76) Classify each of the following quality costs as prevention costs, appraisal costs, internal
failure costs, or external failure costs.
a. Retesting of reworked products
b. Downtime due to quality problems
c. Analysis of the cause of defects in production
d. Depreciation of test equipment
e. Warranty repairs
f. Lost sales arising from a reputation for poor quality
g. Supplier evaluation questionnaire
h. Rework direct manufacturing labour and overhead
i. Net cost of spoilage
j. Technical support provided to suppliers
k. Audits of the effectiveness of the quality system
l. Plant utilities in the inspection area
m. Reentering data because of keypunch errors
________ Prevention costs
________ Appraisal costs
________ Internal failure costs
________ External failure costs
76)
77) Discuss the means by which a company goes about evaluating and installing a new quality
improvement program.
77)
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