Harvey Company designs and produces surgical lasers. Its product is brilliantly designed, but the manufacturing process has been plagued by chronic quality control problems. To help address the situation, Harvey formed a cross-functional team of managers that quantified its costs of quality over the last two quarters as follows:

	Costs (in thousands)
	Quarter 1		Quarter 2
Cost of testing equipment	$	270			$	390
Customer returns of defective goods	$	3,200			$	200
Downtime due to quality problems	$	600			$	1,100
Inspection	$	1,700			$	2,770
Net cost of scrap	$	800			$	1,300
Product recalls	$	3,500			$	600
Quality engineering	$	1,080			$	1,650
Rework labor	$	1,400			$	1,600
Statistical process control	$	0			$	270
Supplies used in testing	$	30			$	40
Systems development	$	120			$	680
Warranty repairs	$	3,300			$	2,800

The companys sales were $95 million in Quarter 1 and $100 million in Quarter 2. Click here to download the Excel template, which you will use to answer the questions that follow.

Click here for a brief tutorial on PivotTables in Excel.

Click here for a brief tutorial on PivotCharts in Excel.

Click here for a brief tutorial on the Subtotal function in Excel.

Click here for a brief tutorial on VLOOKUP in Excel.

Excel Analytics 12-1 (Static) Part 3

3. Refer back to the Template A tab:

a. Create a PivotTable based on the data in cells A5 through H17.

b. Using PivotChart, create a stacked bar chart that includes a total of two barsone for each quarter. Each bar should quantify that quarters total quality costs as well as the portion of those costs that fall within each of the four quality cost categories (i.e., prevention, appraisal, internal failure, and external failure).

c. Using PivotChart again, create a stacked bar chart that includes a total of two barsone for each quarter. Each bar should quantify that quarters total quality costs as a percent of that quarters sales. It should also depict each of the four quality cost categories (i.e., prevention, appraisal, internal failure, and external failure) as a percent of sales