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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