What actions should be taken to upper management

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The Buffalo Machine Works of Boulder, Colorado, was evaluating its cost structure relating to quality cost. In the prior year, the company had lost $500,000 in warranty and waste. They didn't have good numbers for reward costs. The prior year, they had spent $100,000 training employees in quality tools $200,000 for quality assurance personnel. Inspection costs were 2% of sales of $50 million. Evaluate these costs and recommend what actions should be taken to upper management. (Hint: The average company loses about 20% of sales due to poor quality.)

Reference no: EM131231294

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