In a printing company, data from the previous month show the following types of errors, with the
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Question:
In a printing company, data from the previous month show the following types of errors, with the unit cost (in dollars) of rectifying each error. Construct a Pareto Chart and discuss the results. If management has monthly allocation of 18,000, which areas should they tackle? (Hint: what is the total cost) | ||
Error categories | Frequency | Unit Costs |
Inadequate Binding | 120 | 100 |
Paper tension | 80 | 50 |
Paper Misalignment | 100 | 30 |
Proofreading | 3500 | 0.5 |
Typographical | 4000 | 0.2 |
- Make a Pareto Chart regarding the data about types of error in a printing company (Hint: the pareto chart need to be created based on the total cost, only unit costs is given currently). Discuss the results found based on the pareto chart: if management has monthly allocation of $18,000, which areas should they tackle? Provide step by step process in excel)
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