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Maandal, Rhona R.

MM 3A
Activity 5 in Total Quality Management

PREVENTION COST AMOUNT % Of COQ


New Product Review 500.00
Quality Training 1,000.00
Quality Planning 2,000.00
Product Acceptance 13,000.00
TOTAL PREVENTION COST 16,500.00 19.19%

APPRAISAL COST
Materials Inspection 2,500.00
Field Inspection 12,000.00
TOTAL APPRAISAL COST 14,500.00 16.86%

INTERNAL FAILURE COST


Downtime 5,000.00
Scrap 10,000.00
Retesting 6,000.00
Rework 9,000.00
TOTAL INTERNAL FAILURE COST 30,000.00 34.88%

EXTERNAL FAILURE COST


Warranty 15,000.00
Complaint Adjustments 2,500.00
Allowances 7,500.00
TOTAL EXTERNAL FAILURE COST 25,000.00 29.07%

TOTAL COST 86,000.00 100.00%

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