Question: Directions: Answer all the following questions based on given situation. Starlight Homes Inc. is a building contractor specializing in upscale homes in the Southwest. Before
Directions: Answer all the following questions based on given situation. Starlight Homes Inc. is a building contractor specializing in upscale homes in the Southwest. Before each new home is sold, Starlight conducts a final inspection of the home and repairs any defects. In addition, Starlight receives a punch list of defects (to be corrected) compiled by the buyers following the sale. The company revenues have dipped down by 20% (USD 100 million in 2018 to USD 80 million in 2020, Its net promoter score has come down by 30%, They set up a target to achieve revenue target of USD 120 million by 2022. Alex, Starlights lead supervisor, has concluded that even if it should cost more to do the work right in the first place, it will be a lot cheaper than going back later to fix the defects. In an effort to reduce costs, improve the quality of Starlights homes, and reduce the number of complaints after the sale, Alex has assembled data from his final inspections and the punch lists for the last 20 homes sold. These data are listed in the following table: Construct a Pareto chart to illustrate the defect types by number of defects. Which two defect types appear to be the most significant? Should Alex focus his attention on these two categories of defects? Why? (15 MARKS)
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