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As the Quality Manager of a Food and Beverage Company, you have been asked to present a review of Quality Costs to the Managing Director as summarized Table 1 Table 1: The data collection of the quality costs for a precision company. Activities Cost (RM) Activities Cost (RM) 18,000 10,000 2,500 Machine maintenance Customer return 44,000 12,000 15,000 Supplier training Food testing Incoming inspection Manufacturing tools Sorting at customer site Scrap Production visual inspection Finished-good inspection 10,800 35,000 10,500 18,000 (a) Summarized the total costs according to the type of quality cost (Prevention Costs, Appraisal Costs, Internal Failure Costs, and External Failure Costs). (b) Calculate the percentage of Prevention Costs, Appraisal Costs, Internal Failure Costs, and External Failure Costs. (c) Discuss your findings from obtained results of question (a) and (b).

As the Quality Manager of a Food and Beverage Company, you have been asked to present a review of Quality Costs to the Managing Director as summarized Table 1 Table 1: The data collection of the quality costs for a precision company. Activities Cost (RM) Activities Cost (RM) 18,000 10,000 2,500 Machine maintenance Customer return 44,000 12,000 15,000 Supplier training Food testing Incoming inspection Manufacturing tools Sorting at customer site Scrap Production visual inspection Finished-good inspection 10,800 35,000 10,500 18,000 (a) Summarized the total costs according to the type of quality cost (Prevention Costs, Appraisal Costs, Internal Failure Costs, and External Failure Costs). (b) Calculate the percentage of Prevention Costs, Appraisal Costs, Internal Failure Costs, and External Failure Costs. (c) Discuss your findings from obtained results of question (a) and (b).

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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As the Quality Manager of a Food and Beverage Company, you have been asked to present a review of Quality Costs to the Managing Director as summarized Table 1 Table 1: The data collection of the quality costs for a precision company. Activities Activities Cost (RM) Cost (RM) 44,000 12,000 15,000 10,800 35,000 Machine maintenance Customer return Supplier training Food testing Incoming inspection Manufacturing tools Sorting at customer site Scrap Production visual inspection Finished-good inspection 18,000 10,000 2,500 10,500 18,000 (a) Summarized the total costs according to the type of quality cost (Prevention Costs, Appraisal Costs, Internal Failure Costs, and External Failure Costs). (b) Calculate the percentage of Prevention Costs, Appraisal Costs, Internal Failure Costs, and External Failure Costs. (c) Discuss your findings from obtained results of question (a) and (b).
Transcribed Image Text:As the Quality Manager of a Food and Beverage Company, you have been asked to present a review of Quality Costs to the Managing Director as summarized Table 1 Table 1: The data collection of the quality costs for a precision company. Activities Activities Cost (RM) Cost (RM) 44,000 12,000 15,000 10,800 35,000 Machine maintenance Customer return Supplier training Food testing Incoming inspection Manufacturing tools Sorting at customer site Scrap Production visual inspection Finished-good inspection 18,000 10,000 2,500 10,500 18,000 (a) Summarized the total costs according to the type of quality cost (Prevention Costs, Appraisal Costs, Internal Failure Costs, and External Failure Costs). (b) Calculate the percentage of Prevention Costs, Appraisal Costs, Internal Failure Costs, and External Failure Costs. (c) Discuss your findings from obtained results of question (a) and (b).
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