# Percentage

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Repack Solutions, Inc. has a distribution center in Cincinnati where it receives and breaks down bulk orders from suppliers' factories, and ships out products to retail customers. Prepare a chart showing the different quality cost categories and percentages for the company's quality costs that were incurred over the past year. What suggestions would you make to management?

Cost Element Amount ($)

Checking outbound boxes for errors 710,000

Quality planning 12,000

Downtime due to conveyor/computer problems 400,000

Packaging waste 80,000

Incoming product inspection 60,000

Customer complaints rework 40,000

Correcting erroneous orders before shipping 43,000

Quality training of associates 30,000

Quality improvement projects 20,000

Other waste 42,000

Correction of typographical errors--pick tickets 13,000

Total Quality Cost 1,450,000

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