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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

  1. Use Excelto construct (plot) two Pareto charts (one for frequency and the other for total costs) and discuss the results.

  1. If management has a monthly allocation of $18,000, which areas should they tackle?

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