A business in the upper Midwest is trying to analyze its quality costs. Its accounting, shipping,...

 

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A business in the upper Midwest is trying to analyze its quality costs. Its accounting, shipping, inspection, and legal departments have put together the following data for its defective categories. Categorize the data into appropriate categories of quality costs. Draw a Pareto chart to analyze the company's quality costs, and suggest how the company should go about dealing with its quality problems. Cost Categories Inspecting boxes Eqpt. downtime Pkg. waste Income. insp. Error correction Other waste Cust. complaints Qual, train, assoc. Improvement proj. Typo corrrections Quality planning Total Cost $765,000 452,500 130,000 110,000 93,000 92,500 90,000 80,500 70,000 63,500 62,500 $2,009,500 A business in the upper Midwest is trying to analyze its quality costs. Its accounting, shipping, inspection, and legal departments have put together the following data for its defective categories. Categorize the data into appropriate categories of quality costs. Draw a Pareto chart to analyze the company's quality costs, and suggest how the company should go about dealing with its quality problems. Cost Categories Inspecting boxes Eqpt. downtime Pkg. waste Income. insp. Error correction Other waste Cust. complaints Qual, train, assoc. Improvement proj. Typo corrrections Quality planning Total Cost $765,000 452,500 130,000 110,000 93,000 92,500 90,000 80,500 70,000 63,500 62,500 $2,009,500

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To draw a Pareto chart which is a graphical representation of the Pareto principle also known as the 8020 rule we need to organize the data into a descending order based on costs This chart is used to ... View the full answer