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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