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Description and costs are listed together.

Quality training $ 4,000

Reliability training $ 20,000

Scrap $ 15,000

Downtime $ 6,000

Transportation losses due to shipment delays $ 8,000

Supplies inspection $ 6,000

Contracted performance testing $ 300,000

Pilot production runs $ 8,000

Reliability testing $ 9,560

Based on the following costs, what is the Cost of Quality (CoQ)? (Note, not all of the costs listed in the table are quality costs). Group the costs into one of the four categories associated with the CoQ (prevention, appraisal, internal failure, external failure). Which of the CoQ cost categories is the highest? Which is the lowest?

Operation Management, Management Studies

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