Module 5: Critical Thinking Step

Week5option2.xlsx

Data

Week 5 option 2
Springfield Products needs to identify the financial consequences of a new quality initiative.
Using the provided data, complete the Quality Report.
	Costs Allocation Rate		Quantity of Costs Allocation Base
Customer Support	73	per hour	9,000	hours
Design Engineering	110	per hour	5,500	hours
Inspection (manufacturing)	60	per hour	39,000	hours
Process Engineering	80	per hour	6,500	hours
Rework	90	per hour	11,000	hours
Transportation	350	per hour	4,500	loads
Warranty Repair	150	per hour	11,300	hours
Revenue	60,000,000
Required: Using the Data tab in the attached spreadsheet, complete the Calculations tab. Fill in all the highlighted areas.
1)
2)		`

COQ Report	Costs Allocation Rate		Quantity of Costs Allocation Base	Total Costs of Quality	Percentage of Revenue
Revenue
Prevention Costs
		per hour
		per hour
Total Prevention Costs
Appraisal Costs
		per hour
Total Appraisal Costs
Internal Failure Costs
		per hour
Total Internal Failure Costs
External Failure Costs
		per hour
		per hour
		per hour
Total External Failure Costs
Total Costs of Quality
					]