Question
A) Open a new tab and rename to Santos Quality Costs. On this tab you are going to create: 1) Data table 2) Pie Chart
A) Open a new tab and rename to Santos Quality Costs. On this tab you are going to create: 1) Data table 2) Pie Chart 3) Recommendation Block. The three elements should be laid out to fit on a single landscape sheet of paper. The end product should fit the role of a one-page handout for you to lead a discussion with Santos Pharmacutical Management.
B) Create a labeled table using the four major categories the category spend totals. Using the data in your table create a Pie Chart to show the breakdown of the Total Quality costs into the four major categories. Ensure that you show category labels, the percentage of each of the four quality costs along with the dollar amount. Include a proper heading for the chart, table and page.
C) Add a textbox. In the textbox a) Discuss your thoughts on the Quality spending at Santos Pharmacutical in 2020. b) State at least two recommendations would you make for changes in spending in 2021? Explain the reasoning behind each recommendation. (No more than 200 total words. Watch grammar and spelling.) c) Make sure all of the text is visible when printed.
Santos Pharmacutical Fabrication | |||
Cost of Quality Report | |||
Year end December 31, 2020 | |||
Quality Costs | Percent of Sales (%) | ||
Prevention costs: | |||
Quality Training | 65,200 | ||
Process planning | 48,300 | ||
Quality Audits | 44,900 | ||
Machine Maintenance | 76,200 | 234,600 | 1.2 |
Appraisal Costs: | |||
Inbound Inspection | 108,200 | ||
Inprocess Inspection | 99,500 | ||
Process Acceptance | 101,200 | 308,900 | 1.6 |
Internal Failure Costs: | |||
Rework | 485,000 | ||
Scrap | 390,000 | 875,000 | 4.5 |
External Failure Costs: | |||
Warranty costs | 185,000 | ||
Service & Retrofit Costs | 195,000 | ||
Product replacement | 394,000 | ||
Product Repairs and expedited shipping | 255,000 | 1,029,000 | 5.3 |
Total Quality costs | 2,447,500 | 12.7 | |
* Annual sales | 19,250,000 | ||
2,447,500/19,250,000 = 12.5% |
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