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The annual quality costs of a manufacturer are listed below. • Scrap: $40,000 • Downgrading products: $200,000 • Receiving inspection: $25,000 • Lines inspection: $15,000 . Quality training: $20,000 • Process engineering: $180,000 1. What are the total prevention costs" (P), appraisal costs ¹0 (A), and failure costs¹¹ (F), respectively? 2. What is the ratio of appraisal and prevention costs to failure costs? (A+P)/F 3. What action plan would you recommend?

The annual quality costs of a manufacturer are listed below. • Scrap: $40,000 • Downgrading products: $200,000 • Receiving inspection: $25,000 • Lines inspection: $15,000 . Quality training: $20,000 • Process engineering: $180,000 1. What are the total prevention costs" (P), appraisal costs ¹0 (A), and failure costs¹¹ (F), respectively? 2. What is the ratio of appraisal and prevention costs to failure costs? (A+P)/F 3. What action plan would you recommend?

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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The annual quality costs of a manufacturer are listed below. • Scrap: $40,000 • Downgrading products: $200,000 • Receiving inspection: $25,000 O Lines inspection: $15,000 . Quality training: $20,000 ● Process engineering: $180,000 1. What are the total prevention costs" (P), appraisal costs 10 (A), and failure costs¹1 (F), respectively? 2. What is the ratio of appraisal and prevention costs to failure costs? (A+P)/F 3. What action plan would you recommend?
Transcribed Image Text:The annual quality costs of a manufacturer are listed below. • Scrap: $40,000 • Downgrading products: $200,000 • Receiving inspection: $25,000 O Lines inspection: $15,000 . Quality training: $20,000 ● Process engineering: $180,000 1. What are the total prevention costs" (P), appraisal costs 10 (A), and failure costs¹1 (F), respectively? 2. What is the ratio of appraisal and prevention costs to failure costs? (A+P)/F 3. What action plan would you recommend?
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