1. Analyze the cost data for the Cost-busters Company. What percent of sales are represented by each...
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Question:
1. Analyze the cost data for the Cost-busters Company. What percent of sales are represented by each category of cost for each product? What are the dollar costs for each cost of quality category, by product? How might this information be used to help define a Six Sigma project?
2. Prepare a pie chart showing the different quality cost categories and percentages for the Great Press Printing Company. See the data. How might this information be used to help define a Six Sigma project?
Costbusters Company | |||
Total Sales | $1,229,800 | $746,880 | $1,117,700 |
Costs as % of Sales | 24 | 19 | 15 |
% of Quality Costs by Product | |||
Product A | Product B | Product C | |
External failure | 35% | 22% | 8% |
Internal failure | 52% | 29% | 24% |
Appraisal | 10% | 38% | 38% |
Prevention | 3% | 11% | 30% |
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