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HNW Ltd
HNW Ltd -What Are HNW's Total Internal Failure Costs?
A) $ 50

question 21

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HNW Ltd.
HNW Ltd. manufactures and sells food processors. A popular consumer magazine has recently evaluated food processors and has ranked HNW’s processors as being of ‘poor quality’. As a result, HNW’s management team has begun to analyse all costs associated with their food processors in more detail, and the following data has been compiled:
 Scrap costs $80000 Quality training 75000 Warranty claims 100000 Rework costs 50000 Inspection of incoming materials 30000 Product quality audits 60000 Statistical nrocess control 40000\begin{array}{lr}\text { Scrap costs } & \$ 80000 \\\text { Quality training } & 75000 \\\text { Warranty claims } & 100000 \\\text { Rework costs } & 50000 \\\text { Inspection of incoming materials } & 30000 \\\text { Product quality audits } & 60000 \\\text { Statistical nrocess control } & 40000\end{array}
-What are HNW's total internal failure costs?

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Definitions:

Chocolate Bar

A confectionery product made primarily from chocolate and often formed into a rectangular shape.

Metal

Metal is a category of elements or substances characterized by a shiny appearance, conductivity of heat and electricity, and the ability to be shaped under pressure or heat.

Painful Injury

Physical harm or damage to a person's body that results in significant pain or discomfort.

Highly Corrosive

Describes substances that can cause severe damage to materials, tissues, or surfaces through chemical action.

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