What can be learned from the report?,”The costs of quality report shows that very little is being spent on prevention and appraisal
which is probably why the internal and external failure costs are so high. It appears that the company is inspecting the product half-way through the production process and not again at the end of the process. Perhaps that is the reason their external failure costs are so high.The CEO should use this information to develop quality initiatives in the areas of prevention and appraisal. Such initiatives should reduce future internal failure and external failure costs.”