MGMT 430 Chapter 8 Problem 11: Repack Solutions, Inc. has a distribution center in Cincinnati where it receives and breaks down bulk orders from suppliers' factories, and ships out products to retail customers. Prepare a chart showing the different quality cost categories and percentages for the company's quality costs that were incurred over the past year. See the Excel workbook C8Data.xls for the data, given as follows: Cost Element Checking outbound boxes for errors Quality planning Downtime due to conveyor/computer problems Packaging waste Incoming product inspection Customer complaint rework Correcting erroneous orders before shipping Quality training of associates Quality improvement projects Other waste Correction of typographical errors--pick tickets Total Quality Cost Amount $710,000 12,000 400,000 80,000 60,000 40,000 43,000 30,000 20,000 42,000 13,000 $1,450,00 0 Problem 12: Use Pareto analysis to investigate the quality losses at Nosoco Paper Mill. What conclusions do you reach? See the Excel workbook C8Data.xls for the data, given as follows: Category Downtime Testing costs Rejected paper Odd lot Excess inspection Customer complaints Wasted materials Quality improvement training Total Quality Cost Annual Loss $28,000 12,000 373,000 66,000 21,000 103,000 39,000 8,000 $650,000 Chapter 10 Problem 13: In a filling line at A & C Foods, Ltd., the mean fill volume for rice bubbles is 325 grams and the standard deviation is 20 grams. What percentage of containers will have less than 295 grams? More than 345 grams (assuming no overflow)? Problem 16: Determine the appropriate sample size to estimate the proportion of sorting errors at the Puxatawney Post Office at a 99 percent confidence level. Historically, the sorting error rate is 0.015, and you wish to have an allowable statistical error of 0.02