(b) The management of Division C has identified the need to achieve cost savings

(b) The management of Division C has identified the need to achieve cost savings in order to become more

competitive. They have decided that an analysis and investigation of quality costs into four sub-categories will

provide a focus for performance measurement and improvement.

Required:

Identify the FOUR sub-categories into which quality costs can be analysed and provide examples (which

must relate to Division C) of each of the four sub-categories of quality cost that can be investigated in order

that overall cost savings might be achieved and hence the performance improved. (8 marks)

(b) Quality costs may be monitored by measuring costs of non-conformance and costs of conformance.Costs of non-conformance occur when the product fails to reach the design quality standards. Such costs may be subpidedinto internal failure costs and exte