Classify the following cost elements into the appropriate cost of quality categories, prepare a Pareto chart for the categories, interpret the results, and provide recommendations.

Cost Element ___________________________ Amount

Customer complaint remakes ........................ $ 81,000

Printing plate revisions .................................. 28,000

Quality improvement projects........................... 14,000

Gauging .................................................... 90,000

Other waste ................................................. 39,000

Correction of typographical errors....................... 55,000

Proofreading............................................ 350,000

Quality planning ............................................ 57,000

Press downtime ............................................ 185,000

Bindery waste..................................................... 53,000

Checking and inspection ..................................... 42,000

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Cost classification: EXTERNAL FAILURE $ 81,000 INTERNAL FAILURE 28,000 14,000 90,000 INTERNAL FAILURE 39,000 55,000 350,000 er complaint remakes Printing plate revisions mprovement projects Gauging Other waste Correction of typographical errors INTERNAL FAILURE Proofreading APPRAISAL APPRAISAL Quality planning Press downtime Bindery waste Checking and inspection PREVENTION INTERNAL FAILURE 185,000 INTERNAL FAILURE 53,000 APPRAISAL 57,000 42,000 Total Prevention costs: $71,000 Total Appraisal costs: $482,000 Total Internal failure costs: $360,000 Total External failure costs: $81,000 Total Quality Cost: $994,000