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 $ 28,000 Scrap 321,000 Inspection and retest 339,000 Customer returns 97,000 Supplier quality surveys 9,000 Repair 71,000 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 B12 D E F G H I 3 K L M N N 0 Q R S Use the area below to construct a Pareto chart Percent of Total Cumulative Percentage A B 1 o Chart z 3 Category Amount 4 y equipment design 28,000 5 5 321,000 6 ction and retest 339,000 7 mer returns 97,000 8 8 ler quality surveys 9,000 9 9 r 71,000 10 11 ty Cost Category Amount 12 Jal failure 13 lisal 14 val failure 15 ntion 16 Total 17 18 Formulas 19 ANIA 20 NIA 21 UNIA 22 UNIA 23 UNIA 24 25 26 27 28 29 30 31 Sheet1 N A NIA NIA UNIA N A NIA NIA NIA UNIA B12 D E F G H I 3 K L M N N 0 Q R S Use the area below to construct a Pareto chart Percent of Total Cumulative Percentage A B 1 o Chart z 3 Category Amount 4 y equipment design 28,000 5 5 321,000 6 ction and retest 339,000 7 mer returns 97,000 8 8 ler quality surveys 9,000 9 9 r 71,000 10 11 ty Cost Category Amount 12 Jal failure 13 lisal 14 val failure 15 ntion 16 Total 17 18 Formulas 19 ANIA 20 NIA 21 UNIA 22 UNIA 23 UNIA 24 25 26 27 28 29 30 31 Sheet1 N A NIA NIA UNIA N A NIA NIA NIA UNIA

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 $ 28,000 Scrap

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Quality Cost Category

Amount

Percent of Total

Cumulative Percentage

Internal failure

External failure

Prevention

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	$	28,000
Scrap		321,000
Inspection and retest		339,000
Customer returns		97,000
Supplier quality surveys		9,000
Repair		71,000

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.

image text in transcribed

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.

B12 D E F G H I 3 K L M N N 0 Q R S Use the area below to construct a Pareto chart. Percent of Total Cumulative Percentage A B 1 o Chart z 3 Category Amount 4 y equipment design 28,000 5 5 321,000 6 ction and retest 339,000 7 mer returns 97,000 8 8 ler quality surveys 9,000 9 9 r 71,000 10 11 ty Cost Category Amount 12 Jal failure 13 lisal 14 val failure 15 ntion 16 Total 17 18 Formulas 19 ANIA 20 #NIA 21 UNIA 22 UNIA 23 UNIA 24 25 26 27 28 29 30 31 Sheet1 + #N/A #NIA #NIA UNIA #N/A #NIA #NIA #NIA UNIA B12 D E F G H I 3 K L M N N 0 Q R S Use the area below to construct a Pareto chart. Percent of Total Cumulative Percentage A B 1 o Chart z 3 Category Amount 4 y equipment design 28,000 5 5 321,000 6 ction and retest 339,000 7 mer returns 97,000 8 8 ler quality surveys 9,000 9 9 r 71,000 10 11 ty Cost Category Amount 12 Jal failure 13 lisal 14 val failure 15 ntion 16 Total 17 18 Formulas 19 ANIA 20 #NIA 21 UNIA 22 UNIA 23 UNIA 24 25 26 27 28 29 30 31 Sheet1 + #N/A #NIA #NIA UNIA #N/A #NIA #NIA #NIA UNIA