Module 5: Critical Thinking Step

Springfield Products needs to identify the financial consequences of a new quality initiative. Using the provided data, complete the quality report.

Required: Using the Data tab in the attached spreadsheet, complete the Calculations tab. Fill in all the highlighted areas.

Follow the instructions you see on the Data tab of the worksheet (found in Module 5 or by clicking “Next” at the bottom of this page and the subsequent page). Show all calculations within the cells of the Excel spreadsheet. This means that you must use formulas and links so that your thought process can be examined. There should be no hard coding of solutions.

Review the grading rubric to understand how you will be graded on this assignment. Reach out to your instructor if you have questions about the assignment.

Data

Week 5 option 2 Springfield Products needs to identify the financial consequences of a new quality initiative. Using the provided data, complete the Quality Report. Costs Allocation Rate Quantity of Costs Allocation Base Customer Support 73 per hour 9,000 hours Design Engineering 110

per hour

5,500

hours
Inspection (manufacturing) 60

per hour

39,000

hours
Process Engineering 80

per hour

6,500

hours
Rework 90

per hour

11,000

hours
Transportation 350

per hour

4,500 loads Warranty Repair 150

per hour

11,300

hours
Revenue 60,000,000

Required: Using the Data tab in the attached spreadsheet, complete the

Calculations

tab. Fill in all the highlighted areas.

1) 2) `

Calculations

Costs Allocation Rate Quantity of Costs Allocation Base

Revenue
per hour

per hour

per hour

per hour

per hour
per hour
per hour

Total Costs of Quality

COQ Report		Total Costs of Quality	Percentage of Revenue
Prevention Costs
Total Prevention Costs
Appraisal Costs
Total Appraisal Costs
Internal Failure Costs
Total Internal Failure Costs
External Failure Costs
Total External Failure Costs
]