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need help with part 3, 4, and 5 please Pareto Chart and cost of Quality Report for a Manufacturing Company The president of Mission Inc.

need help with part 3, 4, and 5 please image text in transcribed
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Pareto Chart and cost of Quality Report for a Manufacturing Company The president of Mission Inc. has been concerned about the growth in costs over the last several years. The president asked the controller to perform an activity analysis to gain a better insight into these costs. The result of the activity analysis is summarized as follows: Activities Activity Cost Correcting invoice errors $11,040 Disposing of incoming materials with poor quality 8,280 Disposing of scrap 33,120 Expediting late production 27,600 Final inspecton 19,320 Inspecting incoming matersals 5.520 Inspecting work in process 30,360 Preventive machine maintenance 19,320 Producing product 104,830 Responding to customer quality complaints 16.560 Total $276,000 The production process is complicated by qualty problems, requiring the production manager to expedite production and dispose of scrap Required: 1. On paper or in a spreadsheet program prepare a Pareto chart for each of the activities listed above. Answer the following: What type of chart is a Pareto chart Bar chart Which activity appears first in order from left to right? 2. Classify the activities into prevention, appraisal, internal failure, external failure, and not costs of quality (producing product) Classidy the activities into value-added and non-value-added activities. Value Added/ Cost of Quality Non-Value Added Activity Activity Cost Classification Classification Correcting invoice errors $11,040 External failure Non-value-added Disposing of incoming materials with poor quality 8,280 Internal failure Non-value-added Disposing of scrap 33,120 Internal failure Non-value-added Expediting late production 27,600 Internal failure Non-value-added Final inspection 19,320 Appraisal Value-added Inspecting incoming materials 5,520 Appraisal Value-added Inspecting work in process 30,360 Appraisal Value-added Preventive machine maintenance 19,320 Prevention Value-added Producing product 104,880 Not costs of quality Value added Responding to customer quality complaints 16,560 External failure Non-value-added Total $276,000 3. Use the activity cost information to determine the percentages of total costs that are prevention, appraisal, interna folure, external failure, and not costs of quality producing product) Quality Cost Percent of Total Classification Activity Cost Department Cost Prevention 3. Use the activity cost information to determine the percentages of total costs that are prevention, appraisal, internal failure, external failure, and not costs of quality (producing product). Quality Cost Percent of Total Classification Activity Cost Department Cost Prevention % Appraisal % Internal failure % External failure Not costs of quality Total 96 4. Determine the percentages of total department costs that are value-added and non-value-added. Percent of Total Activity Cost Department Cost Value-added % Non-value-added Total 3 of the total costs. This means there is significan 5. The department has % of its total costs as non-value-added. Internal failure costs represent opportunity for cost savings. External failure costs represent of the total department costs

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