1.

Classify the cost elements shown below for the Impressive Printing Company into the proper quality cost categories.

Cost Element	Amount	Quality Cost Category
Customer complaint remakes	$24,400	-Select-AppraisalExternal failureInternal failurePreventionItem 1
Printing plate revisions	$24,500	-Select-AppraisalExternal failureInternal failurePreventionItem 2
Quality improvement projects	$14,800	-Select-AppraisalExternal failureInternal failurePreventionItem 3
Gauging	$100,000	-Select-AppraisalExternal failureInternal failurePreventionItem 4
Other waste	$31,900	-Select-AppraisalExternal failureInternal failurePreventionItem 5
Correction of typographical errors	$178,000	-Select-AppraisalExternal failureInternal failurePreventionItem 6
Proofreading	$368,000	-Select-AppraisalExternal failureInternal failurePreventionItem 7
Quality planning	$53,100	-Select-AppraisalExternal failureInternal failurePreventionItem 8
Press downtime	$264,700	-Select-AppraisalExternal failureInternal failurePreventionItem 9
Bindery waste	$53,600	-Select-AppraisalExternal failureInternal failurePreventionItem 10
Checking and inspection	$31,400	-Select-AppraisalExternal failureInternal failurePreventionItem 11

Find the total quality cost by category and percentage of total quality cost by category. Do not round intermediate calculations. Round the monetary values to the nearest dollar and percentage values to two decimal places.

		Percentage of Total
Quality Cost Category	Total Amount	Quality Cost
Prevention	$	%
Appraisal	$	%
Internal failure	$	%
External failure	$	%

2.

Analysis of customer complaints at an e-commerce retailer revealed the following:

Billing errors:	1,469
Shipping errors:	932
Electronic charge errors:	601
Shipping delays:	2,974
Packing errors:	1,965

The data has been sorted for your convenience. Calculate the percent of total complaints for each category of errors. Round your answers to two decimal places.

Name	Amount	Percent of Total
Shipping delays	2,974	%
Packing errors	1,965	%
Billing errors	1,469	%
Shipping errors	932	%
Electronic charge errors	601	%

3.

The following cost-of-quality data were collected at the installment loan department of the Kenney Bank. Classify these data into the appropriate cost-of-quality categories.

	Quality Cost	Amount		Cost Classification
	Loan Processing
1.	Run credit checks:	$2,554.33		-Select-AppraisalExternal failureInternal failurePreventionItem 1
2.	Review documents:	$3,349.33		-Select-AppraisalExternal failureInternal failurePreventionItem 2
3.	Make document corrections; gather additional information:	$1,191.35		-Select-AppraisalExternal failureInternal failurePreventionItem 3
4.	Prepare tickler file; review and follow up on titles,	$196.30		-Select-AppraisalExternal failureInternal failurePreventionItem 4
	insurance, second meetings:
5.	Review all output:	$2,708.94		-Select-AppraisalExternal failureInternal failurePreventionItem 5
6.	Correct rejects and incorrect output:	$481.90		-Select-AppraisalExternal failureInternal failurePreventionItem 6
7.	Reconcile incomplete collateral report:	$76.84		-Select-AppraisalExternal failureInternal failurePreventionItem 7
8.	Handle dealer problem calls; address associate problems;	$2,985.00		-Select-AppraisalExternal failureInternal failurePreventionItem 8
	research and communicate information:
9.	Compensate for system downtime:	$504.17		-Select-AppraisalExternal failureInternal failurePreventionItem 9
10.	Conduct training:	$1,575.00		-Select-AppraisalExternal failureInternal failurePreventionItem 10
	Loan Payment
1.	Receive, inspect, and process payments:	$840.00		-Select-AppraisalExternal failureInternal failurePreventionItem 11
2.	Respond to inquiries when no coupon is presented with payments:	$814.05		-Select-AppraisalExternal failureInternal failurePreventionItem 12
	Loan Payoff
1.	Receive, inspect, and process payoff and release documents:	$209.97		-Select-AppraisalExternal failureInternal failurePreventionItem 13
2.	Research payoff problems:	$15.60		-Select-AppraisalExternal failureInternal failurePreventionItem 14

Calculate the amount and the percent of total. Do not round intermediate calculations. Round the monetary values to the nearest cent and percentage values to two decimal places.

		Percentage of
Quality Cost Category	Total Amount	Total Quality Cost
Prevention	$	%
Appraisal	$	%
Internal failure	$	%
External failure	$	%

Use the Excel Pareto template to construct a Pareto chart and choose the correct Pareto diagram.

The correct Pareto chart is -Select-chart Achart Bchart Cchart DItem 23 .

A.
B.
C.
D.

What suggestions would you make to management?

-Select-AppraisalExternal failureInternal failurePreventionItem 24 activities appear to be keeping failure costs relatively low; however the cost of these activities can be lowered by -Select-better appraisalbetter preventionfaster fixing of external failuresfaster fixing of internal failuresItem 25 .