Mercury, Incorporated, produces cell phones at its plant in Texas. A year ago, a consumer...
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Mercury, Incorporated, produces cell phones at its plant in Texas. A year ago, a consumer survey ranked the companys cell phones low in product quality. Shocked by this result, Jorge Gomez, Mercurys president, set up a task force to implement a formal quality improvement program. Included on this task force were representatives from the Engineering, Marketing, Customer Service, Production, and Accounting departments. After working together for a year, the task force prepared the quality cost report shown below: Mercury, Incorporated Quality Cost Report in thousands Last Year This Year Prevention costs: Machine maintenance $ $ Training suppliers Quality circles Total prevention cost
Mercury, Incorporated, produces cell phones at its plant in Texas. A year ago, a consumer survey ranked the companys cell phones low in product quality. Shocked by this result, Jorge Gomez, Mercurys president, set up a task force to implement a formal quality improvement program. Included on this task force were representatives from the Engineering, Marketing, Customer Service, Production, and Accounting departments. After working together for a year, the task force prepared the quality cost report shown below:
Mercury, Incorporated
Quality Cost Report
in thousands
Last Year This Year
Prevention costs:
Machine maintenance $ $
Training suppliers
Quality circles
Total prevention cost
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