Reference no: EM13600887

Chihooli, inc., manufactures radiation-shielding glass panels. Suppose chihooli is considering spending the following amounts on a new total quality management (TQM) program;

• Stength testing on item from each batch of panels 65000
• Training employees in TQM 30000
• training suppliers in TQM 40000
• Identifying preferred suppliers who commit to on time delivery of perfect quality materials 60000

Chihooli expects the nre program would save costs through the following:

• Aviod lost profits from the lost sales due to disappointed customers 90000
• aviod rework and spoilage 55000
• aviod inspection of raw materials 45000
• aviod warranty costs 15000

A.) classify each item as a prevention cost, an appriasal cost and internal failure cost or external failure cost.

B.) should chihooli implement the new quality program? give reason.