5 Analyze the cost data in the Excel workbook C08Data.xlsx for the Costcutin Co.

Question

5 Analyze the cost data in the Excel workbook C08Data.xlsx for the Costcutin Co. What percent of sales are represented by each category of cost? What are the implications of these data for management?

Gauge R&R

14 A gauge repeatability and reproducibility study at NEW Gauge, Inc., collected the data for three operators, two trials, and eight parts, as found in the worksheet Prob. 8-14 in the Excel file C08Data.xlsx on the Student Companion Site for this chapter. Analyze these data. The part specification is 1.5 ± 0.1 inches.

https://drive.google.com/file/d/0BwgSr0h0hf6zQVkyWi1SZVNaZnNFVUdwMkZWTU80RWJOck5J/view?usp=sharing

https://docs.google.com/spreadsheets/d/1XY3wJlk3VWnXL-mSHp0VeM9WikV-PbL0FHCghoRp3ds/edit?usp=sharing

Explanation / Answer

5-In the excel sheet for  Costcutin Co.

Quality cost as % of sales in Product A=21%. B=18% and C=12%.So the quality cost across the cost vary according to product and the company has achieved a minimum cost in product C.It shows that product C does not have much quality cost as compare to others product.

If we analyse the cost under 4 breakup then internal is major chunk in product A but this cost gradually lowering in product B and Product C where the % is 31% and 28% respectively.It shows that the company has manage the internal cost which is manageable also.External failure is also highest is product A and this cost cannot be controllable but the company has significantly control it to meagre 10% in product C. The largest chunk of cost in product C is appraisal hence it shows that gradually across the product the company has focused more on appraisal.

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