Reference no: EM131139306

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: Activity Activity Cost Correcting errors identified by election commission $17,280 Correcting jams 14,400 Correcting scan errors 40,320 Loading 34,560 Logging-in control codes (for later reconciliation) 23,040 Program scanner 5,760 Rerunning job due to scan reading errors 25,920 Scanning 20,160 Verifying scan accuracy via reconciling totals 92,160 Verifying scanner accuracy with test run 14,400 Total $288,000 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? Which activity appears first, in order from left to right? 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. Quality Cost Classification Activity Cost Percent of Total Department Cost Prevention $ % Appraisal % Internal failure % External failure % Not a cost of quality % Total $ % 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 Cost Percent of Total Department Cost Value-added $ % Non-value-added % Total $ % 4. The department has 34% of its total costs as . costs represent 28% of the total costs. This means there is opportunity for cost savings. costs represent 6% of the total department costs.