Chapter 27 Cost Management for Just-in-Time Environments 1281 PR 27-4A Pareto chart and cost of quality report-municipality 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: Activities Correcting errors identified by election commission Correcting jams Correcting scan errors Loading Logging-in control codes (for later reconciliation) Program scanner Rerunning job due to scan reading errors Scanning Verifying scan accuracy via reconciling totals Verifying scanner accuracy with test run Activity Cost 130,000 110,000 60,000 25,000 20,000 30,000 30,000 60,000 20,000 15,000 $500,000 Total Instructions 1. Prepare a Pareto chart of the department activities. 2. Use the activity cost information to determine the percentages of total departmen costs that are prevention, appraisal, internal failure, external failure, and not costs o quality Determine the percentages of the total department costs that are value- and non-value-added 4Interpret the information. s Series B PR 27-1B Just-in-time principles David Harrelson Motorcycle Company manufactures a variety of motorcycles. Harrelson urchasing policy requires that the purchasing agents place each quarter's purchasin ments out for bid. This is because the Purchasing Department is evaluated solel