Homework Help is Here – Start Your Trial Now!
Business
Operations Management
D.B. Smith Company produces machine tools. The company conducted a cost-of-quality study and found the following: Cost Category   Amount Quality equipment design $ 20,000 Scrap   333,000 Inspection and retest   330,000 Customer returns   80,000 Supplier quality surveys   8,000 Repair   82,000 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.   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 Cost Category   Amount   Percent of Total   Cumulative Percentage Internal failure             Appraisal             External failure             Prevention             Total

D.B. Smith Company produces machine tools. The company conducted a cost-of-quality study and found the following: Cost Category   Amount Quality equipment design $ 20,000 Scrap   333,000 Inspection and retest   330,000 Customer returns   80,000 Supplier quality surveys   8,000 Repair   82,000 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.   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 Cost Category   Amount   Percent of Total   Cumulative Percentage Internal failure             Appraisal             External failure             Prevention             Total

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
See similar textbooks
icon
Related questions
Question

D.B. Smith Company produces machine tools. The company conducted a cost-of-quality study and found the following:

Cost Category   Amount
Quality equipment design $ 20,000
Scrap   333,000
Inspection and retest   330,000
Customer returns   80,000
Supplier quality surveys   8,000
Repair   82,000

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.

 

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 Cost Category   Amount   Percent of Total   Cumulative Percentage
Internal failure            
Appraisal            
External failure            
Prevention            
Total          
A. В 1 Pareto Chart 2 Cost Category Quality equipment design Scrap Inspection and retest 3 Amount 4 20,000 333,000 330,000 80,000 7 Customer returns Supplier quality surveys 9 Repair 8 8,000 82,000 10 Percent of Total Cumulative Percentage 11 Quality Cost Category 12 Internal failure 13 Appraisal Amount 14 External failure 15 Prevention 16 Total 17
Transcribed Image Text:A. В 1 Pareto Chart 2 Cost Category Quality equipment design Scrap Inspection and retest 3 Amount 4 20,000 333,000 330,000 80,000 7 Customer returns Supplier quality surveys 9 Repair 8 8,000 82,000 10 Percent of Total Cumulative Percentage 11 Quality Cost Category 12 Internal failure 13 Appraisal Amount 14 External failure 15 Prevention 16 Total 17
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.
SEE MORE TEXTBOOKS