Exercises

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sheet17-22.xls

Exercises

E17−22 (5–10 min)
Cost Type of Quality Cost
a. Costs incurred by Millan customer representatives traveling to customer sites to repair defective products
b. Lost profits from lost sales due to reputation for less–than–perfect products
c. Costs of inspecting components in one of Millan’s production processes
d. Salaries of engineers who are designing components to withstand electrical overloads
e. Costs of reworking defective components after discovery by company inspectors
f. Costs of electronic components returned by customers