Show me the steps to solve Problem $2.(20$ marks$)$

Classify the following cost elements into four categories of cost of quality. Apply Pareto Analysis and provide recommendations.

A$)$ National Computer Sales

$\backslash$begin$\{$tabular$\}\{|$l$|$c$|\}$

$\backslash$hline Cost Element & SAnnual Loss $\backslash \backslash$

$\backslash$hline Customer returns & $120000\backslash \backslash$

$\backslash$hline Inspection costs $-$ outgoing & $35000\backslash \backslash$

$\backslash$hline Inspection costs $-$ incoming & $15000\backslash \backslash$

$\backslash$hline Workstation downtime & $50000\backslash \backslash$

$\backslash$hline Training$/$system improvement & $30000\backslash \backslash$

$\backslash$hline Rework costs & $50000\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

B$)$ Jeans Are Us$,$ Inc.

$\backslash$begin$\{$tabular$\}\{|$l$|$c$|\}$

$\backslash$hline Cost Element & Amount $(\backslash$$$)\backslash \backslash$

$\backslash$hline Checking outbound boxes for errors & $710000\backslash \backslash$

$\backslash$hline Quality planning & $10000\backslash \backslash$

$\backslash$hline Downtime due to conveyor$/$computer problems & $405000\backslash \backslash$

$\backslash$hline Packaging waste & $75000\backslash \backslash$

$\backslash$hline Incoming product inspection & $60000\backslash \backslash$

$\backslash$hline Customer complaint rework & $40000\backslash \backslash$

$\backslash$hline Correcting erroneous orders before shipping & $40000\backslash \backslash$

$\backslash$hline Quality training of associates & $30000\backslash \backslash$

$\backslash$hline Quality improvement projects & $20000\backslash \backslash$

$\backslash$hline Other waste & $55000\backslash \backslash$

$\backslash$hline Correction of typographical errors$--$pick tickets & $10000\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$