Reference no: EM133239551
Winter Ltd are a fairly new company and are hope to develop a reputation for delivering high quality products to its customers. They are in the process of introducing total quality management across the whole organization and have collected the following costs in relation to the last quarter:
Evaluation of suppliers of raw materials £20,000
Warranty repair costs £80,000
Testing of equipment £10,000
Inspection of materials received £8,000
Cost of scrapping faulty products £25,000
Required:
I. Produce a cost of quality report using the four recognized headings and discuss the outcome of the report and whether any further action is required in order to achieve the aim of developing a reputation for high quality.
II. Discuss the usefulness of including opportunity costs within a cost of quality report