Question: 1. The cost data found in spreadsheet Ch08DataInsRsv.xlsx was taken from a paper manufacturing process at Oakton Paper Company by cost category. Prepare a spreadsheet
1. The cost data found in spreadsheet Ch08DataInsRsv.xlsx was taken from a paper manufacturing process at Oakton Paper Company by cost category. Prepare a spreadsheet and perform graphical analysis to show the significant few cost categories on which Oakton should concentrate. Based on your analysis make a recommendation for management on how they should act to improve quality.
| Problem 8-05 - Instructor Reserve | |
| Oakton Paper Co. | |
| Category | Annual Loss |
| Downtime | $28,000 |
| Testing costs | 14,000 |
| Rejected paper | 375,000 |
| Odd lot | 70,000 |
| Excess inspection | 21,000 |
| Customer complaints | 105,000 |
| Wasted materials | 39,000 |
| Quality improvement training | 8,000 |
| $660,000 | |
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