A firm specializing in the processing of rebate certificates has tabulated the frequency of occurrence of various types of problems, as shown in Table 18.5.2.

a. Arrange the problems in order from most to least frequent, and create a table indicating the number of cases, percent of total problem cases, and cumulative percent.

b. Draw a Pareto diagram for this situation.

c. What is the most important problem, in terms of the number of certificates affected? What percent of all difficulties does this problem represent?

d. What is the next most important problem? What percent does it represent?

e. What percent of defective certificates do the top two problems, taken together, represent?

f. Write a paragraph, as if to your supervisor, summarizing the situation and recommending action.

FIGURE 18.5.2

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TABLE 18. Problems in Processing Rebate Certificates Cause of Problem Blank llegible Two numbers transposed 184 Wrong place on form 5.2 Frequency of Occurrence of Various Number of Cases 53 528 330 0 10987654