2. (12 points) Match the following quality costs with their appropriate category. Serap and rework A. Prevention costs B. Detection’appraisal costs Warranty repairs C. Intermal failure costs D. External failure costs Inspection equipment and labor Improving the product design More capable equipment Where spend money to improve quality and decrease total costs
Expert Answer
a. Scrap and rework are internal failure cost as these are the costs which are incurred to reduce defect before shipping.
b. Warranty repairs are external failure cost as it occurs after the delivery to the customer which can be a defect or damage to the
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