Reference no: EM132690784
Problem - Pareto chart and cost of quality report-municipality
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:
Activities - Activity Cost
Correcting errors identified by election commission $130,000
Correcting jams 110,000
Correcting scan errors 60,000
Loading 25,000
Logging-in control codes (for later reconciliation) 20,000
Program scanner 30,000
Rerunning job due to scan reading errors 30,000
Scanning 60,000
Verifying scan accuracy via reconciling totals 20,000
Verifying scanner accuracy with test run 15,000
Total $500,000
Instructions -
1. Prepare a Pareto chart of the department activities.
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.
3. Determine the percentages of the total department costs that are value- and non-value-added.
4. Interpret the information.