Use Pareto analysis to investigate the quality losses at Basawas Paper Converters, using data in the worksheet Prob03-05 in the Excel workbook Ch03Data.xlsx on the Student Companion website. What conclusions might a Six Sigma team leader reach?

 

Basawas Paper Converters
	QUALITY COSTS AND PERCENTAGES				ORIGINAL DATA
	Percent	Cumulative %	Cost		Category	$Annual Loss
Rejected paper	56.60%	56.60%	300000		Downtime	23000
Customer complaints	15.85%	72.45%	84000		Testing costs	12000
Odd lot	10.57%	83.02%	56000		Rejected paper	300000
High material costs	6.04%	89.06%	32000		Odd lot	56000
Downtime	4.34%	93.40%	23000		Excess inspection	16000
Excess inspection	3.02%	96.42%	16000		Customer complaints	84000
Testing costs	2.26%	98.68%	12000		High material costs	32000
Quality Imprv. Trng.	1.32%	100.00%	7000		Quality improvement training	7000
Total Costs			530000		Total	530000