Pierre-Paul Appliances identified the following failure costs during 2013:

a. Rearrange the rows in descending order of magnitude based on the Total Dollars column, and prepare a table using Pareto analysis with the following headings:

b. Which products account for almost 80 percent of all failure costs?
c. Focusing on the products identified in (b), prepare a table using Pareto analysis to identify the types of failure causing the majority of failure costs.
Use the following headings for your table:

d. Describe the problem areas for which to use preventive measures first. How, if at all, does this answer reflect the concept of leveragingexpenditures?

Transcribed Image Text:

COST OF FAILURE BY TYPE Product Motor Wiring Housing All Other Total Dollars Blender Mxer Breadmaker 4000 S28,000 $24,000 56,000 $22,560 $130,560 32,000 28,000 3,920 20,480 12,000 9,040 92,480 48,960 32,000 564,000弱5,920ー8,480 3,600 $272,000 Total Product Dollars % of Total Cumulative % of Total Failure Type Dollars % of Total Cumulative % of Total