v1.

1
Calculating Cost Per Failure

Cost of Poor Quality Calculator

Problem Description: Type:

Average Conformance/ Non-
Task Hourly Rate Cost of Task Cost of Materials
Hours/Task Conformance Costs

1. Task $ - $ -

2. Task $ -

3. Task $ -

4. Task $ -

5. Task $ -

6. Task $ -

Total Cost Per Conformance/Non-Conformance $ -

Number/Year

Annual Cost $ -

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 Calculating Cost Per Failure v1.1

Cost of Poor Quality Calculator

Problem Description: Wrong Lunch Order Type: External Failure

Average Conformance/ Non-
Task Hourly Rate Cost of Task Cost of Materials
Hours/Task Conformance Costs
1. Respond to
0.1 $ 15.00 $ 1.50 $ 1.50
Customer
2. Send Kitchen
0.1 $ 15.00 $ 1.50 $ 1.50
Re-Order

3. Meal Prepared 0.3 $ 15.00 $ 4.50 $ 10.00 $ 14.50

4. Re-Deliver
0.1 $ 15.00 $ 1.50 $ 1.50
Meal

5. Adjust Bill 0.1 $ 15.00 $ 1.50 $ 0.50 $ 2.00

Total Cost Per Conformance/Non-Conformance $ 21.00

Number/Year 1,500

Annual Cost $ 31,500.00

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 Calculating Cost Per Failure v1.1

Cost of Poor Quality Calculator

Problem Description: Furnance Repair Type: External Failure

Average Conformance/ Non-
Task Hourly Rate Cost of Task Cost of Materials
Hours/Task Conformance Costs
1. Take Repair
0.1 $ 35.00 $ 3.50 $ 2.50 $ 6.00
Call

2. Dispatch Tech 0.6 $ 45.00 $ 27.00 $ 15.00 $ 42.00

3. Repair 1.0 $ 55.00 $ 55.00 $ 50.00 $ 105.00

4. Admin 0.3 $ 45.00 $ 13.50 $ 13.50

5. Management 0.1 $ 75.00 $ 7.50 $ 7.50

Total Cost Per Conformance/Non-Conformance $ 174.00

Number/Year 1,500

Annual Cost $ 261,000.00

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 v1.1
Calculating Cost Per Failure

Cost of Poor Quality Calculator

Problem Description: Desktop Repair Type: External Failure

Average Conformance/ Non-
Task Hourly Rate Cost of Task Cost of Materials
Hours/Task Conformance Costs

1. Take Call 0.3 $40 $ 12.00 $ 12.00

2. Dispatch IT
1 $40 $ 40.00 $ 40.00
Tech
3. Assess Issue 1 $60 $ 60.00 $80 $ 140.00

4. Fix Problem 1.5 $60 $ 90.00 $250 $ 340.00

5. Admin 0.2 $40 $ 8.00 $ 8.00

$ -

Total Cost Per Conformance/Non-Conformance $ 540.00

Number/Year 2000

Annual Cost $ 1,080,000.00

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 v1.1
Calculating Cost Per Failure

Cost of Poor Quality Calculator

Problem Description: Hotel Guestroom Inspection Type: Appraisal

Average Conformance/ Non-
Task Hourly Rate Cost of Task Cost of Materials
Hours/Task Conformance Costs
1. Walk to
0.1 $40 $ 4.00 $ 4.00
Guestroom
2. Inspect
0.1 $40 $ 4.00 $ 4.00
Guestroom
3. Make
0.1 $40 $ 4.00 $ 4.00
Adjustments
4. Return to
0.1 $40 $ 4.00 $ 4.00
Office
$ - $ -

$ -

Total Cost Per Conformance/Non-Conformance $ 16.00

Number/Year 5,000

Annual Cost $ 80,000.00

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