The annual quality costs of a manufacturer are listed below. • Scrap: $40,000 • Downgrading products: $200,000 • Receiving inspection: $25,000 • Lines inspection: $15,000 . Quality training: $20,000 • Process engineering: $180,000 1. What are the total prevention costs" (P), appraisal costs ¹0 (A), and failure costs¹¹ (F), respectively? 2. What is the ratio of appraisal and prevention costs to failure costs? (A+P)/F 3. What action plan would you recommend?
The annual quality costs of a manufacturer are listed below. • Scrap: $40,000 • Downgrading products: $200,000 • Receiving inspection: $25,000 • Lines inspection: $15,000 . Quality training: $20,000 • Process engineering: $180,000 1. What are the total prevention costs" (P), appraisal costs ¹0 (A), and failure costs¹¹ (F), respectively? 2. What is the ratio of appraisal and prevention costs to failure costs? (A+P)/F 3. What action plan would you recommend?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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![The annual quality costs of a manufacturer are listed below.
• Scrap: $40,000
• Downgrading products: $200,000
• Receiving inspection: $25,000
O Lines inspection: $15,000
. Quality training: $20,000
● Process engineering: $180,000
1. What are the total prevention costs" (P), appraisal costs 10 (A), and failure costs¹1
(F), respectively?
2. What is the ratio of appraisal and prevention costs to failure costs? (A+P)/F
3. What action plan would you recommend?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd6e9200a-0924-46ef-bc19-92c15defbb15%2Ff110c391-c2a5-421b-a3b7-bba7cc2dc968%2Fimrbsvf_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The annual quality costs of a manufacturer are listed below.
• Scrap: $40,000
• Downgrading products: $200,000
• Receiving inspection: $25,000
O Lines inspection: $15,000
. Quality training: $20,000
● Process engineering: $180,000
1. What are the total prevention costs" (P), appraisal costs 10 (A), and failure costs¹1
(F), respectively?
2. What is the ratio of appraisal and prevention costs to failure costs? (A+P)/F
3. What action plan would you recommend?
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