Determine total cost of quality when there are no defectives

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Reference no: EM1372649

Q. costs of quality are given by following equations:

Ca = 100D + 1500
Cp = -50D + 6300
Cf = De0.5D
where:
Ca is cost of appraisal,
Cp is cost of prevention, and
Cf is cost of failure.
Note that D is percent defectives and 0 <= D<= 100.

1. Determine total cost of quality when there are no defectives. D = 0 and product quality is perfect.

2. Given information in Problem 1, determine total cost of quality when D = 90. No company could stay in business with D = 90, as will be apparent from calculations.

3. Given information in Problem 1, determine total cost of quality when D = 0, 10, and 15. Plot all of points.

4. Using information in Problem 1, comment on shape and position of se cost of quality curves.

5. Using information in Problem 1, is re a minimum total cost? What is it?

 

 

Reference no: EM1372649

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