Construct a pareto diagram for the analysis

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Reference no: EM131881306

  1. Construct a Pareto diagram for the analysis of the external failure costs for a wireless telephone manufacturer using the following data:

Type of Cost

Dollars (in Thousands)

Customer Complaints

20

Returned Goods

30

Retrofit costs

50

Warranty claims

90

Liability costs

10

Penalties

5

Customer goodwill

25

Interpret the diagram and describe the managerial implications of this analysis.

  • You must provide a proper interpretation of the results (such as that of Scatter plot and Pareto diagram)

2. Draw a fishbone diagram to determine the root causes of inventory stock out in a wholesale distribution environment. OR, if you work for a manufacturing firm, you can create the similar diagram to determine the root causes of stock out of raw materials.

  • You must provide a proper interpretation of the results (such as that of Scatter plot and Pareto diagram

Reference no: EM131881306

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