1 A number of activities that are a part of a companys quali

1. A number of activities that are a part of a company\'s quality control system are listed below. Classify the costs associated with each of these activities into one of the following categories: prevention cost, appraisal cost, internal failure cost, or external failure cost Activities Cost a. Product testing b. Product recalls c. Rework labor and overhead d. Quality circles. e. Downtime caused by defects t Cost of field servicing g. Inspection of goods h. Quality engineering. Stabesical process control k. |Net cost of scrap. L Depreciation of lest equipment m. Returnms and allowances arising from poor quailty n. Disposal of defective products o Technical support to suppliers p. Syslerms development Warranty replacements. r. Field testing at custorner site s. Product design

Solution

Product testing===Appraisal cost

Product recalls===External failure cost

Rework labor and overhead=Internal failure cost

Quality circles===Prevention cost

Downtime caused by defects===Internal failure cost

Cost of field servicing===Prevention cost

Inspection of goods===Appraisal cost

Quality engineering===Prevention cost

Warranty repairs===External failure cost

Statistical process control===Prevention cost

Net cost of scrap===Internal failure cost

Depreciation of test equipment===Prevention cost

Return and allowances arising from poor quality===External failure cost

Disposal of defective products===Internal failure cost

Technical support to suppliers===Prevention cost

Systems development===Prevention cost

Warranty replacements===External failure cost

Field testing at customer site===Prevention cost

Product design===Appraisal cost

2a) Appraisal Costs and Prevention Costs.

Explanation :- Appraisal costs are cost incurred in inspecting the quality of products before they reach the end user.

Prevention costs are costs incurred to reduce the number of defective outputs.

2b) External failure costs and Internal failure costs

Explanation :- Internal failure costs are costs incurred in inspecting and separating defective products within the facility.

External failure costs are those costs which are to be occured after the customer raises the request for the replace/restore of products

Product testing===Appraisal cost Product recalls===External failure cost Rework labor and overhead=Internal failure cost Quality circles===Prevention cost Downtime caused by defects===Internal failure cost Cost of field servicing===Prevention cost Inspection of goods===Appraisal cost Quality engineering===Prevention cost Warranty repairs===External failure cost Statistical process control===Prevention cost Net cost of scrap===Internal failure cost Depreciation of test equipment===Prevention cost Return and allowances arising from poor quality===External failure cost Disposal of defective products===Internal failure cost Technical support to suppliers===Prevention cost Systems development===Prevention cost Warranty replacements===External failure cost Field testing at customer site===Prevention cost Product design===Appraisal cost 2a) Appraisal Costs and Prevention Costs. Explanation :- Appraisal costs are cost incurred in inspecting the quality of products before they reach the end user. Prevention costs are costs incurred to reduce the number of defective outputs. 2b) External failure costs and Internal failure costs Explanation :- Internal failure costs are costs incurred in inspecting and separating defective products within the facility. External failure costs are those costs which are to be occured after the customer raises the request for the replace/restore of products