Chapter 2.B, Problem 4P

To determine

Cost of quality: The costs that are incurred to avoid, prevent, detect or removes defect from a product are called cost of quality or quality costs. The cost of quality is divided into appraisal costs, prevention costs, external failure costs, and internal failure costs.

Prevention cost: Prevention costs are the costs that are incurred to prevent or avoid defects in the product.

Appraisal Cost: Appraisal costs are the costs that are incurred for testing and inspecting the products to identify the defects before delivering them.

Internal failure cost: Internal failure costs are the costs that are incurred to remove identified defects from products before delivering them.

External failure cost: External failure costs are the costs that are incurred to remove defects from products that have already been delivered to the customers.

Quality cost report: The report which details the cost of appraisal costs, prevention costs, external failure costs and internal failure costs is called the quality cost report.

1. A quality cost report for the data given.
2. A bar graph to show the distribution of various quality costs by category.
3. An evaluation report to accompany the quality cost report and the bar graph.