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In a printing company, data from the previous month show the following types of errors, with the unit cost (in dollars) of rectifying each error,
In a printing company, data from the previous month show the following types of errors, with the unit cost (in dollars) of rectifying each error, in the table below.
Error Categories | Frequency | Unit Costs ($) |
Typographical Proofreading Paper tension Paper misalignment Inadequate binding | 4000 3500 80 100 120 | 0.20 0.50 50.00 30.00 100.00 |
- Use Excelto construct (plot) two Pareto charts (one for frequency and the other for total costs) and discuss the results.
- If management has a monthly allocation of $18,000, which areas should they tackle?
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