A Company Is Considering Spending the Following on a New

question 104

Essay

A company is considering spending the following on a new quality improvement program:
$\begin{array}{ll}\text { Inspect raw materials } & \$ 123,000 \\\text { Reengineer to improve product quality } & 760,000 \\\text { Inspect finished goods } & 150,000 \\\text { Preventive maintenance of eouibment } & 140,000\end{array}$ The company expects this quality program to reduce costs by the following amounts:
$\begin{array}{ll}\text { Avoid lost profits due to unhappy customers } & \$ 910,000 \\\text { Fewer sales returns } & 65,000 \\\text { Decrease the cost of rework } & 155,000 \\\text { Lower warrantv costs } & 54,000\end{array}$ Group each cost under the four categories of quality management systems.Comment whether the company should undertake the quality improvement program.

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Definitions:

Males

Biological category of the sex that produces small, mobile gametes, typically associated with the XY chromosome configuration in humans.

Females

Refers to the sex of an organism, or a member of a species, that is typically associated with certain reproductive structures and functions.

Agents of Socialization

Individuals, groups, and institutions that shape an individual's social development and norms through social interaction.

Institutions

Established and enduring patterns of social order that govern the behavior and expectations of individuals within a society.