Hauschlager Corp. produces and supplies automotive manufacturers with the mechanisms used to adju

Hauschlager Corp. produces and supplies automotive manufacturers with the mechanisms used to adjust the positions of front seating units. Several competitors have recently entered the market, and management is concerned that the quality of the company’s current products may be surpassed by the quality of the new competitors’ products. The controller was asked to conduct an analysis of the efforts in January to improve product quality. His analysis generated the following costs of quality:

Training of employees

$22,400

Customer service

13,600

Reinsertion of rework

28,000

Quality audits

31,300

Design review

27,500

Warranty claims

67,100

Sample testing of materials

27,400

Returned goods

98,700

Preventive maintenance

26,500

Quality engineering

18,700

Setup for testing new products

42,100

Scrap and rework

76,500

Losses caused by vendor scrap

65,800

Product simulation

28,400

1. Prepare a detailed analysis of the costs of quality.

2. Comment on the company’s current efforts to improve product quality.

 

 

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Hauschlager Corp. produces and supplies automotive manufacturers with the mechanisms used to adju was first posted on June 30, 2020 at 4:38 am.
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