B C D E F G Н H 1 J K L M N N А Pareto Chart Use the area below to construct a Pareto chart. Percent of Total Cumulative Percentage 3 Cost Category Amount Quality equipment design 22,000 5 Scrap 338,000 Inspection and retest 334,000 Customer returns 96,000 Supplier quality surveys 11,000 Repair 79,000 0 1 Quality Cost Category Amount 2 Internal failure 3 Appraisal 4 External failure 5 Prevention 6 Total 7 8 Formulas 9 #N/A 0 #N/A 1 #N/A 2 #N/A 3 #N/A 4 5 6 6 7 8 9 #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A
D.B. Smith Company produces machine tools. The company conducted a cost-of-quality study and found the following: Amount Cost Category Quality equipment design Scrap Inspection and retest Customer returns Supplier quality surveys Repair $ 22,000 338,000 334,000 96,000 11,000 79,000 What quality cost categories should each of these costs be associated with? What does a Pareto analysis reveal? The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. х Open spreadsheet Questions 1. Classifying the D.B. Smith Company cost elements into the appropriate cost-of-quality categories, calculate the total costs in each category and their percentages of the total and cumulative percentages. Round your answers for the total costs to the nearest dollar and round your answers for the percentages to two decimal places. Quality Category Amou Percent of Total Cur ative Percentage Internal failure $ % % Appraisal $ % % External failure $ % % Prevention $ % % Total $ %
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