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Internal Reports on Quality at the Acme Publishing Company Generated

question 67

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Internal reports on quality at the Acme Publishing Company generated the following information for the Trade Division for the first three months of the year:
Total sales$1,000,000Costs of quality: Prevention 50,000 Appraisal 47,000 Internal failure 36,000 External failure 64,000 \begin{array}{ll}\text{Total sales}&\$ 1,000,000\\\text{Costs of quality:}&\\\text { Prevention } & 50,000 \\ \text { Appraisal } & 47,000 \\ \text { Internal failure } & 36,000 \\ \text { External failure } & 64,000\end{array}
Compute the ratio of costs of nonconformance to total costs of quality.


Definitions:

Extrinsic Motivation

The drive to act based on external rewards or pressures rather than personal desire or interest.

Self-Efficacy

A belief in one's ability to succeed in specific situations or accomplish a task.

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