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Pareto Chart and Cost of Quality Report —Municipality Company The administrator

ID: 2470684 • Letter: P

Question

Pareto Chart and Cost of Quality Report—Municipality Company

The administrator of elections for the city of Madisonville has been asked to perform an activity analysis of its optical scanning center. The optical scanning center reads voter forms into the computer. The result of the activity analysis is summarized as follows:

1. On paper or in a spreadsheet program, prepare a Pareto chart for each of the activities listed above. Answer the following:

What type of chart is a Pareto chart?
SelectBar chartLine chartOrganization chartPie chartItem 1

Which activity appears first, in order from left to right?
SelectCorrecting scan errorsCorrecting errors identified by election commissionLoadingRerunning job due to scan reading errorsVerifying scan accuracy via reconciling totalsItem 2

2. Use the activity cost information to determine the percentages of total department costs that are prevention, appraisal, internal failure, external failure, and not costs of quality. If required, round percentages to one decimal place.

3. Determine the percentages of total department costs that are value-added and non-value-added. If required, round percentages to one decimal place.

Activity Activity Cost Correcting errors identified by election commission $17,760 Correcting jams 14,800 Correcting scan errors 35,520 Loading 29,600 Logging-in control codes (for later reconciliation) 20,720 Program scanner 5,920 Rerunning job due to scan reading errors 26,640 Scanning 20,720 Verifying scan accuracy via reconciling totals 106,560 Verifying scanner accuracy with test run 17,760 Total $296,000

Explanation / Answer

Answer to Q.1:

Pareto Chart is Bar Chart .

'Verifying scan accuracy via reconciling totals' activity appears first, in order from left to right.

Answer to Q.2: Determination of the percentages of activity costs to total department costs:

Answwer to Q.3: Percentages of total department costs that are value-added and non-value-added.

Quality Cost Classification Activity Cost ($) % of total department cost Prevention 130240 44 Appraisal 41440 14 Internal Failure 50320 17 External Failure 44400 15 Not a cost of quality 29600 10 Total 296000 100
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