Classify the activities into prevention, appraisal, internal failure, external failure, and not costs of quality (producing product) Classify the activities into value added and non value added activities Activity Activity Cost Cost of Quality Classification VA NVA Correcting invoice errors $13,840 External failure Appraisal External failure Internal failure Not a quality cost Prevention Non value added Non value added Value added Disposing of incoming materials with poor quality 10,380 Internal failure Appraisal External failure Internal failure Not a quality cost Prevention Non value added Non value added Value added Disposing of scrap 51,900 Internal failure Appraisal External failure Internal failure Not a quality cost Prevention Non value added Non value added Value added Expediting late production 44,980 Internal failure Appraisal External failure Internal failure Not a quality cost Prevention Non value added Non value added Value added Final inspection 27,680 Appraisal Appraisal External failure Internal failure Not a quality cost Prevention Value added Non value added Value added Inspecting incoming materials 6,920 Appraisal Appraisal External failure Internal failure Not a quality cost Prevention Value added Non value added Value added Inspecting work in process 34,600 Appraisal Appraisal External failure Internal failure Not a quality cost Prevention Value added Non value added Value added Preventive machine maintenance 24,220 Prevention Appraisal External failure Internal failure Not a quality cost Prevention Value added Non value added Value added Producing product 110,720 Not a quality cost Appraisal External failure Internal failure Not a quality cost Prevention Value added Non value added Value added Responding to customer quality complaints 20,760 External failure Appraisal External failure Internal failure Not a quality cost Prevention Non value added Non value added Value added Total $346,000 2 On paper or in a spreadsheet program, prepare a Pareto chart for each of the activities listed above Answer the following What type of chart is a Pareto chart Bar chart Bar chart Line chart Organization chart Pie chart Which activity appears first, in order from left to right Producing product Disposing of scrap Correcting invoice errors Expediting late production Inspecting work in process Producing product 3 Use the activity cost information to determine the percentages of total department costs that are prevention, appraisal, internal failure, external failure, and not The cost associated with controlling quality (prevention and appraisal) and failing to control quality (internal and external failure)costs of quality If required, round percentages to one decimal place Quality Cost Classification Activity Cost Percent of Total Department Cost Prevention $ Appraisal Internal failure External failure Not a cost of quality Total $ 4 Determine the percentages of total department costs that are value added and non value added If required, round percentages to one decimal place Activity Cost Percent of Total Department Cost Value added $ Non value added Total $

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Question: Classify the activities into prevention, appraisal, internal failure, external failure, and not costs of quality (producing product). Classify the activities into value-added and non-value added

Classify the activities into prevention, appraisal, internal failure, external failure, and not costs of quality (producing product). Classify the activities into value-added and non-value added activities.

Activity	Activity Cost	Cost of Quality Classification	VA/NVA
Correcting invoice errors	$13,840	External failure Appraisal External failure Internal failure Not a quality cost Prevention	Non-value-added Non-value-added Value-added
Disposing of incoming materials with poor quality	10,380	Internal failure Appraisal External failure Internal failure Not a quality cost Prevention	Non-value-added Non-value-added Value-added
Disposing of scrap	51,900	Internal failure Appraisal External failure Internal failure Not a quality cost Prevention	Non-value-added Non-value-added Value-added
Expediting late production	44,980	Internal failure Appraisal External failure Internal failure Not a quality cost Prevention	Non-value-added Non-value-added Value-added
Final inspection	27,680	Appraisal Appraisal External failure Internal failure Not a quality cost Prevention	Value-added Non-value-added Value-added
Inspecting incoming materials	6,920	Appraisal Appraisal External failure Internal failure Not a quality cost Prevention	Value-added Non-value-added Value-added
Inspecting work in process	34,600	Appraisal Appraisal External failure Internal failure Not a quality cost Prevention	Value-added Non-value-added Value-added
Preventive machine maintenance	24,220	Prevention Appraisal External failure Internal failure Not a quality cost Prevention	Value-added Non-value-added Value-added
Producing product	110,720	Not a quality cost Appraisal External failure Internal failure Not a quality cost Prevention	Value-added Non-value-added Value-added
Responding to customer quality complaints	20,760	External failure Appraisal External failure Internal failure Not a quality cost Prevention	Non-value-added Non-value-added Value-added
Total	$346,000

2. On paper or in a spreadsheet program, prepare a Pareto chart for each of the activities listed above. Answer the following:

What type of chart is a Pareto chart? Bar chart

Bar chart
Line chart
Organization chart
Pie chart

Which activity appears first, in order from left to right? Producing product

Disposing of scrap
Correcting invoice errors
Expediting late production
Inspecting work in process
Producing product

3. Use the activity cost information to determine the percentages of total department costs that are prevention, appraisal, internal failure, external failure, and not The cost associated with controlling quality (prevention and appraisal) and failing to control quality (internal and external failure)costs of quality. If required, round percentages to one decimal place.

Quality Cost Classification	Activity Cost	Percent of Total Department Cost
Prevention	$	%
Appraisal		%
Internal failure		%
External failure		%
Not a cost of quality		%
Total	$	%

4. Determine the percentages of total department costs that are value-added and non-value-added. If required, round percentages to one decimal place.

	Activity Cost	Percent of Total Department Cost
Value-added	$	%
Non-value-added		%
Total	$	%

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