Mike Millan, the president, recently instructed vice president Steve Bensen to develop a total quality control program
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Mike Millan, the president, recently instructed vice president Steve Bensen to develop a total quality control program

8. Millan & Co. makes electronic components. Mike Millan, the president, recently instructed vice president Steve Bensen to develop a total quality control program. “If we don’t at least match the quality improvements our competitors are making,” he told Bensen, “we’ll soon be out of business.” Bensen began by listing various “costs of quality” that Millan incurs. The first six items that came to mind were:


Requirement
Classify each item as a prevention cost, an appraisal cost, an internal failure cost, or an external failure cost.
Hint
"External failure costs are incurred when the shipped products fail to conform to quality requirements. They include warranties, repairs, &  lost sales.Internal failure costs are incurred when the products fail to conform to specified requirements before delivery to customers. For example the cost for rework.The prevention costs are incurred when trying to minimize the number of defects i...

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