Norton Company

Quality Cost Report

2007 and 2008
2007 2008
Percentage (%) Percentage (%)
Quality Costs Quality Costs
of Sales of Sales
Prevention Costs: $ 570,000.00 3.17% $ 1,200,000.00 6.67%
Field Trials $ 450,000.00 $ 900,000.00
Quality Training $ 120,000.00 $ 300,000.00
Appraisal Costs: $ 330,000.00 1.83% $ 360,000.00 2.00%
Packaging inspection $ 180,000.00 $ 120,000.00
Proses acceptance $ - $ 150,000.00
Product inspection $ 150,000.00 $ 90,000.00
Internal failure Costs: $ 735,000.00 4.08% $ 255,000.00 1.42%
Reinspection $ 300,000.00 $ 150,000.00
Retesting $ 435,000.00 $ 105,000.00
External failure costs: $ 1,965,000.00 10.92% $ 1,185,000.00 6.58%
Lost Sales (estimated) $ 900,000.00 $ 600,000.00
Complain Adjustment $ 465,000.00 $ 285,000.00
Recalls $ 600,000.00 $ 300,000.00
Total Biaya Kualitas $ 3,600,000.00 20.00% $ 3,000,000.00 16.67%
 2007 2008 difference

Control Costs $ 900,000.00 $ 1,560,000.00 660,000

Failure Costs $ 2,700,000.00 $ 1,440,000.00 (1,260,000)
 Partial Productivity Ratios Improvement
2007 Profile 2008 Profile 2008-2007
Labor productivity ratio 10.000/2.500 = 4 10.000/2.000 = 5 1
Materials productivity ratio 10.000/8.000 = 1,25 10.000/5.000 = 2 0.75