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Author Question: The CEO of Prairie Machine Parts (PMP) is concerned with the quality of its products and theamount ... (Read 56 times)

biggirl4568

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The CEO of Prairie Machine Parts (PMP) is concerned with the quality of its products and the
amount of resources currently spent on customer returns. The CEO would like to analyze the
costs incurred in conjunction with the quality of the product.

The following information was collected from various departments within the company:

Warranty returns$144,000
Training personnel120,000
Litigation on product liability claims210,000
Inspecting 10% of final products6,000
Rework12,000
Production loss due to machine breakdowns54,000
Inspection of raw materials6,000

Required:
A. Complete the Cost of Quality Report.
B. Do any additional subjective costs appear to be missing from the report?
C. What can be learned from the report?

Costs
Incurred
Total Costs
of Quality
Percentage of
Total Costs
 of Quality
Prevention Costs:
Personnel training
Total prevention costs
Appraisal Costs:
Inspecting raw materials
Inspecting 10% of final products
Total appraisal costs
Internal Failure Costs:
Rework
Production loss due to
machine breakdown
Total internal failure costs
External Failure Costs:
Litigation costs from product liability claims
Warranty return costs
Total external failure costs
Total costs of quality


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Marked as best answer by biggirl4568 on Jan 4, 2020

mariahkathleeen

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biggirl4568

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Reply 2 on: Jan 4, 2020
Wow, this really help


kjohnson

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Reply 3 on: Yesterday
Gracias!

 

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