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Chapter 2: Q7OQ (page 312)

Question:The following table lists all costs of quality incurred by Sam鈥檚 Surf Shop last year. What was Sam鈥檚 appraisal cost for quality last year?

Annual inspection cost

\(155,000

The annual cost of scarp materials

\)286,000

Annual rework cost

\(34,679

The annual cost of quality training

\)456,000

Annual warranty cost

\(1,546,000

Annual testing cost

\)543,000

Short Answer

Expert verified

Answer

The appraisal cost for Sam will be $698,000.

Step by step solution

01

About Appraisal cost

The Appraisal cost is a fee that is paid to a person or an expert for detecting any default in the final product before selling it to the customers

02

Calculate the Appraisal cost

The formula to calculate the appraisal cost,

Appraisal cost =Annual inspection cost + Annual testing cost

= $155,000 + $543,000

= $698,000.

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Most popular questions from this chapter

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Question: Francis Johnson鈥檚 plant needs to design an efficient assembly line to make a new product. The assembly line needs to produce 15 units per hour, and there is room for only four workstations. The tasks and the order in which they must be performed are shown in the following table. Tasks cannot be split, and it would be too expensive to duplicate any task.

Task

Task Time

(Minutes)

Immediate

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A

1

-

B

2

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C

3

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D

1

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E

3

C

F

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E

G

3

E

a. Draw the precedence diagram.

b. What is the workstation cycle time required to produce 15 units per hour?

c. Balance the line so that only four workstations are required. Use whatever method you feel is appropriate.

d. What is the efficiency of your line balance, assuming the cycle time from part (b)?

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