Nidek Manufactures Sportswear

question 34

Essay

Nidek manufactures sportswear. Classify each of the following quality costs as prevention, appraisal, internal failure or external failure.
a. Disposal of spoiled work in process
b. Downtime due to quality problems
c. Expediting work to meet delivery schedule
d. Field testing
e. Maintaining a complaint department
f. Product liability
g. Quality training
h. Reinspection
i. Rework direct manufacturing labour and overhead
j. Scrap
k. Testing and inspecting of machinery
l. Testing and inspecting of direct materials
m. Utilities in inspection area of plant
n. Warranty repairs

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Definitions:

International Production

Creating goods in multiple countries around the globe, often to minimize costs or maximize quality.

Direct Exporting

Direct exporting refers to the process by which a company sells its products directly to buyers in a foreign market without intermediaries.

North American Free Trade Agreement

An agreement among the United States, Canada, and Mexico designed to remove tariff barriers between the three countries.

NAFTA Member Nations

The countries that are part of the North American Free Trade Agreement, aimed at reducing trading costs, increasing business investment, and helping North America be more competitive in the global marketplace.