Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
16th Edition
ISBN: 9780134475585
Author: Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
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Chapter 19, Problem 19.30P

Quality improvement, Pareto diagram, cause-and-effect diagram. Pauli’s Pizza has recently begun collecting data on the quality of its customer order processing and delivery. Pauli’s made 1,800 deliveries during the first quarter of 2017. The following quality data pertain to first-quarter deliveries:

Type of Quality Failure Quality Failure Incidents, First Quarter 2017
Late delivery 50
Damaged or spoiled product delivered 5
Incorrect order delivered 12
Service complaints by customer of delivery personnel 8
Failure to deliver incidental items with order (drinks, side items, etc.) 18
  1. 1. Draw a Pareto diagram of the quality failures experienced by Pauli’s Pizza.

Required

  1. 2. Give examples of prevention activities that could reduce the failures experienced by Pauli’s.
  2. 3. Draw a cause-and-effect diagram of possible causes for late deliveries.
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Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)

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