As the quality manager of Rapid Press Printers, a well-known printing and stationery shop, you were tasked to carry out an analysis of the cost of quality incurred by the business. The following table gives a list of costs incurred. Cost Element Amount Customer complaint remakes $ 81,000 Printing plate revisions 28,000 Quality improvement projects 14,000 Gauging 90,000 Other waste 39,000 Correction of typographical e
As the
you were tasked to carry out an analysis of the cost of quality incurred by the business.
The following table gives a list of costs incurred.
Cost Element Amount
Customer complaint remakes $ 81,000
Printing plate revisions 28,000
Quality improvement projects 14,000
Gauging 90,000
Other waste 39,000
Correction of typographical errors 55,000
Proofreading 350,000
Quality planning 57,000
Press downtime 185,000
Bindery waste 53,000
Checking and inspection 42,000
a. Classify the cost elements in the table above into the appropriate cost of quality
categories.
b. Find the total cost of each cost of quality category and prepare a Pareto chart for
the categories.
c. Interpret the results of the Pareto chart and provide recommendations.
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