) Faastprint has identified the following costs given in the table for the month of December’22. a) Classify the various quality costs into the different quality cost categories (prevention, appraisal, internal failure, external failure). b) Analyze the costs/costs categories and suggest which areas Faastprint should address first in an effort to improve their quality. Cost Amount Proofreading $70,000 Quality planning $10,000 Reprinting caused by inspector rejection of product $405,000 Discarded material due to machine failure $75,000 Inspection of printed product $60,000 Reprinting due to customer complaints $40,000 Quality improvement projects $20,000 Correction of typographical errors found after proofreading $30,000
) Faastprint has identified the following costs given in the table for the month of December’22. a) Classify the various quality costs into the different quality cost categories (prevention, appraisal, internal failure, external failure). b) Analyze the costs/costs categories and suggest which areas Faastprint should address first in an effort to improve their quality. Cost Amount Proofreading $70,000 Quality planning $10,000 Reprinting caused by inspector rejection of product $405,000 Discarded material due to machine failure $75,000 Inspection of printed product $60,000 Reprinting due to customer complaints $40,000 Quality improvement projects $20,000 Correction of typographical errors found after proofreading $30,000
Chapter13: Services Marketing
Section: Chapter Questions
Problem 5DYMP
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Question
1) Faastprint has identified the following costs given in the table for the month of December’22.
- a) Classify the various quality costs into the different quality cost categories (prevention, appraisal, internal failure, external failure).
- b) Analyze the costs/costs categories and suggest which areas Faastprint should address first in an effort to improve their quality.
|
Cost |
Amount |
|
Proofreading |
$70,000 |
|
Quality planning |
$10,000 |
|
Reprinting caused by inspector rejection of product |
$405,000 |
|
Discarded material due to machine failure |
$75,000 |
|
Inspection of printed product |
$60,000 |
|
Reprinting due to customer complaints |
$40,000 |
|
Quality improvement projects |
$20,000 |
|
Correction of typographical errors found after proofreading |
$30,000 |
Expert Solution
Step 1
| 1. Prevention Costs – costs from preventive actions to minimize the defects |
| 2. Appraisal Costs – costs from actions made for problem detection |
| 3. Internal Failure cost – costs from actions made during the project to solve problems |
| 4. External Failures cost – costs from actions made after the project to solve problems |
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