Chihooli inc manufactures radiation-shielding glass panels

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Reference no: EM13600887

Chihooli, inc., manufactures radiation-shielding glass panels. Suppose chihooli is considering spending the following amounts on a new total quality management (TQM) program;

Stength testing on item from each batch of panels 65000
Training employees in TQM 30000
training suppliers in TQM 40000
Identifying preferred suppliers who commit to on time delivery of perfect quality materials 60000

Chihooli expects the nre program would save costs through the following:

Aviod lost profits from the lost sales due to disappointed customers 90000
aviod rework and spoilage 55000
aviod inspection of raw materials 45000
aviod warranty costs 15000

A.) classify each item as a prevention cost, an appriasal cost and internal failure cost or external failure cost.

B.) should chihooli implement the new quality program? give reason.

Reference no: EM13600887

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