compute the ratio of prevention, appraisal, and failure costs to total quality costs. (6 Marks)

c) Based on the analysis of the cost of quality, recommend the company's actions to improve the product quality. (3 marks)

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