Pareto Chart and Cost of Quality Report—Municipality Company The administrator o
ID: 2488911 • Letter: P
Question
Pareto Chart and Cost of Quality Report—Municipality Company
The administrator of elections for the city of Madisonville has been asked to perform an activity analysis of its optical scanning center. The optical scanning center reads voter forms into the computer. The result of the activity analysis is summarized as follows:
1. Use the activity cost information to determine the percentages of total department costs that are prevention, appraisal, internal failure, external failure, and not costs of quality. If required, round percentages to one decimal place.
2. Determine the percentages of total department costs that are value-added and non-value-added. If required, round percentages to one decimal place.
Activity Activity Cost Correcting errors identified by election commission $28,320 Correcting jams 23,600 Correcting scan errors 56,640 Loading 47,200 Logging-in control codes (for later reconciliation) 42,480 Program scanner 9,440 Rerunning job due to scan reading errors 47,200 Scanning 33,040 Verifying scan accuracy via reconciling totals 160,480 Verifying scanner accuracy with test run 23,600 Total $472,000Explanation / Answer
Activity Activity Cost Correcting errors identified by election commission $28,320 Internal failure Correcting jams 23,600 Prevention Correcting scan errors 56,640 Internal failure Loading 47,200 Appraisal Logging-in control codes (for later reconciliation) 42,480 Prevention Program scanner 9,440 Appraisal Rerunning job due to scan reading errors 47,200 Internal failure Scanning 33,040 Prevention Verifying scan accuracy via reconciling totals 1,60,480 Prevention Verifying scanner accuracy with test run 23,600 Not a cost of quality Total $472,000 Quality Cost Activity Cost Percent of Total Classification Department Cost Prevention 202960 43% Appraisal 89680 19% Internal failure 127440 27% External failure 28320 6% Not a cost of quality 23600 5% Total 472000 100% Activity Cost Percent of Total Department Cost Value-added 292640 62% Non-value-added 179360 38% Total 472000 100%