Question: The following table provides data on quality losses at Nosoco Paper Mill. Category Annual Loss Downtime $30,000 Testing costs $15,000 Rejected paper $375,000 Odd lot
| The following table provides data on quality losses at Nosoco Paper Mill. | |||||
| Category | Annual Loss | ||||
| Downtime | $30,000 | ||||
| Testing costs | $15,000 | ||||
| Rejected paper | $375,000 | ||||
| Odd lot | $66,000 | ||||
| Inspection | $25,000 | ||||
| Customer complaints | $103,000 | ||||
| Wasted materials | $31,000 | ||||
| Quality improvement training | $10,000 | ||||
| Total Quality Cost | $655,000 | ||||
| a) | Find the percentage of cost for each category in the table above, and the cumulative percentages when the categories are sorted by decreasing costs. | ||||
| b) | Construct a pareto chart of the costs in the table above. (Bar chart sorted from highest to lowest cost.) | ||||
| c) | Identify the quality cost classification for each category in the table above (prevention, appraisal, internal failure, external failure). | ||||
| d) | What are your conclusions and recommendations based on your analysis in parts (a) through (c) above? | ||||
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