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At the Beginning of the Year,John Corporation Initiated a Quality

Question 153

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At the beginning of the year,John Corporation initiated a quality improvement program.The program was successful in reducing scrap and rework costs.To help assess the impact of the quality improvement program,the following data were collected for the current and preceding years:
20×120×220×320×4 Reliability engineering $8,000$10,000$15,000$25,000 Quality training 1,0002,0005,0008,000 Packaging inspections 2,0003,0005,0005,000 Product acceptance 12,00010,0009,0007,000 Rework 30,00025,00018,00012,000 Reinspection 75,00065,00048,00029,000 Customer complaints 100,00085,00062,00051,000 Warranty and repair 70,00050,00040,00025,000\begin{array}{lrrrr}&20 \times 1&20 \times 2&20 \times 3&20 \times4\\\text { Reliability engineering } & \$ 8,000 & \$ 10,000 & \$ 15,000 & \$ 25,000 \\\text { Quality training } & 1,000 & 2,000 & 5,000 & 8,000 \\\text { Packaging inspections } & 2,000 & 3,000 & 5,000 & 5,000 \\\text { Product acceptance } & 12,000 & 10,000 & 9,000 & 7,000 \\\text { Rework } & 30,000 & 25,000 & 18,000 & 12,000 \\\text { Reinspection } & 75,000 & 65,000 & 48,000 & 29,000 \\\text { Customer complaints } & 100,000 & 85,000 & 62,000 & 51,000 \\\text { Warranty and repair } & 70,000 & 50,000 & 40,000 & 25,000\end{array}
a.Prepare a multiple-year trend report for overall costs of quality.
b.Prepare a multiple-year trend report for each category of quality costs.
c.Graph the results.

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