The Costs of Quality at CanAm Construction Ltd

question 183

Essay

The costs of quality at CanAm Construction Ltd.for the current year are as follows:
Some information from a competitor, Canada Wide Construction (CWC), has been provided.CWC's costs of quality (as a percentage of total costs of quality)are 30% on external failure, 35% on internal failure, 20% on appraisal and the rest on prevention.Required:
a.Prepare a cost of quality report for the year including calculations of each cost category as a percentage of total costs of quality.
b.Compare CanAm's approach to quality management to CWC's.Comment on your findings.(What are the implications of the differences?)

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