Practical Management Science
Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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Question
Classify each of the following costs into a Cost of Quality (COQ) category (prevention, appraisal, internal failure, or external failure. Calculate the sub total for each group and find its percent of revenue. Based on this, what is 2025 prevention cost as a percent of revenue Revenue 12, 500 10,000 COQ Account 2025 2024 Breakdown maintenance (facility) 40 90 Customer support (defects) 30 40 Design engineering 240 100 Incoming materials inspection 40 20 Inspection of production 85 110 Preventive eqpmt. maintenance 90 35 Product liability claims 100 200 Product testing equipment 50 50 Product testing labor 75 220 Returned goods 145 60 Rework 135 160 Scrap 200 250 Supplier evaluations 50 20 Training 120 45 Warranty repair 200 300
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Transcribed Image Text:Classify each of the following costs into a Cost of Quality (COQ) category (prevention, appraisal, internal failure, or external failure. Calculate the sub total for each group and find its percent of revenue. Based on this, what is 2025 prevention cost as a percent of revenue Revenue 12, 500 10,000 COQ Account 2025 2024 Breakdown maintenance (facility) 40 90 Customer support (defects) 30 40 Design engineering 240 100 Incoming materials inspection 40 20 Inspection of production 85 110 Preventive eqpmt. maintenance 90 35 Product liability claims 100 200 Product testing equipment 50 50 Product testing labor 75 220 Returned goods 145 60 Rework 135 160 Scrap 200 250 Supplier evaluations 50 20 Training 120 45 Warranty repair 200 300
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