This exercise will permit you to use the tools presented in the unit. It is understood that you can easily find applications and examples of these tools through an internet search. Don’t copy anyone else’s examples – this can be cheating. Try to be creative and think of applications to your work, school, or life in general. If you cite a source, please list it at the end of your report. The charts, diagrams, checklist, etc. can be done using Excel, Word, or PowerPoint. They may be hand- sketched and scanned as well.

Construct a Pareto diagram for the analysis of the external failure costs for a wireless telephone manufacturer using the following data:

Type of Cost Dollars (in Thousands) 

Customer complaints 20

Returned goods 30

Retrofit costs 50

Warranty claims 90

Liability costs 10

Penalties 5

Customer goodwill 25