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:

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.

Transcribed Image Text:

Activities Activity Cost Correcting errors identified by election commission Correcting jams Correcting scan errors Loading Logging-in control codes (for later reconciliation) Program scanner Rerunning job due to scan reading errors Scanning Verifying scan accuracy via reconciling totals Verifying scanner accuracy with test run Total $130,000 110,000 60,000 25,000 20,000 30,000 30,000 60,000 20,000 15,000 $500,000