Problem 8.8.xlsx
Reship Solutions Inc.
Sorted by cost:
Cost element Cost
Qual. Cost Category
Percent Cumulative %
Checking outbound boxes for errors $607,750 Appraisal 48.97% 48.97%
Downtime due to conveyor/computer problems $342,125 Internal Failure 27.57% 76.54%
Packaging waste $68,000 Internal Failure 5.48% 82.02%
Incoming product inspection $51,000 Appraisal 4.11% 86.13%
Correcting erroneous orders before shipping $36,550 Internal Failure 2.95% 89.08%
Cost Elements by Category
External failure
Customer complaint rework $34,000
Internal Failure
Downtime due to conveyor/computer problems $342,125
Packaging waste $68,000
Total Quality Costs by Category Appraisal $658,750
Internal Failure $494,275
Prevention
4%
External Failure
3%
Quality Cost Summary