Calculate the ratio of each coq category to sales

Reference no: EM13936974

Costs of quality analysis, non-financial quality measures. (20 minutes)

Alcazarquivir Lda manufactures and sells industrial grinders. The following table presents financial information pertaining to quality in 2006 and 2007 (in €000):

	2007	2006
Sales	€12 500	€10 000
Line inspection	85	110
Scrap	200	250
Design engineering	240	100
Cost of returned goods	145	60
Product-testing equipment	50	50
Customer support	30	40
Rework costs	135	160
Preventive equipment maintenance	90	35
Product liability claims	100	200
Incoming materials inspection	40	20
Breakdown maintenance	40	90
Product-testing labour	75	220
Training	120	45
Warranty repair	200	300
Supplier evaluation	50	20

1. Classify the cost items in the table into prevention, appraisal, internal failure or external failure categories.

2. Calculate the ratio of each COQ category to sales in 2006 and 2007. Comment on the trends in costs of quality between 2006 and 2007.

3. Give two examples of non-financial quality measures that Alcazarquivir could monitor as part of a total-quality-control effort.

Reference no: EM13936974

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