Appraisal and failure model for measuring quality costs, Business Management

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QUESTION

(a) Explain the Prevention, Appraisal and Failure model for measuring quality costs

(b) The Quality Manager has provided you with the following information and has requested you to write a report on the cost of quality in the organisation:

                                                                                                                                 (Rs)

(i) Scrap                                                                                                                65,000

(ii) Rework                                                                                                             40,000

(iii) Repair                                                                                                              38,000

(iv) Quality training                                                                                                   5,000

(v) Machine maintenance                                                                                           8,000

(vi) Downgrading                                                                                                     35,000

(vii) Inspection and testing                                                                                        15,000

(viii) Warranty costs                                                                                                  50,000

(ix) Re inspection cost                                                                                                 6,500

(x) Re testing                                                                                                             3,500

(xi) Quality System Audit                                                                                             3,000

(xii) Good inward inspection                                                                                         5,000

(xiii) Vendor quality assurance                                                                                     3,200

You are required to analyse the above information and prepare a report for management.

 


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