Classify each of the following activities into one of the four cost of quality categories and/or...

Classify each of the following activities into one of the four cost of quality categories and/or identify it as a value-added or a non-value-added activity.

Value-added activity
Non-value-added
Internal failure cost
External failure cost
Appraisal cost
Prevention cost

a. Rework, due to poor materials, on bicycles at Trek

b. Inspection costs incurred by Walmart on merchandise purchased from Mattel, Inc.

c. Costs incurred by Walmart when merchandise, purchased from Grocers, Inc., spoils in its warehouse before shipping to its stores

d. Work in process inventory wait-and-move time between the lathing and finishing stages in a furniture manufacturing facility.

e. Training for line workers on proper operation of equipment.

f. Recording the number of defects produced each month.

g. Offering customer refunds due to defective products.

h. Waste disposal costs at Kimberly-Clark.

Solutions

Expert Solution

Particulars	Cost of quality	Value added/ Non-value added
a. Rework, due to poor materials, on bicycles at Trek	Internal Failure costs	Non Value added
b. Inspection costs incurred by Walmart on merchandise purchased from Mattel, Inc.	Appraisal cost	Value added
c. Costs incurred by Walmart when merchandise, purchased from Grocers, Inc., spoils in its warehouse before shipping to its stores	Internal Failure costs	Non Value added
d. Work in process inventory wait-and-move time between the lathing and finishing stages in a furniture manufacturing facility.	Prevention cost	Value added
e. Training for line workers on proper operation of equipment.	Prevention cost	Value added
f. Recording the number of defects produced each month.	Internal Failure costs	Non Value added
g. Offering customer refunds due to defective products.	External failure cost	Non Value added
h. Waste disposal costs at Kimberly-Clark.	Internal Failure costs	Non Value added

ekkarill92 answered 1 year ago

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