Problem 8.7.xlsx
Miami Valley Aircraft Service Co.
1 2 3 4
Total labor Cost $21,000 $19,500 $24,500 $20,500
% Total Labor/Base (Qtr. 1)
100 92.86 116.67 97.62
External failure $1,000 $900 $950 $725
Labor cost indexes Percent of quality cost/labor cost
1 2 3 4
External failure 4.76% 4.62% 3.88% 3.54%
Internal failure 16.67% 16.67% 11.84% 10.73%
Quarterly Costs (in thousands of dollars)
20.00%
25.00%
30.00%
35.00%
Miami Valley Aircraft Service Co. – Cost of Quality