1) Under “Costs of Quality”, costs associated with quality can be classified into four categories: appraisal, prevention, internal failures, and external failures. The costs of quality for Corley Motors Logistics is given in the table. Cost ElementsAmountChecking outbound boxes for errors$31,000Quality planning $10,625Downtime due to conveyor/computer problems$342,125Incoming product inspection$21,000Customer complaint rework$33,000 Correcting erroneous orders before shipping$36,550Quality training of associates$25,925Correction of typographical errors--pick tickets$11,475 a) Classify the quality cost elements given in the table into the different quality cost categories (prevention, appraisal, internal failure, external failure).b) Total the quality costs in each of the different quality cost categories (prevention, appraisal, internal failure, external failure).c) Using a) and b), suggest which areas the firm should address first in an effort to improve their quality.

a) Classification of Quality Cost ElementsThe cost of quality can be grouped into four categories:…

Answered: 1) Under “Costs of Quality”, costs…

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter13: Services Marketing

Section: Chapter Questions

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1) Under “Costs of Quality”, costs associated with quality can be classified into four categories: appraisal, prevention, internal failures, and external failures. The costs of quality for Corley Motors Logistics is given in the table.

Cost Elements	Amount
Checking outbound boxes for errors	$31,000
Quality planning	$10,625
Downtime due to conveyor/computer problems	$342,125
Incoming product inspection	$21,000
Customer complaint rework	$33,000
Correcting erroneous orders before shipping	$36,550
Quality training of associates	$25,925
Correction of typographical errors--pick tickets	$11,475

a) Classify the quality cost elements given in the table into the different quality cost categories (prevention, appraisal, internal failure, external failure).
b) Total the quality costs in each of the different quality cost categories (prevention, appraisal, internal failure, external failure).
c) Using a) and b), suggest which areas the firm should address first in an effort to improve their quality.

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